Micro and Macro Environments Affecting the Organization Behaviour - KSV Market - Case Study Example

E-Commerce and CRM and Website Technical Change Micro and Macro Environments Affecting the Organization Behaviour Assignment Date Word Count Student's Name University Name The Identification of an Organisation and Initial Audit Document The organization is Kent and Sussex based in Sussex. It deals with vending machines supplies and servicing. The services that are going to be offered are: 1. Product promotion strategies- it is very important for an organization to understand how to promote its product. A customer on the other hand needs to understand how a certain products work. The explanation offered to the customers should be in KISS rule (Keep it Simple, Stupid). This will clarifyconfusing issues to the customers. This will offer a chance to determine how the current product strategies are affecting the sales. 2. Customer Satisfaction - A customer should be satisfied by the service or the product being offered to them. Failure to do that, a customer may never return to the organization. It is important to read the mood of a customer. The customer should always be treated as an asset to the business. This should be done by offering them the best service at any single time. When a customer is happy with the service, he or she will certainly come back. This will help in understanding if customers are satisfied by the organization. 3. E-business maximum utilization- E-business offers a chance to expand the market. This will be able to determine how far the business has embraced this technology. The market is supposed to be large because the infrastructure supports it. It is upon the organization to ensure that this great resource is used to the maximum. This will give them insightful information on great utilization of this resource. 4. Integration of Social Media- Social Media is playing a big role nowadays in the business. This will able to determine how the organization has integrated the social media in its daily operation. 5. E-commerce safety- this is an important area that needs to be addressed. A customer needs to be guaranteed that the system being used is safe. This willpositively escalate customers` trust to the organization. 6. Basic e-commerce skills – All employees needs to have basic skills of this process. They also need to have basic skills on the infrastructure. They can save the institution a lot of resources. 7. Performance Appraisal 8. Supply chain performance The methods to be used include: Having in-depth Interviews with the members of staff. Through observing and watching their daily activities. Going through the available literature of the organization. Paying the facility a visit is also very important. Events such as training centres and workshops. Critical incident methods. KSV Market Market plays a major role in business. Without the market, an organization cannot meet its objective. It is important for an organization to be able to understand its market. This will enable the organization reap the maximum benefits. Good strategies will ensure an organization has a good share of the market (Havaldar, 2010, p18). There will be a focused market plan by the organization. E-business offers a wide market to any organization. A large audience is ready when e-business is embraced. It just requires proper advertisement. Any village that can access internet is a possible market. KSV has that chance to reach the global market. Currently, they seem focused on the local market. There are high chances that they can do well in the international market. The organization is offering nationwide cover. This was a good move after expanding their market form Sussex. Having being in the industry for 27 years, the organization need to extend services in the whole of Europe. This is because they have a good foundation in the local region and now the whole nation. The market within the United Kingdom can call for free. This is a good initiative by the organization to make sure competition is prevented. It is easy for the customers to order. This is a good move to ensure they have a good share of the local market. They have also provided a way to channel enquiries. This ensures that they compete effectively with their competitors. KSV need to take advantage and also focus more on the international market. They can open branches in various countries and this will widen their market. These branches can deliver the supplies in those countries in case a client orders. E-business has already widened the market. Proper advertisement will increase products` awareness. Micro and Macro Management Micro management is very important to the business. It is a key factor in the success of the business. It is the organization ability to serve its clients (Gulbrandsen &Holden, 2009, p27). Different departments are required for efficient and effective service to the customers. These departments are assigned different tasks. KSV has different departments to deal with clients. There is a department that deals with customers queries which is a good plan. There is also a department that deals with competitors to make sure they are ahead of their game. These departments ensures that KSV serves the customer in the most efficient and effective way. The suppliers deal with certain staff members. KSV also need to ensure that they have an alternative way to serve their customers. In case of network failures, KSV need to have a backup plan. They need to involve third parties who can host for them these backup servers. Several departments are also needed for crisis management. Macro management is also significant to the organization. These are the external factors that can affect the operation of the business. KSV has addressed technological factors quite well. KSV`s site loads very fast ensuring that clients are satisfied. They are updated on the new technologies. They should also guarantee security on the online transaction. This will encourage the users to use this channel more often. They analyse the environment by observing and watching detecting changes. They then prepare to change with the current dynamic environment. They also understand demographic factors. They understand the age, size and location of the population that forms the market. The economic factor also falls under macro. It is important for such an organization to understand the effect of