New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here


by: Gerda Pacocha
Gerda Pacocha
CSU Pomona
GPA 3.86

Anwar Salimi

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Anwar Salimi
Class Notes
25 ?




Popular in Course

Popular in Accounting

This 10 page Class Notes was uploaded by Gerda Pacocha on Saturday October 3, 2015. The Class Notes belongs to ACC 405 at California State Polytechnic University taught by Anwar Salimi in Fall. Since its upload, it has received 59 views. For similar materials see /class/218383/acc-405-california-state-polytechnic-university in Accounting at California State Polytechnic University.


Reviews for e


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/03/15
Chapter 1 Landon Objectives Define ecommerce and describe how it differs from ebusiness Identify and describe the unique features of ecommerce technology and discuss their business significance Recognize and describe Web 20 applications Describe the major types of ecommerce Discuss the origins and growth of ecommerce Explain the evolution of ecommerce from is early years to today Identify the factors that will define the next five years of ecommerce Describe the major themes underlying the study of ecommerce Identify the major academic disciplines contributing to ecommerce Key Terms ecommerce p 10 ebusiness p 11 information asymmetry p 12 marketplace p 14 ubiquity p 14 marketspace p 14 reach p 14 universal standards p 14 richness p 15 interactivity p 15 information density p 16 personalization p 17 customization p 17 Web 20 p 18 BusinesstoConsumer B2C ecommerce p 20 BusinesstoBusiness B2B ecommerce p 20 ConsumertoConsumer C2C ecommerce p 21 PeertoPeer P2P ecommerce p mobile commerce mcommerce p 21 Internet 22 World Wide Web Web p 22 disintermediation p 32 frictionfree commerce p 32 first mover p 33 network effect p 33 Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Brief Chapter Outline Openin 1 1 Ec 12 Ec g Case Facebook andMySpace It s All About You ommerce The Revolution Is Just Beginning The First Thirty Seconds What Is Ecommerce The Difference between Ecommerce and Ebusiness Why Study Ecommerce Eight Unique Features of Ecommerce Technology Web 20 Play My Version Types of Ecommerce Growth of the Internet and the Web Insight on Technology Spider Webs Bow Ties ScaleFree Networks and the Deep Web Origins and Growth of Ecommerce Technology and Ecommerce in Perspective Potential Limitations on the Growth of B2C Ecommerce ommerce A Brief History Ecommerce 199572000 Innovation Insight on Business The Internet Investment Rollercoaster Ecommerce 200172006 C quot 39 Ecommerce 20067Present Reinvention Assessing Ecommerce Successes Surprises and Failures Predictions for the Future More Surprises 13 Understanding Ecommerce Organizing Themes Technology Infrastructure Business Basic Concepm Society Taming the Juggernaut Insight on Society Privacy Online DoesAnybody Care Academic Disciplines Concerned with Ecommerce 14 Case Study InternetPiracy The Pirate Bay 15 Review Key Concepts Questions Proj ecm Web Site Resources Key Points Copyright 2010 Pearson Education Inc Publishing as Prentice Hall i Formatted French France Ecommerce is the fastest growing retail service and entertainment channel Although relatively flat in 2009 growth is expected to resume in 2010 There are thousands of job opportunities in ecommerce as traditional merchant finns move onto the Web Much of the first chapter is aimed at getting some basic definitions straight The ecommerce field is filled with language some would say lingo that many might find confusing We distinguish between ecommerce and ebusiness to set the focus clearly on commercial transactions over the Internet It s also important for students to understand the differences between the various types of ecommerce such as B2C and B2B A short preview of this topic is covered on pages 20 through 22 Chapter 2 Landon Objectives Identify the key componenm of ecommerce business models Describe the major B2C business models Describe the major B2B business models Describe business models in other emerging areas of ecommerce Explain the key business concepm and strategies applicable to ecommerce Key Terms business model p 66 business plan p 66 ecommerce business model p 66 value proposition p 67 revenue model p 67 advertising revenue model p 68 subscription revenue model p 68 transaction fee revenue model p 68 sales revenue model p 6 affiliate revenue model p 69 market opportunity p 69 market nace p 69 competitive environment p 70 competitive advantage p 71 asymmetry p 72 firstmover advantage p 72 complementary resources p 72 unfair competitive advantage p 72 perfect market p 72 leverage p 73 market strategy p 73 Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Formatted English United States organizational development p 73 management team p 74 portal p 78 etailer p 80 barriers to entry p 80 intellectual property p 84 content provider p 84 transaction broker p 85 market creator p 86 service provider p 87 community provider p 88 edistributor p 90 eprocurement firm p 91 B2B service provider p 91 application service provider ASP p 91 scale economies p 91 exchange 91 industry consortia p 92 private industrial networks p 92 industry structure p 98 industry structural analysis p 100 value chain p 