Internet and E-business

Analysis of E-Business


Internet has brought paradigm shift in the ways of communication. There has been total transition in the way people communication to each other. This virtual platform has decreased the boundaries between people far from each other. Increasing personal and professional interaction between people through this virtual platform has given immense opportunity to the business entities offering wide range of products and services in the better and feasible manner. Report is prepared to elucidate different components of internet to process e-business in bringing lucrative benefits to the organization. For this purpose, F & M is selected which is serving its customers by providing exceptional gift hampers from three centuries. The report throws light on the scope of e-business, ways in which internet influence the working of organization and different internet models used by it to expand its venture on national and international grounds.

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Task 1

1.1 Environment in which e-business is conducted

Business conducted on internet gets influenced with number of factors.

  • Company is required to abide by the legislative laws laid down by government and other legislative bodies (Gloor, 2012).
  • Key concern issues for the business entities are security issues. There are many legal aspects that bounds organization to work under the particular framework and function.
  • Technological environment largely influence the business operation such as with frequent up-gradation in technology it requires that company install advance techniques and inculcate in its operations.

E-business transaction types

Direct transaction

In this process company get linked to the customer in the direct process and operates the transaction methods. Adopting this method companies maintain direct connection with the customers so it reduces time and costing. It is considered as direct selling concept that helps to build strong relationship with targeted customers. The company is able to receive feed backs directly from potential clients. It further helps to guide framing future marketing strategies.

Through intermediaries

In this process transaction is done through medium or portal. A company chooses a platform and enables the company to process transaction. This process is adopted due to its precise nature (Ray, 2012). Although it is also beneficial in order to understand customers needs and expectations through the help of intermediaries. The company coordinates effectively with the intermediaries.

1.2 Benefits and barriers to a business considering its online presence.

Benefits of e-business

  • Sales volume: With better connectivity and interactions, producers are able to consolidate large number of customers with their organization which increases sales in significant amount.
  • Cost reduction: Due to the reduction in number of intermediaries between producers and customers, there is considerable amount of reduction in the cost. Further, direct transaction facility via internet eliminates the transaction cost occurred on business entities.
  • Flexibility in communication: Internet has been the lucrative element for seller to communicate with customers. Due to instant interaction, they are able to give details about product and further it also addresses their queries.
  • Better logistics: Proactive transaction between producers and sellers leads to enhancement of efficiency of supply chain with faster and precise delivery.

Barriers of e-business

  • Non compatible infrastructure: Though fast technological advancement has made the process of purchasing and selling easier but still it is lagging far behind the required infrastructure such as privacy, security and confidentiality are the key concern.
  • Lack of expertise: There is a very fast pace advancement in the information technology which requires frequent up-gradation of hardware and also bring adaptability with the use. Demand of knowledgeable persons outstrips the supply which hinders the optimum use of this facility.
  • Resistance to change in methods: People are comfortable by using conventional methods of transaction and business and resistant to inculcate new technology in their processes.
  • Security issues: Major concern of using internet as the platform for internet is security measures. Due to certain loop holes and lacunae in measures adopted, there is fear of losing confidentiality and privacy for the users.

1.3 The security and legislative issues likely to be faced by the online business

There are few key issues of concern with respect to the security that are faced by online businesses (Li, 2011).

Data protection

It is imperative for an organization undergoing online business to protect the personal and profession data they hold about their users. Mentioned organization F & M is required to comply with laws imposed to protect the data. It has to undergo the measures taken against unauthorized data processing or in case of loss or destruction of data (Oliveira and Martins, 2010).

Security products and services

To ensure the security of data of the users and entities linked with business entities there is requirement of certain evidences for authentication such as identity verification, message assurance and evidences of the contract made such as date, time and place where it was ratified.


Using it as a secret measure between a sender and receiver, encryption is the process that underpins the security arrangements processed in information technology. By adopting these methods in their transaction F & M will ensure safety of data.

Other measures

Digital signatures and certification authorities are few more tools used, by which safety and protection of data is ensured.

Minimize risks

The concerned business entity often face issues related to security and risk. In order to cope up with this situation cited business enterprise make use of Internet sales regulation and inter absent es contracts to reduce the impact of risk over organization.

1.4 Different modes of communication

Internet provides different modes of interaction to the users.

Electronic data interchange (EDI)

In this method, through electronic means documents such as purchase orders, shipping notices, invoices and other documents are transferred between two business entities. There are three methods through which trading partners connect: peer to peer, value added networks and Internet.

Voice over internet protocol (VOIP)

Using this method, F & M is able to coordinate with different stores by making phone calls using internet. In this method, voice audio are converted into digital signals (Kloch, Petersen and Madsen, 2011). Two examples of these facilities are Skype and Face time which is prominently in use. This will enable the mentioned organization to conduct video conferencing and teleconferencing with different suppliers sitting at different corners of the Globe.

