Assignment Brief

BTEC Level 4-5 HNC/HND Diploma (QCF)

To be filled by the Student

Name of the Student :

Edexcel No : Registration No: Batch No:

Unit Assessment Information

Qualification : Higher National Diploma in Computing and Systems Development

Unit Code & Title : Unit 1–Business Skills for E commerce

Assessment Title & No’s : E-commerce Consultancy Report for My Toys (Pvt) Ltd- (ECOM – 16 – 001)

Learning outcomes and grading opportunities:

LO 01: Understand the structure and aims of business organizations
Learning Outcomes LO2.1 LO2.2

LO 02: Understand the impact of e-Commerce

Learning Outcomes LO3.1 LO3.2 LO3.3

LO 03:Be able to design e-Commerce solutions

Learning Outcomes LO4.1 LO4.2 LO4.3 LO4.4 LO4.5

Merit and Distinction Descriptor

M1 M2 M3 D1 D2 D3

Date Issued : Date Due :

Date of Submission:

Assessor : Date Assessed:

Internal Verifier (IV): Date of IV:

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General Guidelines
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you may be guilty of plagiarism.
21. If you are caught plagiarizing you could have your grade reduced to A REFERRAL or at worst you
could be excluded from the course.

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 Statement of Originality and Student Declaration

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it as
my own without attributing the sources in the correct way. I further understand what it means to copy
another’s work.

1. I know that plagiarism is a punishable offence because it constitutes theft.

2. I understand the plagiarism and copying policy of the Edexcel UK.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the assignments
for this program.
4. I declare therefore that all work presented by me for every aspects of my program, will be my own,
and where I have made use of another’s work, I will attribute the source in the correct way.
5. I acknowledge that the attachment of this document signed or not, constitutes a binding agreement
between myself and Edexcel UK.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: …………………………… Date: ……………………………..

Assignment Brief

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My Toys (Pvt) Ltd. is a Toy company which started its functions in early 2015. They sell variety of toys for
children of all ages. Currently they are operating in Colombo and have branches in Bambalapitiya, Nugegoda
and Dehiwale.

They are looking forward to expand their operations in different regions in the country and their long-term
business goal is to step into regions around Asia in order to build their customer base and reputation over
time.

To accomplish their goal, the management of My Toys is thinking of introducing an online platform where
they could publish all their product information and make available the information to customers at all times
to attract a huge customer base. But there is an issue in that they lack technological resources and staff to
help them in the process and they are not very confident whether they will be able to achieve their target.
They wish to hire an Ecommerce consultant to advise them and help them on this matter.

Assume that you have been hired by My Toys as their Ecommerce consultant and prepare a documentation
based on the tasks given below.

Chapter 1 – Organization Profile

1.1 Assess core business functions of My Toys (Pvt.) Ltd. making assumptions where it is necessary.
(LO 1.1)

1.2 Identify the stakeholders involved in the operations of an organization such as My Toys and by using a
Mohammed Ashraf BSE Reg No: 10774 Page | 4
 suitable tool, evaluate the organization’s business aims in relation to their stakeholders.(LO 1.2) (M1.3)

Chapter 2 – Background of E-Commerce and its impact to the Society

2.1 Analyze the impact of introducing Ecommerce to My Toys by analyzing the benefits and negative impacts
it would have both on the customers and the business. (LO 2.1)

2.2 Discuss the global impact of e-Commerce on the society by taking different examples with appropriate
references(LO 2.2)
Note: Your overall chapter must reflect the background of e commerce and its wider impact to the
society through a range of sources of information with appropriate references. Please avoid using
unreliable data sources such as wikis, answer web sites, blogs etc. (M2.3)

Chapter 3 – Market Potential and Different E-Commerce Solutions

3.1. Investigate the market potential of introducing an E Commerce solution to an organization such as My
Toys. (LO3.1)

3.2. Currently there are different types of e-commerce systems in use. Evaluate e-Commerce systems which
are being used by organizations in current context. You are encouraged to provide screen shots to support
your answer (LO 3.2 and D 1.1)

Chapter 4 – Proposed E-Commerce solution

4.1. Though it would generate revenue, implementing e-commerce solutions would require substantial
investment. Evaluate the overall financial implications of implementing an e-commerce solution for an
organization such as My Toys.(LO 3.3)

4.2. Based on the above justification on the market potential and the varieties of e-commerce solutions
available in the world of e-commerce solutions design an e commerce solution for My Toys that would
support the achievement their business goals. (LO 3.4)

Note: You are encouraged to use illustrations to show how different component of the proposed system
would interrelate.

4.3. Taking into consideration the security issues and applicable legislations, evaluate the suitability of
the proposed e-commerce solution for an organization such as My Toys.(LO 3.5)

Note: The above proposed e commerce solution must be creative and innovative in terms of
applicability to the organization that you have selected. (D3.5)
Note:
a.) The report should be well structured and presented confirming to academic writing standards. (M3.3)

B.)Overall work is a managed study and submitted the report within the assigned time duration. (D2.3)

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Assessment Criteria

Possible
Outcomes/Criteria for PASS Possible evidence provided by the learner Achieved
evidence
LO1 Understand the structure and aims of business organizations

1.1 assess an organization’s core business functions Chapter 1.1

Assessment of functional areas
of should take place
1.2 evaluate an organization’s business aims and show
how they relate to stakeholders Chapter 1.2
Clear linkage between specific
aims of the organization and
how stake holders are being
affected by the same but be
evaluated

LO2 Understand the impact of e- Commerce

2.1 analyses the impact, including the risks, of

introducing an e-Commerce system to an

Chapter 2.1
Analysis of the positive and
Organization negative impacts such as risks, of
introducing e-commerce
solutions to organizations

Discussion on global impacts of

e-commerce, positive and
negative, should take place with
citations to contemporary
researches on the theme be
2.2 discuss the global impact of e-Commerce on presented
society

