Internet and E-business Report: Analysis of Fortnum & Mason's Strategy

This report provides a comprehensive analysis of Fortnum & Mason's e-business strategies. It begins by exploring the environment needed for e-business, including transaction types, benefits, and barriers to an online presence, as well as security and legislative issues. The report then delves into internet technologies, HTML features, and the roles of clients, servers, and search engines. Different e-business models for revenue generation are compared, along with their benefits and challenges, and future developments are considered. The report also examines key elements of website design and its impact on e-business, including usability concerns, and concludes with a summary of the findings. The report covers various modes of communication available to e-business.

INTERNET
AND
E-BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Environment needed for e-business and types of business transaction............................1
1.2 Benefits and barriers to a business considering their online presence.............................2
1.3 Security and legislative issues faced by F&M.................................................................3
1.4 Different modes of communication available to e-business.............................................4
TASK 2............................................................................................................................................4
2.1 Internet technologies and their importance......................................................................4
2.2 Main features of HTML...................................................................................................5
2.3 Functions of clients-servers and browsers along with role of search engines..................5
2.4 Use of intranets and extranets within business.................................................................6
TASK 3............................................................................................................................................6
3.1 Different e-business models to generate revenue.............................................................6
3.2 Comparing two revenue models by assessing their benefits and challenges...................7
3.3 Future developments in e-business revenue models........................................................7
TASK 4............................................................................................................................................8
4.1 Key elements of a good website design structure............................................................8
4.2 Impact of well-designed website on e-business...............................................................8
4.3 Issues concerning website usability..................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Internet and e-business is the latest concept in the field of development of business
organization and many of the venture rely on that for increase in their sales and productivity.
Electronic business is considered as the application of information and communication
technologies in order to support the business activities (Ifinedo, 2011). Further, it is also used as
a tool to provide superior customer service, streamline the business operations and increase in
sales with reduction in the cost. By taking the above topic into consideration, this present report
has been prepared on Fortnum & Mason who creates exceptional gifts hampers that ranges from
home made chocolates to different varieties of vines. Further, organization has developed into
departmental store and they focus on serving all kinds of tea, preserves, biscuits, etc. This
present report will focus on various benefits of e-business model for the cited firm which will
lead towards increase in revenue and sales.
TASK 1
1.1 Environment needed for e-business and types of business transaction
E-business shows conducting of business activities with the help of the internet. This
process involves both internal and external process like developing customer relationship,
financial and administrative system, human resource, supply of goods, etc. Further, the internet
and Information Communication Technology (ICT) plays a crucial role in order to increase the
economic growth, revenue as well as productivity (Oliveira and Martins, 2010). Mentioned
organization is dealing in many operations and now they are planning to run their operations
online too. With this effect, their presence will be known to large mass of people and they will be
able to attract customers towards their products.
For effective e-business implementation condition which will be in favor of Fortnum &
Mason (F&M) has been described down under : Retail to customers, personally: This is the easiest and simplest form of conducting
business where individual enters to the organization, buy the item and pay with either
cash, debit or credit card. Retail to customers not personally: Under this process, F&M sells their products to the
customers without having any personal interaction. Here, individual can order their
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product from the catalogue through phone or can purchase online through official website
of F&M. Business to business model: Cited firm use this sort of transaction in the virtual market
place in order to make a positive, global and worldwide network between the customers
(Ifinedo, 2011). For instance, manufactures directly contact to online organization like
ebay, amazon and these firms sells the organization product. This lead to the promotion
of both the ventures and they are able to earn good amount of revenue.
 Customer to Customer model: This in short known as C2C model where F&M focuses
on developing relation with the customers. With the development of the website, cited
firm is able to develop implement Customer Relationship Management (CRM) technique
which will help them to develop better relationship with their customers.
In addition to it, there are micro and macro environment of F&M as well. In this context,
macro environment is comprise of social, legal, economic, political, technological and
competitive factors. Contrary, micro environment includes organization itself, customers,
suppliers, competitors, intermediaries and public at large.
1.2 Benefits and barriers to a business considering their online presence
E-business is considered as most effective and attractive process because of their low
start-up costs when it is compared with the traditional brick and mortar. Further, technology been
upgraded day by day, it is essential for F&M to select the online platform in order to increase
more of the sale of their products and also to develop effective goodwill (Zott, Amit and Massa,
2011). These online source are less expensive too which is in budget of all the enterprises.
