How has e-commerce had an impact on a business’s functional areas? (40 marks)
Functional areas of a business is the grouping of individuals on the basis of the function each performs in the organization, such as accounting, marketing, customer service and manufacturing.
Marketing professionals determine the products that their companies introduce to the marketplace, often using marketing research surveys to determine what consumers need and want. This helps the company to better align its strategies. E-commerce has aided this functional area because it means that when someone makes a purchase online they can analyse the data that comes with it. Online sales may use ‘cookies’ this is a feature that stores all sorts of useful information for the business to analyse. This could consist of what you have clicked on, how long you stayed on each web page or even what you added to your basket. This means that ...view middle of the document...
‘Cookies’ is also an optional feature for a consumer to use so the consumer won’t be complaining for businesses storing their data as they have the option to say no.
E-commerce also has its drawbacks for marketing. The reason for this is because a business now has ‘less of a voice’ in their industry. This is because all businesses have access to this data as it’s a cheap method of market research. Also when trying to advertise a product or service online a business may struggle to be seen because there are so many online ads these days to make your own stand out from the rest is an incredibly difficult task. However if done correctly a business may go viral. An example of this is when a company called ‘stress level zero’ took advantage of YouTube’s #360 video feature as soon as it became available to use. Since then it has accumulated over 4 million views and the advert cost the business £0 to upload.
Accounting professionals usually work in one of three areas: accounts receivable, accounts payable and payroll. Accounts-receivable specialists track the debts owed to the company. E-commerce has changed the way that these people work in many ways. One of these ways is the introduction of electronic payment systems. These are easier, faster long distance payments and reduced paperwork. This saves them time and money as the online payments are done within seconds and can be overseas too. Another benefit is that the transactions will be safe and secure. This saves even more time as there is less time ensuring that payments are real. However this is still prone to online robberies and fraud. Businesses can protect themselves from this but it can be expensive and constantly updated.
Online accounting also means that there is less chance of human error. This is because they computer automatically updates its figures when a sale or a purchase comes through. Accounts-payable employees track payments that the company owes, including amounts owed for parts or to repair and maintenance vendors. E-commerce has effected them too as it has allowed them to see what exactly they need to pay and to who