Advantages and Disadvantages of Internet in Business

Advantages and Disadvantages of Internet in Business 50 years ago people started using the Internet in the world. With the development of internet, there arisen many accessories by the internet. The Taobao website is one of the commonly used websites in China, Which plays a leading role in Chinese e-commerce industry. People buy products online through Taobao. The Taobao Company made significant profits in recent years. In this report, it is going to display the advantages of using the Internet in Taobaos business. in the first part. In this part, the report mention about the Taobao GDP contribution, new management mode build up and job opportunities provided. In the second part, the report illustrates that the disadvantage of using the Internet in Taobaos business, in this part of view, the report points out the time-wasting, risk in internet shopping and negative impacts of business efficiency. This essay aims to analyze the advantages and the disadvantages of using the internet in Taobaos business. The advantages of using the internet in Taobaos business The first advantage is the GDP contribution by Taobao internet business. According to the online auction statistic from Chinese Network Information Center (CNNIC) in 2006, there were totally 12.27 million internet users in Beijing, Shanghai and Guangzhou which are the top three cities in China. The data which included 3.3 million people who experienced the internet online transactions. It shows that there are huge internet-shopper populations in China, especially for the economic-booming cities. Taobao plays a leading role in e-commerce industry and gain plenty of loyalty customers, most of willing to introduce Taobao to their friends who attempt to go shopping in the internet. Under the large user volume, Taobao gives the reason why it can create GDP increasing. According to the data from 2008 China Online Shopping Report, Taobao occupied 67% of Chinese C2C market in 2005. Furthermore, in 2007, it owned 70.4% of online customers. Taobao could have more than 10 million RMB businesses only in one month. Taobao could bring more than 1 billion RMB to Chinese GDP. As the income, expenditure and output influence the GDP increase, thus, with Taobao development, more GDP increase could be bring. Nowadays, Taobao became an essential part of Chinese GDP increase. Taobao started Chinese internet shopping business model. Hoskins (2002) points out that the internet is absolutely cheaper than other traditional media. The internet market can cover the whole world customer. The internet business may generally replace the traditional businesses. Because Taobao belongs to e-commerce, the communication of the organization is not as same as those companies who operate in a specific space. In order to make communication sufficiently under business operation, Taobao is forced on the three main areas of management. First, Taobao create an online communication tool which is called Aliwangwang for Taobaos buyers and sellers. According to Trites (2008), Aliwangwang, which is ranked as the most satisfied service of Taobao, because the third party is unnecessary for the communications between sellers and buyers? Second, Taobao designed a new feedback system. Li el at. (2007) display that the sellers will give the feedbacks within a period of 14 days, the sellers reputation will be influenced by buyers feedbacks. If a seller got 10% dissatisfied feedback, the system will shut down the booth in two months. (Source: Research on Chinese C2C E-Business Institutional Trust Mechanism: Case Study on Taobao and Ebay.cn, 2007) In the figure 1 which displays above, it is clearly shows that the feedback mechanism in Taobao. All sellers in Taobao have to be evaluated by this feedback data, if any sellers more than 30% negative total negative feedback data, it means they could lost the chance to do business in Taobao. Third, the design of Taobaos website is attractive, the fashionable website design style always catch young peoples eyes, even a part of elder customers are willing to suffer Taobao because the website design style. Taobao divided products into different categories, such as men, women, baby, and electronic products. After click the guild link, the customer can find more details for the selling goods. It is easily and efficiently to find the products what they want. According to China Economic Analysis (2002), China has 7% unemployment rate almost reached the national unemployment rate warming level. Taobao provided job opportunities to the unemployment population. According to Li el at (2009), Taobao provided more than 600 thousands job opportunities. Among 570 thousand people enjoyed the employment chances provided by Taobao. Many sellers in Taobao traded their business as their careers and many of them had better lives depends on Taobao business. Under the stiff competition, there are a large of unemployment people with business vision but cannot find a job in top business companies. They use Taobao to fulfill their dream, some of them have their own clothes manufacturing factory after they started business in Taobao. For example, in 2009, the unemployment in Jiangsu Province located in the south of China has serious unemployment rate which shows 3.09 %. The data from the local government shows that Taobao offered 5.7 million job opportunitie s directly and more than 10 million job opportunities indirectly. Such as the development of Delivery Company, the needs of delivery employee must be increase.