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Lesson 6

Lesson 6. E-STRATEGIES AND PLANS. What is a Small Business Entrepreneur?. Entrepreneur n. a business man or woman of positive disposition who attempts to make profit from opportunities by risk, initiative and guidance from 2-small-business.com. SESSION OBJECTIVES.

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Lesson 6

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  1. Lesson 6 E-STRATEGIES AND PLANS

  2. What is a Small Business Entrepreneur? • Entrepreneur n. a business man or woman of positive disposition who attempts to make profit from opportunities by risk, initiative and guidance from 2-small-business.com

  3. SESSION OBJECTIVES • MATCHING COMPETENCE TO OPPORTUNITY • RESOURCE BASED PLANNING MATRIX • COMPETENCE SELECTION • E-COMMERCE PLAN CONSTRUCTION

  4. DAY PROPOSED USING CAPABILITY AS SOURCE OF COMPETITIVE ADVANTAGE • MORGAN AND HUNT TABLED RESOURCE-ADVANTAGE THEORY OF COMPETITION • VARIATION IN COMPETENCE RESULTS IN DIFFERENT ROUTES TO COMPETING • DISTINCTIVENESS BASED ON HOW COMPETENCIES USED TO SUPPORT DIFFERENT POSITIONINGS

  5. FIGURE 6:1 A RESOURCE-BASED APPROACH TO E-COMMERCE PLANNING

  6. DIMENSIONS OF: • RELATIVE RESOURCE COSTS (COSTS LOWER OR HIGHER THAN COMPETITION) • PERCEIVED VALUE TO CUSTOMER • ASSESS FACTORS INFLUENCING CUSTOMER VALUE; EXAMPLES: • PRODUCT PERFORMANCE • RANGE OF BENEFITS • LEVEL OF SERVICE • PRICE • INFORMATION AVAILABILITY

  7. ASSESS FACTORS IMPACTING RELATIVE COSTS; EXAMPLES: • COST OF PRODUCTION • RAW MATERIALS • EMPLOYEE PRODUCTIVITY • DISTRIBUTION • FIXED ASSETS • RATE ON SIMPLE SCALE OF 1-10 • USE SCORES TO ENTER ON RESOURCE-ADVANTAGE PLANNING MATRIX (RAM) • GENERATES NINE ALTERNATIVE OPTIONS

  8. FIGURE 6:2 A RESOURCE-ADVANTAGE PLANNING MATRIX

  9. FIGURE 6:3 THE BRYMOR RAM ANALYSIS

  10. PORTER VALUE CHAIN SUGGESTS SOURCE OF 5 CORE PROCESSES: • INBOUND LOGISTICS • PROCESS OPERATIONS • OUTBOUND LOGISTICS • MARKETING • CUSTOMER SERVICE • AND / OR 4 SUPPORT COMPETENCIES OF: • MANAGEMENT CAPABILITY • HRM PRACTICES • TECHNOLOGY • PROCUREMENT

  11. FIGURE 6:4 A VALUE CHAIN MODEL

  12. E-PLAN STRUCTURE • SITUATION REVIEW • SWOT • KEY ISSUES • FUTURE OBJECTIVES • STRATEGY • MARKETING MIX • ACTION PLAN • FINANCIAL FORECAST • CONTROL SYSTEM • CONTINGENCY PLAN

  13. INTERNATIONAL IMPLICATIONS • WEB-SITE OFFERS GLOBAL REACH • ISSUE OF WHETHER FIRM CAN SERVICE OVERSEAS MARKETS • U.S. SITES OFTEN OFFER LOW PRICE GOODS • SAVINGS OFTEN DISAPPEAR UPON ADDING LOGISTIC COSTS AND DUTIES

  14. WEB-SITE USUALLY NEEDS OVERSEAS DISTRIBUTION OPERATIONS • FORRESTER RESEARCH ESTIMATE ONLY 10% OF COMPANIES ABLE TO SUPPORT INTERNATIONAL OPERATIONS • LESS OF PROBLEM IN B2B MARKETS BECAUSE HIGH VALUE OF INDIVIDUAL ORDERS

  15. Reasons to join2-small-business.com • To get FREE marketing content • To become an Entrepreneur • To get these benefits • To get discounts on our services • To get FREE software

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