Define ‘ Controlling’. Explain its importance.

Definitions :

1.       Donnell : "Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course."

2.       Philip Kotler : "Control is the process of taking steps to bring actual results and desired results closer together."

3.       Harold Koontz : "Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished."

IMPORTANCE OF CONTROLLING

Importance of Controlling is as follows :

1.       Fulfilling Organizational Goals : Controlling function helps to measure the progress towards the organizational goals and points out the deviations, if any and then suggests the corrective action towards the fulfilment of the organizational goals. In this way controlling helps to achieve the goals of the organization.

2.       Accuracy of Standards : A good control system helps management to verify the standards set are accurate or not. An efficient control system keeps a careful check on the changes taking place in the organization and helps to review the standards in light of such changes.

3.       Efficient Use of Resources : By using control techniques, a manager helps to reduce wastage and spoilage of resources. This ensures that resources are used in the most efficient and effective manner so as to achieve organisational objectives.

4.       Improving Employee Motivation : A good control system ensures that employees knows well in advance what they are expected to do and what are the standards of performance. Once the organizational objectives are achieved then they are rewarded with monetary and non-monetary incentives. This motivation helps the employees to perform more better in future.

5.       Ensures Order and Discipline : Controlling function brings about order and discipline in an organization. It helps to reduce the bad behaviour on the part of the employees. Under this system, regular checking is done by the authorities concerned and preventive actions are taken to avoid any deviations in already set targets.

6.       Facilitates Co-ordination : Control systems are designed in such a way that they focus not only on operating responsibilities of a manager but also on his ultimate responsibility. All the departments in the organization are 'interdependent on each other. There is always a possibility of having a good relationship between all the department managers. Co-ordination between the heads of departments can help to find out any deviations- in their respective departments and use the remedial measure so that desired results can be achieved.

7.       Psychological Pressure : Control pressure puts a psychological pressure on the individuals to perform better. Their performance is evaluated with the targets set for them. Everyone is likely to put on their best performance as they are aware that it will be evaluated. They may also have a pressure to achieve the results according to the standards fixed for them.

8.       Organizational Efficiency and Effectiveness : Proper control ensures organizational efficiency and effectiveness. Factors of control like making managers responsible, motivating them for higher performance and achieving co-ordination in their performance ensures that the organisation works efficiently. An organization is effective if it is able to achieve its desired objectives.

9.       Corporate Image : Controlling function helps to improve the overall performance of the organization. Progress in the business is measured in terms of planned standards and actual performance, if there is any deviation then corrective measures are applied and desired results can be achieved. This builds a good corporate image and brings goodwill for the business.

10.        Managerial Responsibility : Managerial responsibility is created through assignment of activities to various individuals. This process starts at the top level and goes to the lower level. A manager assigns some activities to his subordinates and controls them.

FUNCTIONS AND NEED OF ENTEREPRENEUR

The functions of an entrepreneur are many as they are the sole arranger of an entire organization. They can be explained as follows:

1.       Determination of objectives : An entrepreneur has to determine the aims and objectives of the enterprise. He should change them as per required conditions or prefer those which are advantages to the enterprise.

2.       Innovation : An entrepreneur is basically an innovator who introduces new combinations of means of production. He introduces something new in any branch of economic activity. Innovation implies doing new things or doing those things that one already is being done in a new way. Innovation also involves problem solving and the entrepreneur gets satisfaction from using his capabilities in attacking problems.

3.       Good relations : The development of an enterprise greatly depends on the efficient relations of the, superiors, subordinates and all employees. Coordination among the employees of the enterprise will have great effect on the success of an enterprise.

4.       Organizing funds : To keep the enterprise run successful the need of adequate financial resources, has to be looked after by the entrepreneurs. A good relation with the existing and potential investors has to be looked after.

5.       Acquiring new technology : The requisition of new efficient technological equipment and the timely revision of it as new machinery appears.

6.       Development of market : The entrepreneurs from time to time try different acts to develop the market for its products. It should also develop the new product in the market or look forward to consumer's demand.

