Meaning of a Sentence Free Essay Example, 3000 words

It is quite important to note that prefix is added to the beginning of a word, a suffix at the end, an infix is inserted into other morphemes and circumfix are attached to another morpheme. The use of a prefix or a suffix is part of the word morphology. For instance, the use of the prefixes 'un-' indicates negativity. Such as in the word unavoidable, the recipient will already process the speaker means not avoidable. Also, the use of '-ify' in a word like iconify illustrates to make something into. This may influence the meaning of a sentence. Certain morphemes indicate singularity, plurality and meaning. The word 'cats implies that the speaker means more than one cat. This indicates plurality and the recipient already infers the speaker means more than one cat. Lexicon is certain words or specific phrases that are present in the mind of the speaker. These include phrases such as idioms. The use of lexicon allows was a speaker to construct and convey a sentence with its appropri ate meaning. Lexical words are new words, such as, nouns, verbs, adjectives and adverbs that illustrate the content. We will write a custom essay sample on Meaning of a Sentence or any topic specifically for you Only $17.96 $11.86/page Phonology is the study of phonemes. The way, in which sentences have their meaning conveyed partly in how they are spoken, this is the phonetics. The tone may be used by the recipient to distinguish between a declarative sentence, a question, a threat or a request. Phonetics influence speech perception.

Australian Taxation Law Assignment Example

Essays on Australian Taxation Law Assignment The paper "Australian Taxation Law" is a worthy example of an assignment on finance and accounting.Transaction One: Receipt of $6,000 per month as scholarship amountsThis is a product of the half of the income and other entitlements received by Susan as part of her agreement with the company. Since the company is paying for Susan’s MBA, the amount received by Susan will be subject to income tax as it is described under the Section 51-35 of ITAA 1997 that any payment received by the individual from a person or authority under the condition that the individual will continue to be an employee of the person or authority will be included in the income tax. Although this is scholarship, it is received by means of the income and therefore will be treated as income for tax purposes. The scholarship  amount is an assessable income under section 15-2 of ITAA 1997 as the scholarship amount is derived from her income. This is an assessable income because the definition under this sectio n holds that assessable income will include all the gratuities, allowances, benefits, bonuses, compensation or premiums that are provided to an employee in relation to any services rendered by them whether directly or indirectly.   Also, the amount of scholarship received is going to be a deduction under self-education expenses under the sections 8-1, 8-5, 8-10 of the ITAA 1997  Transaction Two: Receipt of $2,200 for textbooksSince Susan paid for the textbooks including the GST, the amount is not considered as assessable income and is not an exempt income as it includes increasing adjustment to the acquisition under Section 17.5 of ITAA 1997.  Transaction Three: Receipt of $280,000 for the home loan plus interest of $11,000The acquisition of home or property is a CGT asset under Section 108-5 and according to the definition of property under Section 108-5 (1) (a). The home is a personal use asset under Sections 108-20, 108-25, 108-30 and 118-10(3). No capital gain or loss woul d be recorded as the home property is not sold under any CGT Event. As this is personal property, it allows for deductions and so does the interest payment. Rules of acquisition also apply under section 109-5 and 109-10. The interest is a deductible amount under section 8-1 of ITAA 1997 as well as under section 25-85 of ITAA 1997. Since interest is an expense for Susan, she can use the expense apportionment under section 8-1 of ITAA 1997 to receive a credit for it. In acquiring the house, no isolated transactions doctrine from FCT v The Myer Emporium Ltd does not apply here.  Ownership of Shares and DividendsUnder the s6 (1) and s.995-1, the dividends are those values that the company distributes to its shareholders. Dividends received by Susan are assessable income under Section 44 (1) and Section 47 of ITAA 1936 as under these sections dividends are considered income in relation to ordinary concepts. The ownership of shares is considered CGT assets under Section 108-5. According to section 70-35, the value of any trading stock held within the income year has to be included in calculating the assessable income and deductions.

