Info
Organisational structure
Circumstances
Advantages
Disadvantages
(a) No formal structure for e-commerce
Initial response to e-commerce or poor leadership with no identification of need for change
Can achieve rapid response to e-commerce
Poor-quality site in terms of content quality and customer service responses (e-mail, phone). Priorities not decided logically. Insufficient resources
(b) A separate committee or department manages and coordinates e-commerce
Identification of problem and response in (a)
Coordination and budgeting and resource allocation possible
May be difficult to get different departments to deliver their input because of other commitments
(c) A separate business unit with independent budgets
Internet contribution (Chapter 6) is sizeable (>20%)
As for (b), but can set own targets and not be constrained by resources. Lower-risk option than (d)
Has to respond to corporate strategy. Conflict of interests between department and traditional business
(d) A separate operating company
Major revenue potential or flotation. Need to differentiate from parent
As for (c), but can set strategy independently. Can maximise market potential
High risk if market potential is overestimated due to start-up costs
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