Rajasthan Board RBSE Class 11 Business Studies Chapter 9 Recent Trends of Business
RBSE Class 11 Business Studies Chapter 9 Textual Questions and Answers
RBSE Class 11 Business Studies Chapter 9 Multiple Choice Questions
This is not included in e-commerce –
(a) a business or mutual contract with its suppliers
(b) the mutual contract of a business with its customers
(c) the contract of a business with its geographically spread-out units
(d) a mutual contract between various departments of a business
The structural payment system of e-commerce –
(c) cash on delivery
(d) credit and debit card
This is not an application of e-commerce –
(a) online trading
(b) contract research and development
(c) online bidding
(d) online acquisition
A call centre conducts –
(a) both customer-oriented and back-office business
(b) both inbound and outbound voice-based business
(c) only inbound voice-based business
(d) only outbound voice-based business
(a) provides both vital and non-vital contracts for service processes and also production and research and development, outside. It is limited only to the domestic sector.
(b) outsourcing outside geographical boundaries of the countries is also included in it. (c) prohibits contracting non-vital commercial processer outside.
(d) only prohibits information technology derived services to be contracted outside.
RBSE Class 11 Business Studies Chapter 9 Very Short Answer Type Questions:
Differentiate between e-business and e-commerce.
The sphere of e-business is more extensive as compared to e-commerce.
What is mobile e-commerce?
The process of selling or buying products or services using a wireless hand-held device, like a cellular phone, personal digital assistant, etc. is called mobile commerce.
What is BPO?
BPO implies giving the responsibility of executing some task to another party.
What is the utility of franchisee?
The special benefit to a franchisee in franchising is that he can launch his business quickly on the available trademark and he also does not need to build up the resources and basic infrastructure.
RBSE Class 11 Business Studies Chapter 9 Short Answer Type Questions
Mention the types of franchisees.
The franchisee can be divided into three parts:
- Small-sized franchisee – Those franchisees whose sphere is limited to one city, town or block.
- Medium-sized franchisee – These are limited to one or more than one district.
- Large-sized franchisee – Those franchisees whose sphere extends to regional or metropolitan level.
Describe the responsibilities of a partner of a franchisee.
Following are the responsibilities of a partner of a franchisee:
- The franchiser has the important issues of protection of its trademark, control of business concept, and protection of technical know-how to deal with.
- The franchisees have to be given those services for which trademark is made and has become famous.
- The symbols, logos and trademark of the franchisee have to be displayed at prominent places at the service location.
- The employees must wear a specifically-coloured uniform.
State two points of difference between e-business and e-commerce.
- The sphere of e-business is more extensive as compared to e-commerce.
- E-business includes sale-purchase, providing services to customers and cooperating with partners, while e-commerce includes transactions like www and internet.
Describe any three points of assistance given to the users by Internet Commerce.
Three points of assistance given to the user by internet commerce are:
- In internet business, a business can be done 24 hours, 365 days, where any person can give instructions.
- The number of transactions is more on the Internet. In most of the cases, a click of a mouse can make a transaction.
- The menu of products and services can be searched to obtain information about an online purchase.
Explain the stages of an online transaction.
The procedure for online transaction is:
- The first stage is before the transaction, where effort is made for promotion and giving information.
- The second stage is the actual transaction, where products are transacted after a lot of haggling.
- In the third stage, the product is delivered to the final user.
RBSE Class 11 Business Studies Chapter 9 Essay Type Questions
Describe in detail the steps included in online trading.
The trend of online marketing has been growing rapidly since the last decade. It is taking an extensive form, growing from important cities to smaller towns and semi-urban centres in terms of online trade.
Online marketing may have to go through three stages on the basis of its trends –
1. Pre-Sale-Purchase Stage – It includes propaganda and publicity information.
2. Sale-Purchase Stage – Except delivery stage, all other stages involve a flow of information. Information exchange is also done through traditional business system, but it takes place with serious obstruction of time and investment. Internet, however, is free from all such obstructions. The delivery can be given online in case of information-intensive products and services.
3. Delivery Stage – Except for the delivery stage, all the other stages involve a flow of information. Information exchange is also done through traditional business system, but it takes place with serious obstructions of time.