Foreigh Currency Risk Test Free Essays

FOREIGN CURRENCY RISK Q1. Jack is a UK based car exporter who exports luxury cars and has a competitor in Germany; he has recently seen a change in foreign currency that pound ( £) of UK has strengthened against euro (â‚ ¬) of Germany. What is the type of risk does Jack face in his business? (MCQ) Credit Risk Translation Risk Economic Risk Transaction Risk(2 marks) Q2. We will write a custom essay sample on Foreigh Currency Risk Test or any similar topic only for you Order Now Yarn Co is multinational business wants its foreign subsidiary financial statements. They are making exchange losses when the accounting results of its foreign subsidiary are translated into the home currency. Which type of currency risk does Yarn Co face? (MCQ) Netting off Risk Translation Risk Economic Risk Hedging Risk(2 marks) Q3. Saito Co, a USA based fish exporter has competition with Sakkara Co based in Bangladesh. He believes he faces an economic risk in the business. What type of impact does it have on Saito Co? (MCQ) Direct Impact Indirect Impact Political Impact Economic Impact(2 marks) Q4. The current spot rate of UK ( £) to USA ($) is  £3:$1.5. The interest rates per annum are UK 5% USA 9%. What will be the two-month forward rate (to the nearest two decimal places)? (FIB) £ :$1(2 marks) Q5. The current spot rate of UK ( £) is  £3. The inflation rate per annum of UK is 3% the expected future six-month spot rate is  £3.06. Calculate the foreign annual inflation rate? (FIB)%(2 marks) Q6. Which of the following statements relates to International Fisher Effect? (MCQ) The exchange rates of countries depending on inflation rates The exchange rates of countries depending on interest rates Prices are same to different customers in an economy Nominal interest rate differentials between countries provide an unbiased predictor of future changes in spot exchange rates.(2 marks) Q7. Which of the following differences will result in an Expectation Theory? (MRQ) The difference in Inflation Rates Difference between Spot Forward Rates The difference of Interest Rates Difference between Spot Future Rates(2 marks) Q8. Select the appropriate theory with the following statements. (PD)Depreciation of forwarding rates will be due to high-interest rates Differences in nominal rates due inflation rates A commodity is priced same in every country The forward rate is a fair predictor of the spot rate in the future EXPECTATION THEORY PURCHASING POWER PARITY THEORY INTERNATIONAL FISHER EFFECT INTEREST RATE PARITY THEORY(2 marks) Q9. Patio Co. operates in the USA. They will be receiving a payment of  £2,500 from customers in four months’ time. Calculate Patio Co.’s receipts in four months’ time? Use the following rates. (MCQ)Spot Rate  £1.4/$ –  £1.6/$4 Month Forward Rate  £1.8/$ –  £2.0/$ $1,786 $1,563 $1,389 $1,250(2 marks) Q10. Fray Co is a USA based company ; imports Robots from China. The usual credit period is three months. Fray Co has to pay  ¥60,000. Calculate the loss/gain of the payment on forwarding contract? (MCQ)Spot Rate  ¥1.321/$ –  ¥1.521/$3 Month Forward Rate  ¥1.654/$ –  ¥1.854/$ $7,085 (Loss) $9,144 (Loss) $9,144 (Gain) $7,085 (Gain)(2 marks) Q11. PXG Co, a UK based company has made $3,600 sale to its USA customer on credit. The current  £/$ exchange rate is  £6.4/$12.8. It is expected that UK  £ will strengthen by 15%, by the time USA customer pays. Calculate the receipts in  £? (MCQ)  £244.57  £281.25  £489.13  £562.5(2 marks) Q12. The dollar is quoted at a $0.067 premium for the forward rate. The current exchange rate is $/ ¥ 1.0005 +/- 0.0045. What will a $4,900 payment convert at forwarding rate? (MCQ)  ¥4,876  ¥4,920  ¥5,224  ¥5,274(2 marks) Q13. A UK based company Bib Co will receive a foreign payment of $2,000 in four months’ time. The spot rate is $1.1/ £ – $1.4/ £. Calculate the income in four months’ time using money market hedging? (MCQ) Borrow DepositDollar ($) 4% 5%Pounds ( £) 3% 2%  £1,414.4  £1,419.4  £1,800  £1,807(2 marks)This information is used for Q14, Q15 ; Q14.A USA based company has to make a payment of  £95,000 in nine months’ time. The spot rate is  £2.2/$ –  £2.5/$. Following details are: Borrow DepositDollar ($) 7% 5%Pounds ( £) 5% 3%Q14. Calculate the foreign payment using money market hedging? (MCQ) $37,164 $42,232 $43,816 $44,449(2 marks) Q15. Calculate the foreign payment if the nine-month forward rate is  £2.37/$ –  £2.71/$? (FIB)$ (2 marks) Q16. Calculate the gain/loss for the company for not leading