Commerce

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 Sections

involved in the electronic transactions

are from within a given business firm,

hence, the name intra-B commerce. As

Seen earlier too, one critical difference

between e-commerce and e-business

is that, e-commerce comprises a

business firm’s interaction with its

suppliers, and distributors/other

business firms (hence, the name B2B)

and customers (B2C) over the internet.

While e-business is a much wider term

and also includes the use of intranet

for managing interactions and

dealings among various departments

and persons within a firm. It is largely

due to use of intra-B commerce that

today it has become possible for

the firms to go in for flexible

manufacturing. Use of computer

networks makes it possible for the

marketing department to interact constantly with the production

department and get the customised

products made as per the

requirements of the individual

customer. In a similar vein, closer

computer-based interactions among

the other departments makes it

possible for the firm to reap

advantages of efficient inventory

and cash management, greater

utilisation of plant and machinery,

effective handling of customers’

orders, and effective human resource management.

According to the name

, B2C (business-to-customers)

transactions have business firms at

one end and its customers on the other

end. Although, what comes to one’s

mind instantaneously is online

shopping, it must be appreciated that

‘selling’ is the outcome of the marketing

process. And, marketing begins well

before a product is offered for sale and

continues even after the product hasbeen sold. B2C commerce, therefore,

entails a wide gamut of marketing

activities such as identifying activities,

promotion and sometimes even delivery

of products (e.g., music or films) that

are carried out online. e-commerce

permits conduct of these activities at a

Comparatively lower cost but high speed. For

example, ATM speeds up withdrawal of money.

Here, both the

Sections involved in e-commerce

transactions are business firms, and,

hence the name B2B, i.e., business-to-

business. Creation of utilities or

delivering value requires a business to

Deal with a number of other business

firms which may be suppliers or vendors

of diverse inputs; or else they may be

a part of the channel through which

a firm distributes its products to

the consumers. For example, the

manufacture of an automobile requires

assembly of a large number of

components which in turn are being

manufactured elsewhere — within the

vicinity of the automobile factory or even

overseas. To reduce dependence on a

single supplier, the automobile factory

has to cultivate more than one vendor

for each of the components. A network

of computers is used for placing orders,

monitoring production and delivery of

components, and making payments.

Likewise, a firm may strengthen and

improve its distribution system by

exercising a real time (as it happens)

control over its stock-in-transit as well

as that with different middlemen in

different locations. For example, each

consignment of goods from a warehouse

and the stock-at-hand can be monitored

and replenishments and reinforcements

can be set in motion as and

when needed. Or else, a customer’s

specifications may be routed through

the dealers to the factory and fed

into the manufacturing system for

customised production. Use of

e-commerce expedites the movement of

the information and documents; and of

late, money transfers as well.

Historically, the term e-commerce

originally meant facilitation of B2B

transactions... (More)

Life is full of uncertainties. The chances

of occurrence of an event causing losses

are quite uncertain. There are risks of death and disability for human life; fire

and burglary risk for property; perils of

the sea for shipment of goods and, so

on. If any of these takes place, the

individuals and/or, organisations may

suffer a great loss, sometimes beyond

their capacities to bear the same. It

is to minimise the impact of such

uncertainties that there is a need for

insurance. Investment in factory

buildings or heavy equipments or other

assets is not possible unless there is

arrangement for covering the risks, with

the help of insurance. Keeping this in

mind, people facing common risks come

together and make small contributions

to a common fund, which helps to

spread the loss caused to an individual

by a particular risk over a number of

persons who are exposed to it.

Insurance is thus a device by which

the loss likely to be caused by an

uncertain event is spread over a

number of persons who are exposed to

it and who prepare to insure themselves

against such an event. It is a contract

or agreement under which one party

agrees in return for a consideration to

pay an agreed amount of money to

another party to make a loss, damage

or injury to something of value in

which the insured has a pecuniary

interest as a result of some uncertain

event. The agreement/contract is put

in writing and is... (More)