Overview

Framework:
RQF
Level:
Level 2
Unit No:
K/618/3438
Credits:
4
Guided learning hours:
32 hours

Assessment Guidance

Portfolio of evidence

Aim

The aim of this unit is to help learners understand the benefits of conducting business on-line and to consider the advantages and challenges of doing so.

Unit Learning Outcomes

1

Know about online business activities.

Examples of online business may include:

  • online transactions
  • interactive customisation
  • marketing products and services through passive brochure ware
  • complement other services offered by business

Assessment Criteria

  • 1.1

    Describe how different business organisations operate online.


2

Understand issues related to online business.

Set up issues may include:

  • sufficient financial support
  • knowing the market
  • access to appropriate resources and equipment
  • domain names
  • technical skills

Examples of operational risk include:

  • ensuring payment security
  • viruses
  • out of date information
  • failure of hardware and software

Examples of the basic principles of legislation, directives and regulations may include;

  • ensuring security of customer personal information
  • maintain financial security
  • monitor inappropriate use of software

Assessment Criteria

  • 2.1

    Explain the issues related to setting up online businesses.

  • 2.2

    Explain the operational risks to a business organisation operating online.

  • 2.3

    Outline the basic principles of legislation, directives and regulations related to online business.


3

Know the impact of an online business presence.

Market benefits may include:

  • way to gather information
  • respond quickly to customer requests
  • national and international markets
  • able to access new markets more easily
  • costs

Advantages of an on-line presence may include:

  • national and international markets eg available 24 hours a day, offer information in different languages
  • respond quickly to customer interest
  • monitor competition

Challenges of an on-line presence may include:

  • information may be needed in different languages
  • speedy response required to customers
  • hackers/viruses
  • technical skills needed
  • need to keep up to date
  • need to be able to fulfill delivery requirements

Success of on-line businesses may be measured through:

  • sales figures
  • number of 'hits' on the website
  • follow-up business as a result of 'hits'

Impact of online business on customer behaviour may include:

  • Customers who are well informed before they buy, having researched the options online
  • Customers being price-savvy
  • Customers expecting fast delivery (immediate gratification)
  • Customers expecting on-demand customer service
  • Customers buying linked products and services due to online recommendations
  • Customers shopping online rather than in local shops

Assessment Criteria

  • 3.1

    Describe the benefits of selling and marketing a product or service online.

  • 3.2

    Describe the challenges of having an online business presence.

  • 3.3

    Explain how the success of an online business presence can be measured.

  • 3.4

    Outline the impact of online businesses on customer behaviour.