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CH INSTITUTE OF MANAGEMENT AND COMMUNICATION

Post Graduate Diploma in Management

Term 3 Batch II Assignment=1 Class PGDM Term-3 Subject E-Business Date 03/06/2011

Submitted To By
Prof. Suresh k Ahuja

Submitted
Rajkamal Paroha

INDEX
Particulars Page No.
1. What indicators suggest e-commerce is here to stay?..................1-2 2. It has been said, In almost all cases, EC does not...3-6 change some fundamental rules of banking. Contact a local commercial bank and explore the likelihood that this statement is true. Write 3 page report of your finding. 3. www.sportzone.com.........................................................................7-9 4. www.cai.com......................................................................................10 5. www.virtualproperties.com..............................................................11 6. www.parismuseumpass.com............................................................12 7. EC books available for sale in www.amazon.com....................13-14 8. Information do you need before you prepare the ....15-16 Presentation. 9. Services offered by (www.consumers.com)...............................17-18 10. Types of Internet scams....... 19-21

Page no. 1

What indicators suggest e-commerce is here to stay? Explain. Introduction


As per the question we have to be explore more recent evidence by industry, type of product, etc. so before starting the answer let we first clear what is e-commerce E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, e-business, are often used interchangeably. And Indicators are quantifiable web site measurements that reflect whether you are successfully meeting or falling short of your websites business goals, Now Companies are increasingly placing their corporate web site on the Internet and considering themselves to be immersed in Electronic Commerce (E-Commerce). However, is this necessarily correct, and if so, are they performing this as an overall business strategy or are they merely rushing into the arena in order not be left behind by their competitors? Does the presence of a corporate web site guarantee a presence in the E-Commerce industry? More importantly how can a company engage in E-Commerce effectively as an overall business strategy? What business values and activities make it appropriate to engage in E-Commerce and what marketing strategies will work?

Background
Electronic commerce is the application of communication and information sharing tools among trading partners to the pursuit of business objectives. Three distinct types of electronic commerce exist:
Information access: provides search and retrieve capability for public

domain and proprietary data archives. In addition to access, a fully functioning service of this type would provide services related to the creation, update, and maintenance of information.

Page no. 2 Shopping services: allows and individual to seek and purchase goods or services through electronic networks. This type of EC is probably the most popular type of EC and the one most people associate it with.
Virtual enterprises: are business arrangements by which companies

separated by geography and core knowledge are able to engage in business activities. EC technology allows the means by which business arrangements can flourish. Mature examples in this category are EDI arrangements between OEMs and their suppliers, or between large retailers and their suppliers.

The following are indicators that suggest e-commerce is here to stay:


In 2000, 87 million people in the U.S and 115 million worldwide used the Internet compared to 3 million users in 1994. In 1999, insurance policies with a total face value of $50 million were sold via the Internet. In 2001, Internet insurance sales climbed to $1.1 billion. International Data Corporation estimates worldwide e-commerce activity will reach the $426 billion mark by 2002.

E-Commerce: Here to stay (Explaination)


People enjoy the convenience of shopping anytime anywhere and more and more people are discovering it. Every day, the number of people buying online is increasing, and this is just the beginning. It is believed that soon everyone will be doing the same, however even today hundreds of millions of people use internet for there daily grocery shopping, on personal occasions and also do their Christmas shopping online. It is easy to understand why this is so. With the continuous growth of e-commerce more and more people will enjoy the comfort of anytime anywhere shopping. While e-commerce will grow and overcome concerns that some people still have but, this form of trade is here to stay, because the majority of the people of the world work

Page no. 3 and try to make their life easier and anything that makes life easier today, it is a winner. E-commerce shops simplify life and with the right e-commerce software you can create a web store with a very low investment

Question:-2 It has been said, In almost all cases, EC does not change some fundamental rules of banking. Contact a local commercial bank and explore the likelihood that this statement is true. Write 3 page report of your finding. Introduction:-The central practice of banking consists of borrowing and
lending. As in other businesses, operations must be based on capital, but banks employ comparatively little of their own capital in relation to the total volume of their transactions. Instead banks use the funds obtained through deposits and, as a precaution, maintain capital and reserve accounts to protect against losses on their loans and investments and to provide for unanticipated cash withdrawals. Genuine banks are distinguished from other kinds of financial intermediaries by the readily transferable or spendable nature of at least some of their liabilities (also known as IOUs), which allows those liabilities to serve as means of exchangethat is, as money. before starting the answer let we first understand what is fundamental rules of banking.