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3.1 investigate market potential for an e-Commerce

opportunity
Market potential for an e-
Commerce to an e-commerce
solution for an organization such
as My Toys be presented

3.2 evaluate current e-Commerce systems in use by Chapter 3.2

organizations
Evaluation of e-commerce
solutions which are currently in
use by different organizations be
presented
3.3 discuss the financial implications of an e-
Commerce solution Chapter 4.1
Financial implications such as
cost of funding for e-commerce
solutions in the given context
and justification of return on
investment should be discussed

3.4 design an e-Commerce solution Chapter 4.2

Applicable design of an
ecommerce solution for the
given organizational context
should be evidenced through
illustrations and written
descriptions of mechanisms of
the proposed system
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3.5 evaluate the suitability of an e-Commerce
Solution.
Chapter 4.3
Evaluation of suitability of
proposed e-commerce system in
the light organizational context
should take place

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Grade Descriptor for MERIT Possible evidence by the student Feedback
M1 Identify and apply
M1.3 An effective approach to study and research has been applied
strategies to find
appropriate solutions
The Learner should have use effective approaches on defining the
business sector and background of business and identifying the
organization’s aims and objectives with clear explanation on the
involvement of interested parties to the business and their
contribution variations for the rapidly growing & developing
business industry.
M2 Select / design M2.3 Range of sources of information has been used
appropriate methods
/ techniques In Chapter 2 the learner has reflected the background of e commerce
and its wider impact to the society through a range of sources of
information with appropriate references.
Not used unreliable data sources such as wikis, answer web sites,
blogsite.
M3.3. A range of methods of presentation have been used and
M3 Present and technical language has been accurately used
communicate
appropriate findings Overall report should be word processed, using Times New Roman
font (12-body, 14-sub headings, 16-headings, 18-titles) with 1.5-line
spacing, justified, uniform while written in report writing using
appropriate Harvard referencing (both in text citations and end text
reference list) wherever appropriate.
It must contain appropriate Executive Summary, Table of Contents,
Body, Conclusion, References and Appendices in accurate page
numbers. The report must be printed single sided and bound along
with the completed assignment brief on the top as the cover page.

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Grade Descriptor for Possible evidence Feedback
DISTINCTION
D1 Use critical reflection D 1.1 Conclusions have been arrived at through synthesis of ideas and
to evaluate own work have been justified
and justify valid
conclusions Chapter 3 critically evaluates e-commerce systems currently in use for
similar business purposes in the world, the learner has justified the
market potential for an e commerce solution for the selected
organization through an effective SWOT and PESTEL analysis while
synthesizing own ideas in to an effective conclusion on why this
organization must select e-commerce solutions

D2 Take responsibility for D2.3. Activities have been managed

managing and
organizing activities
Overall work is a managed study and submitted the report within the
assigned time duration

D3 D3.5 Innovation and creative thought have been applied

Demonstrate
convergent / lateral / In Chapter 4, the proposed e-commerce solution is creative and
creative thinking Innovative in terms of applicability to the organization selected.

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Strengths: Weaknesses:

Future Improvements & Assessor Comment:

Assessor: Signature: Date: ____/____/______

Internal Verifier’s Comments:

Internal Verifier: Signature: Date: ____/____/______

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Table of Contents

Table Of Contents----------------------------------------------------------------------------------------------------- 11
Table Of Figures------------------------------------------------------------------------------------------------------- 12
List Of Tables----------------------------------------------------------------------------------------------------------- 14
Acknowledgement----------------------------------------------------------------------------------------------------- 15
Summary----------------------------------------------------------------------------------------------------------------- 16
Task 1 – Organization Profile--------------------------------------------------------------------------------------- 17
1.1 Assess Core Business Functions Of My Toys (Pvt.) Ltd. Making Assumptions Where It
Is Necessary.--------------------------------------------------------------------------------------------------------- 17
1.1.1 Core Business Functions Of An Organization-----------------------------------------------------17
1.1.2 Business Functions-------------------------------------------------------------------------------------- 18
1.1.3 Organizational Structure Of My Toys---------------------------------------------------------------19
1.2 Identify The Stakeholders Involved In The Operations Of An Organization Such As My
Toys And By Using A Suitable Tool, Evaluate The Organization’s Business Aims In Relation
To Their Stakeholders.-------------------------------------------------------------------------------------------- 20
1.2.1 My Toys Vision------------------------------------------------------------------------------------------ 20
1.2.2 Aims And Objectives------------------------------------------------------------------------------------ 20
1.2 3 Identification Of Stakeholders------------------------------------------------------------------------21
1.2.4 Business Aims And Objectives-----------------------------------------------------------------------22
Task 2 - Background Of E-Commerce And Its Impact To The Society-----------------------------------23
2.1 Analyze The Impact Of Introducing Ecommerce To My Toys By Analyzing The Benefits
And Negative Impacts It Would Have Both On The Customers And The Business.---------------23
2.1.1 Background Of Ecommerce---------------------------------------------------------------------------23
2.1.2 Benefit And Negative Impacts On Customers-----------------------------------------------------23
2.1.3 Beneficial And Negative Impacts On Business---------------------------------------------------25
2.2 Discuss The Global Impact Of E-Commerce On The Society By Taking Different Examples
With Appropriate References------------------------------------------------------------------------------------ 27
2.2.1 Positive Aspects Of Ecommerce----------------------------------------------------------------------27
2.2.2 Negative Aspects Of Ecommerce--------------------------------------------------------------------28
Task 3 - Market Potential And Different E-Commerce Solutions------------------------------------------29
3.1 Investigate The Market Potential Of Introducing An E Commerce Solution To An
Organization Such As My Toys.-------------------------------------------------------------------------------- 29
3.1.1 Swot Analysis--------------------------------------------------------------------------------------------- 29
3.1.2 Pest Analysis---------------------------------------------------------------------------------------------- 30

