Chapter emerging-modes-of-business: Emerging Modes of Business Case Study Questions | business studies Class 11 CBSE

Chapter emerging-modes-of-business: Emerging Modes of Business Case Study Questions | business studies Class 11 CBSE | ByteNotes.in

Case Study

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Case Set

Case Set 1

Case Analysis

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Rita runs a small handicraft business from her home in Jaipur. She had been selling her products only in local markets, but after attending a workshop on digital business, she decided to list her products on an online marketplace. Within three months, she started receiving orders from customers in Mumbai, Delhi, and even from buyers abroad. She found that the cost of setting up her online store was far less than opening a physical shop, and she could manage orders at any time of the day. However, she sometimes struggled with delayed deliveries and customers who complained that the products did not match what they saw online. Rita realised that while e-business had opened new avenues, it also came with its own set of challenges that she needed to address carefully.

Question 1: What key benefit of e-business is illustrated by Rita's experience of receiving orders from across India and abroad?

Global reach: e-business allows sellers to access national and international markets without physical boundaries.
Internet enables sellers to connect with buyers from any part of the world, expanding the marketplace beyond local limits.

Question 2: Identify any two limitations of e-business that Rita encountered in her online business journey.

Incongruence between order-taking speed and delivery speed: Information flows instantly but physical delivery of goods takes time, frustrating customers.
Low personal touch: Customers could not physically examine the products, leading to dissatisfaction when goods did not match online images.

Question 3: How does e-business differ from traditional business in terms of ease of formation, cost of operations, and scope of reach? Explain with reference to Rita's case.

Ease of formation: Unlike traditional business, which requires a physical shop and numerous formalities, e-business is relatively simple to start. Rita set up her online store with minimal investment compared to a brick-and-mortar shop.
Cost of operations: e-business has low operating costs as it relies on a network of relationships rather than ownership of physical resources, saving Rita from expenses like rent and physical infrastructure.
Scope of reach: Traditional business limits a seller to local or regional markets, whereas e-business is truly without boundaries. Rita could reach customers nationally and internationally without moving beyond her home.

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Case Study

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Case Set

Case Set 2

Case Analysis

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Apex Auto Ltd. is a car manufacturer that sources over 500 components from vendors located across different states in India and overseas. To manage this complex supply chain, the company has implemented a computer network that connects it with all its vendors. Each vendor receives digital purchase orders, uploads production and delivery status in real time, and raises electronic invoices. Payments are transferred electronically. Apex also uses the same network to monitor stock at various warehouses and dealer outlets. When inventory at any dealer drops below a threshold, the system automatically triggers replenishment orders to the nearest warehouse. This seamless digital integration has reduced paperwork, shortened the procurement cycle, and lowered costs significantly for the company.

Question 1: Which type of e-commerce is Apex Auto Ltd. primarily engaging in with its vendors? Define it briefly.

Apex Auto is engaging in B2B (Business-to-Business) commerce, where both parties in the transaction are business firms.
B2B commerce involves a firm's interactions with its suppliers, vendors, and distributors using computer networks for placing orders, monitoring production, and making payments.

Question 2: How does the use of computer networks help Apex Auto Ltd. in inventory management and distribution?

Real-time monitoring: The computer network allows Apex Auto to track stock-in-transit and stock at different dealer locations in real time.
Automatic replenishment: When inventory drops below a threshold level, the system triggers replenishment orders automatically, ensuring uninterrupted supply.

Question 3: Explain how Intra-B commerce could further enhance Apex Auto's internal operations, giving examples of at least three internal functions that could benefit.

Flexible manufacturing and customisation: The marketing department can interact constantly with the production department via intranet to obtain customised orders, enabling mass customisation at lower cost.
Inventory and cash management: Computer-based interactions among departments make efficient inventory monitoring and electronic cash management possible, reducing idle stock and financial waste.
Human resource management: HR can use e-learning platforms for recruitment, training, and employee development, while employees can submit field reports via e-mail for real-time access by management.
Communication and decision-making: Use of intranet and virtual meetings through video conferencing enables faster, better-informed decisions and speedier workflow across departments.

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Case Set 3

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Priya wants to buy a second-hand laptop. She posts her requirement on an online marketplace, and within hours she receives responses from multiple sellers across the country. She shortlists a seller from Chennai, checks his rating (4.8 out of 5 based on over 300 transactions), reads buyer reviews, and decides to proceed. To avoid risk, she uses an online payment intermediary, which holds her payment until she confirms receipt of the product. The laptop arrives in good condition, Priya confirms receipt, and the payment is released to the seller. A month later, Priya writes a detailed review of the transaction, helping future buyers make better decisions.

Question 1: What type of e-commerce transaction is illustrated in Priya's case? Give one example of a global platform that operates on this model.

The transaction illustrates C2C (Consumer-to-Consumer) commerce, where both the buyer and seller are individual consumers.
eBay is a well-known global platform that facilitates C2C transactions where consumers buy and sell goods to other consumers.

Question 2: How do seller rating systems and payment intermediaries make C2C transactions safer? Explain briefly.

Seller ratings provide transparency: Future buyers can assess a seller's credibility based on ratings and reviews from past customers, reducing the risk of fraud or misrepresentation.
Payment intermediaries like PayPal hold the buyer's funds until the goods are delivered and accepted, protecting both parties from default on payment or delivery.

Question 3: Discuss any three transaction risks present in online business and suggest how each can be minimised.

Default on order taking/giving: A seller may deny receiving an order, or a buyer may deny placing one. This can be minimised by maintaining digital records and using order confirmation systems with timestamp verification.
Default on delivery: Goods may be delivered to a wrong address or different goods may be sent. This risk can be reduced by using tracking systems, seller rating mechanisms, and buyer protection policies offered by shopping platforms.
Default on payment: A seller may not receive payment even after delivery. Using SSL encryption, payment intermediaries, and credit card authorisation systems can safeguard against payment fraud.

