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I found this article to be interentings because within module 1 it talks about levels of management. This is a company that helps improve other businesses in a variety of ways including levls of management

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Management is the core of any successful organization. It's the driving force that shapes a company's direction, ensures efficient operations, and fosters a productive work environment. Within this crucial function, management is structured into distinct levels, each with unique roles, responsibilities, and challenges. In this article, we'll delve into the various levels of management in a company, shedding light on their significance and functions.

Introduction to Management Levels

Management levels in an organization represent a hierarchical structure that defines the chain of command and responsibility. These levels are essential for ensuring that tasks are delegated, decisions are made efficiently, and goals are achieved. Understanding these levels is fundamental to managers and employees, as it clarifies the organizational structure and helps in effective communication.

Top-Level Management

At the summit of the organizational hierarchy, we find the top-level management. This group typically includes the Chief Executive Officer (CEO), President, and other high-ranking executives. Their primary focus is on long-term strategic planning and decision-making. Top-level managers are responsible for setting the organization's overall direction, defining its mission and vision, and formulating strategies to achieve these objectives. They often work closely with the board of directors and are accountable for the company's performance and profitability.

Top-level managers also serve as the bridge between the organization and external stakeholders such as investors, regulatory bodies, and the public. They make critical decisions that can profoundly impact the company's future, including mergers and acquisitions, significant investments, and changes in corporate structure.

Middle-Level Management

Under the top-level management, we have middle-level managers. This group comprises department heads, regional managers, and other individuals who oversee specific areas or divisions within the organization. Middle-level managers play a pivotal role in translating the strategic goals set by top-level management into actionable plans.

Their responsibilities include resource allocation, setting departmental objectives, and supervising teams. Middle managers are a crucial link between top management and front-line employees, ensuring effective strategies are implemented. They are responsible for problem-solving within their respective departments and regularly report progress and challenges to top management.

Front-Line Management

The front-line, or first-line, managers are the closest to day-to-day operations within the organization. These managers include team leaders, supervisors, and others directly overseeing employees' work. Their primary responsibilities involve managing staff, assigning tasks, and meeting operational goals.

Front-line managers are instrumental in maintaining discipline, resolving conflicts, and providing guidance to employees. They play a critical role in fostering a positive work environment and are often the first point of contact for employees seeking support or advice. Their actions and decisions have a direct impact on productivity and employee morale.

Hierarchy and Organizational Structure

Understanding how these management levels fit within the organizational structure is essential. The system can vary significantly between organizations, with some having a more hierarchical approach while others adopt a flatter, more decentralized structure. Each management level reports to the level above it in a hierarchical structure, creating a transparent chain of command.

On the other hand, organizations with a flatter structure might have fewer management levels, with managers having broader responsibilities and more direct interaction with front-line employees. The choice of structure often depends on the company's size, industry, and strategic goals.

Communication Flow

Effective communication is vital to the success of any organization, and it plays a crucial role in how management levels interact. Information flows both top-down and bottom-up within an organization. Top-level managers communicate strategic goals and directives to middle and front-line managers, who, in turn, relay information to their teams.

Conversely, front-line employees provide feedback, insights, and operational data to their immediate managers, who then pass on relevant information to middle- and top-level management. This two-way communication ensures that the organization functions cohesively and adapts to changing circumstances.

Decision-Making at Each Level

One of the critical distinctions between management levels is the type of decisions they make. Top-level managers make strategic decisions that have far-reaching consequences for the organization. These decisions involve long-term planning, significant investments, and company direction changes.

Middle-level managers are responsible for tactical decisions that align with the organization's strategic goals. These decisions may involve resource allocation, departmental restructuring, and process improvements. Front-line managers make operational decisions that affect daily tasks and activities, such as work assignments, scheduling, and quality control.

The decision-making process becomes more structured as you move up the management hierarchy. Top-level decisions often involve extensive analysis, consultation, and consideration of external factors, whereas front-line decisions are typically more immediate and focused on achieving short-term objectives.

Leadership Styles

Management levels are often associated with different leadership styles. Top-level managers are expected to exhibit visionary leadership, setting a compelling direction for the organization and inspiring others to follow. They must be effective communicators, decision-makers, and strategic thinkers.

