Question
Give the differences between e-business and traditional business.
| S. No. |
Basis
|
e-Business
|
Traditional Business
|
| i. |
Formation.
|
Simple.
|
Difficult.
|
| ii. |
Physical presence.
|
Not required.
|
Required
|
| iii. |
Locational requirements.
|
None.
|
Proximity to the sources of raw materials or the market for the products.
|
| iv. |
Cost of setting up.
|
Low, as there is no requirement of physical facilities
|
High.
|
| v. |
Operating cost.
|
Low, as a result of reliance on network of relationships rather than ownership of resources.
|
High, due to fixed charges associated with investment in procurement and storage, production, marketing and distribution facilities.
|
| vi. |
Nature of contact with the suppliers and the customers.
|
Direct.
|
Indirect through intermediaries.
|
| vii. |
Nature of internal communication.
|
Non-hierarchical, aliowing direct vertical, horizontal and diagonal communication.
|
Hierarchical-from top level management to middle level management to lower level management to operatives.
|
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
(i) Raghunanda Biswas had a match stick factory in Indonesia which got destructed by the recent earthquake.
(ii) Rajiv Menon, a senior manager in a telecom company shared confidential information about the company with a competitor which led to huge losses for the company.
(iii) Readyfone Co. was charged with evasion of tax and asked to pay fine in crores which would lead to heavy losses for the company.
(iv) Type writers becoming redundant due to invention of personal computers.
On the basis of the given information about different business, answer the following questions:
(a) Which characteristic of business is being highlighted in the above situations?
(b) Identify the different causes of concept identified in part (a) from the above information?