Telangana TSBIE TS Inter 1st Year Commerce Study Material 12th Lesson Emerging Trends in Business Textbook Questions and Answers.
TS Inter 1st Year Commerce Study Material Chapter 12 Emerging Trends in Business
Long Answer Questions
Question 1.
Define e-business and explain the nature and scope of e-business.
Answer:
E-business means “Electronic business”. The term “E-business”, was first used by IBM in 1997, it defined E-business as, “The transformation of key business processes through the use of internet technologies”.
“e-business” is defined as the application of information and communication technologies (ICT) that support all the activities and realms of business. E-business focuses on the use of ICT to enable the external activities and relationships of the business with customers. The term “E-business” refers to the integration of business tools, based on ICT to improve the function of the company.
Scope of E-Business:
The scope of E-commerce is to transact online. Transaction online can be either on products or services.
E-business can be divided into the following areas. They are:
a) Within the organization
b) Business – to – Business (B2B) dealings
c) Business – to – Customer (B2C) transactions
d) Customer – to – Customer (C2C)
e) Customer – to – Business (C2B) and
f) Business – to – Government (B2G).
a) E-business within the organization.
b) B2B refers to exchange of products and services by one business enterprise to another business enterprise.
Ex: India mart, Trade India, Ali baba etc.
c) B2C business refers to an exchange of products and services from a business to a customer.
Ex: Amazon.com, Netflix.com, Sulekha.com etc.
d) C2C here customers offer their products online to be bought by other customers.
Ex: OLX, Quicker etc.
e) C2B is a business model in which consumers (individuals) offer products and services to companies and the companies pay them.
Ex: Online Advertising sites like Google Ad sense, affiliation platforms like commission junction and affiliation programs like Amazon.
f) B2G refers to Business-to-Government, e – commerce is generally defined as commerce between companies and the Government or public sector enterprises. It refers to the use of the Internet for public procurement, Licensing procedures, and other government-related operations.
Ex: Business pay taxes, file reports, or sell goods and services to Government.
Scope of E-Business:
The scope of e-business in discussed in terms of the following broad elements, viz:
1) e-commerce: Transacting or facilitating business through internet is called e-commerce. E-commerce is short form of “Electronic Commerce”, i.e, selling and buying products or services online. Any form of business transaction conducted electronically by. using internet is called e-commerce.
2) e-auctioning: In e-auctioning individuals who want to participate in the auction visit the website with a click and go through the details of goods offered or kept in auction in concerned web pages and participate in auction without sacrificing their personal time.
3) e-banking: Electronic banking is one of the most successful online business. E-banking allows customers to access their accounts and execute orders through use of website. Online banking allows the customers to get their money from an Automated Teller Machine (ATM). Then they can view their accounts, transfer funds, deposit amount and can pay bills.
4) m-banking: Another emerging trend in e-banking operations m-banking known as mobile banking. Customer can perform all most all e-commerce operations by using their Mobile phones. All most all e-commerce portals developed their apps to enable the customers to buy their products / services by using these apps.
5) e-marketing: Electronic marketing provides a Worldwide platform for buying and selling of goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time.
6) e-trading: E-trading is also known as “online trading” or “e-broking”. It is used for buying and selling stocks in stock exchanges.
Ex: Money conrol.com
Question 2.
Explain the benefits of e-business.
Answer:
E-business has many advantages which can be broadly classified into the following categories.
A. Benefits to consumer:
1) Convenient shopping: e-business enables customers to shop or do any transactions 24 hrs a day, round the year from almost any location as per their convenience.
2) Wider choices: e-business enables the customers to have more choices or more alternative products and services online.
3) Price Advantage: e-business provides customers with less expensive products and services by allowing them to shop in many places and conduct quick comparisions. E-business facilities competition which results in substantial price advantages.
4) Exchange of information: E-business allows the customers to interact with other customers and exchange business ideas, opinions and experiences about the products / services which are available at different online portals.
B) Benefits to Business Organization:
1) Reach beyond boundaries: E-business enables the organizations to extend the organizations to extend their market place to national and international markets and there by increase their sales / revenues with limited time span.
2) Cost Savings: Reduces the cost of creating, processing, distributing,, storing and retrieving information. Further, it allows reduced inventories and overheads cost.
3) Competitive Advantage: E-business enables the customer to compare the chosen products / services with all available competitor products / services. This helps in reduced processing time allows for customization of products and services for achieving competitive advantages.
4) Shortens Recovery of capital Invested: E-business reduces the time between the outlay of capital and the receipt of products and services.
C) Benefits to Society:
1) Environmental Benefits: Since customers can buy their required products/services online with a click of button either from their place of work or home, without moving to the shops physically. This results in reduced traffic congestion, air and sound pollution.
