Delhi 110024, A-68, Sector 64, Noida, Data provided during online transactions may be shared with others, who may begin flooding ones inbox with advertising and promotional materials. Statistics studies numerical facts only, it is not suited for qualitative study such as honesty, friendship etc. 0. High-tech it may be, e-business, however, lacks warmth of interpersonal interactions. As the prices turn southwards due to competitive pressures, the only way to survival and profitability is cost reduction. Among all the other core subjects of the Commerce stream i.e accountancy, economics and business studies, Business Studies is the one that is purely theoretical. Cycle time, i.e., the time taken to complete a cycle from the origin of demand to its fulfillment,is substantially reduced due to transformation of the business processes from being sequential to becoming parallel or simultaneous. Security: the security risk in ecommerce can be client / server risk data transfer and transaction risk virus risk 2. Firms need to define or redefine themselves. Class 11 Business Studies syllabus is not very vast but has to be focussed upon as it forms the base for your 12th grade Business Studies syllabus. Download and refer to the Business Studies Class 11 Chapter 5 Notes PDF for free from Vedantu. (ii) Data storage and transmission risks: (iii) Risks of threat to intellectual property and privacy: Resources Required for Successfule-business Implementation. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This is very good answer of mine question Thnku soooooooooo..much buddy for this . On the one hand, it allows the seller an access to the global market; on the other hand, it affords to the buyer a freedom to choose products from almost any part of the world. Hence, most of the sellers has utilised the e-commerce platform to sell their products and make business. Yes, e-business is truly a business as enabled and enhanced by electronics and offers the advantage of accessing anything, anywhere, anytime. Read the hypothetical text given and answer the following questions: Manish, Rahul and Madhav live in the same locality. The limitations of e-business according to emerging modes of business are: The resources that are required and are essential for the successful implementation of e-business are listed down below: Receiving information about items, placing an order, receiving delivery, and making payment through the internet are all examples of online transactions. It can harm the interest of the party that outsources its processes and even has a risk of competitor firms getting information about that company. 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. Leverage Edu Tower, So, let us go through this blog containing simplified notes on the topic. The sole purpose of increasing the weightage of case-based questions in the class 11 curriculum by CBSE was to drift from rote learning to competency and situation-based learning. In order to ace the subject the student needs to have conceptual clarity. 1. Prev Question. The purpose of a school, for example, is to develop a child by means of curricular and co-curricular activities. 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. You are then at the receiving end, with little respite from receiving junk mails. It is cost-effective and enhances the performance of the business. 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 . This may cause resentment back in the home country if the home country is suffering from the problem of unemployment. Risks of Threats to Intellectual Property and Privacy Include: Once the material is available on the internet, it is no longer considered private. The consumer is unable to touch and feel the product in real-time. Security has been a concern since its inception and is considered a major disadvantage of e-commerce. Security of e-transactions and online transactions. The term "digital divide" refers to the separation of society based on one's familiarity or lack thereof with digital technologies. People fear to provide personal and financial information, even though several improvements have been made in relation to data encryption. A thorough study of the chapter will enlighten the budding entrepreneurs with a core understanding of how the world of business has seen exponential advancements and reshaping over the century. Activities that are Interchangeable or Fungible: Activities that are not distinguishable can be outsourced, whereas unique activities cannot. Which principle of Insurance is highlighted in the given statement. High start up cost:-. Setting up of any business requires money, men and machines (hardware). Case study questions could be based on any chapter or concept present in the NCERT textbook. Limitations of e - Business 1. 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. Are you preparing for Exams? A major disadvantage of e-commerce is putting a stop to buying capabilities because of a site crash. Which principle of Insurance is violated by Madhav? On average, 4 out of 5 top 500 companies in the world outsource their operations to India. Other disadvantages of e-business are as follows: No Personal Touch - The immediacy of online communication has a huge drawback for the small business owner. Save my name, email, and website in this browser for the next time I comment. The supposed delivery doesn't take place, or is delivered at the incorrect address, or product apart from ordered is delivered. 