Introduction to Emerging Business Trends

Changing Mode of Business

Over the past decade, the way businesses operate has changed significantly. Mode of Business
refers to how business is conducted. The term 'emerging' highlights that these changes are
ongoing and will likely continue.
Key Trends Shaping Business:
1. Digitization: Converting content (text, sound, video) into digital format.
2. Outsourcing: Shifting non-core tasks to external providers.
3. Internationalization/Globalization: Expanding business activities beyond domestic
boundaries.
Class Activity:
Puzzle 1: BharatTextiles, a small fabric manufacturer in Gujarat, recently began exporting
handloom shawls to Canada and Australia. To manage its employee attendance system, it
partnered with an external HR services company. The management also decided to replace paper
catalogs with an online visual catalogue and introduced a 3D virtual try-on option on their website.

Which Trend? (Digitization /

Activity Description Why?
Outsourcing / Globalization)
began exporting
Expanding business activities
handloom shawls to Globalization
beyond domestic boundaries.
Canada and Australia.
it partnered with an
external HR services Outsourcing tasks to external providers
company.
online visual catalogue Digitization digital format

Puzzle 2: MeethiBite, a traditional Indian sweets brand, hired a Delhi-based firm to handle its online
customer queries and social media responses. The company also launched its mobile app with
digital recipes, videos, and ordering options. Recently, it started receiving bulk orders from clients
in the Middle East and began exporting gift boxes during festival seasons.

Puzzle 3: EduWave, an Indian edtech startup, partnered with a Bangalore-based voice-over

agency to translate and record all their course videos. Meanwhile, they launched their platform in
Southeast Asian countries and started accepting international payments. The team also moved all
its student records from physical registers to cloud-based software accessible to teachers and
parents in real time.

Puzzle 4: GharKaChef, a startup selling home-cooked meals, outsourced its delivery services to a
local logistics partner to focus more on quality. It also added a “video kitchen tour” and “live cooking
tracker” on its app for customer trust. Recently, a Singapore-based investor showed interest and
helped the brand launch a pilot service for NRIs in Singapore.

Puzzle 5: TechSmart, a startup in Pune, signed a contract with a company in the Philippines to
provide backend technical support to its clients. It also redesigned its product manuals into digital
interactive guides with voice support. The firm began receiving orders from clients in the US and
UK and joined global tech exhibitions to attract more investors.
Case Study 1: Aakaash Handicrafts, a Jaipur-based family business dealing in ethnic home décor,
had been serving local customers for three generations through their physical store in the old
market. However, their sales began to drop as footfall reduced due to the popularity of online
platforms. Aarav, the youngest member of the family, proposed launching a digital platform to reach
a wider audience. After months of discussion, the family finally agreed.
Aarav collaborated with a tech firm to build a user-friendly website, integrate an online payment
system, and shoot professional videos of their products to showcase them better. To manage
customer support and delivery logistics, they hired a service provider who specialized in handling
e-commerce backend operations. In the first year, orders started coming from across India.
Eventually, they began receiving inquiries from customers in the USA and Europe, where ethnic
Indian products were in high demand. Encouraged, the team enrolled in an international e-
commerce platform and began shipping abroad.
The company now runs a hybrid model: a physical store and a growing online global presence.
The family is proud but admits the journey required them to let go of some control and trust others
with parts of their operations.
1. Identify and explain any one activity related to digitalization in the above case.
2. Which business activity has been outsourced by Aakaash Handicrafts?
3. Quote one sentence that indicates the firm is entering international markets.
4. Do you think such a transformation would affect the employment structure in the company?
Why or why not?