(1) Registration – The buyer has to register himself online with the seller, in which the indicating password of the buyer’s account has to be given and the shopping cart protects your password. This password is known only to the buyer and the seller, and to no one else.
(2) Sending Order — You can select the product of your choice from the shopping cart which is an online record of all the available products. After selecting the product, you can exit and select your payment option.
(3) Payment System – The buyer can select one of the following options of payment.
(a) Cash Payment on delivery.
(b) Cheque payment on delivery.
(c) Net banking transfer – Transfer of payment into the bank account provided by the seller before delivery.
4. Credit and Debit Card – It is known as ‘Plastic Money’. A credit card gives the facility of credit buying to the holder. The amount of debt on the cardholder is taken upon itself by the issuing bank and it deposits the amount of transaction, while a debit card allows the user to buy up to that limit to which credit balance remains in his account.
5. Digital Cash – It is a form of electronic currency, which exists only in cyberspace. In this, first of all, you’ll have to deposit the amount in a bank (through cheque/draft, etc.) which is equal to that digital cash which you need to credit in your favour. After this, the bank conducting e-cash transaction will send you a specialised software (which you can download onto your hard disk) which gives you the permission to make digital withdrawals from the account in your bank. Now you can use digital funds to buy products/services on various websites. This payment system makes efforts to remove the problems related to the use of the numbers of credit cards on the internet.
Describe in detail the various concepts of business to customer commerce.
B2C commerce, as the name suggests, includes the customers on one side and business firms on another side. The exchange of products, services or information between an enterprise and customer is called the business to customer e-commerce. It denotes a financial transaction or online sale between a business and consumer, with the help of e-commerce.
The company can introduce new products on the market, also the expenditure on advertisement is comparatively lower. The customers are prone to making impulse purchases and typically make buying decisions independently. The customers can know about the merchandise products through the internet and select the same. It works 365 days, 24×7 and also provides information and own products like software film, music. And they can pay through e-banking, Debit Card, Credit Card or through any other means.
Companies are coming closer towards their customers because, by this method, the companies are giving them their needful. Companies tend to know about the needs of their customers through an online trading system.
Customers can, any time, call the call centres and ask for a resolution of their problems and can also register them.
Explain network marketing in detail.
Computers are being used in the business world, where the internet also plays a very important role. The net is a system of networks spread out across the world and connected to computers world-wide where information can be accessed through one computer. Due to the internet being a wide network to spread messages, it has become an important component for e-commerce and e-mobile commerce.
Through this, people can easily do propaganda and publicity of products and services. Nowadays, the facility of returning products which are not found good when bought through online marketing is being upgraded due to its popularity, so that the customers are impressed and motivated to buy other products.
The internet provides assistance to users in the following ways:
- Information about any topic can be obtained through the world wide web.
- News available in leading newspapers and TV channels can be read or seen.
- Messages can be exchanged using e-mail. When two parties are connected to the internet, the mutual conversation can be made and messages can be exchanged.
- Files, pictures, animation, etc can be transferred to another location.
- The menu of products and services can be searched to obtain information about an online purchase.
- Website regarding information about the products and services of an organisation can also be made.
Write an article on BPO.
BPO implies ‘contracting another service provider party’. Originally, outsourcing is another trend which is restructuring the business in a significant manner. It is that longterm contract which is given for contracting usually secondary (non-vital) and later some major activities or for profiting from the experience, expertise, efficiency or even investment of the third party specialists.
The characteristics of BPO are:
- Acquiring all those services from outside which you have been performing yourself till now.
- Entrusting secondary (non-vital) business activities only.
- Outsourcing of processes can be done to either affiliated or to a third party.
Scope of Outsourcing:
Four main elements are included in outsourcing – contract creation, contract research, contract marketing and information science.
Need for Outsourcing:
Need for outsourcing and its advantages are –
- Focusing on Attention – Freedom from looking after routine back-office operations enables the managers to focus more on the primary business.
- Quest for Excellence – BPO uses the necessary guidance and skills of another company after ascertaining the specialised work sphere, instead of recruiting and training employees.
