Business Economics Assignment

When we speak nearly the factors of mathematical product, in that consider atomic number 18 nigh overlapping categories. stinting experts choose used the four widely distributed factors of turnout (Land, labor, hood and entrepreneur) from the very proterozoic stage. These factors contribute a whopping specify of the industrial r evolution in the sass, because the factors of production, peculiarly entrepreneurs were largely split into groups. Labors, for instance, seldom deliver capital or argona, nor did they begin their own short letter. Land lords al close to never did manual of arms labor, nor did they become owning factories.In the olden days (18th century) entrepreneur, labor, capital and land, were non only four categories Of factors f production, they were four diametrical socio-economic groups. Traditional melodic line Vs.. E- chore concern When we examine tralatitious business and e-business, both atomic number 18 similar in screen background to the competitive securities industry. Although a brick-and-mortar obtain and an online merchandiseplace atomic number 18 both real, they appeal to contrasting characteristics, display their faithfuls through different methods and strand so forth forth consumers different levels of pricing, serve and comfort transmit (Christina Hamlet).The fol pocket-sizeding argon round of the monumental differences of conventional business and E-business. Needs perspicacity The nature a diminished business and the type and quantity of customer fundamental interaction it supplicates to be successful dictate whether you beef for a physical address or a practical one. For instance, youre providing writing, copy-editing, consulting, and accounting or billing service. While, your primary inter casing with your guests is by telephone, email and fax, negating the need for batspace beyond a floor lieu.On the other hand, a sm every(prenominal) business in which you sell cosmetics, jewelry, gra phics, piece of furniture or nucleotide equipment will require display space, changing rooms and veracious terminus. Page 4 As a single business proprietor, you atomic number 18 just equally likely to desire about its libeling, whether its far a mode or close. To mannequin tryout work life from your ad hominem life has been normally a big challenge when personal life and work life live under the aforementioned(prenominal) roof.The any duration availability surround of e- business makes it to induce knowing yourself as accessible to your customers round-the-clock, something that would non go on if you kept traditional hours at a shop. Legalities and Expenses Traditional craft and e-businesses both require you to possess a business permit. Registering your business name with the registrar, acquiring a tax ID number, examining local govern and licensing regulations, acquiring insurance pertinent to your necessitate and creating banking relationships are critical steps in setting up shop in either Traditional Business or e-businesses.While telecommunications expenses, office supplies and a marketplaceing or advertising budget are undeniable expenses in both traditional and work. But, in the traditional commercial enterprise sit has to a greater extent overhead expenses such as lease, staff salaries and other benefits, maintenance live and expenses incurred for security arrangements, still, e-business operate from a home Office, which utilizes mostly existing facilities. Customer ConvenienceSince e-business is on hand(predicate) 24 hours (24/7), customers are freer from the challenges, like, difficulties in comer the shops due to bad weather or difficulties in parking, than a physical shop located across town, which is normally string out five days a week for a specific time period. E-commerce not only save customers time and energy, it also, avoids customers from paying(a) sales taxes, offer more outlets to compare stores. However, most of the customers need to inspect the sellers personally, arrive advice as well as contain and be able to fall apart the goods home immediately instead of paying hipping be and waiting.However, a traditional business satisfies those postulate by producing an environment, where customers tin can deal face to face. Page 5 In economics, the market structure is the number of firms producing similar products which are identical. The following are some of the profound market structures of todays business environment. Monopolistic challenger In these markets, there is a large number of firms, each firm is having a small proportion of the market component part and slightly differentiated products. It is a marketplace, where a miniscule number of firms that together bear the ajar share of the market.Monopoly This is a market condition, where there is a single supplier Of a product or service. faultless competition The Perfect Competition affectionate system is a theoretical structu re that features no barriers to entry, an unlimited number of producers and consumers, and a abruptly e abideic motive curve. The continuous evolution of engineering science is changing the way we do business, the dynamics of the workplace and what we perceive is possible. During the stand up 10 to 15 years, the engineering science is exceedingly changing the approach and the production processes.Significantly, the proceed evolution of electrification and Information Technology is increase the ongoing translation of the business environment to hold advantage of available tools and opportunities (Rosily Frenzy). In some countries, there can however be arguments among the traditional practices and the current business methods that can be completed through technology. This big businessman be that finality makers still have not in full appreciated for the irrecoverable changes that technology had brought to the business methods. Indeed, to get these changes, the key role is contend by profit.The Internet is quickly befitting the base of choice for e-commerce. Because it offers a normal and user friendly set of technology, which can be used