Business Strategy and Planning

Author(s):  
Stephen Burgess ◽  
Carmine Carmine Sellitto ◽  
Stan Karanasios

In the previous chapter we highlighted the importance of planning for an effective Web presence. In fact, the existence of a disciplined planning approach is seen as an enabler for the effective use of ICTs and e-commerce in small businesses,whilst short-range management perspectives and lack of planning are viewed as barriers. This chapter builds on the tenets identified in the previous chapter to examine how a small business might prepare itself for a Web presence. We believe that small business operators/ managers should know their strategic business direction before they consider establishing a Web presence. We will commence by investigating some basic business theory.

Author(s):  
Stephen Burgess ◽  
Carmine Carmine Sellitto ◽  
Stan Karanasios

The purpose of this chapter is to discuss how a small business decides upon its Web presence strategy and then determines what features will make up the content of its Web presence. The Web presence strategy is considered after the overall business strategy has been determined and a SWOT analysis performed (refer previous chapter). First we will examine the Web presence strategy.


Author(s):  
Stephen Burgess ◽  
Carmine Carmine Sellitto ◽  
Stan Karanasios

The new global economy has resulted in the availability of unprecedented opportunities for small business. ICTs in particular have contributed to the underpinning of a revolutionary era of trade and commerce. The Internet in particular, and the ability to use the Web as a virtual shop front (having an online shop without physical premises) has not only allowed new forms of small businesses to emerge, but created an environment where they can compete with their larger counterparts. In what has been commonly become known as the new economy, one of the most fundamental tasks for small businesses is to investigate the usefulness and relevance of ICTs for their business. Furthermore, all small businesses need to assess their capacity to adopt ICTs allowing them to leverage the technology so that they are well positioned to expand their customer base, rationalize business processes and enter new markets. Porter (2001) observed at the height of the dot-com boom that it should be evident for many businesses that it was not whether to deploy ICTs, but how to use them as a competitive part of business strategy. In this chapter we first look at some of the main barriers and drivers of ICT adoption. We then move on to examine the notion of the “readiness” of small businesses to set up a Web presence. We will also examine previous studies that have examined adoption of ICTs in small businesses, for the purpose of identifying those drivers and barriers that can affect small business wishing to go down that path.


2015 ◽  
Vol 13 (1) ◽  
pp. 1-14
Author(s):  
Chuleeporn Changchit ◽  
Tim Klaus

This study aims at exploring the factors related to the implementation of E-commerce websites by small business owners. While large organizations often consider E-commerce as a fundamental piece of their business strategy, small businesses place varying degrees of importance on E-commerce as a strategic tool to business success. Through a survey of small businesses, this study examines the creation and usage of E-commerce websites for small businesses. For companies with only a web presence, as well as for companies with an E-commerce website, the top two reasons for an E-commerce website identified by respondents of this study are to increase the profits of the company and to increase the market share. The study also found that factors such as lack of management support and costs greater than benefits were not detrimental to the decision to implement an E-commerce solution. Additional factors motivating small businesses to create and use E-commerce websites include the ability to better respond to customer demands and increased profits as a result of having E-commerce websites. This study contributes to the E-commerce literature by highlighting motivations of small business owners as they consider implementing E-commerce solutions.


