Importance of Managing Virtual Business in a Global Environment

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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