HR Diploma

Group 73
Final Project
E-Shopping.com
Case Study

Handed to:
Dr. Mohamed Aly

Handed by:

Heba Nabil Sara

Kamel
Heba Sakr Mahi Refaat
E-Shopping.com offers customers a diverse, user friendly
array of services where they have the ability of purchasing
various goods through the internet using secure protocols
and electronic payments or cash on delivery. Our digital
channel will make it easy for shoppers to find, compare and
select products using a structured approach to
merchandizing and improving conversion to produce an
experience rated as excellent by the majority of our
customers.

Currently in Egypt, there are several dot-coms that offer

same services .However; we standout with our approach of
refining customer experience and & continuous innovations
to offer our clients with the best.

The importance placed on our customer experience is

suggested by our mission statement “provide customer with
a quick and easy way of buying what they want, at the most
competitive price around, and deliver directly to their door”

E-Shopping.com is a limited partnership and in our strategic

planning we will tackle the following:

Environmental scanning :

- Internal Analysis. (Including structure, culture,)

- PEST&SWOT Analysis to analyse the company options.

2 - Strategy Formulation using the SWOT.

- Company's Corporate Strategy

- Company's Business Strategies using the SWOT matrix

3- Strategy Implementation:

- Implement the strategic choices through programs

established that abides to the company's budget.

4- Evaluation & control

- Evaluating success and reconstructing & reshaping as

needed to achieve the company's broad objectives &
strategies.

Company Profile

Our company name is E-Shopping.com .Categorized as

electronic commerce commonly known as e-commerce, it
consist of the selling and buying products and services over
electronic system; namely internet.

Our vision is to be earth's most customer centric company;

to build a place where people can come to find and discover
anything they might want to buy online.

Our mission is “provide customer with a quick and easy way

of buying what they want, at the most competitive price
around, and deliver directly to their door”
As we strive to become Earth's most customer-centric
company, we constantly look for new ways to innovate on
behalf of our different customers: individuals who shop our
website, merchants who sell on our platform, developers
who use our infrastructure to create their businesses, and
creators of the books, music, films, games and other content
we sell through our websites. We believe that our greatest
contribution to the good of society comes directly from these
core business activities.

In E-Shopping.com we stand distinguished in the market as

we work to earn repeat purchase by:

- Providing value to customers (by offering a product or a

product line that attracts potential customers)

- Providing easy to use functioning fast and reliable

fulfilment, timely customer service, feature rich content and
trusted transaction environment.

- Providing service and performance (by offering fast user

friendly purchasing experience)

- Branding and developing a profound understanding of

the customer’s experience

- Developing an online value proposition that describes the

total customer experience with the firm and in its alliance
partners over time, rather than [being limited to] that
communicated at the point of sale.

- Letting the customer help themselves (provision of self

serve site easy to use without assistance)

- Providing incentive to buy (by offering sales promotions;

coupons, special offers and discounts)
- Providing an attractive site (by using the tasteful use of
colours, graphics, animation, photographs, fonts and white
space percentage)

- Provide sense of community (through chat rooms message

boards and affinity programs)

Environmental Scanning
1. External Societal Environmental Analysis:

Using PEST analysis model

A. Political Factors

Trade restrictions on imported products from EU have

massively decreased & free trade agreements between
Egypt & EU are enacted.

Taxation system for the e-commerce market is still under

development , many transaction are still processed without
any contribution to the taxing system

B. Economical factors

Increase in exchange rate which leads to increase in prices

of exported products that affects negatively profit margin.

EIU consumer price index (June 10) states that inflation in

Egypt is 9.1% to reach 15% at the end of the year 2010

Cost justification; the initial development in e commerce

website is relatively high.(the initial investment for creating
and e-commerce website includes the cost of the hardware
and software, future maintenance and training for the staff.
Quite often manufacturing firms don’t want to participate in
e commerce because of the fear of losing their investments
as whether the initial investment can be returned or not
remains uncertain for a long period.

C. Social Factors

- The increase in population growth rate predicates a

prosperous market.

- The increase in percent of educated people leads to

increase in the number of internet users and the rate of
using.

- Lack of knowledge and skilled personnel. Many

organizations lack information technology literacy. Also
many manufacturing firms have difficulty finding skilled
worldwide web developers, content provider and
knowledgeable professional to maintain and manage a
customer hotline.(this leads to slow progress of ecommerce
uptake)

- Security and privacy issues are major hurdles for the

growth of e commerce business (60% of participant were not
convinced by assurance of ecommerce security, as a result
consumers are hesitant to transact with companies or
disclose confidential data such as home address credit card
numbers over the internet.)

