Thursday, 20 June 2013

Unit 12 - P7 and M4

P7  - Outline the impact of online business in society
M4 - Analyse the consequences for society of an increase in online business



In this part of my assignment I will explain the impact of online business in society as employing, people's life and etc, and what implication in the society will be if a business grows.

The online businesses could have different impact in society. The online businesses can result in different ways to the people out there, for some businesses is profitable for some not. Even some business bankrupt or close down because the online businesses, but for some of them is profitable because they make more sells and bypass the taxes, costs and etc. 
If a business grows and start serving in other countries, that will affect a part of the world and the business. The business will have to pay more taxes, shipping additions and etc. They will have to check the rules and regulations and that kind of things, because as I mentioned in my other assignment about risks of online business, the product you sell might be not legal in the country you want to make sell over internet and that can open them many quite serious problems, when a business grow the owner of the business should to be more careful about their business. Will be good for the business of course, because that means the business is doing very well in selling.
If a business grow, that can be good for the society because will have more options of products for the people, might have different products than the usual products. The price of the goods can be different, the quality can be good. There will need some more employee to control the business and that means less people will be without a job.
If a business grow, that can be bad for the society as well because that means if the business is successful, the business in the High Street and Shopping centre will be less because they can afford to have more staff and buy new product and etc. When a business close down, that affect other businesses as well, businesses which they were selling their products to that business.

The online businesses mostly affect the shopping because they make it easier for the people to make a shopping. People prefer to go to buy something online instead wasting their time to plan a journey and find out the right  product they want to have. Via online businesses is easier for the people, they don't have to do these things, they just have to chose few options and after a time they will get it at home via delivery. The payment its easy, again by pressing some buttons and that's all. That kills the normal shopping as well, when people go together to shopping and try clothes, talk with someone, ask for opinion and etc.

Online business > online shopping > businesses close down > people are without job> no wages>break ups> crimes>jail

I add few pictures which will confirm my coursework, the pictures will be about total online spending, unemployed people and about the crime came because the unemployment.

In that graph clearly shows that the Online shopping has increased a lot since 1997.

 
Many people prefer to do their business in online as you see in the graph, because there are couple of reasons like: Have no need of more staff, no premises costs (depends on your online business), less taxes and etc. That's why the online business is more profitable nowadays.



In that picture you can see that the unemployed people has increase in the last few years.



There are many reasons for unemployment, but online business are one of the main problems for that. As many organisations have online business, the employees will be useless for the organisations that's why have cut of staff, not accepting that much staff.

The online business always find out a way to say that they fallow the rules about the taxes, but they don't do that really. Some organisations made smart move, by having a profit, or run the business from there where the taxes are lower and the costs too. There are few organisations which find out that way and use them to pay less taxes. For an example Amazon is one of them.
What Amazon did, they earn their profit in Luxembourg. That saves their life, because they make sales for over £4bn and pay only £2,4 taxes for a year.
The important question for all of people reading that is, where all the money goes to. Some of the money are spending to cover some of the cost, improvements and the rest goes as profit. They spend some money in developing their web site, like how more friendly they can make it and improving the delivery system, they try to do that  more efficiently.
There are few examples as well, like Top Shop, Google and etc.

Like all, the online business are good and bad because couple of reasons. The employees are fine with that, because they do less physical job and they can do it from wherever they want to, all you need is a type of computer and Internet, or as in these days the new smart phones are useful they do their work over the phone while travelling or doing something else. This is more comfortable for the employee obviously, and comfortable for the employer as well because it's less worries about the staff, less costs - more profit.
Online businesses, make easier the shopping for them by bringing all the services in only few clicks and 1,2 minutes. People don't save time only by that, they save money as well because in internet most of the products are cheaper then the shop prices. (Shop prices looking for more income, because the more costs)




1 comment:

  1. A good P7 But I would like to see some evidence from the real world to back up your M comments.
    You can analyse the graph you have shown.
    Where is the money being spent online?
    Look at the way Amazon and Google have been behaving with taxes etx
    http://www.bbc.co.uk/news/business-22549434
    Some analysis on this please.

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