Unit 7 Business Strategy

Assignment Brief
BTEC Level 4-5 HNC/HND Diploma (QCF)
To be filled by the Student
Name of the Student : M. FAHAD RAHIM
Edexcel No JD63261: Registration No: COL/E-001780 Batch No:46
Unit Assessment Information
Qualification : Higher National Diploma in Business Management
Unit Code & Title : Unit 7 Business Strategy
Assessment Title & No’s : Business Strategy (Assignment 1 of 1)
Learning outcomes and grading opportunities:
LO 01: Understand the process of strategic planning
Learning Outcomes AC1.1 AC1.2 AC1.3
LO 02: Be able to formulate a new strategy
Learning Outcomes AC2.1 AC2.2 AC2.3 AC2.4
LO 03: Understand approaches to strategy evaluation
Learning Outcomes AC3.1 AC3.2
LO 04: Understand how to implement a chosen strategy
Learning Outcomes AC4.1 AC4.2 AC4.3
Merit and Distinction Descriptor
M1.1 M2.4 M3.4 D1.1 D2.2 D3.4
Assessor : Date Assessed:
Internal Verifier (IV): Date of IV:
Date Issued : 12/29/16 Date Due : 30/04/2017
Date of Submission: 20/05/2017

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Student’s Signature: …(FAHAD RAHIM)…… Date:.…20/05/2017……
Assignment Feedback
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Formative Feedback: Assessor to Student
Action Plan
Summative feedback
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Feedback: Student to Assessor
Assessor signature Date
Student signature FAHAD RAHIM Date
Business Strategy Case Study
Making eBay work
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Source (An article of Jill Shepherd, Segal Graduate School of Business and Simon Fraser,
University of Canada)
(http://www.ebay.com/)
In 2013, there were more than 250 million eBayers worldwide. For around 1million people, eBay
was their primary source of income. A survivor of the dot.com bust of the late 1990’s, eBay
represents a new business model courtesy of the internet.
eBay’s Business Model
Value in eBay is created by providing a virtual worldwide market for buyers and sellers and
collecting a tax on transactions as they happen. The business model eBay relies on its customers
being the organization’s product development team, sales and marketing force, merchandising
department and the security department.
According to eBay managers, of key importance is listening to customers: keeping up with what
they want to sell, buy and how they want to do it. If customers speak, eBay listens. Technology
allows every move of every potential customer to be traced, yielding rich information.
Conventional companies might spend big money on getting to know their customers and
persuading them to provide feedback. For eBay such feedback is often free and offered without
the need for enticement.
eBay organizes voice of the customer groups which involve flying in a new group of about 10
sellers and buyers from around the country to its offices every few months to discuss the
company in depth. Teleconferences are held for new features and policies, however small a
change they involve.
Even workshops and classes are held to teach people how to make the most of the site.
Participants tend to double their sales after that. Others run their own websites to offering
advices on how to sell on eBay.
The company is governed from both outside and within. The eBay system has a source of
automatic control in the form of buyers and sellers rating each other on each transaction, creating
rules and norms. Both buyers and sellers build up reputation which are valuable, in return
encouraging further good behavior in themselves and others. Sales of illegal products are dealt
with by withdrawing what is on sale and invariably banning the seller.
eBay’s Management
Meg Whiteman’s, the CEO and president since 1998, style of management and past have heavily
influenced the management of eBay. With Meg’s experience as an ex- consultant, many major
roles in the senior managements including the head of the US business, head of international
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operations and vice president of consumer marketing in Proctor and Gamble, the eBay turned out
their operations in to data and metric driven. According to Meg, a business should be measured
unless you cannot control it.
Unlike a FMCG company, category managers in eBay can only indirectly control their products.
They have no stock to reorder once levels of goods run low. They provide tools to buy and sell
more effectively. Those will be different marketing and merchandising schemes such as
enhancing the presentation of their users’ products and giving them tools to buy and sell better.
Over and above this unusual existence, the work environment can be tough and ultra-
competitive, say ex eBayers. Changes often come only after PowerPoint slides are exchanged
and refined at a low level, eventually presented at a senior level and after the change has been
approved in a sign-off procedure which includes every department.
In time eBay has upgraded its ability to ensure the technology does not rule. Until the late 1990s,
the site was plagued with outages, including one in 1999 which shut the site down for 22 hours
courtesy of software problems and no backup systems.
Former Gateway Inc. Chief Information Officer Maynard Webb, who joined as president of
eBay’s technology unit, quickly took action to upgrade the systems and it is being continuously
upgraded.
In 2005, Chris Corrida was appointed Senior Vice President and Chief Technology Officer. He is
one of the leading technology platform experts in the corporate world.
After noticing a few car sales, eBay created a separate site called eBay motors in 1999, with
special features such as vehicle inspections and shipping. Some four years later, eBay expects to
gross some $1 billion worth of auto parts, many of which are sold by professional dealers.
Competition and Cooperation
As the internet, has become a more competitive arena eBay has not stood still. In 2005, it bought
Skype, the internet telephony organization surrounded by much debate in the press as the logic of
the $2.6 billion deal. With Skype, eBay argues it can create an unparalleled e-commerce engine
pointing to the 2002 purchase of online payment system PayPal, which spurred on the business at
that time.
In 2006, it also announced a deal with Google. eBay is one of Google’s biggest advert
customers. This deal was after eBay signed an advertising deal with Yahoo, which made some
think eBay was teaming up with Yahoo! against Google’s dominance. But in the interconnected
world, competition and cooperation is a new game.
eBay also formed a partnership between BaiduInc, a Chinese web portal bought by eBay in 2002
and eBay Eachnet. Baidu promotes PayPal Beibao as the preferred payment method on Baidu
whilst Eachnet uses Baidu as its exclusive search provider. The development of a co-branded
toolbar is set to cement the partnership. The West Yahoo! And eBay are partnering against
Google, but the East Yahoo! Is a rival.
Despite eBay being the internet auction phenomenon, it does not do as well in the East as the
West. It pulled out of Japan, is suffering in Taiwan and lags behind a rival in China. In Korea,
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GMarket, partly owned by Yahoo! Is more or less equal in size to eBay’s internet Auction.
GMarket offers less emphasis on open auctions than eBay, although eBay now does have eBay
Express where new products from multiple sellers can be purchased in one transaction backed as
ever by customer support including live chat.
Innovative marketing that makes the experience fun for shoppers and help sellers improve their
performance is perhaps another way GMarket differentiates itself from eBay. GMarket has itself
attracted imitators.
In 2006, eBay created eBayWiki hosted by Jotsppot, along with eBay blogs. Alibaba.com is one
of the e-commerce giants in China and this has been a very tough rivalry to eBay. Recently they
are going to launch a new American shopping website to rival to eBay. Alibaba operates China's
most popular online shopping platform, Taobao, which is estimated to hold more than 90 percent
of the online market for consumer-to-consumer transactions.
Task 01 (Covers LO 01 and AC 1.1, 1.2, 1.3)
1.1 Assess how business missions, visions, objectives, goals and core competencies of eBay
explain its strategic planning process. (AC 1.1)
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1.2 According to the given scenario analyze the factors that have to be considered when
formulating strategic plans by eBay (AC 1.2)
1.3 Critically evaluate the effectiveness of techniques that can be used when developing
strategic business plans by eBay mentioned in task 1.2 (AC 1.3)
Learners are encouraged to concentrate on D2.2 in order to achieve distinction grade
descriptors when addressing the above tasks.
Task 02 (Covers LO 02 and AC 2.1, 2.2, 2.3)
2.1 Analyze the strategic positioning of eBay by carrying out an organizational audit using
benchmarking, SWOT analysis and value chain analysis. Do an analysis for Demographic and
cultural influences eBay finds in East (AC 2.1)
2.2 Carry out an environmental audit for eBay with use of appropriate theoretical frameworks to
understand how it influence the organizational activities (AC 2.2)
2.3 According to the given scenario assess the significance of stakeholder analysis for the
formulated strategies by eBay using stakeholder mapping and stakeholder significance grid (AC
2.3)
2.4 According to the given scenario, alibaba.com is putting an intense pressure on eBaye
specially in the East. Present a new strategy for eBay to capture the market in China (AC 2.4)
Learners are encouraged to concentrate on M 1.1 and D1.1 in order to achieve distinction
and merit grade descriptors when addressing the above tasks
Task 03 (Covers LO 03 and AC 3.1, 3.2)
3.1 Analyze the appropriateness of alternative strategies relating to market entry, substantive
growth, limited growth or retrenchment for eBay (AC 3.1)
3.2 Justify the selected strategy for eBay (AC 3.2)
Learners are encouraged to concentrate on M 2.4 and D3.3 in order to achieve distinction
and merit grade descriptors when addressing the above tasks
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Task 04 (Covers LO 04 and AC 4.1, 4.2, 4.3)
4.1 According to the given case assess the roles responsibilities of personnel who are in charge
with strategy implementation in eBay (AC 4.1)
4.2 Analyze the estimated resource requirements for implementing the new strategy identified in
task 3.1 for eBay (AC 4.2)
4.3 Evaluate the contribution of SMART targets to the achievement of strategy implementation
in eBay with appropriate research (AC 4.3)
Learners are encouraged to concentrate on M 3.4 in order to achieve merit grade
descriptors when addressing the above tasks
Assessment Criteria - Pass
Outcome/ Criteria Evidence Achieved Feedback
1.Understand the process of strategic planning
1.1 Assess how business
missions, visions,
objectives, goals and core
competencies
inform strategic planning
Assess the vision, mission,
objectives goals and core
competencies of eBay and
explain their strategic
planning process
1.2 Analyze the factors that
have to be considered
when formulating strategic
plans
Analyze the factors that have
to be considered when
formulating strategic plans
by eBay
Planning systems and
issues..
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1.3 Evaluate the
effectiveness of techniques
used
when developing, strategic
business plans
Critically evaluate the
effectiveness of techniques
that can be used when
developing strategic business
plans by eBay mentioned in
task 1.2
2. Be able to formulate a new strategy
2.1 Analyze the strategic
positioning of a given
organization by carrying out
an organizational audit
Analyze the strategic
positioning of eBay using
SWOT, Benchmarking and
Value Chain analysis. Do a
external audit for East using
demographic and cultural
influences
2.2 Carry out an
environmental audit for a
given organization
Carry out an environmental
audit for eBay
Using PESTEL and Porter’s
five forces analysis
2.3 Assess the significance
of stakeholder analysis
when formulating new
strategy
Assess the significance of
stakeholders using
stakeholder grid and
mapping
2.4 Present a new strategy
for a given organization
Present a new strategy for
eBay to overcome the rivalry
of alibaba.com
3. Understand approaches to strategy evaluation
3.1 Analyze the
appropriateness of
alternative strategies relating
to market entry, substantive
growth, limited growth or
retrenchment for a given
organization
Analyze the appropriateness
of alternative strategies
relating to market entry,
substantive growth, limited
growth or retrenchment for
eBay
3.2 Justify the selection of a
strategy
Justify the selected strategy
for eBay
4. Understand how to implement a chosen strategy.
4.1 Assess the roles and
responsibilities of personnel
Assess the roles
responsibilities of personnel
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who are charged with
strategy implementation
who are charged with
strategy implementation in
eBay
4.2 Analyze the estimated
resource requirements for
implementing a new
strategy for a given
organization
Analyze the estimated
resource requirements for
implementing the new
strategy identified in task 3.1
4.3 Evaluate the
contribution of SMART
targets to the achievement of
strategy implementation in a
given organization.
Evaluate the contribution of
SMART targets to the
achievement of strategy
implementation in eBay with
appropriate research
Assessment Criteria - Merit
Grade Description
(Merit)
Possible evidence Achieve
d
Feedback
M1. Identify and apply
strategies to find
appropriate solutions.
M1.1- Effective judgments have
been made
M2.Select/design and
apply appropriate
methods/techniques.
M2.4- The selection of methods
and techniques/sources has been
justified
M3. Present and
communicate appropriate
M3.4- Communication has taken
place in familiar and
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findings. unfamiliar contexts
Assessment Criteria - Distinction
Grade Description
(Distinction)
Possible evidence Achieve
d
Feedback
D1. Use critical
applications to evaluate
own work and justify
valid conclusions.
D1.1-Use critical reflection to evaluate
and justify in developing a
marketing strategy for the
product
D2. Take responsibility
for managing and
organizing activities.
D2.2- Sufficient investigation have
been planned, managed and
organized in the presentation as a
young marketer
D3. Demonstrate
convergent/lateral/creativ
e thinking.
D3.4- Convergent and lateral thinking
has been taken place
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xiv
M.FAHAD RAHIM
BATCH 46