Middle-level managers often adopt a coaching or transformational leadership style. They work closely with their teams, providing guidance, support, and motivation. This leadership style emphasizes collaboration and employee development.

Front-line managers often employ a more hands-on or transactional leadership style, focusing on day-to-day tasks and ensuring employees meet performance expectations. However, the leadership style can vary based on the manager's personality and the organization's culture.

Challenges Faced by Managers

Each level of management faces its own unique set of challenges. Top-level managers grapple with high-pressure decision-making, the need to balance short-term and long-term goals, and the responsibility for the organization's overall success.

Middle-level managers often face communication challenges, as they must bridge the gap between top management's strategic vision and the front-line employees' daily tasks. They also deal with departmental conflicts and resource constraints.

Front-line managers encounter challenges related to employee motivation, performance management, and maintaining a harmonious work environment. They must juggle various responsibilities and respond quickly to operational issues.

Career Progression

Understanding the various management levels can be valuable for individuals aspiring to managerial roles. Career progression typically involves moving from front-line management to middle management and eventually to top-level management. Many organizations offer training and development programs to help employees acquire the skills and experience needed to advance in their careers.

For example, an employee may start as a team leader (front-line manager) and become a department manager (middle-level manager) after gaining experience and demonstrating leadership abilities. With further experience and qualifications, they may have the opportunity to reach the top management level.

Training and Development

Training and development are pivotal in preparing individuals for management roles at all levels. Companies invest in programs that enhance managerial skills, leadership capabilities, and industry-specific knowledge. These programs can include workshops, seminars, mentoring, and on-the-job training.

Front-line managers often receive training in conflict resolution, time management, and team leadership. Middle-level managers may participate in courses related to project management, financial analysis, and strategic planning. Top-level managers often engage in executive education programs focusing on leadership, innovation, and global business trends.

The Role of Technology

The advent of technology has transformed the way managers at all levels operate. Digital tools and software have become integral to organizations' decision-making, communication, and data management. Here's how technology is impacting each level of leadership:

Top-Level Management:

1. Data Analytics: Top-level managers rely on advanced data analytics tools to gather insights into market trends, consumer behavior, and competitive intelligence. These insights inform strategic decisions.

2. Communication Platforms: Technology enables seamless communication with stakeholders, including board members, investors, and employees, irrespective of geographical location.

3. Strategic Planning Software: Specialized software helps create and simulate strategic plans, making assessing different scenarios and their potential impact easier.

Middle-Level Management:

1. Project Management Tools: Middle managers often use project management software to allocate resources, track progress, and ensure that departmental objectives align with the organization's strategic goals.

2. Collaboration Software: These tools facilitate team collaboration, document sharing, and real-time communication, streamlining operations and improving efficiency.

3. Performance Metrics and Dashboards: Technology allows middle managers to access real-time performance metrics, enabling data-driven decision-making and quick strategy adjustments.

Front-Line Management:

1. Scheduling and Workforce Management Software: Front-line managers use scheduling software to optimize work shifts, manage employee schedules, and ensure staffing levels meet operational needs.

2. Quality Control Systems: Technology-driven quality control systems help monitor and maintain product or service quality daily.

3. Employee Feedback Apps: Managers can gather feedback using mobile apps or online surveys, fostering continuous improvement and engagement.

Hypothetical Examples

Let's examine a few examples to illustrate how different organizations manage their various management levels:

Example 1: XYZ Corporation

XYZ Corporation, a global technology company, has a well-defined management hierarchy. The CEO oversees the entire organization, with divisional presidents leading specific business units. Middle-level managers within each division are responsible for product development, marketing, and operations. Front-line managers supervise engineers, marketers, and support staff.

This structure allows XYZ Corporation to maintain a transparent chain of command while encouraging innovation on the front lines. Top-level managers set the company's strategic vision, and middle-level managers execute it through their divisions. Front-line managers ensure employees' day-to-day work aligns with the company's goals.

Example 2: ABC Healthcare

ABC Healthcare, an extensive hospital network, adopts a more decentralized structure. The CEO oversees the network, but individual hospitals have executive directors with significant decision-making autonomy. Each hospital has its middle-level management team responsible for departmental operations, while front-line managers oversee nurses, technicians, and support staff.

This structure allows ABC Healthcare to adapt to local healthcare needs effectively. The CEO sets overarching policies and standards, while hospital-level executives tailor operations to meet specific patient demands and regulatory requirements. Front-line managers ensure that patient care is efficient and of high quality.