2. Most of the questions are based on the exercises from the NCERT textbook. Only those who possess a secret key can decipher (or decrypt) the message into plaintext. This may be referred to as . 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. 7. This refers to transactions between the parties or persons who are the part of one firm only. However, these days, e-businesses are trying to resolve such issues by promising very limited time. Before appearing in the main examination, candidates must try mock test as it helps the students learn from their mistakes. In view of the above discussion, it is clear that e-business is here to stay and is poised to reshape the businesses, governance and the economies. In the course of contracting out manufacturing, marketing, Research and Development orIT-based services, what is ultimately contracted out is employment or jobs. This MERICS Primer takes a closer look into the longer-term policy goals set by the Chinese Communist Party (CCP) and the efforts to realize them. 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. Here, the business originates from the consumer and the ultimate destination is also consumers, thus the name C2C commerce. It is only a part of e-business that includes other electronically conducted business functions like inventory management, production, product development, finance, accounting, and human resource management. As India emerges as a global outsourcing hub, the industry is forecast to explode at exponential rates from 23,000 people and $ 10 million per annum in 1998 to over a million people and revenues in excess of $ 20 billion by 2008. What are the opportunities & benefits offered by e-business to the customers. Presently, we have 60 per cent of the $150 billion (1 billion = Rs. It refers to the art of protecting information by transforming it (encrypting it) into an unreadable format called cyphertext. With the onset of e-commerce, all this has become a reality. More, as IT sector is among the topmost priorities of the government. Though, many a times, the termse-business and e-commerce are used interchangeably, yet more precise definitions would distinguish between the two. In order to reduce the annual premium, he did not disclose that highly explosive chemicals are being manufactured in his factory. This can result in distrust and apprehensionsEmerging Modes of Business Class 11 Noteleverageedu. A shopping cart is an online record of what an individual has added to his cart while visiting an online store. Uttar Pradesh 201301, Devonshire House, 60 Goswell Road, Communication technology is continually evolving to increase the speed and quality of communication through internet. Think of a large multinational corporation that deals in diverse products and markets them to a large number of countries. Online business takes extra time to deliver the products to the consumers. About Us | Lack of Privacy 3. 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. Hurry up! Required fields are marked *. 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. Huge Technological Cost 11. In order to cut the cost, the companies outsource the work to some other country where the work is done in an unethical way. Outsourcing, more so offshore out-sourcing, stimulates entrepreneurship, employment and exports in the host countries (i.e., the countries from where outsourcing is done). A "password" must be entered among the numerous details since the areas relating to an individuals "account" and "shopping basket" are password protected. data transfer and transaction risk. Similarly, is it ethical to outsource the work to countries where there exists wage-discrimination on the basis of sex of the worker? So it lacks the warmth of an interpersonal relationship which is important for many brands and products. Case Study Questions in class 11 (Business Studies), What is a case study question? Global competitiveness necessitates not only global quality, but also global competitive pricing. 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. E-commerce refers to a company's online interactions with its customers and suppliers. Privacy Policy, Social Responsibilities of Business and Business Ethics. Outsourcing allows the company to strive for excellence. Textbook Solutions 11462. 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. There are three stages of online transactions which are mentioned inclass 11 BST ch 5 notes. Data in the systems and on the way is vulnerable to a variety of threats. Difference Between E-Business and Traditional Business. The best part of having these questions is that the asked question itself projects a hint of its answer. Use of the internet has considerably reduced dependence on paperwork. Then, there also are problems of virus, and hacking, that you must have heard of. You are aware, that, in order to create utilities or value, a business engages in a number of processes, viz., purchase and production, marketing and sales, R&D, accounting and finance, HR and administration etc. This type of commerce is best suited for dealing in goods for which there is no established market mechanism. Creates social differences as technical knowledge is a must for using e-commerce. To get fastest exam alerts and government job alerts in India, join our Telegram channel. The sole purpose of increasing the weightage of case-based questions in the class 11 curriculum by CBSE was to drift from rote learning to competency and situation-based learning. How much amount is the insurance company liable to pay to Madhav if he files a case against it? 