E-commerce

An argument in favor of siding with known brands for growth opportunities presented by e commerce

One reason why established brands may be best placed to take advantage of the growth opportunities presented by e-commerce is that they are likely to have the finance and other resources available to actually take the opportunity to grow with e-commerce. This is because established brands tend to be more likely to have better access to finance such as larger bank loans or even venture capitalists, this is because they could be seen as more reliable and financially stale already and so banks would be more willing to lend, and venture capitalists would see the investment as worthwhile.

Because of this, it allows the brand to build a more successful e-commerce platform. This would encourage usage by the consumers because a poor experience would put users off from using it again, therefore the availability of finance allows for the brand to make the experience better for customers by being able to respond to their needs and wants much more easily than non-established brands, who may not have the same access to finance.

For example, Domino’s spent an extra £1.4 million in the first half of 2015 compared to 2014 to improve their takeaway app for customers. This suggests that established brands recognise that e-commerce allows growth as it targets a new market through a wider platform, by engaging in market penetration therefore meaning that these brands will be likely to take advantage of the opportunities for growth.

However, one reason why established brands may not be best placed to take advantage of the growth opportunities presented by e-commerce is that non-established brands may be able to take advantage just as easily as established brands due to the lower barriers to entry. Branching out into e-commerce may not necessarily be that costly in terms of finance, for example, when building a website or creating an app, it may not necessarily cost that much as the brand would just need the initial skills to create this platform.

For example, some of the existing staff may be able to create a website that is able to support the needs of the customers willing to use it. Also, the brand would mostly need the skills necessary to enter the e-commerce market in the first place and this wouldn’t always require finance as there now may options of advertising and entering the market in ways that are completely free, or only cost a small fee e.g. GoDaddy allows websites to be created and made functional for £1 a month.

However, it could be argued that just because the website or other platform is there, it doesn’t mean that the customers will necessarily use it especially if it is not attractive, or hasn’t been promoted enough to attract the right amount of customers. Also, just having the platform available to the customers doesn’t mean that it will be successful, HMV now uses multiple different discounts across their whole website most of the time to attract customers after a large decline in sales in the physical retail outlets.

In contrast, one reason why established brands are not best placed to take advantage of the growth opportunities presented by e-commerce is because those brands which are established may not actually be able to grow if they are already the leader in that particular market, making it impossible for them to grow without becoming a monopoly and breaking competition regulations.

If they are considered to be too large, then they are unable to take advantage of the opportunities presented by e-commerce as it would break the law. For example, Tesco was unable to buy out certain amounts of Netto stores in the UK because this would have put them at an unfair advantage compared to the rest of the supermarkets in the UK, thus breaking competition regulations and becoming illegal to do so.

However, this would depend on the size of the brand before they wanted to grow because not all established brands are large in size, for example, many may consider a smaller local business to be established if they had been running for many years and were successful. Also, some larger brands could be considered not to be established, such as Uber, although it is a well-known brand it could be considered to not be established since it is still relatively new to the market.

Overall, I believe that established brands are best placed to take advantage of the growth opportunities presented by e-commerce. However, I also believe that non-established brands are just as likely as established brands to take advantage of this due to the fact that there are low barriers to entry and it may be a way for them to actually become an established brand through the platform of e-commerce. For example, although many supermarkets in the UK are considered to be established already, their sales through online shopping has allowed brands such as Asda and Tesco to massively grow in terms of sales.

However, it could be argued that if customers are just moving from physical retailers to e-commerce that this is not growth since the sales would simply be from a different platform, not necessarily increasing. In conclusion, as I previously said, this would depend on factors such as the size of the brand before they attempted to grow through e-commerce as those which are larger would be more likely to be successful in e-commerce due to an existing customer base and so would be best placed to take advantage of this opportunity.

However, the main argument is what is actually considered to be an ‘established’ brand as many small businesses would consider themselves established even if they are not well known nationally or internationally, and some larger brands may not be considered to be established by the public.

Marks & Spencer and Vodafone are both listed on the London Stock Exchange and if a certain investor wanted to put his money in either of the two shares, then he would have to carry out a number of analyses to find out which of these two shares would yield a higher return. The two companies belong to different industries. Marks & Spencer conducts business in the consumer goods industry and Vodafone conducts business in the telecommunications industry. Thus the analyses would have to focus on not only the different internal structure specific to each company but also on the industry dynamics that are specific to each company.

A comparison of the two analyses would reveal which of the two companies would continue to generate greater profits in the next five years. Whichever company has the greater positive expectations of the future would be a better buy. Porter’s five forces analysis A company’s business performance is not a world of its own. It operates in an industry the performance of which will affect the performance of its own operations. It happens rarely that one business organization can alter the course of an entire industry. One of those rare cases is the software industry which Microsoft dominates.

Microsoft has such a commanding presence in the software industry that whatever it does has a major impact on the industry as a whole and the other players in the industry have little choice but to follow its lead. In the consumer goods industry however, in which Marks & Spencer operates, the situation is hardly that simple. The consumer goods industry is a highly competitive industry and therefore Marks & Spencer on its own will not be able to make an impact to the extent that it can turn the whole industry around assuming that the industry is not doing so well.