- The absence of touch and feel on web sites is always a big

issue for online service providers.

D. Technological factors:

-The rate for rate of technological change is increasing

rapidly worldwide
- Security problems and challenges as technical issue
(although many protection technology such as firewalls data
encryption and virus detection are available, no one can
claim that security is no longer a problem)

- Bandwidth is a major issue in developing ecommerce

business (it determines the speed and the capacity for
communication)

SWOT Analysis

Strengths

A - Strong organizational culture.

B - Financial status is healthy

C -Gaining market share

D-sense of community; E-Shopping.com makes its

community a priority at all the times, we provide function as
User Review; feedback forum for customer to provide their
comments so we make sure we stay in act and help to
stimulate sales)

E –direct consumer communication

G–constantly revamping our site to make sure it is the

easiest, fastest and most fun dot.com on the web so users
want to come back again and again.

H –ability to compete with other companies locally and

globally
I –wide variety of products offered on E-Shopping.com gives
us a competitive advantage over other online auction sites.

J - E-Shopping.com doesn’t have stores or warehouse, we

don’t hold any of our own inventory. This keeps cost down
and doesn’t have any threat of having to liquidate the

Weakness

A -High overhead costs due to our business model.(phone

calls, time consumed)

B – E-Shopping.com is depending on external delivery

companies to carry out the delivery function, this leads to
uncontrollable service level problems and potential cost
increase in line with the wider transportation industry (rising
fuels and increased vehicles taxations)

C- Coordination problems, mainly because there are different

departments with different backgrounds and relatively far
locations involved in the process.

D –high costumer expectations, customer demands same

level of service from a business of limited number of
employees as they would from industry giants

E –lack of ability to fully monitor illegal activity on site; there

is no real accurate way to measure illegality on our website.

Opportunities

1-changing life style of people .internet is being used more

and more each day to pay bills, shop, talk to families and
phone orders
2-internet use continues to grow; according to inter word
stats there are 17,060,000 connected to the internet.

3-global exposure; adding e commerce to a business allows

the company to sell its products to a bigger market.

4- Retail sales on internet have seen a rapid growth world

wide over the past 8 years and the growth is expected to
continue at high rates.

According to Arab advisors group latest survey

- Egypt internet users spend an estimated US$ 2.1 billion on

retail e-commerce in 2009

34.6% of adult Internet users in Egypt use e-commerce

- Egypt Internet users who utilize e-commerce to be around

2.36 million, which is around 3% of the total population in
Egypt.

4-high availability 24/7 business allows company to take

orders around the clock and hence taking advantage of the
lack of time that the working class is facing including males
and females.

5- Total Credit card holders in Egypt is about 2 percent of the

population

Threats

1-arising competition from competition arising from other

means of shopping or ordering ex: TV shopping, online
shopping, phone orders & store visits.
2-The low barriers and the comparatively low overheads
allows for relatively easy entry into the market, this increase
level of competition and cause reduction in prices and profit
margins

3-Fraud; some consumers are leery of doing business online

out of concern of fraud and misuse of their financial data
(this alienates n entire segment from conducting business on
line)

4-Privacy concerns, some customers prefer not to give any

personal information over the internet fearing the
information might be abused.

5-The relatively new trend of e-commerce in Egypt and the

time it may take us to gain the users’ trust and generate the
required profits.

Internal Analysis:

Organizational Culture:

Our company believes that a strong culture should not only

promote survival, but it should also create the basis for a
superior competitive position by increasing motivation and
facilitating coordination and control.

We adopted a mix between the Brand Harmony Culture,

which makes employees strongly believe in the product,
objectives and strategies of the company and the Leadership
Enriched Culture which inspires employees and makes them
view the company and its objectives as an Extension of
themselves; so all of them are proud of every success the
organization can achieve.

All in our company work as one unit towards the success of

the organization and there is no limitation for the innovation
and creation at all levels, so they all feel one family that
seeks to make big success story. Our people define a culture
that’s exciting and real. We’re real people with real ideas
doing real work.

Our business model is a little unusual. We don't build cars or

computers, but we build something just as important;
communities. We've created a place where people can come
together, exchange ideas, share experiences and expand
their own businesses. It makes our users feel like they're
part of the family and that feeling goes double for our
employees. We're literally changing the face of commerce
every day and we're learning as we go. Succeeding together
and challenging each other to constantly refine and improve
our way of working.

Our people are the reason we've come this far. And the
reason we'll succeed tomorrow. So as we grow, we'll try our
hardest to retain the fun, community feeling as this makes
our culture so unique.

Values

We have a set of values that moves all the company's

functions and employees;

- Integrity: we are truthful and behave with honesty.

