E Business Planning, Strategy & Management part 1

Summary

This video lecture covers the concept of strategy in business, emphasizing its importance for achieving competitive advantage. It is divided into three parts, discussing strategy levels, e-business planning approaches, and the strategic planning process. The lecture highlights the necessity of a clear strategy for avoiding common business pitfalls and the significance of mission, vision, and objectives in guiding corporate direction and e-business transformation.

Takeaways

• 📘 Strategy is the long-term direction and scope of an organization to achieve competitive advantage through resource configurations in a changing environment.
• 📈 Strategy includes a proposal, plan, and action plan, with actions being the detailed execution steps.
• 🏢 Different levels of strategy exist within a business: corporate, business unit, operational, and functional.
• 🚫 Unclear strategy can lead to missed opportunities, inappropriate direction, limited integration, and resource wastage.
• 💡 E-business planning is integral to strategic planning, focusing on optimal business infrastructure and transformation.
• 🔍 E-business planning typically starts with analysis, using approaches like target-driven, resource-driven, and implementation-driven.
• 🛠️ Tools such as SWOT analysis, CSF, five forces model, and customer lifecycle can be used to establish a business vision.
• 🌐 A clear vision is essential for aligning e-business with strategic initiatives, business alignment, and market positioning.
• 🔑 Mission statements define the purpose and broad aims of an organization, while vision statements express aspirations for the future.
• 🎯 Objectives should be SMART (Specific, Measurable, Actionable, Relevant, Time-bound) to effectively link strategy, process, and performance.

Q & A

What is the main focus of the lecture?

The lecture primarily focuses on the concept of strategy within business organizations, its components, and the process of e-business planning.

What are the three parts of the lecture?

The lecture is divided into three parts: discussing strategy, explaining different levels of strategy, and detailing the e-business planning process.

What is the definition of strategy as mentioned in the lecture?

Strategy is defined as the direction and scope of an organization over the long-term, which is aimed at achieving competitive advantage through the configuration of resources within a changing environment to meet market needs and stakeholder expectations.

What are the different levels of strategy discussed in the lecture?

The different levels of strategy discussed are corporate strategy, business unit strategy, operational strategy, and functional strategy.

What are the potential problems caused by an unclear strategy?

An unclear strategy can lead to missed opportunities, inappropriate direction, limited integration leading to silos, and resource wastage through duplication and lack of best practice sharing.

What is the objective of e-business planning?

The objective of e-business planning is to develop an e-business strategy that is part of the overall corporate strategy, focusing on optimal business infrastructures and engaging in their transformation.

What are the three approaches to e-business planning mentioned in the lecture?

The three approaches to e-business planning are target-driven, resource-driven, and implementation-driven.

What tools can be used to establish a vision for a business?

Tools such as SWOT analysis, critical success factors, five forces model, customer lifecycle, and value chain analysis can be used to establish a business vision.

What is the significance of a mission statement in an organization?

A mission statement communicates the overriding purpose of the organization and defines the scope and broad aims of its digital channels, explaining how they will contribute to the organization and support customer interactions.

What does SMART stand for in the context of setting objectives?

SMART stands for Specific, Measurable, Actionable, Relevant, and Time-related, which are the criteria that business objectives should meet to be effective.

How are vision, mission, and objectives related?

Vision, mission, and objectives are related as they collectively guide an organization's strategic direction. The vision describes the desired future state, the mission defines the purpose and scope, and objectives are the specific, measurable goals to achieve that mission.

Outlines

00:00

📘 Introduction to Strategy and Business Planning

The video begins by introducing the concept of strategy as a long-term plan for business organizations to achieve competitive advantage by configuring resources within a changing environment. It explains the difference between strategy, plan, and action, emphasizing the importance of achieving an expected future state. The lecture is divided into three parts, covering various levels of strategy such as corporate, business unit, and functional strategies. The video also discusses the potential problems caused by unclear strategies, such as missed opportunities, inappropriate direction, limited integration, and resource wastage. It introduces e-business planning as part of strategic planning, with different approaches like target-driven, resource-driven, and implementation-driven. The process of e-business planning is outlined, including setting up a planning unit, assessing current infrastructure, establishing a vision, and specifying a business strategy.