- Cost Reduction – This is achieved through process improvement, re-engineering and use of technology, which reduces administrative and other costs that are included.
- Growth through Alliance – Upon outsourcing the less-important processes, companies can pay attention towards sales growth, market share growth, development of new products/services, orientation towards new markets, customer services and their satisfaction.
- Encouragement to Economic Development – Employment opportunities and economic development is enhanced in the countries which have BPOs.
Concerns over Outsourcing are –
- Confidentiality – The outsourcing of information system is unable to maintain proper confidentiality and secrecy.
- Sweat Shopping – BPO focuses more on ‘activity skills’ rather than ‘thinking skills’ and provides transactions at a minimum rate, hence the countries having BPOs do not earn more.
- Ethical Concern – Countries having BPOs increase unethical activities including child labour, gender inequality, etc.
- Resentment in Home Countries – When production, growth, messages, etc. move out of the country, they are followed by an outflow of employment and job opportunities, that results in an increment of unemployment in the country.
Describe in detail the growing importance of franchisee in the development of modern business.
The system of using a successful business model of another firm is called franchising. The growing importance of franchisee in the development of modern business is due to the following reasons –
1. Minimum Investment – Franchisee is just a temporary business investment. Business is not bought to be owned but is acquired at lease or rent for a certain period of time. Therefore, any people can select any business according to their will and budget, and with that estimated budget, they can easily start a franchisee.
2. Training and Technical Knowledge – A franchisee owner does not require a lot of technical knowledge and training, a little business study and social network, and the ability to bear the risk can help him/her to start one. National/International advertising. training and tangible and intangible support services are usually provided by the franchisers.
3. Business on the available trademark – The most important benefit of the franchisee is that the company whose franchisee has been taken can be easily encashed.
4. The need of Advertisement – The franchisee is a kind of business in this modern era of business, where, a person can sell the product available in his showroom in the name of the company, therefore he/she does not require to advertise the product.
5. Operation & Control – Franchising is the only means by which entrepreneurial capital investment can be obtained without losing control of the operation of the chain and a distribution system can be built for services’ office. After building and executing the brand and formula, the franchiser can sell the franchise, and by minimising the risks, using the capital and resources of their franchisee, they can expand rapidly.
6. To get established in the market in a short time – Any refined company which has already established its name in the market, would only give its name to be used by another country on the basis of some conditions, so, that business grows rapidly and hence the company does not need to rectify again and again.
RBSE Class 11 Business Studies Chapter 9 Additional Questions and Answers
RBSE Class 11 Business Studies Chapter 9 Multiple Choice Questions
The online transaction of products and services is called –
(c) Business Process Outsourcing
(d) None of these
The transaction of products, services and information between two business companies is called –
The term ‘e-business’ was first used in which year by IBM to expand its business?
(a) In 1897
(b) In 1997
(c) In 1899
(d) In 1999
(b) In 1997
The full form of www is –
(a) Wide Web World
(b) Web Wide World
(c) World Wide Web
(d) World Web Wide
(c) World Wide Web
Advantage of E-commerce is –
(a) Detailed Investigation
(b) Better Customer Service
(c) Time Saving during Transaction
(d) All of the above
(d) All of the above
Which company made the SMS service centre?
(b) Yellow Computing
(c) Dr Meterena
(c) Dr Meterena
What percentage of revenue of BPO is received by call centre -‘
(d) None of these
The word ‘franchise’ has its origin in the Anglo-French word –
The place of origin of the franchise is –
China enacted its law on the franchisee in the year –
RBSE Class 11 Business Studies Chapter 9 Very Short Answer Type Questions
What is E-Commerce?
The online transaction of goods and services is called E-Commerce.
What is B2C?
The exchange of products, services or information between an enterprise and customer is called the business to customer (B2C) e-commerce.
What do you mean by E-business?
Conducting business including operation of business, sale, purchase. etc. with the help of a computer network (Internet) is called e-business.
State two advantages of E-Commerce.
- Better customer service.
- Less time consumed in transactions.
State two defects of E-commerce.
- No personal contact
- Includes more risk.
Mobile commerce is based on which technology?
WAP (Wireless Application Protocol) technology.