- Reliability: we do what we say, when we say we will.

- Openness: we promote sharing of knowledge and

experiences by being open in our relations with others –
listening and sharing relevant information and views.

- Innovation: we proactively take opportunities to improve

our methodologies in the production, after sale services and
customer solutions through new approaches.

- Respect: we recognize and respond to customer's rights,

interests and values.

- Continues Improvement: we strive continuously to

improve our products and services and develop ourselves
through training the non-skilled employees and assess the
skilled ones for providing suitable promotions.

Organizational Structure

Our organization is structured in functional strategy way

such that every entity in the organization except the top
manaegment is subordinate to a single other entity.

The general Manager is primarily responsible for the

company, functional managers provide technical expertise
and assign resources on an as-needed basis.

Each functional area upholds and contributes to individual

business-level strategies and the overall corporate-level
strategy. This involves coordinating the various functions
and operations needed to design, manufacturer, deliver, and
 support the product or service of each business within the
corporate portfolio.

General Manager

Portal Marketin
Content Sales Operation Creative IT Finance HR
Developme g
Manager Manager Manager Manager Manager Manager Manage
nt Manager Manager

Portal Call Center Finance Marketin

Supervisor Web Executives HR
Web Developme Sales Designe g
Develop Assistan
Editors nt Executives Call Center rs Executiv
er Lawyer ts
Executives Agents es

Portal Development

Responsible for planning projects related to the portal and

supervising the execution with the aim of pertaining the
business direction of the product as well as satisfying its
users.

Business Development

Is concerned with business development, sales,

customer/partner relations, in accordance to the product
market needs

(B) Content Department

Responsible for content acquisition, aggregation, publishing,
in addition to syndication

Prepares various types of content to suit the needs of the

different nature of portals

Sets content guidelines and strategy in accordance with the

portals’ development direction

(C) IT Department

Executes on-line advertising activities for the products

Monitors online network for performance & fix technical

problems that might arise.

Administrates technical tools used for products in terms of

functionality & performance

Performs any modifications, adding new feature or solving

problems for the products

Manages internal & external technical suppliers, sets

technical strategy for all products

(D) Creative Department

Sets Creative Guidelines for each website

Sets the Media (online ads) guidelines for all the online
network in addition to designing and monitoring house ads
and their related media planning
2-strategy formulation

Corporate strategy: to grow (growth Strategy)

Corporate strategy refers to the overarching strategy of the

diversified firm. Such a corporate strategy answers the
questions of '' which business should we be in?'' and '' how
does being in these businesses create synergy and / or add
to the competitive advantage of the corporation as a whole?
''

At a corporate level we in ( E _ shopping ) decide to expand

our business through adopting concentration growth
strategy, ( vertically by increasing the amount of our
products ) / ( horizontally by having more presence in new
segments ) , so we will increase the amount of existing
products and to develop and enter to an untapped segment
of a domestic market through expanding the product's
distribution channels for example ( supermarkets and malls
online ) a new channel for distributing our products and
services .

So , growth strategy is focused on reinvesting in our

customers by improving the buyer experience and seller
economics by enhancing our products and services ,
improving trust and safety and customer support ,
categories and geographies , implementing innovative
pricing and buyer retention strategies , and including amore
effective pricing and shipping policies and soon. In order to
achieve our growth strategy goals, we will apply some
strategies such as:

_ Acquisition: through increasing the number of newly

registered users on the E _ shopping Marketplace.

_ Activation: through increasing the number of registered

users that become active buyers or sellers on the E _
shopping Marketplace.

_ Activity: through increasing the volume and value of

transactions that are conducted by each active user on our
E_ shopping marketplace.

Business Strategy

:Business overview

E-shopping has opened its virtual doors to world web wide in

2002.we seek to be Earth's most customer centric company
for 2 primary set of customers; consumers (buyers) and
sellers.

ً e serve our consumers through our retail website and focus

w
on selection, price and convenience. For our sellers, we offer
programs that enable sellers to sell their products on our
website and their own branded website and fulfill orders
through us. In addition we make revenue through co
branded credit cards agreements and other marketing and
promotional services, such as online advertising.

- We generate 2 types of revenue:

1-net transaction revenue

2-marketing services and other revenues

Our primary source of revenue is the sale of a wide range of
products and services to the customers.) The products
offered on our customer facing website primary includes
merchandize and content we have purchased from resale
from vendors and products offered by a third party seller.

The vast majority of e-shopping revenue is for the listing and

commission on completed sales.