Author(s):  
Stephen Burgess ◽  
Carmine Carmine Sellitto ◽  
Stan Karanasios

This chapter serves to raise an awareness of some of the more cutting edge Internet innovations and applications that may become viable and useful to the small business operator in future. The chapter focuses on some of the new and emerging forms of technologies that the authors have identified as potentially affecting the Web presence. Consequently, the topic areas and content examined in the chapter does not claim to be all encompassing or prescriptive. Some of the innovations examined are nascent and may not progress to a critical mass for general adoption, whilst others tend to be used by larger business entities, possibly requiring a re-configuration if they are to be successfully used in the small business environment. Arguably, many if not all would in some way impact on the business Web presence if they were to be adopted in future. An examination of the adoption and use of new forms of technology and ideas - or innovations as they are sometimes referred - can be assisted by examining how the early adopters use these innovations. This was briefly discussed in Chapter IV. The concept of innovation adoption and the importance of early adopters is well documented by Rogers (1995). The Rogers’ paradigm describes how innovations advance, or diffuse, through a population either to be adopted or to be rejected. The successful diffusion of an innovation generally follows the S-shaped rate of adoption when a cumulative curve is plotted. The cumulative S-shaped rate of adoption curve is depicted in Figure 1 showing the relationship between the adopters and late-adopters over a period of time. Generally, the adoption of the innovation by the early adopters results in an adoption curve that is reasonably flat. However, as more members of a business group adopt the innovation, the curve ‘takes off’, with the advent of late adopters signalling the innovation has diffused through that particular group. Clearly, for the small business operator an indicator of an innovation that may be associated with a Web presence can be closely allied in the identification of the early adopters. The early adopters are important in the diffusion process as opinion leaders - where potential adopters look to them for advice and information, as well as best practices to emulate. Moreover, the early adopters are considered to be the individuals to investigate or analyse before using a new idea, tending to serve as role models for many others. Early adopters can be deemed to be the most important constituent in the innovation-diffusion process because they decrease uncertainty about a new idea or technology, and as a consequence convey a message of acceptance and effectiveness to peers (Rogers 1995). According to Norman (1998), the early users of an innovation provide the experience for the late adopters to observe and to learn from. Norman further suggests that even though these early users are relatively few in number, they are the drivers of a technology and can provide examples of how and why that innovation can be used. Arguably, the small business operator by conducting an examination within their own industry for the specific use of new forms of Web-related technology will identify a set of industry early adopters from which they themselves can learn from. Small businesses have been known to be conservative in nature in relation to their use of ICTs, so many feel quite comfortable with the notion of waiting until the early adopters have been successful or otherwise. Of course, if the adoption has been successful they do not necessarily achieve the same level of benefits (often resulting in competitive advantage) that early adopters realise, but at the same time they are not taking the same risk with an unknown technology. Often, the late adopter is forced to adopt the technology as it has diffused through the majority of the industry as is regarded as a requirement by business partners or customers.


2018 ◽  
Vol 7 (3.25) ◽  
pp. 106
Author(s):  
Sudrajati Ratnaningtyas ◽  
Wawan Dhewanto ◽  
Bambang Rudito ◽  
Eko Agus Prasetio ◽  
Gina Gina Karunia Kusumah

This study aims to determine whether or not the impact of business size on business model building and business performance perceived owner. This research used a quantitative-qualitative approach with Survey Method. The study was conducted in Apparel industry in Bandung City in 2017. The business model used to evaluate is Business Model Canvas (BMC). Chi-Square and Mann-Whitney U tests were used to test the differences between micro business and small business on each of BMC building blocks. The results showed that BMC building blocks between Micro Business and Small Buisness differed on two blocks, ie Channels and Revenue Streams, while the other seven blocks were not different significantly. It can be interpreted that the business model on Micro Businesses is generally slightly different with Small Businesses, or in other words the business strategy is relatively the same. However, the Business Model applied to Small Business with excellence in marketing channels and revenue streams compared to Micro Business, has resulted in a higher level of owner satisfaction on the performance of its business.  


2020 ◽  
Author(s):  
◽  
Olakunle Olayinka

Small businesses are often considered important to a nation’s economy. In Nigeria, the small business sector contributes about 48% to the GDP, and there is an increasing effort to support the small business sector as a way of combatting societal ills. Within the last decade, there has been a global increase in the use of e-business by both large and small companies. Today, it is generally acknowledged that e-business provides a range of opportunities for small businesses to operate and compete effectively; however, in developing countries such as Nigeria, there is very limited research on e-business adoption in the small business sector. This thesis examines the adoption of e-business technologies and processes in Nigerian small businesses. Using an inductive approach, informed by a case study strategy, a longitudinal study of six small businesses in Lagos, Nigeria was conducted. Data was collected using interviews and questionnaires, and both thematic analysis and framework analysis were utilised to analyse the cases. Research results indicate that small businesses in Nigeria are utilising e-business systems. Key issues impacting upon e-business adoption and eight critical influencing factors that affect adoption were identified. Based on the case study findings, a framework for the development and implementation of e-business strategy in the Nigerian small business sector was developed and validated. This framework will be of value to small business owners involved in e-business operations, and also provides a basis for follow-up research in developing world countries.