Therefore the five forces analysis will have to be conducted rigourously to make sure that the future projections concerning the company’s profitability are reliable. In the case of the consumer goods industry, barriers to entry are very low. This has happened because of the emergence of the e-commerce business model which Amazon. com pioneered. Because most of the consumer goods can be sold online, capital expenditures have been brought down to a minimal. A company like Amazon. com does not have to invest billions of dollars in renting space.

It does have to maintain distribution warehouses, but then those companies in the consumer goods industry which do not conduct operations online or which, at the very least, jumped on the internet bandwagon a bit late in the game and are currently selling online and the traditional way concurrently, have to maintain not only the distribution warehouses but also miles of space for brick-and-mortar department stores. This nearly doubles operating expenses for companies like Marks & Spencer. Therefore, the low barriers to entry are definitely a threat for MarksSpencer.

The remaining four forces of Porter’s industry analysis do not present a brightly glowing prospect either. There is the threat of substitutes which is a very real threat indeed for the company. Consumer goods like sports equipment are widely available resulting in the fact that consumers shopping for sports equipment have a wide array of choices. When this happens, majority of the consumers look for price rather than quality. Therefore whichever company can offer these goods at the lowest price will attract the greatest number of customers.

E-commerce companies are in the best position to do that. Amazon. com, which developed the e-commerce business model to the level of popular support that it enjoys today, sell their products at a much lower price than its counterparts following the traditional business model are in a position to. Because operating expenses at Amazon. com are minimal compared to those that traditional business models like MarksSpencer have to bear, Amazon. com can get away with charging very low prices.

For the same reason, MarksSpencer is not in a position to set a price that will compete effectively with those set by the businesses like Amazon. com doing their businesses exclusively online. Because the operating expenses of maintaining department stores are high, the company will have to set proportionately higher prices and that will not work in the company’s favour. By the same token, threat of competition facing MarksSpencer is not to be taken lightly either. Low barriers to entry and the high threat of substitute products ensure that the consumer goods industry will never be short of competition.

This is good for the consumers but not for MarksSpencer. The fact that consumers welcome competition and suppliers like MarksSpencer do not and the additional fact that there is a high level of competition in the consumer goods industry ensure that as far MarksSpencer is concerned, buyers will be enjoying higher bargaining power than suppliers. Consumers in this industry enjoy so much in terms of choices that any company which seeks to set a slightly higher price than the industry average stands to lose market share drastically.

Introduction/History of Plastics

Susan Franklin, the former instructor at Seattle Pacific University of Washington DC, has written a book on the history of plastic. She says that before the plastic was invented in the world there were natural fibers like cotton, wool, jute and rubber. Apart from this, arrangements were made to keep or carry anything with the help of glass, animal skins and horns.

The first man-made plastic was invented by Alexander Parkes, who was a metallurgist and inventor from Birmingham, England. He created Parkensien, the first man-made plastic in 1855. Plastic is one of the most revolutionary inventions of human history. This substance made by chemical reaction is very strong, easily molded in any form and is not going to perish for several thousand years.

It was invented due to these features but these features have now become the biggest threat to nature. Have you ever thought that if plastic is completely eliminated from this world then what will be its effect on our life? But it is now mandatory to impose a ban on plastics because it damages the environment to a great extent and causes a significant damage to the flora and fauna on the Earth.

Ban on Single Use Plastic in India

After big schemes like Swachh Bharat and Har Ghar Jal, now Prime Minister Narendra Modi has officially launched a campaign to end the use of single use plastic in the country. In fact, on 15^th August, 2019, on the occasion of 73rd Independence Day of India, PM Modi in his speech from Red Fort announced to free India from plastic pollution.

He has appealed to the people of the country and especially the shopkeepers and traders to contribute in this direction. The Prime Minister said that the campaign to free the country from plastic waste will be started simultaneously in the entire country from the birth anniversary of Mahatma Gandhi i.e. 2^nd of October, 2019. Indian Railways has already started a massive campaign to free the country from single-use plastic.

Now officially PM Modi has launched a campaign against it. But the question is that, what is single-use plastic and what plastic products come under its realm?

The Possible List of Six Items that will be Banned in India

• Plastic carry bags
• Plastic cups and plates
• Plastic wrappers
• Plastic bottles
• Plastic straws
• Certain types of plastic sachets used in packaging

What is Single-Use Plastic?

Single-use plastic means, the plastic which is used only once. In other words, the disposable material made up of plastic and is thrown after its use, can be described as single use plastic. In everyday life, there are many such plastic products that we throw at once after using them. A similar plastic is called single use plastic. It is also known as disposable plastic.

Talking about single-use plastic products, it includes – plastic bags, plastic bottles, straws, cups, plates, plastic used in food packaging, gift wrappers and disposable cups of coffee and tea etc.

There is 300 million tonnes of plastic production every year. Of this, 150 million tonnes of plastic is single-use. That is, we throw this plastic once used. At the same time, only 10 to 13 percent of the plastic can be re-cycled worldwide.

Announcement of Clean India Mission on Gandhi Jayanti

The Prime Minister has appealed to free the country from plastic waste by hoisting the tricolor from the ramparts of the Red Fort. Even before this, he had started the Swachh Bharat Abhiyan on the occasion of Gandhi Jayanti, which was appreciated not only in the country but in the world as well. Its effect was also widely obserevd. This time the Prime Minister has appealed to free the country from plastic waste under the Swachh Bharat Mission. For this too, he has chosen the occasion of Gandhi Jayanti. He said that the government will make the country free from single-use plastic.

