Online business takes extra time to deliver the products to the consumers. The best part of having these questions is that the asked question itself projects a hint of its answer. High-tech it may be, e-business, however, lacks warmth of interpersonal interactions. Online shopping is the future of the retail market. By now, you might have formed the opinion that B2C is a one-way traffic, i.e., from business-to-customers. It may be pointed out that most of the limitations of e-business discussed above are in the process of being overcome. The insurance company acquired the burnt material and approved his claim. This may cause resentment back in the home country if the home country is suffering from the problem of unemployment. CBSE plans to increase the weightage of such questions in the upcoming years. Their manager suggested a claim from the insurance company against stock lost due to fire in the warehouse. So, go ahead and check the Important Notes for CBSE Class 11 Business Studies Emerging Modes of Business from this article. Let us have a look at them-. A person can't be friendly in to the requirement of garments and other persona . Syllabus. Some B2B advantages include larger orders and more security during the sales process, while B2B disadvantages involve the limitations of excluding individual consumers . With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. Payment for things ordered online can be made in cash when the goods are delivered physically. People fear to provide personal and financial information, even though several improvements have been made in relation to data encryption. It is riskier, therefore, transacting through internet. Firstly, the pre-purchase/sale stage including advertising and information-seeking; secondly, the purchase/sale stage comprised of steps such as price negotiation, closing of purchase/sales deal and payment; and thirdly, the delivery stage except the stage relating to delivery, all other stages involve flow of information. 1. CBSE, NCERT, JEE Main, NEET-UG, NDA, Exam Papers, Question Bank, NCERT Solutions, Exemplars, Revision Notes, Free Videos, MCQ Tests & more. However, for digital products such an opportunity is tremendous. 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. It is a general fear among the clients/customers to provide personal and financial information, even though several improvements and steps are taken up for its security. The two applications of e-business are as follows: In the process of Outsourcing, the non-core activities of the organisations are handed over to the external parts of the organisations who are specialised in those particular non-core functions. Therefore, you can expand rapidly as the same amount of investible funds result in creation of a large number of businesses. e - Business may be high tech but the lacking interpersonal interaction is truly one of its shortcomings. With the onset of e-commerce, all this has become a reality. Social division. In this respect, the provisions of Information Technology Act 2000 are quite noteworthy. Technical Limitations of EC There is a lack of system security, reliability, standards, and some communication protocols. It is the exchange of product, services or information between businesses firms with the help of internet. One of the most significant disadvantages of using E-commerce is the compromised privacy and security of your data. E-advertising is cost effective and a firm can fund its advertising within its own budget. Once the information is available over the internet, it moves out of the private domain. Outsourcing helps the organisation to focus and work on its core activities giving the organisation enough flexibility to find innovative ideas to make a standpoint in the market. As such, it becomes cumbersome and costly to manage diverse functions and operations efficiently. While e-business is a much wider term and also includes the use of intranet for managing interactions and dealings among various departments and persons within a firm. Ans. Hence, most of the sellers has utilised the e-commerce platform to sell their products and make business. This type of commerce is best suited for dealing in goods for which there is no established market mechanism. The American Institute of Certified Public . (iii)Payment Mechanism:In an online purchase payment is made through. We shall discuss this aspect later in the section devoted to Business Process Outsourcing (BPO). This benefit becomes all the more attractive in the case of information-intensive products such as softwares, movies, music,e-books and journals that can even be delivered online. Hi, Mahak!! E-business is one of the biggest examples of how the business world has evolved in modern times. The next one is a technological limitation that the cost involved with . As such, it becomes difficult to establish the identity of the parties. After realisation, product delivery may be attempted. Activity is not Interconnected to other Jobs: If a fungible, specialized, and measurable position is linked to other key operations within the organization, it cannot be outsourced. Explain any two benefits and limitations of e-business. On-line opens up the whole world as one shop. In