Acknowledgement
I would like to express my deepest appreciation to all those who provided me the possibility to
complete this report. A special gratitude I give to my project lecturer, Mrs. Sakunthala, whose
contribution in stimulating suggestions and encouragement, helped me to coordinate my project
especially in writing this report.
Furthermore, I would also like to acknowledge with much appreciation the crucial role of the
staff of Esoft Metro Campus, who gave the permission to use all required equipment and the
necessary materials to complete my Business Strategy assignment. Special thanks go to my class
mates who help me to assemble the parts and gave suggestion about the tasks in my assignment.
Last but not least, many thanks goes to my parents who have invested their full effort in guiding
me in achieving my goal. I have to appreciate the guidance given by other supervisor as well
who assisted me and gave me honest feedbacks about my assignment.
xv

EXECUTIVE SUMMARY
The purpose of this report was to understand the strategic contents and theories in relation to
eBay. At first, the report provides standard definitions of strategic context and terminologies in
relation to eBay including the mission, vision, goals, objectives and core competencies of the
organization.
Secondly, report identifies the general problems and challenges that can commonly arise when
formulating and implementing strategies. It further carries to the common problems faced by
eBay in the process of strategic formulation and implementation and general techniques used to
mitigate issues. There are different planning techniques namely Value chain, SPACE matric,
Directional policy matrix and BCG matrix that have been explained in depth, identifying the
theoretical aspects in general. In addition, this report takes a clear organizational audit that
analyses the internal capabilities of eBay which is helpful to identify the strengths, weakness,
threats and opportunities of the organization. It also identifies the current position in the market
and the areas need to be developed. Organizational audit is followed by an environmental audit
that covers a range of factors that had influence and likely to influence the operations of eBay
through an in-depth PEST analysis. It also identifies possible forces and their pressure that could
affect eBay through porters five forces analysis. Finally, the report consists information about the
internal and external stakeholders involved in eBay and their significance through stakeholder
mapping. In addition, information on the ways that eBay uses to engage these stakeholders in
organizations activities
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Contents
Introduction to Ebay....................................................................................................................................1
What is a Strategic Plan...............................................................................................................................1
What is Strategic Planning...........................................................................................................................1
Steps to a strategic plan...............................................................................................................................1
Mission, Vision, core competency and objectives of eBay..........................................................................2
Planning approaches...................................................................................................................................5
Reasons Why Strategic Plans Fail................................................................................................................8
Strategic planning issues to consider...........................................................................................................8
Effectiveness of techniques.......................................................................................................................10
Strengths and weaknesses of Ebay............................................................................................................18
Value chain................................................................................................................................................19
Environmental audit for eBay....................................................................................................................25
Stakeholders of Ebay.................................................................................................................................29
A new strategy for eBay to capture the market in China...........................................................................32
Appropriateness of alternative strategies.................................................................................................34
Justification of new strategy......................................................................................................................41
Roles responsibilities of personnel who are in charge with strategy implementation..............................43
Estimated resource requirements for implementing the new strategy.....................................................45
SMART targets to the achievement of strategy implementation..............................................................46
Reference list.............................................................................................................................................48
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xviii

