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Questions and Answers
Companies can enhance customer relationships by utilizing technology-enabled relationship management.
Companies can enhance customer relationships by utilizing technology-enabled relationship management.
True
Permission marketing involves sending emails to customers without their consent.
Permission marketing involves sending emails to customers without their consent.
False
Using social media to share articles about proper footwear can increase customer engagement.
Using social media to share articles about proper footwear can increase customer engagement.
True
ECRM stands for Electronic Customer Relationship Management and focuses solely on vendor relationships.
ECRM stands for Electronic Customer Relationship Management and focuses solely on vendor relationships.
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A lack of an e-business strategy can lead to missed opportunities in sales and poor customer experiences.
A lack of an e-business strategy can lead to missed opportunities in sales and poor customer experiences.
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Key performance indicators (KPIs) help measure progress against strategic objectives.
Key performance indicators (KPIs) help measure progress against strategic objectives.
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The primary focus of social media in an e-business strategy should be on hard selling.
The primary focus of social media in an e-business strategy should be on hard selling.
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A value chain includes channels for organizing activities related to product support and marketing.
A value chain includes channels for organizing activities related to product support and marketing.
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The finance and administration activities are not part of the support activities in a value chain.
The finance and administration activities are not part of the support activities in a value chain.
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Automating internal processes is not a part of the buy-side e-commerce strategy.
Automating internal processes is not a part of the buy-side e-commerce strategy.
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Linking internal resource management systems with external purchasing systems is important in an e-business strategy.
Linking internal resource management systems with external purchasing systems is important in an e-business strategy.
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A strategic business unit combines product, distribution channel, and customer type.
A strategic business unit combines product, distribution channel, and customer type.
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Customer Satisfaction is not considered a key performance indicator (KPI).
Customer Satisfaction is not considered a key performance indicator (KPI).
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E-business strategy focuses on short-term plans for technology implementation.
E-business strategy focuses on short-term plans for technology implementation.
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The three levels of e-business strategy are corporate, business, and operational.
The three levels of e-business strategy are corporate, business, and operational.
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Understanding the current position is the first step in strategy development.
Understanding the current position is the first step in strategy development.
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The sell-side strategy is primarily focused on improving operational efficiencies.
The sell-side strategy is primarily focused on improving operational efficiencies.
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An e-business strategy helps to communicate the strategy internally within the organization.
An e-business strategy helps to communicate the strategy internally within the organization.
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Analyzing strengths and weaknesses is not a necessary step in strategy development.
Analyzing strengths and weaknesses is not a necessary step in strategy development.
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Buy-side strategy is solely about maximizing profits without regard for customer service.
Buy-side strategy is solely about maximizing profits without regard for customer service.
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Setting objectives is one of the steps in the strategy development process.
Setting objectives is one of the steps in the strategy development process.
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Study Notes
Electronic Business Systems
- Electronic business systems encompass data management, e-business, and security.
Chapter 4: E-Business Strategy
- Strategy defines how to meet objectives, allocate resources for goals, and select preferred options for market competition.
- It provides a long-term plan for organizational development.
- E-business strategy defines how internal and external electronically-mediated communications contribute to corporate strategy.
- It plans and implements the right digital technology for managing electronic communications with partners.
Three Levels of E-Business Strategy
- Corporate-level strategy
- Business-level strategy
- Functional strategy
- These different levels allow business leaders to set goals from the highest corporate to the lowest functional level.
Relationship between E-Business and Other Organization Strategies
- E-business strategy is interlinked with constraints, opportunities, e-commerce (buy-side and sell-side), supply chain management (SCM) strategy, information systems strategy, and marketing/customer relationship management (CRM) strategy.
Strategy Development Steps
- Researching and identifying strategic options.
- Selecting the most promising options.
- Deciding on resource allocation methods to achieve objectives.
- Understand the current position
- Reflect on how you got there
- Define corporate identity (mission, vision, and values)
- Analyze strengths and weaknesses
- Analyze the business environment
- Identify and evaluate strategic options
- Set objectives
- Communicate the strategy
- Implement the strategy
- Review progress
Analyze Market and Competitive Position
- Analyze the current environment, driving forces, and value chain.
- Develop market scenarios.
- Analyze the existing strategic plan, new strategic focus, vision, key strategies, and supporting strategies.
- Analyze competitive position to include customer analysis, competitors, opportunities, threats, organizational readiness, and gap analysis.
Sell-Side Strategy (E-Marketing/CRM)
- Sell-side is a channel strategy.
- E-commerce online contribution defines how to drive strategy.
- Discover channel thinking leaders and sales targets.
- Prioritize products and audiences.
- Focus on acquisition, conversion, service, and profitability.
- Prioritize products available through this channel.
- Prioritize audiences targeted through the channel.
- Select partners for this channel.
Buy-Side Strategy (E-Supply Chain Management)
- Buy-side strategy maximizes operational efficiency and improves customer service quality.
- Operational efficiency KPIs drive the strategy
- Key performance indicators (KPIs) measure progress towards strategic objectives.
- Customer Satisfaction
- Internal Process Quality
- Employee Satisfaction
- Financial Performance Index
- Automate internal processes.
- Link internal resource management systems with external purchasing systems.
- Prioritize external suppliers and partners who collaborate.
- Prioritize applications for SCM (Supply Chain Management).
- Develop a roadmap.
- Select appropriate strategic partners.
Value Chains
- Electronic business encompasses many activities and transactions, requiring focused business processes for managerial decisions.
- Value chains break down business into value-adding activities.
- A strategic business unit combines products, distribution channels, and customer types.
- A value chain organizes how strategic business units design, produce, promote, market, deliver, and support products/services.
- Support Activities: Finance, Administration, Human Resources, Technology Development
- Primary Activities: Design, Identify Customers, Manufacture, Deliver, Market/Sell, Purchase, Provide After-Sale Support
Examples of E-Business Strategy
- Social Media Strategy: Using social media (Twitter, blogs) to provide useful information about products/services to followers and build relationships. This approach avoids hard-selling and focuses on making the product desirable.
- Permission Marketing: E-mail marketing where customers have requested to receive messages. This strategy is effective when customers are actively seeking the products and information from the company.
Technology-Enabled Customer Relationship Management (CRM/ECRM)
- The Web allows firms to gather customer behavior/preference data beyond what's possible through traditional micromarketing.
- CRM/ECRM analyses customer data to set prices, negotiate terms, tailor promotions, add product features, and optimize customer relationships.
- Even though ECRM can be used to manage relationships with vendors, employees, and other stakeholders, current uses are mainly for managing customer relationships.
No E-Business Strategy
- Missed opportunities for sales or efficiency.
- Falling behind competitors in online services.
- Poor customer experiences due to poorly integrated channels.
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Description
This quiz explores Chapter 4 of Electronic Business Systems, focusing on e-business strategy. It covers the definition, significance, and levels of e-business strategy, as well as its relationship with organizational strategies. Test your knowledge on how e-business aligns with corporate objectives and resource allocation.
