BCom International Communication Adopting to Global Business Notes Study Material
BCom International Communication Adopting to Global Business Notes Study Material: We provide to all the students of Bachelor of Commerce. BCom 1st, 2nd, and 3rd Year Business Communication Notes Study material, Business Communication question answer, sample papers, mock test papers, and pdf. At gurujistudy.com you can easily get all these study materials and notes for free. Here in this post, we are happy to provide BCom International Communication Adopting to Global Business Notes Study Material.
International Communication Adopting Global Business Notes Study Material
The research and development in the field of communication during the last five decades has provided vast opportunities to the business world. Due to changes and progress in the field of information technology and communication, the purchase and sale of commodities, payment, recovery of bills, and other business activities can be performed just through the internet.
A person can buy vegetables, garments, electronic goods, etc. of his choice from any part of the world just by sitting in front of his computer. This fast progress in information technology and communication has influenced our society, economy, and administrative system to a large extent. This technology has given a new facility in the form of ‘E-commerce to the world of business, trade, and commerce.
The application of E-commerce has made our business and commercial activities very efficient with the help of information technology and advanced computer network. Ecommerce has performed a very ambitious task of replacing the paper-based traditional commercial system by providing a very powerful and reliable system of communication through a computer network.
The exchange of business information among business associates, companies, customers, consumers, etc. with the help of advanced information technology and computer network through electronic media is known as E-commerce.
In E-commerce’, ‘E’ refers to electronic commerce refers to commercial exchanges.
According to Auto Industry Action group, “The exchange of goods and services between two or more parties through electronic media is called E-commerce.”
Increasing the business efficiency to achieve business objectives with the help of advanced technology, and establishing better coordination among business associates and consumers, is referred to as ‘E-commerce’.
In fact, the purchase and sale of goods and services on the internet and to the communication of information about products through advertisements to customers are known as E-commerce. (BCom International Communication Adopting to Global Business Notes)
Emergence of E-commerce
E-commerce emerged in the world in 1970 with the establishment of personal computer networks by some companies to develop computer-based information systems. They connected business companies and other related organizations with these networks for communicating information. (BCom International Communication Adopting to Global Business Notes Study Material)
Afterward, it was developed in the form of Electronic Data Interchange. Standard electronic firms used this for the exchange of commercial/ business documents on a computer network to minimize the use of paper and manual errors. Electronic data interchange (EDI) gained unprecedented success in the system and by reducing business expenses increased commercial efficiency and capacity.
Mechanism of E-commerce
Electronic Data Interchange (EDI) is the main element of E-commerce. The process of exchanging various trade, business, and commercial information in a standard format through a computer network is known as EDI. For operating E-commerce, we use Fax, E-mail, Electronic Bulletin Board, Fund transfer, Video Text, Online database, etc.
Under this system when a customer selects some product available on the Website for purchase and then for payment he fills up a computerized form. In this form, he records his credit card number, payment due, and receiver’s name and address, etc., and then the due amount gets transferred from his bank account to the bank account of the seller. A new system has been developed under EDI, in which the buyer can record his digital signature on a ‘net cheque’. However, the system of ‘Net cheque’ operates in those countries only where digital signatures have legal sanctions. (BCom International Communication Adopting to Global Business Notes Study Material)
E-commerce is based on the following assumptions:
- The exchange of information becomes faster.
- There is uniformity in exchange because of the standardization of commercial documents.
- The computer can easily identify ANSI, X, 12, EDI, FACT, etc.
- The presence of the seller and buyer is a necessary pre-condition.
- On understanding the information/message its utility and importance increase in the running of the business.
EDI is capable of accepting standard format communicated through an electronic system in proper order with clear information in appropriate parts of the format.
Advantages of E-commerce—These are classified into two categories:
- Advantages to consumers, II. Advantages to sellers/companies
I. Advantages to Consumers
- The facility of choice of desired products and services.
- The facility of electronic payment.
- Comparative study of costs and quality of products possible.
- Time-saving as one is not needed to go to market in search of products.
- Easy and fast determination of product of consumer’s choice.
- Extension of time-limit and geographical limit of market.
