4

GSEB / CBSE

B.O.M

ACCOUNTS

STATISTICS

ECONOMICS

C.A., C.S., C.M.A.

Sector-2c, 737/2, Nr GH 1.5,opp. Andra Bank, Gandhinagar

Sector-28, Below SBI Bank,Opp. Pagarav Hospital, Gandhinagar

Sector 5c, 1683/1,Nr. Shiv Shakti Chowk,Gandhinagar

ORGANIZATION OF COMMERCE& MANAGEMENT

Communication, E-Commerceand Outsourcing

CHAPTER-04 | Communication, E-Commerce And Outsourcing

RACHNA SEKHANI 1

Meaning : communication is a two way process of sending information from source and receiver of the information interprets the message and responds.

“Communication means exchange of thoughts, opinions and information through speech, writing or signs”

01 | Communication

Definition

02 | State the process of Communication

SR.NO Steps Explanation of Steps

Formation of message

Selection of medium

To send message

To accept the message

Interpretation of the message

Reply to the message

01

02

03

04

05

05

Message is created in exchange of information.Message can be oral, written or non-verbal

After creating message, it is important to select means of communication. For example by letter, or email or text message or orally etc.

The message is sent after selection of medium of exchange of information

The sender sends the message and receiver accepts the message

The receiver of the message interprets the message

After interpreting the message, receiver gives proper reply to the sender and communication process ends here

03 | State the meaning of Internet

04 | State the categories of computer network

The word Internet is derived from two words “Interconnection” and “Network”

Internet is the largest computer operated system in the world.

It has some other names like the net, information super high-way, cyber space etc.

Thus, internet means a network of computers which establishes communication by a centralized organization with or without the help of telephone or with the help of satellite.

means the computers a re connec ted a t cer ta in p lace are connected with one another through wire or without wire.

means compute rs a re connected with one another.1 | LAN

(Local Area Network)

3 | MAN

2 | CAN(Campus Area Network)

(Metropolitan Area Network)

4 | WAN(Wide Area Network)

means computers at a campus are connected with one another.

means computers are connected g loba l ly without any physical boundaries.

CHAPTER-04 | Communication, E-Commerce And Outsourcing

RACHNA SEKHANI 2

05 | State the types of WAN

06 | What functions can be performed through internet

Enterprise WAN

Contact with other persons

Receiving of information

The connection with othercomputer system

Global WAN

A

1

2

3

B

It is wide area network of computers in big organization.

We can promptly and easily commu n i ca te w i t h a n y person in the world with the help of email through internet. We can chat with internet users across the world as if we are sitting in the same room.

The computers across the world are connected with the help of internet. Thus w e c a n e a s i l y a n d immediately receive any information about any

The direct connection with the other computer system is possible by using the medium of internet broadcasting.

I t i s a network o f network of computers. This type of network is called Intranet.

For example : Indian Railways connect all its ofce computers through this type of network

This is a large network.

It is in various countries and continents

It is one collective network of various organizations

It is called World Wide Web

This network has no geographical boundaries.

07 | State the meaning of E-Commerce

Advantages of E-commerceB

E- Commerce means electronic commerce in which trading is done by electronic gadgets and medium.

All the processes of this E-Commerce such as purchase, sell ing, advertisement and comparison with other products, transfer of money etc. are made by electronic gadgets.

Media like internet, computer network, e-mail service, bank credit card, debit card are used for the trading.

Buying – selling, delivery of goods and payment of money by professional units have become easier due to E-commerce.

The whole process of buying and selling has become easier and faster in comparison to the system of traditional business due to E-commerce.

Business can be done at any time and place with the help of e- commerce

Many activities such as marketing process, distributing, phone, post and printing are reduced due to E- Commerce

E-Commerce provides better services to the customer.

Price of product, quality of goods and other questions can be solved easily due to easy interaction with customers.

Solution to services or goods related problems have become faster.

CHAPTER-04 | Communication, E-Commerce And Outsourcing

RACHNA SEKHANI 3

08 | State the scope of E-Commerce

Business to Customer (B2C)

Business to Business (B2B)

Customer to Customer (C2C)

Customer to Business (C2B)

A

B

C

D

The scope of E-commerce services can be classified as follows:-

In this there is a seller at one end and customer at other end.

In this both the parties are professional traders or sellers.

The sellers sell their p roduc ts d i rec t l y to customers with the help of internet.

B2B t r ad ing makes interdependence easy and effective.

It establishes e – relationships with suppliers, distributors or other middlemen.

In this, customer is directly connected to customer.

It is a business model in which consumers can offer products and services to companies, and the companies pay the consumers.

This business model is a complete reversal of the traditional business model in which companies offer goods and services to consumers.

It reduces the time of negotiation and increases the exibility of the customers

Customer directly sells to o ther customer through internet.

Example of this is OLX. Quicker. As there is no middlemen involved, costs are reduced to great extent.

