The aim of this essay is to highligh the implications of the New Economy for the corporate strategy, to understand how companies use the Internet in their strategy to enhance their business. To answer this question, I will first explain what the New Economy is and the shifts from the Old Economy to the New Economy. Secondly, I will show the usage of the Internet in corporate strategy of companies.
[...] Managers are giving more importance to employees to make them responsible and self-governing in the aim to increase coordination of the enterprise. Government The government plays an important role in companies' corporate strategies. Government has increased collaboration with companies to support business growth to lessen impositions of regulations since the new economy. Moreover the government has decreased command and control over regulation and has given more attention to firm growth. Government plays an essential role by imposing rules that structure companies' strategies. [...]
[...] Within the last ten years we have entered into this model of motion with the Internet, and companies having to change their corporate strategies. Companies integrate new headways for information technologies into their policies of distribution, communication, purchase, human resources etc. Information technologies indeed have a deep impact in most of the sectors and in all the compartments of the management. In an economy that is based more than ever on the intangible and the activities of service - mostly concerned with data processing and personnel management, the information technologies and networks are an important factor in changing the policies and the practices of companies. [...]
[...] Example: at CISCO, the customer is directly connected to production lines and supply, where three quarters of the orders are completely automated. Getting ready for real-time action. Example: when an order arrives at Dell, it is immediately echoed on the manufacture of components. Using the company as a cradle of the initiatives in the e-commerce. Example: the implication of Carrefour in ooshop.com that consists of making on-line purchases and that leans on the logistic experiment of Carrefour. The Internet is a solution which mobilizes and restructures an organization in the aim to seize opportunities and manage risks. [...]
[...] Companies are learning to be more flexible in the aim to respond quickly to the new demand and they are externalizing more and more: the New Economy is characterised by the appearance of the internet and the electronic trade Using the Internet in the corporate strategy The role of the Internet The New Economy plays a significant role in corporate strategy. The New Economy undoubtedly upsets the rules of business: markets are more efficient, technologies are employed more smartly. Therefore companies offer their customers a larger choice with attractive prices thanks to various, easy to work, communication networks and distribution networks. [...]
[...] Secondly, I will show the usage of the Internet in corporate strategy companies Foundations and characteristics of the New Economy What is the Economy”? Referencing www.isuma.net; economy' can be defined as the series of changes in the economic landscape resulting from industry's massive investments in new information and communication technologies (I.C.T's) in the past 10 years. These include computers, software and telecommunications equipment and are broadly based on the ‘general purpose technology' of the microchip.” Referencing the ‘strategy in the New Economy' courses; New Economy is an economic model founded on the set of interrelated policies observed to achieve maximum sustainable long-term growth, in which networked information technologies dramatically increase the amount and value of information available to individuals, firms, markets and governments, allowing them to make more effective choices, and leading to superior performance. [...]
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