A Proposition to Incorporate E-Business in its Current Marketing and Selling Approach - Example

Tasks. Select an organisation where a significant change process is required to build resilience in the current environmental conditions then produce a report with your rationale on the change process itself and the exposition on the “organisational readiness” to deal with the current environmental conditions and finally Submit your Report addressed to the Board of Directors (Senior Management Team) of your selected organisation. Fabulous Scandinavian Furniture: A Proposition to Incorporate E-Business in its Current Marketing and Selling Approach Rationale for the selection of the scenario for change management process Fabulous Scandinavian Furniture (FSF) is a recognized and very promising company. It has been supplying home wares, furniture and other related products to four major European countries (such as Norway, Finland, Sweden and Holland) and to customers in Australia, New Zealand and the Pacific Islands. The board directors of the company have noted that the staffs (particularly those in the human resource, marketing and sales department) are finding it hard to reach the target customers considering the location of the company versus the location of the customers. Time difference and communication barrier add burden to the current company set up. Lastly, workers have shown some tendencies of work burnt out as they feel that they are doing the same tasks that they have been doing from the very beginning. In short, workers feel that they are not ‘growing’ or being up-to-date in terms of globalization is concerned. One of the board members suggested the idea of going online. With the advent of today’s technology, the use of Internet is becoming more of an income-generator than just a lifestyle. This is the very reason why the so-called “E-business” is growing remarkably. Electronic business (e-business) is defined as the business which is conducted through the Internet. It involves not only the buying and selling of certain products but also servicing the customers and collaborating with various business partners. (Alexandrou, 2002 para. 1). IBM is one of the internationally known companies who has mastered the use of this method and has found it to be very effective. From online marketing and promoting of the products (thereby gaining access to a wider array of customers), to selling (which also involves invoicing), that are all plays a significant part of the e-business processes prove that e-business is indeed becoming a trend nowadays making all transactions available on-line. Going online seems a very promising idea. This may answer the company’s problem in terms of location, time difference and communication barriers when addressing international customers. This will also address the growing concern of the workers in their desire to ‘grow’ and develop and be up-to-date with today’s business trends. However, there are a number of issues that still need to be taken care of. These include: The advantages and disadvantages of going into e-business The best possible online selling and invoicing system that the company can adopt The security and credibility issues that the company must address Current thinking in Change Management Processes and Practices The accelerating pace of change in globalization, communications, disruptive technologies, capital flows and alliances have created fundamental shifts in business operations and in leading a group (Hughes, 2004). Where many popular leadership models may provide formulae to help solve some business problems, these are insufficient to deal with the pace and polyvalent character of constant, rapid change. Managing change - its impact on organizational structure, group culture, and personal management styles - is one of the most fundamental and enduring aspects of leadership (Buhler, 2000). Ironically while the relative value of the once-celebrated individual leader as superman or woman is being questioned, great leadership has never been more urgent or more difficult. In a very challenging world surrounding the leaders they encounter different challenges that would make them competitive in any way they can. Globalization has been taking place ever since different communities sought to exchange goods, ideas, technology, capital, information, arts and people - whether in the form of slaves or sages. The driving forces for globalization have varied over time and place (Buhler, 2002). Big businesses have enthusiastically embraced globalization, seeking out and profiting from new opportunities - wherever their brands, capabilities, and technology have taken them. Yet a consensus is emerging that globalization has reached a turning point (Hughes, 2004). Globalization constantly opens up fresh perspectives and raises new challenges: different markets, types of business organization and industry sectors require different approaches and no single solution fits all situations. But globalization and economic integration offer the best way forward for long-term business prosperity and for improving the quality of life for individuals (Kacena, 2002). Changes in technology and economics are altering the way people live and relate. A global culture made possible through the ease of communications and travel leads to greater interaction between people and places. The impact of globalization in the world city goes beyond the towers of concrete and glass to the lives of those who live in its shadow. The global dimension of the contemporary city sets new challenges as new technologies and communications create new patterns of social life. This is true not just for the business world and the affluent but also for the poor, particularly for minorities whose communities now stretch beyond limited geographical ghettos (Edwards, 2005). Globalization in any way is not the only challenge then but also the rapid technological advancements encountered by every individual (Kacena, 2002). Thus, it is then right for the board of directors to believe that if the company will go into e-business, it will definitely be a good