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Internet and E-business

Factors affecting Business Model

Introduction to E-Business

Concord Textile Ltd is a UK based clothing enterprise which provides different range of clothing products for kids, women and men. In the modern era, tough competition is present in the market and in an ever-changing clothing industry, changes arises very fast. UK based clothing firm deals with India based local company for cloth production to keep production price low. The enterprise took initiatives to expand their sales and improve relationship with their suppliers by using e-commerce and e-business technologies to fulfill needs of customers at stipulated time. The research report describes the environment of firm and explains the issues and barriers that occur during an online presence.

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TASK 1

(a) Environment in which concord textile conducted e-business

An environment plays a vital role in creating opportunities and threats for the businesses. By environment scanning, UK based clothing enterprise can easily understand legal and technical constraints of technology used in business against other competitors. Earlier, organization used traditional methods to communicate with suppliers and customers. This process takes long time as well as huge amount of cost is also involved in it. Concord Textile Ltd can overcome these issues with the help of adopting e-business and e-commerce technologies in their business operations (Edward, 2012). For implementing e-business at their workplace, the enterprise should develop proper environment and set-up Information Technology system such as Supply Chain Management, Customer Relationship Management, Intranet and Extranet to establish network communication between business partners and firm in an appropriate manner. Concord should conduct proper environment scanning to run its e-business and it can be done through collecting information about the workforce, competitors, economic forces, legal regulations, technology etc.

Example of two business transaction types:

The organization can use business to business (B2B) model to make a global network between two or more business entities. With help of SCM and web-site presence, firm can establish direct communication with their suppliers. In order to increase sales and expanding its business at local and global level, online presence of the firm would be beneficial for it. Concord will use Business to Customer (B2C) model to directly approach its customers and solve their queries regarding cloth products in a flexible manner. By using CRM and SCM, UK based clothing enterprise would be able to improve the operations alongside with increased profit margin and sales also (Hasan, Morris and Probets, 2013). E.g. E-bay used B2B and B2C business model to execute online transactions and establishing global network with its suppliers and customers without any interruption.

(b) Benefits and barriers to a business considering an online presence

Benefits:

Concord would be able to establish direct communication between firm and customers so that they can directly order and purchase clothing products online in a quick manner. Efficient and effectiveness of operations of the firm will be increased through adopting CRM and SCM techniques at the workplace. By using e-business model, better planning about its products such as stock availability, price list, products catalogue, payment details etc. can be done for the UK based clothing enterprise. . CRM and Online Web-portal would be helpful for the enterprise in terms of understanding needs of customers and fulfilling them in stipulated time (Katerina and et.al., 2009).

Barriers:

E-business and e-commerce activities change the processes of doing business throughout the world. However, along with several benefits, some challenges and issues are also associated with online business. Security issue can create a major problem in successful implementation of e-business because without providing security assurance to its business partners and stakeholders, the enterprise would unable to increase confidence of them.

Other issues including security, lack of technology awareness and failure to establish proper IT infrastructure are major problems which will create trouble for the clothing company during an online presence (Mason and Mouzas, 2012).

(c) Security and legislative issues facing an online business transactions

Hackers and crackers can hack or theft useful information of company and personal information of customers in to absence of security measurements. As well as viruses can degrade the performance of the system. DDOS will create problem for the firm in terms of reducing speed of transactions and steal confidential information of business partners and customers also. Legal framework of the country and Information Technology Act can also create challenges for the clothing company to implement their business functions in a proper way. Concord can handle security related issues through establishing legal framework and considering internet policies and Intellectual Property Rights such as Copyrights Laws and Trademarks. The enterprise can mitigate risks through considering security measurements and better control over company and its resources (Chuan and et.al., 2014). The firm can protect themselves by applying email polices, installing anti-viruses and firewall in computer system, employing card verification system and taking care while using wireless network and mobile devices for business transactions.

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(d) Modes of communications available in e-business and their applications

Organization can use different methods such as e-mail, video conferencing, telephoning, voice chat and SMS services to interact with customers, suppliers and its business partners in an appropriate manner within e-business and e-commerce transactions. Packet switching approach would be beneficial for the clothing firm to share large amount of data with their suppliers in a quick manner. E-marketing and e-mail methods can provide opportunity to firm to directly interact with customers and solve their queries regarding the price list and product catalogues etc (Chuan and et.al., 2014). By developing website and making online presence, enterprise will be able to make effective use of CRM and SCM approaches to establish direct communication with customers and suppliers. Through e-marketing and introducing various marketing schemes like buy one get one free and many more, concord can promote its products wide geographical area and would be able to increase its customer's base also. E.g. Concord clothing firm can apply e-mail marketing in its business functions that can be understood as follows:

TASK 2

(a) Internet technologies and their importance in making e-business more successful

Through using packet switching, Concord can send data over the internet by slicing information into smaller sections. With help of this technique, the firm can transmit data or information related to its products from firm to their buyers and suppliers as fast as possible. Data gram packet switching that is also known as the name of connectionless packet switching is used to send data packets in a secure manner (Martínez and et.al., 2010).

