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CBSE Business Studies Class XI


Business Studies - CBSE CLASS XI

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The world of business in changing e-business and outsourcing are two most obvious expressions of this change. The newer modes of business. E-business and BPO are not new business, but simply the new ways of doing business. Interestingly, the two trends of e-business & BPO are continuing to evolve, and that is why these are referred as “Emerging modes of Business”.

e-Business - Electronic Business :

Meaning - Means conducting industry, trade and business using computer network 24×7×365 days a yr. Business (24 hrs. × 7 days × 365 days a year business), there by dismantling the time & space / locational constraints of its performance.

e-commerce :

means buying & selling products & services over the internet. It makes use of e-mail, electronic fund transfer etc.

Scope of e-business :

  1. B2B Commerce :- Business to Business - Both the parties are business firm, e.g. Manufacturer of an automobile requires assembly of a large number of components which are being manufactured by different firm; Maruti Udyog, Bajaj auto etc. use B-2-B commerce.

  2. B2C Commerce : - Business to Customer - Transaction taking place between business & individual customers :
      1. It facilitates promotion of products on line. e.g. music or film
      2. Companies sell products & services on line to customer e.g. sell Amul products online.
      3. It is fast & 24 hrs.

  3. Intra - B. Commerce :- Parties involved are from with in a given business firm. It makes it possible for the marketing department to interact constantly with the production department to get information about customer requirement.

  4. C2C Commerce :- Consumer to consumer - Business originates from the consumer & the ultimate destination is also consumer.

Its area of application is the formation of consumer forum. e.g. selling used books over the internet.

Comparative Study e-business & Traditional business :

Basis Traditional Business e-business
1. formation Difficult Simple
2. Physical presence Required Not required
3. Locational requirement Market None
4. Cost of setting up High Low/no requirement of physical facility


  1. Ease of formation & lower investment requirements :- It is relatively easy to start, no huge stock & capital.

  2. Convenience :- 24×7×365 Anywhere, anytime, anything.

  3. Speed : Internet allows any transaction alone at a click of mouse

  4. Global reach / access : Customers have complete freedom to choose products from almost any part of the world.

  5. Movement towards a paper less society : Using internet or mobile phones, thereby reducing dependency of people on paper.

  6. Reduced costs : Reduced cash of advertising exchange of information & delivery.

  7. Customer convenience & satisfaction : Use of internet to hug goods / services & payment can also be made on line.

Limitation of e-business :

  1. Low personal touch: People want to test & feel products like garment, furniture, jewellery etc which is not possible here.

  2. Gap between order taking/giving and order fulfillment speed :- Physical delivery takes time & some time due to technical reasons websites takes long time to open.

  3. Need for technology capability & competence of parties to e-business :- requires computer knowledge and there is a shortage of skilled persons who can successfully handle e-commerce.

  4. Increased risk due to anonymity & non traceability of parties: It becomes difficult to establish the identity of the parties.

  5. People resistance: e-business means new ways of doing things with new technology causes stress and a sense of insecurity. So people resist of entry into e-business.

  6. Ethical fallouts: Companies use an ‘electronic eye’ to keep track of computer files used by their employees, their e-mail accounts etc. It is not ethical.

Buying / Selling Process :

Buyer finds seller
Selection of goods
Negotiation of price & delivery terms
Post sale activity

Except delivery stage, all stage unvalue flow of information which include :

  1. Face to face interaction : Time consuming.
  2. 9 Telephone : presence of both parties for verbal exchange.
  3. By post : Time consuming.
  4. Internet : free from most of the problem referred above

Step involved in on-line trading from a customer’s perspective.

  1. Registration : To fill a registration form with an on line vendor to have an ‘account’
  2. Placing order : - Negotiate price and delivery terms & place an order with the vendor.
  3. Payment mechanism : Cash on delivery (COD) / Cheque / Net-banking transfer/ credit or debit card (Digital / e-cash).


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CBSE Business Studies Class XI ( By Mr. Kailash Gururani )
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