Future Trends

As we look ahead, several emerging trends will shape the levels of management in organizations:

1. Remote Work: The COVID-19 pandemic accelerated the adoption of remote work. Managers at all levels must adapt to leading remote teams effectively and promoting a positive remote work culture.

2. Globalization: Companies are increasingly operating on a global scale. Top-level managers will face challenges related to cultural diversity, international regulations, and market expansion.

3. Sustainability: Sustainability concerns will be more significant in decision-making at all levels. Managers will need to integrate environmental and social responsibility into their strategies.

4. Artificial Intelligence: AI-powered tools will assist managers in data analysis, forecasting, and decision-making. Understanding and using AI effectively will be crucial.

5. Data Security: With the increasing reliance on digital data, cybersecurity will become a top priority for all management levels to protect sensitive information and maintain business continuity.

Conclusion

In conclusion, understanding the levels of management in a company is vital for both employees and aspiring managers. Each group has unique roles, responsibilities, and challenges, and they work together to ensure the organization's success. Effective communication and collaboration among these levels are vital to achieving the company's goals.

As we navigate the ever-evolving business landscape, technology, trends, and the changing nature of work will continue to influence how management functions at all levels. By staying informed and adaptable, managers can lead their organizations to continued success in the future.

Management is both an art and a science, and mastering it at each level is a journey that requires dedication, learning, and a deep understanding of the organization's mission and vision. With the right skills and a commitment to excellence, managers can significantly impact their organizations and the broader business world.

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Understanding the Levels of Management in an Organization - Aurora Training Advantage

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Management is the core of any successful organization. It's the driving force that shapes a company's direction, ensures efficient operations, and fosters a productive work environment. Within this crucial function, management is structured into distinct levels, each with unique roles, responsibilities, and challenges.

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I found this image very important because it helps show visually the different tiers of businesses.

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As a honda owner, I am interested in the company and learning about Corporate Social Responsibility made me do a deep dive into different companies and see what they are going to do for the world in the future. I think it is super interesting they are planning to be carbon neutral!

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Rent the Runway is a very interesting comapny and since I am into fashion this is very me. This company allows for people to be able to wear high end designer brands at half the cost to the envirnoment. They elimate waste, offset carbon emissions, and even displace new production. It is so interesting to see such a cool company be so environmentally safe!

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Ensure our workforce remains diverse and that leadership reflects the population of individual contributors - Maintain on average 40% representation of racial and ethnic minorities for the US corporate workforce through fiscal year end 2026. - Maintain on average 50% representation of individuals identifying as women and non-binary in the US workforce through fiscal year end 2026.

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Another interesting factor from module 3 was the effects of cultral differences on global businesses. Diversity is a very important factor within business however people need to understand that it is about respecting others. Many people have different cultures and in order to do trades and work together globallly we need to understand and respect diversity.

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The World Trade organization is very interesting because it deals with the rules of trade between nations and globally I think that we need to have more focus on learning about globalization because this is often a topic that is not discussed. We should be more familarized with the different levels of trade dependencies

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On 23 April, members held a second CTE thematic session titled " Trade Contributions to Energy Transition Efforts concerning Climate Adaptation and Mitigation." The United States and Kenya, co-facilitators of the session, said in their report back to the Committee that members benefited from the expertise provided in the session's two panels. The first panel explored the trade landscape of rapidly evolving areas of clean energy, including hydrogen and wind energy, while the second looked at how different trade-related climate measures can support the clean energy transition. Further discussions highlighted the diversity of approaches and policies that countries are using.

The co-facilitators of the session also noted that some speakers underlined the need to recognize the different starting point in countries' levels of development when designing policies. They emphasized the need for coherence in measures, including in carbon measurement methods and standards, to accelerate decarbonisation.

On 24-25 April, members held the regular meeting of the CTE, which implemented several procedural improvements under the WTO-wide exercise of "reform by doing". The outgoing Chair, Ambassador José Valencia of Ecuador, acknowledged members' intensive committee work conducted last year in the run-up to the 13th Ministerial Conference held in February in Abu Dhabi. Ambassador Valencia handed over the chairmanship to Ambassador Erwin Bollinger of Switzerland at the end of the meeting. Ambassador Valencia's video message released to mark the last day of the meeting is available here.

