Unit 9 - E-commerce and Enterprise resource planning Flashcards
E-commerce definition
Buying and selling goods online
Which country is successful at establishing e-commerce?
China
Why is e-commerce good and what does e-commerce do that makes it greater?
Allows businesses to use an online platforms to sell and promote goods but also allows businesses to adapt to a changing market at a quicker pace
E-commerce and data
. People in China are more willing to have their data tracked and analysed which benefits e-commerce because it allows tailoring.
. Promotion of products and service based on consumer data benefits e-commerce due to its reliance on data
Why are the people in China more reliant on e-commerce?
Lack of retail infrastructure in lower tier cities which drives Chinese consumers online
What are opinion leaders?
The have million of followers online and attract a large customer base online during livestreams who watch them advertise products promoting viewers to purchase them
Why is e-commerce risky?
More competition as many businesses now want to compete in a global market
Why is customer loyalty at risk?
. Unable to form relationships with customers like such that are formed in stores
. Therefore it is unlikely that a customer establishes loyalty to an online business when they can easily compare businesses and switch to a competitor
What is enterprise resource planning (ERP)?
Process in which the company manages and integrates the important parts of a business
What does enterprise resource planning integrate?
Operations - Processing orders and inventory control is an example
Marketing - Sales and customer service
Human resources management - Recruitment, payroll and training
Finance - Accounting, payables and receivables
Enterprise resource planning and costs
Reduces costs by eliminating duplicate tasks leading to improved efficiency
Enterprise resource planning and the market
Monitors by picking up problems and reports trends early
Enterprise resource planning and costs
Designing, installing and training staff on how to use the design proves to be costly
Enterprise resource planning and tailoring
Has to be tailored to specific companies as one size does not fit all
Enterprise resource planning and being ‘locked in’
Once a system is chosen the business is ‘locked in’ to using and updating it
Conglomerate merger
Consists of two companies that have nothing in common. Their businesses do not overlap nor are they competitors of one another
Red tape - Greiner’s growth model crisis
Dangerous growth due to slow decision making and missing external changes
Control - Greiner’s growth model crisis
Formal management with a more decentralised structure yet there needs to be new layers of hierarchy to keep control
Autonomy - Greiner’s model of growth crisis
Even though at this point the business will have functional management the founder is still struggling to let go
5 Crises (Greiner’s growth model) - LEARG acronym in order (no crisis for alliances)
Leadership, autonomy, control, red tape and growth
What are the 6 phases that a business goes through (Greiner’s growth model) - CDDCCA in order
Creativity, direction, delegation, coordination, collaboration and alliances - Need to be in this order as they correspond to phase 1, 2 ect
Greiner’s growth model
Predicts 6 phases and 5 crises that a businesses go through as they grow
Red tape - Greiner’s growth model crisis
Dangerous growth due to slow decision making and missing external changes
Red tape - Greiner’s growth model crisis
Dangerous growth due to slow decision making and missing external changes
Growth - Greiner’s growth model crisis
Growth begins to slow as the business runs out of ideas and and alliances are sought
Red tape - Greiner’s growth model crisis
Dangerous growth due to slow decision making and missing external changes
