Overview
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
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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- out of date information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.
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2.2
Explain the operational risks to a business organisation operating online.
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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.
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3.2
Describe the challenges of having an online business presence.
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3.3
Explain how the success of an online business presence can be measured.
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3.4
Outline the impact of online businesses on customer behaviour.