Strategic industry through · building markets share · technology

Strategic Management:

It is
about determining the purpose and aims of an organization and fulfilling it by
choosing the most appropriate actions within the time frame. Chandler (1962)
describes strategy as the activity carried out to achieve the goals through
allocation of appropriate resources and through the adoption of course of
actions.

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According
to e-business perspective the vision of organization is determined by the
effort of managers for the growth of industry. It also depends on the ability
of managers in,

·        
creating opportunities in the market
place

·        
technology utilization

·        
through building relationships with the
partners and the customers

 

Vision
also shoots the organization ability to influence the structure of the industry
through

·        
building markets share

·        
technology

·        
management skills

·        
marketing and other key elements

Strategic process:

Strategy
can be stated as an approach or decisions or actions that are carried out to
achieve the goal of an organization. These decisions are based on,

·        
Internal analysis

·        
External analysis

 

Internal
analysis comprises strength and weakness and External analysis comprises
opportunities and threats. Together it forms SWOT analysis. This analysis
involves,

Ø  identifying issues

Ø  finding solutions

Ø  selecting suitable strategy

Types of analysis
involved in Strategy:

Internal analysis:

It is
undertaken by the managers to show how effectively they control the strategies
and how efficiently they organize the resources in supporting the strategies.
Resources can be physical or intellectual or financial.

External analysis:

It is
undertaken to provide the complete understanding of the competitive environment
that an organizations face within their industry sector. But the competitive
environment influences the choice of strategy for an organization.

Value chain analysis:

It
focus on how much an organization activities adds value to its products or
services when compared to cost spent for the resources in productive process.
Every organizations has own idea to produce a product. It is manager’s
responsibility to coordinate with the resources in involving activities to
produce the quality product.

Virtual chain
analysis:

This
analysis is based on the strategic role in gathering, organizing, selecting and
synthesizing, and distributing information. Virtual markets refers to the
settings in which business transactions are conducted via open network based on
the fixed and wireless internet infrastructure.

 From the strategic analysis the managers can
narrow down the options suitable for the organization. Each option will be
examined by the key strategic issues.

E-Business strategy
implementation:

Once a
strategy has been formulated, the next stage is to implement it successfully.
Firms need to focus on effective strategic controls that link the strategy to
the performance measures. Generally firms undertook the strategic controls once
the strategy is formulated and implemented. The strategic control constituted
the evaluation of performance against pre-determined targets. Two key elements
form the strategic control process are as follows,

·        
informational control

·        
behavioral control

 

Informational
control helps the managers to determine the suitable strategy to achieve the
firm’s objectives. It’s process of gathering and analysis to improve
organizational learning.

Implementation
of strategy requires firms to effectively leverage organizational learning. Coordination
and collaboration among the team are the part of organizational learning which
can be carried out through integrated system of electronic communications.

Organizational
learning occurs

·        
through
Experience

·        
through
knowledge, ideas and approach

·        
through
building and sharing knowledge

 

Behavioral
control focuses on actions undertaken by the firm to meet the set targets and
standards. Traditionally, firms placed an emphasis on rules, regulations and
procedures to control behavior and achieve aims and objectives.

The
implementation of strategy involves taking measures to action the selected
options. It always means communicating the options across different levels of
organization. Strategies are decided at corporate level and communicated to
business level managers. The practical implementation of strategy is usually
carried out at the-business or functional level of management in the
organization. Implementation involves four critical success factors,

1.    Forms the daily activities of staff

2.    How the organization is structured

3.    Values of the organization

4.    How the managers controls activities and produce the desired
outcomes

E-Business
strategy evaluation:

After
implementation the strategic process includes the evaluation of the performance
of the chosen strategy. The actions that are implemented needs to be monitored
and evaluated to determine the effectiveness and efficiency of the strategy.

Evaluation
is about measuring the performance of an organization. This will reveal the
strength and weakness of org and will helps the managers to look into the
future strategy. Evaluation measures both internal and external factors. It
tells whether the organization needs changes to the proposed strategy or not.
When there is a necessary change, org should analyze the severity of changes
and should implement it.

Evaluation
can be carried out using the following criteria,

1.    Suitability

2.    Feasibility

3.    Acceptability

4.    Scope for gaining the competitive advantage

Evaluation
of strategy involves appraising the selected option or chosen strategy. It is
basically a monitoring process that stretches from the implementation of
strategy back to the analysis. Every firm can be characterized by their growth
and change in environment. Such changes can be predicted by internal and
external analysis that may require action. It is necessary for an

organization
to review their strategy periodically to ensure that the proposed strategy fits
for our organization and to achieve the stated goals. The most common feature
of evaluation is comparing set targets with performance achieved. Firms in
e-business and e-commerce evaluate the performance of the website in attracting
customers and to produce the desired outcomes. It is a part of control process
in the organization.

Summary:

Formulation
is the first step of e-business to determine the objectives and to achieve the
stated goals through different analysis. Next Success factor of e-business
depends on having a feasible E-Business model, coherent strategy and potential of
firm to implement the strategy to achieve the stated goals. Evaluation is a
part of control process and setting standards based on performance of an
organization. Managers should take at most care in order to analyze the
proposed strategy suits for a firm or there should be any necessary changes.

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