- The benefit of business competition.
- Facility to buy products and services at any time.
- No need to keep unnecessary stock of products.
- The benefit of information about concessions.
- Options available
- No middleman.
II. Advantages to Sellers/Companies
- Exchange of information among producers, distributors, and business associates and thereby reduction in commercial expenses.
- Purity of data.
- Possibilities of new market and new tradings.
- Easy access to new markets and customers.
- Efficiency to provide more timely information about products/services.
- Image building of commodity brands.
- Opportunities for improvement in services to customer satisfaction.
- Better relations with the customers.
- Saving in paperwork.
- More probability of authenticity of the information.
- Faster supply of products and services.
- Easy to include new products and services.
- Saving of infrastructural expenses on showroom etc.
- More time available for business.
- Great Overall Improvement in efficiency because of electronic records.
- Reduction in postal expenses.
- Possibility of minimum selling costs and market costs.
Forms of E-commerce
E-commerce can be classified in various ways, but its main types are three as given below:
- C to B- Consumer to Business
- B to B- Business to Business
- Internal Buying
1. Consumer to business (C to B). This type of E-commerce is merely the extension of Tally shopping, mail orders, Telephone orders, etc. The business activities between seller and buyer are performed through computer networks and the internet. Companies selling products show their presence on the ‘internet’ through E-commerce through their websites. Consumers visit these Websites and the internet, surfing buys the products and services of their choice. (BCom International Communication Adopting to Global Business Notes Study Material)
E-commerce thus is capable of providing various modes of payment from the seller’s viewpoint according to the website and the software available for it. Presently, 25 percent of the total business on E-commerce is done through C to B. amezan.com, C.shoppy.com, etc. are examples. (BCom International Communication Adopting to Global Business Notes Study Material)
2. Business to business (B to B). This type of E-commerce is very efficient in running various kinds of business activities faster and also in a systematic way by creating a favorable environment. It also helps in saving expenses. Although such commercial activities existed earlier the introduction of the internet has provided various security measures and opened the gates for ‘B to B’ E-commerce. By operating various techniques like Firewall, Umpord Electronic Transaction, E-crimson, Virtual Private networks, etc. on Internet the business activities have been provided with adequate security. Presently, 70 percent of the total business in E-commerce is operated through B to B.
3. Internal buying. This type of E-commerce is operated by Multinational companies and companies which operate globally for internal buying and selling among various departments and sister concerns. Processing/building of sale orders/money transfers and other related activities are performed on the Internet to save expenses. Most companies are carrying on their commercial activities by connecting their “Enterprise Resource Planning’ with Websites. The main objective of these companies is to make internal commercial activities automatic beyond the limits of business concerns. (BCom International Communication Adopting to Global Business Notes Study Material)
Establishment of E-commerce
E-commerce establishment does not require much investment or labor as is required in the establishment of traditional business practices. In fact, by taking the advantage of the business work plan, working capacity, and business experience, maximum profit can be earned in a short period with the minimum possible investment it is not necessary that you should have the complete infrastructure of the internet to construct an E-commerce website. (BCom International Communication Adopting to Global Business Notes Study Material)
The website can be made with the help of an Internet Service Provider (ISP). The registration of a business unit’s domain’ on the internet can be done by the sponsored registrars. After registration, you can design and develop your website with the help of suitable software keeping in view your business objectives. In addition, you may be required to make the framework of your business activities. Today, many E-commerce software companies have designed and developed commercial software as per the requirements of various companies and they are easily available. (BCom International Communication Adopting to Global Business Notes Study Material)
Factors relating to Safety of E-commerce. As the internet is designed for the benefit of the general public, it is completely transparent. Internet is accessible to each and every person without any contract or restriction. But, as we know that in business activities money transfers take place on large scale and, therefore, utmost secrecy and credibility are required in this work. A survey of 1600 Information Technology Professionals belonging to 50 countries has revealed that 73 percent of total companies have filed reports regarding breach of security.
