Analysis of eBay's Business Growth and Online Venture Strategies

This report analyzes eBay's business structure, growth, and the challenges it faces, proposing a new online venture, Bit Mono, for the e-commerce industry in the UK. The report utilizes PESTLE analysis to examine external factors impacting online businesses, including political, economic, social, technological, legal, and environmental considerations. It evaluates the strengths and weaknesses of legal frameworks such as GDPR, consumer rights, and data protection. The report identifies three key business sectors for Bit Mono: clothing, electronics, and home goods, emphasizing the importance of HR policies. The study provides a comprehensive overview of the e-commerce landscape, offering strategic insights for business development and growth within the competitive UK market, with a focus on adapting to evolving consumer trends and technological advancements.

Structure of Business

Table of Contents
INTRODUCTION ..........................................................................................................................1
Question 1 ..................................................................................................................................1
Question 2...................................................................................................................................3
Question 3...................................................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Business structure is a category of an organisation which is legally recognised in a given
jurisdiction and describes the legal status of firm. There are several types of business structure
i.e. sole proprietorship, partnership, corporation and many more and each of them is differ form
each other in terms of purpose, size, scope (Aslani and Mohaghar, 2013). However, business
structure is considered as one of the essential element in choosing structure for company before
starting trading and different option vary in set up costs as well as in the way business runs or
operates. In present scenario of UK, there is high level of competition among companies
regarding technologies, services which impact directly on their productivity or profitability
ratio. Thus, innovative technologies and online services enable an organisation to attain high
customer satisfaction as well as can gain competitive advantage in an effective manner.
Furthermore, every business is influenced by two factors i.e. internal and external in which some
are under control at the same time few are beyond management control that effective business
operation and functions. This report is based on case study of eBay 's business growth and the
challenges faced by them. So based on eBay study, develop a new online venture and mention
its role on UK economy. Along with this, evaluate the external factors that affect online business,
identify strength and weakness of legal framework. Finally, determine three business sector of
company and importance of HR policies on business operation.
Question 1
For this report, Bit Mono is a new online entrepreneurial venture which deals into e-
commerce industry and serve as a platform for online auction and shopping website where
enormous people and business buy and sell variety of goods and services worldwide. Although,
online business drives to economic growth and development, yet it undergoes with various
external pressure which impact their business decisions as well as their operation. However, to
identify the current and emerging future trend as well as develop best strategy in order to attain
high productivity and profitability ratio, the best element is PESTLE analysis (Clauss, 2017).
This analysis is a strategic management tool which is used to identify, analyse, organise,
monitor all key external factor that has direct impact on an organisation. Moreover, PESTLE
analysis enable the company to get prepare for possible threat as well allows them to acquire all

business platforms for enhancing proficiency and efficiency. Therefore, Bit Mono applies
PESTLE analysis for analysing its threat and opportunities which is described below:
Political factor: It consist government policy, political stability, trade or tax policy and
many more which affect business function and its growth. Furthermore, government makes
various regulations and measures which should be considered while establishing online business
into marketplace. For e.g. there is high political pressure on online business Ebay, as government
increase trade protectionism measures like data privacy, tax issues etc. which influence its
productivity and profitability. Thus, in this case Bit Mono maintains or keep its data very secure
and safe and be very careful in providing the information to customers or clients which enable
them to attain high productivity (Cunningham, Sinclair and Schulte, 2014).
Economic factor: It is related with growth rates, inflation, deflation rate, taxation, interest
rate, unemployment rate etc. which impact e-commerce industry productivity. This factor is
very essential for online business as they have to deal with economic stability in order to achieve
their goal effectively. For e.g. recently UK hit by huge recession which generate fluctuation in
eBay foreign currency exchange rates and it impact its proficiency. Therefore, this factor should
deal very carefully and creatively while opening a online business in order to enlarge its business
operation.
Social factor: This comprises social aspects, attitudes, trends, ethics etc. that influence
online business proficiency and target market. It is directly influence the organisation decision
making because customers trends or requirements is dynamic in nature i.e. it keeps on changing.
For e.g. Ebay undergoes with pressure as they were rising online activity for trading goods or
services and for auction which effective is sales growth. Thus, while introducing new online
firm, they should create attractive business function in order to attract more consumers and
merchants to their marketplace websites which add value to Bit Mono's brand image among
industry.
Technological factor: It involves innovative or updated technologies which effect the
business operation or function as well as its potentiality in sustain within industry for longer
period of time. This technologies analysis effect e-commerce industry in developing a plan to
scale growth as well as in ensuring cost effective production level. For e.g. increase in mobile
device usage threatens eBay by opening the global market to more players within marketplace
and it influence its productivity. However, for new online business they should be updated with

