Exam 2: E-Commerce Business Models and Concepts

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Organizational development is a plan that describes how the company will organize the work that needs to be accomplished in the business plan or strategy.Typically, work is divided into functional departments, such as production, shipping, marketing, customer support, and finance.Jobs within these functional areas are defined, and then recruitment begins for specific job titles and responsibilities.Typically, in the beginning, generalists who can perform multiple tasks are hired.As the company grows, recruiting becomes more specialized.For instance, at the outset, a business may have one marketing manager.But after two or three years of steady growth, that one marketing position may be broken down into seven separate jobs done by seven individuals.
All firms-new ones in particular-need an organization to efficiently implement their business plans and strategies.Many e-commerce firms and many traditional firms that attempt an e-commerce strategy have failed because they lacked the organizational structures and supportive cultural values required to support new forms of commerce.