For some Credit cards purchases an additional commission

fee is charged. Margin on each transaction is phenomenal
since once the infrastructure is built, incremental costs on
each transactions are tiny – all we do is doing is transmitting
bits and bytes between buyers and sellers.

Advertising and other non-transaction net revenues

represent a relatively small proportion of total net revenues.

Our financial focus is on long term and sustainable growth in

free cash flow. Free cash flow is driven primarily by
increasing operating income and effectively managing
working capital and capital expenditure.

Increase in operating income primarily result from increase

in sales through our website and efficiently managing our
operating costs offset by investments we make in longer
term strategic initiatives which generally requires to hire
additional software engineers ,computer scientists and
merchandisers.

To increase product sales, we focus on improving all aspects

of customer experience, including lowering prices, improving
availability, offering faster delivery time, increasing
selection, increasing product categories, expanding product
information, improving ease of use and earning customer
trust.

E-Shopping Marketplace:
Our primary business segment is our Marketplace segment.
It provides the infrastructure to enable online commerce on
E-shopping platform. We seek to create online platform that
provides individuals and business of all types and sizes to
broad market. We have aggregated a significant number of
buyers, sellers and items listed for sale which in turn
resulted in vibrant online commerce environment. Our goal
is to create, maintain and expand the functionality, safety,
ease-of-use and reliability of our online commerce platforms
while supporting the growth and success of our community
of users.

We seek to attract buyers and sellers by offering;

Buyers:

Trust

Value

Selection

Convenience

Entertainment

Sellers:

Access to broad market

Efficient marketing and distribution

Opportunity to increase sales

Access to a large buyers' base

We believe that our market place platform makes more

efficient markets because:
- Our online community of users can more easily and
inexpensively communicate, exchange information and
complete transactions;

- Our Marketplace platform makes available to our users a

wide variety and selection of goods; and

- We bring buyers and sellers together in a more cost-

effective manner than many traditional intermediaries and
available alternatives.

E-shopping Marketplace platform overview:

Our Marketplaces platforms seek to bring buyers and sellers

together through fully automated and easy-to-use online
websites that are generally available throughout the world at
any time. The platforms include software tools and services,
some available at no charge and others for a fee, that are
intended to allow buyers and sellers to trade with one
another easily and efficiently.

Key Services for Buyers and Sellers

We have developed a number of features on our platforms in

the areas of Trust and Safety (including our Feedback Forum,
Safe Harbor Program), Customer Support and Value-Added
Tools and Services, as well as Loyalty Programs (for both
buyers and sellers). These features are designed to make
users more comfortable dealing with unknown trading
partners and completing commercial transactions on the
Internet.

Fraud is a significant risk factor in e-commerce business. In

this; we have developed ‘Trust and Safety Programs’ which
are particularly important to reassure customers since online
services are prone to fraud. For instant, our SafeHarbor
Program provides guidelines for trading and user dispute
resolution. Our SafeHarbor staff investigates users’
complaints of possible misuse of e-Shopping platforms and
takes appropriate action, including issuing warnings to users,
ending and removing listings, or suspending users from
listing items for sale.

Also, Our Feedback Forum encourages users to provide

feedback ratings and comments on other users with whom
they trade. Users’ profiles, which include these feedback
ratings and comments, can be viewed by any of our other
users. The Feedback Forum has several automated features
designed to detect and prevent certain forms of abuse, such
as a user leaving positive feedback about him or herself
through multiple accounts. As a customer-focused company,
we no longer allow sellers to leave negative feedback about
buyers and supply sellers with tools that give them the
ability to enhance the buyer experience. Feedback Forum
can help establish credentials of sellers and buyers.

We stress the importance of developing our “Value-Added

Tools and Services” which are “pre-trade” and “post-trade”
tools and services to enhance the user experience and to
make trading faster, easier and safer. Also, Software tools
are provided, particularly for frequent traders including
Turbo Lister, Seller’s Assistant, Selling Manager and Selling
Manager Pro, which help automate the selling process.

These tools and services may not be available at our

competitors and this makes it a distinctive competency as
we are superior to those of competition.

E-Shopping differentiation strategy:

Our vision is to be Earth's most centric company, achieving

customer loyalty and repeat purchase has been a key to our
success. Many dotcoms failed because they succeed to
create awareness but not loyalty. In E-shopping we achieved
both and that’s what differentiates us from our competitors.

We work to earn repeat purchases by providing easy-to-use

functionality, fast and reliable fulfillment, timely customer
service, feature rich content, and a trusted transaction
environment.

Key features of our websites include editorial and customer

reviews, manufacturer product information, Web pages
tailored to individual preferences, such as recommendations
and notifications, secured payment systems, image uploads,
searching on our websites as well as the Internet browsing.
Free shipping offers are used to encourage increase in
basket size since customers have to spend over a certain
amount to receive free shipping.

