Importance of Managing Virtual Business in a Global Environment

This article discusses the key trends, advantages, and disadvantages of managing virtual business in a global environment. It also explores the importance of technology and its impact on businesses like ASOS, Birchbox, SaksFifthAvenue, and Very. The article further evaluates the emerging digital business models and the challenges associated with information security threats and ethics. It also critically evaluates the importance of new collaborative relationships and strategic alliances through digital technology for implementing personalization.

DIGITAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1: LO1 ..............................................................................................................................1
Critically discuss key trends, advantage and disadvantage of managing virtual business in
global environment......................................................................................................................1
Discuss importance of technology and its impact on businesses such as ASOS, Birchbox,
SaksFifthAvenue or Very etc. ....................................................................................................3
Question 2: LO4...............................................................................................................................3
Compare and contrast situation and SWOT analysis. Perform situation analysis for any one
business focussing on personalisation.........................................................................................3
Question 3: LO2...............................................................................................................................5
Critically evaluate emerging digital business models and challenges associated with
information security threats and ethics in general.......................................................................5
Question 4: LO3...............................................................................................................................7
Critically evaluate importance of new collaborative relationships and strategic alliances
through digital technology for implementing personalisation....................................................7
Question 5: LO5 ..............................................................................................................................8
Compare and contrast digital business and e-commerce. What are E-Commerce principles and
discuss how they could applied to digital businesses..................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital business is a trendy concept in their organisation can use the technology for
generating the value for business model and also beneficial for the internal and external
operations. Because of adopting the digital technology by the companies helps in boosting the
operations and profits. This also spiral the activities of business and processes to offers the
leverage opportunities in a strategic manner. Digital business also helps in developing the
organisation that can speed up into the new market and also reach the customers conveniently
that explore the brand image and gaining competitive advantage within marketplace. At the same
time execution of digitalisation also creates disruption(Kane and et. al., 2015).
This project study is revolving around the some case study that are ASOS, Brichbox,
Very, Sakesfaith Avenue. It includes the trends, advantage and drawbacks related to managing
virtual business management. Further it includes the comparison and contrast between situation
analysis and SWOT analysis. Further it includes the explanation different digital models of the
digital business that involves the information related to security and ethics. At last it involves the
comparison and contrast between digital business and e-commerce business with effective use of
application based on e-commerce principles on digital business.
Question 1: LO1
Critically discuss key trends, advantage and disadvantage of managing virtual business in global
environment
Virtual business
It refers to that type of business organisation which carries most of their their businesses
operations and transactions via the use of internet. This type of business can exist without the
main office building as it is operated through internet and digital apps. Virtual business is one of
the major feature of doing the global business and to sustain longer time within international
market. It have several key trends to managing this within the global environment that are as
follows:
 Internet- It is one of the key trend or the essential aspect for managing and operating the
virtual businesses. As it provides resources to the organisation in an effective way and
also helps in communicating and transacting the activities very frequently. This is the
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essential key trend of virtual business without it organisation cannot survive and operates
within global market(Scuotto and et. al., 2017).
 Technology- It is an another key trend of virtual business that influences the functions of
management and operations in an effective way within working environment. Adopting
advanced technology is the key trend within virtual business because it is the platform to
sustain within the business industry. The major importance of technology in virtual
business is that it helps in enhancing the scale and size within current marketplace.
 Mobile Communication- Another key trend of virtual business is using the mobile
communication applications rather than email and fax in transforming the ideas and
financial resources. As it refers to a more convenient source that become a trend within
virtual business. By using this medium information and data is to be delivered to the
needy people on frequent basis. This helps the firms to take the decisions related to
organisation operations and management in a rapid form(Kane and et. al., 2015).
Advantage of managing Virtual business in global environment
 Flexibility- The main advantage of doing virtual business is that it is flexible in nature as
compare to the conventional type of business. It is best benefit of managing virtual
business in global environment as it also very dynamic and presenting flexibility within
organisation helps in sustaining within global market.
 Brick and motor cost saving- It is another advantage of managing virtual business in
global environment because in this organisation cannot maintain their brick and motor
style stores as their operate their business using digital technology via internet.
Disadvantage of managing Virtual business in global environment
 Lack of staff monitoring- The working staff of the virtual business cannot be monitored
on specified period of time due to this company may face the issue of lack of descipline
and healthy culture within employees. For example- Company like ASOS face this issue
in doing virtual business as they cannot monitored their staff member because this can be
done on global basis.