Benefits:
With the effective implementation of the e-business models, management of F&M will
be able to reduce their transaction cost. Further, they will also able to develop effective
relationship with their customers and stakeholders which will improve their efficiency in
functioning the tasks. Further, some major benefits of online business is: Worldwide existence: This is the biggest advantage with F&M that they can conduct their
operations throughout the globe and can attract audience with their effective
advertisement on commonly used websites. Further, online customers are not interested
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in the profile of business owners as they online want best of the product with better
service. Increased operations: Customers can book their favourite products of F&M 24*7 on the
official website (Safeena and Date, 2010). Further, cite is always opened and customers
can also take relative information of the existing or new product of the business venture. Sharing of Information: In addition to it, company is able to share information with
customers at any point of time with the help of online business. Further, real time
information sharing is another benefit. Cost of Operation: it is further evident that online business has low cost of operation as
compared to physical. Through this, overall profit can be increased.
Costs: Infrastructure setup: If cited firm need to expand their market at global level, then they
have to set proper IT infrastructure set-up. Moreover, if the cited firm lack with bad
hardware, software and internet service then it will act as a major barrier for F&M and
recovering it will act as a major barrier. Costly: At times it is considered as a costlier process because business venture have to
upgrade their computer system and need to recruit personnel who are masters in
computer applications.
 Economic and business barriers: In many countries, customers still like to purchase
products for cash instead of purchase the same online (Wirtz, Schilke and Ullrich, 2010).
It is because they do not have faith in the online service due to issues in the security and
privacy protection.
 Hacking: Online business are prone to hacking from which crucial customer are at risk.
This can spoil the brand image of F&M.
 Slowdown of Websites: With the rise in number of traffic on websites, it tends to slow
down from which customers get shifted.
1.3 Security and legislative issues faced by F&M
Internet is one of the best innovation which has let dream comes true for many
entrepreneurs and other business ventures. It is generally because it attracts large customer base
from whole over the globe which results in increase in sales and revenue for the enterprise. Some
security issues for the cited organization have been discussed down under;
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 Malware and viruses: E-business generally counts their web servers and computers so
that they will be able to run their business operation precisely. However, computers have
some sort of risk as they can download some of the malicious software like worms,
virus, Trojans which can affect the machine and lead to improper functioning (Andreu
and et.al., 2010). At times it also results into loss of important data and recovering them
require lot of maintenance and can cost more of the money and time. For this purpose,
antivirus and firewall of system can be activated so that harm from viruses can be
reduced.
 Wireless and mobile security: Many of the business ventures use internet connections
and mobile devices for accessing their corporate website. This lead into big security
hazard as any hacker can try to connect to wireless network and call listen to
communication which is going within the server. Organization choosing this form needs
to have a secured password so that unwanted people can be avoided. Also, company can
tie up with mediator company in order to make online transaction more safer and risk
free.
By opting these security practices, firm will be able to run e-business activities in simple,
safe and more reliable manner. If F&M need to be productive, then they have to overcome the
security threats by considering their internet as well as email policy.
1.4 Different modes of communication available to e-business
Communication plays an important role in conducting business operations and there are
various ways that can help the F&M to run their operations efficiently and in cost effective
manner (Gloor, 2012). Further, it includes email, video chat, instant messages, blogs, social
network, skype, video conferencing, etc. Email helps in sharing crucial information among
customers in real time whereas video chat aids customers in making contact with online
executives. Moreover, instant message helps in addressing the issue and grievances of customers.
social network and blog post is used for marketing purpose through which overall traffic at
website gets increased. Mentioned company can also emphasize on Electronic fund transfer and
Electronic data interchange techniques in order to receive and pay money. This will also help in
executing the business transactions with suppliers and customers in proper manner.
F&M can use VOIP which is an electronic business communication method where calls
can be done to customers at very low cost. For instance, with the help of development of website,
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cited firm will be able to provide shopping cart facility to their large customer base. This will
lead towards increase in their organizational products like gifts and different grocery items.
Further, with more clientele presence, they will be able to improve their brand image when
compared with their major competitors (Gloor, 2012).
TASK 2
2.1 Internet technologies and their importance
Fortnum & Mason can implement the internet, extranet, wireless communication, packet
switching system and electronic fund transfer to make their e-business campaign much more
successful. However, it is recommend that it must focus on IP and packet switching for the
purpose of making business functioning smoother. Same has been discussed below:
o Internet Protocol (IP): Each computer which is connected to the Internet Protocol (IP)
address this address is the prior communication language. Further, many of the internet
users are familiar with the WWW, HTTP, FTP, etc. URL is the unique address which
contains the name of the protocol, domain and path name. For eg.
https://www.fortnumandmason.com is the URL of Fortnum & Mason which is corporate
official website.
o Packet Switching: Moreover, packet switching will be much more favourable for the
cited firm to communicate message with the help of internet. Organization will be able to
send their message with the help of internet and this will help them in setting major
connection between their business partners and organization will be able to set the two
internet technologies within stipulated time frame (Bélanger and Crossler, 2011). This
will generally help business venture as millions of customers can easily log into computer
network at the same time and it will eventually help in avoiding crashing of cites.