the payment? (MCQ) $4,365 (Gain) $4,365 (Loss) $3,816 (Loss) $3,816 (Gain)(2 marks) Q17. Following statements relate to Forwarding contracts. (HA)An immediate binding contract TRUE FALSEThe forward rate is variable in nature TRUE FALSEThe timing of the contract is unknown TRUE FALSE(2 marks) Q18. A company wants to reduce its transaction risks when conducting business with foreign receivables/payables. Following statements are said by the directors during this years’ AGM. Select the appropriate statements to reduce the risk. (MRQ) â€Å"The company should hold back its payments for few months†, this technique is Leading â€Å"The company should continue as normal† â€Å"I have some friends offshore who work in a bank, I may able to arrange a foreign account for the company† said by a director â€Å"The company should deal in the foreign currency only† (2 marks) Q19. Juab Co is a manufacturing company ; has a foreign supplier who supplies raw materials. Recently the supplier has now become a customer as well, who purchases Juab Co.’s finished products and sells in his respective country. Which technique of reducing risk is applicable for Juab Co? (MCQ) Money market contract Leading Lagging Forward market hedging Matching Netting(2 marks) Q20. Which of the following statements are true in relation to futures? (MRQ) Currency futures are standard contracts A high premium is paid initially Futures are available in all currencies offered by the bank Future contracts are binding (2 marks) Q21. A company wants to hedge itself from any currency risk. They have decided to hedge themselves using currency futures. They have to make a payment in May of $36,000. The futures have a contract size of $15,000. Which of the following futures will they select? (MCQ) Buy three futures on March Sell two futures of March Buy two futures of June Buy three futures of September(2 marks) Q22. Select the appropriate option in relation to futures. (HA) Transaction cost is lowest ADVANTAGE DISADVANTAGEContracts are limited to some currencies ADVANTAGE DISADVANTAGEThe exact date does not have to be known ADVANTAGE DISADVANTAGE(2 marks) Q23. Picots Co is UK based company which has a lot of foreign customers. It will be receiving a payment from USA based customer of $500,000 in five months. The company has been advised to use derivatives to hedge themselves against any currency risk. If they opt for currency options which of the following are correct? (MCQ) Buying a USA $ call option in the UK Buying a USA $ put option in the UK Buying a UK  £ call option in the USA Buying a UK  £ put option in the USA (2 marks) Q24. Which of the following statements relate to currency options? (MRQ) In future the market becomes favorable and the company will face a loss because it is bound to the contract They are negotiated Cannot be traded in all currencies Easily arranged Flexible (2 marks) Q25. Which of the following is incorrect for swaps? (MCQ) It is negotiated between two parties having their own spot rate It has a nominal cost It is an over the counter deal It has multiple markets (2 marks) Q26. Which of the following has a refundable cost? (MCQ) Currency Futures Forward Contracts Currency Options Currency Swaps(2 marks) FOREIGN CURRENCY RISK (ANSWERS) Q1. CEconomic risk is the variation in the value of the business due to unexpected changes in exchange rates. This is an indirect impact on Jacks business. Q2. BThey are making exchange losses when the accounting results of its foreign subsidiary are translated into the home currency. This is an indication of Translation Risk. Q3. AIt is a direct impact on Saito Co as the USA being home currency strengthens then foreign competitors Sakkara Co in Bangladesh is able to gain sales at your expense because your fish have become more expensive in the eyes of customers both abroad and at home. Q4.  £3.02Interest rate parity theory = 3 Ãâ€" (1+(9% Ãâ€" 2/12))/(1+(5% Ãâ€"2/12)) =  £3.02 Q5. 