Business Economics Assignment

When we speak well-nigh the factors of merchandiseion, in that respect ar more or less overlapping categories. Economic experts have used the four ecumenic factors of production ( record, restriction, capacious(p) and entrepreneur) from the very early stage. These factors contribute a great portion of the industrial rphylogenesis in the sass, because the factors of production, especially entrepreneurs were largely disrupt into groups. Labors, for instance, seldom owned capital or land, nor did they begin their own logical argument. Land lords almost never did manual labor, nor did they become owning factories.In the olden years (18th century) entrepreneur, labor, capital and land, were not just four categories Of factors f production, they were four incompatible socio-economic groups. traditionalistic Business Vs.. E-Business When we comp atomic number 18 traditional profession and e-business, two argon convertible in scope to the competitive merchandiseplace. Altho ugh a brick-and-mortar shop and an online marketplace are both real, they appeal to different characteristics, display their goods through with(predicate) different methods and bring home the bacon consumers different levels of pricing, religious service and comfort station (Christina Hamlet).The following are swell up-nigh of the signifi bedt differences of traditional business and E-business. Needs Assessment The nature a lesser business and the type and quantity of customer interaction it requires to be successful dictate whether you call for a somatic address or a practical nonpareil. For instance, youre providing writing, copy-editing, consulting, and accounting or billing services. plot of ground, your primary user interface with your guests is by telephone, email and fax, negating the need for solvespace beyond a home sanction.On the early(a) hand, a small business in which you sell cosmetics, jewelry, graphics, furniture or home equipment will require display s pace, changing rooms and square-toed storage. rascal 4 As a single business proprietor, you are just equally uniformly to desire about its libeling, whether its far external or close. To sort tryout transaction animateness from your personal life has been normally a larger challenge when personal life and work life live under the same roof.The anytime availability surroundings of e- business makes it to start knowing yourself as accessible to your customers round-the-clock, whatsoeverthing that would not go on if you kept traditional hours at a shop. Legalities and Expenses Traditional Business and e-businesses both require you to possess a business permit. Registering your business name with the registrar, acquiring a tax ID number, examining local zoning and licensing regulations, acquiring insurance minded(p) to your needs and creating banking relationships are critical steps in setting up shop in either Traditional Business or e-businesses.While telecommunications expe nses, office supplies and a marketing or advertising budget are prerequisite expenses in both traditional and commerce. But, in the traditional commercial attempt model has more overhead expenses such as lease, staff salaries and former(a) benefits, maintenance addresss and expenses incurred for security arrangements, however, e-business operate from a home Office, which utilizes in the main existing facilities. Customer ConvenienceSince e-business is available 24 hours (24/7), customers are freer from the challenges, like, difficulties in stretching the shops due to bad weather or difficulties in parking, than a physical shop located across town, which is normally open five days a week for a specific time period. E-commerce not besides save customers time and energy, it also, avoids customers from paying sales taxes, offer more outlets to equalize stores. However, most of the customers need to inspect the sellers personally, take advice as well as support and be able to bear the goods home immediately quite of paying hipping costs and waiting.However, a traditional business satisfies those needs by producing an environment, where customers pot deal face to face. Page 5 In economics, the market structure is the number of firms producing similar products which are identical. The following are some of the signifi basist market structures of todays business environment. Monopolistic Competition In these markets, in that location is a large number of firms, each firm is having a small proportion of the market share and slightly differentiated products. It is a marketplace, where a miniscule number of firms that together bear the ajar share of the market.Monopoly This is a market condition, where there is a single supplier Of a product or service. Perfect competition The Perfect Competition Structure is a theoretical structure that features no barriers to entry, an unlimited number of producers and consumers, and a suddenly elastic demand curve. The conti nuous evolution of technology is changing the modality we do business, the dynamics of the workplace and what we perceive is possible. During the last 10 to 15 years, the technology is extremely changing the approach and the production processes.Signifi butt jointtly, the continued evolution of electrification and Information Technology is change magnitude the ongoing translation of the business environment to hold advantage of available tools and opportunities (Rosily Frenzy). In some countries, there can however be arguments between the traditional practices and the modern business methods that can be created through technology. This efficiency be that decision makers mum have not fully appreciated for the irrecoverable changes that technology had brought to the business methods. Indeed, to get these changes, the key role is played by internet.The earnings is pronto becoming the base of choice for e-commerce. Because it offers a universal and user hospitable set of techno logy, which can be used by all organizations, no matter which information technology