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Case Set 4

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Zara Fashions, a multinational clothing brand, has launched a website where customers can browse its latest collections, check real-time availability of sizes, read style guides, and place orders 24/7. The website also conducts online surveys to understand customer preferences. Customers receive personalised recommendations based on their purchase history. After purchase, they can track their orders, return products, or reach out to customer service through the website. Zara's marketing team uses data from the website to plan promotions, identify fast-moving products, and customise offerings for different regions. This approach has helped Zara expand its customer base significantly without proportionally increasing its marketing expenditure.

Question 1: Which type of e-commerce does Zara's online platform primarily represent? Mention any two marketing activities it facilitates.

Zara's platform primarily represents B2C (Business-to-Consumer) commerce, where the business firm interacts directly with its end customers.
It facilitates promotion through personalised recommendations and online surveys to gauge customer satisfaction and buying behaviour.

Question 2: How does B2C e-commerce enable mass customisation? Explain with reference to the case.

B2C e-commerce allows businesses to offer products and services tailored to individual customer preferences at costs associated with mass production.
Zara's website uses purchase history data to personalise recommendations, effectively customising the shopping experience for each customer without additional cost, exemplifying mass customisation.

Question 3: Explain three specific benefits that Zara's business organisation derives from adopting e-commerce, as evident from the passage.

Expansion to national and international markets: Zara's website allows it to serve customers across geographies without setting up physical stores in every location, expanding its marketplace significantly.
Lower cost of operations: The digital platform reduces the need for large physical marketing infrastructure, enabling Zara to grow its customer base without proportionally increasing marketing expenditure.
Competitive advantage: By using real-time data analytics for promotions, customised recommendations, and inventory planning, Zara gains a significant competitive edge over rivals who rely on traditional methods.

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Case Set

Case Set 5

Case Analysis

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Neha is a software engineer working for a multinational company. She has been asked to work from home due to an ongoing project involving collaborators from three different countries. Using her company's Virtual Private Network (VPN), she accesses all office resources securely from her residence. She attends team meetings via video conferencing, submits her work reports over the company intranet, and even receives training modules through the company's e-learning portal. The HR department processes her salary, leaves, and performance evaluation entirely online. Neha finds the arrangement flexible and productive. However, she sometimes feels disconnected from her teammates and misses the camaraderie of the office environment.

Question 1: Which component of e-business scope does Neha's work-from-home arrangement represent? How does it help the company?

Neha's arrangement represents Intra-B commerce, which involves electronic transactions among departments and personnel within a business firm.
It helps the company by enabling employees to work from anywhere using VPN, intranet, and video conferencing, reducing the need for physical office space and improving workflow efficiency.

Question 2: What limitation of e-business does Neha experience in her remote work setup? How does this relate to a broader limitation of e-business?

Neha experiences low personal touch — she misses the interpersonal camaraderie and face-to-face interaction with colleagues.
This reflects a key limitation of e-business: despite being high-tech, it is low on personal warmth and interpersonal contact, making it relatively unsuitable for activities that require human connection.

Question 3: Explain how the use of e-business tools changes the nature of communication and organisational structure compared to traditional business. Refer to Neha's case in your answer.

Nature of communication: In traditional business, communication is hierarchical — from top management to middle to lower levels. In e-business, as seen in Neha's case, intranet and VPN allow direct vertical, horizontal, and diagonal communication, making it non-hierarchical and faster.
Organisational structure: Traditional businesses have vertical/tall structures due to chain of command. e-Business flattens this to a horizontal/flat structure where Neha directly interacts with collaborators across geographies without going through multiple layers of management.
Speed and efficiency: Video conferencing, intranet-based reporting, and e-learning eliminate the need for physical presence, making decision-making instantaneous. Neha can submit reports, attend meetings, and access training in real time, which would take far longer through traditional means.

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Chapter sections

Chapter emerging-modes-of-business: Emerging Modes of Business | Case Study Questions

Passage

Question 1: What key benefit of e-business is illustrated by Rita's experience of receiving orders from across India and abroad?

Question 2: Identify any two limitations of e-business that Rita encountered in her online business journey.

Question 3: How does e-business differ from traditional business in terms of ease of formation, cost of operations, and scope of reach? Explain with reference to Rita's case.

Passage

Question 1: Which type of e-commerce is Apex Auto Ltd. primarily engaging in with its vendors? Define it briefly.

Question 2: How does the use of computer networks help Apex Auto Ltd. in inventory management and distribution?

Question 3: Explain how Intra-B commerce could further enhance Apex Auto's internal operations, giving examples of at least three internal functions that could benefit.

Passage

Question 1: What type of e-commerce transaction is illustrated in Priya's case? Give one example of a global platform that operates on this model.

Question 2: How do seller rating systems and payment intermediaries make C2C transactions safer? Explain briefly.

Question 3: Discuss any three transaction risks present in online business and suggest how each can be minimised.

Passage

Question 1: Which type of e-commerce does Zara's online platform primarily represent? Mention any two marketing activities it facilitates.

Question 2: How does B2C e-commerce enable mass customisation? Explain with reference to the case.

Question 3: Explain three specific benefits that Zara's business organisation derives from adopting e-commerce, as evident from the passage.

Passage

Question 1: Which component of e-business scope does Neha's work-from-home arrangement represent? How does it help the company?

Question 2: What limitation of e-business does Neha experience in her remote work setup? How does this relate to a broader limitation of e-business?

Question 3: Explain how the use of e-business tools changes the nature of communication and organisational structure compared to traditional business. Refer to Neha's case in your answer.

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