(Pan, 2001) The disadvantages of using the internet in Taobaos business Young people spend too much money on Taobao internet shopping. Because the selling prices in Taobao are cheaper than in the other places. According to Pan (2001), pricing has a significant influence for selling goods but with negative coefficient and absolute value. Because buyers cannot identify the goods visually, the high price goods are harder to sell. Beside, Majority of young people cannot afford the high price products which are sold in other shops. For this reason, they prefer to shop at Taobao. Moreover; many sellers on Taobao, who work as part-time, spend too much time on their business. When they concentrate on their Taobao business, their assignments form the company maybe delays. It is difficult to avoid the risks for the seller and buyer on Taobao. Kiang el at. (2009) discovers that the buyers have to accept the high risks for purchasing online. For this reason, this leads to a significant obstacle in internet commercial business. Credit card fraud problems, is caused by people who make business on the internet, are continuously increasing. Only after information flow, capital flow and logistics finished backflow, the business deal could be regarded as a completed transaction (Zhang, 2008). For the sellers risk, they have to responsible for some missing goods, even though the delivery companies compensate 50% of goods price. For customers risk, it is hard to post customers some electronic devices. Meanwhile, this kind of products is easy to be broken down. If the customers discovered the damage of the products, after they receive broken goods, they could not return the goods to the seller. The internet shopping makes the efficiency of Taobao decrease. According to Ray (2002), the organizational effectiveness has a significant influence on recruiting talented people and company development. According to Worthys (1962) organizational structure theory, there are two organization structural performances which are the flat organization structure and the tall organizational structure. Whatever the organization belongs to, the communication is always the important part of organizational development. Taobaos employees are separated in the whole of the world. The communication between employee and superior is difficult that the other companies. Even though when some problems arise, the employees can use the internet to communicate with Taobao headquarters. Because of the long distant, plenty problems cannot be solved immediately. Taobao have no too much hierarchical management level, but personally, it belongs to tall organization structure because the communication hard to tra nsmit to the top manager as fast as possible. For this reason, the organizational effectiveness could be influenced. The talented people could be affected by companys performance. Taobao could loss the technical support from those talent people. Conclusion This essay analyzes the advantages and the disadvantages of using the internet in business. The essay uses Taobao e-commerce website as an example. Based on the data from eight resources, the essay divides the whole article into two parts, the advantages of using internet in business and disadvantage of using internet in business. To analysis the reason why Taobao could rapidly increase in resent year and gain more market share. For positive influences, the first the report shows that Taobao is devoted to increase the Chinese GDP under large internet user number, and then the report analyze the new management mode running and management in Taobao. The last, decrease the unemployment rate in China be point out in the essay and how Taobao plays a key role in this social problems. In negative aspect, many people spend too much time and money on online shopping, because the young people do not how to balance their finance. Besides, internet business brings more risks between sellers and buyers, the report introduce the risk could arise in which aspect. Furthermore, internet business could influence the effectiveness of Taobao, the report analysis the reasons and explain the relationship between the talent people and organization efficiency.

Business Ethics and Corporate Social Responsibilty Essay

Business ethics and corporate social responsibility Introduction Anglo American is one of the world’s leading mining companies. It is a UK public limited company and operates on a global scale. Anglo American operates mainly in the primary sector of the world economy. This, as the name suggests, covers industries involved in the first stage of economic activity, such as mining and agriculture. Anglo American operates throughout the world. It has extensive operations in Africa, where 76% of its employees live. It is also a major employer in Europe. Its Tarmac aggregates and construction products business employs nearly 7,000 people in the UK. As a primary producer, Anglo American plays an important role in the world economy. Anglo American produces five main types of raw material.†¢ Business ethics †¢ Corporate social responsibility †¢ Effects of ethical behaviour †¢ Benefits of ethical behaviour Public limited company: a company whose shares are traded on the London Stock Exchange, denoted by the initials plc. Primary sector: the first stage in producing goods. Pressure group: an organisation formed by people with a common interest who get together to further that interest, for example, nongovernmental organisations. Ethics: moral principles or rules of conduct and behaviour accepted by members of society. Corporate social responsibility: the responsibility of an organisation to wider society, to a range of stakeholders including the community and society at large. Mining operations can have a big impact on the environment and on the societies where they work. Since most mineral resources belong to nation states, mining companies largely depend upon a licence to operate from governments. This allows them to extract and process minerals in return for investment and the payment of taxes and royalties. Increasingly it is also important to get the consent of local communities to mining development – a ‘social licence’ to operate. Like all businesses, mining companies are under increasing scrutiny from pressure groups as well as the general public. Anglo American seeks to adopt fair and sound business practice. The company believes that it has an important role to play in building the capabilities of the communities where it works. Issues such as combating corruption and promoting revenue transparency are high on the company’s business agenda. This case study shows how Anglo American seeks to make ethical choices in its business practice. What are business ethics? Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business. Acting in an ethical way involves distinguishing between ‘right’ and ‘wrong’ and then making the ‘right’ choice. It is relatively easy to identify unethical business practices. For example, companies should not use child labour. They should not unlawfully use copyrighted materials and processes. They should not engage in bribery. However, it is not always easy to create similar hard-and-fast definitions of good ethical practice. A company must make a competitive return for its shareholders and treat its employees fairly. However a company also has wider responsibilities. It should minimise any harm to the environment and work in ways that do not damage the communities in which it operates. This is known as corporate social responsibility. ANGLO AMERICAN 25 www. thetimes100. co. uk The law is the key starting point for any business. Most leading businesses also have their own statement of Business Principles which set out their core values and standards. In Anglo American’s case, this is called ‘Good Citizenship’. A business should also follow relevant codes of practice that cover its sector. Many companies have created voluntary codes of practice that regulate practices in their industrial sector. These are often drawn up in consultation with governments, employees, local communities and other stakeholders. Anglo American has played an active part in initiatives such as the Extractive Industries Transparency Initiative, the United Nations Global Compact and the Global Reporting Initiative. GLOSSARY Code of practice: written guidelines governing business behaviour. This could take the form of a voluntary code or a legally enforced set of regulations. Universal Declaration of Human Rights: a declaration adopted by the United Nations General Assembly in 1948 outlining human rights that should apply to all people. Engagement: the process of involving others in the decision making process. Anglo American has also contributed to the Voluntary Principles on Security and Human Rights. This code sets out principles and practices for ensuring that a company’s need to ensure the security of its employees and operations in volatile countries does not adversely impact upon the local population. Thus the Principles provide guidance on how both private and public security forces assigned to protect a mining operation or an oil and gas facility should be vetted, trained in human rights, monitored and controlled. Anglo American also aims to ensure that it plays a role in protecting the human rights of its employees and local people in countries in which it operates. The company supports the principles set forth in the Universal Declaration of Human Rights. All companies need to make a profit. However, Anglo American recognises that this objective must take account of ethics as shown in its statement on corporate responsibility: ‘Though providing strong returns for our shareholders remains our prime objective, we do not believe that these can or should be achieved at the expense of social, environmental and moral considerations. Indeed a long-term business such as ours will only thrive if it also takes into account the needs of other stakeholders such as governments, employees, suppliers, communities and customers. ’ An important process used by Anglo American is that of stakeholder engagement. This enables it better to understand the perspectives and priorities of external groups that are affected by its activities and to factor them into its decision-making processes. To support this work at a local level, Anglo American has developed a Socio-Economic Assessment Toolbox or SEAT process. This ‘toolbox’ helps managers to measure the impact of activities on the company and communities. It also helps to improve a mine’s contribution to development through, for example, using its supply chain needs to generate new businesses or to improve the water or electricity infrastructure. They use this toolbox to engage with stakeholders including community representatives. 26 Sometimes communities have to be resettled, with government sanction, in order for important mineral deposits to be accessed. This can cause controversy and divisions in the communities concerned. International best practice sets out a number of key stages in such a process including the need for structured consultation, fair compensation and the importance of restoring and enhancing the livelihoods of people in their new locations. Recently Anglo American has had to undertake two such relocations in South Africa at the villages of Ga Pila and Motlhotlo. These were undertaken with the support of the provincial government and local tribal leadership and after consultation with local people lasting for several years leading to agreement with each householder. New villages have been built with better houses and infrastructure and more land for farming. The relocation programme was voluntary. The relocation programme at Motlhotlo is still under way but at Ga Pila 98% of those living in the old village took up the offer to move to the new village. www. thetimes100. co. uk GLOSSARY Empowerment giving responsibility for making decisions to lower levels within the organisation or community. Indigenous: naturally existing in a place or country rather than arriving from another place. Why should a business act ethically? Businesses have great potential to transform people’s lives and to alleviate poverty through generating economic growth. They produce goods and services that customers want and they create jobs. Through paying taxes, they contribute to government revenue that can finance schools, hospitals and other public services. However, a business must keep in tune with the wishes of the societies it serves or it runs the risk of alienating its shareholders, stakeholders and customers. This would be bad for business, reducing growth and potentially affecting profit. Anglo American has to deal with many different levels of interest when setting up a new project. This includes, for example, the owners of the land and the people and services in the area. The current South African government has a policy of transferring a share of the ownership, management and benefits of the country’s mining industry to people previously excluded from the economy. Anglo American is backing the South African government in this process. This includes supporting black economic empowerment