current and emerging trend of market and exploit mobile environment by developing mobile
apps functionality to retain more customers and vendors in online marketplace platform.
Legal factor: This is related with current and future legal and regulatory requirements like
consumer protection law, health and safety, labour law etc. that impact online firm decision
making and its efficiency in growth. This factor is very sensitive as it generate huge problem in
case of failures in following government laws and legislation as well as it directly impact firm
brand image. For e.g. due to rising in e-commerce regulation regarding service providing to
clients or merchants which impact eBay business operation or function. Therefore, Bit Mono
considers this factor very diligently and follows all regulation which is imposed by government
and provide best quality of product and service in order to gain competitive advantage.
Environmental factor: It contains environmental forces, eco friendly products which
impact organisation's goal or objective in an impressive or productive way. Furthermore,
growing awareness of potential impact of climate change affects online business profitability
ratio (Dobbie, and Song, 2015) For e.g. increase in trend of environmental conservation
impacted eBay efficiency and sales growth. Therefore, while introducing new online business in
marketplace they should be aware regarding vendors or clients interest and introduce
environmental products in order to satisfy customer demand as well as to enlarge profit margin
within competitive industry.
Therefore, PESTLE analysis is considered as an integral part for every new online
business so that they can examine its external forces or factors and take corrective course of
action in order to attain high level of productivity and profitability ratio.
Question 2
Strength and Weakness of legal framework
Legal framework is a set of rules, procedural steps, rights and obligation of companies,
government and citizen that is set forth in an system of legal documents which help online
business to obtain maximisation of profit with an optimum utilisation of resources. Along with
this, legal framework is an important factor because it help online firm to identify and define
national competent authority as well as the roles of governmental agencies in particular statistical
domains. This also governs the relationship between members of national statistical system and
data reporters for provision of data which help them to reduce less intervention of government in
business operation and function. Some of various legal framework which new online business

should consider to add value to customers as well as enlarge company's profitability is described
below:
GDPR framework: It is a privacy compliance framework that provides a structure for
managing personal data which an online organisation can imply to comply with GDPR ( General
Data Protection Regulations). Moreover, companies which have not developed their own privacy
compliance framework they also can use a standardised structure to ease their path to GDPR
compliance (Fozer and et. al., 2017). Meanwhile, there are three key areas of privacy compliance
framework which allow online organisation to accomplish their task within prescribed time limit
in an effective way i.e. accountability, compliance with data protection principles and
management system. Although, it is regarded as productive element but still it has it own
strength and weakness which impact online e-commerce industry and that is given below:
Strength Weakness
 GDPR reshapes the way in which
sectors manage or maintain data as well
as redefines the roles for key leaders in
online business from CIOs to CMOs.
Along with this, it ensures CIOs that
they have consent management system
as well as it enable them to keep the
valuable data safe and secure.
 It improves cybersecurity and enable
online firm to protect data along with
other policy as well as help them in
maintaining the risks of any potential
data breach.
 The main drawback of GDPR
compliance is the cost to reach it i.e. it
is very expensive to follow in business
operation or function.
 There is an over-regulation issue in
GDPR which hampers the innovation
within an industry (Jain and Goel,
2012).
Consumer Right framework:
It is a state or federal law which is designed to protect consumers against improperly
described, damaged, faulty and dangerous goods or services as well as from unfair trade and
credit practices. It covers areas like eradicating pollution, fair trade practices and many more in
order to bring high level of customer satisfaction as well as to enlarge online business

productivity and proficiency in an impressive or productive way. Apart from this, it also contains
various pros and cons which influence online company's decision making capability are as
follows:
Strength Weakness
 It is an ethical liability of firm to
provide the interest of customers as
well as it allow marketers to deliver
accurate quality and amount of
commodities at reasonable prices to
customer which add value to Bit Mono
's brand image and reputation (Zin and
Ismail, 2012).
 It is regarded as one of the essential law
on society to protect consumer rights
and interest. But, it becomes harmful if
any buyer compliant a false statements
against any producers or marketers to
gain self interest or earn extra money
intentionally.
Data Protection framework
It is designed to protect personal information and it applies to online organisation not just
commercial ones (Kolios and Read, 2013). If a firm collect personal information of anyone,
either internally as an organisation, then online firm is obliged to register with Information
Commissioners Office and comply with Data Protection Act. Some of the strength and weakness
of data protection framework are as follows:
Strength Weakness
 It requires better management and
storage of information, this practice
leads to better business practices as
well as prevent online business from
unnecessary fines and legal issues.
 IN order to run this function within
online company then it requires skilled
or talented workforce which charge
huge cost and it directly effects
business productivity and profitability
ratio.
Question 3
In every organisation, there are various types of business sector and each of them
contributes differently to economic growth and development. Along with this, they provide

