Applying analytical tools in proper management in Ebusiness

Applying at least five analytical tools in proper management formulate a suitable E-business technique for the business. Your proposed strategy should be based on your analysis, and backed by evaluation of your suggested way, indicating its suitability for the organization, and also its relation to the business's business strategy.


The company because is basically an SBU of a larger organization, which contains five privately held companies. These businesses involve:

Specialist software and

Electronics design company

Precision mechanical executive Company

Defense and

Electronic systems making company

Some 150 years back, when this company was founded its main area of work was service and support. Because of some difficulties the original company was closed down in 1980 in support of this section was still left. This service and support section was then sold to the London structured company in 1990 and the dog owner relocated it to North East of Britain as per case study.

By 1995, this SBU merged many of its services and furthered its give attention to production of technological machinery and instrumentation. The General Manager of this company has a shiny vision on future, which he demonstrated by attempting his hand in creation of new and ground breaking products.

The marketing and pricing decision making environment of the business was mainly centralized but the General Manger also urged creativity by versatile working environment with in the business.

First of most let's see what strategy is and why it is important?

Basics of Strategy:

Strategy decisions are different from other decisions used for the business. They are recognized on three levels;

Scale: A strategic decision covers the complete circle. Strategy decisions are big decisions and concerns competitors, suppliers as well as customers.

Time-span: These decisions typically impact the medium term and long-term objectives of the company although there out come can be seen in short-term.

Dedication: This implies resources determination and investment that cannot be undone simply. This is done in the marketing of the company, operation changing etc. (Haberberg A. and Rieple, A. 2008)

A company's strategy identifies the when, how and why of its lifestyle and working. It in essence entails the initiatives that the business's management put in to attain its aims that concerns selection of type of clientele, market situation and market form, what competitive advantage to follow and how to perform effectively in long term with taking in to the its implications in short term. (Thompson, A. A. and Strickland, A. J. 2003)

Strategic Analysis

Strategic analysis is vital for just about any company, whether operating on small or large range. If a business has a vision for permanent life then it must follow the ground rules.

As taken from Business Dictionary, proper development can be an ongoing scheme of things done to really have the grip on the surroundings by obtaining the knowledge in which it is existing and put full concentrate on research and development process that also includes the business itself in-order to create a technique. (BNET Business Listing as cited in Downey, J. 2007)

Another view on strategic evaluation is of Teacher Les Worrall, he states that the business will need to have the theoretical knowledge of the environment where it is working and also how it is getting together with the surroundings in-order to get improved organizational success and efficiency so the resources can be astutely used and reused for the well-being of the business. (Worrall, L. as cited in Downey, J. 2007)

There is yet another viewpoint about tactical planning which is by Marhides and Williamson, They put emphasis on the fact that the organization have succeeded over a long term period of time are those who are into building their proper assets faster with low priced than their opponents. (Marhides, C. C. and Williamson, P. J. as cited in Thompson, A. A. and Strickland, A. J. 2003)

Although different ideologists have different view tips however the gist of the complete can be summarized into pursuing three items;

Collection of the data relevant to detection and analysis of the strategy modus operandi

Defining elements of the inner and exterior environment

Analytical methods which can be employed by the business for examination of the existing situation and future investigation

(Downey, J. 2007)

Analytical Tools

Now let's go through the tools used for the analytical examination of the business's environment and the environment it is interacting with;

SWOT Analysis

PEST Analysis

Porter's five causes analysis

Value string Analysis

Early warning

By making use of these tools to case study, we will be able to find the clearer picture of the situation and then will be able to suggest different strategies for the business's global and local lifetime.


There are number considerations to be acknowledged when using analytical tools for the business's analysis;

Tool must be productive enough to answer what the organization desires

The tool must be deployable and workable the expected benefits from the tool must be recognizable.

Its setting must be such that folks must first be prepared of the tool working so that there are hindrances in the working.

There should be commitment on the mature management part so the effect and formulation can be effective.

Right use of the analytical tool will ensure the balanced and detail by detail approach.

(Downey, J. 2007)

1. SWOT Examination:

Let's go through the SWOT analysis and its own working and then its software on the case study.