Case Study 2: Medilife Diagnostics, a regional diagnostic center in Bhubaneswar, was known for
its precise pathology reports and trusted service. But when the pandemic hit, physical visits
dropped drastically. To keep the business afloat, its management decided to rethink how they
operated.
They partnered with a health-tech startup to offer online appointment booking, test report
downloads, and virtual consultations. The startup also helped convert all medical records into a
digital format accessible to patients anytime. Meanwhile, Medilife hired a customer service agency
from Bangalore to manage appointment calls and live chat support.
To meet the increasing demand for specialized tests, Medilife sent its complex samples to labs in
Singapore and Germany for quicker results and access to better technology. The reports were
emailed within days and authenticated digitally. This step helped them attract corporate clients and
medical tourism patients from neighboring countries like Nepal and Bangladesh.
The changes led to increased efficiency and reduced manual errors. Though the staff needed
training and time to adjust, they acknowledged the advantages of the new systems. The company
now plans to collaborate with international experts and investors to expand further.
1. Mention one activity from the case that shows digitization in the diagnostic process.
2. Which task has been outsourced by Medilife Diagnostics?
3. Identify and explain one instance of internationalization/globalization in the case.
4. How did the changing mode of business improve Medilife’s competitiveness?

New Concept:
 e-Business
Definition: e-Business refers to the conduct of business activities, including industry, trade, and
commerce, using computer networks such as the internet
 e-Commerce
Definition: e-Commerce refers to the buying and selling of goods and services over the internet.
It involves online transactions between businesses and consumers (B2C) or between businesses
(B2B).
Differences between e-Business and e-Commerce
 Basis e-Business e-Commerce
Scope It covers all business functions It covers all business functions
carried out electronically, including carried out electronically, including
production, marketing, finance, and production, marketing, finance,
HR. and HR.

Nature of Activities It includes both internal (like Primarily deals with external
inventory management, payroll) activities like sales, marketing,
and external (like customer and customer transactions.
interaction) business processes.

Transactions It involves a broader range of Primarily focuses on B2B and B2C

transactions, including B2B, B2C, transactions.
intra-business (within the
company), and C2C.

Internal Operations It manages internal processes such It does not include internal
as supply chain management, processes, focusing instead on
product development, and financial the buying and selling aspect.
management electronically.

Technology Use It uses intranets, extranets, and It mainly uses the internet for
internal networks in addition to the conducting transactions.
internet.

Objective Its aims to optimize and automate Its aims to streamline online sales
entire business operations. and purchase processes.

Class Work Activities:

Worksheet: Table Activity – E-Commerce vs. E-Business
Instructions: Read each statement carefully. In the appropriate column, put a ✔ (tick mark) to
show whether the statement applies to E-Commerce, E-Business, or Both.
E- E-
No. Statement Both
Commerce Business
1. Selling shoes through an online store
2. Using online software to manage employee payroll
3. Online buying and selling of goods and services
4. Online communication between company departments
5. Using a website to advertise products
6. Accepting payments through UPI or debit card
7. Using email to communicate with suppliers and customers
8. Managing supply chain using cloud-based tools
9. Receiving and processing customer orders online
10. Posting job openings on a company’s website
11. Delivering products bought online to the customer
12. Creating a Facebook page for marketing
13. Uploading digital content to train employees
 E- E-
No. Statement Both
Commerce Business
14. Selling e-books on Amazon
15. Organizing online team meetings using Zoom
16. Creating customer accounts and profiles on a website
17. Sending promotional emails and newsletters
18. Tracking inventory using automated software
19. Allowing customers to return goods bought online
Maintaining internal digital records of the company’s
20.
finances

Scope of e-Business
The scope of e-business is broad and includes various business activities that can be conducted
over electronic networks. These activities cover all functions, such as:
1. Business Functions
 Production: Managing the production process using online systems.
 Finance: Handling financial transactions and data electronically.
 Marketing: Promoting and selling products through digital platforms.
 Personnel Administration: Managing HR functions, such as recruitment and employee
management, electronically.
 Organizing and Controlling: Using technology to organize and control business processes
effectively.