PM’s Appeal to the People

PM Modi appealed to the people to collect all the single use plastic from 2^nd October, 2019.  He suggested, submitting all the plastic to municipal corporation or sanitation workers and help in freeing the country from single use plastic. He informed that the plastic that will be collected from common people will be recycled and used in various ways. He said that plastic is causing various problems not only in the country but also around the world. Therefore, common people will have to launch a campaign of liberation from it.

Special Role of Traders and Shopkeepers

The Prime Minister has appealed to the merchants and shopkeepers to give their full contribution in making the country plastic free. Their special cooperation from them is needed to free the country from the pollution of plastics. They should have to come forward to eradicate this big and burning problem that not only affects the country but also affecting the world environment.

The Prime-Minister told the shopkeepers that they display several types of advertisement boards on their shop. He suggested them to display a new board on their shops for the people that one cannot ask for a plastic bag from them. He advised the shopkeepers and traders to gift a bag that is not made up of plastic on the occasion of New Year and festivals like Deepawali instead of diaries and calendars that they give as gifts.

The Poor will Get Financial Help by the Ban on Single Use Plastic

The Prime Minister said that freeing the country from plastic will not only provide relief from environmental pollution, but can also help the poor families and widows by making and selling clothe and jute bags. This will change their lives. They will get financial help after selling these bags. This will add to their income.

E-commerce Companies Consume 40 Percent of Single Use Plastic

E-commerce companies are in the forefront of single plastic use in India. According to an estimate, about 40 percent of the plastic is used in the e-commerce sector. Actually, e-commerce companies, including smart -phone companies, deliver more of their product to the customer in the packets wrapped in plastic sheets, so they use plastic more. However, companies like Amazon, Flip-kart and other companies who sell their products online have also taken initiatives to reduce the use of plastic.

Why is Single Use Plastic Going to be Banned?

The declining environment due to climate change and global warming is the biggest concern for the world at this time. In such a situation, plastic pollution prevention and plastic waste management has emerged as a major issue. Several lakh ton of plastic is being produced every year, which is not biodegradable. It does not dissolve in soil easily and harmful for the soil fertility as well as leaves after affect on all living beings directly or indirectly.

Most plastics are not biodegradable and at some times plastics break down and release toxic chemicals. Such chemicals reach our body through water and food materials and cause serious problems. Therefore countries around the world are devising stricter strategies to end the use of single-use plastics.

Reasons to Ban on Plastic Bags

Although there are many reasons why plastic bags should be banned and due to this many countries have taken strict steps to reduce the use of plastic, some of these reasons are explained below:

• Land and water are constantly polluted by the waste that is spread through plastic bags.
• Due to plastic, there has been a threat to the terrestrial and aquatic animals.
• Chemicals released from waste plastic bags mixed into soil and make it unfertile and convert the fertile land into barren.
• Plastic bags also have a bad effect on human health.
• Plastic bags also choke the drains, sewage and sewer.

Bad Effects of Single Use Plastics due to Chemicals Used in Manufacturing it

Plastic bags consist of many toxic chemicals that cause great harm to health and environment. Chemicals such as xylene, ethylene oxide and benzene are used to make plastic bags. These chemicals cause many diseases and various types of disorders in human and animals.

Plastics are also very harmful to the environment, causing harm to humans, animals, plants and all living things. Toxic chemicals and poisonous gases are emitted by burning and throwing away plastics. The most dangerous Methane gas is emitted that is the main cause of the depletion of the Ozone layer that intensifies the global warming and climate change process.

India has Waged the War

India has waged a war against plastics for above reasons. Single-use plastic is being banned under the first phase. In the second phase, the remaining single-use plastic will be collected and recycled. The government is also going to impose a fine on the use of single-use plastic, but this step will be taken six months after the ban. This is so that they get a chance to explore its alternative options. Some states of the country have already banned the sell, use and storage of single-use plastics.

In this regard, the Ministry of Environment has issued an advisory in the month of August, 2019. The advisory states that plastic products such as artificial flowers, banners, flags, flower pots, water bottles, stationery items etc made up of plastic should not be used in places like government offices, public places, private company’s offices, shops, hospitals, airports, and railway stations and platforms etc.

Countries that Banned Plastic Bags

Many countries around the world have either banned plastic bags or imposed heavy taxes on them to reduce their use. This includes countries such as Tanzania, Kenya, Uganda, South Africa, Morocco, Malaysia, Bangladesh, Taiwan, England, Germany, Hawaii, New York, Italy, Scotland, Rhode Island and Maine. These measures have helped to overcome the problem of plastic bags to a great extent.

But this problem has not been completely resolved yet because these measures have not been implemented properly. Plastic bags are still available in the black market in some of these countries and are still being used illegally.

Some Measures Taken by Developed Countries to Control on Single Use Plastic

In some developed countries and in India too, special dust bins are put in places to throw out the waste in the form of plastic. Non-biodegradable waste is kept into these bins which are further carried for recycling.

The used plastic products should be thrown with a great care because it takes a long period of time to diminish and damage the environment in various ways. Unjust throwing of plastic materials not only can be consumed by the animals that lead them to death but also damages the fertility of the soil.  Whether it is thrown or buried in the ground or thrown in water, its harmful effects are not reduced.