Example of such is online shopping and online banking.

09 | State the requisite equipment for successful implementation of E-Commerce

Website

Computer with internet connectivity

Credit Card/Debit Card

A

B

C

The traders are not familiar with one another in E-commerce.

The buyer feels insecurity in payment before purchase and seller feels insecurity in providing goods and services before payment

The payment through the card is done in such a way that we can stop the payment after the order of payment within seven days.

This problem is solved by debit and credit cards.

The question arises of the security of the nancial transactions

For E-Commerce, development, management, maintenance and up gradation of website is must.

The computers of the traders or customers must have internet connection for the purpose of purchase and sale or business activities in E-Commerce.

10 | State the process of online transactions

Pre-buying and selling stage

Conditions of buying and selling

A

to be cont.....

B

Advertisement and information receiving are included in this stage

This includes price xation and other terms

CHAPTER-04 | Communication, E-Commerce And Outsourcing

RACHNA SEKHANI 4

Delivery of goodsC

Exchange of goods and services, payment and delivery of goods thereof is included in this stage :

Registration : A customer has to register himself by providing all the requisite information and email address online.

Place an order : We can select and put the product of our choice in shopping cart while shopping online. Finally order is placed from the cart.

Payment system : Payment can be made by any of the following depending upon the terms and conditions

Payments are made by the customers when the goods are received by them.

This is one type of currency which exists only in cyber space. There is no physical existence of form of this type of currency. Banks allow the customers to use their real currency to generate digital cash. Customer transfers his money to the digital payment wallets and makes the payment for the goods and services from this wallet. For eg. Paytm, Mobikwik, Phonepe etc

online seller can collect the cheque from the customer. A person buying the goods issues cheques to the sellers. Sellers dispatches the goods only after the cheque is cleared.

Banks also provide the facilities of making payment or transferring money through internet to the customer in recent times.

These types of cards are known as plastic money. These cards are used on large scale to make the online payments. In credit card, a person is given credit limit. He can rst make the payment for the goods and services and then make payment to the bank on billing date. In debit card, a customer can make the payment only upto the amount of balance in his account.

Cash on delivery

Digital cash

Cheque

Net Banking Transfer

CreditCard or DebitCard

11 | Write a note on the safety and security of the transactions

Risk of Transactions

Risk of data collection

Intellectual property & Privacy Risks

A

A

A

At the same time it is possible that customer has not placed the order at all.

The complaints like non-receipt of goods, poor quality of goods, goods not received on time and at particular address.

There are many risks relating to data

Internet is open platform

To prevent this seller should take the complete information from the customers and customers should buy from authorized sellers only.

Important data of the customer can be stolen for the purpose of enjoyment or selsh motive.

Once the information is placed on internet, it becomes public.

Information such as e-mail address, phone number, bank account number, password provided during online transactions and many more business information is required to be kept condential while dealing online.

Seller complains that the customer has not p l a c e t h e o r d e r properly.

CHAPTER-04 | Communication, E-Commerce And Outsourcing

RACHNA SEKHANI 5

Meaning : BPO means to get the contractual services of the external company or group to complete special work or process of the company.

Hacking means some person is getting unauthorized access to the information and uses that information in such manner which may be harmful.

When miscellaneous work is handed over to other group by business for prescribed time, it is called outsourcing.

1. Cost cutting : Business units can reduce the expenditure by outsourcing front ofce and back ofce works to other business units

2. Focus on principal works of company : Managers can focus on the main work of the company as the daily works are outsourced

3. Benefit of efficiency : Business units can get quality work by outsourcing instead of employing training to employees

4. To cater to the dynamic demand of the people : Demand of the people is ever changing business units can fulll their demands through outsourcing

5. Increase in profits : Business units can increase the prots by outsourcing less important work and concentrating on the main functions like development and marketing of business etc.

BPO is required for the following reasons :

12 | Explain the meaning and requirement of BPO

12 | Hacking

12 | Outsourcing13 | Meaning of knowledge process outsourcing

KPO means outsourcing of knowledge based process.

KPO means outsourcing of knowledge based process.

Processes related to knowledge are focussed in KPO.

For eg. Business research, legal services, medical services, training and guidance, research and development etc.

1. Achievement of best skills : As the persons providing these services are highly experts and skilled in their eld, best skills are achieved by the business

2. Maximum use of resources : As human resources become free by outsourcing, they can be used in more productive activities and maximum utilization of resources become possible.

3. Solution of complex problems : Some complex problems of business can be solved only by experts through outsourcing

4. Special attention to principal functions : Managers can focus on the main work of the company as the daily works are outsourced

5. Maximum use of money : As capital is saved due to outsourcing, money can be invested in some other activity resulting into best use of money

6. Reduction of expenditure : As the process are outsourced, expenditure on training and development of staff is reduced.

7. Reduction in Risk : Market completion, government policy rules and regulations are ever changing. As experts are involved in this process, risks are reduced.