Another element we have that differentiates our business

from competitors is that we focus on customer satisfaction
metrics. Each site is closely monitored with standard service
availability monitoring, site availability and download speed.
This focus on customer has translated to excellence in
service we scored the highest customer satisfaction score
ever recorded in any service industry, online or offline in
Egypt.

The importance we place on customer experience and

usability is suggested by our mission statement which places
customer experience as its core together with choice and
price. To refine our customer experience we developed a
clear, online value proposition (OVP) or online customer
value proposition for the target audiences.

Our OVP is" to be Egypt's biggest selection'; simple tag line

which is prominent on the home page and in offline
communications accompanying the URL yet clearly explain
the essence of what E-shopping provides

Development of a clear customer value proposition is now an

integral part of customer-centric marketing, customer-
relationship management and branding. E-shopping success
is due to matching value propositions to segments
successfully. This benefited our business as:

It helps distinguish our site from its competitors (this should

be a web site design objective);

It helps provide a focus to marketing efforts and enables our

staff to be clear about the purpose of the site ;( offering
biggest selection in Egypt)

Because our proposition is clear, it is used for PR and word-

of-mouth recommendations about the company

As we are relatively new in the e-commerce business, a

further practical reason for developing an OVP is that
customers expect it! New visitors to a site, particularly of a
company they are unfamiliar with, will seek out a tagline or
graphic that explains what the site can offer (WIFM – or
what’s in It For Me). Users decide quickly (often within a few
seconds) whether to stay or leave a site. Our tagline here
plays a big part of encouraging the customers to stay as it
promises they will find what they need.

Our competition:

We see the environment for our products and services as

‘intensely competitive’. We view our main current and
potential competitors as:
- physical-world retailers, catalog retailers, publishers,
vendors, distributors and manufacturers of our products,
many of which possess significant brand awareness, sales
volume, and customer bases, and some of which currently
sell, or may sell, products or services through the Internet,
mail order, or direct marketing.

- Other online E-commerce sites.

- A number of indirect competitors, including media

companies, Web portals, comparison shopping websites, and
Web search engines, either directly or in collaboration with
other retailers.

- Companies that provide e-commerce services, including

website development; third-party fulfillment and customer-
service.

we believe the main competitive factors in our market

segments include "selection, price, availability, convenience,
information, discovery, brand recognition, personalized
services, accessibility, customer service, reliability, speed of
fulfillment, ease of use, and ability to adapt to changing
conditions, as well as our customers’ overall experience and
trust in transactions with us and facilitated by us on behalf of
third-party sellers".

Human Resources Strategies

Managing HR effectively has become vital to organizations

within the fast paced business environment. The HR
department in any organization is a crucial part of the
operational strategy, as it can directly affect the overall
results of the organizations. An efficient HR department
should be able to access, predict, forecast, design and
implement its strategies in direct sync with the business
goals and the organizational strategies for a mutual and
coherent environment.

HR Department now acts as a strategic partner of the

business in the way it works to ensure that the long term
and short objectives and goals of the organization from
financial and human capital perspectives are perfectly
aligned and harmonious. HR specialists are more important
in business strategies today the changes in the present
economic cycle of recession. The aim is not just only to see
through recessions, but more importantly to ensure that
employees are still committed to the organization.

HR acts as the mentor to its employees – guiding, training

and educating them in the way of the industry and the
organization. Well trained and competent employees, who
are able to showcase themselves and their organization to
the customers in a more effective manner, help in increasing
customer satisfaction and overall clientele, by adding
credibility and reputation to the business In this, HR
department should act as a service provider for the
employees, and treat employees as its customer15 base –
treat the employees the same way you would like them to
treat their customers, and the whole paradigm of customer
satisfaction and delivery becomes easy to adopt and adapt.
Thus, effective HR planning and development practices bring
quality and loyal workers who are committed and passionate
about the success of their organization.
Recruitment and Selection

Recruitment is the first and the foremost step in the overall

HR function. Hiring the right people is a key success in E-
shopping. The importance of hiring the right people is shown
through our strategy "n minus 1" which means less people
are employed than required. This policy reinforce that hiring
the right people is more important than hiring to fill an
empty position.

We believe in recruiting extremely intelligent staff favoring

intelligence over experience. Our recruitment strategy
includes sourcing people from elite universities. Our
recruiters visit these universities in search for the most
brilliant, driven students. E-shopping is from the first
companies to offer jobs to elite graduates at campuses and
career fairs in Egypt.