2.2 Main features of HTML
Hyper Text Markup Language (HTML) is considered as a standard markup language
which helps in developing the web pages. Web browsers can also read the HTML files and allow
visible or audible web pages (Barnaghi and et.al., 2012). Further, this HTML has various
features that include stylish forms (create web forms more remunerative), Mutuality (for
supporting stream videos and high definition videos) and user friendly web-page (with drag-drop
feature).
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<Html>
<head>
**It shows the document head of the web-page**
<title> Fortnum & Mason </title>
** It appears in the title bars**
</head>
The document body section contains all the information about the content which are loaded
on the web-page.
<body>
**It is basic structure of the HTML language and all elements are nested within the start and
end statement**.
<font face-= " times new roman " size = "6" color=" black">
**This text is use to set the font size, type and color of the web-page**.
<imgsrc= "pic_mountain.jpg" alt=mount view" style="Width :304px; height: 228px">
**This tag is used in HTML to display the image in the form or set background image in a
proper manner**.
Fortnum & Mason creates exceptional gifts hampers that ranges from home made chocolates to
different varieties of vines. It wants to grow their retail sales with help of e-business and e-
commerce.
</font>
</body>
</html>
In addition to it, following is the feature of HTML 5:
1. Multimedia support
2. New HMTL5 Input Element Types which aids in gaining better control
3. It offers canvas area where line, box, circle, performing graphics, etc.
4. Adding valid data attributes is possible now through which information is stored without
affecting UI of web page.
5. End users can edit HTML control's content now.
6. Autofocus attribute
7. Required Field and Range Validators
2.3 Functions of clients-servers and browsers along with role of search engines
The Client server architecture is generally of two types. They are:
 Two tier architecture which involve direct communication between the clients and
servers
 Three tier architecture which includes customers, business and data layer.
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Further, the WWW server helps in maintaining the databases and services along with
sharing of information to the multiple clients simultaneously.
Role of Web browsers:
Further, the users of internet uses software's like Google chrome, Mozilla, internet
explorer, etc. in order to send information to server and vice versa. These web servers are acting
as a mediator between the clients and servers (Li, Chau and Lai, 2010). Moreover, the function
of web browser is to send and receive information, store necessary information and provide
major interaction between the clients and servers. However, the connection usually gets closed
when data is properly exchanged.
Role of search engine:
WWW contains large number of web servers and web pages. The time when internet user
type the necessary key word, he/she gets suggestion in order to fulfil their requirement. Website
registers with their specific search engines locate their server at the top list in search. With that
mentioned company will get much of the response from the clients and help them to increase
their profitability and revenue.
2.4 Use of intranets and extranets within business
Mentioned company can use the intranet in order to share the necessary details of their
gift hampers and departmental products with the help of image, categories, price, availability and
payment method for particular product (Reichardt, 2013). Apart from it, it also assists in
maintaining information of customers, business partners and different other stakeholders which
organization have. Moreover, it also provides a platform for the users where they can also give
their valuable recommendations about the product.
On the contrary side, extranet can be employed by mentioned organization in order to test
their functionality of web-page before going online. IT department checks the network service
like ordering information, giving customer support and solving clients issues in productive
manner.
TASK 3
3.1 Different e-business models to generate revenue
E-business revenue models show the techniques to increase profitability and gaining a
handsome return on investment.
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1. Cited firm can approach online retailers like Amazon and e-bay in order to maintain their
supply chain management activities so that they get a good amount of revenue
(Aderonke, 2010). This will also develop effective relationship between the management
and suppliers. Further, this model will help in generating more of the revenue and
productivity along with fulfilling the needs and demands of the customers.
2. Furthermore, e-distribution model will help in delivering the product which are ordered
online through digital form. Cited firm can use this model to sell their hampers and
departmental products which will lead to increase in their profit margin.
3. On the other side, B2C business model can also be used by the cited firm in order to have
direct interaction with the customers.
4. Subscription model: In this, F&M can add the feature of subscription on the website
where end users can able to subscribe to particular service by paying amount for every
month.