In Many places in India it is a common scene that the heaps of the plastics are burnt by the local authorities to reduce its volume that also affects the respiratory process when inhaled and create harm to the environment at a large extent.

Public should Support Plastic Ban

Although plastics have been banned by the Government of India in many states, people are still seen using them. Whenever government authorities start taking initiatives, the shopkeepers stop selling items in plastic carry bags for few days and again start the practice when the intensity of checking slowed down. No concrete steps are taken by the government regarding the manufacturing of plastic bags.

Now this is the time of action when people also need to contribute to make this ban a success. The educated people can carry out their responsibility in this context, should stop the use of plastic and motivate others for it.

Below are some ways to support the government in this matter by the common people:

• By Control Access: People are in the habit of using plastic bags, it is difficult for them to stop using plastics at once. To be successful in this scheme, people have to become conscious of its adverse effects on the environment and must control its use. By taking pledge for not using plastic further and keeping a jute or cloth bag while going for shopping will make a change in habit.
• By Adopt Options: Apart from plastic, there are many other environmentally friendly items that people can use. Instead of plastic bags to bring goods from the grocery store, people can take clothes or jute bags that can be used again and again while going to the market.
• BY Reuse: People should use the plastic bags lying in their house as many times as possible before throwing them.
• By Spreading Awareness: Apart from this, the government should also create awareness among the people about the negative impact of plastic bags among the people and it should be banned by publicising and spreading information about it verbally or through electronic media among people.

Conclusion

The use of plastic in our daily life has increased so much that it will not be easy to ban it suddenly because sometimes customers have no option other than the use of plastic. Therefore, we have to look for some eco-friendly alternatives to produce biodegradable and compostable plastics to reduce its utilization. In addition, the most important role in making the single use plastic ban campaign successful will be the local bodies. These bodies will have to be fully prepared in this regard.

However, the success of any law or campaign depends on how much the general public participates in it. Today we have come so far in the race of modernity that it is difficult to completely eliminate the use of plastic, but its use can definitely be reduced. Also, its disposal can be better arranged.

1. What does the name WebDesPix Ltd tell you about the ownership of the company?

It tells us that it is a private limited company; this means that it is in the private sector and it must have the letters ‘Ltd’ after its name. The main features of a private limited company include:

* It is owned by the shareholders.

* It is controlled by the board of directors.

* It is managed by appointed managers.

* Finance can be gained by borrowing from banks or selling shares.

* The profits go to the shareholders of the company, in the form of dividends.

2. Give (2 or more) reasons why they may have decided on this type of company?

This type of business is more expensive to set up than a sole trader or a partnership, however:

* It carries less financial risk for the owners as they have limited liability, which means that if the company goes bust, they only lose the amount of money that they invested in the company and not their personal possessions.

* Limited companies are also incorporated which means that the company has a separate legal identity from its owners. Which means that it is the company that can be sued or sue, not the owners.

* It also gives the company greater continuity because its existence is not ended by the death or retirement of its owners.

3. Tom and Dee are shareholders. What does this mean?

* It means that Tom and Dee are the people who invest money in the company by buying shares, and are therefore called shareholders. It also means that they are the owners of the company.

* By buying shares in the company Tom and Dee are entitled to a share of the profits known as dividend. How much dividend a shareholder receives depends on how well the company is performing, the type of share they own, and the number of shares they own.

* This also means that as they are shareholders they can elect people to the board of directors to represent their interest and be responsible for the long term strategy of the company. The directors will then appoint managers to be responsible for the day-to-day running of the company. Also, some managers may also be directors and are known as executive directors. In a private limited company the major shareholders, board of directors and managers may all be the same people.

4. They have an overdraft facility. Explain how an overdraft works and say what they might use if for.

An overdraft is when a business draws more money from its bank account than it currently has in the account. It has permission from the bank, which sets an agreed limit called an overdraft limit.

Interest is payable on the overdraft and this is calculated on a daily basis. An advantage of an overdraft is that money is only borrowed when needed; this means that interest is only paid when the bank account is overdrawn.

The big disadvantage about an overdraft is that the bank can insist that it is repaid immediately.

However, because of its flexibility an overdraft is probably the most frequently used way to solve a cash flow problem.

The table shows the advantages and disadvantages of overdrafts:

Advantages of overdrafts

Disadvantages of overdrafts

Flexibility-can change the amount borrowed within limits.

Cannot be used for large borrowing.

Interest is only paid on amounts borrowed.

Rates of interest higher than loans.

Bank can change limit at any time or ask for money to be paid sooner than expected.

Used for anything wages, computer repairs etc

5. List 4 products the company offers.

* Web design is still the core business of the company, but new services are also offered.

* Electronic newsletters.

* Domain registrations.

* Hosting and search engine optimisation.

* The company offers three standard web design packages, this is

-budget at �800

-professional at �1000

-and executive at �1500

Each package provides a number of web pages, e-mail facilities and the cost of hosting the site.

* WDP (WebDesPix Ltd) give a quotation to clients who require non-standard packages (a quotation is just an estimated price for job or service).

6. All their products are marketed online. Explain 3 advantages of this when compared to selling from a shop on the high street.