1.1 Assess how business missions, visions, objectives, goals and core competencies of eBay
explain its strategic planning process.
Introduction to Ebay
Ebay Inc. is an American multinational web consumer-to-consumer company, headquartered in
San Jose, California. It was established in 1995, and turned into a remarkable example of
overcoming adversity of the dot-com bubble. It is currently a multi-billion-dollar business with
operations placed in more than thirty nations. The organization oversees ebay.com, an online
auction and shopping site in which individuals and organizations purchase and offer a wide
variety of products and services around the world. If a good is bought, the vender pays eBay an
extra fee. A large amount of goods is offered, and billions of dollars’ worth of stock are sold
each year through this service. Launched in 1995, eBay has made various acquisitions
throughout the years, including the PayPal payment service in 2002 and the Skype voice over IP
service in 2005 (eBay, 2013).
What is a Strategic Plan?
A strategic plan is a report used to communicate with the organization, it's objectives, the
activities expected to accomplish those objectives and the other basic components created during
the planning exercise (Strategic management group, 2016).
What is Strategic Planning?
Strategic planning is an organizational management act that is utilized to set needs, focus on
energy and resources, reinforce operations, guarantee that employees and different partners are
moving in the direction of shared objectives, set up understanding around planned results/comes
about, and survey and modify the association's direction in response to a changing environment.
It is a trained effort that produces major choices and activities that shape and guide what an
association is, who it serves, what it does, and why it does it, with a focus on the future. Effective
strategic planning articulates not just where an association is going and the activities expected to
gain ground, additionally how it will know whether it is fruitful (Strategic management group,
2016).
Steps to a strategic plan
Building up a strategic plan may appear like a mind-boggling process, however if its broken
down into pieces, it's easy to handle. The 5 steps to a strategic plan is as follows
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1. Figure out where you are. This is harder than is looks. A few people see themselves
how they WANT to see themselves, not how they really appear to others. Numerous
organizations get trapped in this same trap. For an exact picture of where your business
is, conducting internal and external reviews to get a reasonable comprehension of the
market place, the competitive condition, and your association's competencies.
2. Distinguish what's vital. Concentrate on where you need to take as much time as
necessary. This sets the direction of the organization over the long term and clearly
characterizes the mission (markets, clients, products, and so on.) And vision
(conceptualization of what your association's future ought to or could be). From this
analysis, the organization can decide the priority issues—those issues so critical to the
general prosperity of the organization that they require the full and quick consideration of
the whole management group (Aileron, 2011). The strategic plan should concentrate on
these issues.
3. Characterize what you should accomplish. Characterize the expected targets that
clearly state what your association must accomplish to address the priority issues.
4. Figure out who is responsible. This is the means by which will get to where you need to
go. The strategies, action plans, and budget are all means in the process that successfully
imparts how you will allocate time, human capital, and cash to address the priority issues
and accomplish the characterized targets.
5. Review. To guarantee the plan executes as outlined, you should hold routinely planned
formal reviews of the procedure and refine as necessary. We recommend at any rate once
a quarter. A strategic plan is a superb thing. It can help you take your organization to
spots you never thought possible. If you haven't officially done as such, set aside the
opportunity to lay out a strategic plan now. It will help keep the organization on track and
you concentrated on what's to come (Aileron, 2011).
Mission, Vision, core competency and objectives of eBay
A Mission Statement characterizes the organization's business, its goals and its way to deal with
achieving those targets. A Vision Statement depicts the desired future position of the
organization. Components of Mission and Vision Statements are regularly joined to give a
statement of the organization's purpose, objectives and qualities (Bain & company guide, 2015).
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Mission- eBay’s mission is to give the world an easy to use Internet platform where its clients
can trade anything with each other. Ebay's mission is particular in that they are the middlemen in
a worldwide sale, which takes into account six classifications of clients; deal seekers,
specialist/collector purchasers or sellers, professional purchasers, casual sellers, and control &
corporate merchants (Kent, no date).
Vision- eBay has various visions of its future as a business. However, every vision ties in with
the primary vision of the firm, which is to become a worldwide leader in online sale markets. An
examination of eBay’s vision likewise includes the characteristics for having a solid value
framework on both the clients of eBay’s services and also the firm itself. They trust that the
integrity of both will help push eBay to accomplishing its objective of turning into a world leader
in online auctions with a completely integrated and convincing system (Kent, no date).
Objectives-
 To widen the current trading platform
 Develop an eBay community that is exciting and reliable
 Improve features and functionality
 Develop value added services
 Developing U.S. and global markets
Core Competency
Ebay instructs merchants in negotiation and finding the best cost for offering a good in the
market, benefiting the dealer and purchaser, as well as the organization also. Ebay's expenses to
offer a good on the web are unbeatable when contrasted with that of other littler internet
exchanging/selling sites. The cost of posting things online is to a great degree appealing to
anybody hoping to offer a thing on the web, regardless of whether it be a vehicle or a screw
driver. The site additionally permits the merchant to decide the cost of transportation for any
given thing permitting to expand benefit around that area too (Dorney, 2009).
Ebay offers a wide variety of goods, from electronics to furniture to automobiles, and lets any
purchaser to have the capacity to effortlessly buy and process safe transactions through their
associated installment organization, PayPal. In spite of the fact that Ebay does not have a
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material item, their important intangible item is the low-cost advertising "space" any individual
is keen on offering a thing that can be used for a sensible expense to exhibit their item(s) broadly
or globally (Dorney, 2009). Since Ebay achieves a large number of individuals per day, it is
almost the main internet buy/sell site that most clients will look to these days.
Finally, position is clear to how Ebay obliges its clients, Ebay is simply an online organization,
so the organization can be accessed to by anybody, anyplace on the planet, making their service
accessible to all their target purchasers.
The link between the mission, vision
The central purpose behind strategic planning is to adjust eBay’s mission to its vision. Without a
mission and vision, the plan exists in a vacuum. For example, the mission is the beginning stage
for planning, the vision is the destination, and the strategic plan is the guide that helps you
explore from one to the next. Qualities or values are additionally critical to the strategic planning
process as they give eBay a standard for creating appropriate techniques and strategies. If any
system or strategy is against eBay's values, then it ought to be re-examined (Achieve it, 2014).
Regardless of the possibility that Bay as of now has very much characterized its mission, vision,
and value statements, you ought to review them all throughout the strategic planning procedure.
Try not to expect that each individual from your strategic planning group can explain your
mission, vision, and qualities particularly if some of these colleagues are moderately new to the
organization, you have to guarantee that they are present, resonate with stakeholders, and give a
firm foundation of planning.
If such articulations don't exist, they should be overhauled and refreshed and contribute whatever
time is important to make the mission, vision, and value statements that can give an effective
system to procedure advancement. If the mission, vision, and values aren't up to the task, then it
will limit the probability of your strategic planning process (Achieve it, 2014).
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1.2 According to the given scenario analyze the factors that have to be considered when
formulating strategic plans by eBay
A plan
A plan is generally a list of steps taken to finish an objective. A plan handles questions like how,
when, where, who, and what? A plan is something good to have. Indeed, it is crucial to the
accomplishment of any effort. However, building up a plan ought not be the initial phase in
addressing a task (Konetes, 2011).
A strategy
A strategy is greater than a plan. strategy handles the subject of why? It has a large scope and
takes a look toward the final product and in addition the numerous ways to the desired result. A
technique or strategy takes a look at each possible impacting element, both seen and unforeseen
and deals with the entire circumstance, not only one final product.
Difference
A plan says, "Here are the steps," while a strategy says, "Here are the best steps." Strategy
addresses the reasons why, while the plan is centered around how. Ideally, the strategy always
comes prior to a plan and shapes the elements of the plan. A strategy is the overall knowledge
that organizes the greater part of the plan so as to adequately achieve the objectives (Konetes,
2011).
All managers should be effective organizers. In any case, few managers don't prefer to invest
time in planning. Given below are the approaches for planning.
Planning approaches
Informal planning
Informal planning refers to processors in which planning does not:
a. comprises in planned gatherings or meeting
b. result in a written document where the procedure, objectives, schedule and spending plan
are set up.
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It makes sense to discuss about informal planning meetings, that is unscheduled discussions
about the organizational plan in gatherings which were not planned for that reason or in causal
experiences among authoritative individuals whether eye to eye (in the premises of the
organization or outside) or virtual. However, when planning does not bring about a written
document (about the strategy and objectives, a budget or a project schedule) and stays in the
head of an individual, it is difficult to check the presence of such plan (Castaner, 2011).
Extended Budgeting
Extended budgeting is rarely utilized as it is just achievable if the environment is steady and
unsurprising. It is fundamentally money related planning in light of the extrapolation of past
patterns (Barnat, 2014).
Top-down planning
top down planning is still a broadly utilized way to deal with planning. It implies that any
choices and targets originate from the upper management, who will then convey this to the
manager, who then conveys the objectives to the group. As far as execution, this implies the
manager makes a plan first and after that chooses which exercises and tasks the group needs to
do.
The benefit of this approach is that choices can be made and implemented rapidly. This is
especially critical when time is constrained. The other advantage of top-down planning is that it
adjusts the objectives to the association's vital objectives as the top management is giving the
directions (Tran, 2016).
Bottom-up planning
Bottom-up project planning implies that it's not the top management that is conveying the goals
to the group, however the group discovers the objectives and the corresponding tasks, which are
then sorted into different exercises and work bundles. Based on the recognized assignments, the
supervisor will make a plan and schedule.
The benefit of bottom-up planning is that the colleagues, that is the general population who are
effectively working, have a say in the plan and choices are made cooperatively. This will
6

enhance group correspondence and group building, and furthermore empowers the colleagues.
Accordingly, it will motivate them to do their best to accomplish the objectives. Recognizing
tasks first additionally prompts to a more definite or detailed plan, with a potentially more
accurate schedule (Tran, 2016).
Strategic analysis
Strategic analysis is the utilization of different tools to plan business strategies by assessing the
opportunities and difficulties confronted by the organization as it pushes ahead. Normally,
strategic analysis includes an audit of internal qualities and shortcomings and additionally
calculates the external environment that could influence business (Reference, 2017).
Behavioral Approaches
Behavioral approaches can take a few forms, however basically the behavioral approach requires
that managers invest time examining the future opportunities and dangers and areas in which the
organization may develop (Barnat, 2014).
Strategic review
The strategic review was produced to take the best components of other six methodologies and
mix them together into an efficient and far reaching planning framework (Barnat, 2014).
What is a Strategic Issue?
A Strategic Issue is, most importantly, an issue - an uncertain question requiring a choice or
waiting for some clarifying future occasions (Ambler, 2017). Also, it is key and has significant
effect on the course and direction of the organization. It likely relates directly to at least one of
the essential "Three Strategic Questions":
 What are we going to offer?
 To whom would we say we will offer it?
 By what means will we beat or stay away from our competitors?
7

Vital Issues lie right at the core of the business. Similarly, the procedure step dealing with
Strategic Issues lies right at the core of Simplified Strategic Planning.
Reasons Why Strategic Plans Fail
Understanding the value of and requirement for a strategic plan is an good place to begin.
However simply needing something, isn't sufficient. Building up a strategic plan takes discipline,
foresight, and a great deal of genuineness. In any case, how well you prepare will undoubtedly
experience challenges along the way. Given below are few reasons why strategic plans fail.
Avoiding these traps will get you closer to the end goal (Alieron, 2011).
1. Not understanding the environment or concentrating on results. planning groups must
focus on changes in the business environment, set significant priorities, and comprehend
the need to pursue outcomes.
2. Partial commitment- Entrepreneurs/CEOs/presidents must be fully dedicated and
completely see how a strategic plan can enhance their organization. Without this
knowledge, it's hard to remain focused on the procedure.
3. Not having the ideal people included. Those accused of executing the plan ought to be
involved from the onset. Those included in making the plan will be focused on observing
it through execution.
4. Unwillingness or failure to change. Your organization and your strategic plan must be
agile and ready to adjust as market situations change.
Strategic planning issues to consider
Growing a business can represent some extensive individual difficulties to the owner or manager,
whose part can change significantly as the business develops. Effective strategic planning
includes considering choices that test the way that business has been done so far. It might be that
basic decision-making in a few areas which will be given to others, or that procedures which
have functioned well in the past will no longer fit with future plans. It can be tempting for
owners or managers to ignore options that are uncomfortable for them personally, however to
dismiss your alternatives on these grounds can truly compromise your strategic plan and
eventually the development of your business (Chamber of Commerce of Metropolitan Montreal,
no date).
8

1. The future role of the owner- for instance, it might be to the greatest advantage of the
business for the owner to concentrate on fewer duties, or to hand over throughout the
everyday control to somebody with more prominent experience.
2. The area of the business - most private companies are found near where the owner lives. but,
as a business develops it might sense to move the business - for instance, to be nearer to more
prominent number of clients or workers with specific abilities.
3. ownership structure - developing organizations specifically ought to guarantee that they get
this privilege. The more a business develops, the more refined it should be about meeting its
financing needs. In many cases, the best alternative is for the owner to give a share of the
business as a return for equity finance - yet this can be emotionally hard to do.
9