There are certain important Fundamental rules of banking:Operations and management


The essential business of banking involves granting bank deposit credits or issuing IOUs in exchange for deposits (which are claims to base money, such as coins or fiat paper money); banks then use the base moneyor that part of it not needed as cash reservesto purchase other IOUs with the goal of earning a profit on that investment. The business may be most readily understood by considering the elements of a simplified bank balance sheet, where a banks available resources its assetsare reckoned alongside its obligations, or liabilities.

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Asset management
A bank may mobilize its assets in several ways. It may demand repayment of loans, immediately or at short notice; it may sell securities; or it may borrow from the central bank, using paper representing investments or loans as security. Banks do not precipitately call in loans or sell marketable assets, because this would disrupt the delicate debtor-creditor relationship and lessen confidence, which probably would result in a run on the banks. Banks therefore maintain cash reserves and other liquid assets at a certain level or have access to a lender of last resort, such as a central bank. In a number of countries, commercial banks have at times been required to maintain a minimum liquid assets ratio. Among the assets of commercial banks, investments are less liquid than money-market assets. By maintaining an appropriate spread of maturities (through a combination of longterm and short-term investments), however, it is possible to ensure that a proportion of a banks investments will regularly approach redemption. This produces a steady flow of liquidity and thereby constitutes a secondary liquid assets reserve.

Liability and risk management


The traditional asset management approach to banking is based on the assumption that a banks liabilities are both relatively stable and unmarketable. Historically, each bank relied on a market for its deposit IOUs that was influenced by the banks location, meaning that any changes in the extent of the market (and hence in the total amount of resources available to fund the banks loans and investments) were beyond a banks immediate control. In the 1960s and 70s, however, this assumption was abandoned. The change occurred first in the United States, where rising interest rates, together with regulations limiting the interest rates banks could pay, made it increasingly difficult for banks to attract and maintain deposits. Consequently, bankers devised a variety of alternative devices for acquiring funds, including repurchase agreements, which involve the selling of securities on the condition that buyers agree to repurchase them at a stated date in the future, and negotiable certificates of deposit (CDs), which can be traded in a secondary market. Having discovered new ways to acquire funds, banks no longer waited for funds to arrive through the normal course of business. The new approaches enabled banks to manage the liability as well as the asset side of their balance sheets. Such active purchasing and selling of funds by banks, known as liability management, allows bankers to exploit profitable lending opportunities without being limited by a lack of funds for loans. Now days all these risk manages by the help of E-Commerce.

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Role of bank capital


Because even the best risk management techniques cannot guarantee against losses, banks cannot rely on deposits alone to fund their investments. Funding also comes from share owners equity, which means that bank managers must concern themselves with the value of the banks equity capital as well as the composition of the banks assets and liabilities. A banks shareholders, however, are residual claimants, meaning that they may share in the banks profits but are also the first to bear any losses stemming from bad loans or failed investments. When the value of a banks assets declines, shareholders bear the loss, at least up to the point at which their shares become worthless, while depositors stand to suffer only if losses mount high enough to exhaust the banks equity, rendering the bank insolvent. In that case, the bank may be closed and its assets liquidated, with depositors (and, after them, if anything remains, other creditors) receiving prorated shares of the proceeds. Where bank deposits are not insured or otherwise guaranteed by government authorities, bank equity capital serves as depositors principal source of security against bank losses. Deposit guarantees, whether explicit (as with deposit insurance) or implicit (as when government authorities are expected to bailout failing banks), can have the unintended consequence of reducing a banks equity capital, for which such guarantees are a substitute.

Background:Banks and Financial Institutions:


Banks are now using new technology through online service whereby people can open online Account Bank. The effects of e-commerce can also be observed in the laws related to the Banking or financial transactions. The new methods of payments for goods and services under e-commerce which can be seen as a logical development of conventional cheques related to Bills of exchange can affect the Bills of Exchange Law. The combined definition of a bill of exchange and a Cheque has to be affected. All these elements are now contained in electronic analogy of the cheque through the use of sophisticated Cryptography and cyberspace allowing the creation of digital signatures. e-commerce money transfer such as the use of VISA, Master Card, Credit, and Cards which is now universally accepted as payment mechanism is becoming alternatives to conventional bank transfer apart from overtaking personal cheques 38 hence affecting commercial laws. People can use on-line payment through internet using these cards.

