Effects Of E-commerce On Businesses

Question 1

What are the advantages of selling goods online?

4

Answer 1

Opens up the market to customers internationally.
Enables smaller companies to compete with larger ones.
Less staff are required so this reduces cost.
Means shopping can take place 24/7.

Question 2

What are the disadvantages of selling goods online?

3

Answer 2

Stiffer competition as the business is now competing on a global scale.
Is expensive to reconstruct to e-commerce.
Customers who like to shop in a physical shop might go somewhere else to shop.

Question 3

What is teleworking/telecommuting?

Answer 3

It is working from home.

Question 4

What technology is required for teleworking?

5

Answer 4

A computer with internet access. 
An email account. 
A fax machine. 
A mobile phone. 
Videoconferencing equipment.

Question 5

What are the advantages to the employer of using teleworking?
(3)

Answer 5

Office running cost is reduced.
Reduces staff being late as they don’t have to travel.
May tempt people come and work for the business.

Question 6

What are the disadvantages for the employer of using teleworking?

Answer 6

Employers need to trust employees to actually work without supervision.

Question 7

What advantages does teleworking have for the employees?

3

Answer 7

Work in a comfortable environment.
No travel cost.
Work times are flexible.

Question 8

What are the disadvantages for employees using teleworking?

3

Answer 8

Less human interaction.
Hard to work as a team.
Temptation not to work and just chill.

Question 9

What are the benefits of an organisation using email to communicate with customers?
(4)

Answer 9

Send marketing material.
Send the same email to multiple people at the same time.
Can quickly respond to customers.
Cheaper because don’t have to spend money on paper, etc.

Question 10

Problems with using emails to communicate?

5

Answer 10

Increased risk of viruses. 
System may clog and slow down. 
Customers may just mark the emails as spam. 
Not everyone checks emails. 
Emails could get hacked.

Question 11

What is video conferencing?

Answer 11

Using computers to provide a video-link between multiple people.

Question 12

What equipment is needed for video conferencing?

6

Answer 12

A computer. 
A web cam. 
A microphone. 
Speakers. 
Internet access. 
Video conferencing software.

Question 13

What are the advantages of video conferencing?

3

Answer 13

Meetings can take place anywhere.
Travel time and costs can be reduced.
Meetings can take place in different countries.

Question 14

What are the disadvantages of video conferencing?

3

Answer 14

Confidential documents may need to be signed in person.
Sometimes have to meet face to face.
Equipment can be expensive.