economics. Effects such as recession should be put into consideration. During economic growth, they should advertise more on the e-commerce because people will tend to spend during search times. Customer Relationship Management Customers are very important to the business. It is very significant to maintain a good and positive relationship with a customer. Customer relationship will determine the success or failure of the organization. A negative relationship the customer will affect the business (Peel, 2003, p1). It is very essential for any organization to create a good rapport with the clients. It is important to understand that they have an option to select from. Maintaining a good relationship with customers will benefit the organization in many ways. The message will spread and this will tend to enlarge the market. Nowadays, it is very easy to lose the good reputation of the organization in a matter of minutes due to the current platforms such as social media. KSV has been able to maintain a good relationship with customers in the e-business. The good website has been able to create a good relationship with the customer. It is not violating them in any way. A customer feels relaxed while accessing the site. They can get the information they require from the site easily. There is an easy way to contact KSV that has been provided. A customer feels good whenever they can reach their suppliers easily and quickly. There is a free and direct phone number they can use. They can also contact the organization through the electronic mail in case it is not during working hours. The social media is nowadays creating a good relationship between the customer and the organization. Some customers prefer to use the social media to air their views. Some may find it effective to use it because of the faster response. There are no social media icons on the website which can be used to link the customers to their page. Organizations are using social media and KSV should also change with time. Online community forums also enhance the customer relationships. E-business Infrastructure E-business infrastructure is very important for success of an organization. It is the architecture of hardware, software and data that ensure users can access data from anywhere (Shaw, 2003, p67). The purpose of the e-business infrastructure is to make sure that the organization`s products have a larger global audience. Kent & Sussex (KSV) have a great chance to enlarge their market. The infrastructure enables any organization to have a larger market. KSV needs to participate in the global market. This is a chance that will make them be ahead of their competitors. It should not only focus in the UK alone because they have a great opportunity to increase their sales. Advertisement will enable them to be heard far and wide. This is a great opportunity for KSV to market itself well. E-business infrastructure will enable KSV to reduce the operation cost. This is because clients will have direct access to KSV no matter the distance. They need to heavily invest in the E-business infrastructure which will reduce the cost. The brokers will be eliminated which will have a positive impact in the organization. Some clients do not like dealing with brokers due to trust issues. E-business infrastructure will also have an impact in the quality of service. Most clients nowadays are embracing technological changes and this is a great opportunity for the organization to improve on the quality of service experienced by the user. The infrastructure offers a variety of internet speeds which have an impact on users’ experience. KSV should ensure that they offer the best speeds to create a good rapport with the clients. KSV should utilize the 3G and 4G phones which will enable them to compete effectively in the mobile phone platform. E-business infrastructure has risks and challenges. At times, the E-business infrastructure may fail and this may have a negative impact on the business. KSV needs to ensure that they have a backup plan that will provide an alternative way incase their data servers and network fails. This will enable KSV to compete effectively. The system should also be flexible to support new changes. They should always be ahead of their competitors. Customer privacy is also very vital. E-business infrastructure is at time vulnerable. Security issues needs to be addressed. KSV should ensure that clients’ privacy is guaranteed. System like firewall and Demilitarized Zone (DMZ) can be used for protection. The firewall ensures that unauthorized third party cannot access the network or affect the e-business infrastructure. The customers trust to the organization is very important and this should be guaranteed. E-business Strategy Strategies are very important for any business to compete effectively. KSV need to come up with solid and clear business plans. The purpose of E-business strategy is to make an organization know where it is headed. This will make an organization compete effectively among other competitors. KSV need to ensure that they have defined goals that will make them compete globally. Most organizations come up with strategies that do not have clearly defined goals causing the business failure (Canzer, 2006, p57). E-business strategies will make KSV compete effectively. It will also create a good foundation for long term objectives through the short term plans and strategies. E-business strategy will enable KSV have a focused market that will always make it reap maximum profit. The aim of any organization is to make profit. The focused marketing plan will make KSV shine. The strategies need to make sure that clients’ needs are addressed thoroughly. This can be done by conducting research on how clients experience can be improved. This will enable KSV to understand want their clients always want when conducting e-business. The E-business strategy will enable KSV to analyse the environment and react to changes. The environment strategies will make KSV to be attentive, observe and react to changes. The environment is very complex and dynamic. They also need to make sure they are ready for those changes. E-business strategies should ensure that KSV addresses competitors’ issues. The strategies should always make sure that competition is well handled. Competitive factors need to be well addressed. E-business strategies should make sure that economic factors are also addressed. Understanding