Rather than search for one particular skill set, all E-shopping,
asks of potential employees is that they be "smart". We are
fairly flexible, adaptable and not focusing on titles and
hierarchy, and just gets stuff done. So, we put a lot of focus
in our hiring processes when we are interviewing to try to
determine first and foremost does the person have the skill
set and the potentials to do the job from a background
standpoint in addition to academics and credentials. And
also are they going to be good culture or team fits. Team-
building and bonding is one of the essential feature of a job
at E-Shopping.

Our recruitment process is based largely on a series of

interviews with a series of different interviewers. Through a
range of interview topics from programming and web
developing questions to general logic puzzles to personality
checks, so as to be able to size up how skilled and intelligent
a person is.

The interviewers try to avoid "trick questions" they do aim to

ask "unusual" questions that are not geared towards any
particular skills or experiences in an effort to measure how
well a candidate does on something they haven't worked on
before.

One of the factors considered in recruiting staff is that the

recruiter should be from the same functional area so they
would have better judgments on qualifications needed for
the jobs.

Also, candidates should not be deceived about the negative

elements of a job. The recruitment process also goes further
than just informing the employee about the negative
aspects, instead it actually tests the employee on the
negative aspects, putting them under the same type of
pressure they would be put under on the job.

The number of new and skilled employees required cannot

be sourced only from universities and not all positions can
be filled by fresh grads. As we are relatively new, we still
need more experienced older staff to ensure and maintain
our growth and success and to provide a strong model and
example for the younger generation to follow. Thus, our
recruitment process remained active by "head hunting" the
best staff. These staff are found, monitored and recruited by
other specialized recruiting agencies.

In E-shopping, we actively recruit suitable employees and

focus on the right type of person rather than the right type
of skill level. We use HR for competitive advantage basing
our success on having the very best people in the industry
and inspiring them to remain the best. And that’s what leads
to our unique and distinctive recruitment practices.

Compensation and Benefits:

Since our employees in E – shopping are the backbone of our

organization, our greatest investment _ our most important
asset, we, in E- shopping believe that motivation often is the
driving factor behind employees` performance and this
motivation can come out from a strong and effective
compensation and benefit programs so, we try to build a fair
and attractive compensation and benefit package which will
attract, retain and motivate our employees. E - Shopping
compensation and benefit programs are comprised of two
main components which are:

Direct compensation (pay system):

_ Base salary : is the single largest component of our

compensation package and because the base salary is the
most common point of comparison used by employees , so
we decide that salary should be tied to a persons` skills and
experience and subsequent increases need to be based on
an employees` performance , value and contribution to our
organization .

_ Annual incentive plans: which is the distribution of

monetary reward based on the completion of previously
identified goals or objectives (for example: bonuses,
merchandise prizes…).

_ Long _ term incentive plans: a reward system that we

designed to improve our employees` long _ term
performance by providing monetary rewards that are not
necessarily tied to the E - shopping share price.

_ In addition to the previous components we will use some

pay programs of selected employees (key positions).

In direct compensation (benefits):

_ retirement plans : E - shopping will offer their employees

retirement system that is based on a partnership between E
- shopping and the employees in order to have a financial
secure and comfortable retirement so, E- shopping and its
employees should work together t achieve this goal .

_ life / disability insurance : another benefit that E - shopping

will offer to their employees is that they will provided with
basic life , business travel accident insurance and long term
disability insurance benefits .

_ Medical insurance: E - shopping provides several

comprehensive and cost effective medical and dental plans
where E - shopping and its employees share the cost of
coverage but employees also have the opportunity to cover
eligible dependents.

_ Unpaid leave and time off: it includes vacation time, sick

leave, holidays, and so on, which will help our employees in
E - shopping to make a balance between their personal
needs and work life.
_ Flexible work schedule: E-shopping supports flexible work
arrangements that are appropriate for the job and location.
So, the employees may telecommute, work part time, job
share, adopt alternative start and stop times or make other
arrangements that meet our employees social needs as well
as and our organization needs .

_ other benefits such as transportation, discounts on E_

shopping products and so on.

_ Perquisites: E- shopping offers the key positions or some of

its selected employees some perks such as (car access,
stock options…).

Training and Development:

Our Company has found that investment in human capital in

the form of training and development yields high returns. We
believe that the company that recognize the value of its
employees and place a new emphasis on education and
training are becoming more competitive, successful, and
profitable as a result.

The quality of our employees and their development through

training and education are major factors in determining long-
term profitability of the company. If we hire and keep good
employees, it is good policy to invest in the development of
their skills, so they can increase their productivity.

