Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 16 Emerging Service Business in India Notes
→ The individual who acquires the right to operate the business or use the trademark of the seller is known as the franchisee.
→ Franchise relationship is based on an agreement which lays down terms and conditions of this relationship.
→ When a franchisor awards rights covering all business aspects as a complete business package to the franchisee it is called as business format franchising.
→ The cost of advertising for the franchisor will be reduced since this cost will be shared by the franchisee.
→ Franchising enables a franchisor to expand the existing business to wider geographical regions within the country and abroad.
→ Factoring is derived from a Latin term “facere” which means To make or do’.
→ Factoring is an arrangement wherein the trade debts of a company are sold to a financial institution at a discount.
→ When the claims of an exporter are assigned to a financial institution and the finance is advanced on the basis of export invoice it is called as international factoring.
→ Forfaiting is defined as “the non-recourse purchase by a bank or any other financial institution of receivables arising from an export of goods and services”.
→ Factoring helps smooth running of business by getting short term credits from financial institutions against accounts receivables.
→ Logistics Management is defined as ‘Design and operation of the physical, managerial, and informational systems needed to allow goods to overcome time and space.
→ Organisations taking proactive managerial attention in coordinating the actors in logistics leads to reduced logistics costs and improved customer service.
→ The Logistics „ Management can be classified on the basis of applications from various dimensions in the process of examining and evaluating alternatives.
→ In transportation infrastructure the following framework can be used to identify the problem areas like Right of way, Vehicle, Motive power, Terminals, Operations/systems.
→ Logistics Management deals with the efficient management of a static gap between demand and supply whereas Supply Chain Management tries to identify the dynamic nature of the value creation itself such as responsiveness, qualify and design.
→ Recently a new type of business in service sector has become popular in the world. It is called the Business Process Outsourcing (BPO).
→ Companies can benefit in the long run provided they are keen on their core activities rather than non core activities.
→ Outsourcing enables the firms to pursue excellence in two ways namely excelling themselves in the activities they do and excel outsiders by extending their capabilities through contracting out.
→ BPO means getting contractual services of external companies or group of companies to complete special work or process of a company.
→ KPO means obtaining high end knowledge work from outside the organization in order to run the business successfully and in cost effective manner.
→ E – Commerce or Electronic Commerce is the buying and selling of goods and services through electronic networks like internet.
→ E – commerce promotes innovative practices of carrying on business.
→ Electronic and software products could be downloaded immediately after purchase through e – commerce mode.
→ Business to customers (B2C) is fastest growing segment in e – commerce spare. Under this model, business concern sells directly to consumers.