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Conducting business including operation of business, sale, purchase. etc. with the help of a computer network (Internet) is called e-business.

The exchange of products, services or information between an enterprise and customer is called the business to customer (B2C) e-commerce.

China enacted its law on the franchisee in the year 2007.

The place of origin of the franchise is USA.

According to the International Franchise Association 4% business in the USA is conducted through franchises.

It implies an arrangement in which, a company makes a virtual community or portal on the internet and includes a number of companies or a third party company in this community, commercially.

(a)  Frankers

France Telecom.

Four merits of E-Commerce:

• The sphere of e-commerce extends to the international level and helps in getting information about new markets. 
• It improves customer service. 
• It helps in reducing the transaction time. 
• It helps in reducing investment and cost. 
• It increases the volume of trade.

(c) cash on delivery

70% of revenue of BPO is received by call centre.

(c) Dr Meterena

(d) online acquisition

WAP (Wireless Application Protocol) technology.

(c) World Wide Web

(c) only inbound voice-based business

(b)  In 1997

(a) provides both vital and non-vital contracts for service processes and also production and research and development, outside. It is limited only to the domestic sector

BPO implies ‘contracting another service provider party’. Originally, outsourcing is another trend which is restructuring the business in a significant manner. It is that longterm contract which is given for contracting usually secondary (non-vital) and later some major activities or for profiting from the experience, expertise, efficiency or even investment of the third party specialists.

The characteristics of BPO are: 

• Acquiring all those services from outside which you have been performing yourself till now.
• Entrusting secondary (non-vital) business activities only. 
• Outsourcing of processes can be done to either affiliated or to a third party.

 Scope of Outsourcing: 

Four main elements are included in outsourcing – 

contract creation, contract research, contract marketing and information science.

Need for Outsourcing: 

Need for outsourcing and its advantages are –

1. Focusing on Attention – Freedom from looking after routine back-office operations enables the managers to focus more on the primary business. 

2. Quest for Excellence – BPO uses the necessary guidance and skills of another company after ascertaining the specialised work sphere, instead of recruiting and training employees. 

3. Cost Reduction – This is achieved through process improvement, reengineering and use of technology, which reduces administrative and other costs that are included. 

4. Growth through Alliance – Upon outsourcing the less-important processes, companies can pay attention towards sales growth, market share growth, development of new products/services, orientation towards new markets, customer services and their satisfaction. 

5. Encouragement to Economic Development – Employment opportunities and economic development is enhanced in the countries which have BPOs.

Concerns over Outsourcing are – 

1. Confidentiality – The outsourcing of information system is unable to maintain proper confidentiality and secrecy. 

2. Sweat Shopping – BPO focuses more on ‘activity skills’ rather than ‘thinking skills’ and provides transactions at a minimum rate, hence the countries having BPOs do not earn more. 

3. Ethical Concern – Countries having BPOs increase unethical activities including child labour, gender inequality, etc. 

4. Resentment in Home Countries – When production, growth, messages, etc. move out of the country, they are followed by an outflow of employment and job opportunities, that results in an increment of unemployment in the country.

(a) Management helps in achieving group goals: Management is required not for itself but for achieving the goals of an organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of an organisation.

(b) Management increases efficiency: The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of an organisation.

(c) Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change. Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge.

(d) Management helps in achieving personal objectives: A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership, management helps individuals to develop team spirit, co-operation and commitment to the group success.

(e) Management helps in the development of society: An organisation has multiple objectives to serve the purpose of the different groups that constitute it. In the process of fulfilling all these, management helps in the development of the organisation and through that it helps in the development of a society. It helps to provide good quality products and services, creates employment opportunities, adopts new technology for the greater good of the people and leads the path towards growth and development.

Characteristics of Management:

(i) Goal oriented process

(ii) Group activity

(iii) Intangible force

(iv) Pervasive

(v) Multi-dimensional

(vi) Continuous process

(vii) Dynamic function.

Detailed Answer:

Characteristics of Management:

(a) Management is a goal-oriented process: An organisation has a set of basic goals which are the reason for its existence. These should be simple and clearly stated. Different organisations have different goals. For example, the goal of a retail store may be to increase sales, but the goal of the Spastics Society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organisation towards achieving these goals.

(b) Management is all pervasive: The activities involved in managing an enterprise are common to all the organisations whether economic, social or political.