 Absence of Unity- The major disadvantage of virtual business is that there is lack of
connectivity within business enterprise because in this employees are doing their job on
global environment. For example- Within ASOS, the connectivity of employees are not
good due to this trust issues may developed between them and it will affect the profits.
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Discuss importance of technology and its impact on businesses such as ASOS, Birchbox,
SaksFifthAvenue or Very etc.
Technology plays an essential role within the business enterprise and it is also the
prominent component for the long lives of the corporates. This helps in doing the various
operations of the organisation in an effective and efficient way with the recognition of supply
chain and logistic management, Informations technology tools, communication techniques and
many more. It is to be evaluated that the global business can be represented as a emergence of
using technology. The impact of technology on business like ASOS, Brichbox, Very,
SakesFifthAvenue is majorly displayed and evolved within the marketplace. As these
organisations can generate high benefits from using technology by doing personalisation that
helps in attracting the large base of customers and delivery the products and services towards
them. With the effectiveness of technology these companies can gained the loyal customers and
get the experiences employees so that they will be survive for a longer period of time. Due to this
the ratio of retention of employees and customers are more within company and it also helps in
personalisation the business in global marketplace that will helps in gaining the competitive
advantage(Kraus and et. al., 2018).
Question 2: LO4
Compare and contrast situation and SWOT analysis. Perform situation analysis for any one
business focussing on personalisation
Comparison situation and SWOT analysis
Basis SWOT Situational analysis
Meaning It defines as an analytical term
helps the company to examine
their strength, weaknesses,
opportunities and threats.
It refers to that analysis in
which organisation can
identify the situation within
market by using internal and
external factors such as swot
and pestle.
Nature SWOT is a narrow concept
that is adopted by every type
of businesses in an effective
Situational analysis is a wide
concept that is difficult to
adopts by small company as it
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way without including much
cost and it is also controllable
aspects.
is followed by large
organisation. It is also a
uncontrollable factor and
changes can be occur very
dynamically in this.
Example ASOS that is a leading
company in UK analyse their
internal capabilities and
external uncertainties that can
can using swot model in which
they can effectively examine
the positive and negative
aspects that affect profits.
In context of ASOS manager
can focus on several factors
that will affect the operations
of business in which they can
adopts the use of PESTLE
analysis(Luz Martín‐Peña,
Díaz‐Garrido and Sánchez‐
López, 2018).
Similarities between situation and SWOT analysis
The major similarities between situation and SWOT analysis is that both models are very
helpful to overcome the threats and weaknesses and capturing the opportunities by identifying
the several factors such as political, social, technological, environmental etc.
Situational analysis of ASOS By using PEST analysis
This can be done by using PEST analysis on the ASOS company based on
personalisation that can be shown below:
 Political- This factor is based on government aspect in which ASOS deals in varieties of
products and attracts the customers with personalisation. In this political condition is
stable due to which delivering goods create more opportunity to get revenues.
 Social- In this factor ASOS can attracts the customers as per the taste and preference and
in this personalisation is very effective because it helps in understanding the needs of
customers in appropriate way so delivering offerings to them is earning higher
profits(Zhang, Lichtenstein and Gander, 2015).
 Environmental- With ASOS,manager can focus on their cross selling and up selling
their products and services by browsing their websites that does not harm the
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environment and also attracts the potential customers and become loyal towards the
company.
 Technological- To attracts the large base of customers ASOS can use the personalisation
by using the social media so that they can make strong connections with customers and
effectively understand their needs so that offering varieties of goods as per their
requirements helps in gaining higher profits(Libert, Beck and Wind, 2016).
Question 3: LO2
Critically evaluate emerging digital business models and challenges associated with information
security threats and ethics in general
Emerging digital business model
In present business time it is to evaluates that digitalisation plays a significant role in the
every activities and part of the life. In this digital business place an essential aspects within
terms of commercial scenario. It involves the several emerging business model and challenges
that helps in growth and success of the organisation. Some of them can be explain below:
 Subscription model- In this model of emerging digital business model company can
focus on offerings their resources with full subscription. Within this subscription model
amount of money is divided into the new offerings that can be billed on periodic basis.
The main purpose of enter into the digital business model is to retain and attracts the
large base of customers so that company will sustain for a longer period of time. Due to
the use of digital business model benefit related to the purchase of customers can be
redeem effectively by the customers that helps in expanding the business in an effective
and efficient way. The example of this business model is that companies who adopts the
use of this digital model in their offerings that are Netflix, Amazon etc. who offers the
subscription to the user so that they can enjoy the benefits(Leischnig, Woelfl and Ivens,
2016).
