Class 11 Business Studies Chapter 5 Notes (Emerging Modes of Business)

While stepping out of your home, you must have noticed that modern businesses are no longer limited to physical shops, face-to-face transactions, or traditional methods of buying and selling.

Nowadays, it has become important to understand the emerging modes of business because digital technology, online transactions, and electronic communication have changed the way businesses operate and connect with customers.

Keeping all these scenarios in mind, our expert CBSE BST teachers have developed Class 11 Business Studies Chapter 5 (Emerging Modes of Business) notes exclusively for Class 11 BST students.

From these notes, you can cover the definition of e-business, the difference between e-business and e-commerce, and the complete scope of e-business, including B2B, B2C, C2C, and Intra-B transactions.

Additionally, there is a separate section where you can learn about the major benefits and limitations of e-business.

Before you proceed further, below are the quick details:

• Class: 11
• Subject: Business Studies
• Chapter Number: 5
• Chapter Name: Emerging Modes of Business

Table of Content

Definition of E-business	E-business versus E-commerce
Benefits of E-business	Limitations of E-business

Definition of E-business

• E-business may be defined as the conduct of industry, trade, and commerce using computer networks.
• The most commonly used network is the internet.

E-business versus E-commerce

E-business	E-commerce
E-business is a more elaborate term and comprises various business transactions and functions conducted electronically, and e-commerce is just a part of e-business.	E-commerce involves buying and selling goods over the internet, and e-business involves buying and selling and other functions like product development, accounting, finance, inventory management, etc.

Scope of E-business

Type	Explanation
B2B (Business to Business)	Here, both parties involved in e-commerce transactions are business firms using Electronic Data Interchange (EDI) technology. It involves various transactions through computer networks, such as: Placing orders Monitoring production Delivery of components Sending and receiving orders For example: The manufacturer of an automobile requires the assembly of a large number of components, which in turn are manufactured elsewhere.
B2C (Business to Customer)	As the name implies, B2C (Business-to-Customer) transactions have business firms at one end and customers at the other end. It is commonly known as online shopping. Also, B2C enables a business to be in touch with the customer on a 24-hours-a-day, 7-days-a-week, 365-days-a-year basis. It provides the following benefits: The transactions are conducted at a lower cost but with high speed. For example: ATM speeds up the withdrawal of money. It ensures convenience in delivery and payments. It enables a business to be in touch with its customers on a round-the-clock basis.
C2C (Customer to Customer)	Here, business originates from the consumer, and the ultimate destination is also the consumer. It provides a market for dealing in goods for which there is no established market. For example: Selling used books or clothes, OLX, eBay, etc.
Intra B	Intra B involves transactions within a given business firm. It involves the use of the internet for managing interactions and dealings among various departments. For example: Through a computer network, the marketing department can easily interact with the production department to provide information regarding new products. It includes transactions like interaction among departments, training of employees, selection, etc. It provides the following benefits: It facilitates 3D graphic communication and even multimedia among departments. It ensures a quick flow of decisions and information, a speedy workflow, and better coordination. It helps companies in personnel recruitment interviews, selection, and training. It also facilitates employees in sending their field reports by e-mail.

Benefits of E-business

Benefit	Explanation
Global Reach/Access	The internet is truly without boundaries. On the one hand, it allows the seller access to the global market. On the other hand, it provides freedom to the buyer to choose products from almost any part of the world.
Ease of Formation and Lower Investment Requirements	The formation of an e-business is relatively easy compared to other businesses. Also, the amount of investment required to start an e-business is very low.
Movement towards a Paperless Society	Use of the internet has considerably reduced dependence on paperwork and the attendant “red tape”. Even government departments and many companies are increasingly moving in this direction. Regulatory authorities have allowed electronic filing of returns, reports, etc.
Convenience	The internet offers the convenience of a 24-hours-a-day, 7-days-a-week, 365-days-a-year business that allows a customer to go shopping even after midnight. E-business offers the advantage of accessing anything, anywhere, anytime.
Speed	The transmission of information through the internet is very fast. The time taken from the origin of demand to its fulfillment has been reduced, especially in the case of information-intensive products like movies, music, e-books (PDFs), software, etc.

Limitations of E-business

Limitation	Explanation
Increased Risk Due to Anonymity and Non-traceability of Parties	Internet transactions occur between cyber personalities. Therefore, it becomes difficult to establish the identity of the parties. Also, one doesn’t know the location from which the parties are operating, which makes it riskier.
Incongruence between Order Taking/Giving and Order Fulfillment Speed	Information can flow at the click of a mouse, but the physical delivery of the product takes time. This incongruence may play on the patience of the customers. Sometimes, due to technical reasons, websites take an unusually long time to open. This may further frustrate the user.
Low Personal Touch	No doubt, e-business involves high technology, but it lacks interpersonal interactions. Hence, it is relatively less suitable in the case of products like garments, shoes, etc.
Ethical Fallouts	This business lacks ethics. The company keeps track of the e-mail accounts of its employees, computer files used by them, and websites visited by them.
People Resistance	The process of adjusting to a new technology and a new way of doing things causes stress and a sense of insecurity. That is why people resist entering into e-business.

The End

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A List of Notes:

Chapter 1  |  Chapter 2  |  Chapter 3  |  Chapter 4  |  Chapter 5  |  Chapter 6  |  Chapter 7  |  Chapter 8  |  Chapter 9  |  Chapter 10

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