SWOT evaluation is a powerful tool that really helps to understand the advantages, weaknesses, dangers and opportunities for a corporation that many be engaged in the task or business activity. (Downey, J. 2007)

The objective of the environmental evaluation or SWOT research is to provide the company with the judgments that are structured and by means of a process. The power and weaknesses of the business are controllable factors and internal to the business and Opportunities and risks make the outer environment of the company and are uncontrollable. (Webster, M. 2010)


The overall methods of the company are business motivated and towards improvement.

Service and support is offered through out the world

Ability to provide the processing facilities for the full selection of spares requirements of existing instruments

Large stock providing all the parts needed by the customers

In-house training for the customers in all respects of machinery and instrumentation use.

They even accommodate the clients with budgetary constraints by tailor making the product/equipment needed.


Company is ready to produce new innovative products in the near future.

Setting up of the new companies worldwide.

The company has good working relationship with sector manufacturers and builders thus enabling them to make tactical alliances with them.


Cost-plus pricing strategy with minimal income.

Centralized decision system


Technological progress.

Low capital investment which in-turn account for budgetary constraints.

Much of the company's revenue is produced by the from service deals on the bottom of the core product designed fifteen years back. Most of the accessories are obsolete.

No e-business facilities as a result available.

2. PEST Analysis:

PEST Analysis fundamentally shows the evaluation of the environment where the company exists and which have an impact on it greatly. It really is worried about the external environment. It's important since it views the political, economic, social and technological aspects of the surroundings.

(Kwame H. A. 2009)

This evaluation shows how market is declining or growing in the desired sector.

It translates the potential for the business, the problem of the business as in accordance with the competition and where direction the business should expand.

(Downey, J. 2007)

Let's apply the analysis on the research study;

Political Factors:

This includes authorities rules such as laws and regulations on employment and tax composition. Most important factor is the political stability.

In this research study if the business wants to start its e-business then it must concentrate on the policies settled by the united states on the e-business. Like if its following employment regulations or not like proper human resource department etc.

Economic Causes;

These are the forces which affect the purchasing vitality of the company and cost employing the capital.

In this research study the company must face the inflation and interest when it will try to grow its functions and also try to produce the gear by employing the state-of-the-art technology.

As, the business is keen on creativity and producing the products that will assist them to get the competitive benefit it needs to consider the price tag on the capital that will be used.

Social Factors:

Social factors include the market size and personal preferences of the consumers. Out of this perspective the company has an benefit of satisfying the client needs. It is building relationships with the customer by even seeking to educate these to the use of its products.

They want to gratify there customers and heading to the length of sacrificing there own profit margins.

Other factors that company will be facing in the near future would be the health issues related to their products, population growth etc.

Technological Pushes:

This is very important for the business as it implies that whether the company is using the state-of-the-art technology or not.

In the truth the company at present is using its basic product for almost all of the business technology which is fifteen years old and the accessories with it are obsolete. It requires to check out the new fads in the technology that the opponents are utilizing.

Although, the business has applied new applications for the responses and inquiry for the customers on their website but nonetheless it requires more facilities.

3. Porter's five causes analysis:

This analysis was developed by Michael E. Porter in 1979. This was designed to assess the competitive vitality of the company and situation of the business organization in the market.

When an organization decides to expand then by applying the porter's five force model it'll be in a position to know whether to develop the services or not or the move will be profitable or not.

(Wikipedia, 2011)

Let's discuss the factors with regards to the research study;

Supplier power

It includes the amount of suppliers present and cost of moving over in one to other. Also, the uniqueness of the merchandise and the value of the supplier can affect the business.

As the business has good working relations with the manufacturers and creators they want to construct positive alliances with them.

Buyer Vitality:

Buyer effect on the products costing is vital.

It depends after the market size, need for the individual buyer and also cost of switching from one distributor to the other for the buyer.

As the business is providing the full range of services and parts and spare to the customers and also trained in the use of the products, the clients are satisfied for now. But in-order to make a long term marriage the company needs to work on progressive products by using new technology.

Competitive Rivalry:

Now the competitive makes are also very important as they describe the market attractiveness. If there are extensive competitors who are offering the similar products they'll put impact on your competition because the market will e divided.

They have a competitive advantages because they are the sole service provider of the services, parts, accessories, enhancements and instruments for the business who primarily sold the business.

Threat of Substitution:

In circumstance if the substitutes can be purchased in the market then there is always a threat of customers switching to the new venues. If the merchandise of the rivals will be low priced and better then of course the customer will try to switch.