a similar vein, closer computer-based interactions among the other departments makes it possible for the firm to reap advantages of efficient inventoryand cash management, greater utilization of plant and machinery, effective handling of customersorders, and effective human resource management. Please verify. (I) Outsourcinginvolves contracting out: Literally, outsourcing means to source from outside what you have hitherto been doing in-house. It is a broad term that encapsulates all business functions and transactions that are conducted electronically, and not merely sales. Customers can also make use of call centers set up by companies to make toll free calls to make queries and lodge complaints round the clock at no extra cost to them. Negotiation is not possible on online platforms. These simple points if kept in mind will definitely help the students to fetch good marks in case study questions, class 11 Business Studies. Madhav took a fire insurance policy of 20 lakh for his factory at an annual payment of 24,000. At times, e-commerce can feel impersonal. There are three phases of doing business in e-business or online. E-Commerce businesses enable business firms to reach out to customers all over the world who have access to the internet. Sanitation and housekeeping functions are non-core for most organizations. Either the seller or the customer may refuse an order being made or placed. There are found to be six main limitations of ecommerce: security and trust; internet experience; enjoyment; language; legal issues; and technology acceptance (ease of use and usefulness). Before the CBSE Class 11 Business Studies examination, when preparation time is limited, one can use these revision notes to revise in a short span of time. E-Commerce has various features, such as -. Tarashas sofa set got spoiled in the rain. Come browse our large digital warehouse of free sample essays. Efforts are on to overcome the digital divide, for example, by resorting to such strategies as setting up of community telecentres in villages and rural areas in India with the involvement of government agencies, NGOs and international institutions. Much, as cyberspace is truly without boundaries. CBSE Class 11 Business Studies Case Study Questions are available on myCBSEguide App. Emerging-Modes-of-Business-Class-11-Notes, Difference between Traditional and e-Business, Emerging-Modes-of-Business-Class-11-Notes-1, Nature And Purpose of Business Class 11 Notes, Class 11 Private, Public and Global Enterprises, End-to-end support for your study abroad journey, Proximity to the source of raw materials and/or the market for the products. Clearly, these activities comprise the core activities. In class 12 CBSE Board, However we will examine only the direct effects of increase in GDP on economic welfare. In the case of information-intensive products and services such as software and music, even delivery can take place online. e-business refers to Carrying on business activities through internet.. The notes are the preferred choice for the majority of the students. Make sure you have studied from the previous year's question papers as well. As part of these questions, the students would be provided with a hypothetical situation or text, based on which analytical questions will have to be answered by them. The two applications of e-business are as follows: 2. Ans. This lack of a personal touch can be a disadvantage for many types of services and products like interior designing or the jewelry business. For example Amazon now guarantees delivery within one day. 3. Before online shopping, one has to register with the online vendor by filling-up a registration form. (a) Financial Services Big companies often need services of specialists for managing finance. Internet transactions occur between cyber personalities. Social Responsibility of Business and Business Ethics. (Business Studies), Business Studies syllabus of class 11 CBSE, Case Study Passage (Business Studies class), Sample case-based Questions in Business Studies, How To Prepare For Case-based Questions? Scope of Business on the Basis of Business: Over computer networks, functions like production, finance, marketing, and personnel administration, as well as management operations such as planning, organising, and controlling, can be performed. The insurance company acquired the burning material and approved his claim. Transaction taking place between business units are known as B2B transaction. High Labour Cost 8. You know that in the digital era, money is defined as electronic pulses atthe speed of light, thanks to the electronic funds transfer technology of e-commerce. Outsourcing allows the company to strive for excellence. 