2. Types of Electronic Transactions in E-Business

E-business transactions (and communication) can be categorized based on the parties involved
and the nature of interaction. These transactions include not only buying and selling but also
communication, data sharing, and service delivery through electronic means. The main types are:
1. B2B (Business-to-Business) Commerce
Definition:
Business transactions and communication that take place between two companies.
Key Features:
 Usually involves large orders, long-term relationships, and professional negotiation.
 Both the buyer and the seller are business entities.
Examples:
 A car manufacturer sourcing components from suppliers using online systems.
 A dealer tracking stock and placing orders through digital inventory management tools.
2. B2C (Business-to-Consumer) Commerce
Definition:
Transactions between businesses and individual customers.
Key Features:
 Products or services are sold directly to end consumers.
 The focus is on user experience, ease of transaction, and customer service.
Examples:
 Customers purchasing products on platforms like Flipkart or Amazon.
 Businesses using online surveys to gather customer feedback and preferences.
 3. Intra-B (Intra-Business) Commerce
Definition:
Electronic transactions and interactions within different departments of the same organization.
Key Features:
 Focuses on improving internal communication and coordination.
 Typically done through secure internal systems like intranets.
Examples:
 HR department using internal portals for recruitment and employee training.
 Marketing and production departments sharing customer data to improve product planning.
4. C2B (Consumer-to-Business) Commerce
Definition:
When individual consumers initiate transactions or communication toward a business.
Key Features:
 The consumer plays an active role in offering services, feedback, or content to a business.
 The business responds or compensates based on the consumer’s input.
Examples:
 A customer giving feedback via an online survey or contacting customer service.
 Content creators offering promotional services to brands in return for compensation.
5. C2C (Consumer-to-Consumer) Commerce
Definition:
Transactions between individual consumers, usually through a third-party online platform.
Key Features:
 The platform acts as a facilitator, ensuring safety and smooth transactions.
 Common for second-hand goods, collectibles, or peer-to-peer services.
Examples:
 Individuals selling products on OLX or eBay.
 Secure payment exchanges through platforms like PayPal.
6. Customer Interaction in E-Business: Round-the-Clock Services:
 E-business platforms allow businesses to stay connected with customers 24/7 through
features like live chat, customer service portals, and feedback systems.
Benefit:
 Enhances customer satisfaction and trust through continuous service availability.
Class Activities:
Worksheet: Identify the Type of Electronic Transaction
Instructions:
Read each of the following examples carefully. Write the correct type of electronic transaction in
the blank space provided.

1. A retailer places a bulk order for packaged snacks from an FMCG company through its
supplier portal.
Type: __________
2. A customer buys a pair of shoes from an online fashion website.
Type: __________
3. An employee submits an online leave application to the HR department through the
company’s internal portal.
Type: __________
4. A YouTuber gives feedback to a software company about a bug in its new mobile app.
Type: __________
 5. A seller on OLX lists a second-hand sofa, and another individual buys it directly from them.
Type: __________
6. A logistics company uses a tracking system to coordinate between its warehouse and
delivery team.
Type: __________
7. A small business sources office furniture from an online B2B marketplace like IndiaMART.
Type: __________
8. A tourist books a hotel room using a travel website like MakeMyTrip.
Type: __________
9. An online payment app sends monthly performance reports to the marketing and finance
teams through intranet dashboards.
Type: __________
10. A customer writes a product review on an e-commerce website that the company uses for
improving its offerings.
Type: __________
11. A person sells an old mobile phone to another user via Facebook Marketplace.
Type: __________
12. An IT firm in Bengaluru manages payroll processing for another company located in Delhi
through a web-based tool.
Type: __________
13. A customer participates in an online poll about a new feature on a food delivery app.
Type: __________
14. An automobile manufacturer receives auto parts from different suppliers via an online
vendor management system.
Type: __________
15. The accounts and sales departments of a company share customer data using a
centralized online system.
Type: __________
Answers:
1. B2B
2. B2C
3. Intra-B
4. C2B
5. C2C
6. Intra-B
7. B2B
8. B2C
9. Intra-B
10. C2B
11. C2C
12. B2B
13. C2B
14. B2B
15. Intra-B

Distinctions between e-business and traditional business

Basis e-business Traditional business
Definition and Scope It conducts all business It operates through physical
activities electronically, establishments, engaging customers
 encompassing production, in person without a primary reliance
marketing, finance, and human on digital platforms.
resources

Physical Presence It does not require a physical It requires a physical location where
storefront; operations are customers can visit, necessitating
managed online, allowing for considerations like rent and utilities.
remote management.