 Access over ownership model- This digital business model is based on the letting. In
this model organisation can earn revenues with the power of the sharing economy that
means doing business in international market by sharing the economy of that country
helps in generating high profits and revenues. The best example of this digital business
model is car sharing in which the access of vehicle to other person due to distance against
the fixed charge. The other examples of this model is based are AirBnB, mobility etc.
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Information security threats and ethics
It defines as an encompassing terms that includes all the activities which is needed to be
secure that will disclose the ethical use within the industry. For example- companies like ASOS
can focus on following the IT security that shows the business ethics in terms of using
technology. In this company can secure their online accounts and websites with a set of password
so that no other company can copy the information of business for their use(Kazan, Tan and Lim,
2015)
Challenges for informational security threats and ethics in general
The model based on digital business is offering the fruitful results to the company, as
they encouraging the use of information security, threats and ethical issues. The major challenge
that is face under the informational security threats and ethics are virus attack, identity
thefts,extorted information, hacking and malpractices and many other. In this ethical issues are
based on transparency, trust, fairness, security, accuracy etc. if digital businesses cannot focus on
this issues effectively than they cannot survive for a long period of time in their future context. In
business information security challenges related to security attacks, government legislation,
immature information security market etc. all this affect the operations and sustainability of the
business to become stable firms need to focus on security so that challenges can be overcome
and operations and activities can be performed effectively(Kaplan and et. al., 2015).
Apply Critical analysis of emerging digital business model and challenges associated with it
It is to be critically evaluated that the business models have popularly enhancing the
economy of the country. Business models such as subscription model, access over ownership
model etc. helps in enhancing the profits by the business within the global environment. This
also helps in communicating and converting the strategies into a successful results. Within the
firm will face the major challenge like hacking, virus attack and many more that are linked to the
business models and affect the operations and profitability within the ethics plays an essential
role to developing the transparency, privacy wherever needed so that targets can be achieved
effectively and efficiently.
Question 4: LO3
Critically evaluate importance of new collaborative relationships and strategic alliances through
digital technology for implementing personalisation
New collaborative relationship
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It refers to that relationship in which two or more than two people are working together
for attaining the common goal. This shows effective when it is done with different perspective
people who contains different point of view. For example- ASOS can do their business on global
level and in this collaboration is more important to gain high success for this company involves
personalisation factor by using digital mediums like social media, e-mails etc(Morabito, 2016).
Strategic alliance
It refers to that concept in which arrangement between two organisations can be done in
which they take benefits but retaining their independence while involving in the project. For
example- ASOS company done their alliance withnew look for getting the success under FWI
i.e. fashion with integrity in which both are working together but without spoiling their
independence. In this management can adopts the use of personalisation to making strong
connections so that both companies feel free to do as per their working culture.
Importance of new collaborative relationship and strategic alliance through digital
technology for implementing personalisation
The major importance of strategic alliance is that it helps in gaining high customer base
and also gaining the skills related to competitors in this collaborative relationship also place an
essential role as it can develops the healthy relationship between the two companies so that task
related to gaining profits can be achieved on time. In context of ASOS, company use digital
technology in doing the business and they can make the collaborative relationship with the other
fashion company so that they offers the customers varieties of range of products. In this manager
of the company focus on implementing the personalisation in selling their products and services
wi9thin this it is very essential to have an effective strategic alliance and collaborative
relationship between the team members in all over the world so that selling offerings would be
effective and company can get higher success and growth(Dellermann, Fliaster and Kolloch,
2017).
The recent example of strategic alliance is new look and ASOS for enhancing the sales
and revenues by attracting the customers and beating the competition within marketplace. In this
collaborative relationship playing a significant role without it no strategy is successful. As they
do their business based on personalisation and in this collaboration relationship is more
important to get revenues and insubstantiality.
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Question 5: LO5
Compare and contrast digital business and e-commerce. What are E-Commerce principles and
discuss how they could applied to digital businesses
Digital business
It refers to technology which creates the new value to the business model, customer
experience and internal capabilities that can helps the basic operations of the company. This term
is helpful for both that is only-digital brand or the traditional players(Leischnig and et. al., 2017).
E-commerce
it refers to the buying and selling of goods and services or transferring funds and
information by using electronic network. This term is useful in every type of business that are
business to business, business to customer etc.
Comparison between digital business and e-commerce
Basis Digital business E-commerce
Approach The approach of digital
business is based on the
ambiverted nature. And it
requires the website, ERP etc.