(c) Management is multidimensional: Management is a complex activity that has three main dimensions. These are:

(i) Management of work: All organisations exist for the performance of some work. In a factory, a product is manufactured; in a garment store a customer's need is satisfied and in a hospital a patient is treated. Management translates this work in terms of goals to be achieved and assigns the means to achieve it. This is done in terms of problems to be solved, decisions to be made, plans to be established, budgets to be prepared, responsibilities to be assigned and authority to be delegated.

(ii) Management of people: Human resources or people are the organisation's greatest asset. Managing people has two dimensions (i) it implies dealing with employees as individuals with diverse needs and behaviour; (ii) it also means dealing with individuals as a group of people. The task of management is to make people work towards achieving the organisation's goals, by making their strengths effective and their weaknesses irrelevant.

(iii) Management of operations: No matter which type of organisation it is, it has some basic products or services to provide in order to survive. This requires a production process which entails the flow of input material and the technology for transforming this input into the desired output for consumption. This is interlinked with both the management of work and the management of people.

(d) Management is a continuous process: The process of management is a series of continuous, composite, but separate functions. These functions are simultaneously performed by all managers all the time. The task of a manager consists of an ongoing series of functions.

(e) Management is a group activity: An organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as members of the organisation they work towards fulfilling the common organisational goal. This requires team work and co-ordination of individual efforts in a common direction. At the same time management should enable all its members to grow and develop as needs and opportunities change.

(f) Management is a dynamic function: Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.

(g) Management is an intangible force: Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation functions. The effect of management is noticeable in an organization where targets are met according to the plans, employees are happy and satisfied, and there is orderliness instead of chaos.

The transaction of products, services and information between two business companies is called B2B.

Three points of assistance given to the user by internet commerce are: 

• In internet business, a business can be done 24 hours, 365 days, where any person can give instructions.
• The number of transactions is more on the Internet. In most of the cases, a click of a mouse can make a transaction. 
• The menu of products and services can be searched to obtain information about an online purchase.

The system of using a successful business model of another firm is called franchising. The growing importance of franchisee in the development of modern business is due to the following reasons – 

1. Minimum Investment – 

Franchisee is just a temporary business investment. Business is not bought to be owned but is acquired at lease or rent for a certain period of time. Therefore, any people can select any business according to their will and budget, and with that estimated budget, they can easily start a franchisee.

2. Training and Technical Knowledge – 

A franchisee owner does not require a lot of technical knowledge and training, a little business study and social network, and the ability to bear the risk can help him/her to start one. National/International advertising. training and tangible and intangible support services are usually provided by the franchisers.

3. Business on the available trademark – 

The most important benefit of the franchisee is that the company whose franchisee has been taken can be easily encashed.

4. The need of Advertisement –

The franchisee is a kind of business in this modern era of business, where, a person can sell the product available in his showroom in the name of the company, therefore he/she does not require to advertise the product.

5. Operation & Control – 

Franchising is the only means by which entrepreneurial capital investment can be obtained without losing control of the operation of the chain and a distribution system can be built for services’ office. After building and executing the brand and formula, the franchiser can sell the franchise, and by minimising the risks, using the capital and resources of their franchisee, they can expand rapidly.

6. To get established in the market in a short time – 

Any refined company which has already established its name in the market, would only give its name to be used by another country on the basis of some conditions, so, that business grows rapidly and hence the company does not need to rectify again and again.

Computers are being used in the business world, where the internet also plays a very important role. The net is a system of networks spread out across the world and connected to computers world-wide where information can be accessed through one computer. Due to the internet being a wide network to spread messages, it has become an important component for e-commerce and e-mobile commerce.

Through this, people can easily do propaganda and publicity of products and services. Nowadays, the facility of returning products which are not found good when bought through online marketing is being upgraded due to its popularity, so that the customers are impressed and motivated to buy other products.

The internet provides assistance to users in the following ways:

• Information about any topic can be obtained through the world wide web. 
• News available in leading newspapers and TV channels can be read or seen. 
• Messages can be exchanged using e-mail. When two parties are connected to the internet, the mutual conversation can be made and messages can be exchanged. 
• Files, pictures, animation, etc can be transferred to another location. 
• The menu of products and services can be searched to obtain information about an online purchase. 
• Website regarding information about the products and services of an organisation can also be made. 

Management of people involves dealing with people of an organization on both individual basis as well as on a group basis to understand their needs/wants, working ways etc., so that a congenial environment could be ensured in the organisation.