deals (BEE). Through this process, Anglo American has sold (usually at a small discount) 26% of its assets in South Africa to BEE groups. For example, Anglo American was instrumental in the creation of Exxaro. This is now the largest black-owned and managed mining company listed on the Johannesburg Stock Exchange. It also aims to have at least 40% of its managers drawn from the ranks of previously disadvantaged ethnic groups. Governments in the developing world face many challenging social and economic problems. They need companies that are ready to be part of the solution. Anglo American believes that it can support governments in reducing poverty and inequality and in improving health and welfare. In South Africa, the company has been a major campaigner for AIDS education. It was the first major company in South Africa to announce that it would provide free anti-retroviral drugs to its HIV-positive employees. It now has the largest workplace HIV/AIDS education, voluntary testing and treatment programme in the world. After running the programme for five years studies have shown that the programme has become self-financing through reducing deaths and the attendant loss of skills and cutting absenteeism rates by boosting the health of infected workers. What are the effects of acting ethically? Most business activity incurs financial costs such as equipment and labour. Non-financial costs include noise and impact on the environment. There is a financial cost to acting ethically. To engage stakeholders takes time and money. Mining in ways that minimise environmental impacts is more expensive than extracting resources regardless of impact. An ethical business also recognises its responsibility for minimising the non-financial costs. The Pebble Project in Alaska is a good example of the way that Anglo American takes account of non-financial costs. This is a gold and copper mining project in the early stages of assessment. This could provide new jobs and revenues for the Alaskan economy at a time when oil and gas revenues have been falling. However, some people are concerned that the mine could damage fish stocks and wildlife. Therefore, Anglo American has been consulting widely and through a structured process with local people, politicians, businesses and especially indigenous people. 27 ANGLO AMERICAN Anglo American has made it clear that it will only seek to proceed with the project if it can be done without damage to the local fisheries. It will also give priority to the recruitment of local people. www. thetimes100. co. uk The benefits of ethical behaviour Anglo American establishes goals each year for sustainable development. These goals include: †¢ working without fatal accidents †¢ eliminating occupational diseases †¢ increasing diversity in the workplace †¢ increasing the benefits of mining for local communities †¢ increasing energy efficiency. By working towards these goals, Anglo American hopes to gain a competitive advantage. By demonstrating a more caring and sustainable approach, the company is able to differentiate itself from rival mining companies. It makes Anglo American more likely to be the partner of choice for many governments and communities in the developing world. It also helps with its position on the stock market. Most long-term investors, such as pension funds that run investments for millions of ordinary people in the UK, believe that it is important for a company to consider social and ethical issues and not just the financial bottom line if a business is to be sustainable. Anglo American sees shareholder returns and social and environmental responsibilities as complementary activities. This puts the company in a stronger position. All stakeholders benefit – shareholders, employees, governments, local communities and suppliers. GLOSSARY Sustainable development: development which meets present needs without compromising the ability of future generations to achieve their own needs and aspirations. Competitive advantage: a strategic element that enables an organisation to compete more effectively than its rivals. Governance: the process of making decisions and governing. Conclusion Anglo American is a multinational organisation with a high profile in the primary extractive sector. Because many new mineral deposits are to be found in developing countries, some of which have weak governance, Anglo American recognises that it must be rigorous in observing local laws, even if they are not always enforced. It has a significant role in supporting good governance initiatives and boosting the opportunities available to the communities associated with its mines. The company is involved in a range of initiatives to help these communities, such as AIDS testing and provision of new local services like schools and clinics. Its socio-economic assessment toolbox helps it measure its impact and engage with local communities to resolve issues and to underpin initiatives like small business development or partnerships with local farmers. The Times Newspaper Limited and  ©MBA Publishing Ltd 2008. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission. The financial and non-financial benefits to the company and shareholders are shown in several ways. Anglo American is trusted as a business partner that takes into account social and environmental issues. It has licence to operate in countries like South Africa, Brazil or Chile, where it is playing an important part in encouraging local business development. Questions 1. What are business ethics? Give two examples of business practices that stakeholders would regard as ethical and two that might be considered unethical. 2. The benefits of ethical business behaviour affect the business itself and the wider community. Taking an example of an Anglo American business project, identify the benefits to the local community and to the company’s shareholders. 3. How is Anglo American’s reputation enhanced by engaging with local communities in decision-making? Why is it important for this engagement to be an ongoing process? 4. Some business decisions involve a careful balance of social, economic and environmental considerations. Evaluate how Anglo American achieves that balance, using examples from the case study.

