Vous êtes sur la page 1sur 6

E-business (electronic business) is a comprehensive term describing the way an organization

does its work by using electronic (Internet-based) linkages with its key constituencies
(employees, managers, customers, suppliers, and partners) in order to efficiently and
effectively achieve its

goals. It's more than e-commerce, although e-business can include e-commerce.

E-commerce (electronic commerce) is any form of business exchange or transaction in which

the parties in-teract electronically

Types of e-commerce:Exhibit 2.6

Exhibit 2.7 : Categories of E-Business Involvement

The first type is what we're going to call an e-business enhanced organization, a traditional
organization that sets up e-business capabilities, usually e-commerce, while maintaining its
traditional structure.

They use the Internet to enhance (not to replace) their traditional ways of doing business.

Many other traditional organizations—for instance, Merrill Lynch, Office Depot, Starbucks,
Tupperware, and Whirlpool—have become e-business enhanced organizations.

Another category of e-business involvement is an e-business enabled organization. In this type

of e-business, an organization uses the Internet to perform its traditional business functions
better but not to sell anything

For instance, Levi Strauss & Co. uses its Web site to interact with customers, providing them the
latest information about the company and its products, but they can't buy Levis there. It also
uses an intranet, an internal organizational communication system that uses Internet
technology and is

accessible only by organizational employees, to communicate with its global workforce

The last category of e-business involvement is when an organization becomes a total e-

business. Many organizations—such as Amazon.com, Yahoo, E*Trade, and eBay—started as
total e-business organizations. Their whole existence is made possible by and revolves around
the Internet.

at Schwab when managers made the decision to merge its traditional and e-business
operations, it had to reprice its core products, retrain all of its employees, and renovate all of its
systems.19 Was it worth it? Analysts describe Schwab as the best positioned of all retail
brokerages in an e-business world.


Knowledge management involves cultivating a learning culture in which organizational

members systematically gather knowledge and share it with others in the organization so
as to achieve better performance.23 For instance, accountants and consultants at Ernst &
Young, one of the Big Five professional services firms, document best practices they have
developed, unusual problems they have dealt with, and other work information. This
"knowledge" is then shared with all employees through computer-based applications and
through COIN (community of interest) teams that meet regularly throughout the

Managers transforming themselves from bosses to team leaders. Instead of telling people
what to ddo and how to do it, managers are finding that they are more effective when
they listen, motivate, coach, and nurture.

Working across boundaries:

But we now recognize that employees don't set aside their cultural values and lifestyle
preferences when they come to work. The challenge for managers, therefore, is to make
their organizations more accommodating to diverse groups of people by addressing
different lifestyles, family needs, and work styles. The melting pot assumption has been
replaced by the recognition and celebration of differences.13 Smart managers recognize that
diversity can be an asset because it brings a broad range of viewpoints and problem-solving
skills to a company. An organization that uses all of its human resources will enjoy a
powerful competitive advantage. Many companies such as Levi Strauss, Advantica, Dole
Food, Avis Rent A Car, SBC Communications, Avon Products, and Xerox have strong
diversity management programs
Strategic Management:

Strategic management is that set of managerial decisions and actions that determines
the long-run performance of an organization.

Strategic Management Process:

Step 1: Identifying organization’s mission statement:

Every organization needs a mission—a statement of the purpose of an organization.

The mission answers the question: What is our reason for being in business? Defining
the organization's mission forces managers to carefully identify the scope of its
products or services.

Step 2: Analyzing the Environment

Managers in every organization need to analyze the environment. They need to know,
for instance, what the competition is doing, what pending legislation might affect the
organization, and what the labor supply is like in locations where it operates

Step 3: Identifying Opportunities and Threats

After analyzing the environment, managers need to assess what they have learned in
terms of opportunities that the organization can exploit and threats it faces.
Opportunities are positive trends in external environmental factors; threats are
negative trends.

Step 4: Analyzing the Organization's Resources and Capabilities

Now we move from looking outside the organization to looking inside. For example,
what skills and abilities do the organization's employees have; what resources does
the organization have; has it been successful at innovating products; what is the
organization's financial position; how do customers perceive the organization and the
quality of its products or services?