Part of the meeting was dedicated to the ongoing discussions on reinvigorating the Committee. A new proposal was presented by Kenya, on behalf of the African, Caribbean and Pacific Group of States, titled " Dedicated Multilateral Discussions on the Trade Aspects and Implications of Certain Environmental Measures. Another new proposal was presented by the United States titled " Understanding the Opportunities and Challenges of the Green Transition: Coherence and Interoperability of Trade-Related Climate Measures". Members also had a follow-up discussion on previously submitted proposals by China, India, Paraguay and South Africa.

The Committee also heard updates on the European Union Green Deal, the United Kingdom's forest risk commodities regulation and consultations on a carbon border adjustment mechanism. Members furthermore were briefed on developments concerning the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP); the Trade and Environmental Sustainability Structured Discussions (TESSD), including the outcomes of TESSD's Informal Working Group on Trade-related Climate Measures; the Fossil Fuels Subsidy Reform initiative (FFSR); and new developments in preparation for the Agreement on Climate Change, Trade and Sustainability (ACCTS).

Members were also briefed on the work of the Coalition of Trade Ministers on Climate, and the Forest, Agriculture, and Commodity Trade (FACT) Dialogue. In addition, updates on the Convention on Biological Diversity and nature-positive trade were provided. The WTO Secretariat presented the latest updates on the WTO Environmental Database. Members also heard perspectives on the UNEP Draft Agreement on Plastic Pollution and heard briefings from observer organizations.

The next Committee meeting is tentatively scheduled for 19-20 June.

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Energy transition at centre of discussions in environment committee and thematic session

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WTO members continued to explore opportunities and challenges emerging in the links between trade and environment policies on 23-25 April, holding the second thematic session on trade's role in the clean energy transition initially discussed in November 2023 back-to-back with the meeting of the Committee on Trade and Environment (CTE).

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One thing that I loved that this module showed is the different types of processes you make when making a decison. There are multiple processes to making different decisions and I think that it is very unique. The steps of making a decision are as follows Identify the Problem,Establish Decision Criteria, Weigh Decision Criteria, Generate Alternatives, Evaluate Alternatives, and Select Best Alternative.

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Something that module 4 brought up was e-commerece. E-commerece has grown over the past 5 years into a big industury mostly due to the pandemic which gave it a kickstart. The younger generation will most likely use this more likely then in stores.

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To fully understand ecommerce, let's take a look at its history, growth and impact on the business world. We will also discuss some advantages and disadvantages to ecommerce, plus predictions for the future.

Types of Ecommerce

Generally, there are six main models of ecommerce that businesses can be categorized into:

Let's review each type of electronic commerce in a bit more detail.

1. Business-to-Consumer (B2C).

B2C ecommerce encompasses transactions made between a business and a consumer. B2C is one of the most popular sales models in the ecommerce context. For example, when you buy shoes from an online shoe retailer, it's a business-to-consumer transaction.

2. Business-to-Business (B2B).

Unlike B2C, B2B ecommerce encompasses sales made between businesses, such as a manufacturer and a wholesaler or retailer. B2B is not consumer-facing and happens only between businesses.

Business-to-business sales often focus on raw materials or products that are repackaged before being sold to customers.

3. Consumer-to-Consumer (C2C).

C2C is one of the earliest forms of ecommerce. Customer-to-customer relates to the sale of products or services between customers. This includes C2C selling relationships, such as those seen on eBay or Amazon.

4. Consumer-to-Business (C2B).

C2B reverses the traditional ecommerce model, meaning individual consumers make their products or services available for business buyers.

For example, the iStockPhoto business model in which stock photos are available online for purchase directly from different photographers.

5. Business-to-Administration (B2A).

B2A covers the transactions made between online businesses and administrations. An example would be the products and services related to legal documents, social security, etc.

6. Consumer-to-Administration (C2A).

C2A is similar to B2A, but consumers sell online products or services to an administration. C2A might include online consulting for education, online tax preparation, etc.

B2A and C2A are focused on increased efficiency within the government via the support of information technology.

History of Ecommerce

Ecommerce was introduced about 40 years ago in its earliest form.