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 3.1.3 Uses Of Swot And Pest Analysis---------------------------------------------------------------------30
3.1.4 Different Toy Companies------------------------------------------------------------------------------31
3.2. Currently There Are Different Types Of E-Commerce Systems In Use. Evaluate E-
Commerce Systems Which Are Being Used By Organizations In Current Context. You Are
Encouraged To Provide Screen Shots To Support Your Answer----------------------------------------33
3.2.1 Explanation Of E-Commerce Systems--------------------------------------------------------------33
3.2.2 E-Commerce System Types Images-----------------------------------------------------------------34
Task 4 - Proposed E-Commerce Solution------------------------------------------------------------------------36
4.1 Though It Would Generate Revenue, Implementing E-Commerce Solutions Would Require
Substantial Investment. Evaluate The Overall Financial Implications Of Implementing An E-
Commerce Solution For An Organization Such As My Toys--------------------------------------------36
4.1.1 Financial Implications Of An E-Commerce Site--------------------------------------------------36
4.1.2 Cost Of Investment-------------------------------------------------------------------------------------- 37
4.2 Based On The Above Justification On The Market Potential And The Varieties Of E-
Commerce Solutions Available In The World Of E-Commerce Solutions Design An E
Commerce Solution For My Toys That Would Support The Achievement Their Business Goals
-------------------------------------------------------------------------------------------------------------------------- 38
4.2.1 My Toys Website---------------------------------------------------------------------------------------- 38
4.3 Taking Into Consideration The Security Issues And Applicable Legislations, Evaluate The
Suitability Of The Proposed E-Commerce Solution For An Organization Such As My Toys----40
4.3.1 Types Of Feasibility------------------------------------------------------------------------------------- 40
4.3.2 Economic Feasibility------------------------------------------------------------------------------------ 40
4.3.3 Legal Feasibility------------------------------------------------------------------------------------------ 41
4.3.4 Operational Feasibility---------------------------------------------------------------------------------- 41
4.3.5 Schedule Feasibility------------------------------------------------------------------------------------- 42
Gantt Chart-------------------------------------------------------------------------------------------------------------- 43
Self-Criticism----------------------------------------------------------------------------------------------------------- 45
Conclusion--------------------------------------------------------------------------------------------------------------- 45
References--------------------------------------------------------------------------------------------------------------- 46
Indexes------------------------------------------------------------------------------------------------------------------- 47
Glossary------------------------------------------------------------------------------------------------------------------ 48

Table of Figures

Figure 1 Core Business Functions........................................................................................17

Figure 2 Organizational Structure........................................................................................19

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Figure 3 Stakeholders...........................................................................................................21
Figure 4 Swot Analysis........................................................................................................29
Figure 5Hasbro Website.......................................................................................................31
Figure 6 Lego Website.........................................................................................................31
Figure 7 Jakks Pacific Website............................................................................................32
Figure 8 Little Tikes Website...............................................................................................32
Figure 9 Alibaba Website.....................................................................................................34
Figure 10 Flipkart Website...................................................................................................34
Figure 11 Amazon Website..................................................................................................35
Figure 12 Fiverr Website.....................................................................................................35
Figure 13 My Toys Logo.....................................................................................................38
Figure 14 Today's Deals In My Toys...................................................................................38
Figure 15 Toy Varieties In My Toys....................................................................................39
Figure 16 About Us - My Toys............................................................................................39
Figure 17 My Cart - My Toys..............................................................................................39
Figure 18 Gantt Chart...........................................................................................................43

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List of Tables

Table 1 Core business functions..........................................................................................18

Table 2 Aims and Objectives...............................................................................................20
Table 3 Stakeholder's description.........................................................................................21
Table 4 Stakeholders............................................................................................................22
Table 5 Beneficial and Negative impact on customers........................................................24
Table 6 Beneficial and Negative Impacts for business........................................................26
Table 7 Pest analysis of My Toys........................................................................................30
Table 8 Swot and Pest..........................................................................................................30
Table 9 Cost of Investment..................................................................................................37
Table 10 Technical requirements.........................................................................................40
Table 11 Economic requirements.........................................................................................41
Table 12 Schedule requirements..........................................................................................42

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Acknowledgement

I would like to express my special thanks and gratitude to our lecturer Miss Shifna and to
the rest of the Esoft members. A lot of thanks to Miss Shifna, who gave us this golden
opportunity to do this assignment on this specific topic “Business Skills in E-commerce”
Thank you miss for helping us complete this assignment on time and especially for the
guidance you gave us in class.

The way you taught us was overwhelming. You were very helpful to us. It has been a great
experience to be lectured under you. And I’m grateful to have a lecturer like you. Thank
you for everything what you have done for us. We are very helpful and very thoughtful.

I have certainly done a lot of research to complete this and I have done it with utterly great
faith. From doing this assignment, I have learnt new things and I am thankful for that.

Secondly I would also like to mention that I myself put all the effort in finalizing this
assignment within the limited time frame. Thank you very much Miss Shifna for helping
us and giving us ideas on how to collaborate the assignment, my sincere thanks to you.
You have been very helpful and very thoughtful.

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Summary

In this assignment known as BSE- Business Skills for E-commerce. We have to realize
what the main purpose of this module is. Through this we have implemented a solution
based on our case study.

This assignment is separated into four tasks. In the first task it mentions about the core
business functions and how business aims and objectives relate to stakeholders of the
organization. In the second task it mentions about the history of e-commerce, how it
started, how it works and what are the specific functions of an e-commerce site.

Not only that but also the evaluation of benefits and risks towards the organization and
how it provides better business outcomes. In the third task it’s all about the SWOT and
PEST analysis and by which means it could be identified by the help of these two analysis
and introducing a new e-commerce solution.