The Downside Risk of Comparison Essay Samples Contrasting Siblings That No One Is Talking About

The Downside Risk of Comparison Essay Samples Contrasting Siblings That No One Is Talking About Comparison Essay Samples Contrasting Siblings Options It is possible to explore them all and select the one which best matches your topics and preferences. It might also talk about the access to vegan, vegetarian or gluten-free products. You may use the suggested topics as inspiration for your own, or you could simply opt to write about one you enjoy the most. Our experts will inform you absolutely the exact same, but after teaching you the way to compose a compare and contrast essay. The topics you'll find here require an exceptional approach as you attempt to think of useful and accurate content. It will take time to investigate and prepare, so attempt to choose a topic that interests you and yet still satisfies all the academic requirements. 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Both have a vast array of expensive, elegant restaurants and a similar quantity of global and national chains. A Venn diagram may be used to sort the info. A thesis takes an important function in the entire essay writing process as it essentially sets the mood for the entire essay. To be sure that you relate all the info you've researched in a thorough fashion, you must adhere to the prescribed compare and contrast essay format by your professor or the academe. You may employ a professional essay writing service to complete your assignment in the ideal quality. When the writer has the information that will enter the essay, they should just begin writing! It also depends upon the outline you've created before starting writing. When writing any form of academic paper, an individual needs to be able to get familiar with the essentials of writing. You have to analyze both things and think of a conclusion. Make certain you don't compose each and every point and just concentrate on the vital ones. Or you're risking of getting blocked by bad understanding of your topic and inability to come up with the idea as it ought to be. The policeman's image is understood to be impassive' and implies that he doesn't care. When the reader or professor likes the topic sentence, you are in possession of a high odds of obtaining a fantastic mark. Just utilize whatever you can remember from this issue you're working with. Every bit of writing will be created based on your requirements and the criteria you provide. Nevertheless, it's important to bear in mind that it isn't just as with any other bit of assignment. Family members are those who hail from a typical ancestry while friends aren't related to people. People don't have a choice above their families till they are old enough to marry to go married. Cases are reported all around the world where family members are killing each other over loyalty to their pals or for private gain. Furthermore, relationships among family members have a tendency to be steadier and firm in comparison to those among friends.

Corporate Governance Of The Uk And Lehman Bros - 1229 Words

Due to a significant number of large company scandals and collapses internationally in recent years, for example, Robert Maxwell, Royal Bank of Scotland (RBS) in the UK and Lehman Bros, WorldCom in the US. These has raised an attention to the importance of corporate governance. According to the definition of â€Å"Corporate Governance† by The Economic Times (2009). It is â€Å"Corporate governance refers to the set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term.† The main purpose of corporate†¦show more content†¦Therefore in 2012 the government introduced the Enterprise and Regulatory Reform Act in order to subject shareholders a binding vote on executive pay. With this power, shareholders can hold comp anies to account and hence companies need to get shareholders’ approval before making payments to executives. Therefore, shareholders will have a clear mind on director’s remuneration policy which will set out how the company proposes to pay director in order to ensure the relationship between director’s pay and company performance. It requires more than 50% of shareholders to pass the policy, otherwise it will go back to last approved policy. In order to administrate the company effectively, a balance is needed to be taken between investor’s expectation and executive’s incentive to work. Hence, this essay will discuss whether shareholders should have a say on Executive Compensation in the UK context. The following will discuss several reasons that shareholders should have a say on executive pay. Firstly, The Walker Report in 2009 suggests shareholders to be more active to protect their interest by taking more actions to exercise director’s control such as attending the annual general meeting and vote as they wish. As they are the owner of the company, they have the rights to know what the company is intent to do and also the reason shareholders invest, is to share the profit in the company. According to Burns and Minnick (2011), giving