(i) Several modes of payments are allowed in E-commerce, but E-commerce ports must have the knowledge of the customer’s identity and his capacity to pay. Ecommerce ports or websites mostly allow traditional modes of payment like Credit cards, Debit cards, Electronic cash, etc. Presently Cybercash and Electronic Wallet are also being encouraged.
(ii) ‘Secured Socket Letter’ developed by Netscape Company or ‘Secured Electronic Transaction Technique of E-commerce Port is used mostly for the confidentiality of data and information. Nowadays companies open a special type of bank account for E-payment which is essential for online trade. (BCom International Communication Adopting to Global Business Notes Study Material)
(iii) Presently, ‘Digital Certificates’ are used for the identity of the customer or seller. In this system, the ‘Public Key’ is connected with the “Private Key’ to ensure the security of commercial exchanges. Just like Passports, these digital certificates are issued by some legal and reliable institutions. (BCom International Communication Adopting to Global Business Notes Study Material)
(iv) For making payments, in addition to Credit Card (for both E-cash and E-credit) bank account has to open in such a company or bank which provides E-cash, whenever you buy some product from an ‘Online store’, then the confidentiality of information of your credit card becomes mandatory. (BCom International Communication Adopting to Global Business Notes Study Material)
Obstacles to Expansion of E-commerce
E-commerce is presently in its primary stage. There are a number of obstacles to its development and expansion. Some of them are as follows:
- The major obstacle in the path of E-commerce is related to making payments. There are various modes of payment available on an electronic medium, but they are still not completely immune from fraud and hacking.
- E-commerce is totally dependent on telephone lines. As there are many areas that are devoid of telephone facilities, therefore, it is not possible to operate E-commerce in these areas.
- Presently, ‘digital signatures and digital certificates are not having legal sanctions in all countries and, therefore, it is not possible to check the authenticity of messages/information. (BCom International Communication Adopting to Global Business Notes Study Material)
- The absence of suitable infrastructure for E-commerce is an obstacle to its development/expansion.
- E-commerce activity is totally dependent on internet service, and still, a large geographical area is devoid of internet services.
Thus, it is clear that there are many obstacles and difficulties in the development/ expansion of E-commerce, and these are expected to be removed to make possible the development/ expansion of E-commerce.
Future of E-commerce in India
Today India is known for its excellence in the field of information technology throughout the world, but in the field of E-commerce, India has not yet achieved the desired success. Its main cause is that the basic infrastructure of the internet is still not well developed. Moreover, the computer has not reached the common man, and there is a lack of appropriate laws and policy decisions in this regard.
In India, Information Technology Act, 2000 is effective from 18th October 2000. India is one of those few countries where “The Cyber Act’ is in the application. This has created a favorable environment for E-commerce.
Because of the Cyber Act, electronic commercial documents have legal sanctions and they are accepted as evidence in a court of law. So also, electronic records/electronic correspondence/digital signatures, and digital certificates have legal sanctions. These things will certainly help in the further progress of E-commerce. (BCom International Communication Adopting to Global Business Notes Study Material)
Cyber Act has a provision to check cyber crimes. Any person misusing the database through a computer network or committing electronic fraud is punishable under the Act. (BCom International Communication Adopting to Global Business Notes Study Material)
During the last three years, most Indian companies have started commercial activities through E-commerce and are selling gifts, books, cassettes, etc. E-commerce. Looking to the success of ‘Burn & Noble’, and ‘amezan.com.’ B.P.P. Publication in India has established Online Kitab Ghar on the internet. (BCom International Communication Adopting to Global Business Notes Study Material)
E-commerce is enjoying an important place in the Indian banking system. ICICI bank has started an E-commerce service in the name of ‘ICICI Direct’ and has opened new vistas for E-trade.
National Association of Software and Service Companies (NASSCOM) has revealed, on the basis of their survey with regard to the status and possibilities of E-commerce in India, that E-commerce is fast developing in India. E-commerce total business of Rs. 131 crores in 1998-99 increased to Rs. 1500 crores in 2001-2002. According to NASSCOM estimates, India’s E-commerce business will be about 15 billion dollars in 2004 and will reach 100 billion dollars by 2008.
BCom International Communication Adopting to Global Business Notes