1.3 Critically evaluate the effectiveness of techniques that can be used when developing
strategic business plans by eBay mentioned in task 1.2
Effectiveness of techniques
BCG growth matrix
The Boston Consulting group's item portfolio framework (BCG) is intended to help with long
term strategic planning, to help a business consider development opportunities by evaluating its
portfolio of items to choose where to contribute, to suspend or create items. It's otherwise called
the Growth/Share Matrix (Hanlon, 2016). The Matrix is partitioned into 4 quadrants derived on
market development and relative market share, as appeared in the graph beneath.
Figure 1. BCG growth Matrix. Source
(Hanlon, 2016)
1. Dogs: dogs hold low market share contrasted with competitors and work in a gradually
developing business sector. Generally, they are not worth investing into because of the fact
that they create low or negative money returns. But, this is not generally reality. Few dogs
might be beneficial for eBay in a long period of time, they may give collaborations to
different brands or basically act as a guard to defend competitors like Alibaba and Amazon.
10

Therefore, it is constantly vital for eBay to perform further examination of each brand to
ensure they are not worth investing into (Jurevicius, 2013).
2. Question marks or Problem Child: Question marks are the brands that need close
consideration. They hold market share in quickly developing markets consuming large sums
of money and causing losses. It can possibly gain market share and turn into a star, which
would later get to be a cash cow. Question marks don't generally succeed and even after
investing large sums of cash, they struggle to gain market share and in the long run turn into
dogs. In this way, they require close thought to choose if they are worth investing in or not.
For example, eBay contacting suppliers for automobile parts.
3. Stars: stars work in high development businesses and keep up high market shares. Stars are
both money generators and money clients. They are the essential units in which eBay ought
to invest its cash, since stars are relied to become cash cows and create positive money
streams. However, not all stars get to be money streams. This is particularly valid in quickly
evolving industries, where new innovative items can soon be outcompeted by new
technological development, so a star as opposed to turning into a cash cow, turns into a dog
(Jurevicius, 2013).
4. Cash cows: cash cows are the most beneficial brands and ought to be "drained" to give as
much money as possible. The money picked up from "cows" ought to be put into stars to
support their further development. As indicated by the growth share framework, corporates
should not put or invest on cash cows to induce development but rather just to support them
so they can keep up their present market share. Once more, this is not generally reality. cash
cows are typically large partnerships or corporates that are fit for improving new items or
procedures, which may turn out to be new stars. If there would be no support for cash cows,
they would not be able to do such advancements (Jurevicius, 2013).
Given below is the effectiveness of the BCG Matrix Technique
 One main effectiveness is the simplicity. - this matrix is simple and easy explain because it
has only two extents and four quadrants
 It is a trustworthy and long-standing strategic model that has turned out to be strong after
some time and significant changes in the competitive market condition
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 Generally, the estimations required – market development and relative market share are
accessible to the eBay, alongside focused measures, making it moderately simple to execute
and plan
 Clear direction is given to every quadrant in terms of the approach to investment and support
of business units (or brands or items) maybe except for the question mark quadrant
 It is a strategic model for allotting resources for firms seeking market share goals and looking
for experience curve benefits
 The firm has a reason for allocating resources over its business units, based upon competitive
position and market opportunity making for a more strategic based choice
 In spite of the fact that the matrix is created based upon verifiable/current position, the four
quadrants of the BCG matrix gives some strategic direction to what's to come
 The framework is more helpful for substantial scale fabricating operations where experience
curve advantages can be acknowledged. that is, the place where there is a strong connection
between market share profitability
The directional policy matrix (DPM)
The essence of strategy is that it is a decision between at least two great choices. In building up a
marketing strategy the decision to be made is of which segment of the market you ought to create
strategies to seek after. The Directional Policy Matrix (DPM) is an instrument for helping eBay
figure out what their favored segments are. In finishing a DPM you comprehend what you ought
to invest into and the direction they (eBay) ought to take. The directional policy matrix assists
eBay to decide if choices made in the day-to-day running of eBay are to its greatest advantage
(Change factory, 2014). The Directional Policy Matrix measures the attractiveness of a portion
and the ability of eBay to support that segment.
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Figure 1. Directional Policy Matrix. Source. (Change factory, 2014)
Attractiveness of a Market Segment
 Assessing the Attractiveness of a segment ought to include yet not be restricted to, these
factors:
 Size of the segment (number of clients, units or deals)
 Development rate of the portion (an imperative variable)
 Net revenues of the section to the business association
 Continuous buying power of the segment
 Achievable market share given promotional budget, fraction of the market and
contenders' promotional expenditures
 Required market share to equal the initial investment.
Capacity of the organization
 Assessing the capacity of the association to address the issues of the segments ought to
include, however not be restricted to, these factors broke down against the rivals:
 Competitive capability of the association against the marketing mix (product/service,
place, price and promotion)
 Access to appropriation channels
 Capital and human resource required to serve the portion
 Brand association of the company according to the portion
 Current market share/likely future market share.
The strategies for every part descriptor are:
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 Leader – Focus your assets on segments in this area.
 Growth leader – Grow by centering simply enough assets here.
 Cash generator – Milk segments in this area for development somewhere else.
 Phased withdrawal– Move money to segments with more higher potential.
 Custodial – Do not commit any more assets to segments in this division.
 Try harder –Determine if there are routes in which you can fabricate your ability for
portions in this division for low levels of money.
 Double or quit – Invest in your capacity or get out of portions in this segment.
 Divest – Liquidate or move resources utilized as a part of segments in this area as quick
as possible.
Strategic position and action evaluation matrix (SPACE)
Strategic Position and Action Evaluation (SPACE) Matrix has been appeared as an
overwhelming instrument in defining alternative strategies. This matrix is likewise in view of
four essential components called four quadrants of SPACE Matrix (Kasi, no date). Initial two
components called internal dimensions which are Financial Strength (FS) and Competitive
Advantage (CA) and other two are called external dimensions to be specific Environmental
Stability (ES) and Industry Strength (IS).
Without a doubt these four basics are possibly the most basic determinants of an association's by
and large strategic position. The four quadrants system of SPACE Matrix speaks to the
reasonableness or suitability of the techniques to be chosen by an organization like eBay, for
example, aggressive, conservative, defensive strategies (Kasi, no date). Associations falling in
four quadrants ought to embrace the systems as follows;
14

Figure 2. Strategic position and action evaluation (space) matrix. Source (Kasi, no date)
Quadrant
1
Financial Stability & Industry Strength Aggressive
Quadrant
2
Financial Stability & Competitive Advantage Conservative
Quadrant
3
Competitive Advantage & Environmental Stability Defensive
Quadrant
4
Industry Strength & Environmental Stability Competitive
The steps required to develop a space matrix
1. An arrangement of factors ought to be chosen to characterize financial strength, competitive
advantage, environmental stability, and industry strengths. The arrangement of factors could
be as per the following:
Internal Dimensions
Monetary Strength
• Return of investment
• Financial and working influence
15
Competitive Advantage
• Market share
• Quality
• Product life cycle
• Customer preference
• Technological development

• Liquidity
• Working capital
• Cash flow
External Dimensions
Environmental Stability
• Technological changes
• Inflation
• Demand elasticity
• Competitor's value ranges
• Barriers to entry
• Competitive weight
• Ease of exit
• Price elasticity of demand
• Risk exposure
2. Assign a numerical value extending from +1 (worst) to +6(best) to each of the variable that
contain the financial stability and industry strength dimensions. Then again assign a
numerical value extending from - 1 (best) to - 6(worst) to each of the factors that comprise of
environmental steadiness and competitive advantage dimensions. It is to note that on the
financial stability and upper hand side comparison is made to contenders though on the
environmental stability and industry strength side examination is made to other industries.
3. In the third step the average of the values allotted to every variable above is figured by
including the values and isolating by the quantity of factors incorporated into the
examination. This average is computed for each dimension.
4. Now the average values ascertained in the progression 3 are plotted on the suitable axis in the
SPACE Matrix.
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• Sound supply chain
Industry Strength
• Growth potential
• Profit potential
• Financial stability
• Resource accessibility
• Ease of entry