From this case study we have to realize what kind of sources are been used and from what
kind of websites. I have certainly gained a powerful knowledge on how to differentiate
between the two types of analysis.

In the fourth task the main function is concerned about the business idea of an e-commerce
solution where it mainly focuses on the target market as the key processes but basically it
considers about the financial aspects. In the end every single kind of feasibility is been
taught in the end

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 Task 1 – Organization profile

1.1 Assess core business functions of My Toys (Pvt.) Ltd. making assumptions where
it is necessary.

My Toys (Pvt.) ltd needs different departments that communicate together to run
successfully. Each department within the business have specialist functions and without
careful communication using the company’s information system then the correct
business decisions will not be made and the company will not operate
successfully and gain maximum profit. These are the types of core business functions
 Manufacturing
 Sales & Marketing
 Human Resources
 Research & Development
 IT
 Account & Finance
 Production
 Customer Relations

1.1.1 Core business functions of an Organization

Are activities of an enterprise yielding income: the production of final goods or services
intended for the market or for third parties. Usually the core business functions make up
the primary activity of the enterprise, but they may also include other (secondary) activities
if the enterprise considers these as part of its core functions.

Diagram of Core business functions

Human Sales and Research and Customer

Marketing IT Manufacturing Relations
Resources Development

Figure 1 Core business functions

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1.1.2 Business Functions

Human Resources Sales & Marketing

 Is responsible for generating
 Maintain store staffing to numbers revenue. And ensure that the sales of toys
required by store staffing model and the services results of profit.
 Ensure compliance with all  coordinates with marketing
government regulations and paperwork department in the terns of brand-awareness,
product-launching and more
IT Manufacturing

 The use of ICT improves the service
to customers which increases the company’s
productivity and profit
 The benefits make it more efficient
so that customers will have to spend less
time to be served
 Needs to communicate with both
sales to find out what need to be made and
to send a list of the materials needed to
make new products
 Would also need to communicate
information to the sales and marketing
department about the products that are in
stock so that they can drive to sell these
items so that the company has the minimal
amount of stock at all times.


Research & Development Customer Relations

 Research and development is  They should be full aware of the
concerned in the development of new products so that they can give customers
products meaningful product information
 They are closely coordinated with  It helps in improving customer
the organizations marketing activities as satisfaction and they need improvement like
they play an integral role in the life cycle of better quality of service
a product
Table 1 Core business functions

Entrepreneur, 2018

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1.1.3 Organizational Structure of My Toys

Figure 2 Organizational Structure

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1.2 Identify the stakeholders involved in the operations of an organization such as My
Toys and by using a suitable tool, evaluate the organization’s business aims in
relation to their stakeholders.

1.2.1 My Toys Vision

My Toys has the ability to bring new products to the world every day and unlocking
additional values by ensuring the products are been tailored to the customers’ needs. The
guiding vision of My Toys is to be the leading toy company. To achieve this, we have to
work with our stakeholders to develop innovative products, sourcing and developing new
types of materials that are suited to today’s consumers

1.2.2 Aims and Objectives

Aims Objectives
 There should be a continued search  Is to provide great customer service
for sources/wholesalers for the best and products
products and prices  Looking forward to expand their
 To research how competitors in a operations in different regions of the
similar area operate and learn as country
much as you can from them  To step into regions around Asia in
 Introducing an online platform order to build their customer base
where they could publish all their and reputation over time
product information making it
available for customers
Table 2 Aims and Objectives

Source (Fab Job, 2018)

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1.2 3 Identification of Stakeholders

Customers Employees Government Business

Owners

Figure 3 Stakeholders

Customers Employees Government Toy Shop Owners

 Your  Making sure  It affects and  One of your
customers won't they receive suitable influences the primary duties will
come to you for the pay and experience markets and be to manage the
lowest toy prices good condition to businesses in ways store's daily
 They'll come work that often have operations. If
to you for the  Can vary the unexpected you've hired one or
specialty products quality of work they consequences more managers,
and service that produce which may  They create you'll need to keep
make your toy store result in complaints rules and an eye on them
a fun and welcoming framework so that and make sure
place to shop and to other business are they're doing a
linger awhile able to compete satisfactory job
with each other
Table 3 Stakeholder's description

Source (Author’s work)

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1.2.4 Business Aims and Objectives

 By offering products and services

 They value for money but they never compromise on

Customers quality

 Elaborate displays, additional services that draws customers

into business

 They have a major effect on the performance of the

organization

Employees  They receive higher rewards

 The way they perform is certainly a great benefit

 They provide services to ensure the essential services are

Government protected

 Try to rebalance the economy

 Achieving higher profits and providing better returns

 They have the ability to swap the dividends that has been
Toy shop
revised consequently
owners
 Strengthen the relationship and involve in the business plan
to promote closer relationship
Table 4 Stakeholders

Source (Author’s work)

[Author has kept the page blank intentionally]

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Task 2 - Background of E-Commerce and its impact to the
Society
2.1 Analyze the impact of introducing Ecommerce to My Toys by analyzing the
benefits and negative impacts it would have both on the customers and the business.

2.1.1 Background of Ecommerce

Electronic commerce (EC) describes the manner in which transactions take place over
networks, mostly the Internet. It is the process of electronically buying and selling goods,
services and information. Certain Ecommerce applications, such as buying and selling
stocks and airline tickets on the internet, are growing very rapidly, exceeding non-Internet
trades. Ecommerce is not just about buying and selling, it also is about electronically
communicating, collaborating, and discovering information (sometimes referred to as e-
business). It is about e-learning, e-government, social networks, and much more.
Ecommerce will have an impact on a significant portion of the world, affecting businesses,
professions, and, of course, people.

