Default on delivery - wrong address & wrong goods delivered.
Default on payment - Seller does not get payment where as customer claims that the payment was made.
II. Data storage and transmission risk :
Virus destroys information
Hacking : means unauthorized entry into website.
III. Risk of threat to intellectual property & privacy :
Once the information in available on internet, it may be copied.
Resources required for successful e-business implementation
Well designed website.
Adequate computer hardware.
Technically qualified and responsive workforce.
Effective telecommunication system.
OUTSOURCING :
Meaning : Outsourcing means contracting out non core & routine activities to outside agencies with a view to benefiting from their experience, expertise & efficency e.g. Reliance Industries Ltd. wants to advertise its ‘Vima’ brand of clothing. it may appoint ‘X Advertising Co. to design, prepare & release advertisements on its behalf.
Nature / Salient features of outsourcing :
Outsourcing involves contracting out :
e.g. activities like sanitation, (cleanliness) outside agencies on contractual basis.
Generally non-core business activities are outsourced :
Financial Services: e.g. issue of shares / debentures etc.
Advertising Services : avail the services of expert in advertising related work.
Courier Services: with cheaper rates & safety.
Customer Support Service: After sale service i.e. handling diverse complaints from their customers.
Processes may be outsourced to a captive unit or a third party :
There are three types of third party service providers.
Captive BPO unit : Provides service of a given kind to only one firm.
Horizontals : Service provided to a wide base of clients, cutting across industries.
Verticals : Specialize in one or two industries & scale up to doing a number of process from non-care of care.
Scope / Segments of outsourcing :
Contract manufacturing
Contract research
Contract sales Information
NEED FOR OUTSOURCING (BENEFITS) :
Focusing on core functions: By contracting out routine / non-care activities, a company can focus on more crucial matters.
Quest for excellence / benefit of specialization : Outsourcing agency provide expertise of concerned function.
Cost reduction: Specialist perform the job at lower price due to large scale services.
Convenience & less investments: The firm need not to invest money in creating & maintaining system for routine & non-care activities.
Economic growth and development : Due to outsourcing every function is performed by the organization most competent to do it. Division of labour & great or specialization helps to maximize productivity & profits limitation of outsourcing.
LIMITATIONS :
Confidentiality : Vital information / knowledge may pan to competitors. via outsourcing firms.
Sweat Shipping : Outsourcing firm try to get maximum benefits from Low-cost manpower.
Ethical concern : Use to child labour in outsourcing firm n unethical.
Resentment in home counters : Contracting out jobs / employment may cause resentment in home countries.
Importance : Questions : (1-10 One mark each) :
Mention any two strongest trends that are shaping the business.
What is e-business.
What is e-commerce.
Mention any two application of e-business.
Give two examples of application of C2C commerce
Mention any two importance of e-business.
How does e-business provide customer convimence?
What is the popular name for credit cards & debit cards.
What is VIRUS.
Mention two types of e-business risks.
3/4 MARKS QUESTIONS :
State any three difference between e-business and traditional business.
What are the opportunities & benefits offered by e-business to the customers.
Explain briefly any four limitations of e-business.
Why are business increasingly outsourcing services. Explain any three reason.
5/6 MARKS QUESTIONS :
Elaborate the steps involved in on-line trading.
How can a business firm assure safety an security of e-transaction? Explain any four methods.
CBSE Business Studies Class XI ( By Mr. Kailash Gururani )
Email Id : [email protected]