2. It is one of the most trusted education websites that will provide detailed and easy-to-understand business studies chapter 5 class 11 notes. Customers can do their research in a matter of seconds, but face-to-face communication is very difficult to replicate online. Exchange of cash, assets, and information are likewise considered E-commerce. She found a buyer and sold it for Rs 10,000. Here, we are bringing you some of the benefits and limitations of e-commerce that will make you aware of the certain aspects of this new trend of conducting business.BenefitsExpands the reach of . A business must engage with a number of other businesses in order to create utility or deliver value. In fact, administrative reforms are attracting E-Commerce solutions to speed up the process of giving rights, approvals, and licenses. E stands for Electronic therefore it actually means Electronic Business. Outsourcing is the process of contracting a specific business function or operations to specialized agencies. E-business encompasses not just e-commerce, but also production, inventory management, product creation, accounting and finance, and human resource management. It provides all noncase activities.4 It has no pre-determined process to reach a conclusion.5. CBSE Class 11 students referring to these Business Studies Chapter 5 Notes benefitted in multiple ways. The limitations of e-business according to emerging modes of business are: Lack of Trust: The disadvantage of e-business is it lacks direct communication between the seller and the buyer. After realisation, product delivery may be attempted. E-advertising offers the following advantages : (i) Low Cost : As compared to print and TV online banners are inexpensive. This can put you in trouble. Failure is success if you learn from it. For instance, it could be through net banking, credit or debit cards, digital cash, cash on delivery or it could be through the method of writing a cheque. Just as the term business is a broader term than commerce,e-business is a more elaborate termand comprises various business transactions and functions conducted electronically, including the more popular gamut of transactions called e-commerce. e-commerce covers a firms interactions with its customers and suppliers over the internet. E-business is riskier also in the sense that there are additional hazards of impersonation and leakage of confidential information such as credit card details. The case-based questions asked in the CBSE Business Studies question paper for class 11 are of two types: As per the latest circular issued by CBSE on Assessment and Evaluation practices of the board for the session 2022-23, CBSE has clearly mentioned that competency-based questions including case studies will be different from subjective questions. (ii) Generally non-core business activities are outsourced: (iii) Processes may be outsourced to a captive unit or a third party: Some of themajor reasons (and also benefits) of outsourcing are discussed below. Even if you may like to have a stake in the business of your outsourcing partners, you profit from not only the low-cost and better quality services provided by them to you but also by virtue of a share in the profit from the overall business they do. This simple definition leads one to the salient features of the concept that are not peculiar to an industry/business or country, but have become a global phenomenon. As people become more used to interacting electronically there could be erosion (divide) of personal and social skills which might eventually be detrimental to the world we live in where people are more comfortable interacting with a screen than face to face. Adaptability of e-commerce in small cities and village is very low due to non-availability of basic infrastructure. It is largely due to use of intra-B commerce that today it has become possible forthe firms to go in for flexible manufacturing. Division of labour and specialization improve quality while also lowering costs. Approximately 30% of the question paper will comprise case study questions that demand high-order thinking and reasoning skills from the students. Use of computer networks makes it possible for the marketing department to interact constantly with the production department and get the customized products made as per the requirements of the individual customer. Students are supposed to prepare themselves thoroughly from the NCERT textbook. Now, e-commerce is the interaction that takes place between business firms and their customers and also suppliers over the internet. Lack of Security: There is a lack of system security, reliability, standards, and some communication protocols. (c) There is a need for technology capability and competance of parties and e-Business. Accounting can be defined as a process of reporting, recording, interpreting and summarising economic data. Cultural Obstacles 7. There are many reasons to support this argument. Many students who opt for the commerce stream after their 10-grade exams desire to learn in-depth about the business organizations and their work, for them the subject is of utmost importance. In many cases, customers want to experience the product before purchase. Otherwise, anyone can login using your name and shop in your name. Defence Colony, New Delhi, Around 80% of e- commerce transactions are of this type. This may be regarded as , Seller does not get the payment for the goods supplied whereas the customer claims that the payment was made. Lack of Privacy 3. Students are advised to check with the suggested tips which will help them in securing good marks in their business studies CBSE Class 11 exam. First you need to pay to a bank an amount equivalent to the digital cash that you want to get issued