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SAI INTERNATIONAL SCHOOL
CLASSS XI
SUBJECT: BUSINESS STUDIES
CHAPTER -5, EMERGING MODES OF BUSINESS
Topics: Traditional vs. e-business, outsourcing, features
(Lesson-note-24)
Basis of distinction Traditional business E- business
Ease of formation Difficult Simple
Physical presence Required Not required
Proximity to the source of
Location raw materials or the None
requirements market for the products
Cost of setting up High Low as no requirement of
physical facilities
High due to fixed charges Low as a result of reliance
associated with
Operating cost on network of
investment in relationships rather than
procurement and ownership of resources
storage, production,
marketing and
distribution facilities
Nature of contact
with the suppliers Indirect through Direct
and the customers intermediaries
Nature of Hierarchical - from top Non-hierarchical,
internal level management to allowing direct vertical,
communication middle level horizontal and diagonal
management to lower communication
level management to
operatives
Response time for