Firstly, buying and selling products online is called e-commerce. The advantages of this include:

* Websites can be used to reach wider markets; this means that the internet provides extra marketing possibilities.

* The internet can be accessed all over the world-this makes it possible to target potential customers in foreign countries.

* A company can put marketing material on its own website, or it could pay to advertise on other websites.

* A good website can really help a firm’s competitiveness and increase its market share.

* Firms can market and sell goods through their website 24 hours a day, 7 days a week (’24/7′).

* By using the strategy of marketing and selling ’24/7′, it can give e-commerce firms an advantage over the traditional 9-5 businesses, as customers can shop at home, at a time which is convenient to them.

7. The company wants to build up their brand name. List 3 advantages of having a strong brand name.

* Businesses will hope that this leads to brand loyalty, where customers will repeat-buy because they prefer the look, taste, quality or image of their products.

* If the company’s name becomes established with one product, it may encourage customers to buy different products bearing that name.

* Customers can be reasonably sure about the quality they will get with branded goods.

8. What are overheads?

Overheads (also called fixed costs or indirect costs) are costs which do not change whether the business produces lots of goods, or produces no goods at all. These are costs which still have to be paid, regardless of output. For example, the rent on a shop will still have to be paid, whether or not the shop has any customers. Examples of overheads are:

-interest payment on loans.

-managers’ salaries.

– Rates payable to the local council.

-rent of premises.

-gas

-electricity

-telephone costs

-administration costs

– and advertising

9. Explain why the company has relatively small overheads.

The company has relatively small overheads because it is labour intensive.

* It builds and upgrades its own computers.

* Vacancies are just advertised on the company’s website and at regular networking meetings with other businesses in the Bristol area.

10. List 2 factors which influenced the company to locate in Bristol.

* They could have run the company from anywhere in England, but as they were all from different parts of the country it was easier to locate in Bristol where they had all studied (it was more convenient).

* Bristol is a large city with good infrastructure, so transport is not a problem.

* There is a university in Bristol, so the business is close to an educated working force.

11. List 3 non-financial fringe benefits available to the employees.

* Free lunch each Friday.

* The use of a Wii during their breaks.

* Free health insurance after six months employment.

12. Give 2 reasons why the company gives fringe benefits.

* To motivate their employees so that they feel valued by the company and are therefore more productive as well.

* Helps attract and retain better qualified employees.

* Improves efficiency and productivity as employees are assured of security for themselves (as well as their families).

13. Some employees receive a monthly bonus based on turnover. Explain bonus.

Full-time employees receive a monthly bonus based on turnover. A bonus is a monetary reward. It can be paid within both the time rate and piece rate systems. Under the time rate system, a bonus is paid if the workers reach their production targets, which could be hourly, daily or weekly targets.

14. Explain one advantage of giving these employees a bonus.

-this encourages workers to work at their maximum output, and so overcome the problem of the lack of incentive. It also increases the productivity, efficiency and motivation of employees, which may also increase their happiness.

15. Give one disadvantage of giving them a bonus.

The disadvantage is that the employees expect a bonus and moral drops sharply when the bonus is not paid.

16. The 2 sales assistants receive commission in addition to their salary. Explain commission.

Commission is a monetary incentive that the company can offer in addition to their basic pay. It is a payment to people who are employed in selling the products or services of a business.

17. Explain one advantage of giving these employees commission.

This system ensures that employees have to work hard to earn their pay, but if they are successful, their earnings can be unlimited.

18. Give one disadvantage of giving them commission.

If they fail to meet the required turnover or sales figures, they receive no commission.

19. List 2 advantages of using email.

* It is quick and easy to send emails, as it allows communication easily over a number of sites.

* People can keep in touch very easily-as many messages can be sent.

* Messages can also be keyed-in and stored until they are needed.

* One email can be sent to a number of different people at the same time.

* They are very convenient, as multiple attachments can be sent.

* It is easier to refer back to emails rather than looking through different pieces of paper.

20. Explain why the company might use video conferencing.

Video conferencing is fast becoming more and more popular with companies. It involves using computer links and closed-circuit television, allowing people to hear and see each other.

The advantages include:

* Saves people travelling to meetings.

* Large savings can then be made in terms of time and cost.

* Face-to-face communication is possible rather than using telephone or letter.

If a person decides to make the purchases of an item online there are a few facts that should be realized. In the economy that today’s society is in savings is a big deal for most. When shopping online the shopper will be required to purchase their items with credit cards. Credit cards can be very convenient a shopper however, they come with payments and interest. When calculated out a shopper can look at 10 percent on purchases made. Knowing this and how long it can take to pay debt off may make a person think twice about the purchases that are made.

On average 5,000 dollars will take 10 years to payoff. Once the shopper has ordered the Items shipping will be estimated. One transaction online can cost a person an extra 10 Lars In shipping, followed by at least 10 dollars In a small purchase for Interest on the credit card. The shopper also has the choice to go Into the stores to make the purchases needed. These purchases can be made with a variety of payments including cash, gift cards as well as credit cards. Most people know how much they are willing to spend on an item and very seldom want to spend more.