7.       Risk bearer : Future is uncertain and unknown. The entrepreneur has to take risk in any circumstances. If the enterprise succeeds, the entrepreneur gets profits, if it does not, losses occur. Risk is of two types, insurable or non-insurable. Non-insurable risk can be reduced by the entrepreneur by using his skills and good judgment of the PREVAILING environment.

8.       Taking decisions : When an entrepreneur is convinced with his idea of a new production, he decides to enter the market with all his motivation and ability. He has to take wise decisions to formulate a proper action plan.

         Economist Kilby Peter has enumerated 13 functions of an entrepreneur. He is of the opinion that an entrepreneur has to perform the following kinds of activities for the successful operations of the enterprise.

1.       Perception of market opportunities.

2.       Gaining command over scare resources.

3.       Purchasing inputs.

4.       Marketing of products and responding to the competition.

5.       Dealing with the public bureaucracy.

6.       Managing human resources of the firm.

7.       Management of customer and supplier relations.

8.       Financial management.

9.       Managing production.

10.     Acquiring and overseeing - assembly of factory.

11.     Industrial engineering.

12.     Upgrading process and product quality.

13.     Introduction of new production techniques and products.

Introduction to E-Commerce

Definition of e-commerce

Although there are many definitions and explanations of e-commerce, the following definition provides a clear distinction. The reader is advised to look at the recommended texts for their interpretations of the following:

• Electronic commerce, or e-commerce, is defined to be the process of businesses trading with other businesses and the formulation of internal processes using electronic links.

• Electronic business, or e-business, is a term often used interchangeably with e-commerce, but is more concerned with the transformation of key business processes through the use of internet technologies.

From your reading it should be apparent to you that electronic commerce is more than online shopping. A more generic definition of electronic commerce would include electronic funds transfers used by many banks as well as business to business communications using the internet, extranet and intranet networks.

Categories of e-commerce

• Business-To-Business e-commerce

The largest category of e-commerce is business-to-business (B2B) commerce. This involves companies conducting e-procurement, supply chain management, network alliances, and negotiating purchase transactions over the internet. Businesses use e-commerce to lower transaction costs of conducting business and to make savings in terms of time and effort when conducting business.

• Business-To-Consumer e-commerce

Business-to-consumer (B2C) e-commerce involves businesses introducing products and services to consumers via internet technologies. This includes companies selling software and hardware through the internet, taking orders for products that are subsequently delivered to the consumer, and providing digital services such as online magazines and search engines.

• Business processes

Business process refers to the use of e-commerce to tailor the internal activities of a business in order to maximize their efficiency and effectiveness. Through the use of e-commerce, businesses can fine-tune supply chains, provide advanced consumer relations management systems, and reduce transaction costs.

• Consumer-To-Consumer e-commerce

Consumer-to-consumer (C2C) e-commerce is concerned with the use of e-commerce by individuals to trade and exchange information with other individuals. There has been a huge growth in consumer-to consumer auctions sites such as e-Bay and sites enabling consumers to offer goods and services to other consumers on an individual basis.

• Business-To-Government e-commerce

Business-to-government (B2G) e-commerce is concerned with the need for business to sell goods or services to governments or government agencies. Such activities include supplying the army, police force, hospitals and schools with products and services. Furthermore, businesses will often compete in an online environment for contracts to provide services to the public on behalf of the government. Such services may include the collection of taxes, and the supply of public services.

Advantage and Disadvantage of E-Commerce

Advantages of electronic commerce

All the advantages of electronic commerce for businesses can be summarized in one statement:

Electronic commerce can increase sales and decrease costs. Advertising done well on the web can get even a small firm’s promotional message out to potential consumers in every country in the world. A firm can use electronic commerce to reach narrow market segments that are geographically scattered. The web is particularly useful in creating virtual communities that become ideal target markets for specific types of products or services. A virtual community is a gathering of people who share a common interest, but instead of this gathering occurring in the physical world, it takes place on the internet.

Advantages:

♦ A business can reduce the costs of handling sales inquiries, providing price quotes, and determining product availability by using electronic commerce in its sales support and order-taking processes.

♦ Electronic commerce provides buyers with a wider range of choices than traditional commerce.