Market Reach Offers global accessibility, It typically serves a local or regional

enabling transactions with customer base, with expansion
customers worldwide, limited by physical location and
unrestricted by geographical logistics.
boundaries.

Operating Hours It operates 24/7, providing it functions within set business hours,
continuous access to products which can restrict customer access
or services, enhancing outside of these times.
convenience for customers.

Cost Structure It often has lower overhead It incurs higher operational costs,
costs due to the absence of including expenses for physical
physical infrastructure, space, maintenance, and in-person
potentially reducing expenses staffing.
related to rent and utilities

Customer Interaction It engages with customers It relies on face-to-face interactions,

through digital channels, allowing for personal relationships
offering features like live chat, but limited in scalability compared to
email support, and digital engagement.
personalized online
experiences.

MCQs
1. Which of the following is NOT a feature of e-business?
a) Conducting business over computer networks
b) Interaction only with customers
c) Integration of various business functions
d) Use of the internet for transactions
2. In the context of e-business, B2B refers to:
a) Business to Business
b) Business to Consumer
c) Consumer to Consumer
d) Business to Employee
3. Which of the following is a primary benefit of e-commerce?
a) Increased physical store presence
b) Limited customer access
c) Cost-effective marketing
d) Slower transaction times
4. E-business includes which of the following functions?
a) Only sales transactions
b) Marketing and finance management
 c) Only production management
d) Only customer service interactions
5. Which mode of e-commerce allows consumers to sell products to each other?
a) B2B
b) B2C
c) C2B
d) C2C
6. What is the primary purpose of Business Process Outsourcing (BPO)?
a) To conduct all business processes in-house
b) To delegate specific business functions to external providers
c) To increase the number of employees
d) To eliminate the use of technology
7. What is a significant advantage of digitization in business?
a) Decreased efficiency
b) Enhanced communication
c) Increased paperwork
d) Higher operational costs
8. Intra-B commerce primarily focuses on:
a) External customers
b) Transactions within the same organization
c) Transactions between different businesses
d) Online sales
9. Which of the following statements about e-commerce is true?
a) E-commerce is limited to physical products.
b) E-commerce does not involve online marketing.
c) E-commerce can occur 24/7.
d) E-commerce is solely about purchasing.
10. What does the term 'digitisation' refer to in the context of business?
a) The elimination of paper-based processes
b) The conversion of content into digital formats
c) The increase in physical transactions
d) The reduction of online interactions
Assertion-Reasoning Questions
11. Assertion (A): E-business includes a wide range of activities beyond just buying and
selling.
Reason (R): E-business encompasses various functions such as production, finance, and
marketing.
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.
12. Assertion (A): B2C commerce is limited to online shopping.
Reason (R): B2C includes activities such as marketing, promotion, and customer service.
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.
13. Assertion (A): E-commerce primarily involves transactions conducted over the internet.
Reason (R): E-business includes a broader range of business functions.
a) Both A and R are true, and R is the correct explanation of A.
 b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.
14. Assertion (A): The scope of e-business is limited to external transactions.
Reason (R): E-business also includes internal processes within a firm.
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.
15. Assertion (A): C2C commerce allows consumers to sell goods directly to businesses.
Reason (R): C2C commerce involves transactions between consumers.
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.
Story-Based Case Studies
Case Study 1:
Vikram owns a small bakery and recently decided to start selling his cakes online. He set up a
website that allows customers to place orders directly. With e-commerce, he can now reach
customers beyond his local area, making it easier for people to order customized cakes for special
occasions. His bakery has received positive feedback from customers who appreciate the
convenience and variety available online.
MCQs for Case Study 1:
1. What type of commerce is Vikram engaging in by selling cakes online?
a) B2B
b) B2C
c) C2C
d) C2B
2. What is a primary benefit Vikram gains from e-commerce?
a) Increased local sales
b) Wider customer reach
c) Decreased product variety
d) Higher operational costs
3. What type of feedback is Vikram receiving from his customers?
a) Negative
b) Indifferent
c) Positive
d) Confusing

