Case-Based Questions: Emerging Modes of Business | Business Studies (BST) Class 11 - Commerce PDF Download

Carefully read the following case studies, which present real-world business scenarios, and answer the question(s) that follow each case to test your understanding and application of business studies concepts.
Case 1: Mr. Mehra’s Online Transactions
Mr. Mehra, General Manager at AU Small Finance in Rajasthan, was transferred to Hyderabad. He sold his old sofa and bed through OLX. In Hyderabad, he ordered a new sofa and bed from Godrej Furniture online, tailored to his room’s space. Upon delivery, he noticed a color defect in the sofa and filed an online complaint with Godrej’s customer care. The head of the customer grievances cell forwarded the complaint to the Marketing and Production managers for action. An inquiry revealed that M/s Touchwood Furniture Dealers, a distributor of Godrej Furniture in Hyderabad, caused the ‘default on delivery’ while processing the online order for delivery to customers.

Q1: ‘So he sold his old sofa, and bed through OLX.’ Identify the type of e-business model involved in the transaction mentioned here.
(a) Business to Customer
(b) Business to Business
(c) Customer to Customer
(d) Customer to Business

Correct Answer: Option (c)
The transaction on OLX represents a Customer to Customer (C2C) e-business model, where individuals trade directly with each other online. C2C platforms like OLX facilitate such exchanges, leveraging e-commerce and the sharing economy.

Q2: 'M/s Touchwood Furniture Dealers, distributor of Godrej Furniture in Hyderabad made the ‘default on delivery’ while taking online order from Godrej Furniture for making delivery to its online customers.” Identify the limitation of e-business stated here.
(a) Lack of personal touch
(b) Time-consuming
(c) Risk arising due to anonymity and no traceability of parties
(d) Fraudulent trading

Correct Answer: Option (c)
The limitation is the risk arising due to anonymity and lack of traceability of parties, as the distributor’s error in delivery highlights challenges in ensuring accountability in e-business transactions.

Q3: ‘...he found colour defect in the sofa so he filed an online complaint with customer care cell of Godrej Furniture.’ Identify the type of e-business model involved in the transaction mentioned here.
(a) Business to Customer
(b) Business to Business
(c) Customer to Customer
(d) Customer to Business

Correct Answer: Option (d)
Filing an online complaint represents a Customer to Business (C2B) model, where the consumer (Mr. Mehra) provides feedback or value (complaint) to the business (Godrej Furniture) for resolution.

Q4: 'The head of customer grievances cell forwarded this complaint mail to the Marketing manager and Production manager for further action.' Identify the scope of e-business mentioned in this case.
(a) Customer to Customer
(b) Business to Business
(c) Intra B
(d) Customer to Business

Correct Answer: Option (c)
The scope is Intra B, referring to internal transactions within the firm, as the complaint was forwarded among Godrej’s internal departments for resolution.

Case 2: Utsav Sharma’s Laptop Bag Business
Utsav Sharma, an entrepreneur, plans to start a business manufacturing laptop bags with an inbuilt lock and solar charger. Due to the complex and tedious manufacturing process, he decides to produce the bags entirely at his factory but outsources the advertisement campaign to Vigyapan Agency to focus on core functions.

Q5: Identify the mode of business followed by Utsav to focus on key functions of business.
(a) Outsourcing
(b) e-business
(c) Agency
(d) Joint venture

Correct Answer: Option (a)
Utsav follows outsourcing, hiring Vigyapan Agency to handle advertising, allowing him to concentrate on manufacturing, a cost-effective strategy to enhance efficiency.

Q6: Outsourcing of advertising services will come under the scope of _______________.
(a) BPO
(b) KPO
(c) Both BPO and KPO
(d) Horizontal service provider

Correct Answer: Option (a)
Outsourcing advertising falls under Business Process Outsourcing (BPO), as it involves contracting a non-core business task (advertising) to an external provider.

Q7: Vigyapan Agency is a:
(a) Captive service provider
(b) Vertical service provider
(c) Horizontal service provider
(d) All of the above

Correct Answer: Option (c)
Vigyapan Agency is a Horizontal service provider, offering advertising services to multiple industries, not limited to a specific sector or client.

Q8: Which one of the following is not the need of outsourcing?
(a) Focusing of attention
(b) Quest for excellence
(c) Cost reduction
(d) Sharing of trade secrets

Correct Answer: Option (d)
Sharing trade secrets is not a need for outsourcing. Outsourcing aims to improve focus, achieve excellence, and reduce costs, not to disclose confidential information.