Understanding Online Business Activities

Overview

Framework:
RQF
Level:
Level 2
Unit No:
H/505/2482
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 disadvantages of doing so.

For the full unit details, please download the latest version of the qualification specification. This is available for download on the relevant qualifications page.

Unit Learning Outcomes

To view the assessment criteria and any additional content, please expand the relevant learning outcome below.

1 — Know about online business activities.

Learning Outcome 1: Indicative Content  

Examples of online business may include:

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

Assessment Criteria

  • 1.1
    Describe how different business organisations operate online.
2 — Understand issues related to online business.

Learning Outcome 2: Indicative Content  

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  • out of date information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.

Learning Outcome 3: Indicative Content  

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

Disadvantages/challenges of an on-line presence may include:

  • information needed in different languages
  • speedy response required to customers
  • hackers/viruses
  • technical skills needed
  • need to keep up to date

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 society may include:


  • isolation
  • job losses in areas where on-line business is successful eg food shopping online in rural areas
  • breakdown of communities
  • effects on work-life balance 

Assessment Criteria

  • 3.1
    Describe the benefits of marketing a product or service online
  • 3.2
    Describe any disadvantages of 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 society in general.