Case Study 2:
Sita runs a small clothing store and decided to partner with an online marketplace to expand her
sales. By outsourcing her online sales operations, she can focus on her in-store customers while
the platform handles marketing and logistics. This decision has helped her business grow,
reaching more customers without the need for a large investment in technology.
MCQs for Case Study 2:
1. What type of strategy is Sita using by partnering with an online marketplace?
a) In-house marketing
b) Outsourcing
c) B2B transactions
d) E-learning
 2. What is the primary advantage of Sita’s decision?
a) Higher costs
b) Increased focus on in-store customers
c) Limited customer reach
d) Less flexibility
3. What is Sita's main business focus after outsourcing?
a) Online marketing
b) Customer service
c) In-store customers
d) Technology development
Case Study 3:
Rahul is a project manager at a tech company that uses intra-B commerce to manage team
projects efficiently. His team uses a private network to share documents, track progress, and
communicate in real time. This system has significantly improved their productivity, allowing them
to complete projects faster and collaborate more effectively.
MCQs for Case Study 3:
1. What type of commerce is Rahul’s tech company utilizing?
a) B2C
b) C2C
c) Intra-B
d) B2B
2. What is one significant benefit of intra-B commerce for Rahul's team?
a) Slower communication
b) Improved productivity
c) Decreased project quality
d) Limited collaboration
3. How does intra-B commerce facilitate project management?
a) By using public networks
b) By enhancing document sharing and communication
c) By increasing paperwork
d) By reducing team interaction

Case Study 4:
Aisha wants to sell her handmade jewelry and decides to use an online platform. She sets up a
profile where she can showcase her products and interact with potential buyers. Aisha learns that
using customer ratings can help her build trust with new buyers, ensuring a more secure selling
experience.
MCQs for Case Study 4:
1. What type of commerce is Aisha engaging in by selling jewelry online?
a) B2B
b) C2C
c) B2C
d) Intra-B
2. What is Aisha’s strategy for building trust with potential buyers?
a) Offering discounts
b) Providing customer ratings
c) Increasing product prices
d) Reducing online presence
3. What advantage does Aisha gain by using an online platform?
a) Limited customer base
 b) Increased security in transactions
c) Decreased visibility of products
d) Complicated selling process
Answers:
MCQs
1. Which of the following is NOT a feature of e-business?
o Answer: Interaction only with customers. E-business includes interactions with
various stakeholders, including suppliers and partners.
2. In the context of e-business, B2B refers to:
o Answer: Business to Business. This involves transactions between businesses
rather than between businesses and consumers.
3. Which of the following is a primary benefit of e-commerce?
o Answer: Cost-effective marketing. E-commerce allows businesses to reach a wider
audience at lower marketing costs compared to traditional methods.
4. E-business includes which of the following functions?
o Answer: Marketing and finance management. E-business encompasses a range of
functions beyond just sales transactions, including marketing and finance.
5. Which mode of e-commerce allows consumers to sell products to each other?
o Answer: C2C, or Consumer to Consumer. This involves transactions between
consumers, often facilitated by online platforms.
6. What is the primary purpose of Business Process Outsourcing (BPO)?
o Answer: To delegate specific business functions to external providers. BPO allows
companies to focus on their core activities while outsourcing non-core functions.
7. What is a significant advantage of digitisation in business?
o Answer: Enhanced communication. Digitisation streamlines communication and
information sharing within and outside the organization.
8. Intra-B commerce primarily focuses on:
o Answer: Transactions within the same organization. It involves internal processes
that enhance efficiency and collaboration.
9. Which of the following statements about e-commerce is true?
o Answer: E-commerce can occur 24/7. Unlike traditional businesses, e-commerce
allows transactions at any time.
10. What does the term 'digitisation' refer to in the context of business?
o Answer: The conversion of content into digital formats. Digitisation enables
businesses to utilize technology for improved efficiency.
Assertion-Reasoning Questions
11. Assertion (A): E-business includes a wide range of activities beyond just buying and selling.
Reason (R): E-business encompasses various functions such as production, finance, and
marketing.
o Answer: Both A and R are true, and R is the correct explanation of A. E-business
involves various activities, not limited to transactions.
12. Assertion (A): B2C commerce is limited to online shopping.
Reason (R): B2C includes activities such as marketing, promotion, and customer service.
o Answer: A is true, but R is false. B2C encompasses more than just shopping; it
includes marketing and customer interactions.
13. Assertion (A): E-commerce primarily involves transactions conducted over the internet.
Reason (R): E-business includes a broader range of business functions.
o Answer: Both A and R are true, but R is not the correct explanation of A. E-commerce
focuses on internet transactions, while e-business covers more functions.
 14. Assertion (A): The scope of e-business is limited to external transactions.
Reason (R): E-business also includes internal processes within a firm.
o Answer: A is false, but R is true. E-business encompasses both external and internal
transactions.
15. Assertion (A): C2C commerce allows consumers to sell goods directly to businesses.
Reason (R): C2C commerce involves transactions between consumers.
o Answer: A is false, but R is true. C2C commerce is focused on consumer-to-
consumer transactions.
Story-Based Case Studies
Case Study 1:
Vikram owns a small bakery and recently decided to start selling his cakes online. He set up a
website that allows customers to place orders directly. With e-commerce, he can now reach
customers beyond his local area, making it easier for people to order customized cakes for special
occasions. His bakery has received positive feedback from customers who appreciate the
convenience and variety available online.
MCQs for Case Study 1:
1. What type of commerce is Vikram engaging in by selling cakes online?
o Answer: Vikram is engaging in B2C commerce, as he is selling directly to
consumers.
2. What is a primary benefit Vikram gains from e-commerce?
o Answer: A primary benefit Vikram gains from e-commerce is a wider customer reach,
allowing him to serve customers beyond his local area.
3. What type of feedback is Vikram receiving from his customers?
o Answer: Vikram is receiving positive feedback from his customers, who appreciate
the convenience of online ordering and the variety of cakes available.