by all organizations, no matter which information technology course of study they use. Moreover, this technology offers a very much cheaper and easier replacement for steering activities than traditional methods. Business organizations can utilize Internet technology to decrease their operational and administrative expenses. Fundamentally, mesh technology lowers the cost of information processing, bleed and storing of data while producing that information more widely useable.Page 6 By utilize Internet and other networks for e-commerce, organizations in some industries can make transactions this instant with clients and suppliers. The Internet can assist companies for the production and making profits in stark naked ways by adding special time value to existing products and services. In many e- commer ce weapons platforms, like Ebay, Alabama or amazon creates information brokers, virtual storefronts, transaction brokers, online marketplaces, online service providers, content providers, virtual communities, and online portals.Following are some of the enhancements brought by information and digital technology. productivity The usage of computers has changed the work environment and the accelerate Of ark in the past days. It pushed down the cost of data processing, and the simplicity with which large volumes of data can be manipulated by and transferred between several units within the business organization. And also, and so increasing the processing power on with the extensive range of standard and customized ironware and software.This resulted in changing employer and client mindset of work quality and output, at the employee and organisational levels. Banking services are good examples of this point. A wide range of services are giving through internet or intranet which involves a number of different footgear and hardware. Some of the services supplied by monetary institutions with the do of technology is ATM and internet banking services. Today, most of the banks realize that they should change the way they do business to take level best profit.For instance, Americas most go-getting banks were SSH fitting from acquisitions to providing Internet-establish fiscal services (John McCoy) Collaboration In a situation, where persons might not be in office to physically interact with clients, technology is providing a number of connectivity choices that facilitate continued treatment and collaboration among work forces. Options can low both the real-time and non-real time communication, and also they can integrate into a platform of specialists to access and use of different tools and features.For example, throng can buy and sell on Ebay at any time, in profit to that, buyers and sellers can communicate real time or non-real time. Some of the other historied online stores are Amazon, Alabama, best buy etc. Page 7 Resounding With the help Of technology, business organizations find new ways Of increasing their options. Cloud computing is a good example, which offers a large reach of resources, such as computer applications, online storage and processing power. By the help of the obliterate technology, companies can decentralized or allot different aspects of their businesses to either affiliate or third parties.For example, Google provides online storage, which allows organizations as well as individuals to store and share their documents whenever they want. Interaction and friendship Customer interaction and participation is pronto apparent through the impact Of kind media in business. In addition to providing a platform for the distribution of information, marketing and advance, social media creates an environment to generate feedback from consumers and the public. Many organizations are starting to take advantage of th e chances to take into custody feedback on their products and services (Jack Supple and Michael Schmaltz).A good model for such platform is Faceable, which offers a number of chances for the purpose of marketing and promotion as well as communion information and cool electing feedbacks. Cost management While performing in a competitive marketplace, Organizations are continuously difficult to manage the operational costs and to concur exiting. To accomplish this goal, technology has provided a platform with cost effective alternatives, such as skilled labor and computing resource outsourcing. This result, increasing productivity, efficiency and individual performance.The financial results of the top 25 e-commerce platforms including the AOL, eBay, Yahoo and so on, all together generated about $5 billion in revenue and spend around $1 billion last year (Ion McCoy). For example, Banks and Airlines. Processing an airline tatter on the Internet costs $1 , compared with $8 through a hold out agent (the Economist). Page 8 efficacy and optimization At last, this stage is a very significant outcome of most of the points brought up earlier, since there is a high expectation of the organizations becoming more efficient.In traditional business models, one of the greatest challenges that organizations have confronted is that although they might be very splay about what their core objectives might be, massive attention on financing, workforce, management, and etc. Had been prone to supporting activities and processes to the core business. However, technology based companies have more choices through which to move their efforts towards the most important natural processes that they essential manage, thereby increasing productivity and output.Effects on factors of production In todays business world, the factors of production are used in different says. Lets take the four factors of production to beat the impact of information technology. Land In recent days, th e number of businesses moving to e-business are increasing and the amount of physical stores is decreasing. This reduces the demand for land and increasing availability Of land at a cheaper rate. Labor When organizations are focusing more on internet based activities, the involvement human activities are turning more depressed.