3.2 Comparing two revenue models by assessing their benefits and challenges
There is an exchange model which gives wide range of transaction services from market
valuation to the accomplishment (Bordonaba-Juste, Lucia-Palacios and Polo-Redondo, 2012).
There is a brokerage model as well which brings buyer and seller on to a common platform.
Further, B2B model plays a crucial role as it will increase the retail sale for the
mentioned company and with that, they will be able to improve their performance and also
relation with different business partners.
Further, by implementing this B2C model, firm will be able to strengthen their
relationship with different customers. Apart from their retail outlet, they want to boost up their
sales and supply chain activities (The best revenue models and funding sources for your digital
resources, 2015).
3.3 Future developments in e-business revenue models
In the future, e-business will be considered as most demanding business strategy because
they are 24*7 available and give advanced services to the customers. Further, with development
of supportive model it will assist next generation B2B and B2C e-commerce solutions. They will
give improved services to the customers along with improvement in business activities
(Srivastava and Teo, 2010). Further, the e-business is rapidly adjusted into different electronic
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portable devices like tablets, smart phones, etc. Facebook, twitter and YouTube will also play a
crucial role in giving significant benefits to mentioned business organization. Further, to get
more assistance of their target audience, mentioned company can focus on reduce pricing
strategies as with that they will be able to increase their customer base. Visualization and
outsource functions will be advantageous for the business model for executing online transaction
in fast manner (Barnes and Hunt, 2013).
Content subscription is also an option with Fortnum & Mason as with that they can
provide high quality content about their product and provide 24*7 high speed internet access to
user without any crash.
TASK 4
4.1 Key elements of a good website design structure
An effective website design structure provides facility to individuals which related with
searching of the keywords, proper link of product selection, detailed information about the
products, discount or offers which are prevailing, payment options etc. Further, the web page
need to be simple and should attract audience towards its. Visitors also wish to prefer websites
which are properly organized and which can be easily downloadable. Moreover, from the colours
point of view, it is crucial for mentioned organization to balance the light as well as dark colours.
Further, organization also keep the history of the visitors and they target them with mails
in order to know their preference and perception towards that particular product (McCole, P.,
Ramsey and Williams, 2010). Further, tracking of order also plays a crucial role and with the
help of that cited firm will be able to run their internet marketing activities in effective manner.
Following is the prototype of websites for F&M:
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Figure 1: prototype of websites
This design has been used because it shows clear cateroru of men and women from which
shopping for gift can become ease.
4.2 Impact of well-designed website on e-business
Strong architecture designs and attractive graphics of the website will help F&M to
attract large number of visitors on daily basis. Further, they can improve their ranking with the
help of search engine optimization (SEO) method (Footprints – The Training & eTracking
Solutions' Blog, 2012). Moreover, a well developed website create a positive impact in the mind
of the customers and they will purchase that product for once in order to see the quality and
efficiency. For instance, if example of Amazon can be seen than it is clearly defined that they
have made their website more lucrative and provided clear and detailed description of each and
every product (Teece, 2010). They have used smart architecture, good graphics along with
feedback options so that they can alter the product according to customer requirements. If
organization will develop user friendly website than more individual will be attracted towards
that and they will come to the web page again and again. Beside this, well design website offers
benefits in term of sound usability and accessibility. Usability refers to finding of required
product with ease on the website. Further, accessibility reflects fast navigation on the website.
This save considerable amount of time of internet users and aids in taking buying decision.
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4.3 Issues concerning website usability
Website usability can be defined as the easiness of using the website. Website developer
who are working for the business organization have to develop website from the customers point
of view. Further, there exists various issues like small click-able areas, overloaded information,
cross browser compatibility and difficulty in content to scan. Major online retailer also facing the
problem of colour blindness earlier as there are some pages where brightness were so high and
there were difficulty in reading the content.
Therefore, website of mentioned company must support all major possibilities. Children
will prefer animated images instead of looking towards the content (Sun and et.al., 2010).
Therefore, website must support multiple languages and adjust data presentations by considering
the target market preferences.
CONCLUSION
From the above report it is clearly inferred that F&M is a private firm who is looking to
expand their business operations by selling their products through online channels. Further, this
report also showcase that in order to implement e-business proper business model and IT
infrastructure is required. This report also emphasize on various problems which organization
have faced before going through online and they have to consider each and every aspect of it.
This report also explored intranet and extranet technologies, packet switching and different
content with their brief description.
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Online
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<http://www.yourtrainingprovider.com/blog_main/bid/135143/The-Impact-of-Website-
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