5. Add the two values on x-axis and plot the resultant incentive on x-axis.
6. Include the two vales in y-axis and plot the resultant incentive on y-axis.
7. Crossing point of the new xy focuses is to be drawn in the following step.
8. In the last step, a directional vector ought to be drawn from the starting point of the SPACE
Matrix. This directional vector represents the strategy to be sought after (Kasi, no date)
2.1 Analyze the strategic positioning of eBay by carrying out an organizational audit using
benchmarking, SWOT analysis and value chain analysis. Do an analysis for Demographic
and cultural influences eBay finds in East
What is strategic positioning
An organization's relative position inside its industry matters for performance. Strategic
positioning reflects decisions an organization makes about the sort of value it will make and how
that value will be made uniquely in contrast to rivals (On Strategy, 2017).
Strengths and weaknesses of Ebay
Strengths
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1. World's biggest web marketplace. eBay has more than 150 million live postings and more
than 105 million active clients in 37 nations. That makes eBay the biggest marketplace
internet, having a good control over other online retailers.
2. Business model. eBay just acts as a middleman amongst sellers and purchasers, who bid and
offer things in eBay's marketplace. Being a leader in online sales, eBay had no opposition
and presently has just couple of strong direct contenders. Consequently, eBay's business
model is an upper hand over such bigger retailers as Amazon.
3. Economies of scale. In the first place, eBay needed to contribute vigorously to pick up IT and
client relationship management(CRM) information and abilities, but since then, utilized its
aptitudes to serve more than 100 million clients and to make the biggest online marketplace
with minimal extra expenses.
4. localization. The business works in 37 nations. Every market place is utilizing local language
and is adjusted to local item offerings. No other worldwide online market place is confined to
such degree.
5. brand reputation. eBay is a reliable brand, known everywhere throughout the world and is
esteemed at $11 billion.
6. payment framework. eBay utilizes PayPal, its own payment framework, to continue almost
the majority of the payments going from eBay's market place. From eBay's point of view,
such tight integration has the advantages of more charges gathered (PayPal takes transaction
expenses from the organizations) and more tightly control over purchaser's shopping
experience. From the purchaser's point of view, PayPal gives simple to use online payment
technique.
Weaknesses
1. High expenses. eBay's expenses for the dealers has risen fundamentally throughout the
years. The firm gets charges on listed merchandise, sold products, some adornment
expenses and PayPal transaction expenses. The dealers regularly make zero benefit on
their low value items sold on eBay because of its high charges.
2. No further development technique. eBay hasn't revealed any arrangements on how the
business will manage its development. The organization's top management group is
uncertain whether eBay ought to end up noticeably a retailer or to present new items and
18

services and how to do that. building or developing its own items or gaining new
business. Accordingly, there is high vulnerability over eBay's future and business
direction.
Value chain
The value chain is an efficient way to deal with the improvement of competitive advantage. The
value chain comprises of a set of activities that make and create value. They contribute in the
final value conveyed by an organization (Research Methodology, 2016). The "margin"
represented in the diagram is the same as included value. The organization is divided into
'primary activities' and 'support activities.' Primary activities are inbound logistic, outbound
logistics, promoting and deals, operations, and benefit, which are mentioned about as beneath:
Figure 3. Value chain. Source (Research Methodology, 2016)
Primary activities
Inbound Logistics
eBay functions as an online venue for purchasers and dealers, merchants listed things and gives
descriptions, frequently including photos, an auction is held, in which potential purchasers could
offer on the thing marked down until a settled time (not at all like conventional auctions, which
19

proceeded until no more offers are set), the dealers determined the states of the auction, and also
the time the auction would close, offering or bidding was regularly dynamic as the sale neared
shutting time, sometimes driven via mechanized "sniping" projects that a few purchasers utilized
their offer in just before the auction shuts, so these made an intriguing and including
environment (Arline, 2015).
Operations
One incident, in 1997, there were forty classifications of things available to be purchased, the
posting of antiques and collectibles had expanded significantly, and extra classifications for these
things were required. eBay assessed the things recorded and created numerous new posting
classes, without even counseling the community, it doesn't need to make a big deal about
merchandise which are to be manufactured or assembled and singular operations. eBay didn't
make a fuss over the operations part of any merchandise, it just gave a virtual roof to
empowering transactions.
Outbound Logistics
eBay went about as an online sale webpage so they don't need to be stressed over merchandise
being sent along the inventory network to wholesalers, retailers or the last buyer (MindTools, no
date)
Marketing and Sales
eBay's principal challenge was to build up trust among remote and anonymous merchants who
may never associate again. it had a feedback framework for building reputation, community and
individuals could utilize various tools to make their transaction secure (Arline, 2015). Most buys
on eBay were ensured by a protection policy managed by Lloyd's of London as a feature of the
standard eBay service and ensured at no charge to the purchaser, high value transactions were
secured by tradeable, an outsider third party escrow service organization. Deals outside the eBay
market place was a concern toward eBay as an enterprise, since it didn't get charges for such off-
site transactions. The organization additionally accepted that off-site transactions denied the
members of eBay's services if there was an occurrence of issues. eBay formed a group called
20

"voices", they consented to take an interest for one year with no compensation (MindTools, no
date).
It set up a community for group support and relations, genuine client orientated fashion. at this
stage the association prepares the offering to address the issues of focused clients. This range
centers firmly after marketing communications and the promotions mix.
Services
EBay community group prospered, this group was closely resembling a certifiable society, in
which individuals cooperated with each other under a set of shared guidelines and desires, this
avoids all areas of services, for example, installation, after-deals benefit, complaints handling,
training and so on.
Support activities
Procument
eBay doesn’t need to be stressed over procument; (this function is in charge of all buying of
merchandise, services and materials) (Value based management, 2016). the point is to secure the
most reduced possible cost for buys of the highest quality. But, eBay just gives a platform to web
based transactions to happen, doesn't claim the things being sold, this decreases stock
management costs.
technology Development
EBay worked as an online venue for purchasers and merchants; technology is a critical source of
competitive advantage. eBay utilizes online alternative to develop, to decrease costs and to
secure and manage the competitive edge among competitors. This includes Internet marketing
exercises, lean assembling, Customer Relationship Management (CRM), and numerous other
technological advancements.
21

Human Resource Management (HRM)
Workers are a costly and fundamental asset. An association would oversee enrollment and
selection, training and development, and rewards and compensation. The mission and goals of
the association would be the driving force behind the HRM strategy (Bhasin, 2017). eBay's
technique or strategy of building up a community whose members are unknown, trust among
traders still prevailing and in reality, its mind blowing
Firm Infrastructure
This activity includes and is directed by corporate or strategic planning. It includes the
Management Information System (MIS) and different instruments for arranging and control, for
example, the finance department. But eBay has made an online commercial center, it worked
much like a newspaper -classified section, it encouraged individual to-individual transactions,
however did not claim the things being sold.
Ebay positions itself as a safe online sales website as well as an easy to use webpage for offering
and purchasing different things. The site is sorted in a way where it would be very hard for
anybody going by the site to not tap on the items that are offered on the startup page. The
website catches the initial individual simply perusing the web and stands out in a buyer's mind as
potentially the main place to conduct internet trading. Ebay's name is recognized to any
individual who surfs the web, regardless of whether they have purchased, sold or searched the
webpage for things.
Most purchasers will utilize this site due to the competitiveness of the things available and the
variety of items (NetMBA, 2010). Most other competitors may offer lower costs to post things,
yet this changes the purchasing cost of things along these lines prompting to a lesser chance for a
dealer to offer their item(s). Different web based trading sites likewise may seem shadier and less
easy to understand which can turn-off a fresher looking for their place in the web based trading
world. Ebay's focal points are not just the way they position themselves to the extent publicizing
yet their consistency in giving easy, safe services for customers whether purchasing or selling.
Benchmarking
22

Benchmarking is the way toward looking at your own organization, operations, or procedures
against different organization in your industry or in the market place. Benchmarking can be
connected against any item, process, function or approach in business. Basic central focuses for
benchmarking activities include: measures of time, quality, cost and effectiveness and consumer
loyalty (Reh, 2017).
The purpose of benchmarking is to look at your own particular operations versus contenders and
to create thoughts for enhancing processes, methodologies and technologies to lessen costs,
increase profits and reinforce client loyalty and satisfaction. Benchmarking is an essential
segment of constant change and quality activities.
Why Should eBay Benchmark?
The case for benchmarking proposes that a specific procedure in eBay can be reinforced. A few
associations benchmark as a method for both enhancing discrete areas of eBay and checking
contender's shifting strategies. Regardless of the inspiration, developing an external perspective
of your industry and rivals is a significant piece of overseeing in this universe of progress (Dirr,
2014).
There are various core drivers of benchmarking activities in a firm.
 The most widely recognized driver for benchmarking originates from the internal point of
view that a procedure or approach can be made developed. eBay will gather information
on their own performance at various focuses in time and under various conditions and
distinguish areas for strengthening.
 Numerous organizations contrast themselves with rivals trying to distinguish and dispose
gaps in service or item delivery or to pick up a competitive edge. The information
accumulated in a focused benchmarking activity offers particular bits of knowledge into
the contender's procedures and considering.
 The term: strategic benchmarking, is utilized to portray when a firm is occupied with
contrasting its performance versus the best-in-class or what was considered as world-
class performance. This procedure frequently includes looking past the eBay's core
industry to firms that are known for their success with a specific capacity or process.
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2.2 Carry out an environmental audit for eBay with use of appropriate theoretical
frameworks to understand how it influence the organizational activities
Environmental audit for eBay
Business leaders can control parts of the internal environment that can positively or adversely
influence eBay’s working and monetary outcomes. For instance, leaders shape their
organization's culture, build up the organization's authoritative structure and make approaches
that guide employee conduct. However, the greatest challenges to eBay’s success might be a
result of the external environment over which eBay has little or no control (Nordmeyer, no date).
To address these challenges, business leaders lead an environmental analysis and create
strategies and procedures that adjust eBay’s operations and items to this condition.
The external environment comprises of a general environment and a working environment. The
general environment comprises of the economic, political, cultural, technological, natural,
demographic and international environments in which eBay works. The working environment
24

