E-Business and Internet Technologies Report: F&M Case Study

This report provides a comprehensive analysis of e-business and the influence of internet technologies, focusing on the case study of F&M, a gift hamper provider. It explores the environment in which e-business is conducted, highlighting benefits and barriers to online presence, security, and legislative issues, along with different communication modes. The report delves into internet technologies like websites, cloud computing, and HTML, examining their importance for e-business success, and the functions of client-servers, browsers, and search engines. It further investigates various e-business revenue models, comparing their benefits and challenges, and discussing future developments. The report also covers key elements of website design, its impact, and issues concerning website utility, offering valuable insights into the digital landscape for businesses like F&M, which can be helpful for students studying the subject.

Internet and E-business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Environment in which e-business is conducted................................................................1
1.2 Benefits and barriers to a business considering its online presence.................................1
1.3 The security and legislative issues likely to be faced by the online business..................2
1.4 Different modes of communication..................................................................................3
TASK 2............................................................................................................................................4
2.1 Internet technologies and their importance in making an E-Business successful............4
2.2 Main features of HTML...................................................................................................4
2.3 The functions of clients-servers and browsers and the role of search engines and its
applicability for ‘F&M’..........................................................................................................6
2.4 Intranet and extranet.........................................................................................................6
TASK 3............................................................................................................................................7
3.1 different e-business Revenue models can be used to generate revenue for a business....7
3.2 Comparing two revenue models by assessing their benefits and challenges...................7
3.3 future developments in e-business revenue models.........................................................8
TASK 4............................................................................................................................................8
4.1 key elements of a good website design structure.............................................................8
4.2 impact of a well-designed website...................................................................................9
4.3 Issues concerning website utility....................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Internet has brought paradigm shift in the ways of communication. There has been total
transition in the way people communication to each other. This virtual platform has decreased
the boundaries between people far from each other. Increasing personal and professional
interaction between people through this virtual platform has given immense opportunity to the
business entities offering wide range of products and services in the better and feasible manner.
Report is prepared to elucidate different components of internet to process e-business in bringing
lucrative benefits to the organization. For this purpose, F & M is selected which is serving its
customers by providing exceptional gift hampers from three centuries. The report throws light on
the scope of e-business, ways in which internet influence the working of organization and
different internet models used by it to expand its venture on national and international grounds.
TASK 1
1.1 Environment in which e-business is conducted
Business conducted on internet gets influenced with number of factors.
 Company is required to abide by the legislative laws laid down by government and other
legislative bodies (Gloor, 2012).
 Key concern issues for the business entities are security issues. There are many legal
aspects that bounds organization to work under the particular framework and function. Technological environment largely influence the business operation such as with frequent
up-gradation in technology it requires that company install advance techniques and
inculcate in its operations.
E-business transaction types
 Direct transaction: In this process company get linked to the customer in the direct
process and operates the transaction methods. Adopting this method companies maintain
direct connection with the customers so it reduces time and costing. It is considered as
direct selling concept that helps to build strong relationship with targeted customers. The
company is able to receive feed backs directly from potential clients. It further helps to
guide framing future marketing strategies.
 Through intermediaries: In this process transaction is done through medium or portal. A
company chooses a platform and enables the company to process transaction. This
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process is adopted due to its precise nature (Ray, 2012). Although it is also beneficial in
order to understand customers needs and expectations through the help of intermediaries.
The company coordinates effectively with the intermediaries.
1.2 Benefits and barriers to a business considering its online presence.
Benefits of e-business Sales volume: With better connectivity and interactions, producers are able to consolidate
large number of customers with their organization which increases sales in significant
amount. Cost reduction: Due to the reduction in number of intermediaries between producers and
customers, there is considerable amount of reduction in the cost. Further, direct
transaction facility via internet eliminates the transaction cost occurred on business
entities. Flexibility in communication: Internet has been the lucrative element for seller to
communicate with customers. Due to instant interaction, they are able to give details
about product and further it also addresses their queries (Srivastava and Teo, 2010). Better logistics: Proactive transaction between producers and sellers leads to
enhancement of efficiency of supply chain with faster and precise delivery.