the market and how to react is very essential. During economic growth people tend to spend. Strategies should ensure that during such times, the organization will reap maximum benefits. When there are economic hurdles, E-business strategies should address this issue to make sure that they stand out among their competitors. The strategies should take care of the consumer purchasing power. The spending patterns also differ and the organizations need to understand and use them to their benefits. They will also have to come up with strategies that will deal with demographic factors. It is very important to understand how the human population affects the business. When all these factors are addressed, this will enable KSV to compete locally and internationally effectively. This is because they will have specific and defined goals in the supply of the vending machines. Supply Chain Management E-business is improving efficiency in supply chain. Comprehending how the two integrates is very vital (Beyer, 2010, p117). Most companies are facing challenges in this area because they do not understand how they can use it to their advantage. The purpose of supply chain management is to ensure that customers` satisfaction is achieved. Good strategies by the company will enable this area to thrive and organizations compete effectively. Clients` satisfaction is very important because this will widen an organization`s market. KSV need to make sure that at any single time their customers are satisfied with their services. The advantages of efficient supply chain management due to e-business are so many. The market will widen because the clients will spread the gospel after experiencing customer satisfaction by KSV. When a customer is satisfied, they will tend to share the information with their relatives and friends which is good for the organization. It is very significant when a client trust an organization. When the customer is satisfied with the supply of his or her good, he or she trusts the organization. The cost will tend to reduce. The company will save a lot of money because of the system efficiency. KSV need to shine in this area because it is proving to be a challenge to many organizations. KSV needs to respond to customers immediately. This will have a positive impact on the business because customers will tend to come back for services. The processing of orders needs to be done within the required time frame. The delivery of the vending supplies by KSV should be done at the right time and at the right place. This is very important because other organization have been concentrating with the other issues pertaining customer forgetting about delivery. KSV need to focus more on this issue. The supply chain integration is also very important. Proper integration will have a positive impact to the organization. KSV need to make sure that the issue of integration is addressed. The system integration and supply chain integration are very important. The system will determine whether e-business supply chain will be effective. A good system will have a positive impact on the business. Many organizations are having problems in this area. KSV should ensure that the supply chain is not affected by the issues to be able to compete effectively. KSV should also make sure that supply chain transparency is addressed. This will make a customer have confident with the KSV supply chain system. E-procurement E-business is a broader term that includes ecommerce and e-procurement among many others. E-procurement consists of many categories. It gives an organization an opportunity to procure materials either direct or indirectly. E-procurement enables an organization to participate fully in the ever dynamic business environment (Neef, 2001, p5).. Handling of certain issues becomes very easy because of the efficient and effective system in place. Issues like Value added services are handled very well. Transportation of the vending machines by KSV will be handled more efficiently. KSV supplies the vending machines and this could widen the market due to an efficient e-procurement system. Issues like transportation, custom clearing and payment will easily be done. KSV can also deal with this issue in different categories. For example, they can have a business-to-business category where they deal with other businesses separately. This ensures that the system will always be efficient and the network will always support it. Another category is business- to-consumer where consumer vending machines needs are easily taken care of. This will ensure that KSV consumers are given the best services possible in terms of transportation of the equipment, payment and delivery within the required time frame. E-procurement ensures that coordination is of very high level. This will make KSV compete effectively in the industry. Business-to-government category can also be set to be able to deal with government offers efficiently. Any procurement involving the government will be dealt with in a different department. This will have an overall impact to the business. KSV also need replenish their stocks. There should be a separate department dealing with the company`s procurement. This will enable the company to compete effectively. Most organizations have a single department dealing with all this issues of procurement. This reduces the organization`s efficiency and overall performance. KSV need to make sure that they do not sail in the same boat with the rest in case they want to be the best. The e-tendering and e-auctioning which falls under this section should be very efficient. KSV need to make sure that tenders are prepared in advance. The vendor management should be very effective and this will improve the performance. The e-payment should be very secure to make sure that customer’ privacy is well protected. The purchase order integration should be effective and efficient. KSV need to ensure that contract management is well handled. The e-procurement system should be very effective to ensure that all these issues are considered. The system should be able to give the best services possible. There should be alternative way in case of failure and this will enable KSV operate efficiently and effective. Communication mixes Communication is very important to any organization. It will determine whether an organization will achieve its objectives or not. Proper channels of communication are required