The approach of e-commerce
is extroverted in which all type
of businesses are involves like
business to business and
business to customers.
Concept It refers to the trading of
business over internet using
several blogs and websites.
It refers to that in which
business organisation may run
using internet by using
websites, CRM,ERP etc.
Similarities between digital business and e-commerce
The major similarities between these two is that both work with the use of internet
without it e-commerce and digital business cannot operate and do their transactions. Both these
terms helps in developing the connections with the different stakeholders by using internet and
several websites. In e-commerce and digital business there is no need of face to face
communication with the clients at the specific point of time. Both helps in developing the
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relationship with partners and foster the success and growth of the business enterprise(Urbach
and Röglinger, 2019).
Outline e-commerce principles and potential application to digital business
There are several principles of e-commerce and potential application that can be shown
below:
 User friendly- It is an essential that e-commerce app and sites can be easily available and
navigated by the users by looking onto the several categories of goods. In this if interface
is of user-friendly than it is helpful to generate the sales. Digital business and e-
commerce is very tempting term in today's environment as it attract6s the attention of the
customers on the brand. This is also very helpful in smooth running of the business.
 Emphasis on security- It is one of the appropriate principle for the e-commerce as it
helps the users to do their online purchase by including online payments. It includes the
third party confidential information in which company focus on securing the rights of
payments and checkout so that loyal customers are developed. This principle is also
applicable to digital business as in this threats like hacking, virus attack can occur and for
saving them from this issues businesses any focus on security(Christensen, 2015).
CONCLUSION
From the above report it is to be concluded that use of technology and digital business
model is very effective in terms of doing virtual business as it helps in done the operations within
effective manner. It also includes the several trends, pros and cons of virtual business so that
effective outcome can be shown out by capturing the appropriate opportunities by analysing the
trends and benefits. As the establishment of virtual business enhance the productivity of the
business by generating higher profits in global market. Further the digital business and e-
commerce with their comparison and similarities helps in understanding the digital technology.
In this situational analysis and swot analysis also helpful for analysing the global environment so
dealing can be effective. At last it inculcates the multiple principles of e-commerce that helps in
securing the resources and activities.
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REFERENCES
Books and Journals
Christensen, J., 2015. Digital Business: in The Digital Age. BoD–Books on Demand.
Dellermann, D., Fliaster, A. and Kolloch, M., 2017. Innovation risk in digital business models:
the German energy sector. Journal of Business Strategy.
Kane, G.C. and et. al., 2015. Is your business ready for a digital future?. MIT Sloan management
review. 56(4). p.37.
Kane, G.C. and et. al., 2015. Strategy, not technology, drives digital transformation. MIT Sloan
Management Review and Deloitte University Press. 14(1-25).
Kaplan, J.M., Bailey, T., O'Halloran, D., Marcus, A. and Rezek, C., 2015. Beyond cybersecurity:
protecting your digital business. John Wiley & Sons.
Kazan, E., Tan, C.W. and Lim, E.T., 2015. Value Creation in Cryptocurrency Networks:
Towards A Taxonomy of Digital Business Models for Bitcoin Companies. In PACIS (p.
34).
Kraus, S., and et. al., 2018. Digital entrepreneurship: a research agenda on new business models
for the twenty-first century. International Journal of Entrepreneurial Behavior &
Research.
Leischnig, A. and et. al., 2017. From digital business strategy to market performance: insights
into key concepts and processes.
Leischnig, A., Woelfl, S. and Ivens, B., 2016. When does digital business strategy matter to
market performance?.
Libert, B., Beck, M. and Wind, J., 2016. The network imperative: How to survive and grow in
the age of digital business models. Harvard Business Review Press.
Luz Martín‐Peña, M., Díaz‐Garrido, E. and Sánchez‐López, J.M., 2018. The digitalization and
servitization of manufacturing: A review on digital business models. Strategic
Change. 27(2). pp.91-99.
Morabito, V., 2016. The Future of Digital Business Innovation. Schweiz: Springer International
Publishing.
Scuotto, V. and et. al., 2017. Shifting intra‐and inter‐organizational innovation processes towards
digital business: an empirical analysis of SMEs. Creativity and Innovation
Management. 26(3). pp.247-255.
Urbach, N. and Röglinger, M., 2019. Introduction to digitalization cases: how organizations
rethink their business for the digital age. In Digitalization Cases (pp. 1-12). Springer,
Cham.
Zhang, J.J., Lichtenstein, Y. and Gander, J., 2015. Designing scalable digital business models.
In Business models and modelling. Emerald Group Publishing Limited.
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