enormous employment opportunities which enable country's economy to control over poverty
and improves the lifestyle of community or society. However, for Bit Mono, they identified three
business sector after analysing the current and emerging trend of e-commerce industry which are
as follows:
Clothing: This sector encompasses the types of trade and industry along the production
and life chain of clothing and garments, that is starting with textile industry to fashion retailers
who are regarded as integral element for economic growth and enhancement. Currently, in UK
one of most employment providing platform is clothing or textile sector which leads to huge
enhancement in economy condition as well as improves economies of scale of UK. Along with
this, most of the increase came from online retail as it provide various platforms for clothing
designers to more creative and impressive because customers demand or need keeps on
changing (Mayer, 2012). By this, online business i.e. Bit Mono can analyse the demand or
interest and trend among community or society and based on that they can introduce it into
marketplace to gain competitive advantage.
Electronics: This sector produces electronic equipments for industries and consumer
electronics products such as mobile devices, television, and circuit boards. Industries within
electronics involves telecommunication, equipments, electronic component, industries
electronics and consumer electronics. Apart from this, it is regarded as greatly accelerated and
growth sector because it is one necessities of every individual which gives a platform for
electronics business to explore its sales growth (Yassi and et. al., 2013). Moreover, these
industries are growing rapidly as a result of increasing demand from emerging market
economies. Along with this, it enable the UK economy to invest more in foreign production as
well as it provide enlargement in IT, telecommunication industries which enhance UK GDP rate
and economies of scale.
Home décor: It covers home appliances like curtains, sofa set, cushions, tablecloth and
decorative craft products and so on. These items are commonly used in indoor furnishing and
layout and can include cloth items, paintings and plants. This sector is regarded as substantial
industry within UK as it generate enormous job opportunities to common man also which leads
UK economy to enlarge its growth and development. As UK is one of the fastest growing
country which enable home décor sector to provide best quality of chairs to offices and corporate

culture. Moreover, online business attracts more customers towards industry which directly
impact UK economy as it enrich their growth and success.
Furthermore, HR policies are formal rules and procedures that dictate how certain matters
should be addressed within an organisation including employees duties and rights. Apart from
this, in order to avoid non compliance and penalties from government, online business should
adhere to HR policies which add value to customers, manpower as well as enhance their brand
image or reputation. There are several HR policies which enable Bit Mono to provide proper
direction or guidance to employees and advise them to follow companies laws and procedures
which helps them to generate healthy and better working culture within business premises. Some
of the HR policies and its importance within workplace are as follows:
Health and Safety Policies: It set out general approach and commitment together with the
arrangements in order to manage or remove the risks related to health, safety and welfare of
employees and build a best working condition within company. Now a days, workplace health
and safety procedures are important for well being of both employees and employers because
human loss is immeasurable and intolerable (Muenjohn and McMurray, 2018). As, such loss or
injuries employs major loss to families and also it effects online company brand image. Apart
from this, it reduce workplace stress and create safe and healthy working environment as well as
there will be high level of satisfaction among employees.
Equality and Diversity policies: It is concerned with safeguarding personnel from
inequality, harassment, discrimination on the basis of gender, age, religion, caste, creed etc. that
help online business to build a proper relationship between customer or clients in order to
accomplish organisation goal in an effective manner. It is very important because it encourages
every employees, clients to put their full contribution towards the attainment of high level of
productivity and profitability ratio. Along with this, it enable online business to adapt innovative
technologies which drives to enlargement of business growth and success (Weske, 2012).
Reflective Statement
The project undertaken by me is on Structure of Business in which it covers various
aspects like different business sectors, importance of legal framework and benefits of adhering to
HR policies in order to achieve organisational objectives in an effective manner. Along with this,
while establishing new online business within marketplace there are various external factors
which impact business decision making. For e.g. one of the major giant in online industry i.e.

eBay undergoes with various political issues which effected its productivity and proficiency.
Thus, by this analysis, I was able to identify that company should always make effective
strategies in order to gain competitive advantage. Moreover, various legal framework enable the
online business to maintain a better position as well as to provide high level of satisfaction to
customer or clients. Apart from this, HR policies is also plays vital role in achieving
organisational goal and objective in an impressive or productive way.
CONCLUSION
From the above explained report, it has been concluded that business structure is an
integral element as it guide online business to accomplish pre determined goal in an efficient
way. Along with this, PESTLE analysis enable the online organisation to identify business
opportunities as well as help them to make corrective course of action in order to gain
competitive advantage. Moreover, legal framework and HR policies allows e-commerce industry
to provide satisfaction to customer and also add value to customers, employees and improves
overall performance of company in an innovative or productive style.

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