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Doing Business on the Internet





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There are different ways in which businesses can benefit from Internet:

♦ Businesses use e-mail to deal with customers, to make and respond to enquiries quickly and to communicate with employees.

A corporate website may be used for publicity, for selling or for sharing information.

The Internet is a powerful tool for gathering data.

 

MARKETING

Marketinginvolves analyzing and understanding customer demand in order to enable the company to provide the most appropriate products and services.

A company's approach to achieving its marketing objectives is called marketing strategy.

The various factors a company must take into consideration when developing its marketing objectives arereferred to as marketing mix.The marketing mix is often summarized as the so-called four P's: product, price, place, promotion: what to sell, to whom, where, and with what support.

Productcan be defined as goods or service that you are marketing and includes its design, quality and reliability.

Pricerefers to how much money a company charges for its products.

Placerefers to distribution, that is, how and where the product is made available to customers.

Promotionmeans presenting the product to the customer.

 

MANAGEMENT

Management is a function of planning, organizing, coordinating directing and controlling. Management is composed of team of managers who have charge of the organization at all levels. There are 3 management levels: the top, middle, and first-line management level.

1.The planning functioninvolves the process of setting objectives to meet the organizational goals.

There are 3 types of planning.

Strategic planningis broad, long-range planning that outlines the goals of the organization. Tactical planning, on the other hand, is specific, short-term planning that lists organizational objectives. Contingency planninginvolves developing an alternative set of plans in case the first set doesn't work out.

2. The organizing function.Managers develop a framework that illustrates the relationship of workers, tasks and resources.

3. The directing functionof management involves giving assignments, explaining routines, clarifying policies, and providing feedback on performance.

4. The controlling functionsare very important to achieve positive managerial results as well as marketing results. Manager is a very hard job. Managers must be good planners, organizers, coordinators, communicators, morale builders. Managers must have three categories of skills: technicalskills, conceptualskills and human relations skills.

 

ACCOUNTING

Accountinghas often been called the "language of business". Accounting is an integral part of business practice nowadays.

Accountingis recording classifying, summarizing and interpreting financial transaction. Accounting process consists of two parts: bookkeeping,and accounting itself. Bookkeepingmeans the recording of transaction that is postingfinancial entries into the ledger.The ledgeris the collection of amounts based on a double entry system.

Accounting information is presented in the form of financial statements.The main of them are Balance Sheetand Income Statement. The Income Statementshows financial position of a business over a definite period of time (month, quarter, and year). The Balance Sheetshows the financial position of a business on a certain date, usually the end of the month or year. The accounting information is necessary for different user groups:owners of the business, managers, creditors, suppliers, customers, government agencies, investors.

Accounting deals with different accountsand the main of them are: assets, liabilities, owner's equity (capital), revenues and expenses. Accounting is done by accountants. Certified Public Accountantsget special certificates and can perform audit.

 

 

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