Attempt the following
1) What are the advantages and disadvantages of e-business?
Advantages of e-commerce are as follows:
1) Ease of formation: The formation of a traditional business is difficult, whereas to form e-business is relatively easy to start.
2) Lower Investment requirements: The investment requirement is low as compared to traditional business as the store does not have physical existence and can be managed with less manpower so if the trade does not have much of the investment but have contact (network), he can do fabulous business.
3) Convenience: The Internet offers the convenience of 24 X 7 X 365 days a year. Business is going on at any time and flexibility is available. Yes, e-business is truly a business that has been enabled and enhanced by electronics and offers the advantage of accessing anything, anywhere, any time.
4) Speed: This benefit becomes all the more attractive when it comes to information. Much of the buying or selling involves the exchange of information that the internet allows at the click of a mouse.
5) Global access: The Internet is true without boundaries. On one hand, it allows the seller access to the global market. On the other hand, it offers the freedom to the buyer to choose products from almost any part of the world. No need for face to face interaction between buyer and seller.
6) The movement towards a paperless society: The use of the internet has considerably reduced the dependence on paperwork. Thus, recording and referencing of information has become easy.
7) Government support: The government provides a favourable environment for setting up of e-business. This support ensures maximum transparency.
8) Easy payment: The payment in e-business is done by credit card, fund transfer, etc. and it is available round the clock..
The Disadvantages of e-business are a follows:
(1) Lack of personal Touch: E-business lacks a personal touch. One cannot touch or feel the products. So it is difficult for the consumers to check the quality of products.
(2) Delivery Time: The delivery of the products takes time. In a traditional business, you get the product as soon as you buy it. But that doesn’t happen in online business. This time lag often discourages customers e.g. Amazon now assures one-day delivery. This is an improvement but does not resolve the issue completely.
(3) Security issues: There are a lot of people who scam through online business. Also, it is easier for hackers to get your financial details. It has a few security and integrity issues. This also causes disturbance among potential customers.
(4) Government interference: Sometimes the Government monitoring can lead to interference in the business.
(5) High Risk: High Risk is involved as there is no direct contact between the parties. In the case of fraud, it becomes difficult to take legal action.
2) What are the types of e-business? Explain.
The followings are the types of business:
1) Business to Business (B2B)
2) Business to Consumer (B2C)
3) Consumer to Business (C2B)
4) Consumer to Consumer (C2C)
5) Business to Administration (B2A)
6) Consumer to Administration (C2A)
1) Business to Business (B2B): In this form, the buyer and seller are both business entities and do not involve individual consumers. Here, both the parties involved in e-commerce transactions are business firms and hence the name B2B i.e. business to business. Transactions between business firms come under this category. Business firms interact with each other for a variety of services.
2) Business to Consumer (B2C): B2C transactions have business firms at one end and its customers on the other end. The transactions under B2C are between business firms and consumers. Firms use their sites for a range of marketing activities. The cost of products and services is kept low through this method and the speed of transactions is also faster.
3) Consumer to Business (C2B) : In this electronic transaction, the consumer requests a specific service from the business. Consumer to Business is a growing arena where the consumer requests a specific service from the business. It enables buyers to quote their own prices for specific goods or services. A consumer posts his request with a set budget online and, companies review the customers’ requirements and bids out the project. For example, pest control services, taxi services, doorstep food delivery, etc.
4) Consumer to consumer (C2C) : It facilitates the online transaction of goods or services between two people. Consumer to consumer (C2 C) involves the electronically facilitated transactions between consumers through a third party. Common consumer posts an item for sale and other consumers bid to purchase it. The sites are only intermediaries, just to match the consumers.
5) Business to Administration (B2A) : This part of e-commerce encompasses all transactions conducted online between business and public administration. For example, registration of companies, payment of taxes, getting permits, etc.
6) Consumer to Administration (C2A) : The consumer to Administration model encompasses all electronic transactions conducted between individuals and public administration. For example, getting a passport, aadhaar card, licenses etc.
3) What are the advantages of outsourcing?
Advantages of Outsourcing:
1) Overall cost advantages – It reduces the cost and also saves time and effort on training costs.
2) Stimulates entrepreneurship, employment, and exports- Outsourcing stimulates entrepreneurship, employment, and exports in the country.
3) Low manpower Cost- The manpower cost is much lower than that of the host company.
4) Access to professional, expert, and high-Quality services- Mostly the tasks are given to people who are skilled in that particular field. This provides us with a better level of service and fewer chances of errors.
5) Emphasis on core process rather than the supporting ones- With its help companies can focus on their core areas which lead to better profits and increase the quality of their products.
6) Investment requirements are reduced – The organization can save on investing in the latest technology, software, and infrastructure and let the outsourcing partner handle the entire infrastructure.
7) Increased efficiency and productivity – There is increased efficiency and productivity in the non-core areas of an organization.
8) Knowledge sharing – Outsourcing enables the organization to share knowledge and best practices with each other, it helps develop both the companies and also boosts goodwill in the industry.
4) What are the disadvantages of outsourcing?
Disadvantages of Outsourcing/Limitations of Outsourcing
1) Lack of customer focus- An outsourced vendor may be catering to the needs of multiple organizations at a time. In such a situation, he may lack complete focus on an individual organization. As a result, the organization may suffer.
2) A threat to security and confidentiality – The confidential information of the organization may be leaked to the third party, so there are security issues.
3) Dissatisfactory services – Some of the common problem areas with outsourcing include stretched delivery time and substandard quality.
4) Ethical issues – The major ethical issue is taking away employment opportunities from one’s own country when the function is outsourced to a company from another country.
5) Other disadvantages – i) Misunderstanding of the contracts, ii) Lack of communication, iii) Poor quality and delayed services.