E-Business Adaptation and Financial Performance of Merchandising Business in General Santos City

In partial fulfillment of the Requirements of the course Management 324

By: Jamela B. Apurada Tits Merl S. Mandalo Darlene May M. Sunico

Chapter 1 The Problem and its Setting Introduction We are in the midst of a period of economic uncertainty, at the center of this uncertainty is the role of technology in reshaping how individuals live, learn, work and play. The Internet provides one of the most effective marketing tools a company can use to promote brand, service or product. Digital technology definitely has changed the economy. Through the wide range of Internet users, the technology has reached and migrate customers to online service through online service through online service (Caffey, 2009). Organizations have realized the potential of the Internet and what it can offer to individual consumers and as a result, e-business sites has flourished , appearing a wide range of services and products now a days. With the availability of Internet, one can shop from the comfort and convenience of ones own home, at any time during the day or night without having to worry about store opening times. Recruiting internet users to try online shopping. Consumer may also be able to benefit from the greater efficiency that e-business can bring about. Traditional companies must decide how best to live and compete in a world where location is less important and the consumer is used to 24 hour

services (Hanson, 2000). Making e-business an attractive alternative to be in the level of competitiveness among other businesses. Across the globe, industries and firms have adapted e-business initiative to better manage their business processes with the environment. Information and technology and e-business applications provide many benefits across a wide range of intra and inter-firm business processes and transactions. The adaptation of a technology can be viewed as an innovation for a firm, where that technology represents something that is new to the adapting organization (Damanpour, 1991).

The opportunities provided in the adaptation of e-business are endless, giving the businessmen the ability to communicate with their consumer and provide them the products and services needed, This results to an improved financial performance including the small business. While Internet commerce provides the small and medium enterprise with opportunities to participate in new supply chains and market, they may compete and conflict with established channels and established market structures. The Internet is a global network, and putting your business on the Internet immediately opens up multiple gateways and markets for your products and services (Jackson, 2009) The online environment changes faster than the offline environment, resulting difficulty for the company to cope and create strategy to stay on course.

Allow people to start businesses cheaper, quicker and also allow access to customers across the globe. With all these benefits that e-businesses possess, there are some disadvantages which are worth taking into consideration. In many people's minds, purchasing products over the Internet is still not as safe as purchasing products in stores. Since people cannot see the person on the other end of the computer, they might have issues purchasing products depending upon your product and sector. Lacking consumer's trust can significantly impact your sales and overall success. However, at present, there is a large number of documented benefits from e-business. Probably the biggest advantage of conducting business online is that the firm and its products have a worldwide presence. E-business has greatly contributed to improvement in customer service. There are many websites that greet the customer with a pop-up chat window. A readily available customer service makes it easier for the customer to know about the product and the service well in advance. Above all, payments can be made online and the product is transported to the customer without causing any botheration to them. As stated by Alfred North Whitehead, The art of progress is to preserve order amid change and to preserve change amid order. Adaptation to changes in response to the worlds urgent want may be crucial but the benefits to be acquired could be worth the try.

Statement of the problem The general purpose of this study was to determine the E Business Adaption and Financial Performance of Merchandising Business in General Santos City. Specifically, the study answered the following questions: 1. Profile 1.1 Age 1.2 Gender 1.3 marital status 2. What is the performance level of E Business Adaption in General Santos City that conducts business considering the following areas: 2.1 Profitability 2.2 Customer satisfaction 3. What is the extent of E Business Adaption in General Santos City in terms of: 3.1 Innovativeness 3.2 Pro-activeness

3.3 Risk taking 4. What is the financial performance in the areas of: 4.1 Online competence 4.2 Outline competence 5. Is there any significant relationship between E Business adaption to financial performance?

Importance of the study The result of the study will be beneficial to the following: To the businessman this study will provide management techniques and tactics to consider in the operations in future merchandising. To the future researcher who puts an effort in doing this study, which serves as the source of data and information for future related researchers To the local government, the outcome of this study would serve as a parameter to establish and provide a baseline data on the effect of E business and its impact to the growth of entrepreneurship in General Santos City. To the fellow consumers it can help them to assess their performance by examining their attitude towards online shopping. It can also help them to

evaluate themselves as to how they buy a product and by knowing such they can be able to know their needs and wants To the community this study will provide better management in merchandising that could improve the style status in shopping.

Scope and Limitations This study examines the issues related to e business adaption and financial performance of merchandising business. It is intended to provide a comprehensive approach to increase the understanding and knowledge in this field when it talks about e business. The researchers study focuses on the adaption of e business; its relationship to the financial performance of the businessman. The scope of this study will include items knowing the following questions of the research: the study will determine the profile of the producers or dealers in terms of their age, gender, marital status, and monthly income. The researchers also wanted to know the effect of E business adaption to the other ordinary business sectors of the society also the researchers would like to know the financial performance of adaption of e business merchandising here in General Santos City.

Definition of terms

The following enumerated are the definitions of the terms that are used in the research study: Attitude- it refers to a hypothetical construct that represents an individuals degree of like or dislike, satisfied or not for something.

Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity.

E Business- may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups any and individuals and can be seen as one of the essential activities of

business.

Money is a token or item which acts as medium of exchange that has both legal and social acceptance with regards to making payment for buying receiving services as a payment for services rendered as loans.

commodities or

well as repayment of

Profit- it is the return received on a business undertaking after all operating expenses have been met. It is the net excess, gain and the benefit of a

certain business. Cost- An amount paid or required in payment for a purchase, obtainable by a specific price in acquiring goods and services.

Expense- Something spent to attain a goal or accomplish a purpose Charges incurred by an organization which enables to operate the business and to and objectives.

meet the goals

Income- The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as

profit from financial investments Productivity- it refers to the quality of being productive. The rate at which goods or services are produced effectively and efficiency especially output per unit

of the goods.