Instant messaging

Instant messaging is the way adopted by the users to communicate with other person by using the same network by sending messages in fraction of seconds. These methods prove lucrative to provide better customer service. Using this method, service providers seek the complaints, issues faced by them, requirements and suggestions to process the business. Due to the faster pace of technological advancement, management requirement is immediately addressed (Barnes and Hunt, 2013).

Blogging and social media network

It is used by wide range of people, social media platforms and blogs are the best way to connect with large number of people. Through this, the recent or upcoming product launching information is posted on these platforms which reach large number of people. Examples of this method are Facebook, twitter and LinkedIn (Bélanger and Crossler, 2011).

Task 2

2.1 Internet technologies and their importance in making an E-Business successful

There are internet technology tools that make the use of internet for business purposes successful


Websites are the portal on which the users post related information for people to engage with it. This platform is utilized by number of people to post information such as private business entities, government, and nonprofit organization. Making attractive website with the accessible user interface makes the user know about the working and products offered by the organization.

Internet communication technologies

It refers to the different modes of communication through which people are connected with each other such as instant messaging, emails, VOIP and many more (Bhakoo and Chan, 2011). Using this will enable users to interact with each other.

Cloud computing

This facility enables the users to process and store data at third location that is data centers providing computing and storage facilities to users and enterprises.

Packet switching

Packet switching refers to the process adopted by the organization while transferring large amount of data. In this process data is segmented into small packets and then sent which minimizes the time, bring efficiency and preciseness with the minimum loss of data (Casadesus-Masanell and Ricart, 2010).

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2.2 The functions of clients-servers and browsers and the role of search engines and its applicability for ‘F&M’


A computing model used to bifurcate the tasks and work in two sections that is service and resource provider and secondly service requester. The allocation is done according to their structure and use. Service providers are referred as servers and service requester is known as clients. F & M is functioning at many places with many stores and services. It is endowed with large amount of data. This model enable the organization to process the tasks easily with accurate partitions (Fuchs and, 2010).


It is the simple way to get around the web. It is the software application that makes the user to retrieve, present and traverse information resources on the platform of World Wide Web. This information resource is identified by a particular address that is referred as URL that is uniform resource identifier. This is the unique address allocated to the user with the provision to provide information on it.

Search engine

It is a tool that enables the searching for documents and other required information with the use of certain and related keywords further a list is shown with respective documents. This is of great utility to the organization F&M by using tools such as search engine marketing and optimization. These process enables the F&M to come at top position in searching reach large number of people to maximize sales (Gloor, 2012).

2.3 Intranet and extranet


It is the form of network operated in an organization with the large family of employees such as F&M where there is frequent transferring of information between them. Using this method employees in similar departments and different shares data and information with very fast pace. This form of networking is completely insulated from the global internet to robust its speed and maintain privacy. Using this facility will prevent the strategic decisions taken in the organization from leaking out (Ifinedo, 2011).


With the similar form of structure with larger domain is known as extranet. Using internet technology in a private network between different components of the business organization. In this process information is shared between business entities, suppliers, vendors, partners and customers. With the use of this networking process F&M is able to communicate with all the sections of organization in a better manner to maintain the coordination and networking for its smooth functioning.

Task 3

3.1 different e-business Revenue models can be used to generate revenue for a business

In order to process business on internet platform there are certain measures adopted of organization to maximize their sales and revenue. There are fundamentally three types of model that can be used by organization F & M and can adopt it as per the suitability as a whole or in segments (Kloch, Petersen and Madsen, 2011).

Transaction fee model

In this model company accrue revenue in the form of fee for executing transaction on certain platforms such as eBay, E-trade and Autobytel.

Sales model

This model states the company generates revenue directly by selling their goods to customers and keeping profit margins as per their strategy. Some platforms providing this facility are Amazon, Land's End, Dell and many more.

Affiliate marketing model

According to this model a company accrue certain and specified percentage of sales revenue that is decided by their consent. In this a formal agreement is prepared on the basis of which company generates revenues. Prominent example of this model is Mypoints that provide companies the facility to procure certain amount of sales revenue and other as a charging fee (Laumer, Eckhardt and Weitzel, 2010).

3.2 Comparing two revenue models by assessing their benefits and challenges.

Revenue model is a framework to pursue for the source to generate revenue as per the suitability by the organization. Use of it enable the organization o maximize it with appropriate strategy. The two selected e business revenue models are affiliated marketing revenue model and transaction model.

Transaction model enable the company to sell its product on the internet platform by paying the fixed fees to the operator of that platform on the other hand affiliate model states that in this portal charges fees for the marketing of product to the wide stream of public and reach them (Li, 2011).

In transaction model the fee charged it fixed in nature on the other hand on the affiliated marketing model fees is not fixed and charged on the basis of amount of marketing.