(a) Management helps in achieving group goals: Management is required not for itself but for achieving the goals of an organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of an organisation.

(b) Management increases efficiency: The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of an organisation.

(c) Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change. Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge.

(d) Management helps in achieving personal objectives: A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership, management helps individuals to develop team spirit, co-operation and commitment to the group success.

(e) Management helps in the development of society: An organisation has multiple objectives to serve the purpose of the different groups that constitute it. In the process of fulfilling all these, management helps in the development of the organisation and through that it helps in the development of a society. It helps to provide good quality products and services, creates employment opportunities, adopts new technology for the greater good of the people and leads the path towards growth and development.

Each organisation is established for doing some work and the same is conducted by people. Hence, it is necessary to manage the people so that the work can be accomplished in a better way.

(a) E-Commerce

The procedure for online transaction is: 

• The first stage is before the transaction, where effort is made for promotion and giving information.
• The second stage is the actual transaction, where products are transacted after a lot of haggling.
• In the third stage, the product is delivered to the final user.

B2C commerce, as the name suggests, includes the customers on one side and business firms on another side. The exchange of products, services or information between an enterprise and customer is called the business to customer e- commerce. It denotes a financial transaction or online sale between a business and consumer, with the help of e-commerce.

The company can introduce new products on the market, also the expenditure on advertisement is comparatively lower. The customers are prone to making impulse purchases and typically make buying decisions independently. The customers can know about the merchandise products through the internet and select the same. It works 365 days, 24×7 and also provides information and own products like software film, music. And they can pay through e-banking, Debit Card, Credit Card or through any other means.

Companies are coming closer towards their customers because, by this method, the companies are giving them their needful. Companies tend to know about the needs of their customers through an online trading system.

Customers can, any time, call the call centres and ask for a resolution of their problems and can also register them.

The buyer has to register himself online with the seller, in which the indicating (password) word of the buyer’s account has to be given. This password is known only to the buyer and seller, and to no one else.

Management plans the tasks and strategies for employees of an organisation to achieve predetermined goals.

It means that it is not a single person (manager) who consummates the whole process of management but it is conducted by a group of persons (managers).

The trend of online marketing has been growing rapidly since the last decade. It is taking an extensive form, growing from important cities to smaller towns and semiurban centres in terms of online trade. 

Online marketing may have to go through three stages on the basis of its trends –

1. Pre-Sale-Purchase Stage – It includes propaganda and publicity information. 

2. Sale-Purchase Stage – 

Except delivery stage, all other stages involve a flow of information. Information exchange is also done through traditional business system, but it takes place with serious obstruction of time and investment. Internet, however, is free from all such obstructions. The delivery can be given online in case of information-intensive products and services. 

3. Delivery Stage – 

Except for the delivery stage, all the other stages involve a flow of information. Information exchange is also done through traditional business system, but it takes place with serious obstructions of time:

(1) Registration – 

The buyer has to register himself online with the seller, in which the indicating password of the buyer’s account has to be given and the shopping cart protects your password. This password is known only to the buyer and the seller, and to no one else. 

(2) Sending Order — 

You can select the product of your choice from the shopping cart which is an online record of all the available products. After selecting the product, you can exit and select your payment option. 

(3) Payment System – 

The buyer can select one of the following options of payment. 

(a) Cash Payment on delivery. 

(b) Cheque payment on delivery. 

(c) Net banking transfer – Transfer of payment into the bank account provided by the seller before delivery. 

4. Credit and Debit Card – 

It is known as ‘Plastic Money’. A credit card gives the facility of credit buying to the holder. The amount of debt on the cardholder is taken upon itself by the issuing bank and it deposits the amount of transaction, while a debit card allows the user to buy up to that limit to which credit balance remains in his account. 

5. Digital Cash – 

It is a form of electronic currency, which exists only in cyberspace. In this, first of all, you’ll have to deposit the amount in a bank (through cheque/draft, etc.) which is equal to that digital cash which you need to credit in your favour. After this, the bank conducting e-cash transaction will send you a specialised software (which you can download onto your hard disk) which gives you the permission to make digital withdrawals from the account in your bank. Now you can use digital funds to buy products/services on various websites. This payment system makes efforts to remove the problems related to the use of the numbers of credit cards on the internet.

All levels of  managers are responsible for coordination.

Through it harmony is established among various classes.