Barriers of e-business Non compatible infrastructure: Though fast technological advancement has made the
process of purchasing and selling easier but still it is lagging far behind the required
infrastructure such as privacy, security and confidentiality are the key concern. Lack of expertise: There is a very fast pace advancement in the information technology
which requires frequent up-gradation of hardware and also bring adaptability with the
use. Demand of knowledgeable persons outstrips the supply which hinders the optimum
use of this facility. Resistance to change in methods: People are comfortable by using conventional methods
of transaction and business and resistant to inculcate new technology in their processes.
 Security issues: Major concern of using internet as the platform for internet is security
measures. Due to certain loop holes and lacunae in measures adopted, there is fear of
losing confidentiality and privacy for the users.
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1.3 The security and legislative issues likely to be faced by the online business
There are few key issues of concern with respect to the security that are faced by online
businesses (Li, 2011). Data protection: It is imperative for an organization undergoing online business to
protect the personal and profession data they hold about their users. Mentioned
organization F & M is required to comply with laws imposed to protect the data. It has to
undergo the measures taken against unauthorized data processing or in case of loss or
destruction of data (Oliveira and Martins, 2010). Security products and services: To ensure the security of data of the users and entities
linked with business entities there is requirement of certain evidences for authentication
such as identity verification, message assurance and evidences of the contract made such
as date, time and place where it was ratified. Encryption: Using it as a secret measure between a sender and receiver, encryption is the
process that underpins the security arrangements processed in information technology.
By adopting these methods in their transaction F & M will ensure safety of data. Other measures: Digital signatures and certification authorities are few more tools used,
by which safety and protection of data is ensured.
 Minimize risks: The concerned business entity often face issues related to security and
risk. In order to cope up with this situation cited business enterprise make use of Internet
sales regulation and inter absent es contracts to reduce the impact of risk over
organization.
1.4 Different modes of communication
Internet provides different modes of interaction to the users. Electronic data interchange (EDI): In this method, through electronic means documents
such as purchase orders, shipping notices, invoices and other documents are transferred
between two business entities. There are three methods through which trading partners
connect: peer to peer, value added networks and Internet. Voice over internet protocol (VOIP): Using this method, F & M is able to coordinate
with different stores by making phone calls using internet. In this method, voice audio are
converted into digital signals (Kloch, Petersen and Madsen, 2011). Two examples of
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these facilities are Skype and Face time which is prominently in use. This will enable the
mentioned organization to conduct video conferencing and teleconferencing with
different suppliers sitting at different corners of the Globe. Instant messaging: Instant messaging is the way adopted by the users to communicate
with other person by using the same network by sending messages in fraction of seconds.
These methods prove lucrative to provide better customer service. Using this method,
service providers seek the complaints, issues faced by them, requirements and
suggestions to process the business. Due to the faster pace of technological advancement,
management requirement is immediately addressed (Barnes and Hunt, 2013).
 Blogging and social media network: It is used by wide range of people, social media
platforms and blogs are the best way to connect with large number of people. Through
this, the recent or upcoming product launching information is posted on these platforms
which reach large number of people. Examples of this method are Facebook, twitter and
LinkedIn (Bélanger and Crossler, 2011).
TASK 2
2.1 Internet technologies and their importance in making an E-Business successful
There are internet technology tools that make the use of internet for business purposes
successful Websites: Websites are the portal on which the users post related information for people
to engage with it. This platform is utilized by number of people to post information such
as private business entities, government, and nonprofit organization. Making attractive
website with the accessible user interface makes the user know about the working and
products offered by the organization. Internet communication technologies: It refers to the different modes of communication
through which people are connected with each other such as instant messaging, emails,
VOIP and many more (Bhakoo and Chan, 2011). Using this will enable users to interact
with each other. Cloud computing: This facility enables the users to process and store data at third
location that is data centers providing computing and storage facilities to users and
enterprises.
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 Packet switching: Packet switching refers to the process adopted by the organization
while transferring large amount of data. In this process data is segmented into small
packets and then sent which minimizes the time, bring efficiency and preciseness with the
minimum loss of data (Casadesus-Masanell and Ricart, 2010).
2.2 Main features of HTML
HTML is the standard mark up language is used in making web pages and user interfaces
for web applications and mobile applications. This method renders the visibility and audibility to
the web pages to make it interactive.
Basic HTML coding structure
<!DOCTYPE html>
<html>
<head>
<title>Page Title</title>
</head>
<body>
<h1>My First Heading</h1>
<p>My first paragraph.</p>
</body>
</html>
Purpose of various sections within the code
<html> It describes it as an HTML document.
