Emerging Trends In Business
Business exists in a dynamic environment. New entrepreneurs with advanced technology have lead to rapid changes in business environment and has created new trends in business that helps a business entity to achieve its goal more efficiently and economically.
In this kind of business model a distributor network is needed to build the business. It is also known as Multilevel Marketing in which payouts occur at more than one level.
(1) Network Marketing is a mode of direct marketing by the manufacturer.
(2) In simple words, it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods.
(3) Thus, under network marketing the product reaches the customers from the manufacturers via distributors.
(4) No formal marketing infrastructure is required.
(5) The distributor's compensation includes a percentage of sales of those engaged by the distributors as well as earnings on direct sales to customers.
Franchise can be defined as the special right given by a manufacturer or a parent organization to another individual or firm to sell to the former’s product or service.
In other words where a firm allows another firm in a foreign market to use its technical know-how and trademark, it is known as franchising.
The individual or firm which grants right is called FRANCHISER.
The individual or firm to whom the right is granted is called FRANCHISEE.
The agreement between franchiser and franchisee is called Franchise agreement.
The word ‘franchise’ is of Anglo-French derivation from the word franc which means ‘free’.
BUSINESS PROCESS OUTSOURCING (BPO )
In recent past Outsourcing has become very popular and important for an organization profitability and survival. Outsourcing means “acquiring a product or service from someone else in place of manufacturing it”. Now a days is used by every organization in one way or the other. Non Core functions of the organizations are commonly outsorced. Outsourcing is an IT enabled services and is also known as Business process outsourcing(BPO), Knowledge process outsourcing (KPO) ,and legal process outsourcing (LPO).
E commerce is kind of a business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet.
CLASSIFICATION OF E - COMMERCE
Based upon the entities involved in transaction, electronic commerce has been classified into following categories:
• Business-to-Business (B2B)
• Business-to-Consumer (B2C)
• Consumer-to-Business (C2B)
• Consumer-to-Consumer (C2C)
M commerce or mobile commerce refers to the buying and selling of goods and services through mobile phones and personal digital assistants (PDAs).
These online MCQ Mock tests and MCQ questions includes all main concepts of the chapter in CS foundation Business Environment and Entrepreneurship