7%Purchasing power parity theory = 3 Ãâ€" (1+(x% Ãâ€" 6/12))/(1+(3% Ãâ€"6/12)) =  £3.06X% = 7% Q6. D The exchange rates of countries depending on inflation rates (Purchasing Power Parity Theory) The exchange rates of countries depending on interest rates (Interest Rate Parity Theory) Prices are same to different customers in an economy. The law of one price. (Purchasing Power Parity Theory) Nominal interest rate differentials between countries provide an unbiased predictor of future changes in spot exchange rates. (International Fisher Effect) Q7. When these two will become equal, Expectation Theory arises. Difference between Spot Forward Rates Difference between Spot Future Rates Q8.Depreciation of forwarding rates will be due to high-interest rates INTEREST RATE PARITY THEORY Differences in nominal rates due to inflation rates INTERNATIONAL FISHER EFFECTA commodity is priced same in every country PURCHASING POWER PARITY THEORY The forward rate is a fair predictor of the spot rate in the future EXPECTATION THEORY Q9. DReceipts =  £2,500 à · 2.0 = $1,250 Q10.Payment (Forward) =  ¥60,000 à · 1.654 = $36,276Payment (Spot) =  ¥60,000 à · 1.321 = $45,420Gain = $9,144 Q11. AFuture Rate = $12.8 Ãâ€" 115% = $14.72Receipts =  £3,600 à · 14.72 = $244.57 Q12. DThe Spot rate = $0.996/ ¥ – $1.005/ ¥ -/+ 0.0045The dollar is at a premium so subtract it as if dollar strengthens then yen will weaken in the forwards market. The new Spot rate = $0.929/ ¥ – $0.938/ ¥ – 0.067Payment = $4,900 à · 0.929 =  ¥5,274 Q13. BBorrow Foreign Currency = $2,000 à · [1 + (4% Ãâ€" 4/12)] = $1,974Convert Foreign to Local = $1,974 à · 1.4 =  £1,410Deposit (Interest) = (1,410 Ãâ€" 2% Ãâ€" 4/12) =  £9.4Total Receipts =  £1,410 +  £9.4 =  £1,419.4 Q14. DDeposit Foreign Currency =  £95,000 à · [1 + (3% Ãâ€" 9/12)] =  £92,910Convert Foreign to Local =  £92,910 à · 2.2 = $42,232Deposit (Interest) = ($42,232 Ãâ€" 7% Ãâ€" 9/12) = $2,217Total Payments = $42,232 + $2,217 = $44,449 Q15. $40,084Payments =  £95,000 à · 2.37 = $40,084 Q16. B Q17. An immediate binding contract TRUE The forward rate is variable in nature FALSEThe timing of the contract is unknown FALSE Q18. â€Å"The company should hold back its payments for few months†, this technique is Lagging (Incorrect) â€Å"The company should continue as normal† This refers the company should take no action (Correct) â€Å"I have some friends offshore who work in a bank, I may able to arrange a foreign account for the company† said by a director. This statement indicates opening a foreign bank account. (Correct) â€Å"The company should deal in the foreign currency only† The company could deal in home currency rather in foreign currency (Incorrect) Q19. DThis technique attempts to match the same foreign currency receipt payments due at the same time. The netting of the intra debit credit balances saving transaction cost reducing risk. Q20. Currency futures are standard contracts, fixed limits specified (True) A high premium is paid initially, this is applicable in options (False) Futures are available in all currencies offered by the bank, Only in few currencies (False) Future contracts are binding, they have to be closed (True) Q21. CThe Futures can be bought or sold only four times a year which are March, June, September December. Future contracts can be signed relating to a month after the date of receipt. They will buy two futures each of $15,000 and the remaining $6,000 can be hedged using other techniques. (E.g. forward contracts)Q22. Transaction cost is lowest ADVANTAGE Contracts are limited to some currencies DISADVANTAGE The exact date does not have to be known ADVANTAGE Q23. BPicots Co will want to sell the USA $ when they receive the payment which is why they will use USA $ put (sell) option bought in the UK. Q24. In future the market becomes favorable and the company will face a loss because it is bound to the contract, this statement relates to future contracts They are negotiated, this statement relates to options (Correct) Cannot be traded in all currencies, it is a disadvantage hence this statement relates to options (Correct) Easily arranged Flexible, this statement relates to swaps Q25. DIt has no markets; it is a tailor-made an agreement between two parties.Q26. A Currency Futures, An initial margin cost which is refundable Forward Contracts, has a transaction cost Currency Options, A non-refundable premium cost Currency Swaps, No initial cost How to cite Foreigh Currency Risk Test, Papers

TESCO Case Study Analysis and Evaluation of E-Business Strategy