2) Public Welfare: E-business allows some merchandise to be sold at lower prices benefiting the poor people.
3) Availability Products: Due to e-business, abundant. Varieties of products / services are available to the customers according to their choices and preferences. Similarly, customers can have access to their desired products / services which are available at any comer of the world.
Question 3.
Explain the opportunities of business enterprises in 21st century.
Answer:
The following are the opportunities of business enterprises in 21st century.
1) LPG: The economic reforms initiated in the form of liberalization, privatization and Globalization (LPG) have brought structural changes which ultimately created favourable environment for business enterprises in India.
2) Increasing size and diversification: The 21 century business enterprises are large sized and highly diversified organizations. Due to large size and increased output, companies are able to reduce their costs and their by increase in profits.
3) Increasing per capital Income: India has emerged as the third largest economy globally with a high growth rate with its improved per capita Income. As India’s per capital income is increasing, the business opportunities are also increasing in India.
4) Market Economies: The India economy being one of the largest economics in the world with a population of more than 1.2 billion is flourishing and attracting industrial, trade and service sectors all around the world.
5) E-commerce – A gate way to global markets: Business enterprises across the globe are discovering the benefits of electronic commerce. Improved cash flow, customer retention, and service satisfaction are few of the benefits gained from e-commerce.
6) Technological advance merits: 21st century business enterprises are able to use ultramodern technology with the advancement of technology organizations are able to offer services, which are relevant, cost effective and compatible with society’s needs.
7) Expansion of financial services: In 21st century the financial services like Banking, insurance, debt and equity financing, micro finance sectors helping the people to save money and to get liberal credit for their future needs. It resulted in widering of business expansion opportunities.
8) Growing mergers, acquisitions and foreign collaborations: Mergers and acquisitions is a strategy of modem business enterprises for improving innovation / profitability, market share and stock prices.
9) Scope for International business: In 21st century, many organizations are globalizing business in terms of manufacturing, service delivery, capital sourcing or talent acquisition as a defensive strategy. These are discovering a new business opportunities in more than one country.
10) Government support and encouragement: Governments both at state and central level are encouraging new innovative business opportunities by introducing new pro-grams like startup, stand up and make in India.
Question 4.
Explain the challenges of business enterprises in 21st century.
Answer:
The following are the challenges of business enterprises in 21st century.
1) Threat for technology: Rapid change in technology has been a great threat for the business enterprises in terms of cost and time. Business organizations have to adopt themselves in tune with the changing technology and modernize their plant and equipment and processes, unless and otherwise they will become outdated in the market place.
2) Growing consumer awareness: Consumers are awareness about the products and services. Business need to respond the consumer demand to gain customers, otherwise, they lose their market share.
3) Challenges of Globalization: As MNCs are dominating the world markets, it is the question of survival to the local business. This gives rise to increased global competition and increased prices of goods and services.
4) Depleting Natural Resources: Most of the manufacturing enterprises depend upon certain natural resources. Such as minerals, metals, forests, fish etc. which are depleted and they are in danger of vanishing from the planet. This will have a direct impact on the growth of future business enterprises.
5) Economic Recession: International economic and political order has been changing throughout the globe. Economic recession took place in united states and europe is slowly spreading over to other countries also.
6) Environmental challenges: Environmental considerations are one of the biggest challenges of business organisations facing Economic, social, political, legal, technological environments have been changing rapidly. It affecting business enterprises in 21st century.
7) Corruption and Bureaucratic Hurdles: Corruption is a very big hurdle for doing business particularly in India. Corruption is a barrier to the effective development of any sector and poses business risks.
8) Foreign exchange Risk: Foreign exchange risk is another factor causing instability in the running of organizations. Exchange rates, amount of exports and imports and political factors are also affect the Business.
9) Security Issues: Security threats to business can happen in various forms like information security, internet security, physical security, wireless Access to the company network, risk management, insider threat, privary laws etc.
10) Human Resource challenges: One of the biggest challenges of 21st century business is Human Resource – finding the right staff, training and retaining them are concerns of the HR function.
In 21st century, managers must understand the cultures around the world and operate at global level.
Short Answer Questions
Question 1.
Explain the scope of e – business.
Answer:
The scope of e-business is discussed in terms of the following broad elements, viz:
1) e-commerce: Transacting or facilitating business through internet is called e-commerce. e-commerce is short form of “Electronic Commerce”, i.e., selling and buying products and/or services online. Any form of business transaction conducted electronically by using internet is called e-commerce.
