Strategic Models for E-Business - Report Example

Strategic Models for E-Business Strategic Models for E-Business Introduction Organization requires strategic change and structure to be adopted for deriving benefits. The pattern and structure will allow them to make effective strategies and their implementations. Models are suggested that could be adopted by different business sectors to make strategies and derive benefits for the organization. Suitability of those models in specific business sectors is most important because there are some weaknesses along with the strengths for different business sectors. These models can help businesses in managing their data and also derive useful information in a timely manner for making efficient strategic decisions. There are two main models mentioned along with their strengths, weakness and suitability for specific business sectors that are related to the e-business. Furthermore, MIT Model of Strategic Change and Fit Model of strategic change and fit contains the elements named structure, strategy, management process, technology and individual. All elements are inter-related to each other while making and applying strategy for the business. The sequence of the elements depends on the type of the business. Different businesses apply the model to make changes and fit in the organizational operations (Fazlollahi, 2001). It is shown in the above chart of the model that all elements of the model are inter-related to each other. Any change in the strategy developed to be followed by the work force of the organization. First step is to make strategy. Strategy is needed to be made or adopt in order to make a change in the operations of the organization. Only planned and effective strategy will deliver the positive results to the organization. The Leaders of the organization often make strategies (Levy & Powell, 2004). It is recommended that the strategy should reflect on the structure of the business. Structure of the organization reflects the task and activities doe by the supervisors and managers to set the directions of the work to be done so to achieve the goal of the organization. Organizations need to change the structure and the directions of the senior employees that it should reflect the change of the strategy. It is necessary that the strategy should be communicated to the management that requires changing their process and making an effective plan for the execution of the strategy made by the leaders of the organization (Levy & Powell, 2004). Management process could play an effective role in communicating the strategy plan to subordinates and juniors so that they could enhance their performance according to the directions of the management (Levy & Powell, 2004). Technology is the factor that could play a vital role in the modern business world. Alignment of the technology should be maintained to make it relevant with the strategy. Organization might use the technology prior to the change of strategy but it is important to note that the strategy adopted by the organization. The important role in changing the strategy is upon the individuals of the organization. It is not difficult to select or change the strategy. The execution of the strategy depends upon the performance of the individuals that have to execute the changing strategy (Levy & Powell, 2004). Above steps are not to be followed in the same manner but it depends upon the business that what procedure or steps to be followed for making the strategy. For example, Airline businesses follow the sequence in the manner they first make strategy and adopt technology for the organization and then other elements of the model are followed by the airline business. All the elements of the model are adopted in the series made by them (Levy & Powell, 2004). Strengths for Specific Sectors Following are the strengths with reference to e-Business Enhance the Performances of Individuals In Servicing Business Model supports the role of the individual in the strategic change for the services organization. Role of individual is also crucial for the organization because the performance of the organization will reflect the individual performances. Adoption of Advance Technology For Manufacturer Model is crucial for the organization that manufactures the products and distributed all over the world through internet. Manufacturers need to adopt advance technology to minimize the cost and increase the production. Strategic Change Will Derive Benefits For Retail Business Model of strategic change will be quite helpful for the retailers who sell their products online. Strategic change will derived more benefits if the directions of the models are recognized by the organization (Fazlollahi, 2001). Weaknesses Following are some of the weaknesses of the model: Servicing business could not derive benefits if they avoid the preferences of the consumers while making strategic changes. Manufacturers would focus on the minimization of cost and increase their production and distribute them in global market. There is a lack of different strategies in the model that could help them to know how to increase the production effectively and cultural aspects are also missing in the model. Retail Business requires some strategies that have to be followed through planning that refers to the condition of the market. Competitive advantage could not be derived through the model until the strategies of the competitors could not be recognized (Fazlollahi, 2001). Business Sectors That Would Align Model of Strategic Change and Fit Beneficial for Marketing Business Model is crucial for the e-Business marketing as it supports the structure, strategy and technology elements. Marketing of the business required to make strategy and adopt suitable technology for the business. Advance technology could be quite relevant for the e-Business because they have to target the markets for the promotion of their products and services. Individual performance will enhance the strategy to develop a new structure that will be beneficial for the marketing in e-Business (Schniederjans & Cao, 2009). Important for Competition In Retail Business Model is essential for retail businesses that sells their products to the consumers online as the completion prevailing in the market require effective strategies and process to be followed so to survive in the most competitive market. Selling the products is common by the Internet these days and that requires the process of strategy to be well developed by the individuals to gain competitive advantage and spread the business all over the world (Nelson et al., 2010). Strategy of Changing Technology For Servicing Business Strategy of changing technology will also derive benefits for e-Business that provides different services too their specific customers. They have to introduce new technologies and make strategic change in the technology and structure to satisfy the needs of the customers (Solli-Sæther, 2009). Conventional Model of Strategic Dynamics Model describes that how organizations make strategies for their operations. Organizations have to control their revenues and profits to achieve the goal. It depends on the business of the organization that what strategies to be made for the achievement of short term and long term objectives of the business (Greiner & Cummings, 2009). Organizations learn from their