Case Study 2:
Sita runs a small clothing store and decided to partner with an online marketplace to expand her
sales. By outsourcing her online sales operations, she can focus on her in-store customers while
the platform handles marketing and logistics. This decision has helped her business grow,
reaching more customers without the need for a large investment in technology.
MCQs for Case Study 2:
1. What type of strategy is Sita using by partnering with an online marketplace?
o Answer: Sita is using an outsourcing strategy by partnering with an online
marketplace to manage her online sales.
2. What is the primary advantage of Sita’s decision?
o Answer: The primary advantage of Sita’s decision is an increased focus on in-store
customers while leveraging the marketplace’s resources for online sales.
3. What is Sita's main business focus after outsourcing?
o Answer: Sita's main business focus after outsourcing is to cater to her in-store
customers and enhance their shopping experience.

Case Study 3:
Rahul is a project manager at a tech company that uses intra-B commerce to manage team
projects efficiently. His team uses a private network to share documents, track progress, and
communicate in real time. This system has significantly improved their productivity, allowing them
to complete projects faster and collaborate more effectively.
MCQs for Case Study 3:
1. What type of commerce is Rahul’s tech company utilizing?
 o Answer: Rahul’s tech company is utilizing intra-B commerce, focusing on internal
transactions within the organization.
2. What is one significant benefit of intra-B commerce for Rahul's team?
o Answer: One significant benefit of intra-B commerce for Rahul's team is improved
productivity, as it facilitates faster communication and collaboration.
3. How does intra-B commerce facilitate project management?
o Answer: Intra-B commerce facilitates project management by enhancing document
sharing and real-time communication among team members.

Case Study 4:
Aisha wants to sell her handmade jewelry and decides to use an online platform. She sets up a
profile where she can showcase her products and interact with potential buyers. Aisha learns that
using customer ratings can help her build trust with new buyers, ensuring a more secure selling
experience.
MCQs for Case Study 4:
1. What type of commerce is Aisha engaging in by selling jewelry online?
o Answer: Aisha is engaging in C2C commerce by selling her handmade jewelry to
consumers through an online platform.
2. What is Aisha’s strategy for building trust with potential buyers?
o Answer: Aisha’s strategy for building trust with potential buyers is to utilize customer
ratings and reviews, which can enhance her credibility.
3. What advantage does Aisha gain by using an online platform?
o Answer: Aisha gains the advantage of increased visibility for her products and
access to a larger customer base through the online platform.