Since then, electronic commerce has helped countless businesses grow with the help of new technologies, improvements in internet connectivity, added security with payment gateways, and widespread consumer and business adoption.

Ecommerce Timeline

1969: CompuServe is founded.

Founded by electrical engineering students Dr. John R. Goltz and Jeffrey Wilkins, early CompuServe technology was built utilizing a dial-up connection.

In the 1980s, CompuServe introduced some of the earliest forms of email and internet connectivity to the public and dominated the ecommerce landscape through the mid-1990s.

1979: Michael Aldrich invents electronic shopping.

English inventor Michael Aldrich introduced electronic shopping by connecting a modified TV to a transaction-processing computer via telephone line.

This made it possible for closed information systems to be opened and shared by outside parties for secure data transmission - and the technology became the foundation for modern ecommerce.

1982: Boston Computer Exchange launches.

When Boston Computer Exchange launched, it was the world's first ecommerce company.

Its primary function was to serve as an online market for people interested in selling their used computers.

1992: Book Stacks Unlimited launches as first online book marketplace.

Charles M. Stack introduced Book Stacks Unlimited as an online bookstore. Originally, the company used the dial-up bulletin board format. However, in 1994 the site switched to the internet and operated from the Books.com domain.

1994: Netscape Navigator launches as a web browser.

Marc Andreessen and Jim Clark co-created Netscape Navigator as a web browsing tool. During the 1990s, Netscape Navigator became the primary web browser on the Windows platform, before the rise of modern giants like Google.

1995: Amazon launch.

Jeff Bezos introduced Amazon primarily as an ecommerce platform for books.

1998: PayPal launches as an ecommerce payment system.

Originally introduced as Confinity by founders Max Levhin, Peter Thiel, Like Nosek and Ken Howery, PayPal made its appearance on the ecommerce stage as a money transfer tool.

By 2000, it would merge with Elon Musk's online banking company and begin its rise to fame and popularity.

1999: Alibaba launches.

Alibaba Online launched as an online marketplace with more than $25 million in funding. By 2001, the company was profitable. It went on to turn into a major B2B, C2C, and B2C platform that's widely used today.

2000: Google introduces Google AdWords as an online advertising tool.

Google Adwords was introduced as a way for ecommerce businesses to advertise to people using Google search.

With the help of short-text ad copy and display URLs, online retailers began using the tool in a pay-per-click (PPC) context. PPC advertising efforts are separate from search engine optimization (SEO).

2004: Shopify launches.

After trying to open an online snowboarding equipment shop, Tobias Lütke and Scott Lake launched Shopify. It's an ecommerce platform for online stores and point-of-sale systems.

2005: Amazon introduces Amazon Prime membership.

Amazon launched Amazon Prime as a way for customers to get free two-day shipping for a flat annual fee.

The membership also came to include other perks like discounted one-day shipping and access to streaming services like Amazon Video and members-only events like "Prime Day."

This strategic move helped boost customer loyalty and incentivize repeat purchases. Today, free shipping and speed of delivery are the most common requests from online consumers.

2005: Etsy launches.

Etsy launched, allowing crafters and smaller sellers to sell products (including digital products) through an online marketplace. This brought the makers community online - expanding their reach to a 24/7 buying audience.

2009: BigCommerce launches.

Eddie Machaalani and Mitchell Harper co-founded BigCommerce as a 100% bootstrapped ecommerce storefront platform.

Since 2009, more than $25 billion merchant sales have been processed through the platform, and the company now has headquarters in Austin, San Francisco and Sydney.

2011: Google Wallet introduced as a digital payment method.

Google Wallet was introduced as a peer-to-peer payment service that enabled individuals to send and receive money from a mobile device or desktop computer.

By linking the digital wallet to a debit card or bank account, users can pay for products or services via these devices.

Today, Google Wallet has joined with Android Pay for what is now known as Google Pay.

2011: Facebook rolls out sponsored stories as a form of early advertising.

Facebook's early advertising opportunities were offered to Business Page owners via sponsored stories. With these paid campaigns, ecommerce businesses could reach specific audiences and get in the news feeds of different target audiences.

2011: Stripe launches.

Stripe is a payment processing company built originally for developers. It was founded by John and Patrick Collison.

2014: Apple Pay introduced as a mobile payment method.

As online shoppers began using their mobile devices more frequently, Apple introduced Apple Pay, which allowed users to pay for products or services with an Apple device.

