ACCA Strategic Professional · Strategic Business Leader · E-business: value chain
Brindle Foods, a grocery chain, introduces an online ordering service. In the first year the service attracts many customers, but the board discovers that order-picking errors and late deliveries are causing repeat purchase rates to fall, even though the website itself works well. Which implementation issue does this most clearly show?
The issue is a failure to integrate the front-end website with back-end fulfilment and logistics. Orders are taken successfully online, but picking errors and late deliveries damage the customer experience and repeat purchases, showing that e-business depends on the whole value chain working.
- AFailure to integrate the front-end website with back-end fulfilment and logistics processesCorrect
- BOver-reliance on social media marketing
- CPoor choice of domain name
- DExcessive use of customer relationship management data
Explanation
The website works, but errors and lateness arise in picking and delivery, which are back-end processes. E-business success depends on integrating front-end ordering with fulfilment and logistics. The other options are not supported by the facts.
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