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Strategic Analysis and Choice for Forestry Enterprises Developing E-business

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Strategic Analysis and Choice for Forestry Enterprises Developing E-business

Strategic Analysis and Choice for Forestry

    Enterprises Developing E-business ?CHINESEFORESTRYSCIENCEANDTECHNOLOGY8O.88

    StrategicAnalysisandChoiceforForestry

    EnterprisesDevelopingE?-business

    HEXinwen~WANGXuehuaz

    FDF

    Abstract:Forestryindustryisanimportantcommonwealandfundamentalindustry.Forestry

    enterprises

    taketheburdenofecologicalconstruc.

    tionandsupplyofforestproducts,andeconomicalbenefits, ecologicalbenefits,andsocialbenefitsaswel1.However,electronicbusiness(e

    business),asacompletely

    newbusinessoperationmodel,willbringgreatopportunitiesandchallengestoforestryenterp

    rises.On

    thebasisofsimpleanalysisofe

    businessconceptionmode1.theinternalandexternalenvironmentfor forestryenterprisestodevelope

    businesswasthoroughlyanalysedandresearched,andfinallyeffective strategicoptionswereproposed.

    Keywords:electronicbusiness(ebusiness),forestryenterprises,strategicmanagement 1CoNCEPTIoNMoDEoFE.BUSINESS

    Withthedevelopmentofeconomicglobalization,the

    developmentandpopuIarizationofinformation

    processingtechnologyandwebcommunication,the

    improvementofbusinessautomationandenterprise

    administrationsystem.ebusinessappearsandgrows

prosperously.Ebusinessistoconductbusiness

    online.Whenenterprisesconnecttheirmainbusiness includingbetweenenterpriseSandbetween

    enterprisesandcustomers;while,thedefinitionfrom CanadianBusinessAssociationisratherstrict:e. businessisthedealofbuyingandsellinggoodsand services,andmoneytransferthroughdigital communication,includingallthefunctionswhich couldberealizedviaemail,electronicdataexchange, filetransfer,fax,teleconference,distantcomputer connectionbetweencompaniesandinnercompanies, withthestaff,customers,suppliersandcountersuchasmarketing,financialbalance,sellinga

    nd

    partnersthroughtheinternalandexternalenterprise netandinternet.thevariousbehaviorsinitaree

    business.Infact,however,therehasnotyetbeena definitionofebusinessthatisrathercomprehensive, authenticandaceeptablebymostpeople.

    OrganizationS,governments,companies,and commercialnegotiation.Fromthedefinitionsabove, itisobviousthatpeoplestatethedefinitionfrom differentpointsofviewinbothabroadsenseanda narrowsensefromtheirowndemands(ShaoBingjia 2003).Tobesimple.e-businessinabroadsenseiS toconductbusinessviaelectronicways,whileina academies,etc.defineitaccordingtotheirownnarrowsense,C-businessistoconductbusines

    s

    understandingandneeds.Forexample,thedefinition ofebusinessfromtheUnitedNationsOrganization ofEconomicCooperationandDevelopment(OECD)

    isthate.businessisbusinesSconductedonline 80

    throughtheinternet.Acompletedefinitionfore

    businessshouldincludethefollowingfouraspects: precondition(electronicinformationtechnology), core(knowledgeandskillofhumanbeings),

    systematized,serializedandeffectiveelectronic instrumentsandallkindsofeconomicactivities centeredoncommodityexchange.Theconception mcdeofebusinessisageneraldescriptionof

    ebusinessactivitiesintherealworld,formedby the,followingaspects,suchasthebusinessbody, electronicmarket,exchangeactivitiesand informationflow,capitalflow,logistics,etc.which coaidabstractlydescribebusinessrelationship betweeneachebusinesscontractbodyand

    ekctronjcmarket.

    Incontrasttothetraditionalbusinessmode.e

    businessmakesbusinessmodechangeprominently, characterizedbythefoliowingaspects:i) Globalization.Ebusinessisconductedinauniformed globalelectronicvirtualmarket,intheformof in':ernettomanagealltheaspectsofbusiness activities,anditcanconductbusinesswithany companyanywhereintheworld.2)Realtime.E

    businessisconductedthroughelectronicway,so alltherelatedbusinessinformationcanbetransferred irrmediatelyandthebusinesscanbefinishedina

raLhershorttime.Ebusinessischaracterizedby

    convenience,quickness,timesavingandsoon.3)

    Directness.Thebidirectionalmultioptionofe

    bsinessenablescommoditysellingplatformto

    connectcustomersviainternet,soastorealizethe directconnectionbetweenproductsandselling, whichcanreducethemidexchangeandmakethe

    businessexchangemuchmoredirectandthe echangecostmuchcheaper.

