Sba merges 

Chapter 5: Business Process Change

Learning Objectives

  • Understand the meaning of organizational structure and the different types of organizational structure.

  • Know the difference between organizational structure and organizational chart.

  • Gain knowledge on Business Process Reengineering (BPR) and its objectives.

Organizational Structure

  • Definition: A system that outlines how activities are directed to achieve organizational goals.

  • Functions:

    • Determines information flow within the company.

    • Defines employee roles and their fit in the overall system.

  • Designed around functions: Sales, marketing, finance, engineering, etc.

  • Organizational Chart vs. Structure:

    • Organizational structure defines purpose, accountabilities, and KPIs for roles.

    • Organizational chart shows job titles and may include HR details.

Types of Organizational Structures

  • Functional

  • Divisional

  • Team-based

  • Flat (Flatarchy)

  • Matrix

  • Circular

  • Network

Definition of Process

  • A cross-functional interrelated series of activities that convert business inputs into outputs.

Chapter 6: Business Models for E-Business

What is an E-Business Model?

  • Utilizes advanced communication technologies and digital information to streamline business processes.

  • Developed in response to the increasing prevalence of the internet.

  • Defines how a company generates revenue, product offering, and target customers.

Key Elements of an E-Business Model

  • Description of Customers: Relationships and value propositions.

  • Products and Services: Detailed listing and description.

  • Business Processes: Necessary actions for value creation.

  • Resources: Assets required for operations.

  • Supply Chain: Overview and relationships.

  • Competitors: Analysis of strengths and weaknesses.

  • Competitive Advantage: Differentiators and key factors for success.

  • Financial Overview: Revenue models, costs, financing sources, projected profitability.

Four Broad Transformations to E-Business

  1. From Domestic to Multinational Business

  2. From Industrial Manufacturing to Knowledge-Based Services

  3. From Enterprise Resource Management to Enterprise Network Management

  4. From Manual to Electronic, Automated Processes

Components of E-Business Models

  1. Value Proposition

  2. Customer Relationships

  3. Revenue Model

  4. Activities, Capabilities, and Resources

Chapter 7: Customer Relationship Management

Key Objectives

  1. Define customer relations and CRM.

  2. Importance of CRM.

  3. Types of CRM.

  4. Building positive CRM.

Customer Relations

  • Describes how a company engages with customers for better experiences.

  • Reactive Functions: Engagement starts post-customer outreach.

  • Proactive Functions: Business reaches out first.

Importance of CRM

  1. Builds bonds that facilitate purchasing.

  2. Increases likelihood of future purchases.

  3. Helps in brand loyalty.

  4. Improves company image in providing solutions.

  5. Assists in resolving product and service issues.

  6. Encourages brand advocacy among customers.

Benefits of CRM

  • Customer retention

  • Customer loyalty

  • Customer satisfaction

Types of Customer Relationships

  1. Transactional

  2. Self-service

  3. Automated services

  4. Long-term relationships

  5. Personal assistance

  6. Dedicated personal assistance

  7. Community engagement

  8. Co-creation with stakeholders

Building Positive Customer Relationships

  1. Prioritize customer needs.

  2. Enable self-service options.

  3. Improve accessibility.

  4. Measure satisfaction regularly.

  5. Show appreciation to customers.

  6. Train employees effectively.

  7. Cultivate a supportive work culture.

  8. Enhance resolution rates for service calls.

  9. Leverage technology for efficiency.

Chapter 8: Finance & Strategy

Objectives

  1. Determine sources of finance.

  2. Differentiate between financing sources.

  3. Understand project finance implications.

  4. Grasp financial statements.

Sources of Finance

  1. Debt Financing: Loans from traditional lenders.

  2. Equity Financing: Capital in exchange for ownership stakes.

Types of Debt Financing

  • Bank Loans: Lower costs, stricter covenants.

  • Project Bonds: Lower interest with good credit ratings.

  • Agency Loans: Mitigate risk.

  • Convertible Loan Stocks: Can be converted into shares later.

Project Finance

  • Financing a single-purpose asset through a legally independent entity.

  • Advantages: Longer maturity, project asset securitization.

  • Disadvantages: Longer structure period, higher costs.

Chapter 9: Human Resource Management

Objectives

  1. Understand performance management and its systems.

  2. Importance of performance management.

  3. Characteristics of performance appraisal.

Performance Management

  • A tool for evaluating and improving employee performance.

  • Aids in creating optimal work environments.

Change Management

Objectives

  1. Define change management.

  2. Understand strategic change.

Change Management Overview

  • Restructuring organizational strategies to meet objectives.

  • May include shifts in policies, target markets, or organizational structures.