2.1.2 Benefit and Negative impacts on customers

Benefits Negative
Profits - Good customer service Identification - Customer service is
departments understand the relationship listening to the needs and wants of the
between the way they greet, treat and handle customer and striving to meets his requests
customers and the bottom line. Some seek in a polite and professional manner.
to solve problems as they occur, and, if Whether the service is offered in person, via
possible, prevent them in the first place. email or over the telephone, a customer
This can reduce the drain on company service representative must also help a
resources and increase customer satisfaction customer identify needs that they might not
by reducing the number of returns, have considered and anticipate possible
complaints and problems that crop up future needs for the customer.
because of poor handling.

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Loyalty - Treating customers with respect, Needs Go Unfulfilled - If a customer does
greeting them with enthusiasm and going not feel that his needs are being addressed
above and beyond to resolve any problems or that the business representative is more
and issues can keep customers coming back. concerned with what he feels the customers’
Customers remain confident in the company needs than what the customer is requesting,
and continue the business relationship. In the customer is less likely to buy from the
addition, happy customers help spread company. This will have an immediate
positive word-of-mouth, resulting in an impact on the bottom line.
additional avenue for marketing and Decline of Word-of-Mouth Sales - When
advertising for your company. customers are unsatisfied with either the
Internal Benefits - Good customer service product or service a company offered, they
provide exceptional customer service to will not recommend the company to others.
external and internal customers. Internal The customer might also go as far as to
customers, including marketing and product recommend others not patronize the
development, depend on the data collected business based on their negative experience.
from customer service contacts to improve This will affect sales and could lead to
existing products and services. This data can financial problems for the business.
include information related to safety issues, Decline of Repeat Customers - It costs less
production problems and poor performance. to retain current customers than it does to
The internal benefits of good customer attract new ones. Good customer service
service also stretch beyond current products keeps customers happy. If needs go unmet,
and services. Good customer service or the acknowledgment of a less-than-stellar
departments capitalize on the ideas product is lacking along with an attempt to
customers provide for suggested products satisfy customers, customers might buy
and services, leading to opportunities for from the business once, but will not return.
new innovations and revenue streams. If a company has to spend a constant
portion of their operating budget attracting
new customers, it can lead to a cash flow
problem, which can be the death knell for a
business.
Table 5 Beneficial and Negative impact on customers

Source (Chron, 2017)

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2.1.3 Beneficial and Negative impacts on business
Staying Current
Change can help a business stay current
with industry trends, which can make it
more attractive to potential customers as
well as help maintain current customers. For being physically present in the same place.
example, if a competitor develops and
markets a successful new product, a
business can ensure that it doesn't fall
behind by developing and marketing a
similar product of its own.
New Opportunities
The ability to embrace change can help
employees in a business by creating new
opportunities. A worker who
enthusiastically applies herself to learning
the new office computer system can also
train others who are more hesitant. By
assuming this leadership role, the employee
may position herself as someone who is
capable of assuming additional
responsibilities, making her a possible
candidate for future promotion.
Encouraging Innovation
Businesses that are adept at handling or
even embracing change can foster an
environment that encourages innovation.
Employees who feel that their ideas will be
considered by a manager or business owner
may be more willing to think creatively,
which can help a business grow. One good
product or marketing idea can make a big
difference in the success of a small
business.
Business Relationships
Internet technology -- such as chat rooms,
Skype and other software -- has made it
possible to hold meetings without all parties
A drawback is that meeting with somebody
over the Internet is much less personal than
meeting face-to-face. Internet technology in
business decreases the personal aspect of
business relationships. Business people used
to network in restaurants and on golf
courses. Today, the lack of physical
proximity decreases brainstorming and
other communications that use a personal
touch.
Employee Morale
Installing monitoring software in the
workplace sends the message to employees
that the company does not trust them,
according to research done under the aegis
of professor Howard Besser while teaching
at New York University. Giving employees
responsibility, trust and respect boosts their
morale and productivity. Showing them that
they are not trusted and must be recorded
decreases morale and worker productivity.
This is true regardless of the actual reasons
for installing monitoring software,
according to the same research.
Spam
Spam refers to unwanted and unsolicited

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 Increased Efficiency
Change can increase the efficiency of work
processes, which can make for more
satisfied customers as well as employees. A
new delivery process can increase the speed
in which a customer receives merchandise.
Switching to a computerized payroll process filters can only do so much. Users of spam
may mean that a salesperson is paid his
commissions sooner. A new piece of
machinery can aid a worker in speeding up
a portion of the production process in a
factory.
Improved Attitudes
A philosophical or personnel change in an
organization can have a positive effect on
employee attitudes and morale. A change in
human resources philosophy that allows for
a more relaxed work environment, such as
implementing a casual dress code, may be
welcomed by employees. When a close-
minded manager is replaced with one who is
email messages. Spam is widespread and
has negative impacts on business, according
to the article "Impact of Information
Technology on Global Business" published
by Purdue University. Wading through
spam email is a waste of time, and spam
filters must then check for necessary email
messages diverted incorrectly as spam.
Brick and Mortar
The popularity of ecommerce has had a
negative impact on brick-and-mortar retail
stores. Smaller stores are finding more and
more difficult to compete with both Internet
businesses and larger retail stores. For
example, small community bookstores must
compete with Amazon.com as well as large
stores such as Barnes & Noble that sell in
person and online. Sometimes the smaller
stores end up going out of business.
Source (Chron, 2017)

open to new ideas, employees may feel that

they have more input regarding their job
functions.

2.2 Discuss the global impact of e-Commerce on the society by taking different
examples with appropriate references
2.2.1 Positive aspects of Ecommerce

Bigger customer base

 The biggest advantage of having an online store of course is its wider range of
appeal. When you have a brick and mortar store, you are limiting your customer
base to the local group of residents.

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  If your store is big enough and unique enough, and if you have been able to build a
brand name for yourself, it is likely that you will have people coming in from
various parts of the city you are located in.
 But there would be no way of reaching out to a greater audience without opening
branches in other parts of the country, which is something your finances may not
permit. Having an online store, on the other hand, is like opening branches all over
the world without actually having to spend on them.
 A simple search in the browser is all that is required to reach your store from any
part of the world.