2014: Jet.com launches.

Jet.com was founded by entrepreneur Marc Lore (who sold his previous company, Diapers.com, to Amazon.com) along with Mike Hanrahan and Nate Faust.

The company competes with Costco and Sam's Club, catering to folks looking for the lowest possible pricing for longer shipping times and bulk ordering.

2017: Shoppable Instagram is introduced.

Instagram Shopping launched with ecommerce partner BigCommerce. Since then, the service has expanded to additional ecommerce platforms and allows Instagram users to immediately click an item, and go to that item's product page for purchase.

2017: Cyber Monday sales exceed $6.5B.

Ecommerce set a new record when online sales broke $6.5 billion on Cyber Monday - a 17% increase from the prior year.

2020: COVID-19 Drives Ecommerce Growth.

COVID-19 outbreaks around the globe pushed consumers online to unprecedented levels. By May of 2020, ecommerce transactions reached $82.5 billion - a 77% increase from 2019. It would have taken four to six years to reach that number looking at traditional year-over-year increases.

Consumers have moved online to make purchases normally made in physical stores, such as food and household items, apparel, and entertainment. Many consumers say they'll continue to use online storefronts until a COVID-19 vaccine is available.

Growth of Ecommerce

Ecommerce has come a long way since the CompuServe launch in 1969. Changes in technology have certainly driven ecommerce growth, along with global circumstances. Today, ecommerce must meet consumers' expectations for safety and convenience.

The United Parcel Service Inc. rode a pandemic-fueled surge in ecommerce to higher profits and a 13% jump in revenue during the June 2020 quarter. During that same quarter, UPS saw a 65% increase in deliveries to residences.

In 2019, U.S. e-retail sales on Amazon increased by 19.1% and amounted to over 222.6 billion U.S. dollars.

By the end of 2020, U.S. spending online is expected to reach approximately $375 billion. Experts forecast that by the end of 2024, online spending will surpass $476 billion.

The Impact of Ecommerce

The impact of ecommerce is far and wide with a ripple effect from small business to global enterprise.

1. Large retailers are forced to sell online.

For many retailers, the growth of ecommerce has expanded their brands' reach and positively impacted their bottom lines. But for retailers who have been slow to embrace the online marketplace, the impact has been different.

Retailers that fall into the middle ground are the ones feeling the biggest changes in response to the impact of ecommerce.

In February of 2019, online sales narrowly surpassed general merchandise stores for the first time, including department stores, warehouse clubs and supercenters. Because Amazon Prime took away the price of shipping, more consumers are comfortable with online shopping.

2. Ecommerce helps small businesses sell directly to customers.

For many small businesses, ecommerce adoption has been a slow process. However, those who've embraced it have discovered ecommerce can open doors to new opportunities.

Slowly, small business owners are launching ecommerce stores and diversifying their offerings, reaching more customers and better accommodating customers who prefer online/mobile shopping.

Pre-pandemic, small businesses were working to expand their ecommerce presence. Today, 23% of small business owners feel they'll have to strengthen their ecommerce capabilities in order to survive in a post-pandemic world. Another 23% of small business owners have created a website or updated their existing one since COVID-19 lockdowns began.

3. B2B companies start offering B2C-like online ordering experiences.

B2B companies are working to improve their customer experiences online to catch up with B2C companies. This includes creating an omnichannel experience with multiple touchpoints and using data to create personalized relationships with customers.

Ecommerce solutions enable self-service, provide more user-friendly platforms for price comparison, and help B2B brands maintain relationships with buyers, too.

By 2026, B2B transactions are expected to reach $63,084 billion.

4. The rise of ecommerce marketplaces.

Ecommerce marketplaces have been on the rise around the world since the mid-1990s with the launch of giants we know today, such as Amazon, Alibaba, and others.

In this chart, we can see that Amazon is the outlier in regard to ecommerce marketplace growth, but we can see that others are making headway.

By offering a broad selection and extreme convenience to customers, they've been able to quickly scale up through innovation and optimization on the go.

Amazon in particular is known for its unique growth strategy that has helped them achieve mass-adoption and record-breaking sales.

But Amazon doesn't do this alone. As of 2020, 52% of products sold on Amazon were sold by third-party sellers (i.e. not Amazon).