<head> Providing information about document.
<title> States title for the document.
<body> Visibility of page content is described by
this.
<h1> Heading
<p> Paragraph
DOCTYPE It defines that document type is HTML.
Main features of HTML 5
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 Canvas: This feature renders graphics to the web developer. Application catches: This feature enable the user to store large amount of data. The
working method is similar to cookie but with larger domain. The Best example for this
application is Google gear (De, McDonald and Wallace, 2010). Geo-location: With more preciseness and accuracy it is best known for mobile use.
 Video: More embedded like image with easier accessibility.
With the use of HTML cited organization is enabled to work with more preciseness and
creating websites with this application by making it with better user interface (Combe, 2012).
2.3 The functions of clients-servers and browsers and the role of search engines and its
applicability for ‘F&M’
Clients-servers
A computing model used to bifurcate the tasks and work in two sections that is service
and resource provider and secondly service requester. The allocation is done according to their
structure and use. Service providers are referred as servers and service requester is known as
clients. F & M is functioning at many places with many stores and services. It is endowed with
large amount of data. This model enable the organization to process the tasks easily with
accurate partitions (Fuchs and et.al, 2010).
Browser
It is the simple way to get around the web. It is the software application that makes the
user to retrieve, present and traverse information resources on the platform of World Wide Web.
This information resource is identified by a particular address that is referred as URL that is
uniform resource identifier. This is the unique address allocated to the user with the provision to
provide information on it.
Search engine
It is a tool that enables the searching for documents and other required information with
the use of certain and related keywords further a list is shown with respective documents. This is
of great utility to the organization F&M by using tools such as search engine marketing and
optimization. These process enables the F&M to come at top position in searching reach large
number of people to maximize sales (Gloor, 2012).
2.4 Intranet and extranet
Intranet
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It is the form of network operated in an organization with the large family of employees
such as F&M where there is frequent transferring of information between them. Using this
method employees in similar departments and different shares data and information with very
fast pace. This form of networking is completely insulated from the global internet to robust its
speed and maintain privacy. Using this facility will prevent the strategic decisions taken in the
organization from leaking out (Ifinedo, 2011).
Extranet
With the similar form of structure with larger domain is known as extranet. Using
internet technology in a private network between different components of the business
organization. In this process information is shared between business entities, suppliers, vendors,
partners and customers. With the use of this networking process F&M is able to communicate
with all the sections of organization in a better manner to maintain the coordination and
networking for its smooth functioning.
TASK 3
3.1 different e-business Revenue models can be used to generate revenue for a business
In order to process business on internet platform there are certain measures adopted of
organization to maximize their sales and revenue. There are fundamentally three types of model
that can be used by organization F & M and can adopt it as per the suitability as a whole or in
segments (Kloch, Petersen and Madsen, 2011). Transaction fee model: In this model company accrue revenue in the form of fee for
executing transaction on certain platforms such as eBay, E-trade and Autobytel. Sales model: This model states the company generates revenue directly by selling their
goods to customers and keeping profit margins as per their strategy. Some platforms
providing this facility are Amazon, Land's End, Dell and many more.
 Affiliate marketing model: According to this model a company accrue certain and
specified percentage of sales revenue that is decided by their consent. In this a formal
agreement is prepared on the basis of which company generates revenues. Prominent
example of this model is Mypoints that provide companies the facility to procure certain
amount of sales revenue and other as a charging fee (Laumer, Eckhardt and Weitzel,
2010).
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3.2 Comparing two revenue models by assessing their benefits and challenges.
Revenue model is a framework to pursue for the source to generate revenue as per the
suitability by the organization. Use of it enable the organization o maximize it with appropriate
strategy. The two selected e business revenue models are affiliated marketing revenue model and
transaction model.
Transaction model enable the company to sell its product on the internet platform by
paying the fixed fees to the operator of that platform on the other hand affiliate model states that
in this portal charges fees for the marketing of product to the wide stream of public and reach
them (Li, 2011).
In transaction model the fee charged it fixed in nature on the other hand on the affiliated
marketing model fees is not fixed and charged on the basis of amount of marketing.
Affiliated marketing model enable the company to reach large number of public due to
the inclusion of marketing component in the process of selling while transaction model is
confined to providing portal to the company for selling.