♦ Electronic commerce provides buyers with an easy way to customize the level of detail in the information they obtain about a prospective purchase.

♦ Electronic payments of tax refunds, public retirement, and welfare support cost less to issue and arrive securely and quickly when transmitted over the internet.

♦ Electronic payments can be easier to audit and monitor than payments made by cheque, providing protection against fraud and theft losses.

♦ Electronic commerce can also make products and services available in remote areas.

Disadvantages of electronic commerce

Some businesses are less suitable for electronic commerce. Such businesses may be involved in the selling of items which are perishable or high-cost, or which require inspection before purchasing. Most of the disadvantages of electronic commerce today, however, stem from the newness and rapidly developing pace of the underlying technologies. These disadvantages will disappear as electronic commerce matures and becomes more available to and accepted by the general population.

Disadvantages:

♦ Return-on-investment is difficult to calculate.

♦ Many firms have had trouble recruiting and retaining employees with the technological, design, and business process skills needed to create an effective electronic commerce presence.

♦ Difficulty of integrating existing databases and transaction-processing software designed for traditional commerce into the software that enables electronic commerce.

♦ Many businesses face cultural and legal obstacles to conducting electronic commerce.

What is E-Learning? Compare E-Learning with traditional classroom learning.

Ans: E-Learning:

Technology base learning; learning materials are delivered via the internet to remote learners world wide.

Advantage of E-Learning:

• Learning-centered and self paced.
• Time and location flexibility.
• Cost-effective for learners.
• Potentially available to global market.
• Unlimited access to knowledge.
• Archival capability for knowledge reuse and sharing.

Disadvantage of E-Learning:

• Lack of immediate feedback in asynchronous e-learning.
• Increased preparation time for the instructor.
• Not comfortable for some people; requires more maturity and self-discipline.
• Potentially more frustration, anxiety, and confusion.

Advantage of Classroom Learning:

• Immediate feedback.
• Familiar to both students and instructors.
• Motivates students.
• Cultivate of a social community

Disadvantage of Classroom learning:

• Instructor-centered
• Time and location constraints
• More expensive to deliver

E-Commerce Disadvantages And Constraints

Some disadvantages and constraints of e-commerce include the following.

Time for delivery of physical products . It is possible to visit a local music store and walk out with a compact disc, or a bookstore and leave with a book. E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs money. In some cases there are ways around this, for example, with electronic files of the music or books being accessed across the Internet, but then these are not physical goods.

Physical product, supplier & delivery uncertainty . When you walk out of a shop with an item, it’s yours. You have it; you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust. This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition. Secondly, because supplying businesses can be conducted across the world, it can be uncertain whether or not they are legitimate businesses and are not just going to take your money. It’s pretty hard to knock on their door to complain or seek legal recourse! Thirdly, even if the item is sent, it is easy to start wondering whether or not it will ever arrive.

Perishable goods . Forget about ordering a single gelato ice cream from a shop in Rome! Though specialized or refrigerated transport can be used, goods bought and sold via the Internet tend to be durable and non-perishable: they need to survive the trip from the supplier to the purchasing business or consumer. This shifts the bias for perishable and/or non-durable goods back towards traditional supply chain arrangements, or towards relatively more local e-commerce-based purchases, sales and distribution. In contrast, durable goods can be traded from almost anyone to almost anyone else, sparking competition for lower prices. In some cases this leads to disintermediation in which intermediary people and businesses are bypassed by consumers and by other businesses that are seeking to purchase more directly from manufacturers.

Limited and selected sensory information. The Internet is an effective conduit for visual and auditory information: seeing pictures, hearing sounds and reading text. However it does not allow full scope for our senses: we can see pictures of the flowers, but not smell their fragrance; we can see pictures of a hammer, but not feel its weight or balance. Further, when we pick up and inspect something, we choose what we look at and how we look at it. This is not the case on the Internet. If we were looking at buying a car on the Internet, we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person. And, taking into account our other senses, we can’t test the car to hear the sound of the engine as it changes gears or sense the smell and feel of the leather seats. There are many ways in which the Internet does not convey the richness of experiences of the world. This lack of sensory information means that people are often much more comfortable buying via the Internet generic goods – things that they have seen or experienced before and about which there is little ambiguity, rather than unique or complex things.

