Business studies
CHAPTER 5
EMERGING MODES OF BUSINESS
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
• state the meaning of e-business;
• explain the process of online buying and selling as a part of e-business;
• distinguish e-business from traditional business;
• state benefits of switching over to electronic mode;
• explain requirements for a firm’s initiation into e-business;
• identify major security concerns of electronic mode of doing business;
• discuss the need for business process outsourcing; and
• appreciate the scope of business process outsourcing.
EMERGING MODES OF BUSINESS
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“Let us do some shopping,” Rita woke up Rekha, her friend from the home- village who had come to Delhi during the vacations. “At this hour well past midnight,” said Rekha rubbing her eyes, “Who would be sitting with his shop open for you?” “Oh! Perhaps I could not convey it properly. We are not going anywhere! I am talking about online shopping over the internet!” told Rita. “Oh yes! I have heard of online shopping, but have never done any,” Rekha said, “What would they be selling over the inter net, how will they deliver, What about payment… and why is it that internet has not yet become as popular in the villages? As Rekha was grappling with these questions, Rita had already logged on to one of India’s largest online shopping mall.
5.1 INTRODUCTION
The way business is done has undergone fundamental changes during the last decade or so. The manner of conducting business is referred to as the ‘mode of business,’ and, the prefix ‘emerging’ underlines the fact, that these changes are happening here and now, and, that these trends are likely to continue. In fact, if one were to list the three strongest trends that are shaping
EMERGING MODES OF BUSINESS
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
• state the meaning of e-business;
• explain the process of online buying and selling as a part of e-business;
• distinguish e-business from traditional business;
• state benefits of switching over to electronic mode;
• explain requirements for a firm’s initiation into e-business;
• identify major security concerns of electronic mode of doing business;
• discuss the need for business process outsourcing; and
• appreciate the scope of business process outsourcing.
EMERGING MODES OF BUSINESS
111
“Let us do some shopping,” Rita woke up Rekha, her friend from the home- village who had come to Delhi during the vacations. “At this hour well past midnight,” said Rekha rubbing her eyes, “Who would be sitting with his shop open for you?” “Oh! Perhaps I could not convey it properly. We are not going anywhere! I am talking about online shopping over the internet!” told Rita. “Oh yes! I have heard of online shopping, but have never done any,” Rekha said, “What would they be selling over the inter net, how will they deliver, What about payment… and why is it that internet has not yet become as popular in the villages? As Rekha was grappling with these questions, Rita had already logged on to one of India’s largest online shopping mall.
5.1 INTRODUCTION
The way business is done has undergone fundamental changes during the last decade or so. The manner of conducting business is referred to as the ‘mode of business,’ and, the prefix ‘emerging’ underlines the fact, that these changes are happening here and now, and, that these trends are likely to continue. In fact, if one were to list the three strongest trends that are shaping