If a going into a store with cash you are ensured you will not spend more, or incur any hidden fees. When paying with cash it can be asked if a discount is available, a person would be pleasantly surprised at the savings offered. In store shopping offers other means of savings as well, coupons are a big tool that stores supply to have the public come into their establishments. Now if a company like Kohl’s for Instance offers additional savings If a credit card Is used, once again the shopper Is saving usually an additional 15 percent.

The trick to shopping In stores with credit cards Is to turn around and make the payment right there Is In the store. This would require that the customer had the intention of paying with cash to save money, and in the end this would save a customer even more than thought of in the beginning. More thought should go into why one would choose not to shop online versus shopping in the store. Today the country is seeing a lack in jobs, and people needing work. For every purchase a person makes online it is taking more jobs away.

Shopping online one does not need a sales clerk, cashier, janitor, supervisor, and manager to make the purchases. All one needs is to have access to the Internet, and fingers. Placing orders online also can take away from local vendors, not Just corporations. If online most likely you will be ordering from companies that purchase teems from overseas, yet again taking money away from the American economy. Now if shopping for electronics Is what a person Is doing corporate shopping will be needed; however, doing It online takes more Jobs away.

When thinking about making a purchase for a television most would only think tout want ten Test price Is Tanat can De Taunt. IT ten economy were outing tout a few things would cross the mind of an individual. One big item is if the store wasn’t open it would be an empty building, owner looses money, electric company looses money, and the people that would normally work there are trying to find a Job amongst all the other Americans. Going out shopping in person can offer a great deal of benefits too community. This allows the shopper to purchase locally grown and locally made items.

When thinking that corporate gifts are needed for Christmas or birthdays’ people can think out of the box and get creative. How many people would want to receive a massage, car wash, oil change? These are all options for in store shopping, thus keeping money in the local economy. Shopping online can also bring up a few worries will the item fit will it match, or will it live up to expectations of the purchaser? When ordering clothing online a errors does not get to try on the clothes, this leaves one hoping it is going to fit correctly and the way it was expected to fit.

If a person decides that the bathroom needs to be redecorated and spends four hundred dollars online doing this, gets the items in the mail to be upset that it does not match as well to the tile. Problems like this can occur at anytime when the items are not seen in person. In order for a one to be sure that what is wanted is what one gets it is best to use the senses in making the purchase. To use senses in making a purchase being present is required. This would even go for purchasing a television, seeing the efferent screens on will help a shopper to decide which one would be best.

If wanting to purchase a new dress trying it on will show rather the look is what is wanted or not. The same theory applies to making purchases for a home, the items can be brought in and placed where it is wanted and then decided upon if it should stay or go back to the store for a replacement. Questions can now be asked knowing the differences on the two forms when deciding which form is best for the shopper. When deciding to make a purchase each person will need to decide what matters most, convenience or helping to boost he economy, and staying local with each purchase.

The supreme mortgages crisis In October 2007 affected Callback as Collector Incurred losses of $9. 83 billion for the last quarter of 2007. The ever-changing global economy encourages CitiBank to be more innovative to respond to new trends and customers’ needs. It is an era of tough competition in which CitiBank has the duty to find ways to always increase operating efficiency while maintaining or even improving services to customers. There Is a rapid change In technology that requires CitiBank to respond to new customers’ demand.

For Instance, businesses demanded electronic Invoicing, automatic application of payments to accounts receivable and online payment guarantees. Due to the tough competition environment, if CitiBank is not able to provide such services, other banks could steal their customers. The Internet is probably the most important feature in the banking industry. Customers now prefer to run their transactions online because it Is more efficient and less time consuming.

Citibank knew that this was vital to their success, and their balloons was to become the world’s leading e-business enabler. Indeed, technology investments In the global financial service industry were growing at a rate of 4. % per year. CitiBank then implement an e-business strategy to deliver on its vision. 2. There are barriers to new entrants in the financial services industry, especially on the global market stage. Deutsche Bank and Callback were actually the two leading banks that Invested heavily in monitoring cash balances online.

It requires a lot of Investment from other banks to be able to compete with these two giants of the industry. However, CitiBank is faced with a low level of rivalry from some Macs that build their own systems and look for ways to disintermediation banks. Also, several genealogy companies compete heavily by using their technological expertise and interests in providing new services. It exists a high bargaining power of customers because their needs and expectations are changing rapidly. Indeed, In the financial services Industry, customers are everything.

The bargaining power of suppliers Is medium due to the ability of CitiBank to acquire Lava Trading and other major electronic savvy companies in order to offer its institutional clients the benefits of the most sophisticated and robust electronic trading system in the market. There are no bustiest products in the financial services industry, and for the reasons mentioned above, this industry is unattractive if one is a new comer. However, for Institutions like Callback that enjoy a sustainable competitive advantage, It Is definitely an attractive Industry. . Among its main capabilities, CitiBank is able to manage some of their clients’ duties such as managing their accounts receivables and payable. CitiBank has been able to become not only a bank but global financial institution by building a broad customer base, offering diverse products, actively participating in the community, ND recruiting staff and senior management from the local population. Moreover, CitiBank made continuous investment in technology to provide corporate customers the most cost-effective, cutting-edge, reliable, and secure solutions.

Citibank’s core competence would definitely be its customer service. Their focus on customers enabled them to acquire a significant market share. Customers’ loyalty was driven by Citibank’s commitment to excellence in its processing business. The bank was ranked higher than its competitors in the areas of accuracy, timeliness, accessibility, and responsiveness several years in a row. . CitiBank has several strengths, which include a global network, an innovative product offering, and an experienced staff group.