comprises of an organization's providers, clients, market intermediaries who connect the
organization to its clients, rivals and general society. Both the general and working environments
give business opportunities, harbor instabilities and create dangers to which eBay must adjust
(Nordmeyer, no date).
PESTLE analysis
Political/Legal: This component of PESTLE analysis assessed the political elements that
influence eBay. eBay has its operations in right around 37 nations over the globe, hence is
influenced by various government laws and regulations of every nation. However, E-business
starting at now is not that highly influenced by national governments (Dudovskiy, 2016). They
are incredibly influenced by tax assessment laws, work laws, security controls identified with
online installments and so on.
Economical: Like every different business, eBay is significantly influenced by the general world
economical conditions. They are influenced by economical factors such as inflation, changes in
taxes, rate of interest, currency fluctuation and unemployment. Changes in economical
conditions specifically influence the purchasers' purchasing power which thusly has direct
impact on eBay's general business (Hanlon, 2014)
Socio-Cultural: eBay's general business if incredibly influenced by changing client preferences,
changes in lifestyle trends and buyer purchasing patterns. Researches discover that there has
been a huge ascent in the quantity of buyers favoring internet retailing when contrasted with
offline retailing. There has been an immense move in purchasers' methods for purchasing and
offering items with so much data or information accessible to them at the snap of a button.
Technological: Quick advancement in technology has demonstrated a gigantic effect on all
business over the world. eBay's entire plan of action depends on web; thus, it is enormously
influenced by technological components like security dangers, server breakdowns and changes in
terms of online payments (Luthge, 2003).
Environmental: since eBay does not deal with manufacturing and only acts as a middleman,
they do no harm to the environment.
Porter’s five forces
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Porter's Five Forces model, named after Michael E. Porter, recognizes and dissects five
competitive powers that shape each industry, and decides an industry's shortcomings and
qualities (Investopedia, 2017).
Figure 2. porter’s 5 forces. Source (Author)
Threat of new participants
Ebay 's rising fame and developing client base made it troublesome for other online auction sites
to contend effectively against it. Ebay's sale framework has given opportunities for its purchasers
and dealers to get what they need at the best costs from a larger auction. From this framework,
ebay effectively increased dominant market share of the online auction site (e-marketing
excellence, 2014). Well established online organizations, for example, Yahoo and AOL had
attempted to enter the business by offering purchasers and venders free-of-charge auction
transaction, yet regardless they found it difficult to contend (Luthge, 2003). What's more, the site
has likewise gotten the upside of being the primary mover in the industry.
Supplier power
26
competitive
rivalry
Threat of
new
participants
buyer
power
threat of
substitute
product
supplier
power

In the online sale business, dealers are the provider of the items. As providers, they have the
position to freely pick their partners. They can pick any auction site as long as it offers the best
advantage for them, for example, low charge and commission. Consequently, ebay must keep its
policy about expense and commission low with a specific end goal to pull in the dealers. Any
negative changes in this policy will essentially decline ebay's relationship with its dealers (e-
marketing excellence, 2014). For instance, when the previous CEO of ebay, Meg Whitman,
chose to expand the posting charge in the mid-2000s, with a specific end goal to keep ebay's
income developing and ensure its stock value, the site's client got together and protested the
policy. They restricted and utilized the ebay people group release sheets and chat rooms to enroll
their objections. Thus, ebay got a large number of unfriendly messages and sellers threatened
they would move their business to different suppliers, for example, Amazon. In fact, a significant
number of them shut down their ebay online storefronts and moved to Amazon. For ebay itself,
this circumstance brought on monstrous diminishment in their net revenues (Hanlon, 2013).
Buyer power
One reason behind the ebay's success is on the grounds that there are a boundless number of
purchasers. Everything recorded on ebay can be seen by purchasers from all around the globe.
However, this circumstance additionally causes danger for ebay if it neglects to comprehend its
clients' power. Because of the propelled innovation today that web has turned out to be easy to
get to, the purchasers have more choices to pick their online shopfronts. Understanding this
power, the purchasers turn out to be more sensitive about the offerings. Substitutes' accessibility
at low transaction expense would reinforce their power to pick. If they could locate the
comparable item recorded on ebay on other site, however at lower value, the purchasers would
prone to buy that item from that site. In any case, it is troublesome for ebay to control the cost of
every item recorded as it is set by sellers themselves and not ebay.
Threat of substitute products
As specified over that item, substitutions convey risk for a firm when clients confront low
switching expense and discover the substitutes have lesser cost, have the same or better quality
and performance. Reacting to this, ebay built up a fixed price feature for its purchase choice
called "Buy It Now". The element offers the purchasers an immediate buying feature at the
27

seller's predetermined rates with the goal that they don't have to sit tight for a sale to end (Arline,
2015).
Competitive rivalry
Online auction business is profoundly competitive due to a large number of players. Thus, there
is exceptionally serious competition among them. These organizations, for example, ebay,
Yahoo, and Amazon, strongly contend as far as value, quality and development.
PORTERS 5 FORCES INTENSITY
 Competitive rivalry Medium to high
 Buyer power High
 Threat of new participants Medium
 Supplier power Low to medium
 Threat to substitute product Low
Table 1. Porter’s 5 forces. Source (Author)
2.3 According to the given scenario assess the significance of stakeholder analysis for the
formulated strategies by eBay using stakeholder mapping and stakeholder significance grid
Stakeholders of Ebay
Stakeholder analysis is the access and thought of the effect stakeholders have on an organization.
This has become progressively critical in the mid-21st century, as non-stakeholder elements,
including customers, employees, communities and business partners, have turned out to be more
key to business achievement. eBay needs to comprehend the interests of every stakeholder and
strategize on the most proficient method to address them in business practices (Kokemuller,
2017).
Internal stakeholders of eBay
Internal stakeholders are elements inside eBay (e.g., employees, managers, the board of
directors, investors). Workers need to get cash and remain employed. Owners are keen on
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expanding the profits the business makes. Investors are worried about getting income from their
investment.
External stakeholders of eBay
External stakeholders are elements not inside eBay itself but rather who think about or are
influenced by its performance (e.g., shoppers, regulators and suppliers). The government needs
eBay to pay taxes, utilize more individuals, follow laws, and honestly report its finance related
conditions. Clients need the business to give top notch merchandise effortlessly. Providers need
the business to keep on purchasing from them. Lenders need to be reimbursed on time. The
people or community needs the business to contribute positively to its local environment and
population.
The following stakeholder map could encourage the procedure and constant work of progress
inside eBay. The mapping of stakeholder accommodates a basic usefulness of understanding the
correct practices inside the business. The above stakeholder guide can be utilized for
distinguishing partner engagement in the change management procedure of eBay.
As expressed, there are numerous classifications of stakeholders who are included for the
achievement of eBay. They are the workers, share - holders, clients, contenders, government and
controllers and so forth.
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Figure 3. Stakeholder map. Source (MindTools, no date)
 Manage closely
These are stakeholders seeming to affect eBay, who are likewise of high significance for its
prosperity. This suggests the implementing association should develop great working
relationships with these partners, to guarantee a powerful coalition of support for eBay.
(customers)
 Keep informed
These are partners of high significance to the achievement of eBay, however with low impact.
This implies that they will require exceptional activities if their interests are to be secured. An
illustration might be generally minimized groups (e.g. Youth, seniors), who may be beneficiaries
of a new service, yet who have little "voice" in its improvement. (Suppliers)
 Keep satisfied
These are partners with high impact, who can in this way influence eBay's results, yet whose
interests are not really lined up with the general objectives of eBay. They may be financial
administrators, who can practice extensive attentiveness over funding disbursements. This
conclusion infers that these partners might be a source of huge risk, and they will require careful
monitoring and management. (Employees, managers)
 Monitor
The partners in this case, with low impact on, or significance to eBay's goals, may require
constrained checking or assessment, however are of low need. (Government)
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2.4 According to the given scenario, alibaba.com is putting an intense pressure on eBay
specially in the East. Present a new strategy for eBay to capture the market in China
A new strategy for eBay to capture the market in China
1. Adjust your offerings to better fit the social habits for Chinese shoppers. Owing from an
exceedingly collectivistic culture, Chinese shoppers depend intensely on social networks,
reviews and suggestions when settling on a buying choice. Thus, Chinese clients are
additionally avid content suppliers. Actually, Chinese customers are more social online
than U.S. purchasers. Along these lines, organizations like eBay need to make client
benefit a top need, as any terrible verbal exchange can spread like wildfire and cause
more harm than it would in a Western nation.
2. Concentrate on the client, not simply on the data system. A few associations trust that the
way to achievement in China is superior information technology. In this manner, they
tend to concentrate more on system integration than on client needs. but as the cases
illustrates, addressing client needs is the most critical determinant of accomplishment.
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3. Accelerate your basic leadership forms; act quick and respond speedier. China's web
based business organizations exceed expectations at making fast, shopper driven choices.
In China, local market conditions change quickly. A long detailing chain with staff at
Western headquarters controlling everything is essentially not achievable. Choices must
be made rapidly.
4. Consider different types of market entry. No place is it carved in stone that American
associations must dispatch Chinese divisions. Given how troublesome the opposition is,
associations would be wise to consider shaping strategic partnerships with nearby
contenders. For instance, rather than building a web based business channel of their own,
few major name brands including Gap Inc. and Levi Strauss have collaborated with
Taobao to offer their items online in China. Another type of entry is investing in local
companies. Walmart, as a major aspect of its online procedure in China, has recently
driven a grouping of financial specialists in purchasing a $500 million stake in
360buy.com.
5. Be adaptable and innovative in procedures because of regulations. China is a quick
advancing economy whose business conditions and also the rules encompassing them are
frequently nontransparent and questionable. So, eBay entering China should be
completely mindful of the outcomes of working in such a situation and should be
adaptable in their techniques. Google, for instance, chose to re-enter China in mid-2012
with various item offerings. The organization is currently concentrating on items and
services that are less censor-sensitive, for example, maps, shopping services and mobile
platforms. Specifically, Google is additionally utilizing its recently gained Motorola
handset division to develop new services.
6. The greatest challenge confronted by all multinational organizations while figuring their
globalization techniques is the manner by which to strike a balance amongst
standardization and customization that fits with the organization's vision, plan of action
and qualities. There is no measurement that fits-all solution, as organizations have
distinctive targets and assets in their globalization efforts. In any case, in a market like
China's, where local information and culture are crucial to achievement, more thought
ought to be given in the business strategy process to how to better serve neighborhood
clients and adjust in a quickly evolving market.
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3.1 Analyze the appropriateness of alternative strategies relating to market entry,
substantive growth, limited growth or retrenchment for eBay
Appropriateness of alternative strategies
Business environments are exceedingly indeterminate and executives should be creative and
adaptable to survive. They accomplish this through strategic alternatives that empower eBay to
keep up a competitive edge over their competitors. For example, officials can adjust through
more secure small investments or unsafe and expensive changes, as per the "Harvard Business
Review." Some alternative procedures include market entry strategy, substantial growth and
limited growth strategies (Carey, 2017).
Market entry Strategies
Exploring the different market entry strategies can help eBay to better comprehend which
techniques best fit the organization. The commonly used market entry strategies are as follows;
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 Organic growth
 Licensing
 Franchising
 Merger or acquisition
 Strategic alliance
Organic growth
Organic growth technique includes reinforcing eBay by utilizing its own energy and assets. This
approach to deal with eBay development is slower than others, yet it has moderately low in up-
front costs, making it an alluring choice for entrepreneurs who need to grow their organization,
who don't have a lot of liquid capital.
Benefits -Building up your organization's qualities through organic growth strategies can make
you a stronger rival in your industry (Sansare, 2013). For example, an organization that
persistently commits its profits to enhance its quality-control division offers increasing value to
its clients, making it an undeniably impressive contender. Organic development likewise can
build your market share and enhance client maintenance. Reinvesting your profits in your sales
and customer-service departments, for instance, draws in new clients while reinforcing
relationships with your current clients.
Risk- Organic growth techniques exhibit a few dangers. Assume you put your time and assets
into developing your business organically, however a remarkable contender chooses to seek after
outer development techniques by converging with different organizations. Inside a short time,
you could go from a generally parallel competitor remaining to being totally outmatched. Then
again, if your rival develops too quickly, it may move its concentration far from the components
vital for achievement in your industry, for example, offering high-quality items and customized
client service.
Licensing
Licensing permits an individual or an organization that claims intangible property, (for example,
copyright or a trademark) to allow another party the privilege to utilize that property for a
predefined timeframe, and under indicated conditions (International Strategy Solutions, 2014).
34