EC does not changes some fundamental rules of banking

Page no. 6 There is a common theme that runs through almost all e-commerce innovations: it does not change some fundamental rules of banking. As the Internet continues to speed the pace of change in the coming years, many aspects of banking will be altered and transformed, but the guiding principles of banking will always remain. Being successful at e-commerce requires rapid adaptation and excellent timing, i.e., quick and comprehensive re-aligning of an banking key elements; not just technology but also processes, strategies and people; and delivering it to the customers when they are ready for it. Successful e-commerce players streamline the customers entire experience: from researching options, to customization, to Depositing, from checking Account details, to Transaction fulfillment and payment option, through by debit or credit card, billing and after-sale customer service, as well as accepts feedback of the customers and new services avail to their customers. As a superhighway, the Internet is well-paved and ready to carry lots of traffic. Along its path, however, are a great number of partially built banking centers still under construction Although the bandwidth is not that much of a problem on the Internet, Access to the Internet in most parts of the world as well as the limited number of well-developed commercial destinations on the Internet do present problems. E-commerce is poised for radical change. The emerging enterprise e-commerce model may bring some changes that will transform the current model in as sudden and cataclysmic a manner as ecommerces rise.

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Question:-3 Visit the following sites on the internet, analyze them, and report your finding. Include the title of the each site with your report: www.sportzone.com for a live interviews, play by play calls and other interesting audio and animate information. www.cai.com for animations from engineering automation. www.paris.org/musees/lovers for exhibits at Lourve. www.virtualproperties.com for video tours of real states.
1.

www.sportzone.com.

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Introduction:www.sportzone.com is now recognizing by the name espn.go and this website deals with the sport areas. In this website you watch recent new video of any kind of sport games you also have a facility to get the news headlines related to the sports activities this is only a small introduction of the website it provides lots of other services to their customers..

Key finding in Sportzone.com is the supplier of Information is:-

The Walt Disney Company is a diversified worldwide entertainment company with operations in four major business segments: Studio Entertainment, Parks and Resorts, Media Networks and Consumer Products. The Company's Strategic Sourcing and Procurement organization works with all our Business Units and their Suppliers across the globe to establish the best value for The Walt Disney Company. Strategic Sourcing provides opportunities for Suppliers to partner with the Company to provide goods and services. This partnering approach is designed to create a mutually beneficial relationship between our Suppliers and The Walt Disney Company. Disney Sourcing Professionals seek out and contract with companies of all sizes and capabilities, from local and regional Suppliers to those with a global reach finding Suppliers for a specific Company division or the entire enterprise. We rely on a dedicated, competitive, world-class Supplier base to collaborate with our Sourcing Professionals and work within our infrastructure to bring the Disney magic to our customers and guests around the world. Contact ESPN ESPN.com (Fantasy, Insider, Video, Mobile)

ESPN3.com Schedules and content for all ESPN television and radio networks and sports programming on ABC.

Second finding:-

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Page no. 10

2. www.cai.com(google) Key finding:About Website


CAI is a global services firm that is currently managing activity engagements with over 100 fortunes 1000 companies and government agencies around the world specific cai offering including balanced outsourcing solution legacy support, application development, application knowledge capture, desktop service. And its ability to provide on-time and on-budget results has been critical to over success to over 29 years and our unique methodology and tools enables us to provide our client with real technique for increasing productivity, profitability, and competitiveness. .

CA GUIDING PRINCIPLES
CA Inc operates on the principal that IT solution should be delivered at a fixed price on time and within budget to this end CAI has been focused for 29 years on the development of service models and leverage defined processes and performance in order to maximize visibility control and productivity each of the CAIs offering enables customers to concentrate on their core competencies while preserving customers control over the IT function. 3. www.virtualproperties.com

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About Virtual Properties


Virtual Properties makes software for real estate brokers and agents. Our integrated cloud software spans apps, websites, intranet/crm tools to transactions and beyond.

How we're different


Virtual Properties consistent and reliable innovation record is one of the best in real estate technology. Our software is easy to use, implement and an essential part of broker and agent productivity and growth. Our project managers work closely with clients to understand their business goals and align our technology with their strategy.

Why we're different


Founded in 1995, Virtual Properties is private and family-owned. We develop, implement and support our software in-house. Virtual Properties' leadership team includes developers, legal, financial, real estate and process experts, people deeply experienced in the real estate process.