by the organization to avoid confusion. Effective communication is very vital for the success or failure of any institution (Guffey& Loewy, 2013, p2). Communicates mixes occurs whenever the roles of different departments or members are not clearly defined. KSV need to ensure that roles of different department are clearly defined. Different members’ roles involved in the organization need to be clearly defined to avoid confusion. The purpose of having an effective communication is to enable an organization to meet its objectives and goals. E-business will enable effective communication to be achieved quite easily. This is because the roles of each department or member will be defined. KSV need to ensure that this is attained because it will enable it to compete effectively. Effective communication has so many advantages that will benefit KSV. Communication will promote motivation among the staff members. When there are communications mixes members of the staff are discouraged and this may affect the performance giving the competitors an edge. KSV e-business will improve on this area by a big margin if good plans and strategies are put in place. It is also important to educate members of the staff the importance of effective communication. This will be a good strategy in the organization and it will be reflected by the results. It will help in altering individuals` attitude in the organization. There will be better crisis management due to effective communication. Crises are unforeseen and it is good to prepare for them. Communication mixes may cause crisis issue due to lack of effective communication. The E-business may eradicate this issue when there is proper channel to handle it. KSV need to make sure that crisis management is well handled by having a better system to pass the information. This will save KSV a lot of time and resources because the system detects the problem at an early stage. This chance will make KSV to continue with its operation of supplying the vending machines. There will be quick reaction to internal and external environmental changes. Most organizations are victim of this issue. They fail to react to the situation at the right time due to communication mixes. Organizations end up using huge amount of resources to solve it. KSV need to make sure that any changes to their internal and external environment are detected. A team needs to be set up to detect to these changes earlier enough. E-business Service E-business service is now used by many organizations that want to compete effectively. It relies on the internet and it is important for the involved organization to understand how it works (Jilovec, 2000, pg13). KSV staff members need to have a basic understanding on what happens. This will help in case of a basic system failure where members can solve the issue instead of waiting for the technical teams. This will save the institution money and time. Most of the organizations do not give their staff members these basic education on the system they work on. This will give KSV an edge over their competitors. The e-business contains several areas such as e-commerce and e-procurement. It is good to separate these areas to improve the efficiency. For example, e-commerce involves money transaction which is very delicate issue. KSV should ensure that these functions are separated and an alternative way is provided in case of network failure. This will make KSV be among the best in e-business. The purpose of e-business is to have an easy and efficient way to conduct business. KSV will have an added advantage of a global audience reach. They should extend their services to other countries because the e-business offers KSV an opportunity. They should think of widen their market because they can be accessed from remotest village where there is availability of internet access. They will acquire new customers which will be an advantage to the organization. They should ensure that technological factors are addressed to avoid losses. Security factors should be addressed to ensure that their customers feel safe and their privacy is protected. The increased growth risk in e-business should be addressed. This will give them an edge over their competitors. They should test their system regularly to make sure there are no loopholes. This will boost clients` confidence in the system. KSV need to ensure that they create a good rapport with the clients. They should inform the public on the advantages of e-business. Most people do not engage in e-business because they are not aware. Public awareness will make their clients understand the value. Issues regarding the organization may be clarified during this awareness. This will increase their market and a chance to compete effectively. Some customers` perception on the issue is not good and this is an opportunity to clarify on it. KSV need to ensure that legal issues are addressed in time. They need to have a department that deals with this issue. The e-business service involves many issues and KSV need to make sure they are a step ahead of their competitors. Website usability Transaction using e-business should be very easy to conduct. Complications can make a client to avoid the website in the future. The website should be very simple to use (Liddle, 2000, pg12). It should have the necessary information the client needs. When a user spends too much time looking for information they become bored and leave. The website usability should be very efficient to encourage users to stick around. The advantage of simple website usability is that it will make the users to come regularly. Various users need a chance to change the font size. This is because people differ on what they see. No client should be left out of the e-business because of the font size. KSV should make sure that this option is included. Failure to that, the market will reduce because certain people cannot afford to stare at the size of the font on the site. The background should also be able to be accommodative. Some people do not like dark colours. An option should be included to change the background colour that does not affect the user. Breadcrumbs are also very important. They show the user where they are on the website. This ensures that the user can be able to navigate the site quite easily. KSV should incorporate them to show the user where exactly they are while navigating the website. It is important to make a user