Task 2. I
There are a number of significant advantages to be gained from the successful implementation of e-business strategy. These include global reach, lower costs, traceable results, personalisation, openness and improved conversion rates (business link). Although the possible gains from e-business are both rewarding and prosperous, there are a number of risks which need to be considered prior to engagement. Upton (2001) identifies seven possible sources of risk which can be split into two categories, external and internal.
External: criminals, commercial environment and legal systems
Kenny’s needs to be aware that its potential customers will be providing personal and financial information on its site, when registering and conducting transactions, and therefore this data needs to be secured appropriately. Any fraudulent activity arising from unsuitable data management, could be both financially and reputation damaging.
It is necessary to take a proactive position with the product offering, Kenny’s needs to be aware of their rival ‘online’ competitors and ensure its goods are at a competitive level online. As the operation itself could be a global one, Kenny’s also needs to take into consideration fluctuations in exchange rates as these could notably impact the selling price. This could be countered by offering goods in a single currency and passing the currency conversion over to the prospective buyers.
As in any situation, Kenny’s has to ensure it adheres to legal frameworks and regulation relating to online content, so not as to infringe any legislation. This could be done by seeking professional advice prior to launch.
Internal: people, processes, technology, business strategies
Kenny’s needs to ensure any of its employees who are dealing with the e-business side of the company are aware of the aforementioned risks and correctly trained to a