Unit 9 - E-commerce and Enterprise resource planning

Question 1

E-commerce definition

Answer 1

Buying and selling goods online

Question 2

Which country is successful at establishing e-commerce?

Answer 2

China

Question 3

Why is e-commerce good and what does e-commerce do that makes it greater?

Answer 3

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

Question 4

E-commerce and data

Answer 4

. 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

Question 5

Why are the people in China more reliant on e-commerce?

Answer 5

Lack of retail infrastructure in lower tier cities which drives Chinese consumers online

Question 6

What are opinion leaders?

Answer 6

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

Question 7

Why is e-commerce risky?

Answer 7

More competition as many businesses now want to compete in a global market

Question 8

Why is customer loyalty at risk?

Answer 8

. 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

Question 9

What is enterprise resource planning (ERP)?

Answer 9

Process in which the company manages and integrates the important parts of a business

Question 10

What does enterprise resource planning integrate?

Answer 10

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

Question 11

Enterprise resource planning and costs

Answer 11

Reduces costs by eliminating duplicate tasks leading to improved efficiency

Question 12

Enterprise resource planning and the market

Answer 12

Monitors by picking up problems and reports trends early

Question 13

Enterprise resource planning and costs

Answer 13

Designing, installing and training staff on how to use the design proves to be costly

Question 14

Enterprise resource planning and tailoring

Answer 14

Has to be tailored to specific companies as one size does not fit all

Question 15

Enterprise resource planning and being ‘locked in’

Answer 15

Once a system is chosen the business is ‘locked in’ to using and updating it

Question 16

Conglomerate merger

Answer 16

Consists of two companies that have nothing in common. Their businesses do not overlap nor are they competitors of one another

Question 17

Red tape - Greiner’s growth model crisis

Answer 17

Dangerous growth due to slow decision making and missing external changes

Question 18

Control - Greiner’s growth model crisis

Answer 18

Formal management with a more decentralised structure yet there needs to be new layers of hierarchy to keep control

Question 19

Autonomy - Greiner’s model of growth crisis

Answer 19

Even though at this point the business will have functional management the founder is still struggling to let go

Question 20

5 Crises (Greiner’s growth model) - LEARG acronym in order (no crisis for alliances)

Answer 20

Leadership, autonomy, control, red tape and growth

Question 21

What are the 6 phases that a business goes through (Greiner’s growth model) - CDDCCA in order

Answer 21

Creativity, direction, delegation, coordination, collaboration and alliances - Need to be in this order as they correspond to phase 1, 2 ect

Question 22

Greiner’s growth model

Answer 22

Predicts 6 phases and 5 crises that a businesses go through as they grow

Question 23

Red tape - Greiner’s growth model crisis

Answer 23

Dangerous growth due to slow decision making and missing external changes

Question 24

Red tape - Greiner’s growth model crisis

Answer 24

Dangerous growth due to slow decision making and missing external changes

Question 25

Growth - Greiner’s growth model crisis

Answer 25

Growth begins to slow as the business runs out of ideas and and alliances are sought

Question 26

Red tape - Greiner’s growth model crisis

Answer 26

Dangerous growth due to slow decision making and missing external changes