More convenient

 E-commerce stores are not just beneficial for the business owner, but for the
customer as well. Thanks to ecommerce websites, there is no population group
today that does not have everything available to them a click away.
 The days of lining up in long queues at storefronts and at the checkout counter are
long gone, and even remote areas can access most of the necessities and luxuries
that are physically unavailable in their locality.

Digital products 

 Ecommerce is the only business mode that will allow you to sell digital goods.
Today, more and more people are opting for eBooks, and choosing to purchase
movies and music in their digital formats instead of storing up on CDs and DVDs.
Since there is no physical presence of such digital wares, it would be impossible to
sell them through any brick and mortal store.

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Lower costs

 The decreased costing involved in opening an ecommerce store also allows the
seller to offer more discounts and even more competitive in their pricing, making
them even more lucrative to the customer.
 First of all, there is no cost involved in rent and maintenance of a storefront. You
can eliminate the expense of employees who will have to manage the storefront and
guide the consumers. Most importantly, it is always business hour in an ecommerce
store.

2.2.2 Negative Aspects of Ecommerce

Impersonal and ambiguous

 Ecommerce is a fairly new phenomenon as far as business goes. As a result, many

customers actually prefer the personal and hands on experience that a brick and
mortar store offers to the rather impersonal approach of an online store.
 Besides, some products, such and clothes, shoes, beauty products, and packaged
foods, carry some amount of ambiguity to them. It is difficult to assess the style and
size of garments and shoes, and the expiry date and portions of makeup and food
items in an online store, which is facilitated by a tangible storefront.
 There have been many instances of the wrong product being ordered and delivered
due to incorrect product listing and description, and damaged or expired goods
arriving.

Susceptible to cyber frauds

 Since the ecommerce store is entirely online, there is a huge risk associated with it
of cyber fraud. Phishing scams undertaken by individuals posing as online stores
and service providers are pretty common, and it is also quite common to hear about
identity thefts.
 This is because ecommerce websites collect data about you in order to market their
products more effectively, and payments are often made online. A simple glitch in
the system can make way for huge cyber-attacks.

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 Ecommerce has seen a major boom in recent years. It is easy to understand why: it
is comparatively cheaper for both the customer and the seller, and quite convenient
for both parties too. Source (positive negative effects, 2018)

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Task 3 - Market Potential and Different E-Commerce Solutions
3.1 Investigate the market potential of introducing an E Commerce solution to an
organization such as My Toys.

3.1.1 Swot Analysis

Strength Weakness
strong brand power limited brand image
wide product line lost of focus on key businesses
well developed distribution indifferent cultural knowledge
channel easy to copy

Opportunities Threats
electronic/technology driven toys Pc/Video games
sales to the education industry increasing power of distributors
alliances in the entertainment increased dependancy on
industry licensed products
growth in emerging markets low cost competitors

Figure 4 Swot analysis

Source (Authors work)

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Mohammed Ashraf BSE Reg No: 10774 Page | 32
3.1.2 Pest Analysis

Political Economic
 This analyses the legal issues and  It focuses on the economic
government regulations and affects the aspects and determines whether or not
probability of a business being successful they can play a role on the success of a
and profitable business
 Issues such as economic growth,
 Increase and decrease in tax which
unemployment policies as well as
might increase taxes and might have a
economic interest are to be taken into
direct effect on your businesses.
consideration
Social Technological
 This examines the cultural and  It analyses the factor which affect
demographic aspects to determine whether the means to bring its product or service
the business can compete in the market to the market
 It helps assess consumer needs as  The technology can either make
well as the other things which compel it easy or tough to improve the
them to make a purchase production level
Table 7 Pest analysis of My Toys

Source (Authors work)

3.1.3 Uses of Swot and Pest Analysis

Swot Analysis Pest Analysis
 Gives an insight to the business  This focuses on the external
internal and external issues, that is, its environmental factors which affects the
business
strength, weakness, opportunities and
threats.  It is been explored by the political
 It helps in formation of a
and legal landscape

competitive strategy in preparation for  Social factors like attitude, lifestyle

possible threats from competition. as well as the characteristics of the
consumer targets in increasing a product’s
 Evaluation of business environment
appeal
for making quick and detailed decision for
the future course of action  Essential factors that are been used
like exchange rates and monetary policies
 It helps find out whether the
Source (Quora, 2018)
business has more strength compared to its
weak points
Table 8 Swot and Pest

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3.1.4 Different toy companies

Figure 5Hasbro website

Hasbro is a global play and entertainment company committed to creating the World's Best
Play Experiences. From toys and games to television, movies, digital gaming and
consumer products, Hasbro offers a variety of ways for audiences to experience its iconic
brands, as well as premier partner brands. The Company is building its brands globally
through great storytelling and content on all screens. Hasbro is committed to making the
world a better place for children and their families through corporate social responsibility
and philanthropy.

Figure 6 Lego website

The LEGO Group is a privately held, family-owned company with headquarters in Billund,
Denmark, and main offices in Enfield, USA, London, UK, Shanghai, China, and
Singapore. Founded in 1932 by Ole Kirk Kristiansen, and based on the iconic LEGO®
brick, it is one of the world's leading manufacturers of play materials.

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 Figure 7 Jakks Pacific Website

JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and
consumer products sold throughout the world, with its headquarters in Santa Monica,
California. It offers a wide range of entertainment-inspired products featuring premier
licensed properties. JAKKS is helping to make a positive impact on the lives of children.

Figure 8 little tikes website

At Little Tikes we understand every day is an adventure with more to discover. We make
products that encourage active and imaginative play. Products that get small bodies
moving spark curiosity, create wonder and let kids dream big. With over 48 years of
expertise in play, we're experts at doing it right! The Little Tikes Company was founded in
1969 and is still headquartered in Hudson, OH. Discover The Little Tikes™ Company's
Story.