Which company invented the Vending Machine?
Who initiated the first e-commerce service for cell-phone?
Name one assistance provided by the Internet to its users.
Before 1979, the Internet was known as –
How many stages does online marketing have to go through, according to the trend?
- Pre-sale-purchase stage.
- Sale-purchase stage.
- Delivery stage.
In the pre-sale-purchase stage, what kind of information is given regarding online marketing?
Propaganda and publicity information
What is a Shopping Cart?
It is the folder that contains the detail of the products that are offered online for sale. It is also known as a shopping trolley.
State two features of BPO.
- Contracting outside
- Entrusting Secondary (non-vital) business activities only.
What elements are included in BPO?
- Contract Creation.
- Contract Research.
- Contract Marketing.
- Information Science.
State two advantages of BPO.
- Reduction in cost.
- Use of External expertise.
State two demerits of BPO.
- Lack of Secrecy.
- Contract-related problems.
What is Franchising?
The system of using a successful business model of another firm is called franchising.
The word ‘Franchisee’ has originated from which word?
The word ‘Franchisee’ has its origin in the Anglo-French word ‘Frankese’, which means ‘free’.
What do you mean by a small-size franchisee?
There are those franchisees whose sphere is limited to one city, town or block.
The origin of the franchisee is in which country?
In the United States of America
Name any two franchises.
- Subway sandwich and salad.
- McDonald’s, Re-fresco, Cafe Coffee Day.
According to the International Franchise Association, how much business in the USA is conducted through franchises?
A contract between franchisor and franchisee is established under which Act?
Contract Act 1872 and special allowance Act 1963.
RBSE Class 11 Business Studies Chapter 9 Short Answer Type Questions (SA – I)
What is E-commerce? Explain.
The online, commercial activities of providing products and services to the customers are called E-Commerce. It is a synthesised form of communication technology and information that is involved in business transactions.
What is C2C E-Commerce?
In this type, the transaction takes place between consumers through a third party. For example, online auction, in which, the consumer sends an item for sale on the internet and other consumer makes bids to buy it, while a third party generally charges a service fee or commission to arrange and conduct the transaction.
Examples are – OLX, ebay.com.
What is Digital Middlemen E-Commerce?
It implies an arrangement in which, a company makes a virtual community or portal on the internet and includes a number of companies or a third party company in this community, commercially.
State four merits of E-Commerce.
- The sphere of e-commerce extends to the international level and helps in getting information about new markets.
- It improves customer service.
- It helps in reducing the transaction time.
- It helps in reducing investment and cost.
- It increases the volume of trade.
What kind of transactions are involved in Mobile Commerce Application?
All financial transactions are done through mobile phone in mobile commerce application, i.e., making payment for a product through the E-cash method or transfer of money between two accounts or paying money for a purchase.
What is online registration?
The buyer has to register himself online with the seller, in which the indicating (password) word of the buyer’s account has to be given. This password is known only to the buyer and seller, and to no one else.
In Net payment system, which options can be chosen by the buyers?
- Cash payment on delivery.
- Cheque payment on delivery.
- Net banking transfer.
- Credit or Debit Card.
- Digital Cash.
What is Credit and Debit Card? Explain.
These are also known as plastic money. They are very important in an online transaction. A credit card gives the facility of credit buying to the holder, while the debit card allows the user to buy up to that limit to which credit balance remains in his account.
What is Digital Cash?
It is a form of electronic currency, which exists only in cyberspace. In this, first of all, you’ll have to deposit the amount in a bank (through cheque/draft, etc) which is equal to that digital cash which you need to credit in your favour. After this, the bank conducting e-cash transaction will send you a specialised software (which you can download onto your hard disk) which gives you the permission to make digital withdrawals from the account in your bank. Now you use digital funds to buy products/services from various websites. This payment system makes efforts to remove the problem of the use of the many credit cards on the internet.
What is the ethical deal in BPO?
Companies often choose BPO because the labour of that country is comparatively cheaper or the country does not oppose child labour, and also, the ladies are to be paid less than men. In our country, child labour is considered a crime, also the women need to be paid equal to men. So is it right to perform this unethical task to save some money? In reality, this is not right and it only promotes unethical acts.