Question: a. Analysis and critical evaluation of current e-business strategy and activities. (There must already be some significant e-business activity.) You decide how to carry out the appraisal, using your own selection or those techniques taught on the module.b. Proposal and justification for a systems architecture to support e-business. (The organisation must have little or no significant e-business activity now). Summarise the applications that are needed. Outline their interfaces with each other, and any necessary standards. Explain how the applications differ from current systems. Identify the benefits and how they will be measured.c. Migration plan to develop e-business capability from scratch. (The organisation must have little or no significant e-business activity now.) Identify impacts on the organisation and changes to infrastructure. Identify major benefits, with suggestions for how to measure them. Identify major risks, with strategies to avoid or minimise them.d. High level des ign for a completely new e-business application. (Must be relevant to the needs of the organisation and not closely based on any existing system.) Explain the need and justify the design decisions in a brief report. Design to include systems architecture, functional requirements, technical interface requirements, data storage requirements and sample user interfaces. May consist mainly of diagrams and models.e.Proposal and justification for an e-business strategy. (The organisation must have little or no significant e-business activity now.) Outline the strategy and summarise the main changes expected in the organisation. Implementation plan should show how the changes will be achieved. Identify the benefits and explain how they can be measured. Answer: Over the period, e-business strategy has become one of the conclusive aspects of successful operation. In the cutthroat market place, organizations, irrespective of the field in which it operates emphasized on e-business strategy to gain competitive advantage. If the retail industry has been taken into consideration in this context, then it can be found that they are improving their productivity level with the frequent use of this strategy. However, there exists little evidence that has shown a positive association between effectiveness of e-business strategy and firm performance. Therefore, this specific study has aimed to execute a study with respect to the retail giant TESCO. The research question which will be used for this study is mentioned as below: Does the e-business strategies innovate service operations of Tesco and how it increase the profit level of the organization? This research question is designed to measure the effectiveness of e-business strategies adopted by Tesco and its impacts on the organizational profit. E-business strategies comprise of complex technologies and tools, needs a reliable website and many others which require proper maintenance. In addition, analysis and illustration of above question will help to ensure the fact that customers of Tesco are satisfied with the provided e-services or not. There is a hidden fact in the above mentioned question such as whether the e-commerce strategy is technically economically feasible or not. Security is a major concept in e-business strategy to provide reliable and secure services to the customers. The organization should provide a user-friendly website, and that should be strengthened with advanced security applications such as encryption technique, the firewall application, and many others. In addition, personal and confidential information of the customers should be protected to mainta in organizational reputation intact. This will help to identify the loopholes of the organization so that improvement areas can be identified. Higher customer satisfaction will help to maximize the annual profit of the organization which is very crucial for organizational growth. Research Methodology Research methodology helps to solve above mentioned research question with proper evaluation. In order to do that, the inductive approach will be followed including secondary data collection and quantitative data analysis technique. Inductive approach is useful to select appropriate research tool and technique that can help to collect data from reliable sources (Al 2013). Furthermore, this research approach also helps to analyze data with proper data analysis technique and for this, that is quantitative technique. Quantitative analysis technique records data from a large number of participants to add clear and better descriptions related to the selected topic. Moreover, quantitative data analysis technique uses statistical facts and numerical data to extract useful information from the analysis of e-commerce strategies used in retail business applications. This study will be conducted with Tesco. Five staffs and 48 customers of this organization are selected, and structured questionn aire will be distributed amongst those respondents. The responses will be measured through Likert scale analysis. Likert