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Mohammed Ashraf BSE Reg No: 10774 Page | 36
3.2. Currently there are different types of e-commerce systems in use. Evaluate e-
Commerce systems which are being used by organizations in current context. You are
encouraged to provide screen shots to support your answer
They are different types of e-commerce systems they are as follows

 Business-to-Business (B2B)
 Business-to-Consumer (B2C)
 Consumer-to-Consumer (C2C)
 Consumer-to-Business (C2B).

3.2.1 Explanation of E-commerce systems

Business-to-Business (B2B)
E-commerce encompasses all electronic transactions of goods or services conducted
between companies. Producers and traditional commerce wholesalers typically operate
with this type of electronic commerce.

Business-to-Consumer (B2C)
The Business-to-Consumer type of e-commerce is distinguished by the establishment of
electronic business relationships between businesses and final consumers. It corresponds to
the retail section of e-commerce, where traditional retail trade normally operates.

Consumer-to-Consumer (C2C)
This type of e-commerce encompasses all electronic transactions of goods or services
conducted between consumers. Generally, these transactions are conducted through a third
party, which provides the online platform where the transactions are actually carried out.

Consumer-to-Business (C2B)
In C2B there is a complete reversal of the traditional sense of exchanging goods. This type
of e-commerce is very common in crowdsourcing based projects. A large number of
individuals make their services or products available for purchase for companies seeking
precisely these types of services or products.

Source (Bloom idea, 2018)

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Mohammed Ashraf BSE Reg No: 10774 Page | 38
3.2.2 E-commerce system types images

B2B Site – Alibaba

Figure 9 Alibaba website

B2C Site – Flipkart

Figure 10 Flipkart website

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C2C Sites – Amazon

Figure 11 Amazon website

C2B Sites – Fiverr

Figure 12 Fiverr website

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Mohammed Ashraf BSE Reg No: 10774 Page | 41
 Task 4 - Proposed E-Commerce solution

4.1 Though it would generate revenue, implementing e-commerce solutions would

require substantial investment. Evaluate the overall financial implications of
implementing an e-commerce solution for an organization such as My Toys
4.1.1 Financial implications of an e-commerce site

Personal Savings - Also known as bootstrapping, this works well when you are receiving
very low returns on your money and the cost of borrowing is high. The advantages of using
personal savings are

 No costly and complicated applications

 No interest to pay;
 Ownership of your business is not diluted.
 Friends and Family

Credit Cards - This is one of the easier ways to access funds, especially if you have
several cards. The downside is that if the interest rates are high and your business cash
flow only allows you to make the minimum payments, you will be paying off the cards for
a long time at a high cost.

Peer-to-peer Loan - This allows to make unsecured loans to other individuals and It
facilitates business loans at rates starting at a period of one to 5 years

Home Equity Loan - Consider this only if you are a homeowner with more than 50
percent of your home’s value as equity (the loan outstanding is less than half the market
value of the house). If it is and you have a good credit rating, you could get a loan at an
attractive interest rate with your home as collateral. Currently rates range from four to ten
percent.

Traditional Bank Loan - These are difficult to secure these days. Banks generally charge
fees along with interest and require collateral. Loans are usually one to five years with
interest rates ranging from six to nine percent. Businesses with a track record may also be
eligible for a business line of credit, which offers more flexibility as you can borrow
against it, pay back, and borrow more up to a limit.

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Source (Practical Ecommerce, 2018)

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4.1.2 Cost of Investment

Source
Preparation of web-site (Rs.) Total
Domain name registration 2,500.00

Web hosting 30,000.00

SSL Trust Certificate 40,000.00

72,500.00
Common expenses
Tools 19,000.00
Bus (return Rs.70* 182 days/ 6 months) 12,740.00
31,740.00
Intermediary services
PayPal fees 2.9% 40,000.00
Fixed international rates 30,000.00
70,000.00
Grand Total 174,240.00

(Authors work)

Table 9 Cost of Investment

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4.2 Based on the above justification on the market potential and the varieties of e-
commerce solutions available in the world of e-commerce solutions design an e
commerce solution for My Toys that would support the achievement their business
goals
4.2.1 My Toys Website

Figure 13 My Toys logo

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 Figure 14 Today's deals in My Toys

Figure 15 Toy varieties in My Toys

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 Figure 16 about us - My Toys

Figure 17 my cart - My Toys

4.3 Taking into consideration the security issues and applicable legislations, evaluate
the suitability of the proposed e-commerce solution for an organization such as My
Toys
4.3.1 Types of Feasibility

Technical feasibility is focused on gaining an understanding of the present technical

resource of the organization and their applicability to the expected needs of the proposed
system.

Process Requirements

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  The proposed solution is an e-commerce system on a
website, and therefore must be hosted in order to make the
Web hosting site accessible for the public.
 Hosting can be done in several ways, either by using a
home server, or a web based hosting service. Either option
has its costs and benefits.

 E-commerce solutions will have to record all the details of

sales, transactions, and many other details which requires a
huge amount of storage space.
Data sorting  Cloud storage can provide more security and other
benefits, cloud based data centers could be used for the
solution. The cloud space required can be purchased for an
additional cost from the web hosting service.
Table 10 Technical requirements

Source: Computer notes, no date

4.3.2 Economic feasibility

The purpose of the economic feasibility assessment is to determine the extent to which the
proposed system will provide positive economic benefits to the organization. This
determination involves the identification, and quantification, of all benefits expected from
the system, as well as the explicit identification of all expected costs of the project.