idea. First, there is a very low competition. The products that the company is offering are basic home requirements but most of the companies who provide the same line of products do their business thru personal selling. More so, the company will not give up its warehouses where consumers can buy personally, the company will just make another venue that a larger number of consumers can access. Utilization of appropriate Models / Theories especially the Human Resources and Organizational Development theories There are various stages of organizational development which would be very helpful in creating a niche and maintaining the balance within the international business environment. They are the following (Katz, et.al, 2003): a) Creative Stage. Entrepreneurial firms start with a creative stage in which they are often headed by one person who "is" the company. As the firm internationally grows, it adds employees and confronts the first crisis of organizing. Katz identifies this crisis as one of leadership in which owner-managers are too overworked to manage operations and supervise employees. b) Direction Stage. The enterprise grows and reaches the direction stage: the founder must turn to other managers to shoulder some of the decision-making responsibilities. Such decision may include expanding the business to other international areas or maintaining the hold in just one country. c) Delegation Stage. The third stage of growth is called "delegation" because managers must find ways to diffuse authority as the company diversifies into new product lines and new markets in the new environment. d) Collaboration Stage The fourth stage, collaboration, suggests a transition away from bureaucratic paralysis toward more flexible and adaptive forms of organization. e) I.T. Stage. There may be a fifth stage, characterized by instantaneous communications and reorganization tempered by global linkage and the need for managers to make and diffuse decisions without intermediaries. Global changes in technology, information exchange, and science have accelerated the growth of economic activity during the past several decades. These changes have led to a dual-career work force, signaling new family and work relationships. The newly created business abroad can rapidly accept group decision making, cooperative environments, and new system of work that require interdependent performance. With improved centralized computer systems and widespread use of databases, many companies have decentralized decision-making. Executives can access information on operations almost instantaneously through information networks and decision-support systems and so relieve the company of hands on middle- management coordination. More decisions are made at the top with direct effects on first-line operations. Extensive information systems also allow rapid diffusion of information so that managers at all levels have excellent support for making localized decisions. Pursuing Corporate Objectives and Goals Motivation Motivation is defined as the stimulus of behavior. In a global corporate environment, it is defined as the process of stimulating employees to perform better in the pursuit of organizational objectives. It results from influencing persistent and constructive behavior through addressing individual needs and reinforcing activities that enhance employee satisfaction initiated by the individual through self- generated drives. When employees want to perform better and they are better satisfied with their results, organizational productivity will definitely improve on their products and services (McDougall, and Oviatt, 2000). With enough knowledge, all these basic facts of motivation as well as the aspects and nature of human behavior, managers and even the most basic workers in an international corporate environment can have a smooth flow of working relationships. If the managers will know how to basically handle his people (due to the learning that can be attributed form this chapter) he / she then can easily relate to his people, answer their needs and wants and at the same time acquire the desired output of the company from them. Communication In an international corporate environment, communication is the real essence of leadership because it is what everybody does as members of the organization in articulating plans, organizing efforts, coordinating whatever company-related activities and controlling progress. Managers exchange planning information in the formation of objectives and setting courses of action. They also communicate expectations for performance, define authority and allocate resources. By doing these actions, they are functioning as leaders. Communication process involves sharing ad/or giving of information to the desired recipient through different channels. To make the communication process effective, one must send or initiate messages clearly, encode them carefully and choose appropriate channels for transmission. Furthermore, one must be a good listener. The challenge for managers is to improve the likelihood that their messages will be received and understood, while being receptive to message sent to them by others. The three categories of formal communication in an organization, based abroad, that requires managerial skills are (McDougall, and Oviatt, 2000): 1) Downward communication (messages and information initiated by superiors to subordinates, usually in the form of directives) 2) Upward communication (messages and information initiated by subordinates for their superiors, usually in the form of reports) and 3) Horizontal communication (the process of exchanging information between peers at any organizational level, usually to coordinate activities). Consideration and Justification of the change management process in terms of resources, corporate culture, and championing the change FSF Moving to E-business 1. How to Start Going Online To facilitate the e-business, FSF must follow a series of activities to ensure that its online selling endeavor will flourish. First is developing a business plan. This will help answer how the company can make use of e-business