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. This chapter covers topics like BPO, e-business, e-commerce, etc. 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). Obviously, website is not a physical location. There are many advantages and disadvantages of e-commerce. 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. In fact, administrative reforms are attracting E-Commerce solutions to speed up the process of giving rights, approvals, and licenses. Important data may be stolen or altered for nefarious purposes or merely for fun/adventure. Unlike traditional business, you cannot touch and feel the product. Will the company receive a claim if the surveyor from the insurance company comes to know the real cause of fire? (iii)Payment Mechanism:In an online purchase payment is made through. What trends are radically reshaping business by contracting mainly non-core activities to third parties to discuss its need in today's world? The vendor doesn't get payment for the things provided, despite the fact that the customer states that payment was created. house or work area. Approximately 30% of the question paper will comprise case study questions that demand high-order thinking and reasoning skills from the students. 1. Cash-on-Delivery: Payment for things ordered online can be made in cash when the goods are delivered physically. E-advertising offers the following advantages : (i) Low Cost : As compared to print and TV online banners are inexpensive. Payment for things ordered online can be made in cash when the goods are delivered physically. For the sake of the candidates we are providing Class 11 Mock Test / Practice links below. Purchase- production/operation- marketing-sales. The insurance company refused to make payment for the claim as it became aware of the highly explosive chemicals. 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. Consumers have to provide their personal data such as an address, name, phone number, credit card details, etc. With the revision material, students can revise in a capsulated manner and thus revision can be done smartly. Low as no requirement of physical facilities. One of the advantages of e-commerce is that it is easy to scale the business. The following are the disadvantages of E-Commerce for a consumer. It may be pointed out that most of the limitations of e-business discussed above are in the process of being overcome. Here, both the parties involved in e-commerce transactions are business firms, and, hence the name B2B, i.e., business-to-business. 5/6 . Only those with a secret key may decipher (or decrypt) the message into 'plaintext.'. With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. Operationally, one may visualize three stages involved in online transactions. 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. High, because various costs has to be incurred in terms of rent payment etc. Also, the human touch is missing as well. In the age of globalizing economics . 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. It lacks personal attraction / interaction. The consumer is unable to touch and feel the product in real-time. By now, you might have formed the opinion that B2C is a one-way traffic, i.e., from business-to-customers. In this mode of banking, the transaction is done through online platforms. And, marketing begins well before a product is offered for sale and continues even after the product has been sold. 1. When you register with an online retailer, you create an 'account, by filling up the registration form. (I) Transaction risks:Online transactions are vulnerable to the following types of transaction risks: Thus, in e-business risk may arise for the seller or the buyer on account of default on order taking/giving, delivery as well as payment. Credit Card security is a serious issue. One, due to their narrow focus, individuals excel in the activities that they can do best. Shopping cart is an online record of what you have picked up while browsing the online store. Registration refers to having an account with the online vendor. Initially, the newly introduced case-based questions appeared to be confusing for both the students and the teachers. Revise from our ready-to-revise revision notes. Insurance is highlighted in the given statement. Thismight be cited as 'default on order taking/giving. Make sure you have studied from the previous year's question papers as well. Requiring Explicit Knowledge which is Formal and Codifiable: Although an IT programmer's job can be outsourced to a third party, a CEO's position requires management, technical, and human relations skills. Historically, the term e-commerce originally meant facilitation of B2B transactions using Electronic Data Interchange (EDI) technology to send and receive commercial documents like purchase orders or invoices. The questions would be based on the NCERT textbook for class 11 Business Studies. Please verify. It got more difficult to protect it from being copied after that. 