CRM would be helpful for the company in terms of creating web-portal to better interact with their customers and solve their queries regarding to price and product catalogue etc. While on the other side, SCM helps firm to deliver

Standard internet protocols including TCP/IP and HTTP would be beneficial for the firm in term of increasing efficiency of transactions and helpful for security purpose also. These standard protocols can affect the e-business functions in terms of security, establishing overall communication process and developing an open system interconnection between organization and their business partners and stakeholders in an effective way. WEB application server technologies would be beneficial for the firm in making an e-business more successful.

(b) Main features of HTML

HTML has unique features including design interactive website, improve accessibility, client -side database and maintain automatic price sheet etc. By creating website using HTML and Dreamweaver, clothing firm would be able to transmit data across the internet between web browsers and web servers. HTML creates static web pages for clients and they can store and displays information about product and price with clear images. Easy front-ends design and drag and drop facilities make website more user friendly (Ozlem, 2011). It supports fluid animation, stream video and high quality of information and many more rich contents in an appropriate manner. It also provides storage functionality to user, so that they can store structured data temporarily in cookies as well as track unique user data for many years.

**It shows the document head of the web-page**
Concord Textile Ltd. Company
** It appears in the title bars**
The document body section contains all the information about the content which are loaded on the web-page.
**It is basic structure of the HTML language and all elements are nested within the start and end statement**.
**This text is use to set the font size, type and color of the web-page**.
< img src= "pic_mountain.jpg" alt=mount view" style="Width : 304px; height: 228px">
**This tag is used in HTML to display the image in the form or set background image in a proper manner**.
Concord Textile Ltd company is the UK based clothing company. It provides various facilities to the customers related to selection of the cloths, product catalogue and display price. The enterprise wants to expand their retail sales and establish direct communication between suppliers and sales representative with help of e-business and e-commerce.

(c) Analyze the functions of client servers and browsers

In the client server architecture, client sends request to other program or servers for resources and services. Client software installed in the end user’s computer and clients can interact with servers and send request services to server such as database, webpage and email access etc. While on the other side, server software is installed on the other computer that interpret request comes from client side and returns results to the clients at stipulated time. Three tier client-server architecture would be beneficial for UK based company. Database layer is used for stored data into database (Lee, 2008). Application layer is used to store bulk of business application data and main logic of programming codes are written in this part. Presentation layer provides graphical user interface functionality to user, so that they can interact with applications. Working of client- server architecture can be understood with help of below figure.

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Client-Server architecture would be beneficial for Concord in terms of scalability (application server can be deployed in many machines), better re-use (middle tier can be made more transparent) and improve data integrity (only valid data is allowed and updated in the database). The three major functions of browsers are providing wide set of customization options to their customers, offer cache memory (special storage area on hard drive) and facility of bookmarks (stores the URL along with its site with a single click) etc (Ozlem, 2011). Search engines provide accurate results with help of using keywords. It performs various roles in different activities including viewer (administration console for an application), developer (view and edit application) and owner (view, edit and delete an application). With help of search engine, Concord Textile Ltd. can optimize their website, improve site navigation and reduce a user drills down path related issues.

(d) Evaluate the use of internet and extranet within business communication

Intranet can be defined as the internal private network of a company and it enhances security measures and allows only authorized users to access and share information with others. Online customers can access the services of the firm by using Intranet at the workplace as well as it also assists enterprise to fulfill their digital communication needs at stipulated time. Concord can use this technique to provide cloth and other products pickers and packers facility of company and test the functionality of website before going live. The enterprise can connect SCM software with intranet to access their network services and better deals with suppliers in terms of ordering information, managing product pricing, product purchase and payment related details in a secure manner (Jengchung and et.al., 2013). Organization can link extranet technique with CRM software to maintain database of their customers and reducing ambiguity in the business functions. It provides wider access of products information to its customers, so that by using web-portal it can solve customer queries regarding products, quality and price etc. The organization wants to expand its retail sales and establish better relationship with suppliers and business partners for textiles. In such kind of circumstances, Concord should adopt intranet and extranet techniques in their business functions to improve integration between firm and its stakeholders (York, 2014).

TASK 3

(a) Different e-business models to generate revenue for business

Business to Business model

The main purpose of use B2B model is to establish communication with suppliers. By using this model, the enterprise can manage records regarding to supplier ordering, order tracking and scheduling activities in an appropriate manner.

(b) Analyze each model in terms of capacity to generate revenue

Business to Business model

B2B model may support both auction platform and request for quotes platform to maintain high degree of flexibility in business operations (Dave, 2008).
Concord would be able to increase sales and improve relationship with suppliers and business partners. By using this model, firm can keep production price low in some clothing range. Organization would be able to better control over their business operations and executes them at stipulated time.

