Page 3 - Business Studies

EMERGING MODES OF BUSINESS 121

as managerial activities like planning, of computers is used for placing orders,
organising and controlling can be monitoring production and delivery of
carried out over computer networks. components, and making payments.
The other way of looking at the scope Likewise, a firm may strengthen and
of e-business is to examine it in terms improve its distribution system by
of people or parties involved in exercising a real time (as it happens)
electronic transactions. Viewed from control over its stock-in-transit as well
this perspective, a firm’s electronic as that with different middlemen in
transactions and networks can be different locations. For example, each
visualised as extending into three consignment of goods from a warehouse
directions viz., (i) B2B which is a firm’s and the stock-at-hand can be monitored
interactions with other businesses, and replenishments and reinforcements
(ii) B2C i.e., a firm’s interactions with can be set in motion as and
its customers and (iii) intra-B or a firm’s when needed. Or else, a customer’s
internal processes. specifications may be routed through
A brief discussion of various the dealers to the factory and fed
constituents of e-business and inter- into the manufacturing system for
and intra-transactions among them is customised production. Use of
given as below: e-commerce expedites the movement of
(i) B2B Commerce: Here, both the the information and documents; and of
parties involved in e-commerce late, money transfers as well.
transactions are business firms, and, Historically, the term e-commerce
hence the name B2B, i.e., business-to-
business (see Figure 5.1). Creation of originally meant facilitation of B2B
utilities or delivering value requires a transactions using Electronic Data
business to interact with a number of Interchange (EDI) technology to send
other business firms which may be and receive commercial documents like
suppliers or vendors of diverse inputs; purchase orders or invoices.
or else they may be (ii) B2C Commerce: As the name
a part of the channel through which implies, B2C (business-to-customers)
a firm distributes its products to transactions have business firms at
the consumers. For example, the one end and its customers on the other
manufacture of an automobile requires end. Although, what comes to one’s
assembly of a large number of mind instantaneously is online
components which in turn are being shopping, it must be appreciated that
manufactured elsewhere — within the ‘selling’ is the outcome of the marketing
vicinity of the automobile factory or even process. And, marketing begins well
overseas. To reduce dependence on a before a product is offered for sale and
single supplier, the automobile factory continues even after the product has
has to cultivate more than one vendor been sold. B2C commerce, therefore,
for each of the components. A network entails a wide gamut of marketing

2018-19