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. Once the information is available over the internet, it moves out of the private domain. To this extent, it is relatively less suitable mode of business in respect of product categories requiring high personal touch such as garments, toiletries, etc. Uttar Pradesh 201301, Devonshire House, 60 Goswell Road, Disadvantages: E-Commerce is often used to buy goods that are not available locally but from businesses all over the world. Here are some benefits of e-business-. For more information, students can download the CBSE. In the case of information-intensive products and services such as software and music, even delivery can take place online. Outsourcing, particularly offshore outsourcing, encourages entrepreneurship, job creation, and exports in the host countries (i.e., the countries from where outsourcing is done). Low due to arms length transaction and face to face contact. If outsourcing involves complete processes/products, there is a further risk of the outsourcing partner starting up a competitive business. One can presample books, journals etc. Ans. Sarthak Electronics Ltd. has a loss of Rs 15,00,000 to pay. To overcome the challenges of the scale of business and leverage the potential of specialization, many companies choose Business Process Outsourcing (BPO). Definition of Accounting. Outsourcing has been defined as a long term contract of both core and non-core activities. So firms prefer to outsource these services to outside agencies which are specialised in these tasks. The introduction of accounting helps the decision-makers of a company to make effective choices, by providing information on the financial status of the business. Other activities may be regarded as secondary or incidental to fulfilling that basic purpose. If not, we will be dealing with security and safety concerns of online business. (e) People resist e-commerce as it involves adjustment to new technology and new way of doing things. The purchase or the sale stage- This stage involves price negotiation, the closing of purchase or sales deal, and payment. The delivery of the products takes time in e-business. 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. Both online and in-person business models come with their own challenges, but with the right information, and a developed action plan, a successful e-commerce operation is in your future. Electronic business includes planning, organising, marketing, and production functions. 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. The moment any transaction is made, the amount due as payment is deducted electronically from the card. (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. More, because of higher personal contact. The requirement of technology capability and competence of parties to e-business. (a) Financial Services Big companies often need services of specialists for managing finance. Payment for purchases made through online shopping may be made in the following ways: Another important topic in class 11 emerging modes of business is e-commerce or electronic commerce that refers to the process of trading over the internet and encompasses diverse concepts like online shopping, digital banking, online ticket booking, social networking, etc. These businesses may be suppliers or vendors of various inputs, or they may be part of the distribution channel through which a company distributes its items to clients. 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. The amount owed by the cardholder to the online seller is assumed by the card issuing bank, which then transfers the transaction's amount to the seller's credit. Types, Benefits, Limitations of E-commerce. Outsourcing aims to reduce expenses by maximising the use of low-cost labour. Syllabus of 11th Class of Business Studies 2014 . Such flexibility is available even to the organizational personnel whereby they can do work from wherever they are, and whenever they may want to do it. E-Commerce businesses enable business firms to reach out to customers all over the world who have access to the internet. However, there are certain concerns over outsourcing that involves confidentiality, sweat shopping, ethical concern, or resentment in the home countries. If you are interested in study abroad, call us on 1800 57 2000 and get a expert guidance. (c) Courier Services Courier services refers to postal services provided by the private firms for carrying mails, parcels etc. What is E-commerce? The delivery stage- This is the final stage of online transaction that involves the delivery of the product. They also succeed by increasing their capabilities by outsourcing out the remaining tasks to people who excel at them. e.g., estimating the finance required, how and when to issue shares, debentures. Disclaimer | The information is exchanged in the traditional business mode too, but at severe time and cost constraints. Likewise, business firms are realizing the usefulness of focusing on just a few areas where they have distinct capability or core competence, and contracting out the rest of the activities to their outsourcing partners. Hi, Mahak!! Business process cycle is therefore shorter. Enhance the qualitative and quantitative analysis skills of students, Provides an in-depth understanding of the key Business theories/concepts, Inculcate intellectual capabilities in students, Help students retain knowledge for a longer period of time, The questions would help to discard the concept of rote learning. 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