Training often is considered for new employees only. This is

a mistake because ongoing training for our current
employees helps them adjust to rapidly changing job
requirements.
Purpose of Training and Development

Reasons for emphasizing the growth and development of

personnel include:

- Creating a pool of readily available and adequate

replacements for personnel who may leave or move up in
the organization.

- Enhancing our company's ability to adopt and use

advances in technology because of a sufficiently
knowledgeable staff.

- Building a more efficient, effective and highly motivated

team, that enhances the company's competitive position and
improves employee morale.

- Ensuring adequate human resources for expansion into

new programs.

The company has shown specific benefits from training and

developing its employees, including:

- Increased productivity.

- Reduced employee turnover.

- Increased efficiency resulting in financial gains.

- Decreased need for supervision.

Employees frequently develop a greater sense of self-worth,

dignity and well-being as they become more valuable to our
company and to the society. Generally they receive a
greater share of the material gains that result from their
increased productivity. These factors give them a sense of
satisfaction through the achievement of personal and
company goals.

The Training Process

our company uses the below models to trace the steps

necessary in the training process:

Organizational Objectives

Needs Assessment

Is There a Gap?

Training Objectives

Select the Trainees

Select the Training Methods and Mode

Choose a Means of Evaluating

Administer Training

Evaluate the Training

Our business have a clear defined strategy and set of

objectives that direct and drive all the decisions made
especially for training decisions.

A well-conceived training program helps our firm to succeed.

A program structured with the company's strategy and
objectives in mind has a high probability of improving
productivity and other goals that are set in the training
mission.

Formulating a training strategy in our company required

addressing a series of questions.

Who are our customers? Why do they buy from us?

Who are our competitors? How do they serve the market?

What competitive advantages do they enjoy? What parts of
the market have they ignored?

What strengths does the company have? What weaknesses?

What social trends are emerging that will affect the firm?

The purpose of formulating a training strategy was to answer

two relatively simple but vitally important questions: (1)
what is our business? And (2) what should our business be?
Armed with the answers to these questions and a clear
vision of its mission, strategy and objectives, our company
identified its training needs.

Identifying Training Needs

Training needs can be assessed by analyzing three major

human resource areas: the organization as a whole, the job
characteristics and the needs of the individuals. This analysis
will provide answers to the following questions:

Where is training needed?

What specifically must our employee learn in order to be

more productive?

Who needs to be trained?

We Begin by assessing the current status of our company
how it does what it does best and the abilities of our
employees to do these tasks. This analysis provided some
benchmarks against which the effectiveness of a training
program can be evaluated. Our firm knows where it wants to
be in five years from its long-range strategic plan.

Second, we considered whether the organization is

financially committed to supporting the training efforts and
the answer was yes.

Next, we determined exactly where training is needed. It is

foolish to implement a companywide training effort without
concentrating resources where they are needed most. An
internal audit helped to point out areas that may benefit
from training. Also, skills inventory helped in determining the
skills possessed by our employees in general. This inventory
helped our company to determine what skills are available
now and what skills are needed for future development.

Also, in today's market-driven economy, we remiss not to

ask our customers what they like about our business and
what areas they think should be improved. In summary, the
analysis focused on the total organization and told us (1)
where training is needed and (2) where it will work within the
organization.

Once we have determined where training is needed, we

concentrated on the content of the program. Analyzed the
characteristics of the job based on its description, the written
narrative of what the employee actually does. Training
based on job descriptions went into detail about how the job
is performed on a task-by-task basis. Actually doing the job
enabled us to get a better feel for what is done.

Individual employees are evaluated by comparing their

current skill levels or performance to the organization's
performance standards or anticipated needs. Any
discrepancies between actual and anticipated skill levels
identified a training need.

Selection of Trainees

Once we have decided what training was necessary and

where it was needed, the next decision was who should be
trained? An employee is expensive, especially when he or
she leaves our firm for a better job. Therefore, it was
important to carefully select who will be trained.

Training programs was designed to consider the ability of

the employee to learn the material and to use it effectively,
and to make the most efficient use of resources possible. It
is also important that employees be motivated by the
training experience. Employee failure in the program is not
only damaging to the employee but a waste of money as
well. Selecting the right trainees is important to the success
of the program.

Training Goals

The goals of the training program was related directly to the

needs determined by the assessment process outlined
above. Course objectives clearly stated what behavior or skill
will be changed as a result of the training and should relate
to the mission and strategic plan of the company. Goals
included milestones that helped to take the employee from
where he or she was before to where our firm wants him or
her in the future. Setting goals helped to evaluate the
training program and also to motivate employees. Allowing
employees to participate in setting goals increased the
probability of success.
Training Methods

There are two broad types of training available to our

businesses: on-the-job and off-the-job techniques. Individual
circumstances and the "who," "what" and "why" of our
training program determine which method to use.

