What is Strategy in Business?

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Questions and Answers

What is the primary focus of a buy-side e-commerce strategy?

Improving operational efficiencies while enhancing customer service quality (correct)

Maximizing customer satisfaction through online sales

Developing a roadmap for e-SCM applications

Building intranet platforms for employee knowledge sharing

Which of the following is NOT an element of the e-business strategy development framework?

Option generation, evaluation, and selection

Internal and external environment scanning

Strategy implementation and control

Resource allocation and budgeting (correct)

What is the primary purpose of reviewing internal resources and processes in e-business strategy development?

To assess the company's competitive position

To develop a marketing strategy

To identify opportunities for cost reduction

To evaluate the effectiveness of its e-business capabilities (correct)

Which stage of e-business development involves facilitating online transactions?

Transactions Signup and view all the answers

What is the relationship between resources and capabilities in e-business strategy?

Capabilities are the ability to use resources to create value Signup and view all the answers

What is the primary purpose of setting clear, realistic objectives in e-business strategy?

To communicate the goals of the strategy Signup and view all the answers

How is overall success assessed in e-business strategy?

By comparing actual results against objectives Signup and view all the answers

What is the purpose of reviewing the micro-environment in e-business strategy development?

To evaluate the competitive environment and customer demand Signup and view all the answers

What does a strategy define?

How to allocate resources to meet objectives Signup and view all the answers

What is a potential consequence of not adopting e-channels?

Falling behind competitors in delivering online services Signup and view all the answers

What is an essential aspect of an e-business strategy?

Setting specific objectives and developing specific strategies for communicating with customers Signup and view all the answers

What is the goal of channel strategy?

To create differentials values for all parties in a transaction Signup and view all the answers

What is selective adoption of e-channels also known as?

Right channelling Signup and view all the answers

What is the consequence of poorly integrated channels?

Poor customer experience Signup and view all the answers

Study Notes

Strategy Definition

A strategy defines how to meet objectives, allocating resources to achieve goals, and selects a preferred strategic option to compete in a market.
It provides a long-term plan for the organization's development.

E-Business Strategy

Sets specific objectives and develops strategies for communicating with customers and partners through electronic media.
Defines how electronic channels are used in conjunction with other channels (multi-channel e-business strategy).
A channel strategy that thrives on creating differential values for all parties in a transaction.

Key Elements of E-Business Strategy

Communicate benefits of using e-channel.
Prioritize products available (sold/purchased) through e-channel.
Prioritize audiences/partners targeted through e-channel.
Achieve e-channel targets.
Adopting e-channel may not be appropriate for all products/services or generate sufficient value for all partners.

Buy-Side E-Commerce Strategy

Maximizes operational efficiencies while improving customer service quality.
Operational efficiency KPIs drive the strategy.
Defines how to automate internal processes, link internal resource management systems with external purchasing systems, and prioritize suppliers/partners.

Strategy Development Framework

Involves internal and external environment scanning or analysis.
Requires a clear statement of vision and objectives.
Includes strategy development (option generation, evaluation, and selection), strategy implementation, and control.
Reviews internal resources, competitive environment, customer demand, and marketplace structure.

Review of Environment

Assesses internal resources and processes to determine e-business capabilities.
Examines the competitive environment (micro-environment), including customer demand, competitor activity, and marketplace structure.
Analyzes the wider environment (macro-environment) in which the company operates.

Resources and Capabilities

Resources: tangible and intangible assets used for value creation.
Capabilities: the ability of a firm to use resources effectively to support value creation.

E-Business Maturity Model

5 stages:
- Image and product information (basic website or online directories).
- Information collection (online forms).
- Customer support and services (web self-services).
- Internal support and service (marketing intranet).
- Transactions (online sales or e-CRM).

Strategy Process Model

Key elements include strategy definition and implementation.
Directed at achieving objectives.
Success is assessed by comparing actual results against objectives and taking action to improve strategy.

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Description

This quiz covers the definition and importance of strategy in business, including resource allocation, competition, and long-term planning. It also touches on the consequences of poor strategy, such as missed opportunities and poor customer experience.