Affiliated marketing model enable the company to reach large number of public due to the inclusion of marketing component in the process of selling while transaction model is confined to providing portal to the company for selling.

3.3 future developments in e-business revenue models

Revenue model is the systematic and planned manner of reaching customers through internet. With the set of activities in the particular sequence the model is processed. With the wide area of coverage e business revenue are useful for the selected company with respect to the revenue generation and sales maximization. With certain improvements sales can be maximized and optimized (Liu, Cao and He, 2011).

  • Collaborating with the high traffic sites to ensure and maximize the sales.
  • Adopting the combination of two revenue models by the selected organization F&M will lead the organization to showcase their offerings in the better way and sell it wide horizons.
  • Inculcating several components in the model and prepare a customized plan such as marketing, data management and many more.
  • Marketing on internet refers to posting products on social media sites, blogging and detailing the information with supplement to it (Oliveira and Martins, 2010).
  • Efficient data management includes the management of data in the very lucrative manner using certain tools and techniques such as packet switching, cloud computing etc. it will enable the organization to manage large amount of data in efficient manner. Better accessibility of data by organization leads to smooth functioning.

Task 4

4.1 key elements of a good website design structure.

At the time of making the good website design structure there are certain elements that are needed to be kept in consideration.

  • Good visual design makes the website attractive: It makes the user to visit the website and increase the traffic on it. Increased traffic escalates the sales of product and services by F&M.
  • Content relevancy: The high degree of content relevancy makes the organization reliable. Reliability holds the customer with the organization for longer period and keep the regular earning stagnant (Ray, 2012).
  • Easy navigation: It refers to the accessible user interface. When the interface is user friendly, it makes the customers to surf for the information in efficient manner.
  • Call for action: The availability of the contact path enables the person to contact with the respective organization in case of any query or requirements (Shambour and Lu, 2012).
  • Credibility: The basic concern of the customer while navigating website is its credibility.
  • Mobile site: At present with the wide use of mobile phones for every purpose, it became must for organization to launch mobile versions of websites. With this information about gift articles sold by F&M can be procured with one touch at mobile itself.

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F&M is a gift hamper enterprise and is planning to develop its official website in order to communicate effectively with potential customers. It will focus on developing attractive yet informative website. It will follow systematic set up where on the left side of website there will be provided details of products and gift hampers. While on the other side it will reveal offers and schemens launched by company at festive season. On the upper side of website, tabs like home, about us, company policies, career opportunities and contact us tab will be highlighted for better convenience of individuals. In the middle recent events and news updates will be availed it will disply pictures and videos too so that customers are attracted and acquire better knowledge.

4.2 impact of a well-designed website

There is the large influence of well designed website on the productivity and profitability of organization.

Sales maximization

Well designed websites attract high traffic to the website. It results into the increment in the sales of organization. The profitability and performance of concerned business operations increases with well designed website.


Increased sales results in the increment in the profitability of organization with high revenue generation. It helps in building competitive edge in the market with widening the gap from competitors. It ultimately results in increased profit margin of the company and better execution of policies and procedures.

Increased customer interaction

Well designed leads to the consolidation with the customers to the great extent. Instant messaging and customer service is processed. The company is able to develop strong relationship with new and existing clients.

Improvement in quality

When there in high interaction with customers and suppliers, F&M are able to seek advice and suggestions from the customers for further improvements (Srivastava and Teo, 2010). Feed backs provide better picture of customer expectations and desires and according to which concerned company develops its products.

Financial performance

It led to the improvement in the financial performance of the organization. It has increased profit margins of the concerned business entity and empowered with effective financial performance.

4.3 Issues concerning website utility

While making websites there are certain issues that are needed to be addressed by the organization F&M. Considering these issues prevent the website from making it of less utility for the organization.

  • Poor image: It is very imperative to make the website attractive in nature with the precise use of graphics and images. Use of poor image deviates the flow of customers away from the website (Veit and, 2014).
  • Poor formatting: Improper formatting makes the navigation at the website discomforting and imparts wrong impression on the customer about the organization.
  • Over use of content: When the amount of content is high, it becomes very difficult for know about the organization in precise manner (Andreu and, 2010).
  • Browser incompatibility: Browser incompatibility leads to deviation of traffic to other place.


With the advancement in information technology, there is the paradigm shift in the process adopted by organization to promote the product and services offered by it. From the present study it can be inferred that various components of internet and e business enable the organization to enhance its profitability and customer base.


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  • Barnes, S. and Hunt, B. eds., 2013.E-commerce and v-business. Routledge.
  • Bélanger, F. and Crossler, R.E., 2011. Privacy in the digital age: a review of information privacy research in information systems.MIS quarterly.
  • Bhakoo, V. and Chan, C., 2011. Collaborative implementation of e-business processes within the health-care supply chain: the Monash Pharmacy Project.Supply Chain Management: An International Journal.
  • Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto tactics. range planning.
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