Chapter 5 Emerging Modes of Business | class11th | ncert quick revision notes Business Studies

Notes Class 11 Business Studies Emerging Modes of Business

1. e-business

e-business refers to “Carrying on business activities through internet.”

2. Scope of e-business

(i) B2B Commerce

Transaction taking place between business units are known as B2B transaction.

These transactions may involve

(a) Creation of utility
(b) Collaborations
(c) Commercial negotiations
(d) Inviting tenders

(ii) B2C Commerce

The transaction taking place between business units and customers are known as B2C transaction.

B2C transaction may involve

(a) Selling and distribution
(b) After sale service
(c) Promotion and other marketing activities

(iii) C2C Commerce

The transaction taking place between customer and customers are known as C2C transaction

C2C transactions may involve

(a) Selling used books, clothes etc
(b) Selling antique items
(c) Information about the quality and durability of products etc

(iv) Intra b-commerce

This refers to transactions between the parties or persons who are the part of one firm only.

Intra b-commerce transactions may involve

(a) Interaction between any two departments of one firm
(b) Placing orders and giving instructions of suppliers
(c) Recruitment selection and training of employees.

3. Merits

(i) Easy to form and lower investment is required
(ii) Convenience
(iii) Speed
(iv) Global reach
(v) Cost saving
(vi) Movement towards a paperless society

4. Limitations

(1) Low personal touch
(ii) Delay in delivery
(iii) Requirement of hardware
(iv) Risk
(v) Low ethics

Most of the limitations discussed can be over come with due care and diligence. Some of the way to over come problems are taken up

(i) Websites are becoming more and more interactive
(ii) The speed and the quality of communication is improving
(iii) India has undertaken 150 such projects to diffuse e-commerce in all nooks and corners

5. On Line Transactions

e-business refers to shopping through internet or on-line.

On-line opens up the whole world as one shop.

There are three phases of doing business in e-business or on-line.

(i) Registration Before on-line shopping one has to register with the on-line vendor by filling up a registration form.
(ii) Placing an Order In on-line transactions the order can be placed by picking and dropping the items in the shopping cart.
(iii) Payment Mechanism In an on-line purchase payment is made through

(a) Cash on delivery
(b) Through cheque
(c) Net banking transfer
(d) Credit or debit card
(e) Digital cash

6. Security security Problems Related to e-commerce

The main security problem of e-commerce are

(i) Transactional risk
(ii) Data storage risk
(iii) Risk of thread to intellectual property and privacy

7. Resources Required for Successful e-business Implementation of e-business

(i) Computer hardware
(ii) Technically qualified staff
(iii) Computerised system of receiving payment
(iv) Well designed website
(iv) Telecommunication facilities

8. Outsourcing Concept BOP refers to getting a business task accomplished through an outside agency.

(i) Advantages

(a) Concentration on core competence
(b) Reduction in cost
(c) Help to avoid labour problem
(d) Benefits of latest development

(ii) Limitations

(a) Confidentiality
(b) Sweat shopping
(c) Protest in home country
(d) Ethical concerns

(iii) Types of Outsourced Services

(a) Financial Services Big companies often need services of specialists for managing finance. e.g., estimating the finance required, how and when to issue shares, debentures.

(b) Advertising Services For a long time the firms are depending upon outsourcing services. The business firms hand over the task of designing and carrying on advertisement campaign to outsourcing firm.

(c) Courier Services Courier services refers to postal services provided by the private firms for carrying mails, parcels etc. The common problem of government postal services was delay. The private outsources offer speedy movement of parcels and samples so business firm relay on them.

(d) Customer Support Services All durable goods require after sale or customer support service to register and attend the complaints of the customers. So firms prefer to outsource these services to outside agencies which are specialised in these tasks.