What is Franchising?
The system of using a successful business model of another firm is called franchising. The word ‘franchise’ has its origin in the Anglo-French word ‘franchise’, which means ‘free’. It is used both, as an option to the franchisee to develop a ‘chain store’ for the distribution of products and also to protect himself from the investment and liability of creating such a chain.
Name any 5 franchisees.
- Subway Sandwich and Salad.
- McDonald’s, Refresh, Cafe Coffee Day.
- Eleven Inc (Convenience store).
- Hampton Inns and Sweets (minimum budget hotels).
- Supercuts (Hair Saloon).
State 4 demerits of Franchisee.
- There is no guarantee or warranty in a franchisee agreement.
- Franchisee agreements are one-sided, in favour of the franchisee.
- In a low-cost franchisee, the training fees are high.
- There is no promise of success or profit from the franchiser.
RBSE Class 11 Business Studies Chapter 9 Short Answer Type Questions (SA – II)
What is Electronic Business?
E-business is the conducting of business on the internet, in which, apart from sale purchase, providing co-operation to the buyer and giving support to other supporting partners in business is also included. E-business is a form of e-commerce, which means conducting business on the internet. However, apart from selling and buying, it also includes providing services to the buyer. The business includes sale and purchase, while e-commerce includes some other things like transactions on www and internet, electronic fund transfer, etc.
Explain the resources of E-business.
- Computer Hardware – The base of E-business is the internet. Therefore, it requires a well-updated and fast speed computer.
- Technical Officer – To use the internet, a skilled technical officer is required. This officer would receive the order, initiate it, received the payment, etc.
- The computerised system of receiving payment – For this, the businessman has to do the settlement with the banks and credit card offices; so that the task can be done easily.
- Development of Website – To contact with the customers, a website needs to be formed.
- The facility of Telephone – Appropriate telephone lines and the Internet must be available.
State three differences between E-business and Traditional business.
Three Differences between e-business and traditional business are as given below.
State the demerits of E-Commerce.
- It does not involve direct contact with the customer.
- The customer is unable to check the quality of the product before buying it.
- Due to various technical problems, more time may be consumed.
- The people involved in the transaction must have the required technical knowledge.
- Returning products, if not found to conform to the standard, can be stressful.
- Risk in online transaction is more since various parties involved can face financial loss, credit loss and psychological damage.
What is the internet? Explain in detail.
The internet is also called the Net. The Net is a system of networks spread out in the entire world, through which information collected by other computers can be accessed through one computer. It provides information about various things. The internet was created in the form of a defence project in 1969 and implemented by the Advanced Research Projects Agency (ARPA) of the US government and was named ARPANET. Later, it was developed in the field of academics and research. After that, it was used for the common public. It came to be known as the internet from 1979. It has developed as a global network today.
Explain the merits of BPO.
- More attention on core business – Freedom from looking after routine back-office operations, enables the managers to focus more on the core business of the company.
- Cost Reduction – This is achieved through process improvement, re-engineering and use of technology, which reduces administrative and other costs that are kept controlled.
- Exemption from labour problems – It requires less labour and less human effort.
- Benefits of Modern Development. It provides expert services, and hence use of modern techniques benefits the companies.
State concerns over Outsourcing.
- Confidentiality – The outsourcing of information system is unable to maintain confidentiality and secrecy.
- Sweat Shopping – The firms using BPO, works upon ‘activity expertise’ rather than ‘thinking expertise’. Hence, it tries to provide more work with less human resources, therefore the countries doing BPO do not earn more.
- Ethical Concerns – BPOs encourage unethical concerns like child labour and discrimination on gender basis.
- Resentment in home countries – The growth, development, messages based upon the services, move out of the country, due to which employment and job opportunities also outflow in the other country, that results in unemployment in the home country.
How does BPO represent new ways of doing business?
In traditional business, the businessman himself does all the tasks, which, in turn, results in less expertise in employees and hence less productivity. While in BPO, the main activities are done by the businessman and the activities that are of less importance are shifted to BPO people or other firms who are experts in doing such tasks. This results in excellent work output and also the cost is reduced. In this way, the customers get high-value products in lesser time, and also it motivates employment. Therefore, BPO provides new ways of doing business.
