Business Organisations: A Comparative Case Study of eBay and Hertz

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REPORT ON BUSINESS ORGANISATIONS
A CASE STUDY OF EBAY AND HERTZ

Table of Contents
INTRODUCTION............................................................................................................................. 3
eBay Inc......................................................................................................................................... 4
The advantages and disadvantages of the online business:..........................................................6
The Hertz Corporation...................................................................................................................7
The advantages and disadvantages of the subsidiary business:....................................................9
DIFFERENCE BETWEEN EBAY AND HERTZ....................................................................................10
CONCLUSION............................................................................................................................... 11
REFERENCES.................................................................................................................................12

Table of figures
Figure 1: eBay logo........................................................................................................................ 5
Figure 2: The Hertz Corporation logo.............................................................................................8

INTRODUCTION
Business organisations are the entities that carry out a transaction of goods and services in
return of monetary value and needs resources such as labour, funds, assets, etc. (Carroll et al.,
2017). In this report, the two types of business organisations i.e. online business and franchise
are discussed in detail taking an example from each and presenting the details of the
organisations. The examples taken are eBay and Hertz. Through this report, detailed knowledge
of the working of business organisations will be provided along with the benefits and
drawbacks of each organization is also evaluated.

eBay Inc.
Background details:
eBay Inc. was founded as a side hobby by Pierre Omidyar and became successful from the year
1996. It is an American multinational corporation that is an e-commerce business founded in
the year 1995, originally called AuctionWeb and later renamed as eBay. The corporation
promotes both consumer-to-consumer sales as well as business-to-consumers sales. The
company is headquatered in San Hose, California, U.S. and is a global business. The company
manages eBay website which facilitates both consumers and buyers to purchase and sales
goods and services. The access to the website is free to the buyers but the sellers are charged
additional fees after some free-entry (eBay, 2019).
Mission and vision:
The mission of the eBay is to provide an online platform to everyone around the globe where
anyone can sell and buy anything from the other and the economic transactions can be barrier-
free. The vision is to become the world's favourite place to buy and sell goods and to provide a
commerce platform that is enabled by people and is well-equipped with the latest technology
and can be accessed by all (eBay, 2019).
Figure 1: eBay logo
Source: (eBay, 2019)
Legal structure:

eBay is an incorporated company under the Company's Act of America. The company was
registered on March 13, 1998. It's the market place is the online website named
www.ebay.com and StubHub and other local classified online channels.
Key stakeholders:
The key stakeholders of the eBay business include consumers, entrepreneurs, sellers,
environment and the shareholders of the company. The company follows CSR strategies in
order to benefit its stakeholders and to run the business effectively (eBay, 2019).

The advantages and disadvantages of online business:
Advantages:
 The products are easily reachable to the customers from all over the world through
online platform (Lendle et al., 2016).
 The operational cost and the cost of advertisement and promotion are far lesser than
normal businesses.
 There are varieties of choices available for the customers and customers feel ease at
shopping and the shopping is hassle-free and comfortable (Wakeling, 2019).
Disadvantages:
 Some people still like window-shopping and can trust the product only after touching
and testing it (Wakeling, 2019).
 The cost of shipping the product and other additional charges can sometimes increase
the cost of the products.
 There is a lesser cost margin available for online sellers as the prices are easily
comparable and also there are a lot of trust issues during online shopping (Wakeling,
2019).


The Hertz Corporation
Background details:
The Hertz Corporation is the branch or the child company of Hertz Global Holdings Inc. which is
an American car rental and leases multinational company operating in around 150 countries. It
is the world’s largest car rental and lease company holding around a fleet of 550,000 vehicles.
The Hertz Corporation has Dollar and Thrifty Automative Group that also segregate into Dollar
rent a car and Thrifty car rental (The Hertz Corporation, 2019).
Mission and vision:
The mission of the Hertz Corporation is to provide customer friendly car rental experience and
the best experience on the car rental and lease on any journey that the customers are taking.
The main objective is to remain customer focused and to provide satisfaction to the customers.
The vision of the company is to become the first choice of customers when it comes to car
rentals (The Hertz Corporation, 2019).
Figure 2: The Hertz Corporation logo
Source: (The Hertz Corporation, 2019)
Legal structure:
The Hertz Corporation is a Public Company incorporated in 1967. It has around 26,700
employees and is registered in the stock market of America in New York. It is a subsidiary
company with limited liabilities shareholders and international presence (The Hertz
Corporation, 2019).

Key stakeholders:
The key stakeholders of the company are the consumers, shareholders, car dealers and its
shareholders. The vision of the company also focuses on providing a positive response to the
stakeholders and to maintain sustainable development strategies (The Hertz Corporation,
2019).

The advantages and disadvantages of the subsidiary business:
Advantages:
 The profits and losses of the company can be offset by the parent company (Baer, 2019).
 The parent company can provide funds and other resources for future growth and
development.
 The main company also allows the subsidiary company buying power, technical resources
and skilled and capable employees to take the business further (Baer, 2019).
Disadvantages:
 The main issue is the loss of control as the subsidiary company is partially-owned by the
parent company (Baer, 2019).
 There are also delays in decision-making and other such important issues because the
ideas are needed to be passed through the chains of bureaucracy in the parent
company.
 There is also limited management freedom given to the management team of the
subsidiary branch (Baer, 2019).


DIFFERENCE BETWEEN EBAY AND HERTZ
eBay Hertz
It is an e-commerce business that provides
an online platform for buyers and sellers to
carry their transactions (Jill and Bong,
2018).
It is the subsidiary company of Hertz Global
Holdings Inc. and is the largest car rental
company in the world.
The mission of the company is to provide a
platform for all the buyers and sellers
globally.
The mission of the company is to provide the
best car rental experiences to the customers
(The Hertz Corporation, 2019).
It is owned and managed separately. It is owned and managed by the parent
company.

CONCLUSION
Through this report, it can be concluded that different business organisations have different
objectives and mission and the aim of the orgnisations is to grow and provide quality services to
the customers to enhance customer loyalty. Through this report, the difference between online
business and franchise is discussed and how all the business organisations have their own
strengths and weaknesses.