100 firm value chain p 104 value web 105 business strategy p 106 profit p 106 differentiation p 106 commoditization p 106 Brief Outline Tweet Tweet What s Your BusinessModel 21 Ecommerce Business Models Introduction Eight Key Elements of a Business Model Categorizing Ecommerce Business Models Some Difficulties Insight on Business Online Grocers Finding and Executing theRight Mo e 22 Major BusinesstoConsumer B2C Business Models Portal Insight on Technology Can Bing Bong Google Etailer Content Provider Trans action Broker Market Creator Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Service Provider Community Provider 23 Major BusinesstoBusiness B2B Business Models Edistributor Eprocurement Exchanges Industry Consortia Private Industrial Networks 24 Business Models in Emerging Ecommerce Areas ConsumertoConsumer C2C Business Models PeertoPeer P2P Business Models Mcommerce Business Mode 5 Insight on Society Where R U Ecommerce Enablers The Gold Rush Model 25 How the Internet and the Web Change Business Strategy Structure and Process Industry Structure Industry Value Chains Firm Value Chains Firm Value Webs Business Strategy 26 Case Study Pricelinecom and the Searchfor a BusinessModel that Works 27 Review Key Concepts Questions Proj ecm Web Site Resources Key Points Business Models One of the most abused phrases in the ecommerce lexicon is business model Put simply a business model is a plan for making money Like all models a business model has several componenm We have described eight components customer value proposition revenue model market opportunity competitive environment competitive advantage market strategy 39 39 p an team Studenm need to have a good understanding of each of these elements Copyright 2010 Pearson Education Inc Publishing as Prentice Hall E commerce Business Models With several million commercial Web sites to consider there are a great variety of ecommerce business models Many finns pursue multiple business models at once Nevertheless there clearly are dominant patterns to all this variety on the Web We describe seven different and typical ecommerce business models in Table 23 portals etailers content providers transaction brokers market creators service providers and community providers including social networking sites Students should be able to describe how each of these models typically expects to generate revenue and earn profit Insight on Technology Can BingBong Google highlights the importance of search as a major Webbased industry that is driven in part by advances in technology It examines how Google achieved its dominant position in that market and its strategy for the future including is effort to outinvent the competition in an effort to maintain its dominance and the challenge Microso is attempting to make with Bing to that dominance 323 Models Whereas B2C commerce is measured in hundreds of millions of dollars B2B is measured in trillions of dollars B2B commerce is several orders of magnitude larger than B2C commerce We describe the major generic types of B2B commerce in Table 24 Net marketplaces such as edistributors eprocurement companies exchanges and industry consortia and private industrial networks Each of these models has a distinct revenue mode Insight on Business Online Grocers Finding andExecuting the Right Model describes the online delivery businesses focusing primarily on F reshDirect an online grocer that is succeeding in the New York City market Although most early online grocers failed FreshDirect and others have discovered how to make the idea a practical business model that is profitable The trick is execution and scaling the business to the marketplace lust as the Internet has to conform to the laws of physics so does ecommerce have to conform to the laws of commerce39 one of which is that to stay in business you need to take in more money than you spend Emerging ECommerce Models New technologies create new opportunities for generating revenue and also often create new social issues The text outlines three emerging ecommerce models 626 such as auctions P2P business models that focus on file sharing and m commerce mobile commerce It is interesting to note that eBay appears both as a market creator in Table 23 and as an enabler ofCZCcommerce in Table 25 How can this be What s the difference In one instance we are looking at eBay as a business in its own right market creator Table 23 while also recognizing that many people use eBay to start their own businesses selling goods to other consumers 626 model in Table 25 We discuss several privacy concerns raised by new applications of wireless Copyright 2010 Pearson Education Inc Publishing as Prentice Hall technologies used in mcommerce in the Insight on Society case Where R U H ow the Internet Changes Business The Internet has the potential for changing business in three major areas Industry Structure Industry Value Chain Firm Value Chain The Internet can change industry structure by introducing substitute producm increasing the bargaining power of suppliers or of consumers and buyers and by changing existing barriers to entry The Internet can change industry value chains insofar as suppliers manufacturers distributors retailers and customers can interact in new and different ways For instance the Priceline case study