Process Benefits Costs

 Can be able to keep  My Toys should spend

Maintain the e- track of the customers money for their future
commerce
system and the sales done enhancements and the
throughout the year development and
maintaining the system

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  Once all the rights and
are reserved it’s a
Creating a privilege for ocean
solution
market to take the
opportunity to build up
their brand image and
the uniqueness of their
e-commerce solution
Table 11 Economic requirements
 All the property rights of
the system should be
taken so that one other
will have the rights to
copy the original work.
This may include an
payment to the Sri
Lankan government

Source: Christion et al, 2016

4.3.3 Legal feasibility

Legal feasibility of a proposed project includes a thorough analysis of any potential legal
ramifications resulting from the construction and implementation of the new system. Such
legal issues include copyright or patent infringements, violation of existing anti-trust law.

4.3.4 Operational Feasibility

The operational feasibility focuses on the degree to which the proposed development
project fits in with the existing business environment and objectives with regard to
development schedule, delivery date, corporate culture and existing business processes.
This assessment also determines the degree to which the project meets the specific
business objectives set forth during the proposal phase.

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4.3.5 Schedule feasibility

Stages of schedule Description

feasibility

 Determining the scope of the project by

System investigation
evaluating the complex problems.

 It allows a project manager to investigate on the

Feasibility study possible negatives and positive outcomes of a
project.

 It’s the process of collecting data and identifying

System analysis
problems and recommending feasible suggestions

 Based on the user requirements and the detailed

System design
analyst of a new system must be designed

 The system design needs to be implemented to

Coding make it a workable system, this demands the
coding of design into computer language.

Testing  This is where all the system errors are corrected.

 After having the user acceptance of the new

system developed, the implementation phase
Implementation
begins. Implementation is the stage of a project
during which theory is turned into practice.

 Once when the customers starts using the

Maintenance developed system problems comes up and needs
to be solved from time to time
Table 12 Schedule requirements

Source: Reserved, 2016

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Gantt chart

Figure 18 Gantt chart

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Self-criticism

I had a great understanding when doing this certain module, and was certainly a great
advantage to me and to my future. During the lesson we were taught on how to conduct a
SWOT and PEST analysis.

It was a bit complicated to understand. In fact I got a great experiences when doing this
module. A lot of thanks and appreciation to Miss Shifna for the great help that she has
given us.

Through this module I got a great understanding on how to create a website for the
organization. Learning about the business skills in E-commerce is a new thing to us. I have
never experienced such a thing.

Basically in E-commerce it’s about sites, what are the purposes of using these sites. It’s a
new thing to us and it relates to the notions of Internet economy. To learn about E-
commerce is a great advantage and I am pleased with that

Conclusion

In order to conclude, the proposed system that was made for My Toys Pvt Ltd has to
developed to a much greater height and become improved in all its assets. Everything
should be according to the client’s requirement where they should be satisfied. Another
great fact is due to the use of technology and it is a certain aspect of value to the
organization where they have the chance of improving its brands image and concerning
about the convenience of the customer

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References

Entrepreneur. 2018. Entrepreneur - Start, run and grow your business.. [ONLINE]

Available at: https://www.entrepreneur.com/. [Accessed 17 February 2018].

Dream Careers Guides from FabJob.com. 2018. Dream Career Guides from FabJob.com.
[ONLINE] Available at: https://fabjob.com/. [Accessed 17 February 2018].

Houston Chronicle. 2018. Houston News, Sports, Business, and Entertainment - The

Houston Chronicle at Chron.com - Houston Chronicle. [ONLINE] Available
at: https://www.chron.com/. [Accessed 17 February 2018].

Positive Negative Effects. 2018. Positive Negative Effects - Know about good and bad of
everything. [ONLINE] Available at: http://www.positivenegativeeffects.com/. [Accessed
17 February 2018].

Quora - A place to share knowledge and better understand the world.. 2018. Quora - A
place to share knowledge and better understand the world.. [ONLINE] Available
at: https://www.quora.com/. [Accessed 17 February 2018].

Hasbro. 2018. Hasbro Official Website | Hasbro Toys. [ONLINE] Available

at: https://www.hasbro.com/. [Accessed 17 February 2018].

LEGO.com UK - Inspire and develop the builders of tomorrow. 2018. LEGO.com UK -

Inspire and develop the builders of tomorrow. [ONLINE] Available
at: https://www.lego.com/. [Accessed 17 February 2018].

JAKKS Pacific. 2018. JAKKS Pacific. [ONLINE] Available at: https://www.jakks.com/.

[Accessed 17 February 2018].

Little Tikes. 2018. Little Tikes | Shop Kids Toys. [ONLINE] Available

at: https://www.littletikes.com/. [Accessed 17 February 2018].

Alibaba. 2018. Manufacturers, Suppliers, Exporters & Importers from the world's largest
online B2B marketplace-Alibaba.com. [ONLINE] Available at: https://www.alibaba.com/.
[Accessed 17 February 2018].

Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs &
more. 2018. Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books,
DVDs & more. [ONLINE] Available at: https://www.amazon.com/. [Accessed 17
February 2018].

Mohammed Ashraf BSE Reg No: 10774 Page | 53

Flipkart.com. 2018. Online Shopping Site for Mobiles, Fashion, Books, Electronics, Home
Appliances and More. [ONLINE] Available at: https://www.flipkart.com/. [Accessed 17
February 2018].

Mohammed Ashraf BSE Reg No: 10774 Page | 54

Indexes

B I

B2b, 27, 28, 39 It, 11, 12

B2c, 27, 28
P
C Pest, 24
C2b, 27, 29
S
C2c, 27, 29
Cd, 2 Swot, 23, 24

D U

Dvd, 21 Uk, 3, 25, 39

Usa, 25
E

Ec, 17

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Glossary

B2B – Business to Business

B2C – Business to Consumer

C2C – Consumer to Consumer

C2B – Consumer to Business

SSL – Secure Sockets Layer

SWOT – Strength, Weakness, Opportunities, Threats

PEST – Political, Economic, Social, Technological

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