2021 ◽  
Vol 13 (13) ◽  
pp. 7356
Author(s):  
Martin Wynn ◽  
Olakunle Olayinka

Since the turn of the century, there has been a growth in the use of e-business by both large and small companies worldwide, a trend that has been given further impetus by the move to online trading in the COVID-19 pandemic era. For small companies, there are the potential benefits of increased efficiencies and market share gain, associated with the re-engineering of selling and marketing processes; but in developing countries, such as Nigeria, research into how small businesses are using e-business systems and technologies is limited. This article builds upon earlier case study research in the Nigerian small business sector to develop a framework for e-business strategy development, implementation and review. Using an inductive approach, data was collected from six small businesses, using interviews and questionnaires, to profile the e-business operations of these companies. This study found that e-business strategy was generally lacking in these companies, but interview material was used to support the development and validation of the strategy framework, which provides a process and a checklist for small businesses pursuing e-business initiatives in developing world environments.


Author(s):  
Sam Lubbe

This chapter addresses the effective use of information technology (IT) in small businesses. Worldwide it is regarded as a problem as was illustrated in the literature review. Small business owners need to calculate and plan proper use of IT in their businesses by aligning their strategic IT planning to the business plan. A computing grid is proposed with a proper structure and guideline to help the owners


Author(s):  
Stephen Burgess ◽  
Carmine Carmine Sellitto ◽  
Stan Karanasios

Over the last decade there has been a great deal of research into the use of Information and Communication Technologies (ICTs) in small businesses. More recently, this research has centred on the use of Internet technologies in small businesses, particularly their use of Websites for the purposes of ‘e-business’ or ‘e-commerce’. Much of this research has examined the adoption of these technologies, including the drivers and barriers that small businesses face. Other studies have investigated models or frameworks that might help to guide small businesses to take full advantage of these technologies, particularly Websites for the purpose of conducting e-business. A great deal of this research has been admirable in that it has contributed to the body of work available in the area. Simultaneously, there has been a body of research that has focused on specific aspects of establishing a Website. These aspects can be technical in nature, addressing issues such as how to design a Website or how to identify hosting options, or business orientated, involving the identification of aspects of Website promotion and publishing. However, given the diversity of research being reported, we feel that there is a major gap in that small businesses are left without guidance in relation to how to approach all aspects of setting up and maintaining their Websites. The components are out there, but there is little available in relation to how a small business might access these, or even piece them all together. In fact, a little further on in this book we will suggest that these days, with the presence of many of Web services such as portals available, a small business Web presence may be even more than just a Website.


2020 ◽  
pp. 7-14
Author(s):  
Anastasia Balatska

The paper explored the main problems of small business in Ukraine, including: general state of Ukraine's economy, the problem of monopolization of business, low domestic. competition, the lack of sufficient start-up capital, financial capital, imperfect tax system, high levels of corruption, unstable business environment declarative form of state support and others. Determined that solving these problems of small business development in Ukraine should be one of the key areas of public policy, because small businesses will significantly improve the effectiveness of national economic potential, optimization of Ukraine's participation in international division of labor, strengthening the competitiveness of the national economy. The publication considers the essence and the objective necessity of the use of financial mechanisms for the development of small and medium business, discloses a scheme for the implementation of the financial mechanisms of development of small business through financial instruments. The research defines the problems and prospects of effective use of these financial mechanisms in Ukraine.


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