Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
    1. External environment
    2. Introduction - PEST/STEP analysis
    3. The legal and political environment - introduction
    4. The legal environment
    5. Political stability and instability
    6. The social and cultural environment - introduction
    7. Social responsibility
    8. Demographic trends
    9. The technological environment - introduction
    10. The Internet and the World Wide Web (www).
    11. E-commerce
    12. Technological change
    13. The ecological environment
    14. The economic environment - introduction
    15. Economic growth
    16. The Business Cycle
    17. Inflation
    18. Exchange rates
    19. Unemployment
    20. Interest rates
    21. Government fiscal policy
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

E-commerce

What is more important than definitions and distinctions, is that both the Internet and the Web are used to promote what is referred to as e-commerce - using networks and electronic devices to support buying and selling, and supporting any communication or transaction between a business, their customers, suppliers and other stakeholders.

The growth of the web has led to the development of retailers which sell exclusively via the Internet, such as Amazon. However, the Web has also provided existing retailers, such as Staples, with an additional distribution channel. In the US, the 500 e-retailers in the Internet Retailer Top 500Guide for 2009 accounted for 93.7% of all web sales. Perhaps more remarkable is that the top 100 of those merchants control 80.7% of all web sales.

While the big players have long been dominant, their dominance is growing. In 2008, the Top 500 accounted for 87.9% and the Top 100, 74.5%. So it appears that established brand identity and economies of scale still provide competitive advantages, even in this new marketplace. Indeed, the big e-retailers are getting bigger.

In the next section we look at possible areas where technological change will impact on business.