3.3 future developments in e-business revenue models
Revenue model is the systematic and planned manner of reaching customers through
internet. With the set of activities in the particular sequence the model is processed. With the
wide area of coverage e business revenue are useful for the selected company with respect to the
revenue generation and sales maximization. With certain improvements sales can be maximized
and optimized (Liu, Cao and He, 2011).
 Collaborating with the high traffic sites to ensure and maximize the sales.
 Adopting the combination of two revenue models by the selected organization F&M will
lead the organization to showcase their offerings in the better way and sell it wide
horizons.
 Inculcating several components in the model and prepare a customized plan such as
marketing, data management and many more.
 Marketing on internet refers to posting products on social media sites, blogging and
detailing the information with supplement to it (Oliveira and Martins, 2010).
 Efficient data management includes the management of data in the very lucrative manner
using certain tools and techniques such as packet switching, cloud computing etc. it will
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enable the organization to manage large amount of data in efficient manner. Better
accessibility of data by organization leads to smooth functioning.
TASK 4
4.1 key elements of a good website design structure.
At the time of making the good website design structure there are certain elements that
are needed to be kept in consideration. Good visual design makes the website attractive. It makes the user to visit the website
and increase the traffic on it. Increased traffic escalates the sales of product and services
by F&M. Content relevancy: The high degree of content relevancy makes the organization reliable.
Reliability holds the customer with the organization for longer period and keep the
regular earning stagnant (Ray, 2012). Easy navigation: It refers to the accessible user interface. When the interface is user
friendly, it makes the customers to surf for the information in efficient manner. Call for action: The availability of the contact path enables the person to contact with the
respective organization in case of any query or requirements (Shambour and Lu, 2012). Credibility: The basic concern of the customer while navigating website is its credibility.
 Mobile site: At present with the wide use of mobile phones for every purpose, it became
must for organization to launch mobile versions of websites. With this information about
gift articles sold by F&M can be procured with one touch at mobile itself.
F&M is a gift hamper enterprise and is planning to develop its official website in order to
communicate effectively with potential customers. It will focus on developing attractive yet
informative website. It will follow systematic set up where on the left side of website there will
be provided details of products and gift hampers. While on the other side it will reveal offers and
schemens launched by company at festive season. On the upper side of website, tabs like home,
about us, company policies, career opportunities and contact us tab will be highlighted for better
convenience of individuals. In the middle recent events and news updates will be availed it will
disply pictures and videos too so that customers are attracted and acquire better knowledge.
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4.2 impact of a well-designed website
There is the large influence of well designed website on the productivity and profitability
of organization. Sales maximization: Well designed websites attract high traffic to the website. It results
into the increment in the sales of organization. The profitability and performance of
concerned business operations increases with well designed website. Profitability: Increased sales results in the increment in the profitability of organization
with high revenue generation. It helps in building competitive edge in the market with
widening the gap from competitors. It ultimately results in increased profit margin of the
company and better execution of policies and procedures. Increased customer interaction: Well designed leads to the consolidation with the
customers to the great extent. Instant messaging and customer service is processed. The
company is able to develop strong relationship with new and existing clients. Improvement in quality: When there in high interaction with customers and suppliers,
F&M are able to seek advice and suggestions from the customers for further
improvements (Srivastava and Teo, 2010). Feed backs provide better picture of customer
expectations and desires and according to which concerned company develops its
products.
 Financial performance: It led to the improvement in the financial performance of the
organization. It has increased profit margins of the concerned business entity and
empowered with effective financial performance.
4.3 Issues concerning website utility
While making websites there are certain issues that are needed to be addressed by the
organization F&M. Considering these issues prevent the website from making it of less utility for
the organization. Poor image: It is very imperative to make the website attractive in nature with the precise
use of graphics and images. Use of poor image deviates the flow of customers away from
the website (Veit and et.al, 2014). Poor formatting: Improper formatting makes the navigation at the website discomforting
and imparts wrong impression on the customer about the organization.
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 Over use of content: When the amount of content is high, it becomes very difficult for
know about the organization in precise manner (Andreu and et.al, 2010).
 Browser incompatibility: Browser incompatibility leads to deviation of traffic to other
place.
CONCLUSION
With the advancement in information technology, there is the paradigm shift in the
process adopted by organization to promote the product and services offered by it. From the
present study it can be inferred that various components of internet and e business enable the
organization to enhance its profitability and customer base.
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