Returning goods. Returning goods online can be an area of difficulty. The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process. Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop.

Privacy, security, payment, identity, contract. Many issues arise – privacy of information, security of that information and payment details, whether or not payment details (eg credit card details) will be misused, identity theft, contract, and, whether we have one or not, what laws and legal jurisdiction apply.

Defined services & the unexpected. E-commerce is an effective means for managing the transaction of known and established services, that is, things that are everyday. It is not suitable for dealing with the new or unexpected. For example, a transport company used to dealing with simple packages being asked if it can transport a hippopotamus, or a customer asking for a book order to be wrapped in blue and white polka dot paper with a bow. Such requests need human intervention to investigate and resolve.

Personal service. Although some human interaction can be facilitated via the web, e-commerce can not provide the richness of interaction provided by personal service. For most businesses, e-commerce methods provide the equivalent of an information-rich counter attendant rather than a salesperson. This also means that feedback about how people react to product and service offerings also tends to be more granular or perhaps lost using e-commerce approaches. If your only feedback is that people are (or are not) buying your products or services online, this is inadequate for evaluating how to change or improve your e-commerce strategies and/or product and service offerings. Successful business use of e-commerce typically involves strategies for gaining and applying customer feedback. This helps businesses to understand, anticipate and meet changing online customer needs and preferences, which is critical because of the comparatively rapid rate of ongoing Internet-based change.

Size and number of transactions. E-commerce is most often conducted using credit card facilities for payments, and as a result very small and very large transactions tend not to be conducted online. The size of transactions is also impacted by the economics of transporting physical goods. For example, any benefits or conveniences of buying a box of pens online from a US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to you in Australia. The delivery costs also mean that buying individual items from a range of different overseas businesses is significantly more expensive than buying all of the goods from one overseas business because the goods can be packaged and shipped together.

E commerce with different perspective

What is E-Commerce? Explain with different perspectives.

Ans:

There are several ways of looking at e-commerce:

Communication: It is the ability to deliver products, services, information, or payments via networks like the internet.

Interface: E-commerce means information and transaction exchange: (Business to business, Business to consumer, Consumer to consumer, and business to government.)

Business process: E-Commerce means activities that support commerce electronically by networked connections. For Example business processes like manufacturing and inventory etc.

Online: E commerce is an electronic environment that allows sellers to buy and sell products, services, and information on the internet. The Products may be physical like Cars, Computers, Books or services like news or consulting.

Structure:

Ecommerce deals with various media: data, text, video, web pages, and internet telephony.

Market: E-commerce is a world wide network. A local store can open a web storefront and find the world at doorstep- customers, suppliers, competitors, and payments services, Of course, an advertising presence is essential.

The Driving Forces for E-Commerce

Market and Economic Pressures

1. Strong competition: Now competitions the part of any business and companies are implementing new techniques every day to bear their competitors. E-Commerce is one of the tools of recent days, which is adopted by the companies.

2. Global Economy: In Present Scenario world becomes a global village and there are standard patters in market for business, so every country must follow these norms. There is huge gap between the growth rate of developed and developing nation, so more and more developed nations are investing in every part of world. E-Commerce is the need of such a scenario.

3. Extremely Low Labour Cost in Some Countries: Now this the common feature of business that companies are having manufacturing units in one are of the world and the same products is marketed in other part of the world. Definitely some medium is required to maintain it and e commerce is providing such medium.

4. Frequent Changes in Market demands: As we discussed above that the age of techolnology so any change which takes place in part of the world, rapidly reflects every where so e-commerce it the tool which is necessary to sustain in present fast changing world.

5. Increase Expectation of Consumers: The expectation of consumers about quality and services are very high, so it works like driving force for e-commerce.

6. Awareness Among Consumers: Awareness Among Consumers: Now consumers are well aware. Internet, print media and electronic media keep update the consumers about new products and their rates.