05:00

📗 Developing Strategy from Mission and Vision

This section delves into the development of strategy from mission and vision statements. It explains the process of SWOT analysis to identify internal strengths and weaknesses, as well as external opportunities and threats. The video then discusses how to analyze key strategy issues, choose strategic options, and implement strategies with organizational learning, culture, structure, and change management. The importance of having a clear vision and mission for an organization is highlighted, with examples from companies like Amazon, eBay, and Google. The video also covers the process of setting objectives, which should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound), and the use of objectives, processes, and key performance indicators (KPIs) to measure strategy effectiveness.

10:01

📙 Conclusion and Key Takeaways

The video concludes by posing questions to the viewer about the concepts of vision, mission, and objectives, and how they relate to each other. It also asks about approaches to e-business planning and the meaning of SMART in the context of setting objectives. The presenter encourages viewers to subscribe and look forward to the next lecture, summarizing the key points covered in the video and reinforcing the importance of understanding these strategic concepts for effective business planning and execution.

Keywords

💡Strategy

Strategy refers to the long-term direction and scope of an organization. It is the plan and action to achieve competitive advantage within a changing environment to meet market needs and stakeholder expectations. In the video, strategy encompasses the proposal, plan, and action plan, which are necessary for businesses to achieve their goals, such as increasing market share or improving customer satisfaction.

💡Competitive Advantage

Competitive advantage is the attribute that allows a business to outperform its competitors. It can stem from various factors such as unique products, lower costs, or better service. The video discusses how strategic planning helps businesses achieve this advantage by effectively configuring resources.

💡Corporate Strategy

Corporate strategy is concerned with the overall purpose and scope of an organization. It defines the organization's goals and the actions needed to achieve them. The video mentions that corporate strategy is one of the different levels of strategy within a business, which also includes business unit strategy and functional strategy.

💡Business Unit Strategy

Business unit strategy defines how a business will compete successfully in a particular market. It is a subset of corporate strategy and focuses on the specific tactics used to gain an edge in a certain market segment. The video script discusses how this strategy is integral to achieving the overall corporate objectives.

💡Functional Strategy

Functional strategy describes how corporate and business unit strategies will be operationalized in different functional areas such as marketing, human resources, and finance. The video script uses functional strategy as an example of how strategic planning is implemented at the operational level within a company.

💡E-Business Planning

E-business planning is the process of deciding upon the optimal business infrastructures and engaging with the transformation of one e-business infrastructure into another. The video script emphasizes that e-business planning is a crucial part of strategic planning, focusing on developing an e-business strategy that aligns with the overall corporate strategy.

💡Mission Statement

A mission statement is a declaration that communicates the organization's core purpose, values, and goals. It provides a clear understanding of what the organization aims to achieve and why it exists. The video script provides examples of mission statements from companies like Amazon and eBay, highlighting their focus on customer-centricity and trust.

💡Vision Statement

A vision statement is a forward-looking statement that outlines what an organization aims to achieve in the future. It reflects the aspirations and desired future state of the organization. The video script discusses how a clear vision statement can guide the development of e-business and strategic initiatives within an organization.

💡SMART Objectives

SMART is an acronym for Specific, Measurable, Achievable, Relevant, and Time-bound. It is a framework used to set effective objectives. The video script explains that SMART objectives should be clearly defined, measurable, actionable, relevant, and time-related to ensure they drive performance and align with strategic goals.

💡SWOT Analysis

SWOT analysis is a strategic planning method used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats. The video script mentions SWOT analysis as a tool to help businesses identify key strategic issues and choose strategic options for implementation.

