Documente Academic
Documente Profesional
Documente Cultură
change:
e-commerce
BUSS4 Section A
2016
www.time2resources.co.uk
Focus
Introduction
The
Read and discuss these comments before starting your research in detail.
What does this mean to you?
Which industries?
Rank
Wholesale
Retail
Transport &
storage
Utilities
Construction
Accommodation
& food
Information &
communication
Manufacturing
What
E-commerce importance of
B2B as well as B2C
Website
What
sales v EDI
is EDI?
2013
Trends
2013
AQA Research
Task 2016
COMPETITIVE RIVALRY
Degree of competition
Dominant business
Industry size and trends
Differentiation
THREAT OF SUBSTITUTES
New product development
Research and
development
PESTEL factors
BUYING POWER OF
CUSTOMERS
Bargaining power
Degree of choice
Price sensitivity
Availability of
information
SELLING POWER OF
SUPPLIERS
NEW COMPETITORS
COMPETITIVE RIVALRY
THREAT OF SUBSTITUTES
BUYING POWER OF
CUSTOMERS
Research
activities
The impact of e-commerce on the
competitive environment within industries
Research
activity 1
The music industry
Research activity 2
The supermarket industry
Assessment Activity
Practice
question 1
Level
Descriptor
Mark
L5
Application/analysis
both good
26-23
L4
Application/analysis
22-18
L3
Application/analysis
17-13
L2
Application/analysis
L1
Limited response
Level
Descriptor
E3
E2
E1
knowledge only
12-8
7-1
Mark
14-11
10-6
5-1
Key terms
Competitive
environment
This looks at the degree of competition in the market and the
buying and selling power of customers and suppliers within
that market
Porters Five Forces
A framework that helps firms to analyse their position, and
therefore attractiveness, in that market
Each of the Five Forces will affect the profitability of firms in
the industry
Information asymmetries
When some parties in a transaction have more information
regarding the product than others
This leads to market failure
Without having full information about a product it is difficult
for consumers and producers to make decisions regarding
price, quality and other relevant factors when buying and
selling
areas
Points to consider include:
o
o
Significance of impact
Finance
o Online payments
o Cash flow
o Profitability
Human resources
o Skills
o Changing roles
o Job losses or gains
Operations management
o Logistics e.g. delivery and returns
o Supply chain
o Mass customisation
Marketing
o Digital marketing
o Pricing strategies
o Marketing mix
Customer service
Research
activities
The impact of e-commerce on businesses
and their functional areas
Research
activity 1
The media industry
Research activity 2
Low cost v highly differentiated
Analysed in relation to impact on functional
areas
Assessment Activity
Practice
question 2
Level
Descriptor
Mark
L5
Application/analysis
both good
26-23
L4
Application/analysis
22-18
L3
Application/analysis
17-13
L2
Application/analysis
L1
Limited response
Level
Descriptor
E3
E2
E1
knowledge only
12-8
7-1
Mark
14-11
10-6
5-1
Key terms
Mass customisation
Where firms employ flexibility, providing tailor made or customer
specific products, into a mass production line
A form of producing to order that matches supply to demand
It offers both cost efficiency and customer satisfaction through products
designed for the individual but produced by larger-scale methods
Multi-channel distribution
Where firms distribute their products through a range of routes so that
they can be bought by their customers in a number of ways
A good example of a market that effectively employs multi-channel
distribution is supermarkets who offer the ability to buy in store, click
and collect or buy online
With technological advances customers are expecting ease of access
and multi-channel distribution more often
Businesses are having to respond to this demand and offer more flexible
shopping which in turn is affecting the nature of shopping and physical
stores
Omni-channel distribution
Providing customers with a fully integrated shopping experience through
the seamless interaction of multiple channels
Customers
Employees
Shareholders
Government
Community
Suppliers
Financial institutions
Summary grid
In pairs: draw a copy of the table below on A3 paper. Complete
with theoretical points and where possible supporting evidence.
Stakeholder
Positive
impact
Negative
impact
Relative
weighting
i.e. +ve v. -ve
Research activities
Key
B2B
B2C
Business objectives
Nature of business
Stakeholder objectives
Assessment Activity
Practice
question 3
Level
Descriptor
Mark
L5
Application/analysis
both good
26-23
L4
Application/analysis
22-18
L3
Application/analysis
17-13
L2
Application/analysis
L1
Limited response
Level
Descriptor
E3
E2
E1
knowledge only
12-8
7-1
Mark
14-11
10-6
5-1
Key terms
Stakeholders
Anyone with an interest in the actions of a business
Different stakeholders can put pressure on businesses
The degree of pressure depends on the relative power of
stakeholder groups
Stakeholder mapping
This is a tool to help in managing stakeholders effectively
Levels of interest and power are plotted in a matrix
Low levels of interest and power = minimal effort
High levels of interest and power = key players
High levels of interest and low levels of power = keep
informed
Low levels of interest and high levels of power = keep
satisfied
Stakeholder conflict
Stakeholders have different objectives and therefore when a firm
makes a decision e.g. to move to e-commerce there may be
disagreements between some stakeholders
In pairs draw out the table below on A3 paper. Complete the grid writing
theoretical points in one colour and supporting evidence in a second colour.
You may wish to refer back to your research notes so far.
After you have completed your research for this bullet point add to your
theoretical points and evidence points.
Opportunities
Posed by ecommerce to
businesses
Posed to ecommerce
businesses
Threats
Research activities
activity 1
The fashion industry
Research activity 2
Social media
All UK homes and businesses will
have access to "fast broadband" by
2020, David Cameron has pledged.
How does this create opportunities
and threats to businesses in the
FUTURE?
Assessment Activity
Practice
question 4
Level
Descriptor
Mark
L5
Application/analysis
both good
26-23
L4
Application/analysis
22-18
L3
Application/analysis
17-13
L2
Application/analysis
L1
Limited response
Level
Descriptor
E3
E2
E1
knowledge only
12-8
7-1
Mark
14-11
10-6
5-1
Key terms
Opportunities
Threats
Cybercrime
Any criminal act that is carried out with the use of the internet
or a network
Recap:
discuss in relation to BPs 1 4
discuss in relation to trends
Research activities
activity 1
The fashion industry
Research activity 2
Physical v digital
What are the factors influencing if, why and how Poundland
have responded to the growth in e-commerce?
Assessment Activity
Practice
question 5
Level
Descriptor
Mark
L5
Application/analysis
both good
26-23
L4
Application/analysis
22-18
L3
Application/analysis
17-13
L2
Application/analysis
L1
Limited response
Level
Descriptor
E3
E2
E1
knowledge only
12-8
7-1
Mark
14-11
10-6
5-1
of performance
Financial
Marketing
Reputation
HR
Ethical and environmental
Against objectives
National
and international
Within e-commerce
Low
Research activities
Research
activity 1
activity 2
Assessment Activity
Practice
question 6
Level
Descriptor
Mark
L5
Application/analysis
both good
26-23
L4
Application/analysis
22-18
L3
Application/analysis
17-13
L2
Application/analysis
L1
Limited response
Level
Descriptor
E3
E2
E1
knowledge only
12-8
7-1
Mark
14-11
10-6
5-1
Paragraph structure
Paragraph structure
Assessment Activity
Practice
question
Level
Descriptor
Mark
L5
Application/analysis
both good
26-23
L4
Application/analysis
22-18
L3
Application/analysis
17-13
L2
Application/analysis
12-8
L1
Limited response
Level
Descriptor
Mark
E3
14-11
E2
10-6
E1
5-1
knowledge only
7-1