in your favor. Insurance is highlighted in the given statement. Delhi 110024, A-68, Sector 64, Noida, Class 11 Chapter-wise, detailed solutions to the questions of theNCERT textbooksare provided with the objective of helping students compare their answers with the sample answers. As the prices turn southwards due to competitive pressures, the only way to survival and profitability is cost reduction. Outsourcing aims to reduce expenses by maximising the use of low-cost labour. virus risk. CBSE Class 11 Business Studies Notes Maths Notes Accountancy Notes Sociology Notes. The conduct of trade, commerce and industry via the computer network using the internet is called e-business or electronic business. High due to fixed charges associated with investments in procurement, storage, production, distribution, sales, etc. Why does E-business, referred to as the emerging mode of business explain its scope and benefits to business? Their answer is visible in the given passage itself. Back home, the company cannot do so due to stringent laws forbidding use of child labour. A number of processes such as recruitment, selection, training, record and payroll (Human Resources), management of accounts receivable and accounts payable (accounting and finance), customer support/grievance handling /troubleshooting (marketing) are common to all its subsidiaries operating in different countries. This may be referred to as , The intended delivery does not take place, goods are delivered at wrong address, or goods other than ordered may be delivered. The aforementioned concerns, however, do not seem to matter much as the global outsourcing continues to flourish. (a) Creation of utility. The scope of BPO is broad and can range from financial services to customer support, advertising, courier, software solutions, etc. To Whom It May Concern:The U.S. Chamber of Commerce (Chamber) is responding to the Employee Benefit Security Administration's (EBSA) Proposed Amendment to the Prohibited Transaction Exemption (PTE) 84-14 (Proposed Amendment). Diadvantages of e-commerce : (a) It lacks personal touch. The questions can also be categorized on their difficulty level: Students need to prepare well for the case-based questions before appearing for their class 11 Business Studies exam. e.g., estimating the finance required, how and when to issue shares, debentures. This can be thought of as "default on delivery.". Needs explicit knowledge that is formal and codifiable, Activity is not interconnected to other jobs. One should concentrate on solidifying key fundamental principles/theories. Uttar Pradesh 201301, Devonshire House, 60 Goswell Road, There are three phases of doing business in e-business or on-line. are outsourced to a company that holds more expertise and resources. Outsourcing depends on sharing a lot of vital information and knowledge. One can presample books, journals etc. The vendor doesn't get payment for the things provided, despite the fact that the customer states that payment was created. Outsourcing Concept BOP refers to getting a business task accomplished through an outside agency. Such a way of delimiting the scope of businessenables them to focus their attention and resources on select activities for better efficiency and effectiveness. 2. You may then use the digital funds to make purchases over the web. The private outsources offer speedy movement of parcels and samples so business firm relay on them. It refers to a long-term contracting out generally the non-core and of late even some of the core activities to captive or third party specialists with aview to benefitting from their experience, expertise, efficiency and, even investment. Case studies promote and strengthen practical learning. Moreover, it is observed that whether in the manufacturing sector or the IT-sector, what is outsourced is the kind of components or work that does not much build the competency and capability of the outsourcing partner beyond the skills needed to comply with a rigidly prescribed procedure/method. If the term business is taken to mean a wide range of activities comprising industry, trade and commerce; e-business may be defined as the conduct of industry, trade and commerce using the computer networks. Freshwater, Sydney, NSW 2096, Most of the questions are based on the exercises from the NCERT textbook. Understanding the concept of outsourcing is important as an emerging model of business, and therefore, it is a vital topic of business studies. Though, many a times, the termse-business and e-commerce are used interchangeably, yet more precise definitions would distinguish between the two. If you are interested in study abroad, call us on 1800 57 2000 and get a chance to talk to our mentors! There are many advantages and disadvantages of e-commerce. Traditional businesses have contact with the salesperson in the traditional way, and there is a sense of humanity and trustworthiness as a result of this. Less, because a lot of legal formalities have to be done. For more information, students can download the CBSE. Her friend suggested that she should change the fabric so that it looks new and put it for sale on Olx. Outsourcing, more so offshore out-sourcing, stimulates entrepreneurship, employment