political program they use. Moreover, this technology offers a such(prenominal) cheaper and easier replacement for management activities than traditional methods. Business organizations can utilize meshwork technology to decrease their operational and administrative expenses. Fundamentally, internet technology lowers the cost of data processing, sending and storing of data while producing that information more astray useable.Page 6 By using Internet and other networks for e-commerce, organizations in some industries can make transactions directly with clients and suppliers. The Internet can wait on companies for the production and making profits in new shipway by adding special value to existing products and services. In many e- commerce platforms, like Ebay, Alabama or Amazon creates information brokers, virtual storefronts, transaction brokers, online marketplaces, online service providers, content providers, virtual communities, and online portals.Following are some of the enhancements brought by information and digital technology. Productivity The usage of computers has changed the work environment and the speed Of ark in the outgoing days. It pushed down the cost of data processing, and the simplicity with which large volumes of data can be manipulated by and transferred between several units within the business organization. And also, thus increase the processing power along with the extensive range of pattern and customized hardware and software.This resulted in changing employer and client expectation of work quality and output, at the employee and organizational levels. Banking services are good examples of this point. A bulky range of services are giving through internet or intranet which involves a number of different footwear and hardware. both(prenominal) of the services supplied by financial institutions with the help of technology is ATM and internet banking services. Today, most of the banks realize that they should change the way they do business to take maximum profit.For instance, Americas most go-getting banks were SSH fitting from acquisitions to providing Internet-based financial services (John McCoy) Collaboration In a situation, where persons might not be in office to physically interact with clients, technology is providing a number of connectivity choices that facilitate continued discussion and collaboration among work forces. Options can low both the real-time and non-real time communication, and also they can integrate into a platform of specialists to access and use of different tools and features.For example, populate can buy and sell on Ebay at any time, in addition to that, buyers and sellers can communicate real time or non-real time. Some of the other famous online stores are Amazon, Alabama, best buy etc. Page 7 Resounding With the help Of technology, business organizations find new ways Of increasing thei r resources. Cloud computing is a good example, which offers a large scope of resources, such as computer applications, online storage and processing power. By the help of the cloud technology, companies can decentralized or delegate different aspects of their businesses to either affiliate or third parties.For example, Google provides online storage, which allows organizations as well as individuals to store and share their documents whenever they want. Interaction and conflict Customer interaction and participation is readily apparent through the impact Of social media in business. In addition to providing a platform for the distribution of information, marketing and promotion, social media creates an environment to generate feedback from consumers and the public. Many organizations are starting to take advantage of the chances to warm feedback on their products and services (Jack Supple and Michael Schmaltz).A good model for such platform is Faceable, which offers a number of ch ances for the purpose of marketing and promotion as well as sharing information and cool electing feedbacks. Cost management While performing in a competitive marketplace, Organizations are continuously toilsome to manage the operational costs and to control spending. To accomplish this goal, technology has provided a platform with cost effective alternatives, such as skilled labor and computing resource outsourcing. This result, increasing productivity, efficiency and individual performance.The financial results of the brighten 25 e-commerce platforms including the AOL, eBay, Yahoo and so on, all together generated about $5 million in revenue and spend around $1 billion last year (Ion McCoy). For example, Banks and Airlines. Processing an airline ticket on the Internet costs $1 , compared with $8 through a travel gene (the Economist). Page 8 Efficiency and optimization At last, this stage is a very significant outcome of most of the points brought up earlier, since there is a h igher expectation of the organizations becoming more efficient.In traditional business models, one of the greatest challenges that organizations have confronted is that although they might be very open about what their core objectives might be, considerable attention on financing, workforce, management, and etc. Had been effrontery to supporting activities and processes to the core business. However, technology based companies have more choices through which to move their efforts towards the most important natural processes that they must manage, thereby increasing productivity and output.Effects on factors of production In todays business world, the factors of production are used in different says. Lets take the four factors of production to broadsheet the impact of information technology. Land In recent days, the number of businesses piteous to e-business are increasing and the amount of physical stores is decreasing. This reduces the demand for land and increasing availability Of land at a cheaper rate. Labor When organizations are charge more on internet based activities, the involvement human activities are turning more depressed.