Essay on the Process of Building a Virtual Organization

3 pages
730 words
George Washington University
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Step Two: Establishing business model

It is the virtual organization that establishes the business model, and this is because it serves to support activities of the organization and a tool for analyzing performance. In this case, there is a need to use the model developed by Abraham in that it blends well with the current situation and makes it easy for analyzing the situation at hand (Hazen, Overstreet, Hall, Huscroft, & Hanna, 2015). The complex nature of the model makes it easy for developers to understand the ingredients of the model and the factors that influence the building process.

Step Three: Definition of value chain

After the establishment of the business model and ensuring that all parties have joined the virtual organization, the following step is setting value chain of the organization. It is this process that requires the setting of key activities and functions of the virtual organization, this also leads to the establishment of a margin to enable the organization to create value and register higher profits. Such requires that there be a keen consideration of various factors pertinent to the organization and ensure that all parties work in unison for the delivery of organizational goals (Dyckhoff, Lackes, & Reese, 2013).

Step Four: Determination of logistical methods.

In the adoption of logistics of a virtual organization, every party in the organization needs to the adopt the ERP system to enable them have updated information on supply, inventory and periods used for transport. A proper coordination of activities of the activities in the virtual organization by integrating the logistics also increase the effectiveness of the virtual organization and thereby making it be successful and enjoy longevity leading to its competitive advantage in the business world (Shamsuzzoha, Helo, & Sandhu, 2016). Such proves the need to have a better understand logistical methods because they have a direct effect on the success of the building process and leads to a better virtual organization.

Step Five: Carrying out assessment and making decisions

The final step of the process of building virtual organization is to change the model of analysis into practical model using available results. There is also a need to make the right adjustments to redefine the variables used in the modelling process to yield a virtual organization that can delivers the goals of reverse logistics. It is apparent to ensure that every step is followed correctly so that the resulting organization conforms to the societal and organizational settings. The results used during the modelling process should conform to factors pertinent to the virtual organization examined (Gordon, 2016). Negative results call for a revision of the strategy to make the virtual organization of long-term and practical in a business environment.

In the current dynamic times, business engage in partnerships to withstand the challenges in the business environment due to the poor economic conditions being witnessed. Businesses need to use their competencies and to in the formation of new partnerships for them to enjoy competitive advantage over others so as to remain operational and relevant to the dynamic business environment (Hazen, Overstreet, Hall, Huscroft, & Hanna, 2015). The new forms of organizations and the use of information technology helps organizations to fulfill their goals and solve the problems they face in the current states of economic recession. Classical organization tends to be the most preferred form of organization in that it has properly defined compartments and the hierarchal structure which boosts the fulfillment of goals and objectives. The new forms of organization call for utilization of new business models that auger well with the current business environment and aid in the fulfillment of organizational goals (Gordon, 2016). There is a need for business experts to take part in restructuring virtual organizations in a manner that can suit the dynamic and diverse business settings and withstand the high competition witnessed in the modern generation.



Dyckhoff, H., Lackes, R., & Reese, J. (Eds.). (2013). Supply chain management and reverse logistics. Springer Science & Business Media.

Gordon, R. L. (2016). Contracting, Logistics, Reverse Logistics: The Project, Program and Portfolio Approach.

Hazen, B. T., Overstreet, R. E., Hall, D. J., Huscroft, J. R., & Hanna, J. B. (2015). Antecedents to and outcomes of reverse logistics metrics. Industrial Marketing Management, 46, 160-170.

Shamsuzzoha, A., Helo, P., & Sandhu, M. (2016, October). Green Virtual Business Network for Managing and Reusing Waste Between Partner Organizations. In Working Conference on Virtual Enterprises (pp. 639-651). Springer International Publishing.



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