Societal And Environmental Pressures

1. Government Regulations: Every country have its own rules and regulations but now a days almost every country have well defined cyber laws which provides a right environment for the e commerce.

2. Reductions in Government subsidies: Now world is very open, some countries provides lot of rebate in tax and in other forms to do business. But some other countries reducing the soaps for business. E-commerce provides the opportunity to take these challenges.

3. Rapid Political Changes: Whenever government changes n any country there are some changes in guidelines and polices towards the business. It is also work as driving force for the e-commerce.

Technological Pressures

Rapid Technological Changes: Technology is the factor, which provides e-commerce an opportunity to become and perfect solution for business.

New Technologies: New and secure technology available in the market, which provides an easy, cheap and secure platform for the e-commerce.

Information Overload: By using e-commerce we can easily efficiently manage information about the product and other business related things. This is a cheap and secure medium for managing important information.

Digital Convergence: The digital revolution has made it possible for digital devices to communicate with one another. The Internet's massive growth during the past decades- a creation of market forces- will continue. Steady increase in computer power and decreasing cost made navigation on the internet.

Introduction to E-Business

E-Business

A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization.

E-business is the conduct of business on the internet, in supply chain planning, tracking, fulfillment, invoicing, and payment. It includes buying and selling as well as servicing customers and collaborating with business partners.

E-Business goes beyond a website on the Internet to affect all aspects of business from strategy and process to trading partners and the ultimate consumer. It combines the resources of traditional information systems with the global reach of the web.

In Business, organizations have several goals in mind:

1. Reach new markets

2. Create anew products or services.

3. Build customer loyalty.

4. Enrich human capital.

5. Make the best use of existing and emerging technologies

6. Achieve market leadership and competitive advantage.

Cable and Its Type

Twisted pair cabling comes in two varieties: shielded and unshielded. Unshielded twisted pair (UTP) is the most popular and is generally the best option for school networks.

Unshielded Twisted Pair

The quality of UTP may vary from telephone-grade wire to extremely high-speed cable. The cable has four pairs of wires inside the jacket. Each pair is twisted with a different number of twists per inch to help eliminate interference from adjacent pairs and other electrical devices. The tighter the twisting, the higher the supported transmission rate and the greater the cost per foot. The EIA/TIA (Electronic Industry Association/Telecommunication Industry Association) has established standards of UTP and rated six categories of wire (additional categories are emerging).

Categories of Unshielded Twisted Pair

Unshielded Twisted Pair Connector

The standard connector for unshielded twisted pair cabling is an RJ-45 connector. This is a plastic connector that looks like a large telephone-style connector. A slot allows the RJ-45 to be inserted only one way. RJ stands for Registered Jack, implying that the connector follows a standard borrowed from the telephone industry. This standard designates which wire goes with each pin inside the connector.

Shielded Twisted Pair (STP) Cable

Although UTP cable is the least expensive cable, it may be susceptible to radio and electrical frequency interference (it should not be too close to electric motors, fluorescent lights, etc.). If you must place cable in environments with lots of potential interference, or if you must place cable in extremely sensitive environments that may be susceptible to the electrical current in the UTP, shielded twisted pair may be the solution. Shielded cables can also help to extend the maximum distance of the cables.

Shielded twisted pair cable is available in three different configurations:

Each pair of wires is individually shielded with foil.

There is a foil or braid shield inside the jacket covering all wires (as a group).

There is a shield around each individual pair, as well as around the entire group of wires (referred to as double shield twisted pair).

Coaxial Cable

Coaxial cable is an early version of the way computers were connected to a network and it worked well. It is the cable in cable TV. This cabling has a single copper conductor at its center. It allows higher data transmission rates over long distances.

A plastic layer provides insulation between the center conductor and a braided metal shield. The outer shield is used as an electrical ground that simultaneously protects the inner core from the interference.

Coaxial cable can transmit up to 10Mbps for a distance of up to 500 meters. The main drawback of this type of cable is its inflexibility and low security, but it requires little maintenance and its simple to install. It also provides better resistance to electrical noise over long distance, and its electronic support components are affordable.

