Start and Operate a Successful Small Business: Expert’s Advice Presenter: Rob Salamida Date: Thursday, Sept 14 Time: 11 AM to 11:50 AM Where: Business Bldg – Room 110 Cost: Free The Year of the Entrepreneur: Speaker Series
A business plan or part of a larger business plan that involves a firm’s Internet business activities.
A document containing detailed descriptions of the fundamental structure of the firm and the activities within it, including sources of revenue, the identity of target customers, pricing, promotion, and other strategies.
New plans require research into these environmental forces before any strategic decisions can be considered
Research for any e-business plan begins with an understanding of these forces
Case Study Project Requirements
www.pictometry.com (Rochester, NY)
www.sunsoap.com (Potsdam, NY)
Interesting Case Studies
Environmental Forces Affecting E-Business Planning and Practice
External environmental forces are those factors affecting e-business strategic planning that originate from outside the organization proper.
Internal environmental forces are those factors that are closely associated with the organizational functions and activities taking place within the firm .
Need to constantly monitor both internal and external in order to be successful
External Environmental Forces
Globalization Forces: Positive vs Negative
From many people’s point of view, globalization forces are positive as they inevitably draw the people of the world together to live under universally shared standards of culture , communication, technologies, and economics.
Examples: Call centers in India
Thomas Friedman’s Thesis
Globalization is a self-directed movement guided by principles of democracy, technology and free-market capitalism
No one single country controls globalization
Countries will be forced to become players and to dismantle their barriers if they wish to survive
Political, legal and cultural barriers will become fuzzy
Global free marketplace demands minimal interference
The Internet has encouraged this movement
Globalization Forces: Positive vs. Negative
To others, globalization represent a threat to individual national cultures, identities, languages, and sovereignty that have managed to survive until today, but that may not be able to survive the growing pressures created by the process of globalization in the future.
Lost American jobs
Is globalization a positive force for change or a negative one?
The forces that can influence the socially and culturally defined characteristics of a firm’s customers, suppliers, and employers.
Achievement and Success
Freedom and Individualism
Efficiency, Progress, and Technology
Knowing about how people behave in social situations as well as their cultural characteristics will help us understand how people are likely to behave on the Internet
Demographic forces involve descriptive population characteristics such as age, gender, race, ethnicity, marital status, parental status, income, and educational level.
Forrester.com : source of demographic info
What can we use demographic data for in planning our marketing strategies?
Employment and Income Levels
Interest Rates and Inflation
Foreign Exchange Values
Individual, Corporate, and Overall Economic Growth
What are some examples of using such information in planning?
The competitive forces that are at work in the external environment relate mostly to the direct competition between firms that offer similar or substitute products and services.
What are some examples of competitors? How would you differentiate between them?
Google/EBay and Apple/Amazon partnering
Intermediary and Supplier Forces
Intermediary and supplier forces refer to the behaviors of wholesalers, online brokerages, and auctions where buyers and sellers are able to efficiently conduct exchanges and secure a supply of needed materials.
Using the internet to maximize the availability of sources of inventory
Need to continuously monitor supply chain
Technological forces refer to the influence on planning of the complex hardware and software used in e-business.
Constant change in hardware and software
How will technological forces such as high-speed Internet access, wireless connectivity, and telephony continue to affect online demand for products and services?
Political and Legal Forces
Political and legal forces refer to activities related to governments and government agencies.
Do you think that a company located in New York should be expected to function according to our laws, regardless of the fact that its activities may be partly or totally carried over the Internet?
Internal Environmental Forces
Management and Organization Structure Forces
The firm’s management and organization structure forces include those related to theories about leadership and motivation of employees, the organization culture, communications styles, and operations of the business.
Human Resource Forces
Human resource forces include issues related to employees:
The work they are assigned to do
How new employees are recruited
Development and advancement strategies within the organization
How the firm maintains employee expertise through training and promotions
What are some benefits that an e-business employee might consider just as important as money?
Information and Knowledge Forces
Information and knowledge forces include employee skills, availability of information, and the general level of employee knowledge.
How would you use the Internet to distribute important information to your employees?
Financial forces include any money-related influences on e-business planning.
A firm’s financial condition, structure, and other related issues play an important role in determining the available range of strategic planning possibilities.
Startup companies – cash flow issues
Public vs private companies
Case Study Discussion: Kodak EasyShare Gallery
Anybody use EasyShare?
Kodak EasyShare Gallery
How does the rise of digital imaging technology over film change the business of photography?
How does an online photo service open up new business opportunities in consumer photography?
What kind of services can you see evolving in the future as digital photography gets more popular?