Question

Some people feel that controls in small businesses (typically owner operated with less than 20 employees) are dysfunctional, in that they create resentment and loss of morale without producing much benefit. Employees generally feel that the owner lacks trust in them, the control activities impose additional work, and/or that control procedures result in inconvenient and inefficient work practices. Control procedures implemented in small businesses are generally ineffective and only belong (and only effective) in large organisations where management is separated from the operational activities of the organisation.

Q. What do you perceive to be the advantages and disadvantages of conducting business on the Internet? Explain your answer in detail.

Answer 1

ADVANTAGES OF CONDUCTING BUSINESS ON THE INTERNET ARE AS FOLLOWS

1. Greater communication: Doing online business has a great advantage nowadays that too in the times of pandemic where you can’t go everywhere physically for safety reasons. Online business helps in having greater communication where you can access your clients easily and respond easily to the customers. In fact it’s a fastest way of communication as it takes less time.

2. It involves less cost - Doing business online on daily bases involves less cost where you don’t need to spend more money. It’s the biggest advantage where you can earn more with the less cost involved which is the very attractive type of doing business.

3. Environment becomes dynamic - This is also one of the reasons for choosing the online business. The business becomes dynamic that means the business can adjust itself to the changes that are happening in the environment and can evolve itself more whereas it becomes little tough to the non-online business to adjust itself to the environmental changes. It becomes rigid.

4. Increase in revenue & Goodwill of the business - It helps the customers to buy products sitting in their place. Just looking at the products on the mobile phone you can just decide what to buy. If the customers wants information about the product, it’s not necessary to go to the store physically you can get information sitting at your place. This in turn leads to greater revenue and goodwill of the business.

5. Greater platform for making advertisement - Yes, it’s easy to do advertisement about their products which does not involve any cost. Advertisement can be made in more attractive wise. People see the world in their mobile sitting in their place. Doing advertisement online it reaches the customers very easily.

DISADVANTAGES OF CONDUCTING BUSINESS ON THE INTERNET ARE AS FOLLOWS

1. Impersonal;- When it has advantages it can disadvantages too Customers don’t visit the business personally. They don’t get to know their vendor personally. which can create hindrance to the business as customers can lose interest in their services as there are many available online. The relation between these 2 becomes essential to have great bond and trust. It becomes quite tough online.

2. Fraud - People doing scam online can hack your financial information and have access to your personal things which becomes greater issue. This can create huge problems since hackers can leak any information relating to the business.

3. It takes long time to reach customers - When you any commodity online it takes long time to reach you whereas when you busy products physically you can buy them immediately It’s not possible online. Customers need to wait to get their products. Then it becomes disadvantage to the business since customers many lose interest in their products.

4. Loss of information on server - This is the greatest disadvantage. If the information is lost on the server you can never retrieve it back. It loses all its necessary information.

5. Increase in competition - As everyone is familiar with online business, there is no restriction on entry to the online business. That’s why it’s very competitive. Due to increase in the competition you can lose customers as there are many to sell the product that you selling.

Conclusion - From the above it’s clear that doing online business has advantages and disadvantages too. The only thing to become successful entrepreneur is gaining knowledge and changing the system according to the changes that happen around.

Dear students if you like the answer please hit the like button.