Indeed, the bank operated in 100 countries, it offered a wide variety of products and services, and employed over 268,000 employees from which Transmission was staffed by world-class employees with expert knowledge of financial data. According to the case, CitiBank didn’t have many weaknesses. However, I could identify increased operating costs of between 2005 and 2006 that caused the laying off of 17,000 positions. On the other hand, there are opportunities available to CitiBank. The world’s largest market, China is now liberalizing its market, giving CitiBank opportunities to enter this market.

Also, CitiBank can improve its online presence because it has been more focused on the US market, which is actually its largest. However, with the BIB transfers, Citibank is able to expand its international activities. Like any other financial institution, threats come from foreign exchange fluctuations, unstable market conditions, and regulators. CitiBank also has to face competition from technology companies that use their expertise to provide new services. For now, CitiBank enjoys a sustainable competitive advantage until another bank is able to replicate what they are doing best on a global level.

The source of this sustainable competitive advantage is their ability to reach a wide array of customers by offering a customer service of excellence but also a wide range of products and services. I think that what may hinder CitiBank to go forward might be the high costs associated to technology investments in the global financial service. It is growing at a significant rate per annum, obligating CitiBank to spend a lot of money acquiring new technology and getting rid of its people. It could get to a mint where talented employees do not want to work for CitiBank fearing lay offs. . CitiBank;s customers include Macs, financial institutions, government sectors, local corporations, and Seems. The bank has opportunities in other markets like China, India, and the European market. Indeed, in other countries the Internet on the cell phone is used differently. It is very common to see people making through their cell phones. CitiBank should target some of their services to this particular group of customers. Instead of putting a big emphasis on its corporate customers, It snouts also consoler making e rots to meet Uninominal customers’ needs. . CitiBank;s e-business strategy is based on the banks objective to become the world’s leading e-business enabler. It adopted this strategy because it wanted to empower local, regional, and global customers and the business-to-business-to- consumer marketplace and provide solutions to help them take advantage of the efficiencies and opportunities created by e-commerce. The challenge will be to keep its operating costs at a reasonable level because technology investments in the global financial service industry are constantly increasing. Another challenge was for

CitiBank to translate its traditional strengths to the Internet in a way that would add value for its customers. CitiBank was able to integrate products in new ways, build a new global infrastructure to deliver products and services online, and deploy Web- enabling access points to allow customers to connect seamlessly to the bank. I think that CitiBank will be successful as long as they take advantage of all the opportunities available with the Internet and technology. If it wants to remain competitive, it has to stay ahead of its rivals in following up with new future customers trends in order to satisfy their needs.

An E-commerce Website Use Case Name: Search and browse products ID: US-I Priority: High Actor: Shopper Description: This use case describes a shopper who searches and browses products. Trigger: A shopper is looking for a specific product. Trigger Type: External Preconditions: 1 . The shopper is knowledgeable about the product he/she is looking for. 2. The website is available. 3. The advertisement and buyer account databases are up-to-date and online. Normal Course: 1. 0 Search and browse products and select product to purchase 1 .

The shopper pacifies the category of the item and the item itself to be searched. 2. The system verifies that the item is available. 3. The system generates all the products matching the search request. 4. The shopper selects a product and wants to place it in a cart. 5. The system asks the shopper to log in. (Alternative Course 1 . 1) 6. The shopper logs in his/her buyer account. 7. The system verifies the account. 8. The shopper adds the product to cart. Information for Steps Search Criteria List of approved ads Buyer Account List of Buyer Accounts New Cart Entry Modified Cart Alternative Courses: 1.

The shopper doesn’t already have a buyer account. (branch at step 5) 1. The shopper registers his/her desired surname and password. 2. The system verifies if the surname is still available. AAA. The surname is still available. AAA. The shopper has created a buyer account. Return to Normal Course Step 6. 5. B. The surname already exists. B. The system asks the shopper if he wants to continue registration or not. B. 1 The shopper wants to continue registration. B. 1 Return to Alternative course 1. 1 step 1 B. 2 The shopper cancels the request. B. 2 The system terminates the use case.

Surname and Password List of Buyer Surnames New Buyer Account Request for re-registration Cancellation Postpositions: 1 . One or more products are added to the shopper’s cart. 2. Cart has been modified. 3. The unregistered shopper has created a buyer account. Exceptions: El: Search request returns no result. (occurs at step 2) 1 . The system displays the message inform search did not match any records. Try another search. “. 2. The system starts Normal Course again. E: Buyer Account is not valid. (occurs at step 7) 1 . The system displays the message inform surname and password is not valid.

Please re-enter your surname and password. “. E: Account inputted is not a Buyer Account. (occurs at step 7) 1. The system displays the message inform account is a Seller Account. Please enter a Buyer Account. “. 2. Return to Normal Course step 5. Summary Inputs Source Outputs Destination Request for re-registration or Cancellation Shopper Active Advertisement Database Buyer Account Database Cart Database Use Case Name: Purchase products online ID: US-2 Actor: Buyer Description: This use case describes a buyer’s purchase of product(s) on his/her cart online. Trigger: A buyer wants to buy a product. . The buyer’s account is authenticated. 2. The buyer account database 3. One or more products are in the cart. 4. The buyer has specified readiness to check out and buy product(s) in his/her cart. 1. 0 Buyer confirms the intent to buy and supplies payment. 1. The buyer opens his/ her cart. 2. The system displays the cart’s contents with price(s) of product(s) included. 3. The buyer purchase product(s) via Papal. 4. The buyer entered the payment information. 5. The system verifies the payment information’s authority. 6. The buyer confirms the payment transaction. (Alternative Course 1 . 1) 7.

