The Economy: Luck or Leadership? - Essay Sample

Introduction

The modern economy has become very dynamic. As a result, some organizations have risen beyond the imaginations of the most brilliant analysts. On the other hand, others have lost a fortune or even collapsed contrary to the expectations of the majority. Thus, such observations have left people wondering whether this could be a product of luck, occurrences resulting from leadership styles or market transformations. On the same note, business analysts have asked an uncountable number of questions, but only one fact has prevailed. In an era dominated by treacherous business patterns, firms can only flourish through superior information strategies.

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For proper comprehension of the fact sited above, it is critical to understand that information technology became a necessity in the running of businesses towards the beginning 21st century. During this era, most business entities’ focus was to develop viable strategies around e-commerce, information systems improvements and provision of information flow mechanism within organizations. Consequently, determined organizations embraced technology and realized profound results in terms of sales and production. For instance, the organizations that embraced e-commerce were able to increase their purchases at a minimum cost. Due to outcomes such as the one highlighted above, internet-based information strategies became a critical prerequisite to business prosperity.

Today more than ever, businesses have continued to embrace modern technology in the bid to ensure that their information-gathering strategies achieve the best results. In light of the facts highlighted before this statement, information strategies revolve around embracing more sophisticated computers hardware, software and other communication peripherals. At a higher level, it also involves developing advanced employees training programs whose primary purpose will be creating an alert, informed, curious and creative mind with an ability to manoeuvre business undertaking in a highly dynamic economic landscape.

Typically, information strategy in business is composed of two parts, namely the technical and economic dimensions. Under the functional classification, it comprises the hardware and software architectures. On the other hand, the corporate perspective involves transaction procedures and information technology changes and their impact on business trends. The organizational view of information strategy focuses on the kind of effects information systems have on strategic business models. Ideally, before information strategy is implemented, proper planning and training are done to be able to accommodate the changes in information systems and business processes. A multifunctional team composed of managers and technical personnel from the information technology unit together with managers and technical staff from the functional business unit of the business developthe necessary plans and training manuals needed before any information strategy is implemented.

Background Information

Since its adoption, information strategy formulation as a practice has been paramount to the success of businesses internationally. In fact, upon adopting it, even the least performing firms have shown remarkable improvement in sales (Krotov, V. 2017). For example, in the year 1999, there were many business failures in the new dot.com companies that had started in the retail e-commerce sector. Research focusing on this era indicates that failure mentioned above was as a result of the inability to secure meaningful market. Earlier studies also confirm that around 300 websites were dealing in perfumes and cosmetics using a similar business model. Also established bricks and mortar businesses such as Wal-Mart and CVS had begun selling the same items online through their web sites. As a result, the existing intensity of competition causes a lot of difficulty for startup businesses in the course of their ventures. Besides, the startups were also unable to penetrate the market because they could not sell the leading products in the market. On the same note, analysts observed that for any startup to secure a share in the lucrative beauty market, it had been in partnership with such established entities as Lancôme, Estee Lauder and Clinique. Interestingly, the profitable share predominantly remained under the control of the three key market players. Clinique and Lancome were conquering the market through their Web sites, as Estee Lauder sought to create a similar platform. In the long run, the intention the firms mentioned above had was to bar other organizations from utilizing online marketing platforms. Thus e-commerce retailers in the beauty business could sell only more obscure prestige brands or mass-market brands. On the other hand, Estee Lauder sold exclusively in the luxury retailers and did not allow its goods to be displayed in drugstores or next to mass-market brands. For that matter, therefore, this clearly illustrates the importance of the role played by comprehensive information strategies towards the success of corporate entities. However, the information presented above also implies that mere possession of a website does no guarantee firms economic prosperity; sites require extremely effective information strategies to realize success.