and exports in the host countries (i.e., the countries from where outsourcing is done). Net-banking Transfer: Modern banks provide to their customers the facility of electronic transfer of funds over the Internet using Immediate Payment Service (IMPS), NEFT and RTGS. Reading Time: 11 minutes Ecommerce is a booming industry. E-business can be easily established and formed anywhere and doesnt need an industry setup. Outsourcing necessitates the exchange of a great deal of critical information and knowledge. There are no geographical barriers. Hence, it is vital to be familiar with this chapter to ace scholastic exams as well as to develop a sound understanding of the latest modes to carry out a business plan. When a business operation or specific business activity is given to an agency as a contract, it's known as "outsourcing". This happens due to the economies of large scale accruing to the outsourcing partners as they deliver the same service to a number of organizations. answered Dec 22, 2020 by Padma01 (52.9k points) selected . There are a total of 10 chapters in this book divided into 2 parts. Syllabus of 11th Class of Business Studies 2014 . Preparing for IIT JEE or AIPMT or CA CPT, Copyright Pivotal | 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. All rights reserved. More, as IT sector is among the topmost priorities of the government. E Commerce ICSE Class 10 Notes. Resources Required for Successful e-Business Implementation, Outsourcing or Business Process Outsourcing (BPO). In order to revise the students are either required to make their own notes or purchase any revision material, but here we provide ready-to-revise revision notes too for free! The other way of looking at the scope of e-business is to examine it in terms of people or parties involved in electronic transactions. It refers to the long-term outsourcing of non-essential and, more recently, key functions to captive or third-party specialists in order to take advantage of their expertise, efficiency, and, in certain situations, investment. Cost reduction is also aided by differences in the prices of various production inputs across countries. Here are some tips which will help the student to solve the case-based questions at ease: In order to excel in the Business Studies class 11 exam, one needs to ignore the shortcut techniques and get to read the NCERT textbook rigorously. The delivery of the products takes time in e-business. From e-commerce to digitally-conducted product development, production, inventory management, finance, human resource management, and accounting all come under the purview of e-business. In order to reduce the annual premium, he did not disclose that highly explosive chemicals are being manufactured in his factory. Data stored in the systems and en-route is exposed to a number of risks. 1. Delivery Guarantee Risks of Threats to Intellectual Property and Privacy Include: Once the material is available on the internet, it is no longer considered private. Question Bank Solutions 10391. High due to fixed charges associated with investment in procurement and storage, production, marketing and distribution facilities. Global Market. In Chapter 5 Emerging Modes of Business notes, it is stated that e-business refers to the use of a computer network for managing the industry, trade, and commerce. Thismight be cited as 'default on payment'. Shopping cart is an online record of what you have picked up while browsing the online store. In this article, you will learn the advantages and disadvantages of E-commerce so you can make an educated decision about your company's future. Next, is the step of placing an order where the consumer would need to pick and drop the items in the shopping cart, and then the consumer can check out if they are sure of what they want to buy. After five days the buyer found the real state of the sofa set and called Tarasha but she did not answer any of the calls. You can also download them from our student dashboard. Tarasha followed her friends advice and got her sofa repaired so that it looked better and uploaded nicely clicked pictures on the website without disclosing the fact that it was damaged from the inside. No Guarantee about Product Quality: Customers cannot get ensured regarding the quality . Sarthak Electronics Ltd. has a loss of Rs 15,00,000 to pay. Difference Between E-Business and Traditional Business. E-commerce signifies the utilization of electronic means and technologies to handle commerce-related activities like transfer or exchange of goods, sales, purchase, information, and services while . 5/6 . Class 11 Computerised Accounting System Using e-commerce, we can generate orders and products from any time, anywhere, without any human intervention. The network you are most familiar with as a student or consumer is the internet. (a) Concentration on core competence(b) Reduction in cost(c) Help to avoid labour problem(d) Benefits of latest development, (a) Confidentiality(b) Sweat shopping(c) Protest in home country(d) Ethical concerns. Customer Support Services:All durable items need an after-sales or customer support service to register and respond to consumer concerns.
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