past experiences of their operations and develop those strategies that were bringing revenues to the business. It often happen that business of the organization might be generating extreme profits to the organization but a critical situation comes in the business when the profits begun to decrease (Hax, 2009). The model determines the fact that the organization must take into account the previous strategies and review them to continue their operations for the organization. The execution of the model could be explained in a manner that there might be any situation in the past where the profits of the company boost up. What strategies and pattern did they adopt in the past and how they were helpful in the generation of effective profits for the organization? The company might face the declining period after reaching at the extreme point. There is a need to inspect the reason why the company is facing the situation of the declining of sales, revenues and other factors. The company has to look into the current strategies and find out the relevant reason for the decrement in revenues or profits of the company (Nelson et al., 2010). There is a requirement that the company should move on to increase the efficiency of the performance. The company should plan strategies to be adopted and followed that could bring the company in the position that was enjoyed by the organization in past. It is important to note that strategies adopted at the point where the company was boosting up their profits might not be relevant in the situation to change the directions of the performance of the company (Martínez-López, 2013). It is necessary that the organization changes its strategy and direction with regards to the time and needs. Short term planning and execution will result in an effective performance of the company. The company will then adopt the strategy and apply them in accordance with the requirement of the current situation. The strategic change of dynamics will be helpful for the organization to enhance the performance and derived efficient revenues to the company (Yetton et al., 1994). Strengths for Different Business Sectors Analyzing Prior Strategies For Manufacturers The model will be helpful in analyzing the previous strategies that were being followed by the manufacturers and distributers in past and were proved effective at that time. Manufacturers require these types of strategies to incorporate them in the current situation to get back the position of the business. Checking Current Strategies For Servicing Business The model is relevant to observe the strategies in current critical situation and check whether the directions and movements of the strategies are deriving benefits to the business or not. Helpful in Making Future Strategies For Marketing Sector The model is quite helpful in making strong strategies that will revise the position of organization when the business was successful in capturing a wide market. Marketing business could get benefit from this model and retain the position in the market (Chakravarty et al., 2014). Weaknesses It is not necessary that the strategies will work in the same position as those were working in the past for capturing wide market. It is not essential that the strategy direction and movements will proved to be effective all the time and retailers could revised the position and gain competitive advantage Market competition and corporate culture may not support the plan strategies and go oppose to them (Nelson et al., 2010). Business Sectors That Would Align Model of Conventional Model of Strategic Dynamics To Counter the Strategies of Competitor in Retail Business In retail business it is necessary to analyze the strategies of the competitor and adopt those strategies that could derive benefits to same type of business. Sometimes the strategy adopted by the competitor provides them a suitable position in the market (Chakravarty et al., 2014). To Encourage the Adoption of Strategies Prevailing in the Servicing Industry Some strategies prevail in the industry of servicing business such as adoption of advance technology. Strategies prevailing in the industry could be beneficial in setting the directions and methods to provide quality services to the customers (Nelson et al., 2010). To Make Suitable Pattern for Marketing Business Implication of the strategies is most important factor in marketing business. It is not possible that the strategies will work in the same manner as that of the competitors and rivals. The environment of the business could be different from others and the strategy pattern might not supported by the external environment (Martínez-López, 2013). Strategies in Accordance with the Dynamics for Distribution Business E-Businesses change their dynamics time to time. The dynamics requires some strategies to be adopted in and effective manner for distribution business sector. Business requires strategies that are suitable for specific time period. Time to time analyzing the strategies will allow them to select suitable directions for the business is near future (Hax, 2009). Conclusion Above-mentioned two models are relevant to the specific business sectors that are related to e-business. Although they have weaknesses to support different types of businesses, they could be proved to derive benefits for the business. The suitability of these models also depends on the situation faced by the organization at that time and they could adopt one of the model for the achievement of their goals. MIT Model of Strategic Change and Fit has a wider approach to consider factors that are relevant to the overall strategic direction of the company. On the other hand, Conventional Model of Strategic Dynamics is suitable for developing strategies related to the business operations and how they could aligned with the business objectives to maximize profits. List of References Chakravarty, A., Kumar, A. & Grewal, R., 2014. Customer Orientation Structure for Internet-Based Business-to-Business Platform Firms. Journal of Marketing, 78(5), pp.1-23. Fazlollahi, B., 2001. Strategies for eCommerce Success. Hershey: idea Group Inc. Goh, K.H. & Kauffman, R.J., 2013. Firm Strategy and the Internet in U.S. Commercial Banking. Journal of Management Information Systems. , 30(2), pp.9-40. Greiner, L.E. & Cummings, T.G., 2009. Dynamic Strategy-Making: A Real-Time Approach for the 21st Century Leader. Hoboken: John Wiey & Sons. Hax, A., 2009. The Delta Model: Reinventing Your Business Strategy. Illustrated ed. Berlin: Springer Science & Business Media. Levy, M. & Powell, P., 2004. Strategies for Growth in SMEs: The Role of Information and Information Sytems. Oxford: Butterworth-Heineman. Martínez-López, F.J., 2013. Handbook of Strategic e-Business Management. illustrated ed. Berlin: Springer Science & Business Media. Nelson, M.L., Shaw, M.J. & Strader, T.J., 2010. Sustainable E-Business Management: 16th Americas Conference on Information Systems, AMCIS 2010, SIGeBIZ Track, Lima, Peru, August 12-15, 2010, Selected Papers. illustrated ed. Berlin: Springer Science & Business Media. Schniederjans, M. & Cao, Q., 2009. Alignment of operations strategy, information strategic orientation, and performance: an empirical study. International Journal of Production Research. , 47(10), pp.2535-63. Solli-Sæther, H., 2009. 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