NCERT Solutions Class 11 Business Studies Chapter 5 Emerging Modes of Business
NCERT Solutions Class 11 Business Studies Chapter 5 Emerging Modes of Business: National Council of Educational Research and Training (NCERT) Class 11 Business Studies Chapter 5 Solutions – Emerging Modes of Business.
Board |
NCERT |
Class |
11 |
Subject |
Business Studies |
Chapter |
5 |
Chapter Name |
Emerging Modes of Business |
Topic |
Exercise Solutions |
Short Answer Question:
(1) State any three difference between e-business and traditional business.
Ans: The difference between e-business and traditional business are as follows:
Basis | E-business | Traditional Business |
(i) Meaning | (i) It is defined as the conduct of industry, trade and commerce using the computer network | (i) It is defined as carrying out business without the use of computer network and physically |
(ii) Ease of formation | (ii) It is much easy to setup as it can be done through internet. | (ii) It is a time consuming and costly procedure to set up as it requires a physical place to conduct business. |
(iii) Locational Requirement | (iii) It does not have any such location requirement as of traditional business. | (iii) It requires proximity to the source of raw materials or the market for the products. |
(2) How does outsourcing represents a new mode of business?
Ans: Outsourcing refers to a long-term contracting out generally the —– and sometimes core-activities to captive or third party specialist with a view to benefitting from their experience, example, expertise, efficiency and even investment. Outsourcing is a new mode of business due to the global competitive pressure for high quality products & services, demanding customers, emerging technologies. Hence, these are the factors that compels a business unit to go for outsourcing in order to survive in the market.
(3) Describe briefly any two applications of e-business?
Ans: Two applications of e-business are as follows:
(i) Convenience: E-business offers the convenience of 24 hours × 7 days a week × 365 days a year business that allows a convenient conduct of business e-business is truly a business as enabled and enhanced by electronics and offers the advantage of accusing anything, anywhere, anytime.
(ii) Speed: Through e-business a person can conduct his/her business at a greater speed through interest as the information about the product/service can be achieved through a click of mouse.
(4) What are the ethical concern involved in outsourcing?
Ans: The ethical concerned involved in outsourcing are as follows:
(i) Confidentiality: Outsourcing involves sharing a lot of vital information and knowledge and if the outsourcing partner does not preserve the confidentiality and passes it is the competitors then it can harm the interest of the party.
(ii) Sweat shopping: The firm that outsource seek to lower their cost and try to get maximum benefit from the low-cost manpower of the host countries.
(5) Describe briefly the data storage and transmission risks in e-business.
Ans: Data storage and transmission risk involves data stored in the systems and en-route is exposed to a number of risk, vital information may be stolen or modified to pursue some selfish motive. Data may be intercepted in the course of transmission. Virus is a program which replicates it self on the other computer system and its effect can range from more annoyance in terms of some on-screen display, disruption of functioning damages to target data files etc.
Long Answer questions:
(1) Why are 0-business and outsourcing referred to as the emerging mode of business? Discuss the factors responsible for the growing importance of these trends.
Ans: E-business and outsourcing has become the emerging modes of business due to its ability to meet the expectations of a dynamic business environment. The factors responsible for growing importance of these trends are as follows:
(i) For E-business: (a) Global reach: Through e-business, a businessman can reach each and every corner of the world which has an access to the internet. E-business enables the exchange of goods & services of the whole world through the mode of internet.
(b) Cost-saving: In e-business trading is much cheaper than the traditional method of business as it does not require for a shopkeeper to have a physical shop for selling the product.
For outsourcing: (a) Growth of firm: The investment requirement of the firm reduces and as a result of it the profit increase due to better services availed through outsourcing that leads to growth of the firm.
(b) Focusing of attention: The business can concentrate on its core activities through outsourcing its other allied functions.
(c) Better performance: Through outsourcing, the firms can perform better as they can hand over those activities to the specialists.
(2) Elaborate the steps involve in on-line trading.
Ans: The steps involved in online trading are as follows:
(i) Registration: Registration means the customer should have an “Account” with the online vendor and filling up of the details and setting of a password and this completes the process of registration.
(ii) Placing an order: The customers can pick and drop the items in the shopping car and after being sure about the item to be purchased the customer can checkout and choose the payment option for placing the order.
(iii) Payment mechanism: Payment for the purchases through online shopping can be done through the following ways:
(a) Cash on deliver: This involves payment for the goods ordered online to be made in cash during the time of delivery of the product.
(b) Cheque: The online seller may arrange for the pickup of the cheque from the customer’s end for receiving the payment.
(c) Net Banking transfer: The buyers can transfer funds from his/her account to the seller’s account through net banking system.
(d) Digital cash: This is a form of electronic currency that only exist in cyberspace. The user of this cash has to deposit fund of the equal amount that needs to be paid an then bank issues a special software that allows the user to withdraw digital cash to make payment.
(3) Evaluate the need for outsourcing and discuss its limitations.
Ans: The used for outsourcing are as follows:
(i) Focusing of attention: The business firms realises 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.
(ii) Cost reduction: Division of labour and specialization reduces the cost and allows the firm to offer as competitive price of its product. This can happen through economics of large scale accruing to the outsourcing partners as they deliver the same service to many firms at once.
(iii) Fillip to economic development: Outsourcing stimulates entrepreneurship, employment and exports in the host countries and boost up economic development of such countries.
The limitations of outsourcing are as follows:
(i) Sweat shopping: The firms that outsourcing seek to lower their costs and try to get maximum benefit from the low-cost manpower of the host country.
(ii) Ethical concern: Sometimes outsourcing may involve some unethical methods like – use of child labour, discrimination of wages etc.
(4) Discuss the salient aspects of B2C commerce.
Ans: The transaction taking place between business units and customer are known as B2C transaction that enables the business to remain in contract with its customers all the time. The customers can also contact the business units through customer care services. B2C involves selling and distribution, after sale services, promotion, marketing, handling customer grievances etc. B2C entails a wide gamut of marketing activities such as identifying activities, promotion, delivery of products. B2C enables the business or the companies to conduct online surveys to ascertain as to who is buying what and the customer’s satisfaction level.
(5) Discuss the limitation of electronic mode of doing business, are these limitations severe enough to restrict scope? Give reasons for your answers.
Ans: The limitation of e-business or electronic mode of business are as follows:
(i) Lack of personal Touch: e-business lacks the warmth of interpersonal interaction and is relatively lies suitable for business for products requiring personal touch like-garments etc.
(ii) Incongruence between order processing: Information about the product can flow at the click of a mouse, but the physical delivery of the product can take a considerable amount of time.
(iii) Need for technology capability and competence: It requires a steady and efficient computer networking system to be established throughout the country to carry out e-business successfully. It is difficult to carry out e-business in a society which is digitally dividend, i.e. division of people based on familiarity and non-familiarity of technology.
However the above mentioned limitations are not sever enough to restrict scope of e-business due to following reasons.
(i) The above limitations are in the process of overcoming as websites are becoming more interactive to overcome the problem of “lack of personal touch”.
(ii) Communication technology is continuously evolving to increase the speed of order processing.
(iii) Setting up of community telecentres in villages are a way to overcome the problem of “digital divide”.
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