On-the-job training is delivered to employees while they

perform their regular jobs. In this way, they do not lose time
while they are learning. After a plan is developed for what
should be taught, employees are informed of the details.
Timetables are established with periodic evaluations to
inform employees about their progress. On-the-job
techniques included orientations, job instruction training,
apprenticeships, internships and assistantships, job rotation,
and coaching.

Off-the-job techniques included lectures, courses, special

study, films, television conferences or discussions, case
studies, role playing, simulation, programmed instruction
and laboratory training.

Orientations are for new employees. The first several days

on the job are crucial in the success of new employees. This
point is illustrated by the fact that 60 percent of all
employees who quit do so in the first ten days. Orientation
training that our company gives emphasize the following
topics:

- The company's history and mission.

- The key members in the organization.

- The key members in the department, and how the

department helps fulfill the mission of the company.
- Personnel rules and regulations.

Our company sometimes uses verbal presentations or

written presentations. No matter what method is used, it is
important that the newcomer understand his or her new
place of employment.

Lectures & courses present training material verbally and

are used when the goal is to present a great deal of material
to many of our people. It is more cost effective to lecture to
a group than to train people individually.

Role playing and simulation are training techniques that our

company uses to attempt to bring realistic decision making
situations to the trainee. Likely problems and alternative
solutions are presented for discussion. The adage there is no
better trainer than experience is exemplified with this type
of training. Experienced employees can describe real world
experiences, and can help in and learn from developing the
solutions to these simulations.

Audiovisual methods such as television, videotapes and films

are the most effective means of providing real world
conditions and situations in a short time.

Job rotation involves moving an employee through a series

of jobs so he or she can get a good feel for the tasks that are
associated with different jobs. We use this method in training
for supervisory positions. The employee learns a little about
everything.

Apprenticeships develop employees who can do many

different tasks. They usually involve several related groups
of skills that allow the apprentice to practice a particular
trade, and they take place over a long period of time in
which the apprentice works for, and with, the senior skilled
worker.

Internships and assistantships are usually a combination of

classroom and on-the-job training. They are often used to
train prospective managers.

Programmed learning, computer-aided instruction and

interactive video all have one thing in common: they allow
our trainee to learn at his or her own pace. Also, they allow
material already learned to be bypassed in favor of material
with which a trainee is having difficulty. After the
introductory period, the instructor need not be present, and
the trainee can learn as his or her time allows.

Laboratory training is conducted for groups by skilled

trainers. It usually is conducted at a neutral site and is used
by upper- and middle management trainees to develop a
spirit of teamwork and an increased ability to deal with
management and peers

Trainers

Who actually conducts the training depends on the type of

training needed and who will be receiving it. On-the-job
training is conducted mostly by supervisors; off-the-job
training, by either in-house personnel or outside instructors.

In-house training is the daily responsibility of supervisors and

employees. Supervisors are ultimately responsible for the
productivity and, therefore, the training of their
subordinates. These supervisors are taught the techniques of
good training. They are aware of the knowledge and skills
necessary to make a productive employee.
We used several ways to select training personnel for off-
the-job training programs. In-house personnel helped in
developing formal training programs to be delivered to our
employees off line from their normal work activities, during
company meetings or individually at prearranged training
sessions.

The company also used many outside training sources,

including consultants, technical and vocational schools,
continuing education programs, chambers of commerce and
economic development groups.

Whoever is selected to conduct the training, either outside or

in-house trainers, it was important that the company's goals
and values were carefully explained.

Training Administration

Having planned the training program properly, we had to

administer the training to the selected employees. It was
important to follow through to make sure the goals are being
met. Questions to consider before training begins include:

• Location.

• Facilities.

• Accessibility.

• Comfort.

• Equipment.

• Timing.
Careful attention to these operational details contributed to
the success of the training program.

The company ensured that the training program

administrator should follow these steps:

• Define the organizational objectives.

• Determine the needs of the training program.

• Define training goals.

• Develop training methods.

• Decide whom to train.

• Decide who should do the training.

• Administer the training.

• Evaluate the training program.

Following these steps helped to develop an effective training

program to ensure that the firm keeps qualified employees
who are productive, happy workers. This will contribute
positively to the bottom line.

Evaluation of Training

Training is evaluated several times during the process.

Employees are evaluated by comparing their newly acquired
skills with the skills defined by the goals of the training
program. Any discrepancies are noted and adjustments were
made to the training program to enable it to meet specified
goals