Benefits of e-Business
1. Ease of Formation and Lower Investment: Setting up an e-business is simpler and
requires less capital than traditional businesses. Even small businesses can thrive with
minimal investment. For example, an online restaurant can partner with other eateries to
deliver food without needing a physical location.
2. Convenience: E-business operates 24/7, allowing customers to shop anytime and
employees to work from anywhere. For example, shoppers can browse and make
purchases even after midnight.
3. Speed: Online transactions happen instantly, especially for digital products like software or
e-books, significantly reducing the time between order and delivery.
4. Global Reach: E-business allows companies to access global markets and customers to
purchase products from anywhere in the world. Amazon, for example, enables global
shopping at the click of a button.
5. Paperless Operations: Many businesses and government bodies, like Maruti Udyog, now
operate digitally, reducing paperwork and speeding up processes such as online filing of
reports.
Limitations of e-Business
1. Low Personal Touch: E-business lacks the personal interaction found in physical stores,
which can be a drawback for products like clothing that require physical examination.
2. Delayed Delivery: While orders are placed instantly, physical products take time to deliver,
which can frustrate customers expecting immediate results.
3. Technology Requirements: E-business requires digital literacy, which creates a gap
between those familiar with technology and those who are not, often referred to as the
"digital divide."
 4. Security Risks: Online transactions pose risks like identity theft or hacking. For example,
leaking credit card details online can lead to fraud.
5. Resistance to Change: Employees may resist transitioning to e-business due to discomfort
with new technology, fearing job displacement or insecurity.
6. Ethical Concerns: Companies may monitor employees' online activities, raising ethical
questions about privacy.

Multiple Choice Questions (MCQs)

1. Which of the following is a benefit of e-business?
o A) High capital investment
o B) Ease of formation
o C) Limited operational hours
o D) Personal interaction with customers
2. E-business allows companies to:
o A) Operate only in local markets
o B) Access global markets
o C) Require a physical store
o D) Conduct transactions only during business hours
3. What is a limitation of e-business?
o A) Instant delivery of products
o B) High personal interaction
o C) Security risks during transactions
o D) Convenience of shopping
4. Which factor contributes to the “digital divide” in e-business?
o A) Ease of formation
o B) Technology requirements
o C) Global reach
o D) Paperless operations
Assertion-Reasoning Questions
5. Assertion (A): E-business operations are available 24/7.
Reason (R): This allows customers to shop at their convenience and employees to work
from anywhere.
6. Assertion (A): E-business can lead to security risks.
Reason (R): Online transactions are often susceptible to hacking and identity theft.
Story-Based Case Study
Ravi decided to start an e-business selling handmade crafts online. He enjoyed the
convenience of working from home and reaching customers worldwide. However, he faced
challenges like delayed delivery times and the need to ensure secure transactions to protect his
customers’ information. As his business grew, Ravi realized the importance of building trust with
his customers through effective communication and transparent policies.
MCQs for Case Study:
1. What type of business did Ravi start?
o A) A physical store
o B) An e-business selling crafts
o C) A service-based business
o D) A restaurant
2. What challenge did Ravi face with his e-business?
o A) Instant delivery times
o B) Difficulty in communication
 o C) Delayed delivery of products
o D) High operational costs
3. How did Ravi aim to build trust with his customers?
o A) By offering discounts
o B) Through effective communication and transparent policies
o C) By reducing prices
o D) By limiting his product range

Answers
1. B) Ease of formation
2. B) Access global markets
3. C) Security risks during transactions
4. B) Technology requirements
5. Both A and R are true, and R is the correct explanation of A.
6. Both A and R are true, and R is the correct explanation of A.
Case Study:
1. What type of business did Ravi start?
Answer: B) An e-business selling crafts
2. What challenge did Ravi face with his e-business?
Answer: C) Delayed delivery of products
3. How did Ravi aim to build trust with his customers?
Answer: B) Through effective communication and transparent policies