for marketing, invoicing, selling, buying, etc (Klimley, 2002). If the business plan is done and the management proved that e-business for FSF is beneficial, then the company must establish a website. This website must contain information about the company. Also, the company must see to it that this website is user-friendly so as not to disappoint or ‘scare’ the online visitors. The website need not be ostentatious or flashy. Credibility and a compelling image are what’s important. Amazon.com and other sites are successful due to brand recognition nut they have achieved that recognition by selling the right products at the right time to the right customers (Klimley, 2002). After the website has come to its operation, a webmaster will come in very handy. Somebody from the company must be in charge of the site to keep it running smoothly, respond to online visitors’ queries and constantly update it (Klimley, 2002). The company must also register with electronic marketplaces (the so-called business-to-business portals). This goes without saying that before registering, the company must assess which of the available portals can best serve the industry/company (Klimley, 2002). Then, the company can start exploring how to sell online. Merchant accounts (such as credit card companies that will enable the company to receive payments from clients’ by credit card) should be maintained. Constant communication (via email) is also a good way to maintain good customers and also increase the number of customers. Soliciting the help of an internet marketing firm that specializes in online marketing is also a good idea if the management thinks that it still needs help with getting the online store to reach its target audience (Klimley, 2002). It must also be kept in mind that the company, even if it has established itself in the e-business world, that the company still maintains personal relationships with every customer. The management must spare some time to meet the people that the company does business with over the web when they become customers. Setting up meetings with clients, continuously to attending conferences, and never forgetting that the company’s success is built on the relationships that it has created and maintained with the customers - both online and in person – are still the best selling strategy that any company must adhere to. It has also been observed that customers return to the company’s website based on the company’s past behavior with them (Klimley, 2002). Most company who aspires of going online fears that loyalty from customers is not possible. But, the truth is customer loyalty is easier to gain if the company knows how to manage them well. Trust is what they are looking for in the e-business. Customers are taking notes on what has been going around the e-business world will not shop on a site unless it is clear to them the site is secure. Thus, to achieve customer loyalty, the customers must feel safe by both implementing and advertising secure sockets layer (SSL) security features on the company website (Klimley, 2002). 2. Online payment and Invoicing Methods to Adopt Security is a big risk on online payment and invoicing. How sure is the company that the person buying the item is able to pay for the product? In the same manner, the customers will have second thoughts regarding the company’s credibility of producing or delivering the item they are buying at the right quality and at the right time. Since FSF is just starting to go online, the best payment method that must cater to (for the time being) is through credit card payments and electronic bank transfers. The company website itself must have direct connections with major credit cards and/or banks. The flow of transaction via credit card payment may be: The company website can check easily with the credit cards companies if the person is credible enough for the items. The credit card number and the name of the person are enough information to check with the credit card company. But this can only happen if the company has notified the credit card companies about the online business and has sought for an authorization for the credit check. The flow of transaction via electronic bank transfer can be: The amount of the account being maintained in the bank is not important in this aspect and the company does not have the right to ask about it. The company is only concerned if the balance of the account is enough to pay for the item hence it is the only thing that should be asked. More so, this type of payment requires the company to have legal communication with the preferred banks so as to have the authority to ask for customers’ existing accounts. Also, as it takes time for the bank personnel to check regarding the accounts of their clients, this cannot be done in just one sitting hence the email for feedback and confirmation is necessary. Electronic bank transfer can also be used by other companies who will wish to purchase with FSF. This provides bigger opportunity for the company to cater not only to individual buyers but also to commercial and/or other merchants. Route map of the change management in action Fabulous Scandinavian Furniture will continuously have a very bright future if it will decide to go online. The flow of change must start from the management (who will conceptualize the change and eventually put the concept into action) down to the marketing, sales and even the human resources department. A fully equipped and easy to access website coupled with website administrators is a good way to start the online selling. Communicating with major credit cards companies and a number of stable banks is the second major step. This is to ensure that the company will have the right to check with them in terms of the accounts of any consumer who will decide to purchase online. With the methods suggested above, FSF’s online selling will surely flourish. At the same time, security of FSF’s and the buyers’ accounts will be maintained because everything will be checked and verified accordingly and in a very legal way. 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