Because it is not a separate function of management, rather it forms a major part of all the other functions of management.

Co-ordination plays a vital role as it binds all the other functions of management. It is the common thread of all activities such as purchase, production, sales etc that runs through. Some of the basic features are as follows 

(i) Integrates Group Efforts Co-ordination brings unity to all. It gives a common focus to group efforts. 

(ii) Ensures Unity of Actions It acts as a binding force between departments and ensures that all action is aimed at achieving the goals of the organisation. 

(iii) It is a Continuous Process Co-ordination is not a one time function but a continuous process. It begins at the planning stage and continues till controlling. 

(iv) It is an All Pervasive Function Co-ordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels. 

(v) It is the Responsibility of All Managers All managers need to co-ordinate something or the other. A manager of production department needs to co-ordinate the work within his department and also with the other departments at the same time. 

(vi) It is a Deliberate Function Whatever the managers are doing in an organisation they are doing it knowingly. Co-ordination is one of the most important functions of all managers. Thus co-ordination is also done deliberately. Whatever the managers do, they do it deliberately to achieved the predetermined goals and objectives. 

Thus, we can say co-ordination is the essence of managment after analysing these points.

This statement is wrong as management does fulfil some of the conditions of profession but still lacks some other conditions or characteristics of a profession.

• Characteristics of profession do not fulfil by the management:

i. Restricted entry

ii. Professional association

iii. Ethical code of conduct

• Characteristics of profession do fulfil by the management:

i. Well defined by of knowledge

ii. Service motive

Four characteristics of profession are given below:

(i) Restricted entry: The entry to a profession is restricted through a prescribed qualification. But there is no restriction on anyone being appointed as a manager in any business enterprise. So, presently this feature of profession is not present in the management.

(ii) Professional association: All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. There are several associations of practising managers in India, like the AIMA that has laid down a code of conduct to regulate the activities of their members.

There is, however, no compulsion for managers to be members of such an association. So, presently this feature of profession is not present in the management.

(iii) Ethical code of conduct: AII professions are bound by a code of conduct which guides the behaviour of its members. AIMA has devised a code of conduct for Indian managers but there is no statutory backing for this codes. So, presently this feature of profession is not present in the management.

(iv) Service motive: The motive of a profession is to serve their client's interests by rendering dedicated and committed service. The basic purpose of management is to help the organisation achieve its stated goal. If an organisation has a good management team that is efficient and effective, it automatically serves society by providing good quality, products at reasonable prices. So presently this feature of profession is not fully present in the management.

(v) Specialised knowledge: Profession requires specialised knowledge of a particular field, which must be well defined in a formal way.

(i) Management is an art as well as a science though an inexact science.

(ii) Art is the skillful and personal application of existing knowledge to achieve desired results.

Management is an art because like any other art, it is a systematized body of knowledge and personalised application based on continuous practice.

(iii) Science is a systematised body of knowledge that explains certain general truths.

Like science, management principles are derived through observation and repeated experiments.

Since management deals with human beings the outcome of these experiments cannot be accurately predicted.

Moreover they have to be modified according to the given situation. Hence, it is an inexact science.

Yes, Management is a Science. Here, it is important to apply the characteristics of science to the management in order to find out the validity of the answer.

Following are the main points:

(i) Systematised Body of Knowledge: It is necessary for science to be a systematised body of knowledge.

Management is also a systematised body of knowledge because it has its own theories and principles.

(ii) Cause and Effect Relationship: Scientific principles always explain the relationship between cause and effect. When it is applied to management, we come to know that the principles of management also deal with it.

(iii) Based on Collection of Facts, Analysis and Experiments: After applying this characteristic of science to the management, we find that the development of management took years for the collection of facts, their analysis and experiments.

No, management is not only concerned with doing the right task, completing activities and achieving goals but also takes into consideration, the cost benefit i.e., doing the task correctly and with minimum cost.

No, management does not possess all the characteristics of a full fledged profession. The reasons go as follows

(i) Well-defined Body of Knowledge: All professions are based on a well-defined body of knowledge that can be acquired teaching – learning process. This feature of a profession is possessed by management as well. There is vast knowledge available on management in the form of definitions, concepts, theories, principles etc. 

(ii) Restricted Entry All professions: have a restriction or the entry of its practitioners. They have to acquire a specific degree to be professional e.g., LLB for a lawyer MBBS for a doctor etc. But a manager can be an MBA qualified or not. 