at the end of the chapter explores how Internetbased distributors such as Priceljne have greatly weakened the earnings of traditional retail travel agencies Firm value chains can be directly affected by ecommerce through its potential impact on how the business performs various business processes such as warehousing manufacturing sales and customer support For instance Amazon uses the Internet to provide consumers with access to a much larger inventory of books than traditional retailers and to accomplish order entry provide postsales support and offer ordering from is suppliers Finally ecommerce and the Internet can change business strategies by allowing the firm to develop new ways of differentiating its products in the marketplace lowering costs or changing the scope of its operations For instance Dell uses ecommerce as a way o achieving lower costs in the PC business and has created an entirely new way of organizing largescale production build to order Chapter 3 Hurt Review 37 What is internal control Why is internal control important in organizations Internal control is the glue which holds the accounting information system together It is a collection of policies and procedures that can make organizations more effective and more efficient while also promoting the integrity of their financial statements A strong system of internal control can make auditing less time consuming and costly39 further strong internal Copyright 2010 Pearson Education Inc Publishing as Prentice Hall controls can help organizations prevent detect and correct instances of fraud Fr What are thefour basic purposes of internal control Give an example ofeach one 1 Safeguard asses For example most organizations keep cash in the bank rather than in the office imelf 2 Promote operating efficiency For example a company might coordinate all supplies purchases through a single purchasing agent 3 Ensure financial statement reliability For example changes in accounting policy could require the approval of the audit committee of the board of directors 4 Encourage compliance with management directives For example an organization could hold weekly staff meetings to keep employees apprised of policy changes c List and discussfour broad categories of organizational risk exposures For each broad category suggest two examples The Brown taxonomy discussed in the text identifies the following financial risk eg insufficient cash on hand to meet payroll needs operational risk eg computer viruses strategic risk eg trying to compete successfully without a clear mission statement and hazard risk eg embezzlement by the CEO What is COSO Why is the work of COSO important in internal control COSO stands for Committee of Sponsoring Organizations it comprises five groups American Accounting Association Financial Executives International Institute of Management Accountants Institute of Internal Auditors and American Institute of CPAs CO SO has published two integrated frameworks that suggest specific ways to manage risk Enterprise Risk Management and achieve strong internal control Internal Control P Chapter 9 Hurt a What is XBRL How is it related to XML XBRL is an acronym for the eXtensible Business Reporting Language it is one example of XML the eXtensible Markup Language XBRL is to financial information what HTML is to web pages Using XBRL tags financial information can be rendered platform and software independent Caquot V Define the following terms related to XBRL speci cation taxonomy instance document Specification describes the relationship between XBRL and XML that is XBRL is a specification specific example of XML A taxonomy in general is a way of organizing knowledge XBRL comprises several taxonomies sew of tags often based on industry groups An instance document is a properlytagged set of information Copyright 2010 Pearson Education Inc Publishing as Prentice Hall C How can XBRL ben e t organizations XBRL makes the preparation of financial statemenm much easier Even if they have different hardware amp software configurations organizations can easily share financial informationi particularly advantageous for consolidations XBRL also facilitates realtime financial reporting Will most accountants need to learn to write code in XBRL I f not how can they create XBRLtagged documents Most accountants will not have to learn to write XBRL codeijust as most people don t need to learn HTML to construct a web page Tagging software such as Dragon Tag is available to automate the tagging process What isXBRL How does itfacilitate the exchange offinancial information XBRL is a computer language designed to facilitate the exchange of financial information between and within organizations XBRL facilitates the exchange by creating a common set of tags that describe financial information the tags can be extended as the need arises i V ii How are accountants likely to be involved with XBRL Accountants will probably have to incorporate XBRL tagging in the financial statement preparation process they may also be called upon to audit accounting information systems that include XBRLtagged information Copyright 2010 Pearson Education Inc Publishing as Prentice Hall Copyright 2010 Pealson Education Inc Publishing as Prentice Hall


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.