Step 5: Identifying Strengths and Weaknesses

The analysis in Step 4 should lead to a clear assessment of the organization's strength and

Step 6: Formulating Strategies

Step 7: Implementing Strategies

Step 8: Evaluating Results

The final step in the strategic management process is evaluating results. How effective have our
strategies been? What adjustments, if any, are necessary?
Types of Organizational Strategies

Corporate-level strategy

A corporate-level strategy seeks to determine what businesses a company should be in or

wants to be in and the roles that each business unit in the organization will play.

Grand Strategy—Stability

A stability strategy is a corporate-level strategy characterized by an absence of significant

change. Examples of this strategy include continuing to serve the same clients by offering the
same product or service, maintaining market share.

When they view the organization's performance as satisfactory and the environment appears to
be stable and unchanging; that is, the organization is content to continue what it has been
doing and sees no reason to change

Grand Strategy—Growth

The growth strategy is a corporate-level strategy that seeks to increase the level of the
organization's operations. This includes increasing such popular quantitative measures as sales
revenues, number of employees, and market share. Growth can be achieved through direct
expansion, vertical integration, horizontal integration, or diversification.

Grand Strategy—Retrenchment

Retrenchment strategy is a corporate-level strategy designed to address organizational

weaknesses that are leading to performance declines. There's no shortage of companies that
have pursued a retrenchment strategy. A partial list includes some of the biggest corporate
names: Procter & Gamble, AT&T, Kodak, Reebok, IBM, Toyota Motor Corporation, Mitsubishi

Corporate Portfolio Analysis

When an organization involves a number of businesses, managers can manage this collection,
using a corporate portfolio matrix

the BCG matrix—developed by the Boston Consulting Group

See further from book. After image.

Business-Level Strategy

A business-level strategy seeks to determine how an organization should compete in each of its

Business-level competitive strategy:

An effective business-level competitive strategy requires an understanding of competitive

advantage, a key concept in strategic management. Competitive advantage is what sets an
organization apart, that is, its distinct edge. That distinct edge comes in the form of
organizational capabilities—the organization does something that others cannot do or does it
better than others can do it. For example, Dell has developed a competitive advantage from its
ability to create a direct-selling channel that's highly responsive to customers.

In any industry, five competitive forces dictate the rules of competition. Together, these five
forces determine industry attractiveness and profitability.

1. Threat of new entrants. Factors such as brand loyalty, and capital requirements determine
how easy or hard it is for new competitors to enter an industry.


Threat of substitutes. Factors such as switching costs and buyer loyalty determine the degree to
which customers are likely to buy a substitute product.


Bargaining power of buyers. Factors such as number of customers in the market, the availability
of substitutes determine the amount of influence that buyers have in an industry.


Bargaining power of suppliers. Factors such as the degree of supplier determine the amount of
power that suppliers have over firms in the industry.


Existing rivalry. Factors such as industry growth rate, increasing or falling demand, and product
differences determine how intense the competitive rivalry will be among existing firms in the
managers can choose one of three strategies: cost leadership, differentiation, or focus. Which
one managers select depends on the organization's strengths and core competencies and its
competitors' weaknesses.

When an organization sets out to be the lowest-cost producer in its industry, it's following a
cost leadership strategy. A low-cost leader keeps overhead to a minimum, and the firm does
everything it can to cut costs. You won't find expensive art or interior decor at offices of low-
cost leaders.

For example, at Wal-Mart's headquarters in Bentonville, Arkansas, office furnishings are sparse
and drab but functional.

The company that seeks to offer unique products that are widely valued by customers is
following a differentiation strategy.

Sources of differentiation might be exceptionally high quality, extraordinary service, innovative

design, technological capability, or an unusually positive brand image.

Sony (reputation for quality and innovative design)

The goal of a focus strategy is to exploit a narrow segment of a market.

buyers. For example, at Cia. Chilena de Fosforos, a large Chilean wood products manufacturer,
Vice Chairman Gustavo Romero devised a focus strategy to sell chopsticks in Japan.
Competitors and even some other company managers thought he was crazy. However, by
focusing on this narrow segment, Romero's strategy managed to create more demand for his
company's chopsticks than it had mature trees with which to make the product.

Functional-Level Strategy;

A functional-level strategy seeks to determine how to support the business-level strategy.