    2STRATEGICANALYSISON

    ORESTRYENTERPRISESTo

    DEVELOPE.BUSINESS

    Forforestryenterprises.todevelopebusinesswill

    f

    Vol6No42007

    be1nfluencedandlimitedbytheinterna1andexternal factorsaswel1.Basedonthestrategicmanagement ideasfromtheapproachofInternalFactors Evaluationmatrix(IFE)andExterna1Factors Evaluationmatrix(EFE)andSWOT(ASWOT

    analysisstandsforStrengths,Weaknesses, Opp0rtunitiesandThreatsandisasimpleand powerfulwaytoanalyzeacompany'spresent marketingsituation)(Fred2001),macroanalysisis

    conductedontheinternalandexternalconditionsfor enterprisestodevelope-business,toknowthe characters0fitsinternalandexternalconditionsand itschangingtendency,whichcanclearlyshowtheir ownadvantagesanddisadVantages,external opportunitiesandchallenges,tostimulatetheir

    advantagesandfullymakeuseoftheopportunities, andtoavoidtherisks,thereforetodeveloptheire

    businessrLiFuhaieta1.2004).

    2.1Internalanalysis

    2.1.1Financialstatus

    Foralongtime,influencedbyforestryeconomic policiesandlimitedbytheirownmanagementlevel, forestryenterprisesareinshortofmoneyingenera1. Atpresent,manyofthemareindoublecrisisof resourcecrisisandeconomicdifficulty,inaddition totheimplementofthelawtoprotectnaturalforestry resources.Therefore,inordertochangethis situation,onJune27,2005,ChinaBanking RegulatoryCommissiontogetherwithStateForestry AdministrationofPeople'sRepublicofChinaissued TheNoticeofFinancialInstitutionDebtFreeLists

    andDebtFreeAmountfo,.theForestryIndustrial EnterprisesintheNatureReserveRegion(No.j), whichflees8.811billionRMByuanofdebtof623 enterprisesimplementingnaturalreservesin19 provincesincludingYunnanProvince.Besides,for 81

CHINESEFORESTRYSCIENCEANDTECHNOLOGY

    theforestryenterprises,thecapacityoffund

    raisingisratherinadequateduetolimitedwaysof fundraisingandlimitednationalpolicysupport, ther.efore,thereismuchdifficultyingreatfund raising.Thefactorsabovehaveindirectlycaused thecapitalshortageforforestryenterprisestodevelop

    ebusiness.Capitalisveryimportantfordeveloping ebusiness.becauseitisalongtermcapitalproject

    needingagreatsumofmoneypouringintothe infrastructureanditcannotgainprofitsinashort time,thuscapitaliscrucialforenterprisesto systematicallydevelopebusinessconstruction.

    2..2Businesslineandcompetitivestatus

    Forestryenterprisesaretocultivate,manage,protect anddevelopandutilizeforestryresources,andthey areproductiveenterprisestoprovidewoodand multiplewoodenproductsandmaintainland ecologicalbalance,whoseoperationobjectsare forestryproductsandwoodenproductstogether withbyproductsbasedonforestryresources. Forestryresourcesarelivingmaterialscharacterized byseasonsandregionsdeterminedbytheirown 2..3Productionfacilitystatus

    Inforestryenterprises,thehighfrequentusageof productionfacilities,andtheeasinesstoexpand productionfacilitiescanbeintegratedwithenterprise resourceplanningfERP)inebusinesssystemto

    conductdistantdesign,toproducebyrequest,and togaintechnologicalsupportforenterprisesfrom otherregions.Besides,thecoreinformation technologyinebusinesssystemcanbeusedto

    optimizetheirtraditionalcraftworkprocess,thento helpgraduallyrealizeprocessingmechanizationand automation,producingprocessautomationand craftworkdesigncomputerization.Afterthe implementationofnaturalreservepolicy,some

forestryenterprisesarefacedwithbusiness

    transformation,andthetechnologiesandfacilitiesare

    notusedatal1.However,viae-businesssystem,

    forestryresourcescanbeintegratedandthusChinese

    forestryenterprisescanimplementthegoingout

    strategyforforestrytodevelopoverseasforestry

    resources,whichareofgreatsignificanceinmaking

    upforthewoodshortageinChina.

    innercharacters.besidesthis.theywillbeinfluenced2..4Marketingability anddestroyedbyallkindsofnaturaldisasters,social

    andhumanfactorsduringtheirgrowingprocess.Mostoftheforestryenterprisesarelocatedinrural

