How Can the Organizational Structure of a Business Be Influenced by an E-Business Strategy?

Companies make changes to their business structure to accommodate the movement and fluctuations of the economic market. The increasing advancements of information technology can lead companies to develop e-business strategies, which in turn may force changes in the company's organizational structure.

Definition

According to BusinessDictionary.com, a company's organizational structure determines how it coordinates, controls and delegates responsibilities, power and roles. "This structure depends entirely on the organization's objectives and the strategy chosen to achieve them," continues BusinessDictionary.com.

Function

E-business strategies can involve the use of websites, social media networks or other programs and applications for enhancing the company's performance. These strategies can change a company's organizational structure because a manager must control and monitor the strategy.

Significance

Information technology and e-business represent a significant shift in business, which can lead to the need for change management. Change management is an approach to making transitions in a company that naturally result from changes in the business environment.

References

• BusinessDictionary.com: Organizational Structure
• EconomyWatch.com: E Business Strategy--Ecommerce Business Strategies