💡Key Performance Indicators (KPIs)

KPIs are quantifiable measurements used to track the success of an organization in achieving its objectives. They help monitor and evaluate the effectiveness of strategies and actions. The video script discusses KPIs in the context of e-business planning, emphasizing their importance in measuring the performance of strategic initiatives.

Highlights

The lecture is divided into three parts, covering strategy, e-business planning, and strategic planning.

Strategy involves the direction and scope of an organization to achieve long-term goals.

Competitive advantage is a key objective of business strategy.

Strategy includes proposing, planning, and action plans to achieve goals.

There are different levels of strategy: corporate, business unit, operational, and functional.

Clear strategy is essential for businesses to avoid problems such as missed opportunities and resource wastage.

E-business planning is part of strategic planning and involves deciding on optimal business infrastructure.

E-business planning starts with analysis and can be target-driven, resource-driven, or implementation-driven.

Tools like CSF, five forces model, and value chain analysis can be used in e-business planning.

Strategy formulation involves creating mission, vision, and objectives.

A mission statement communicates the purpose of an organization.

A vision statement expresses the future aspirations of an organization.

Objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.

SWOT analysis is used to identify key strategic issues.

Implementation strategy involves organizational learning, culture, and change management.

Evaluating strategy involves comparing actual performance against set targets.

Examples of vision and mission statements from companies like Amazon, eBay, and Google are provided.

The lecture concludes with questions to test understanding of vision, mission, objectives, and e-business planning approaches.

SMART criteria for setting effective strategy and objectives are explained.

Transcripts

Alum thank you for watching this video

lectures I'll try to make this video

simple and relatively small in size the

lecture is divided into three parts

please watch all parts to learn more

about the topics discussed in this

lecture please read the relevant

chapters of the textbooks the first part

mainly discuss

strategy strategy is the directions and

scope of anization of the long term for

business organizations is to achieve

competitive advantage through the

configurations of resources within a

changing environment to meet the needs

of markets and the PO build STI holder

expectations strategies covers propose

plan and action plan covers steps how to

chip to post while actions are the

details how to execute the steps

this figure is a simple representative

of strategy you have a current state and

the expected future state so the purpose

is to achieve the expected future state

for most of business to achieve

competitive Advantage but it is not

necessary competitive Advantage it can

also like to achieve a particular

objective increase market share for 10%

simples the line represents the plan and

related actions on how to achieve the

expected

PC in businesses there are different

levels of strategy corporate strategy

business unit strategy coration

strategies and functional strategy

corporate strategies concerned with the

opall purpose and scope of the

organization business unit strategy

defines how to compete successfully in a

particular Market operational strategy

concerned with achieving corporate and

business unit strategy functional

strategy describe how Corporate and

business unit strategy will be

operationalized in different functional

areas such as marketing HR and so

on a business must have a clear strategy

no ambiguity unclear strategy including

a bus strategy will create many problems

some of the problem listed here first

Miss opportunity from lack of evaluation

of opportunities or insufficient

resourcing of a business initiatives

second in appropriate directions of a

business strategy toly Define objectives

for example with the wrong emphasis on

buy site sell site or internal process

for the third limited integration of

business at a technical level resulting

in Silo instead of integrated approach

it will be split into silos not

connected the fourth resource wastage

through duplication of a business

development in different function and

limited Shing sharing of best

practice e business planning must be

part of strategic planning e business

planning is the process of deciding upon

the optimal business infrastructures and

of engaging with the transformation of

one e business infrastructure into

another the objective of e business

planning is to develop e business

strategy which is must be part of the

overall corporate strategies e business

planning is normally started with an

analysis in general there are three

approaches to e business planning Target

driven resource driven and

implementation driven Target driven is a

top- down approach strategy is directed

to achieve targets or goals while

resource driven is the other way around

it's bom up strategy strategy begins

with available resources implementation

driven is Middle out driven approach

means and ends are continually assessed

and adjusted over time in the shipping

of

[Music]