    Consequently,thegrowingresultisunpredictable,areas,withinconvenienttransportationandlackof

    andthereforecancausetheweaknessofenterprises,first

    handinformation,whichputsthemata

    smalloperationscope.poorabilitytodefendrisksdisadvantageincompetition.While,e

    business,based

    andunobviouscompetitiveness.Inordertosolveit.oninternet,breaksthelimitationoftimeandspace,

    asetofefficient,effectiveandaccurateinformationwhichmakeupthedemerits,andthelocationisnot

    collectionandtransfersystemsshouldbeestablishedacrucialfactortoimpactforestryenterprises'

    tomakerapidinformationtransferandmakeforestrycompetitiveness,whichenablesforestryenterprises

    enterprisesrespondquicklytomakeupfortheirtorapidlybuilduptheirlivingspacelikeotherkinds

    demerits.Then.e

    businesssystembasedoninternetofenterprisesandtocooperateandconductbusiness

canbeusedtoeffectivelypromoteenterprises'withotherenterprisesathomeand/orabroad.In

    competitiveness(TianRuieta1.2000)addition.e

    businessishelpfulforforestryenterprises

    toobtainallkindsofinformationeasilyandgetraw materialsandservicesfromthemarketaswell;and itishelpfultorealizezerostorageandreduce

    operationcost;anditisabletomakebrokers' advantagenottooobviousandreducecirculation costandbusinessconducttime,thentofastencapital circulation.Forestryenterprisescanrapidlyand

    Vol6N.42007,

    fashionedway,witharatherlargeinstitution, overstaffing,andlowefficiencyandinformation

    blocking.Furthermore,theadministrativestaffis notfullyawareofthefundamentalchangescaused byebusinesstothedevelopmentofenterprisesand themarketingmethods,andnotfullyconsciousof thesignificanceofowninginformationmarketsin accuratelyconveythelatestproductsandservicestheageofintellectualeconomy.Duetotheir

    one

    informationtocustomersallovertheworldthrough ebusiness;andtheyarecapabletoconveniently collectfeedbacksonsalesservicefromcustomers topromoteaftersaleserviceleve1.Ebusiness

    enablesforestryenterprisesandcustomersto interacteasilyandrealizetheface-to-face

    communicationbetweenthem.Eventually,e

    businessenablesforestryenterprisestoownmore

    marketspaceandexpansionspacesoastocreate morebusinessopportunitiesforthemselves(Yu Botaoeta1.2005).

    2.J.5Capacitytoresearchanddevelop

    Manyforestryenterprisesdonothavespecial researchdepartmenttospecializeinproduct deve1oPment.andnewproductsandnew

    technologiesareseldomfromthemselvesbutmainly fromacademicinstitutions,collegesanduniversities, andintroductionofforeignfacilities,craftworkand technology.Asforebusiness.forestryenterprises lackintellectuals,technologiesandmanagement advantages,whichmakessomeoftheirwebsites unchangedforever,evenincludingtheinformation onenterpriseproducts,tosaynothingofonline maintenance,onlineappealandonlinebusiness 2.,.6Quantitiesandqualitiesofadministrativestaff Mostforestryenterprisesaremanagedinanold

    sidedknowledgeaboutebusinessdevelopment.

    ebusinesshasnotbeeninfactreallyplannedto putintopractice.

    2.J.7Quantitiesandqualitiesofworkstaff Mostforestryenterprisesarelocatedinruralareas andlackoffinancialsupports,whichleadtoserious outflowoftechniciansandhighqualityworkstaff

    inadditiontotheweakappealtointellectuals. Stagnancyofonthe-jobtrainingcausesthefallof intellectuallevelandtechnicallevelforworkstaff andthusmakesitdifficultforstafftoacceptnew technology,whicheventuallyleadstothedifficulty

inpopularityandapplicationofebusinessinforestry

    enterprises.

    2.J.8Organizationalstructures

    Atpresent,someoftheorganizationalstructuresfor forestryenterprisesareestablishedaccordingtothe demandofplannedeconomyandtheproducing charactersoflargescalemechanizationinindustrial age,mainlycharacterizedbystraightlinesystemand

    careersystem;whilesomeenterpriseshavemade innovationformodernenterprisesystem,initialing innovationintogroupsandcompanieslimitedand holdingshares.Howeverwhetherintraditional 0rganizati0nalstructuresorinmoderncompany systemforforestrycompanies,thedecisionmaking

,

    r/-,J

    CHINESEFORESTRYSCIENCEANDTECHNOLOGY

    iscomparativelycentered.Therefore,oncethetop managersrealizethegreatbenefitsbroughtbyebusiness

    whenfacedwithfiercemarketcompetition,theycanbe quickmovedtomakethedecisiontodevelopebusiness

    fromthetoptothebottominordertogetcommercial benefits.

    2..9Goalsandstrategiesinthepast

    Theunbalancedusageofinternet,participationintoe

    businessanddevelopmentofe-businesswasduetolarge differencesinscaleofforestryenterprises,anddueto theaimlessnessorblurredBessforebuSiness

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