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Class 11 Emerging Modes of Business: cheat sheet
CBSE Business Studies. E-business and its scope, its benefits and limitations, how an online purchase works, the risks of online business, and outsourcing of non-core work.
Key ideas
- E-business is carrying on business over computer networks; it is wider than e-commerce, which covers only buying and selling online.
- Its scope covers B2B (between firms), B2C (firm to customer), C2C (between consumers) and intra-B (within one firm).
- Its benefits: easy and cheap to set up, open at all hours, fast, a global reach, and less paper.
- Its limitations: low personal touch, slow delivery compared with fast ordering, need for technical skill, worries about security, and people’s resistance.
- An online purchase runs through registration, placing an order with a shopping cart, choosing how to pay, and delivery.
- Risks are transaction risks (order, delivery, payment), data storage and transmission risks (viruses, hacking) and threats to intellectual property; encryption protects data on the way.
- Outsourcing hands non-core work to specialist outside agencies, so the firm can focus on its core work, gain expertise and cut cost; it raises concerns about confidentiality and working conditions.
Remember
| B2B | a firm buys raw materials from its suppliers online |
| B2C | a customer buys from an online store |
| C2C | people sell used goods to each other on a platform |
| Intra-B | departments of one firm share information over its own network |
| Ways to pay online | cash on delivery, net banking, credit or debit card, digital cash |
| Price paid online | list price − discount% of the list price + delivery charge |
| Yearly saving from selling online | 12 × (monthly rent − monthly cost of the website) |
Watch out
- Treating e-business and e-commerce as the same: e-commerce is only one part of e-business.
- Calling a firm’s online purchase from its supplier B2C: firm to firm is B2B.
- Outsourcing a core activity, such as a firm’s own product design: firms outsource non-core work.
Worked example
An online store sells a jacket listed at ₹3,950 with 10% off, plus a delivery charge of ₹40. How much does the buyer pay?
Working: 3,950 − 395 + 40
Answer: ₹3,595
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