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4. www.parismuseumpass.com

About the site


Paris museum is site in which you anyone one the network gets the information about the momentum and all the things which is presented in the Paris museum and site also provide the facility to get online pass to make a trip for the museum and site contains all the information about the places which is good to visit.

Key finding:Web site provides the essential and useful information about the various momentums of the museum in the Paris.

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Question:-4 Look up Amazon.com on the Internet (www.amazon.com) and report the number and types of EC books available for sale. Introduction:- In 1994, Jeff Bezos, a thirty-two-year-old vice president at New
York based D. E. Shaw, founded Amazon.com to capitalize on the phenomenal growth of the Web. Bezos recalled: Web usage, as measured in number of bytes flying across the Internet in Web format, was growing at 2300% a year, and things just rarely grow that fast. So I set about trying to find a business plan that might make sense in the context of that growth, and I made a list of 20 different products looking for the first best product to sell online.9 After researching the twenty retail categories, Bezos selected books. Bezos explained: Books are incredibly unusual in one respect, and that is that there are more items the book category than there are items in any other category by far. There are more than 3 million different titles available and active in print worldwide. Working with Amazon- (First start-up page of Amazon)

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This figure of Amazon website shows that there are total of four types of EC books is available:1. Paperback(5078)books 2. Hardcover(1913)books 3. Kindle Edition(15313) 4. Audible Audio Edition(11) 5. And some types of other EC study materials are available in see more option.(6238) Number of EC books available for sale in Amazon website:Total number of EC books available for sale is22315 Books. If we include others study material of EC too (6238+22315=28553).

Question:-5 You are an Internet consultant to a company that wants you to do a one-hour presentation to top management about the

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importance and potential of the Internet in the companys business. What information do you need before you prepare the presentation? Write a three-page report detailing the content of the speech. Introduction
Before starting the answer let we know about some important facts of internet related to the business The Digital Age. The Computer Age. The Information Era These are but three names that are used to describe the current age, and they are completely accurate. Although there are still some older people that refuse to embrace the internet, most young people could not even imagine life without it. We use computers to shop, organize and print our photos, and to research all different kinds of information, among others. Taking all of this into consideration, the internet has made quite an impact in the business world. People utilize the web to peruse a company's inventory, as well as find locations, look up the phone number, and order the things they need. Not to mention that a good amount of people use an internet search site to find a company that has exactly what they need. After a person has used the internet to find a business that they need, they will probably look on that particular company's website for directions to their store. Only then will someone drive over to the physical location to make their purchases. This saves time for a customer-they can look online and if a business does not have something that they are looking for, they don't have to spend time and money driving to the store to look for the item in person. With this in mind, it is increasingly important for a company to provide a website for their potential customers. When a business presents itself online as efficient and responsible, this can make people more likely to come and visit the store in person. This can be a great way to generate more sales With the use of internet, companys enables or it is possible to transmit/receive company information containing images, graphics, sound and videos. ISP industry can offer services as:

Linking consumers and businesses via internet. Monitoring/maintaining customer's Web sites. Network management/systems integration.

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Backbone access services for other ISP's. Managing online purchase and payment systems.

The internet is designed to be indefinitely extendible and the reliability of internet primarily depends on the quality of the service providers' equipments.

Benefits of Internet:

Doing fast business. Trying out new ideas. Gathering opinions. Allowing the business to appear alongside other established businesses. Improving the standards of customer service/support resource. Supporting managerial functions.

There are lots of benefit importances and potential of the internet in business but there is certain limitation too:-

Limitations:

Security Privacy Threats: Hackers, viruses etc.

The information we need before prepare a presentation are :1. We firstly exactly know how the internet benefited to our company. 2. We have to know about the risk which arrives in front of the company when company can done there business with the help of internet. 3. You are having a complete knowledge about the nature of business and how big the company is because the risk in using internet technology is more in small company. 4. You clearly know about how internets improving the standards of customer service/support resource of your company. 5. And all the above mentioned information about potential of internet to a business is must be need before preparing a presentation.

Question:-6 Go to Zelerate web site (www.consumers.com). What services does this site offer?

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Introduction:- the web site is mainly deal and provides services to the
consumers and deals with the consumer affairs but in spite of that this site provides lots of other services they are detail below.