(iii) Professional Association: All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates a code of conduct e.g., ail lawyers have to be a member of Bar Council to practice law. It is not compulsory for all managers to be a member of AIMA.’ 

(iv) Ethical Code of Conduct: All professions are bound by a ethical code of conduct which guides the behaviour of its members. But as it is not compulsory for all managers to be members of AIMA, they all may not be aware of the prescribed code of conduct of AIMA. 

(v) Service Motive: All basic motive to serve their client’s interest, e.g., -lawyers to get justice for their clients, doctors to treat the patients etc. All managers also work in a manner where by they show their effectiveness and efficiency in the form of good quality goods provided to the customer at a reasonable price. Thus, management possesses some characteristics of a profession but not all.

Four characteristics of profession are given below:

(i) Restricted entry: The entry to a profession is restricted through a prescribed qualification. But there is no restriction on anyone being appointed as a manager in any business enterprise. So, presently this feature of profession is not present in the management.

(ii) Professional association: All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. There are several associations of practising managers in India, like the AIMA that has laid down a code of conduct to regulate the activities of their members.

There is, however, no compulsion for managers to be members of such an association. So, presently this feature of profession is not present in the management.

(iii) Ethical code of conduct: AII professions are bound by a code of conduct which guides the behaviour of its members. AIMA has devised a code of conduct for Indian managers but there is no statutory backing for this codes. So, presently this feature of profession is not present in the management.

(iv) Service motive: The motive of a profession is to serve their client's interests by rendering dedicated and committed service. The basic purpose of management is to help the organisation achieve its stated goal. If an organisation has a good management team that is efficient and effective, it automatically serves society by providing good quality, products at reasonable prices. So presently this feature of profession is not fully present in the management.

(v) Specialised knowledge: Profession requires specialised knowledge of a particular field, which must be well defined in a formal way.

(i) Management is an art as well as a science though an inexact science.

(ii) Art is the skillful and personal application of existing knowledge to achieve desired results.

Management is an art because like any other art, it is a systematized body of knowledge and personalised application based on continuous practice.

(iii) Science is a systematised body of knowledge that explains certain general truths.

Like science, management principles are derived through observation and repeated experiments.

Since management deals with human beings the outcome of these experiments cannot be accurately predicted.

Moreover they have to be modified according to the given situation. Hence, it is an inexact science.

‘Process’ means series of primary function or activities that management performs to get things done.

No, management does not possess all the characteristics of a full fledged profession. 

The reasons are as follows. 

1. Well-defined Body of Knowledge: All professions are based on a well-defined body of knowledge that can be acquired teaching – learning process. This feature of a profession is possessed by management as well. There is vast knowledge available on management in the form of definitions, concepts, theories, principles etc.

All professions have a restriction for the entry of its practitioners.

They have to acquire a specific degree to be a professional e.g., LLB for a lawyer, MBBS for a doctor etc. But a manager can be either MBA qualified or not.

2. Professional Association: All professions are affiliated to a professional association which regulates entry, grants certificates of practice and formulates a code of conduct.

e.g., All lawyers have to be a member of the Bar Council to practice law. It is not compulsory for all managers to be a member of AIMA.

3. Ethical Code of Conduct: All professions are bound by an ethical code of conduct which guides the behaviour of its members. But as it is not compulsory for all managers to be members of AIMA, they all may not be aware of the prescribed code of conduct of AIMA.

4. Service Motive: The basic motive of a profession is to serve their client’s interest, e.g., for lawyers to get justice for their clients, doctors to treat the patients etc. All managers also work in a manner where by they show their effectiveness and efficiency in the form of good quality goods provided to the customer at a reasonable price.

Thus, management possesses some of the characteristics of a profession but not all of them.

Management is an art as well as science though an inexact science.

Management is an art:

Art is the practical application of existing knowledge to achieve desired objectives. It requires theoretical base, has personalized application and based on practice. Management is also an art because like art, it has a lot of literature as theoretical base, managers apply theoretical knowledge differently and can embellish their knowledge with practice.

Management is an inexact Science:

Science is a systematised body of knowledge, based on experimentation and has universal validity.

Management is also a science because like science, it is a systematised body of knowledge, its principles are derived through observation and repeated experimentation which can be applied everywhere. But as management is related with human beings the results of its principles cannot be accurately predicted. Hence, it is better to call management an inexact instead of pure science.