feel at ease. Most people when conducting online transaction with their credit card are not at ease. Messages such as security is guaranteed are very important to make a user feel relaxed while conducting the transaction. KSV should try and use such kind of messages. This will enable them compete effectively. The site should not be too detailed. Some people are bored when there is too much information on a single page. This discourages some users because the site can distribute the information evenly on other pages. KSV should ensure that such issues are addressed. The site should address common frequently asked questions. This will save user`s time by checking on the website. The ordering process should be made simple to avoid frustrating the user. KSV should ensure that the process is simple. Identifying users with their username or e-mail address will make them feel relaxed. They feel part and parcel of the organization. The ordering process should be very flexible compared to competitors` process. This will be an advantage to KSV. Website usability should be very efficient to the users. This will make them come back again. Conclusion Kent & Sussex organization is doing a great job in the country. KSV has many benefits to the country. It is providing employment to many individuals within the region. This improves the Gross Domestic Product of the country. The standard of living will also improve. This has a positive impact on the country`s economy. There is also increasing competition in the supply of water coolers, snack machines and other vending machines. This improves the sector because of efficiency and effectiveness in the industry. The KSV organization also pays tax to the government which is an advantage to the country. E-business is transforming how business is being conducted. KSV has not been left behind in this sector. The market is changing at a very alarming rate and organizations need to change with it or else they will lose the market that is expanding day by day. There are many advantages in e-business. Business transactions are done much faster compared to the earlier types of transaction. This is a benefit to KSV and other organizations that use this system. Business can be done 24 hours in a day. A company needs to organize how this issue will be addressed. The market that can be reached is very large. An organization can use the e-business to its advantage. The market is very wide because people can access online business whenever and wherever they are. There is low operational cost by the organization. This enables organizations to reduce their daily cost by having an efficient and effective system. The company offers better quality of service to its client which enables it to compete effectively. The business is easily managed by such kind of systems. Organizations need to fully utilize the e-business plan to reap the maximum benefits. They need to be aware of the importance of this service. KSV uses e-business in its daily operation. There are certain issues that need to be fully addressed to ensure maximum benefit is achieved. KVS need to have a focused strategy that addresses all issues in the business. A focused strategy will determine how far a company will exist. KSV has been in existence for 27 years which is a good progress. There are companies that have been in existence for more than a century and this is because of focused strategy. The strategy will have specific and defined goals which are very important to the company. KSV need to make sure that these issues are fully met. KSV need to address all the environmental factors. The environment is very dynamic and complex at the same time. Failure to comply with these changes makes the competitors take advantage. KSV has performed well in this area because they are updated. KSV need to observe what is going on and prepare for changes. This will give them an advantage. Competition is very important to the industry. This enables an organization to offer the best services. KSV is offering the best machines and services in the industry. This depicts the level of competition in the industry. It is also important to understand the demographic factors that affect the business. This is because the customers lie in that group. Different customers have different needs. Some require customized products and services because of the difference in age. Income differs and these bring change in the product clients want. The customer relation management is also very important in the business. KSV can improve on a few areas in this sector. This is because customers are core to the organization. Inclusion of social media on the site is very important. Clients may find this an effective way to pass their message across. This will create a good rapport between the clients and the organization. Customers always like when response is immediate. This is a good way of creating a positive relationship with them. KSV has invested in this area and this enables them to compete effectively. Level of coordination will also have an impact. Customers want an organization where level of coordination is very high. The delivery of product should be within the required time frame. It is important to understand that a client is an asset to a business. Offers are also a good way of retaining and rewarding loyal customers. This should be done periodically whenever sales are expected to decline. Customers will always react when there are offers. This should also be done during the holidays. The spending pattern of clients is high during this time of the year. The organization should take the advantage during such times. Product awareness is also very important. This makes the customers understand the value of their money. Some clients do not understand how this kind of business works. It is important for KSV to make sure that they bridge the gap with their clients. References 1. Holden, G., &Gulbrandsen, D. (2009). E-business. New York: John Wiley & Sons. 2. Khosrowpour, M., & Information Resources Management Association International Conference. (2000). Challenges of information technology management in the 21st century: 2000 Information Resources Management Association International Conference, Anchorage, Alaska, USA, May 21-24, 2000. Hershey, Pa. [u.a.: Idea Group Publishing. 3. Dholakia, . R. R., Dholakia, N., Fritz, W., &Mundorf, N. (2002). 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