E-commerce also demands that businesses design information strategies that enhance communication. After implementation e-commerce platforms lay strategies that generate traffic within a given corporate entity’s website, before this development, the effort to find and access a website belonging to a given business was the customer’s responsibility, (Krotov, V. 2017). In the process of information transformation, organizations realized that information strategies that would popularize their brands and websites among their target customers would give them a competitive edge. Consequently, such concepts as online searches and advertisement, particularly in the mainstream media became critical in the successful running of businesses using e-commerce platforms, (Kale, V. 2016). Over the years, information strategies have ensured that customers know and search their business websites. Most importantly, information technology has diversified the variety of search engines available to the customers (Chesney, R. 2020). The transformational activities surrounded such critical components of data collection and provision strategies as information technology some years back and even today indicate that the practice is inevitable in the current corporate landscape.

Information availability is critical when it comes to locating sites. Therefore, after communicating about the existence of a website, e-commerce ensures that the customer is effectively and consistently informed to secure their loyalty. In light of the information presented above, e-commerce platforms are information strategies designed in a way that makes customers perceive them as necessary and useful as far as their needs are concerned. Eventually, as time goes by and the sites master productive information strategies customers consider them to be of the high value the organizations they represent become highly productive and profitable (Krotov, V. 2017). At this point, the reputation of the organization alone persuasive enough to make customers believe that the organization’s product or service adds value to their lives. For instance, research points at such companies as Kinko that have benefited from elaborate information strategies they acquired through the purchase of dot.com competitors. In this case, Kinko Company benefited from the innovative internet information strategies that would have taken the time to design. It forewent the option of beginning from scratch and purchased Liveprint which already had a comprehensive system but lacked enough resources to proceed on its own. As a result, Kinko quickly reaped from Liveprint’s information technology and data management structures, thus saving time and funds. Imperatively, therefore, the technology and the correspondent information strategies Kinko bought together with Liveprint enabled its access to its potential customers they otherwise would not have managed to secure.

Although its undeniable relevance e-commerce has had its shortcomings in the past, imperatively, one of these shortcomings has been the failure to generate profit from websites, (Kale, V. 2016). However, with the emergence of new active information circulation techniques businesses with dynamic strategies have been to create unimaginably lucrative traffic on their sites. Besides, transactions occurring on such sites take the form of sales and purchases, advertisements fees, membership charges, and other online income sources. It is these avenues that have proven that a competent e-commerce platform with reliable information strategies can transform the financial status of the organization running under strategic leadership patterns.

Lastly, it is also essential to take note of the fact that in the past firms perceived internet-based transactions as problematic since the amounts they spent on building a website were far much less than the returns they obtained from the resulting sales (Krotov, V. 2017).

Problem Statement

Information strategy has been an essential way of in transforming businesses across the globe. Many organizations have resorted to the use of information technology. For instance, e-commerce retailers in the beauty business have been able to boost their sales through online marketing and creation of customer base. It is pertinent to note that many organizations which have employed the use of information technology and enhanced it with practical strategies have recorded profits in their businesses, increase in production and improved employee efficiency.

Despite numerous benefits accrued by the organization who have automated most of their activities using information strategies, many organizations still use the manual system in most of their operations hence not reaping the much-needed benefits. It is for this reason that this study will comparatively demonstrate the benefits that result from comprehensive, sophisticated information strategies by comparing profitability and production of businesses with advanced information management means against those with basic techniques.

OBJECTIVES

• To determine the influence of information strategy on organization production
• To assess the impact of information strategy on the efficiency of employees
• To establish the effect of information strategy on the sales and profitability of the organization

Research Questions

• The following questions will guide this study
• What influence does information strategy have on organization production?
• What are the challenges faced in the adoption of information technology by businesses?

Significance of the Study

About this study, we shall be able to understand the role played by information strategy on businesses. Moreover, we will be able to understand the challenges that the organization without elaborate information strategies encounter. In the process, the study will also enlighten those who do not consider information strategies important. Similarly, the study of the study will clarify the criticality of information strategies when developing long term organization goals. It will provide a kind of insight into various organization managers that will enable them to study emerging trends and run their activities accordingly.

Literature Review

Introduction

The core function of this chapter is to explore knowledge available due to earlier research. In that case, the reviews will be drawing their guideline from the inquiry's research questions. That includes; the influence of inform...