Those sellers also make high profits from the sales on the marketplace, though they are required to follow strict rules enforced by Amazon.

5. Supply chain management has evolved.

Survey data shows that one of ecommerce's main impacts on supply chain management is that it shortens product life cycles.

As a result, producers are presenting deeper and broader assortments as a buffer against price erosion. But, this also means that warehouses are seeing larger amounts of stock in and out of their facilities.

In response, some warehousers are now offering value-added services to help make ecommerce and retail operations more seamless and effective.

These services include:

Separation of stock/storage for online vs. retail sales.

Different packaging services.

Inventory/logistics oversight.

6. New jobs are created but traditional retail jobs are reduced.

Jobs related to ecommerce are up 2x over the last five years, far outpacing other types of retail in regard to growth. However, growth in ecommerce jobs is only a small piece of the overall employment puzzle.

A few quick facts on how ecommerce has impacted employment:

The flip side of this, however, is that upticks in efficiency paired with a shift away from traditional retail may lead to some job losses or reductions in workforces as well.

As with any major market shift, there are both positive and negative impacts on employment.

7. Customers shop differently.

Ecommerce (and now omni-channel retail) has had a major impact on customers. It is revolutionizing the way modern consumers shop.

Today, we know that 96% of Americans with access to the internet have made a purchase online at some point in their lives and 80% have made a purchase online in the past month.

And not only do customers frequently use ecommerce sites to shop: 51% of Americans now prefer to shop online rather than in-store.

Millennials are the largest demographic of online shoppers (67%), but Gen X and baby boomers are close behind at 56% and 41% participating in online shopping activities respectively.

8. Social media lets consumers easily share products to buy online.

Researchers have discovered that ecommerce has made an interesting social impact, especially within the context of social media.

Today, ecommerce shoppers discover and are influenced to purchase products or services based on recommendations from friends, peers and trusted sources (like influencers) on social networks like Facebook, Instagram and Twitter.

If you've ever been inspired to buy a product you saw recommended on Facebook or featured in an Instagram post, you've witnessed this social impact as it relates to ecommerce.

9. Global ecommerce is growing rapidly.

In 2018, an estimated 1.8 billion people worldwide made an online purchase.

Chinese platform, Taobao, is the biggest online marketplace with a gross market value (GMV) of $484 billion. For context, Tmall and Amazon ranked second and third with $458 and $339 billion GMV in annual third-party global market value respectively.

Advantages of Ecommerce

Ecommerce has many different advantages - from faster buying to the ability to reach large audiences 24/7.

Let's take a look in detail at some of the top perks it has to offer.

1. Faster buying for customers.

For customers, ecommerce makes shopping from anywhere and at any time possible.

That means buyers can get the products they want and need faster without being constrained by operating hours of a traditional brick-and-mortar store.

Plus, with shipping upgrades that make rapid delivery available to customers, even the lag-time of order fulfillment can be minimal (think Amazon Prime Now, for example).

2. Companies can easily reach new customers.

Ecommerce also makes it easier for companies to reach new, global customers. An ecommerce store isn't tied to a single geographic location - it's open and available to any and all customers who visit it online.

With the added benefit of social media advertising and email marketing, brands have the potential to connect with massive relevant audiences who are in a ready-to-buy mindset.

3. Lower operational costs.

Without a need for a physical storefront (and employees to staff it), ecommerce retailers can launch stores with minimal operating costs.

As sales increase, brands can easily scale up their operations without having to make major property investments or hiring a large workforce. This means higher margins overall.

4. Personalized experiences.

With the help of automation and rich customer profiles, you can deliver highly personalized online experiences for your ecommerce customer base.

Showcasing relevant products based on past purchase behavior, for example, can lead to higher average order value (AOV) and makes the shopper feel like you truly understand them as an individual.

Disadvantages of Ecommerce

Although modern ecommerce is increasingly flexible today, it still has its own set of disadvantages.

Here are some of the downsides to ecommerce retail.

1. Limited interactions with customers.

Without being face-to-face, it can be harder to understand the wants, needs and concerns of your ecommerce customers.

There are still ways to gather this data (surveys, customer support interactions, etc.), but it does take a bit more work than talking with shoppers in person on a day-to-day basis.

