EBay Business Model-Free-Samples for Students-Myassignmenthelp.com

Question: Discuss about the EBay Business Model. Answer: eBay Business Model couraging mQuestion part one- eBay underwent transformation from a functional to implementing a system 4 approach. This system emphasizes operations that are less bureaucratic in the hierarchy while enotivation across the organization (Griffin, 2016, p.342). Each unit is run independently by a president who in turn reports to the CEO. Question one part two-The changes in the future may be in the form of establishing geographical units that are run by a president for that geographical area. As its PayPal and Skype business continue to grow significantly outside of North America, it may have to change its management approach in order to be more focused regionally in order to sustain profitability. Question two part one- As eBay expands overseas, it may have to re-name the Market Place unit in terms of the different regions it expands into. An example would be to have eBay Europe and eBay Asia and Pacific. The regional presidents would in turn report to the CEO. This would give each region its identity in order to expand its operations geographically. Question two part two- In order to accommodate further expansion overseas, eBay should have a regional president who overseas it regional operations with two vice-presidents who should run the PayPal and Skype units. This structure of management regionally should be horizontal and not vertical (Hillis, Petit Epley, 2012). This is because the two units have the biggest potential to drive revenues and growth for the company in its overseas expansion. Question three- As the company expands overseas, the functional offices will take on additional responsibilities. The company may consider creating three offices of vice-presidents who will work directly under the CEO (Australia, 2015, p. 466). The vice-president offices of finance, human resource and legal affairs will at the same time work with the regional presidents in order to align the overseas operations with the head office. The finance vice-president will ensure that financial reporting is standardized and also attend to issues of taxation in its overseas offices. The vice-president for legal affairs will coordinate the legal matters of operations in the foreign offices. The human resources vice-president will ensure that the company is staffed with the right personnel with the requisite training that fits the vision of the company. Question four-The greatest external change may be in the form of new entrants in the North America online-auction that could disrupt its operations. One such company is Alibaba that could enter and offer lower fees on online-auction transactions (Rein 2014, p.29). These may force eBay to undertake changes in its organization set-up. A new office that focuses on customer care quality would ensure that existing customers are not enticed to join the new entrant. The same would be the position for its competitor Amazon. The substantive office of president responsible for quality control would have to work with all the regional presidents and in turn report to the CEO. This approach would ensure that both companies retain their loyal customers in the regions where they operate. References Australia, C. L. (2015). Organization Theory and Design. Cincinnati OH: Cengage Learning US. Griffin, R., W. (2016). Management. Engage Learning. Hillis, K., Petit, M Epley, N., S. (2012). Everyday Ebay: Culture, Collecting, and Desire. Routledge. Rein, S. (2014). The End of copycat China: The rise of creativity, innovation, and individualism in Asia.