RBSE Class 11 Business Studies Chapter 9 Essay Type Questions
What do you mean by e-commerce? Explain its various types.
Electronic commerce is a general term in which all such commercial transactions implemented on the electronic medium are included, with the help of which customers and suppliers exchange products, services or information. This contains a suite of various technologies, including Electronic Fund Interchange (EFI), electronic messaging, Electronic Fund Transfer (EFT), Electronic Bulletin Board (EBB), electronic publishing and database services. The online, commercial activities of exchange of products and services are collectively called e-commerce. It is a synthesised form of communication technology and information that is involved in business transactions.
Types of e-commerce:
1. B2B E-Commerce – The exchange of products, services and information between two business enterprises is called B2B E-commerce.
2. B2C E-Commerce – The exchange of products, services or information between an enterprise and customer is called the business to customer e-commerce.
3. Consumer to Business E-commerce (C2B) – In consumer business transaction, reverse customer to business auction is included which empowers the consumer to execute transactions. For example, an airline offers journey tickets at the best minimum price to a passenger.
4. C2C E-Commerce – In this type, the transactions take place between consumers through a third party. For example, online auction in which consumer sends an item for sale to the internet and other consumers make bids to buy it, while a third party generally charges a service fee or commission to arrange this transaction.
5. Business to Government (B2G) E-Commerce – This is usually defined as the commerce conducted between enterprises and public sector and includes such processes as public acquisition, licensing process and other government-related activities. Usually, the company does this with the help of the website. The company gives out information about its products and services on this website and the customer has the facility to order through this website and also receive customer support services through it.
6. Digital Middlemen E-commerce – Digital middlemen implies an arrangement, in which, a company makes a virtual company or portal on the Internet and includes a number of companies or a third company in this community commercially.
What are the Benefits and Demerits of E-Commerce?
- Cost Reduction – While doing business through E-commerce, investment is considerably reduced, because the products do not have to be stored in godowns, more employees are not needed and the expenditure on advertisement is also lower.
- Best Customer Service – Companies are getting success in attracting their customers by providing them with the latest information about their products on web portals, which facilitates customers in choosing between various products available in the market.
- Time-Saving – In comparison to usual selling and buying, e-business consumes less time because the distribution mediums for products are less and customers can be contacted directly.
- Wide Access – The sphere of e-commerce is not limited to national boundaries, but it extends to the international level and helps in getting information about new markets.
- Large-Volume Business – It becomes easier to reach a large number of and a variety of customers through e-commerce and to find new markets.
Drawbacks of E-commerce:
- It does not involve direct contact with the customers.
- The actual delivery of products to the customer takes a long time and unnecessary delays may also occur.
- The customer is unable to check the product he is buying by actually seeing it or touching it.
- The people included in the transaction must have knowledge about technical language.
- Returning products can be stressful and may also take a long time.
- It involves more risk because a person can use the name of another person, also the risk of hacking is involved in the computer.
What are the limitations of e-business? Are these limitations enough to restrict its activity area? Debate.
Limitations of e-business are:
- Low Personal Touch – The e-business is an extensive part of business, but it lacks personal touch. For the products that need a more personal touch like clothes, etc. this is not an appropriate option.
- The incongruence of Order Fulfillment Speed – Like on internet, any order can be placed through a single click of a mouse, but it takes time to fulfil it physically, and hence it can take more time due to various technical issues and unnecessary delays can make a customer tired of waiting
- The need for Knowledge of Computer Technology – Both the parties involved in the transaction must have proper knowledge of computer technology.
- Increased Risk to Both Parties – Both the Parties – the buyer and the seller bear a huge risk because a person can use the name of another person. The use of a credit card involves high risk. Other than this, hacking and risk of the virus in a computer is also involved.
- Popular Resentment – The new way of performing the activity can result in insecurity among the people, resulting in a negative feeling of people towards e-business.
- Ethical Fallouts – Nowadays, companies, in order to send their workers and people, customer file, e-mail folders, on their website, use different software, also called electronic (I), but this is actually unethical.