activities these are steps in E business

planning process first is setting up

planning unit and approach for Effective

planning a dedicated unit need to be

formed and an approach need to be

decided then the next is assessment of

current e business infrastructures both

human activities and technological

infrastructures need to be ass assess

current performance is compared with the

set objectives and then establishing a

vision for a business assessing

competitive advantage that information

system May deliver there are few tools

we can use to do this such as uh CS app

critical success factors five process

model customer life cycle value chain

lvp some of this tool we will learn it

later and finally we can specify a

business strategy

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this diagram give you an ideas about

prolation of strategy from mission

statement and vision statement normally

we do this SW analysis in SW analysis we

can into internal strength and weakness

and then external analysis is

opportunity thread from there we can

identify and analyze key strategy issues

and move on to identify and choose

strategic option and the implementation

strategy you can have this organization

learning organizational culture organ

structures change management to do that

then the next evaluation strategy

evaluate actual performance of the

strategy against the set of tget the

feedback we can use to evaluate the

sword

analysis the first part of a strategy

involves creating missions vision and

objectives a mission statement is a

statement that communicates the

overriding purpose of the organizations

and a provision statement is a statement

to express what the organization is all

about and where it wants to be in the

future describe aspiration an objective

statement is a statement used to

communicate the specific outcomes that

need to be

achieved corporate vision is a mental

image of the possible and desirable

future state of the organization a clear

resion provide a summary of the

development of purpose and strategy of

the organization defining specific

company vision for a business is helpful

since it contact asize e business in

relation to the company's strategic

initiatives business alignment and in

Marketplace it also helps give a

long-term emphasis on E business

transformation initiatives within

organizations the visions of an

organization will be determined by how

Executives and managers view the futures

of the industry how the E business

indust evolves may be View inm of Market

dominations of few globally recognized

brand the rate of growth in demand for

online products the emerence of a

dominant Marketplace for E business the

impact of increasing regulation in the

online industry the change in the

technological environment New

Opportunities and threats in the E

business environment the visions of an e

business must reflect the ability of

manager to position the organization to

exploit opportunity in the market

Marketplace a mission statement for E

business is concise summary defining the

scope and Broad aims of digital channels

in the Futures explaining how they will

contribute to the organization and

support customers and interaction with

Partners developing a mission statements

should provide definition of business

scope this is about Market including

products customer assments and

Geographic where the company wants to

compete online unique competencies high

level view of how the company will

position and differenciate it life in

term of e business products or Services

value expressing wise less commonly

include in the statement this is an

emotional elements of the mission

statement which can indicate what

inspires the organization or is a

business

initiatives the these are some examples

of vision or mission statements Amazon

com our vision is to be Earth's most

customer Centric company build a place

where people can come to find and

discover anything they might want to buy

online D they listen to customers and

deliver Innovative technology and

service the trust and values eBay eBay

Pioneers Community built on e-commerce

sustained by trust and inspired by

opportunity eBay brings together

millions of people every day on a local

national International basis through an

array of websites that focus on Commerce

payment and communication Google Google

missions is to organize the world

information and make it universally

accessible and

useful objective setting effective

strategy link objectives process and

performance we normally use a table to

do this a business objective should be

smart and include both efficiencies and

Effectiveness measures smart refer to S

as a specific is the objective specially

detailed to measure real world problems

and opportunity and more measurable can

a quantitative or qualitative attribute

be applied to create a metric a is

actionable can the information be used

to improve performance if the objective

doesn't change behavior in stop to help

them improve performance there is a

little point in it are relevant can the

information be applied to the specific

problem faced by the manager de or time

related does the measures or goals

relate to a defant

brain this table show you examples of

objective process and kpi objective is

there strategy to achieve goals is a

process basically and kpi key

performance indicators sometimes all

critical success Vector read carefully

learn from this it will be useful for

[Music]

you we are reaching toward the end of

this video lectures here are some

questions for you what are vision

mission and objective how do they relate

what are the approach to e business

planning what is Smart stand for this

subcribe each of them thank you very

much for watching this video lectures

see you in the next month