The official website of the office of consumers affairs and business regulation (OCABR)
Services offers by the site:For Consumer ONLINE SERVICES Subscribe to the Consumer Insider File a Complaint Against a Licensed Professional Check your home improvement contractor's record Licensing Information and Resources Validate your car's history How to resolve a consumer problem

For Businessmen
ONLINE SERVICES Division of Insurance Individual Producer Online Renewals (OLLIE) Home Improvement Contractor Registration Professional & Business Licensee Requirements

For liciensee
ONLINE SERVICES Division of Insurance Individual Producer Online Renewals (OLLIE) Licensing Information and Resources Professional & Business Licensee Requirements File a Complaint Against a Licensed Professional For Government ONLINE SERVICES Subscribe to the Consumer Insider Licensing Information and Resources

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Question:-7 Go to the Federal Trade omission Web Site (www.ftc.gov) or CBI, and find investigate types of scams on the internet. Prepare 3 pages report. The most common types of Internet scams:Introduction:As time continues on, an alarming increase of Internet scams are appearing in people's e-mail boxes. You probably have stumbled across a too good to be true offer. There are many different types of scams in existence today. Every scam will state you will earn incredible amounts of money, which may be tempting, but if you respond, you could put your life into immediate danger. Spotting an Internet scam is one thing, but falling into the scam is another. Once research is conducted and you are able to understand the mechanisms of these scams, and how scammers operate their scams, you will be able to keep you and your family safe.

1.) Identity Theft


The most common scam is Identity Theft. This is when a scammer successfully obtains your personal information, without your permission. This includes your home address, credit card information, and banking information. Once this information is obtained, the scammer is able to take out loans under your name. They may not pay these loans back and you will be left to take the consequences of these actions.

2.) Lottery Scams:


Lottery Scams are another fast-growing scam. Have you ever received an email congratulating you for winning a lottery you have not even entered into? Reality check! Most of us have 'won the lottery!'. The majority of these lottery scams come from South Africa. They may appear legitimate, that is until they ask you to send money to receive your 'winnings'. No lottery board will send you an email to notify you that you have won the lottery. You have to be aware, and inform them if you've won. Most of the scammers will ask you to send a couple thousand dollars through Western Union money transfer services to pay for 'legal fees' or 'transfer

Page no. 20 costs', then once you receive your 'winnings', you are obligated to send a percentage of your 'winnings' back. Some lottery scams have 'lawyers' involved, but no professional organization or corporation would ever ask you to send money through Western Union. They use this method because there is absolutely no way of tracing your money to get it back. They will also tell you to keep your 'winnings' confidential and private. By this, they mean don't tell the police because they don't want to be hunted down and prosecuted. Remember, if you didn't buy a lottery ticket, you cannot win the lottery!

3.) Work at Home Schemes:


Work at home, online and become wealthy? Sounds pleasant to avoid traffic in the morning and the ability to sleep in all day, and work by night, but let's get back to the real world of living. You should never have to pay money to work or to receive money. They should pay you, not the other way around! In the end, you may discover you're not making any money at all, but they sure are jacking up your credit card bill.

4.) Inheritance Scams:


Another scam is the inheritance scam. You will receive an email saying you are wanted to be the next of kin for a substantial amount of money, such as 10 million US dollars. There is no such money that exists and ask yourself, why would a stranger want to give you so much money? The scammer is attempting identity theft. They will ask you for photo identification and banking details to do a 'wire transfer'. They will usually ask for a sum of money. Why would you have to pay anything when they are the one holding '10 million dollars'? There will not be a transfer, so try not to get your hopes up of becoming rich.

5.) Foreign Employment Scam:


Another scam is the foreign employment scam. A so-called employer from a 'company' will contact you via email and ask if you would like to become business partners. These scammers usually will ask for personal information and identification. Supposedly it's to expensive to transfer goods or money within their own country, but this is not the case.

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6.) Phishing:
Phishing is increasing by the day. This is when your sensitive information is provided to the scammer. Such information includes credit card details and your passwords to sites such as your online banking site. Scammers will produce a very similar website, much like a cloned site, to acquire your personal information. You will most likely receive these attempts via e-mail. All information given to the scammers through phishing websites are marked down and recorded by the scammer. It is best to contact your local bank and confirm their exact website address, to avoid running into fraud and other complications.

7.) Pyramid Schemes:


Pyramid schemes are business models that are unsustainable, and they are throughout the Internet. They involve large sums of money that people invest, in hopes of gaining more money. The people investing their own money are responsible for enrolling additional people into the pyramid of 'income'. There are no products being offered, just money. When the scammer is satisfied that enough money is involved in the enrollment of investments, the scammer will disappear with every penny, leaving all the people in the pyramid scheme with nothing.

Thank you

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