Payment is received as royalties. Can diminish risk and be a compelling approach to back
worldwide extension. Check if you're permitting understanding will limit any future exercises, or
uncover data to a conceivable future contender
Franchising
Franchising is the point at which the proprietor of the business giving an item and additionally
benefit (the franchisor) relegates to give individuals (the franchisees) the privilege to advertise
and appropriate the franchisor's items as well as services, and to utilize the business name for a
predetermined timeframe, and under indicated conditions. It's a low-cost, low-risk method of
entry into new markets enabling you to utilize the social information and know-how of local
supervisors. As a franchisor, you're obliged to keep on supporting the franchisee after the initial
one-time transfer is finished (Tanner, 2017).
Strategic alliances
A strategic alliance is when at least two entities collaborate to accomplish a vital objective.
Contingent upon the objectives, alliances can be shaped between an organization and its
providers, clients – or even its rivals in a few cases – for short, medium or long stretches
(International Strategy Solutions, 2014). You can share costs and use member strengths. There's
danger of contention between accomplices – also the formation of a future nearby, or universal
contender.
Mergers and acquisitions
Mergers and acquisitions (M&A) are characterized as consolidation of organizations. Separating
the two terms, Mergers is the mix of two organizations to shape one, while Acquisitions is one
organization taking control by the other (Sansare, 2013). M&A is one of the real parts of
corporate finance world. The thinking behind M&A for the most part given is that two separate
organizations together make more value contrasted with being on an individual stand. With the
goal of wealth maximization, organizations continue assessing diverse opportunities through the
course of merger or acquisition (Tanner, 2017)
Substantive growth strategy
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Vertical integration
Vertical integration is a competitive technique or strategy by which an organization takes full
control more than at least one phases in the production or distribution of a product. An
organization settles on vertical integration to guarantee full control over the supply of the crude
materials to fabricate its items. It might likewise utilize vertical integration to assume control
over the reins of distribution of its items (Moore, 2017).
An exemplary case is that of the Carnegie Steel Company, which not just purchased iron mines
to guarantee the supply of the crude material additionally took control railways to fortify the
circulation of the last item. The procedure helped this steel company deliver less expensive steel,
and enabled it in the market place.
Horizontal integration
Horizontal integration is another competitive technique that organizations utilize. A scholarly
definition is that even horizontal integration is the securing of business exercises that are at a
similar level of the value chain in comparable or distinctive industries. In more straightforward
terms, horizontal integration is the acquisition of a related business: a fast-food restaurant
converging with a comparative business in another nation to pick up a solid foothold in foreign
markets.
Diversification
Related diversification
It is the point at which a business includes or extends its current product offerings or markets.
For instance, a telephone organization that includes or extends its wireless items and services by
buying another wireless organization is taking part in related diversification (Olsen, no date).
With a related diversification procedure, you have the upside of understanding the business and
of realizing what the business opportunities and dangers are, yet various related acquisitions
neglect to give the advantages or returns originally predicted.
Unrelated diversification
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It is the point at which a business includes new, or disconnected, product offerings or markets.
For instance, a similar telephone organization may choose to go into the TV business or into the
radio business. This is unrelated diversification. There is no immediate fit with the current
business. Why would an organization need to take part in unrelated diversification? Since there
might be cost efficiencies or on the other hand the acquisition may give an offsetting income
during an occasional break. The driver for this acquisition choice is profit. it should be a low risk
investment, with high potential for return (Olsen, no date).
Limited growth strategies
Market penetration
Market penetration is one of the four option development techniques in the Ansoff Matrix. A
market penetration strategy includes concentrating on offering your current items or service into
your current markets to pick up a higher market share (Free management Books, no date). This is
the principal technique most associations will consider on the grounds that it conveys the least
measure of risk. This system includes selling more to current clients and to new clients who can
be considered as being in a similar market place. For instance, if your present client base
comprises of men in the age of 16 and 25 then this technique would include attempting to offer a
greater amount of your current items or service to this same gathering.
One key requirement is that you can't enable anything in your drive to develop market share to
trade off your current achievement. You should know about what has made the item a win until
this point and guarantee that nothing you do will undermine it. You ought to give this procedure
careful thought in the event that you are not in a position to contribute intensely or are not happy
with going for risks, as the measure of risks related with this system is moderately low
(Kokemuller, 2017).
Market Development
Market Development is a business technique whereby a business attempts to discover new
groups of purchasers as potential clients for its current items and services. In other words, the
objective of market development is to venture into undiscovered markets. These potential client
37

groups may as of now be served by contenders or may not be at present advertised to by anybody
for the item.
product development
Developing new items or altering existing items so they seem new, and offering those items to
present or new markets is the meaning of product development strategy (Richards, 2017). There
is nothing straightforward about the strategy. It requires sharp consideration regarding
contenders and client needs now and later on. The capacity to fund prototypes and manufacturing
processes, and a creative marketing and communications plan.
Innovation
Innovation strategy is a plan to develop the market share or profits through item and service
innovation. When taking a look at innovation methodology through a job to-be-done focal point,
we see that a viable technique should accurately advise which work agent, occupation, and
section to focus to accomplish the most development, and which neglected requirements to focus
to help clients show signs of improvement (Strategy, no date). With regards to making the plan,
an innovative methodology should likewise show whether an item change, or a troublesome or
breakthrough innovation approach is ideal. Shockingly, most innovation strategies flop in such
matters, which is the reason innovative achievement rates are weak.
Disinvestment strategies
Retrenchment Strategy
The Retrenchment Strategy is embraced when an association goes for lessening it’s at least one
business operations with the view to slice costs and reach to a steadier financial position. In other
words, the strategy followed, when a firm chooses to wipe out its activities through an
impressive decrease in its business operations, in the viewpoint of client groups, client capacities
and innovation options, either separately or collectively is called as Retrenchment Strategy
(Business Jargon, no date).
Turnaround Strategy
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The Turnaround Strategy is a retrenchment methodology taken after by an association when it
feels that the choice made before isn't right and should be fixed before it harms the profitability
of the company. Simply, turnaround system is pulling out or withdrawing from the choice
wrongly made before and changing from a misfortune making organization to a profit-making
company.
Disinvestment strategy
The Divestment Strategy is another type of retrenchment that incorporates the scaling back of the
extent of the business. The firm is said to have taken after the divestment methodology, when it
offers or exchanges a bit of a business or at least one of its vital specialty units or an important
division, with the target to restore its financial position. The divestment is the inverse of
investment, wherein the firm pitches the part of the business to acknowledge money and pay off
its obligation. Likewise, the organizations take after the divestment technique to close down its
less beneficial division and designate its assets to a more productive one. An association receives
the divestment procedure just when the turnaround methodology ended up being unsatisfactory
(Reference for business, 2017).
Liquidation Strategy
The Liquidation Strategy is the most unpleasant technique embraced by the association that
incorporates auctioning off its assets and the last conclusion or ending up of the business
operations. It is the most essential and the final fall back on retrenchment since it includes
genuine outcomes, for example, a feeling of disappointment, loss of future opportunities, ruined
market image, loss of work for employees, etc. The firm receiving the liquidation methodology
may think that it’s hard to offer its assets in light of the non-accessibility of purchasers and
furthermore may not get satisfactory remuneration for the vast majority of its assets (Wright,
2017).
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3.2 Justify the selected strategy for eBay
Justification of new strategy
Acquisition is a better way to grow
It's very basic that the best approach to extend eBay is through hard work. Keep your clients
satisfied and market aggressively. At last it boils down to old fashioned deals and advertising,
and a lot of hard work. This is the thing that most advisors, educators, and specialists will insist.
You'll hear a ton of mottos like "there are no alternate ways to achievement."
We're positively not going to claim that hard work isn't a key element of achievement in
developing eBay. In any case, as opposed to the traditional wisdom, there is an easy route to
development. Development through acquisition, over and over again considered the restrictive
40