Fiber Optic Cable

Fiber optic cabling consists of a center glass core surrounded by several layers of protective materials. It transmits light rather than electronic signals eliminating the problem of electrical interference. This makes it ideal for certain environments that contain a large amount of electrical interference. It has also made it the standard for connecting networks between buildings, due to its immunity to the effects of moisture and lighting.

Fiber optic cable has the ability to transmit signals over much longer distances than coaxial and twisted pair. It also has the capability to carry information at vastly greater speeds. This capacity broadens communication possibilities to include services such as video conferencing and interactive services. The cost of fiber optic cabling is comparable to copper cabling; however, it is more difficult to install and modify. 10BaseF refers to the specifications for fiber optic cable carrying Ethernet signals.

The center core of fiber cables is made from glass or plastic fibers. A plastic coating then cushions the fiber center, and Kevlar fibers help to strengthen the cables and prevent breakage. The outer insulating jacket made of Teflon or PVC.

There are two common types of fiber cables -- single mode and multimode. Multimode cable has a larger diameter; however, both cables provide high bandwidth at high speeds. Single mode can provide more distance, but it is more expensive.

E-Commerce guess paper for MBA students

Each question 12 marks

1.

a) What do you mean by EDI? Explain Layered Architecture of EDI.

b) Define E-Commerce. Explain Type of E-Commerce.

2.

a) Write short notes on following (any 2):

a) WWW and HTTP

b) Intranet & Extranet

c) Architectural framework of E-Commerce

OR

Explain the various business model in b-business.

b) Write a short note on E-Governance how it is differ by e-government?

3.

a) What do you mean by Firewall? Explain the different type of firewall.

b) What do you mean by Electronic Payment System? explain its type.

4.

a) What do you meany by Cryptography? Explain Single and Public Key Cryptography.

b) What do you mean by Digital Signature? how it is differ by Digital Certificate?

5.

a) Define Internet Architecture.

b) What do you mean by M-Commerce? What are the advantage of M commerce over E-Commerce?

6.

a) What are the forces behind the e-commerce? Also write down the reason behind the failure of E-commerce.

b) How supply chain management can improved with the help of EDI?

c) What are the various type of transmission media used in networking?

7.

a) Write down explanatory note on Emerging Trends in e-Business

b) How has internet technology changed business model?

8. Define the following :

a) HTTP

b) FTP

c) VPN

d) WWW

e) GPRS

ALL THE BEST......

E-Business

A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization.

E-business is the conduct of business on the internet, in supply chain planning, tracking, fulfillment, invoicing, and payment. It includes buying and selling as well as servicing customers and collaborating with business partners.

E-Business goes beyond a website on the Internet to affect all aspects of business from strategy and process to trading partners and the ultimate consumer. It combines the resources of traditional information systems with the global reach of the web.

In Business, organizations have several goals in mind:

1. Reach new markets

2. Create anew products or services.

3. Build customer loyalty.

4. Enrich human capital.

5. Make the best use of existing and emerging technologies

6. Achieve market leadership and competitive advantage.

Road Transport and Water Transport.

Basis of Difference	Road Transport	Water Transport
Speed	Road transport has limited speed due to bad road conditions, accidents, etc.	It is slowest mode of transport.
carrying capacity	It has limited carrying capacity.	It has a very huge carrying capacity.
Cost of construction and maintenance	It requires limited capital investment in terms of construction of road, vehicles and their maintenance.	It uses waterways which are natural high-ways and hence there is no cost involved. However, there is high cost involved for construction of ships and ports.
Distance	Recommended for short distance.	Suitable for long distances especially across countries and continents.
Transport charges	Transport charges are not fixed but are high due to increased fuel prices.	Transport charges are lowest.
Door to door service	It provides door to door service.	It is suitable for transporting very heavy goods, machineries in large quantities to any part of the world.
Means of transport	It uses animal’s carts, motor-cycles three and four wheelers.	It uses boats, big ships, liners, tankers. Etc.
Ownership	Ownership is in the hands of private parties.	It is owned by both private sector as well as public sector.
Safety	It provides limited safety to goods from sun, rain, wind, etc.	Goods are safe as they are specially packed.