2) e-auctioning: In e-auctioning individuals who want to participate in the auction visit the website with a click and go through the details of goods offered or kept in auction in concerned web pages and participate in auction without sacrifing their personal life.
3) e-banking: Electronic banking is one of the most successful online businesses e-banking allows customers to access their accounts and execute orders through use of website. Online banking allows the customers to get their money from an Automated Teller Machine (ATM). They can view their accounts, transfer funds, deposit amount and can pay bills.
4) m-banking: Another emerging trend in e-banking operations is m-banking known as mobile banking. Customer can perform all most all e-commerce operations by using their mobile phones. All most all e-commerce portals developed their apps to enable the customers to buy their products / services by using these apps.
5) e-marketing: Electronic marketing provides a world wide platform for buying and selling of goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time.
6) e-trading: e-trading is also known as “online trading” or “e-broking”. It is used for buying and selling stocks in stock exchanges.
Ex: Money conrol.com
Question 2.
What are the benefits of e-business to business organisations?
Answer:
The benefits of e-business to business organisation.
1) Reach beyond boundaries: e-business enables the organizations to extend their market place to national and international markets and thereby increase their sales/revenues with limited time span.
2) Cost savings: Reduces the cost of creating, processing, distributing, storing and retrieving information. Further, it allows reduced inventories and overheads cost.
3) Competitive Advantage: E-business enables the customer to compare the chosen products/services with all available competitor products/ services. This helps in reduced processing time allows for customization of products and services for achieving competitive advantages.
4) Shortens Recovery of capital Invested: E-business reduces the time between the outlay of capital and the receipt of products and services.
Question 3.
What are the benefits of e-business to customers?
Answer:
The benefits of e-business to customers are:
1) Convenient shopping: e-business enables customers to shop or do any transactions 24 hrs a day, round the year from almost any location as per their convenience.
2) Wider choices: E-business enables the customers to have more choices or more alter-native products and services online.
3) Price Advantage: E-business provides customers with less expensive products and services by allowing them to shop in many places and Conduct Quick Comparisions. E-business facilitated Competition which results in substantial price advantages.
4) Exchange of Information: E-business allows the customers to interact with other customers and exchange business ideas, opinions and experiences about the products/ services which are available at different online portals.
Question 4.
What are the benefits of e-business to Society?
Answer:
The benefits of e-business to society
1) Environmental Benefits: Since customers can buy their required products/services online with a click of button either from their place of work or home, without moving to the shops physically. This results in reduced traffic congestion, air and sound pollution.
2) Public welfare: e-business allows some merchandise to be sold at lower prices benefiting the poor people.
3) Availability products: Due to e-business, abundant varieties of products/services are available to the customers according to their desired products/services which are available at any comer of the world.
Very Short Answer Questions
Question 1.
e-Business.
Answer:
1) The term “E-business” refers to the integration of business tools based on ICT to improve the following of the company.
2) E-business means Electronic Business. The term e-business was first used by IBM in 1997, it defined E-business as, “the transformation of key business processes through the use to internet technologies”.
Question 2.
e-Ban king.
Answer:
1) Performing all banking operations by using internet is known as “E-banking”. It is also called “Online Banking”.
2) Online banking allows the customers to get their money from an Automated Teller Machine (ATM). They can view their accounts, transfer funds, deposit amount and can pay bills.
Question 3.
e-Commerce.
Answer:
1) Transacting or facilitating business through internet is called E-Commerce.
2) E-commerce revolve around buying and selling online. But the E-Commerce universe contains other types of activities as well. Any form of Business transaction conducted electronically is E-commerce.
Question 4.
e-Auctioning.
Answer:
1) The internet enables people to participate in the auction without sacrificing their personal time.
2) In E-Auctioning the people, who want to participate in the auction, visit the website with a click and go through the details of goods offered or kept in the auction concerning web pages and participate in the auction. Ex: Bank auctioneers tenders.
Question 5.
e-Trading.
Answer:
1) E-trading is also known as “Online trading” or E-broking.
2) It is used for buying and selling stocks in stock exchanges.
For example Money conrol.com.
Question 6.
e-Marketing.
Answer:
1) Performing all marketing functions like buying selling, advertisement, etc., by electronic media is called “E-marketing”.
2) The Internet allows companies to react to individual customers’ demands immediately without any loss of time. It does not matter where the customer is located. It can be done by e-mail etc.
Question 7.
Foreign exchange risk.
Answer:
1) Foreign exchange risk is also known as “Exchange rate risk” or “Currency risk”.
2) It is a financial risk that exists when a financial transaction is denominated in a currency other than that of the base currency of the company.
3) This risk arises due to variations in the exchange rates in the foreign exchange market.