E-Business. Classification, Development And Implications Of E-Business Essay

E-Business. Classification, Development And Implications Of E-Business On Modern Organizations - Essay Example The global information infrastructure served as the foundation for new methods of personal interaction, communication, transaction and this has tremendously changed the way people did business. From the mid 1990s, global networking platform grew rapidly until 2000 and has started showing major signs of success stories of many multinational companies by 2003 (Schneider, 2011, p. 4). Within just few years after the mid 1990s, the internet-based business has become a larger part of the total economy. Electronic Business, generally termed as E-business, is one of the most important aspects to emerge from the internet. E-business is more than another way to sustain and improve the traditional business practices. Most of the researchers highlighted the revolutionary aspects of e-business adoption and its positive impacts on human life whereas some others suggested that e-business is a kind of disruptive innovation as it radically changes the traditional way of carrying out business. E-marketing, E-banking, E-learning, E-government etc are other major breakthrough developed with the use of internet technology. This paper provides detailed answers to the questions what is E-business and how does it matter to an organization. Based on relevant literatures, this paper examines the theoretical perspectives of e-business and describes its general impacts to a business organization. This paper will focus on the field of e-marketing and examines how e-marketing is influencing today’ s business and marketing arenas. E-business The terms E-commerce and E-business are often used interchangeably, but they are distinct concepts. E-commerce is a term used to describe the process of transacting business over the internet, but E-business involves the fundamental reengineering of the business model in to the internet-based networked enterprise. More specifically, ecommerce is narrower in the sense that it refers only to the buying and selling of goods or services by using internet technology, whereas E-business accounts for all business activities, including both internal and external, that are conducted online. E-business describes the information system and application using the internet to support and carry out business processes. As Bartels (2000) noted, to be very specific about the difference, E-business includes E-commerce, but also covers organization’s internal activities such as manufacturing, inventory management, financing, human resource management, knowledge management etc. With E-business, companies can link its internal and external activities very effectively to work more closely with different stakeholders such as suppliers, partners, and customers etc to satisfy customers’ needs. Grefen (2010) strongly argued that primarily three criteria are to be met to call a combination of business activities and information technology e-business. These three criteria are: 1- The business activities must be core activities. The activities must be directly related to the reason of the existence of the business. 2- The use of information techn

Financial statements analysis and financial models(question answers) Assignment

Financial statements analysis and financial models(question answers) - Assignment Example a company, without seeking for debt finance, the following are two ways a company can adopt in order to increase the sustainable growth rate: first, the utility rate of assets should be increased in order to increase the revenue generated, thus, increase the net income. An increase in the net income increases both the ROE and the payout ratio. Second, the company can depend on either retained earnings or equity finance to fund the undertakings of projects with positive net present value. ROE = Profit margin*Total asset turnover*equity multiplier = (0.55*1.9*0.063) = 6.5835%. Sustainable growth = (ROE*b)/1- (ROE*b). 0.09 = (0.065835b)/ 1 – (0.065835b). b = 1.2546 = (1 – payout ratio). Therefore, payout ratio = (1.2546 – 1) = 25.46%. Consequently, for the growth rate to be achieved, the dividend payout ratio must be 25.46%. The interpretation means that the company will use 25.46% of the net income to fund dividend payment. The approximate sustainable growth rate SGR = (ROEb)/1- (ROEb). ROE = (Net income/equity) = (95,000/230,000) = 41.30%. The payout ratio = (42,000/95,000) = 44.21%. Therefore, SGR = (0.413*0.4421)/1 – (0.413* 0.4421) = 0.1826/ (1- 0.1826) = 22.34%. The exact sustainable growth rate = 22.339124%. Since the value of equity never changed during the period, the ROE is remains unchanged. Therefore, the approximate sustainable growth rate is similar to the above determined