The system recesses payment. 8. The system confirms the payment’s success. 9. The system removes the purchased product(s) from the cart. 10. The buyer wants to view and print the recent or all the payment transaction’s report Information for Steps Purchase Authorization Cart Contents Payment Information Payment Information’s Authorization Payment Confirmation Product(s) Sale(s)’ details Payment Transaction List of Payment Transactions Payment Transaction(s)’ report(s) 1. 1 Buyer cancels payment. (branch at step 6) 1 . The buyer cancels the payment transaction. 2. Return to Normal Course 6. 1. Cart has been modified. Product(s) purchase is recorded. 3. Product(s) sales transaction is recorded. 4. The buyer has the printed reports for the recent or all the payment transactions. El: Payment Information is not authorized. (occurs at step 5) 1. The system displays the message “The payment information is not accepted. Please enter an authorized payment information. “. 2. Return to Normal Course step 4. Payment Information’s Authorization Buyer Payment Clearinghouse Payment Transaction Database Payment Transaction(sys report(s) Product Sales Database Use Case Name: Post advertisement entries ID: US-3 Actor: Seller

Description: This use case describes a seller posting advertisement entries. Trigger: A seller want to post an advertisement entry. 1 . The seller’s account is authenticated. 2. The seller is knowledgeable about the product he/she is going to advertise. 3. The 4. The seller account database is up-to-date and online. 1. 0 Buyer’s posting of product advertisements. 1 . The seller wants to post an advertisement entry. 2. The system asks the seller to log in his/her seller account. 3. The seller logs in his/ her seller account. (Alternative Course 1 . 1) 4. The system verifies the account. 5. The seller inputs the advertisement information. The system verifies the advertisement information. 7. The seller confirms the advertisement. 8. The system confirms the advertisement entry for admit approval. Information for Seller Account List of Seller Accounts Advertisement Information Advertisement Confirmation New Advertisement Entry 1. 1 The seller doesn’t already have a seller account. (branch at step 3) 1. The seller registers his/her desired surname and password. 2. The system verifies if the surname is still available. AAA. The surname is still available. AAA. B. B. The seller has created a seller account. Return to Normal Course Step 4.

The surname already exists. The system asks the seller if he wants to continue registration or not. B. 1 The seller wants to continue registration. B. 2 The seller cancels the request. List of Seller Surnames New Seller Account 1 . The advertisement entry is added to the advertisement database for admit approval. 2. The unregistered seller has created a seller account. El: Seller Account is not valid. (occurs at step 4) 1 . The system displays the message mirror surname and password is not valid. Please re-enter your surname and password. “. E: Account inputted is not a Seller Account. (occurs at step 4) 1 .

The system displays the message inform account is a Buyer Account. Please enter a Seller Account. “. 2. Return to Normal Course step 3. Seller Seller Account Database Pending Advertisement Database Use Case Name: Management of seller’s active advertisements ID: US-4 Description: This use case describes the seller viewing his/her active advertisements. Trigger: The seller wants to view his/her active advertisements. Trigger Type: External 1 . The seller account is authenticated. 2. The advertisement database is up-to-date and online. 1. 0 Managing of active advertisements 1 . The seller wants to manage his/her active advertisements. The system displays all the seller’s active advertisements. AAA. The seller edits the contents oaf specific advertisement. AAA. The system confirms the modification. B. The seller confirms the deletion an advertisement(s). B. The system confirms the modification. List of Active Advertisements Edit Information Edited Advertisement Deletion Confirmation Deleted Advertisement(s) None 1 . Advertisement Database has been modified. List of Active Advertisements Use Case Name: Sales Revenue Report ID: US-5 Priority: Low Description: This use case describes a seller viewing and printing his/her sales revenue report.

Trigger: A seller wants to view and print his/her sales revenue report. 1. The seller’s account is authenticated. 2. The product sales database is up-to-date and online. 1. 0 Viewing and printing of sales revenue report 1. The seller wants to view his/her sales revenue report. 2. The system displays his/her sales revenue report. 3. The seller confirms the print of the report. 4. The system print the sales revenue report. List of Sales Revenue Sales Revenue Report 1 . The seller has the printed report of his/her sales revenue. Use Case Name: Management of all the advertisements ID: US-6 Actor: Admit

Description: This use case describes the admit managing all the pending and active advertisements. Trigger: The admit wants to manage the advertisements. 1. The adman’s account is authenticated. 2. The admit account database is up-to-date and online. 3. The advertisement database is up-to-date and online. 1. 0 Managing of all the advertisements 1. The admit logs in his/her admit account. 2. The system verifies the account. 3. The admit wants to manage all the advertisements both pending and active. 4. The system displays all the pending and active advertisements. AAA. The admit selects and view a pending advertisement.