In spite of the above limitations, e-business is developing rapidly. Efforts are being made to control these drawbacks.
websites are getting increasingly built in a way to surmount the problem of feel and touch. Communication technology is continuously improving the quality and speed of communication through the internet.
Concerted efforts are being made to resolve the problem. E-business is today’s need, therefore, people should know about it.
State the difference between traditional business and e-business.
Difference between traditional Business & E-business
What is E-business Risk? Explain its various types.
Risk means the possibility by which a business transaction may cause financial, mental or physical damage.
Types of risk involved are:
- Transactional Risks –
(a) Mistake about transactional order – The buyer can refuse that he has made any order, similarly, the seller can refuse that the buyer has made some order. Therefore both can be a mistake.
(b) The mistake of Delivery – Non-delivery, delivery is done on the wrong address, delivery not taking place according to the order made, all these are the mistakes that can be made regarding delivery.
(c) Mistake about Payment – The buyer can claim to have made the payment, while the seller may not agree to it, this may result in a mistake regarding payment.
- Data Storage and Transmission Risks – In an E-transaction, the information can be sent to some third person through hacking or virus, which he can misuse. The virus is a programme that results in causing harm to the computer. This can result in manipulating the message. It can result in a barrier in the activity, can harm the data files, etc. To prevent all this, antiviruses must be installed.
- Risk of Threat to Intellectual Property and Privacy – Internet is an open place. The information once sent here cannot be stopped from being spread. The data provided by you can be sent to other people and other types of promotional emails may start coming in. Therefore, information must be clearly defined before uploading it.
Why are BPO and e-business called growing trends? State the factors for these growing trends.
E-business and BPO are both proceeding towards re-structuring the methods of present and future business. Today, paper-free business is the trend, and for their diverse activities, they are accepting the BPO, and also giving more attention towards other related important works. These two have totally changed the business scenario. Today, the whole world is being treated like a family, through which contact can be made by a single click. These trends are growing continuously. More features will evolve in the future.
Factors for these growing trends are:
- Increasing Pressure of Competition – In recent times, the increased pressure of competition has forced the businessmen to maintain their dignity by making available high-value products at less price. That is why, new techniques of business like e-business and BPO have come into practice, through which, in less period of time, the demands of customers can be fulfilled.
- Specification – Business is growing rapidly and new specific products are been made.
- Origin of Digital System – Origin of the digital system has transformed the world of Business. The computer has evolved a new generation of proficiency. The world has shrunk. Through the internet, the contact can be made with a single click throughout the world. The computer has given birth to e-business and BPO.
- Global Reach – Both e-business and BPO give power to globalisation. Today, Sellers can sell their products in any part of the world.
- Ease – As, business firms are showing their interest in BPO, consequently, through E-business, product delivery has become easy.
- Focus on Quality Products – BPO provides development and increase in production because the producer focuses only on the main business.
- Economic Development – BPO and e-business increase efficiency and employment and this result in economic development.
Explain the concept of outsourcing in detail.
BPO implies giving the responsibility of executing some task to another party. This process reduces investments, and the firm is able to focus more on its core business. It is a contract which is given for contracting usually secondary (non-vital), and later some major activities or for profiting from the experience, expertise, efficiency or even investment of third party specialists.
Its various concepts are:
1. Outsourcing Contracts – BPO implies “Contracting another provider party,” Originally, outsourcing is another trend which is restructuring the business in a significant manner. Outsourcing is that long-term contract which is given for contracting usually secondary (non-vital) and later some major activities or for profiting from the experience, expertise, efficiency or even investment of third party specialists. ,
2. Generally non-core business activities are outsourced – Generally, firms use BPO for their non-vital activities or secondary activities, while they operate their main tasks on their own. Like, teaching is an important part of a school, while operating a canteen, book store, vehicle stand are secondary. Therefore, the other people doing these secondary activities for the school will be termed as outsourcing.
3. Processes may be Outsourced to a third party – A firm /company/ industrial group spread on an international level can outsource a number of activities to its associate companies operating in different countries. These activities include recruitment, appointment, etc. These companies appoint third parties to perform their tasks.