Business to Customer model

This model helps firm in terms of establishing efficient communications with customers. Concord can retains customers with them for long time periods by providing various services such as execute online transaction in a quick manner and save cost etc. By linking CRM with B2C model, firm can better interact with customers and solving their queries regarding to product, price and delivery etc (Santose, 2010).

(c) Future developments in e-business models

In the modern era, companies are focusing towards outsource their functions and moving towards adopting M-commerce in their business transactions. Concord clothing firm can take advantages from new emerging technologies such as cloud computing pricing model, revenue model to create dynamic virtual environment and reduce their operations costs. By concentrating on new technologies, UK based clothing company would be able to increase financial effectiveness, business efficiency and generate revenue from business etc (Emmanouil and et.al., 2009). Web designing tools will be helpful for company to create highly interactive website, so that they will get right information about the price and products etc. In addition, cloud computing is very secure and cheap in terms of reduce infrastructure set-up cost, redesign and review polices of firm etc.

TASK 4

(a) Key elements of good website designs

Website security: Amazon has used two way authentication and firewall techniques for security purpose that contributes in increasing the confidence of customers towards using services and products of organization on online (Mays, 2012).

Easy navigation: By creating user friendly graphic user interface web -page and providing proper navigation links, US based retail giant provides flexibility to their users to user services online.
Easy option choice: The enterprise can attract customers through providing clear information and maintaining transparency about clothing products such as price, stock available, quantity, delivery date and time etc.

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Efficient and Effectiveness: Amazon tracks user who visit website and maintains history of them, so target them by providing various new seasonal or festival offers and expand their customer base in an appropriate manner.

(b) Evaluate the impact of well designed website on an e-business

A well designed website plays a critical role in attracting new customers and maintains existing one. E.g. Amazon has created very lucrative websites in which it provides smart features to their customers regarding to detail of products with pleasing graphics, price list and smart site architecture etc . Website effectively used search engine optimization techniques to provide better product search information in a quick manner and make its site more visible for people. Customers can easily read information about products from the website without any interruptions. Amazon has used monitoring system which alert for suspicious activity and monitor site regularly at stipulated time to reduce security related issues.

(c) Issues concerning website usability

There are different key issues including easy to use, effectiveness, efficiency and easy to learn features can affect usability of website. Amazon has handled these kinds of issues very well through managing important information on webpage and made website effectual for both the company and the society, so that they can easily access information at stipulated time. US retail giant also considered cross platform supportability features, so customers can open their files in different browsers (Rivalogic, 2014). Amazon has failed to provide authorization to their customers such as parent and child on based on their age group. Color blindness and accessibility for the visual impaired are creating website usability related problems for firm. The enterprise can overcome these issues through choosing secure e-commerce platform and using secure online connection for financial transactions.

CONCLUSION

E-business model can bring huge level of transformations and to survive in tough competition market it is essential for firm to adopt technology related changes in their business functions to grasp market opportunity and expand business at global level. From the research report, it is clear that Concord Textile can take advantages from e-business in terms of increasing efficiency and effectiveness of business transactions. Along with several benefits, security and technology related issues can create problem for UK based textile firm. Moreover, Intranet,extranet, SCM and CRM would be beneficial for company to solve the current issues and offerquick service to customers with reduce labor cost etc.

REFERENCES

  • Bruce, C. and Ho, K., 2009. An empirical study of the use of e‐security seals in e‐commerce.Online Information Review.
  • Chuan, A., and et.al., 2014. Innovation in the High-Tech Economy. Springer Science & Business Media.
  • Dave, C., 2008. E-Business and E-Commerce Management. Pearson Education India.
  • Edward, Ku, 2012. Beyond price: how does trust encourage online group's buying intention. Internet Research.
  • Emmanouil and et.al., 2009. E‐service quality: comparing the perceptions of providers and customers. Managing Service Quality: An International Journal.
  • Hasan, L., Morris, A. and Probets, S., 2013. E-commerce websites for developing countries – a usability evaluation framework.Online Information Review.
  • Jengchung and et.al., 2013. Process quality and collaboration quality on B2B e‐commerce. Industrial Management & Data Systems.
  • Katerina D. and et.al., 2009. Measuring e‐commerce‐quality: an exploratory review. International Journal of Quality and Service Sciences.
  • Lee, I., 2008. Electronic Business: Concepts, Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and Applications. IGI Global.
  • Martínez, C., and et.al., 2010. The impact of e‐business on capital productivity: An analysis of the UK telecommunications sector. International Journal of Operations & Production Management.
  • Mason, K. and Mouzas, S., 2012. Flexible business models. European Journal of Marketing.
  • Mays, M., 2012. Chapter 12 Misbehavior in Online Testing. Misbehavior Online in Higher Education.Emerald Group Publishing Limited
  • Ozlem ,B.,2011. Impact of E-Business Technologies on Public and Private Organizations: Industry Comparisons and Perspectives: Industry
 

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