space of the biggest of organizations like eBay, it is likewise very fitting for the little and fair
sized organizations hoping to accomplish quick extension.
The way to development by acquisition is exploiting cooperative energies for example, making
2+2=5. Development through acquisition is a faster, less expensive, and far less risky proposition
than techniques for extended marketing and sales efforts. Further, acquisition offers a horde of
different preferences, for example, less demanding financing and immediate economies of scale.
The competitive advantages too are impressive, going from finding out one's competition off
guard, to immediate market penetration even in zones where you may as of now be weak, to the
end of a competitor(s) through its acquisition. Synergistic acquisition is not constrained to
purchasing direct contenders. I will likewise detail how little and medium size organizations can
productively develop by purchasing related or complimentary organizations. It is very basic for
eBay to purchase another organization to take better favorable position of each other's
distribution channels.
Few big organizations have developed to where they are today without acquiring no less than a
couple organizations along the way. A large number of the Fortune 500 group of organizations
accomplished participation in that exclusive club by depending on external development
strategies. This is especially valid in quickly changing ventures, for example, media
communications and high innovation. However successful organizations in less unstable
ventures like basic needs, home development items, and unquestionably keeping money
regularly depend on an acquisition to accomplish development, market share, economies of
scale, and marketing.
Another genuinely common kind of acquisition includes the buy of an organization in a similar
industry yet in an alternate geographic region. Web access Provider organizations, for instance
regularly purchase ISP's in different districts. Taken cost focus components like client service
and charging can be centralized to pick up economies of scale through the dramatic increment in
volume of business.
The advantages of development through acquisition are not really restricted to marketing. It is
ordinarily less demanding to fund development by means of obtaining than by means of more
traditional routes of extension. As I will illustrate, moneylenders and speculators are more
41

inspired by genuine financials than with projections based strategies for success, regardless of
how positive they might be.
Further, an entire generally non-existent type of financing is accessible through the common
routine with regards to dealer financing. That is, business purchasers commonly pay a portion of
the business cost over a long period of time, at interest rates beneath those of bank loan rates.
The substance driving numerous business acquisitions include cooperative energies. At the point
when organizations are consolidated, the entire is regularly greater than the whole of its parts.
Cooperative energies including marketing and economies of scale, as pointed out as of now, are
clear advantages. Likewise, there are normally opportunities including production, volume
discounts in obtaining, and lessened overhead costs (as a rate of offers).
In Summary
Acquisition can be a quicker, less expensive, and in general is a more proficient alternate way to
eBay. The hazard is littler, and the financing is less demanding. Finding the correct organization
to gain requires some exertion.
4.1 According to the given case assess the roles responsibilities of personnel who are in
charge with strategy implementation in eBay
Roles responsibilities of personnel who are in charge with strategy implementation
Strategic implementation processes need the work and attention of workers and managers at all
levels inside an organization particularly when the changes happen in a small organization
environment. Since the implementation procedure can possibly affect an extensive variety of
obligations and duties, workers need a thorough comprehension of their duties during the
procedure (OnStrategy, 2017).
for instance, an important role of a CEO is to communicate a vision and to direct strategic
planning. The individuals who have effectively executed strategic plans have frequently revealed
42

that including groups at all levels in strategic planning fabricates a mutual vision, and builds
every individual's motivation to see plans succeed.
Strategic Implementation
Strategic implementation includes arranging and executing systems identified with process
changes. In organizations of all sizes, including eBay, this kind of implementation guarantees
that progressions happen fittingly over all divisions and groups inside the organization. On both
a macro level, which includes the whole of eBay, and a micro level, which concentrates on every
person inside eBay, and change should be well-thoroughly considered and communicated
effectively to be successful
Strategy implementation issues
Strategy implementation quite often includes the introduction of progress with eBay. Supervisors
may put in months, even years, assessing choices and choosing a strategy. Every now and again
this strategy is then declared to eBay with the desire that organization members will naturally
observe why the option is the best one and will begin immediate implementation (Reference for
business, 2017). At the point when a strategic change is ineffectively presented, supervisors may
really invest more energy and time executing changes coming about because of the new strategy
than it was spent in choosing it.
Strategic implementation includes both macro-organizational issues like reward systems,
technology, decision making processes, and structure, and micro-organizational issues like
culture and resistance to change (OnStrategy, 2017).
Role of top management
Top management is fundamental to the effective implementation of strategic change. Top
management gives a good example to different chiefs to use in evaluating the notable
environmental factors, their relationship to eBay, and the propriety of eBay’s reaction to these
factors (Long, 2017). Top management additionally shapes the perceived connections among
association segments.
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Top management is to a great extent in charge of the assurance of eBay’s structure (e.g., data
flow, decision making procedures, and occupation assignments). The management should
likewise perceive the current culture and figure out how to function inside or change its
parameters. Top management is additionally in charge of the plan and control of eBay’s reward
and motivating frameworks.
Finally, top management are included in the plan of information systems for eBay. In this part,
supervisors impact the environmental factors destined to get consideration in eBay. They should
likewise verify that information concerning these key factors is accessible to influenced chiefs.
Top-level supervisors should likewise give precise and convenient feedback concerning the
eBay’s performance and the performance of individual business units inside eBay. Members in
eBay require data to keep up a sensible perspective of their performance, the performance of
eBay, and the eBay’s relationship to the environment.
4.2 Analyze the estimated resource requirements for implementing the new strategy
identified in task 3.1 for eBay
Estimated resource requirements for implementing the new strategy
A range of resource suggestions should be actualized keeping in mind the end goal to encourage
eBay's technique for development. As per the Ansoff matrix, eBay's fundamental strategy is
focused on acquisition. A few expenses should be built up by eBay with a specific end goal to
encourage this
Financial assets
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Financial capacities inside the association should be expanded since the manageability of eBay is
reliant on the capacity of eBay to keep up a decent scope of its item portfolio. However, it could
be comprehended that the bank is at the lowest segment where the part has been challenged with
the changing area and advancements brought by other contenders. Opening new branches is a
costly variable to the bank however because of the strategy, eBay must deal with it (Williams,
2007).
HR
The workforce is the way to the accomplishment of eBay. On account of extension, more staff
should be enlisted by eBay. Many variables should be investigated by the HR division keeping in
mind the end goal to deal with this circumstance. Properties losing ability as one of the real
misfortunes for an association in effectively managing the planning procedure.
Physical assets
eBay should give numerous physical assets with a specific end goal to actualize the procedure of
opening a new branch in China. The underlying start-up cost is high regarding physical assets. In
that capacity, it will be essential and basic for the association to comprehend and take in the
appropriate advantages that could be carefully fit to suit the prerequisites of the clients (Riley,
2015).
4.3 Evaluate the contribution of SMART targets to the achievement of strategy
implementation in eBay with appropriate research
SMART targets to the achievement of strategy implementation
SMART objectives or goals setting brings structure and trackability into your objectives and
goals. Instead of obscure resolutions, SMART objective setting makes evident directions towards
a specific target, with clear points of reference and an estimation of the objective's attainability.
Each objective or goal, from intermediary step to overarching objective, can be made
S.M.A.R.T. also, accordingly, conveyed nearer to reality. In corporate life, SMART objective
setting is a standout amongst the best but then minimum utilized tools for accomplishing
45

objectives. Once you've charted to blueprints of your venture, it's an ideal opportunity to set
specific objectives. With the SMART checklist, you can assess your goals. SMART objective
setting additionally makes straightforwardness all through the organization. It clears up the way
objectives appeared, and the criteria their acknowledgment will adjust to (Dartmouth College,
2017).
eBay is one of the main online sale organizations. In a move to build its client base, eBay is
recommended to go for an acquisition strategy. The organization needs to first distinguish the
requirement needs and the way of life of China and furthermore the items and services offered by
Alibab.com which is the primary contender for them keeping in mind the end goal to build up
another item which sits the China's culture and furthermore a one of a kind one.
When considering about SMART targets, to be accomplished by eBay to screen a given
methodology it is imperative to consider their statement of purpose. With respects to eBay, their
long-haul targets will influence their short-term targets and timescales. These targets will help
eBay to watch a given technique crosswise over various offices and check various diverse
approaches to prevail in it. One of it is principle target is to improve its market share throughout
the years while expanding client's loyalty.
EBay accomplishes its goals by offering new promptings to accessible clients. This will expand
their dependability and furthermore pull in new ones. EBay offers its clients with vouchers as an
inducement and exceptional offers, yet the timescale of this market will be every year, and they
setting up extraordinary offers during Christmas and New Year with a point of pulling in new
clients.
However, the breakdown of procedure into littler targets and timescales enables them to go back
and examining the best strategy to utilize, and give them the chance to discover the most ideal
approach to accomplish more. EBay can consider receiving a mass promoting methodology, and
this will empower their organization to contact both huge and littler clients (Chaffey, 2017).
They acquaint new items all together will enhance eBay’s development. They likewise consider
bringing costs all together down to pull in new purchasers. Different techniques that eBay can
embrace keeping in mind the end goal to enhance clients' loyalty and draw in new ones are;
46

enhancing the item quality and including new item highlights, wandering into new market
sections and shifting advertisement from item attention to item conviction.
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