Unit 33 - The Impact of Communications Technology on Business
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Unit 33 - The Impact of Communications Technology on Business P2
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Unit 33 - The Impact of Communications Technology on Business
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BTEC Level 3 National Business Student Book 2
Unit 33 - The Impact of Communications Technology on Business
P2 Describe examples of how the internet is used by selected contrasting businesses
Case Study: EBay, UK Government and Apple.
BTEC Level 3 Extended Diploma in Business
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unit 33 the impact of communications technology on business
unit 33 the impact of communications technology on business p2
p2 describe examples of how the internet is used by selected contrasting
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Unit 33 - The Impact of Communications Technology on Business
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Abdulalah Al-Jobore
Unit 33 – The impact of Communication Technology on Business
P2
P2 Describe examples of how the internet is used by selected contrasting businesses
In this task I will be describing examples of how the internet is used by three selected contrasting
businesses. The three selected contrasting business will be EBay, UK Government and Apple. Each
of one of these businesses have a different purpose of using the internet and the worldwide web. I
will be also describing how the internet and related technology are used by businesses for a range of
business activities.
When the internet age first arrived, it was not that much useful for all people, however it was very
useful within businesses as it helps to connect their computer and do their work much faster with
computers networks. Later on, when the worldwide web has been invented, it was a global
phenomenon as it is the web that has made the internet such a valuable tool for businesses and
individuals. This is because in the past businesses did not exist in the internet world or have a ‘web
presence’, which means they have only a physical business/store and known as ‘sightless’. With the
development of the internet and worldwide web, businesses were engage to go online; this is
because businesses can do many things using the internet and worldwide web.
In order to understand the use of the internet it is important to understand some of the key business
terms:
Business-to-consumers (B2C)
A B2C website refers to the commerce between the business and customers, therefore the
business will use a B2C website to sell particular products or provide services to private
customers using the internet. Therefore the business will respond to the customer’s demand
of the products or service. In addition, before the development of the internet, the shops
were opening at particular times and a place, which means the consumers had to travel to
them to buy the products or service. However, now days the consumers can use the online
shops (the website) to buy products and service, as the online shops does not have limited
time or space, which mean the internet retailer does not have a limits to what they can offer
to consumers. In example of B2C is Amazons, as Amazons is one the most successful online
business which offer and provide a wide range of products to consumers.
Business-to-business (B2B)
A B2B is refereeing to the way that a business makes transactions with another business,
usually the transactions are less frequent over the internet. For example, it could be the
transactions between a chocolate manufacturer and wholesaler. Therefore, the B2B website
is when a business buying from and selling to other businesses on the internet. It might
purchase items for its own internal maintenance or repair and operations purpose as well as
buying items that can be used as a part of what the business sold to other business in the
supply chain. An example of this, is when a particular company purchase Microsoft software
throughout the internet, to install it on the company’s computers.
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,Abdulalah Al-Jobore
Unit 33 – The impact of Communication Technology on Business
P2
Procurement
Procurement is the process of purchasing something. Most businesses may have to procure the
things that the need in order to carry on their day-to-day business operation. Some businesses may
buy raw materials for their productions process where they manufacturing the goods and then sell
them to make products: other private sectors may have to purchase finished products at a lower
price such as food and then sell them back in their physical store for a higher price. Public sector
organisations have to make sure that they do not procure things that consider as waste of money, as
efficiency is important to them because they are spending taxpayers’ money.
Selection of suitable suppliers
The internet is a useful technology that enable businesses to procure materials and products
from other supplier over the internet in order to operate in both online and real world.
Therefore, there are a wide range of procurement service over the internet that aim mostly
to serve private and public sector businesses. The internet offer many advantages when
using internet for procurement process. One of them is the comprehensive purchasing
intelligence, where the business can simply visit some web sites which offer analytical
application to help businesses to measure performance and identify what the best
opportunities to save money and be more efficient. Another advantage is self-guiding
catalogue- where a business can easily find catalogue items quickly using an effective text-
based search engine. In addition, there are some websites that link suppliers and partners
together to integrate the supply chain and make it easier for them to communicate and
accelerate the process of procurement.
Intermediary sites
Intermediary sites are websites that offers information services, as businesses tend to buy
(procure) things based on good and accurate information. These websites exist between
buyers and sellers as it bring them together to do business and accelerate the process of
procurement. For example, they offer businesses directories, which enables
mangers/directors to check the thing they want to purchase in the market they are
operating in.
Security symbol and secure payment methods
Just as the real businesses depend on the reliability
and security level when conducting business, so
does on the internet. It is important to consider the
level of security when conducting business over the
internet, as this can be done by looking carefully at
the security setting which provided by the internet
browsers to check the security level. Usually to
make sure the website is secure, the browser will
display a security symbol that will appear next of
the internet domain and URL. This is important for the process of procurement, as
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, Abdulalah Al-Jobore
Unit 33 – The impact of Communication Technology on Business
P2
businesses will use their bank details over the internet, which can be very risky if the selling
website is not secure.
In addition, there are two web standards that helps to protect people when dealing with
credit card payments. The first one is SSL (Secure Sockets layer) which encrypt the details
and information of the buyer and protect their information, as it make them unreadable to
anyone who does not have access for them. The second one is the SET standard (Secure
Electronic Transactions), this have a different job unlike SSL, as it designed for the internet
financial transactions as it offer more protection for E-businesses. SET standard uses digital
certificates that ensure every individual or businesses within a transaction will be verified
and authenticated. This to make sure that not one can legitimately deny that they placed an
online order, as all = orders will be digitally signed with a digital signature to prove the
purchasing process.
Online services and ways to reduce risks
Quite a lot of websites offer free downloads of software and music sharing packages
alongside with purchasing them at a nominal price for both personal and business use (such
as eBay and Amazon). In fact, the internet become very popular for these people use a wide
range of free service and purchasing different things such music and software over the
internet. Banking online is one of the most used service on internet as a way of managing
personal finances. Although these services are might be used for free or with for a small
amount of money, however they must have internet security with antivirus software which
must be set to a ‘medium’ level or above in order to reduce the risk of computer infections.
Legal protection and limitations
The internet have some law and regulations that designed to protect the consumers and
make everything work under the Law exactly the same as the real world. For businesses who
are trading and advertising for their goods or service using the internet as an online sales
channel, they must comply with the E-Commerce Regulation 2002 when dealing with the
consumers within the countries of Europe Union (EU). Another act is the Distance selling
Regulations which were designed to protect consumer rights when buying products from a
distance, until 12 June 2014. As these regulations require some information for businesses
that are selling anything online and these are:
The offer provided by the company must have the full name of the business and any
contact details that can provide including the geographic address.
Prices, taxes and delivery charges must be provided by the business with any VAT
charge that they may have over their goods.
Information of the organisation/business with any trading or professional bodies be
provide by the business on the website.
When online business use emails to establish a new campaign for promoting and advertising
for their goods and service, they must consider a few things that are stated by the
Regulations:
The business must clearly state the name of the business who sent the email or on
behalf of.
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