Threat of New entry:

If the marketplace is booming it'll attract new entrants. New entrants signify division of the revenue that may have an effect on the company very badly.

4. Value Chain analysis:

Activities with in the business add value to the merchandise. So, it is vital to understand the way the organizations create value for the customers. It is always profitable over time to conduct value chain examination.

(Downey, J. 2007)




Primary manufacturing



Typical value chain for a made product

(Wheelen T. L. and Appetite, D. J. 2010)

It works on the theory that sole mission for the lifestyle of the organizations is to make value for the customers.

First of all behavior of the business is divided into sets of activities and activities that add value. Hence, it is, important for the business to internal features by figuring out each activity.

This involves three steps:

Separate the company's process into key and support activities;

In this research study, the company's bottom part product was developed some fifteen years back. The assistance and accessories are provided with it to the customers.

The company is even educating the clients on the utilization of its products.

It's after sales and updates service is also productive.

Cost distribution to the activities thus performed;

A very important step as it provides the required understanding into the capabilities of the business.

The company in the event study is operating on the cost-plus system. That is a versatile system where in fact the margins can be reduced to accommodate the customers. (Downey, J. 2007)

Identification of the actions closer to the customer satisfaction and market success;

It is dependant on three points;

Company quest and vision

Now company's objective statement can be an important document as provides the company with the road way to follow.

Company will take those actions and will get involved in those activities that happen to be directly related to the mission statement of the company.

As, the company in the case study is widening its eye-sight by getting involve into creation of the progressive products as well by employing new technology for taking the business on new heights.

Industry Type

Nature of the industry is vital.

Value System:

Value system includes the partnerships with upstream and downstream people of the string, who supply the product to the finish user.

In the case study the General manger has retained affiliations and alliances with the companions and also focusing on the future good relations. The company is strengthening its value chain.

(Downey, J. 2007)

5. Early warning systems:

This is another important analytical tool for the company's strategies. Its importance lies in the fact which it can be used to predict the events as soon as possible. It is mostly used to discover the early strike from the competitor or some business situation becoming certainty. (Downey, J. 2007)

It has seven components;

Market classification

Open Systems


Prognostic astuteness

Communicating expertise

Eventuality forecast

Recurring practice

(Downey, J. 2007)

All of these points supply the emphasis on the company's intelligence to pick the info about the industry, competition, opportunities and risks awaiting them. More over it also contains the contingency ideas designed to save the situation and making sure that the right people receive the right data for decision making with proper key indicators.

This can be an ongoing system must never stop as it can help in the wellbeing of the business.

Conclusion and Advice:

E-commerce approaches for the future in view of the analytical tools:

It is a common truth now that the internet is becoming the essential part and reality of the each day business and personal life of the consumers as well. All of the companies are now forced to include the opportunities provided by the internet to get competitive benefits.

It is therefore valuable to know very well what kind of business strategies can be affective while doing business in this time of information technology.

It is another concern to see whether the offline companies are essential then your click model or the blend of the two will work better.

(Thompson, A. A. and Strickland, A. J. 2003)

According to the case study the business is keen on getting into E-business area as well. It has hired a fresh IT Director for the business, who's MSc. in e-business and has twenty years of experience and incredibly well versed in all aspects of ICT.

As the corporation already prevails as Brick and Mortar Company the strategy well suited for it's the "Brick and Click" which can be an appealing middle floor.

Let's see how this strategy works for our company;

These combo strategies gives the customers choice for buying either online or stores. It is in-fact an important way to contend on the market.

The simply online companies can be competed with a local office and online existence at the same time because customers feel safe when they know that the company has a local life as well.

Also, online rivals dropped short when the customers want to touch and feel the merchandise first before buying.

The traditional business can enter in the e-world at relatively low cost by establishing the web-store and systems for filling up and delivering individual customer requests.

Firstly, the brick and click companies have an additional advantage of expending their global life and giving the customers (probable or existing) another option of getting together with the business through Site.

Secondly, the brick and click companies can use the same syndication systems for delivering the requests by picking the orders from the on-hand inventories and making deliveries.

(Thompson, A. A. and Strickland, A. J. 2003)

These strategies are incredibly effective as customers prefer the order on online system compared waiting for the phone in line or sales representatives to contact.

Same applies to the business under talk. Also, it has the facility of Stock control system and coordinator of other applications on the local area network and the e-mail and other facilities on the vast area network.

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