1.

Difference between e business and traditional business

Answer» \tBasis of DistinctionTraditional BusinessE-Business1. Cost of setting up• High• Low, as be requirements of physical facilities.t. 2. Operating cost• High, due to fixed charges associated with investment in procurement & storage, production, marketing and distribution facilities.• Low, as a result of reliance on net work relationship rather than ownership of resources.3. Nature of contract with the suppliers and the customers.• Indirect, through intermediaries.• Direct4. Nature of Intend communication.• Hierarchial from top level management to middle level management to lower level management to operatives.• Non-Hierarchial allowing direct vertical, horizontal communication.5. Response time for meeting customers.• Long• Instantaneous.6. Shape of the organisational structure.• Vertical/Fall, due to hierarchy or chain of command.• Horizontal/flat due to directness of command and communcation.7. Business processes and length of cycle.• Sequential precedence succession relationship i.e. purchase-production/ operation marketing sales. The business process cycle is therefore logner.• Simultaneous different processes, Business process cycle is therefore shorter.8. Opportunity for inter personal touch.• Much more• Less9. Opportunity for physical pre-sampling of products.• Much more• Less, however for digital products such an opportunity is tremendous.10. Ease of going global• Less• Much, as cyber space is truly without boundaries.11. Government patronage.• Shrinking• Much, as IT sector is among the top most priorities of govt.12. Nature of Human Capital.• Semi skilled and even man power needed.• Technically and professional qualified personnel needed.13. Transaction risk.• Low due to arm is length transactions and face to face contact.• High due to the distance and anonymity of parties.\t


Discussion

No Comment Found

Related InterviewSolutions