Abstract
In the current world, globalization has led to improved and advanced levels of technology with the aim of diversification and expansion of markets around the world. Business organizations have resulted into new strategies that allow efficient market operations. For instance, implementation of E-business practice in an organization has resulted in a significant effect on performance and production capacity. As a result of internationalization, many business organizations have opted high technology business strategy in improving sales, management, and financial services among others.
Introduction
E-business strategy is an important aspect of a business entity as it has myriad advantages over the traditional business operation strategy. In E-business strategy, business organizations use information and communication technology in enhancing its operations. E-business integration in an organization implies that various management practices will be done through the internet in an aim of reaching out to customers at different geographical regions. For instance, implementation of E-business translates into practices such as human resource, administration, and financial services being carried out over the internet. There are also other external business practices that can be undertaken through E-business such a supply of goods and services, sales and marketing of products, and customer relation practices.
Purpose of the Report
Increase in technological advancements around the globe has resulted into better methods of business operations. Business organizations have had the chance to explore various business strategies by improving efficiency in the system. As a result, top management cadre has been obliged to integrate certain strategies in the business system so as to achieve set goals and objectives. One of the business strategy implemented has been the E-business strategy. This strategy ensures that companies operate and provide services partially or completely over the internet. There are various activities that are attributed to E-business strategy such as online communication through the use of email, online recruitment and training practices (E-learning), and E-tailing among others.
It is important to have E-business tools besides having an organization’s website in order to facilitate business operations. Internationalization has resulted in such high-tech practices, in the aim of bringing customers closer despite regional boundaries. The E-business strategy has various implications in an organization’s management practice. This report will analyze the importance of E-business strategy in an organization and how to the management team can integrate such a strategy to bring efficiency in production (Fletcher, 2004).
Background of the Company
The management team has faced a lot of challenges in business operations leading to poor performance of the company. The company has practiced traditional business strategy in the management of its operations. The traditional business strategy has been outdated as a result of modern and advanced technology in the recent times. The management has thus experienced low sales and customer retention rate has declined with time. Advanced information and technology have increased competition among rival companies as they strive to outdo each other. Rival companies have delved in efficient business strategies in ensuring that they stay in the competitive market.
The use of traditional business strategy in the company has increased the cost of production relative to companies that use E-business strategy in their system. Increase in cost of production has resulted from ineffective ways and practices of business operation. For instance, training of employees under the traditional way will result in a lot of capital expenditure as compared to the E-business strategy. The company has experienced challenges in the sales and marketing section as a result of inadequate marketing practices. Customer relationship management is an important aspect in sales and marketing of an organization. On this front, business organization employing traditional business strategies will be less effective in marketing procedures. As a result, the company’s profits and performance will decline. The use of traditional business strategy, on the other hand, will result into inefficiency in customer relationship management. This is because customers would lack a direct and convenient forum to communicate and share their opinion of the company. By contrast, the E-business strategy provides a direct and all round clock service for customers with questions, opinions, and suggestions concerning products and services offered by a company (Canzer, 2006).
Discussion of Current Business Issues
Internationalization of companies in the modern world has led to the introduction of myriad business practices and incorporation of strategies that promote efficient and effective performance. The desire for companies to globalize and expand their market in foreign countries has led to creativity and innovativeness in the management team. Companies have established subsidiary companies in foreign countries with the aim of expanding customer base. Advanced technology has enabled efficient communication and management of such companies despite variance in geographical locations. Companies have delved in modern business practices and strategies in carrying out various business operations such as training of employees, and purchase and selling of products via the internet among others. The use of advance technology business strategies has eased business operations at a low cost. Business organizations, therefore, have reduced their production costs through the development of better business strategies (Stanford-Smith & Kidd, 2000).
Research Findings on the Topic
According to research studies, E-business strategy has been attributed with numerous advantages within organizations. For instance, E-business has helped in reduction of cost in marketing products and services. Business organizations have established internet sites and websites through which they advertise and sell products through the internet. Unlike traditional strategy, business organizations can get customers from various parts across the world. The method is effective since marketing costs and other expenses incurred during sales and marketing are reduced. The E - business strategy has helped business organizations to establish different customer base at various localities around the world. Marketing of products and services under the traditional business strategy entails a lot of travel costs that are not necessary with the E-business strategy (Gasos, Klaus-Dieter Thoben & Thoben, 2003).
The E - business strategy has enabled business organizations to have the flexibility in their work. Through E-business, management team and employees can work at home and thus need not go to a workplace. Advanced technology and availability of the internet allows working all round the clock. This has helped many organizations as customers have been satisfied with the kind of service offered by such organizations. E-commerce is a strategy under E-business where an organization sells products and services through the internet. This strategy has helped business organizations increase sales and performance through efficiency in marketing practices.
The E - business strategy has helped in the elimination of a geographical boundary limitation since organizations have been able to communicate, and sell products to customers around the globe. As a result, marketing challenges are minimized leading to improved sales that translate to increased profits. The use of E-business strategy reduces the transaction costs of doing business through reduction of manpower is used. An online transaction with a customer consumes at low cost compared to traditional strategy since a customer places an order through the organization’s website. It also helps to cut down administrative expenses and allow fast transactions through the internet. It is, therefore, important for business organizations to implement these modern strategies with the aim of increasing business efficiency (Kalakota & Robinson, 2001).
E-business has also helped business organization access a wide range of information from the internet through research and findings. This has facilitated in modification of various practices and strategies within an organization. Challenges facing the management team can be found through a broad research through the internet thus resolve issues at hand. E-business has helped small businesses improve their performance since all business organizations are viewed to be the same on a website. Equality in business organization promotes internationalization and expansion of business activities in foreign countries (Gasos, Klaus-Dieter Thoben & Thoben, 2003).
Recommendations to the Executive Management Team
It is evident that E-business strategy will positively affect the company’s performance and thus increase production capacity. Therefore, the management team can employ advanced technology practices such as E-business and E-commerce strategies in ensuring efficient business operations. The E - business strategy has been employed by multinational companies in diversification process and expansion of market around the world. This strategy has offered a lot of merits to these multinational companies leading to increased customer base and business efficiency. Coordination of business operations in different geographical regions has been made effective through E-business strategy. The management is thus advised to employ such measures in order to allow expansion of the company into the foreign country leading to strengthening of customer base. These advanced business strategies are cost-effective, therefore, minimize cost of production. Cost minimization is, always, a priority objective of every organization in maximizing profits.
References
Canzer, B. (2006). E-Business: Strategic Thinking and Practice: Strategic Thinking and Practice. New York: Cengage Learning.
Fletcher, R. (2004). International E-business Marketing. London: Cengage Learning EMEA.
Gasos, Klaus-Dieter Thoben, J., & Thoben, K.-D. (2003). E-Business Applications: Technologies for Tomorrow's Solutions : With 96 Figures. New York: Springer.
Kalakota, R., & Robinson, M. (2001). E-business 2.0: Roadmap for Success. New Jersey: Addison-Wesley Professional.
Stanford-Smith, B., & Kidd, P. T. (2000). E-business: Key Issues, Applications and Technologies. Amsterdam: IOS Press.
