Electronic Business

Running Head: ELECTRONIC BUSINESS 1
Electronic Business
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ELECTRONIC BUSINESS
2
1. Illustrate to crafty crafts three potential impacts that theft of intellectual property due to
employees moving to competitors, can cause for an e commerce business. (12 marks)
An employee from crafty crafts joining a competitor business may result to an intellectual
property theft. The impacts that are caused by this move include revealing the secret of crafty
craft to the competitor. This happen when a former employee steals or share strategic plans and
other critical data of crafty craft thus posing competition scenario. Some companies tend to hire
employees from competing firm in order to benefit from ideas that an employee bring from
former business. Most businesses that engage in online businesses that aims at promoting their
business end up closing down because of unfair competition that is resulted from employee
movement. Another impact is trademark theft, which happens when the former employee of
crafty craft uses trademarks or symbols that cause product confusion. Sales reductions occur
when consumer come across items from a different company with similar trademark making it
difficult for consumers to identify the right product. Some consumers may even find it difficult
to differentiate between the right products from counterfeit. Third, copyright theft is another
impact which is mainly experienced by business that participates in online services. A former
employee of crafty crafts uses a similar website codes to come up with website to advertise
products online. Also a former employee can develop similar item with similar design of crafty
crafts hence confusing the customers in finding the real manufacture of a product (Shackelford,
S. 2016).

ELECTRONIC BUSINESS
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2. For each of the three potential impacts identified in Q A. 1 above, explain one example of how
to minimize or negate the potential impact. (12 marks)
Intellectual property theft poses challenges to crafty craft among other businesses
progress. In order to protect the company copyright, the management must adopt the copyright
laws which ensure the business property and assets are secure. It grants the business control over
their intellectual property furthermore the law is recognized in law courts. The employee is not
allowed to share product methodology that he or she developed while still working for the crafty
craft. Every employee has to sign this law which ensures the business own any item invented by
the employee while he or she works for the company. The uniform trade secrets act plus
employee taking an oath to ensure the business secrets are safeguarded whenever an employee
moves to a competitor business. The law also ensures standards of commercial ethics are
maintained. Other measures include immediate termination access rights by departing employee
and securing all computers and other storage devices. To protect crafty craft form trademark
theft, it’s necessary for the business to register any trademark to governing authorities.
Documenting all working terms with an employee will protect the company trademark from
being used by a former employee. Also seeking a computer expert to evaluate and effectively
deleting all sensitive data from electric storage devices allocated to a former employee to ensure
the employee doesn’t carry any company information and share with a competitor (Shaw &
Stock, 2011).

ELECTRONIC BUSINESS
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3. Identify and evaluate examples of the following three analytical opportunities for crafty
crafts online store. Include in your discussion the impact for e business.
(a) Demographic profiling (4 marks)
Demographic profiling is a mechanism of implementing e-business to enhance efficiency in
conducting product advertisement and promotion. The idea is to focus on analyzing and
identifying market gaps for the crafty craft to come up with the best products (Mair, J. 2010).
While advertising the craft materials, the marketing department of crafty craft has to identify
consumers’ preference profile. It essential for the business to get data on customers’ financial
positions, age groups, race, and test of preference will ensure the company develops a
comprehensive product that suits market demand.
It is necessary for the crafty craft management to identify locations or regions that most
consumers are situated to maximize on market availability (Rossmo, D. 2012). Obtaining such a
geographical profile will assist the business to find the best way to serve customers or even
developing a business branch in the region. Having the best knowledge of market demand will
ensure crafty craft develop products satisfies all the customers regardless of their socioeconomic
status. Spending more time interacting with consumers and gathering their view will help crafty
craft remain so competitive.
(b) Spend by category (individual and total) (3 marks)
Spend category is a business procedural act of grouping similar services or items expenditure
defined at the organization level (Limberakis, C. 2012). While crafty crafts are implementing
online service to advertise and sell products, it has to cover hardware and software expenditure to