2. Technology breakdowns can impact ability to sell.

If your ecommerce website is slow, broken or unavailable to customers, it means you can't make any sales.

Site crashes and technology failures can damage relationships with customers and negatively impact your bottom line.

3. No ability to test or try on.

For customers who want to get hands-on with a product (especially in the realm of physical goods like clothing, shoes and beauty products) before adding it to their shopping cart, the ecommerce experience can be limiting.

The Future of Ecommerce

By 2022, ecommerce revenue in the U.S. alone is expected to reach $479 billion, with the toys, hobby and DIY vertical seeing the largest growth.

And it's no passing trend, either.

It's also interesting to note that looking ahead, ecommerce expert Gary Hoover's data projects that ecommerce retail sales will eventually even out with that of brick and mortar.

This means that even though the online sales trend will continue to grow, there's plenty of business to go around.

But that's not all.

Soon, most ecommerce interactions will be an omni-channel experience for shoppers.

This means they'll expect to be able to research, browse, shop, and purchase seamlessly between different devices and on different platforms (like a standalone web store, an Amazon presence, etc.).

Other trends to watch for in the future of ecommerce include:

Overall, we have to remember that ecommerce is still fairly new in the big picture of retail.

The future holds endless opportunity, but its success and continuation will depend largely on buyers' preferences in the future.

Conclusion

We've looked at all corners of ecommerce, including its different types, the history, how it's grown over the years, and its impact on consumers and how business is conducted.

There are certainly advantages and disadvantages to ecommerce, but the future has many opportunities for even greater expansion.

Ecommerce Frequently Asked Questions

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Ecommerce 101 + History of Online Shopping (2020) | BigCommerce

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To fully understand ecommerce, let's take a look at its history, growth and impact on the business world. We will also discuss some advantages and disadvantages to ecommerce, plus predictions for the future. Types of Ecommerce Generally, there are six main models of ecommerce that businesses can be categorized into: Let's review each type of electronic commerce in a bit more detail.

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One thing that I think is very important would be is that everyone needs to understand the environmental and internal factors of a design. Whether, that means culturally different or very different within organizational planning.

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Take a deep dive into organizational design, learn what its key principles are, and find out how to design an effective organization!

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I think that it is very important to recongize organizational culture refers to the collective behavior of the people who make up an organization; this includes their values, visions, norms, working language, systems, symbols, beliefs, and habits. Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. A strong culture is integral to long-term organizational sustainability and success, and one of management’s primary responsibilities is to both define and communicate this sense of shared culture.

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HR is forever going to be something that people have to deal with as long as they work in general so it is very important to learn and understand the basic reasonings to the department.

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When working, it is very important to always try and do better. Employee performance reviews are very important for employees to always strive to be better and with getting evaluated it will only be better.

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Hated by bosses and subordinates alike, traditional performance appraisals have been abandoned by more than a third of U.S. companies. The annual review's biggest limitation, the authors argue, is its emphasis on holding employees accountable for what they did last year, at the expense of improving performance now and in the future. That's why many organizations are moving to more-frequent, development-focused conversations between managers and employees.

The authors explain how performance management has evolved over the decades and why current thinking has shifted: (1) Today's tight labor market creates pressure to keep employees happy and groom them for advancement. (2) The rapidly changing business environment requires agility, which argues for regular check-ins with employees. (3) Prioritizing improvement over accountability promotes teamwork.

Some companies worry that going numberless may make it harder to align individual and organizational goals, award merit raises, identify poor performers, and counter claims of discrimination-though traditional appraisals haven't solved those problems, either. Other firms are trying hybrid approaches-for example, giving employees performance ratings on multiple dimensions, coupled with regular development feedback.

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Hated by bosses and subordinates alike, traditional performance appraisals have been abandoned by more than a third of U.S. companies. The annual review's biggest limitation, the authors argue, is its emphasis on holding employees accountable for what they did last year, at the expense of improving performance now and in the future.

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Leadership and Management are two different types of things. Both terms imply the act of guiding others. According to one definition, managers achieve this by prioritizing organizational and task performance with an emphasis on efficiency, while leaders motivate others through inspiration towards a common goal and achieving effectiveness.

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Organizational control involves using strategy, tactics, and operational oversight to monitor and improve company processes. I think that this is very important to understand the meanings of because each step goes into organizational control which is essential to our community as a whole