Q. 1. There is a system of selling where consumers directly interact with the other consumers through electronic mode. Identify and explain this system. How in your opinion is this system beneficial to consumers? State any one limitation of such system. (KVS Guwahati, 2016)
Ans. This system is called C2C commerce. It provides a market for those consumers who want to deal in goods for which there is no established market. This is a system of selling where consumers directly interact with other consumers through electronic mode. This system is beneficial to those consumers who are looking for niche product from very trustworthy source like rented furniture. One limitation of this system is increased risk due to anonymity and non-traceability of parties.
Q. 2. State the benefits of e-business. (NCT 2009)
Explain the meaning of e-business. State its four benefits for the modern business.
Ans. e-business, also known as electronic business, is the conduct of business on the internet. Its scope is not only confined with buying and selling of products but also servicing customers and collaborating with business partners.
Benefits of e-business:
(i) Ease of formation and lower investment requirements: Unlike a host of procedural requirements for setting up an industry, e-business is relatively easy to start. The benefits of internet technology accrue to big or small business alike. In fact, internet is responsible for the popularity of the phrase ‘networked individuals and firms are more efficient than networked individuals’.
(ii) Convenience: Internet offers the convenience of 24 hours, 7 days a week, 365 days a year business that allows shopping well after midnight.
(iii) Speed: Internet has high speed. This benefit becomes all the more attractive in the case of information regarding intensive products.
(iv) Movement towards a paperless society: Dependence on paper work has been considerably reduced through internet. Many companies and even the government departments and regulatory authorities are going in this direction.
(v) Global reach/access: Internet has global reach throughout the world.
Q. 3. Write a note on e-business. What are the applications of e-business ?
Ans. e-business may be defined as conducting of activities of industry, trade and commerce through the computer network. The most common network used is internet. Applications of e-business are as follows:
(i) e-bidding/e-auction: Many shopping sites such as airline tickets, etc. have ‘Quote your price’, wherein one can bid for the goods and services online. It also provides the facility for e-tendering under which quotation can be submitted online.
(ii) e-trading: It involves trading of securities like shares and other financial instruments. The securities are bought and sold online.
(iii) e-procurement: It involves sales transactions between business firms through internet. It includes ‘reverse auctions’ and ‘digital market places’. Reverse auction facilitates online trade between a single business purchaser and many sellers. Digital market places facilitate online trading among multiple buyers and sellers.
(iv) e-delivery: It involves electronic delivery of photographs, videos, journals and other multimedia contents to the user’s computer. It also involves rendering various consulting services like legal, medical, accounting, etc. electronically.
(v) e-communication/e-promotion: It involves advertisement through banners, pop-ups, customer surveys, opinion polls, publication of online catalogues, displaying images of goods, etc.
Q. 4. Explain any three reasons why outsourcing is needed. (NCT 2010)
Why are business firms increasingly using outsourcing of services.
Ans. (i) Focused approach: Every business has limited resources and every manager has limited time. Outsourcing can help business to shift its focus from peripheral activities towards work that serves the customers and helps managers to set their priorities more clearly.
(ii) Make faster deliveries to customers: Outsourcing helps businesses to make quicker deliveries to customers. An outsourcing partner will be able to provide faster deliverables and in turn will be able to make quick deliveries to his customers. It also helps to save time.
(iii) Operational efficiency: Outsourcing gives an organisation exposure to vendor specialized systems. Specialisation provides more efficiency that allows for a quicker turnaround time and higher levels of quality.
(iv) Benefits of latest development: With the help of outsourcing the benefits of latest development could be derived by the concern in the most economical manner.
(v) Improved customer satisfaction: With timely delivery and high quality services one can impress his customers. Outsourcing leads to increased customer satisfaction and they will remain loyal to the organisation.
Q. 5. Discuss various limitations of Business Process Outsourcing ?
Ans. (i) Less secrecy: When an organisation outsources human resources, payout and recruitment services, it involves a risk of exposing confidential company information to a third party.
(ii) Quality service: Unless a contract specifically identifies the measurable process of quality service reporting, there could be a poor service quality experience. Some contracts are written intentionally to leave service levels out to save on costs.
(iii) Lack of customer focus: An outsourced vendor may be catering to the expertise needs of multiple organisations at a time. In such situations, vendors may lack complete focus on your organisational tasks.
(iv) Hidden cost: Although outsourcing most of the times is economical in nature, at times hidden costs are involved in signing a contract. Signing a contract across international boundaries may pose a serious threat.
(v) Public opinion: There can be negative perceptions regarding outsourcing and sympathy for lost jobs. This needs to be managed with sensitivity and grace.