scale analysis measures the responses by giving the rank in between 1 to 5, where one signifies strongly agree and five signify strongly disagree (Eaton 2013). By the use of test-retest method validity of contents and facts can be checked. The entire data analysis will be illustrated in the following section of the report which will help to draw an accurate conclusion at the end of the work. Management Report Introduction Business running on the e-commerce platform is the key aspect to change the economy of the organization with positive growth (Mohapatra 2013). E-business has evolved the way of thinking of the business owners and offer new opportunities to achieve competitive advantages. This report is presented on one of the leading retail industries of the world, namely TESCO to analyze the impacts of e-commerce strategies on the business performance of it. Integration of e-business strategies not only enhances the productivity but also encouraged higher customer satisfaction. Analysis of e-business strategies on Tesco is done to measure whether the integration of e-strategies into the business platform is effective or not. Background of the Company Tesco Plc is general merchandise and grocery retailer has headquartered in England, UK. It is the third largest retail companies in the world regarding profits and second largest in the world regarding annual revenues. Figure 1: Official Logo of Tesco (Source: Tesco.com. 2016) This organization has a simple vision, and that is to provide the best quality products at reasonable cost to the customers. In UK, Tesco serves through 66 operators every second, so the major goal of the organization is to ensure that each customer experiences best quality service on each visit. According to the survey, Tesco earned $116 billion (72 billion pounds) by operating through 6,243 stores in almost 13 countries worldwide (Tesco.com. 2016). However, the competitors such as Asda (owned by Wal-Mart) have an annual sale which is eight times larger than Tesco. In addition, other competitors like Sainsbury also hold in the second position in this global retail marketing world. Tesco had almost 27% market share and dominated both the online and offline grocery market, but the presence of these grocery Giants force this organization to expand with new and unique opportunities. Therefore, Tesco.com launched their first e-commerce website Tesco Direct (Tesco.com. 2016). On this plat form, more than 8000 products are available from sofas, beds to fashionable clothing, electronics and may be more. Analysis and Evaluation of Present E-business Strategy of TESCO Significance of E-Commerce Strategies Figure 2: Conceptual Framework of E-Business Strategy (Source: Solaymani, Sohaili and Yazdinejad 2012, pp-255) Mohapatra (2013) opined that all the information related to products, its features, prices or any discounts made in it is easily transmitted through EDI system which has significant advantages such as faster transmission of data with higher accuracy, complete information about each transaction and enhances the flow of communication inside the organization. As the information are transmitted through an electronic system, ordering of products and services have become easier and economically feasible. The major advantage of adopting e-business strategies is that it can streamline the procurement process and standardize trading procedures through advanced computerization (Fernie and Sparks 2014). Errors and delays in the purchase process are reduced at larger extent. In addition, buying organizations can compare the information of products provided by various organizations on the e-commerce platform which proves as an effective distribution system to match customers requirements satisfac torily. Higher adoption of e-business strategies, electronic information sharing and enhanced web capabilities improve the decision making process. Analysis of E-Business Strategy of Tesco According to Colla and Lapoule (2012), e-business strategies handle the business operations of networked digital systems. Organizational authorities of Tesco use the documentation and codification activities in a digital form. In addition, electronic networks help to manage the flow of information to provide unique quality business services. It helps to adapt new technologies and tools that can change the existing service and business model in a unique way. Utilization of e-commerce technologies provides potential benefits to Tesco such as can reduce transaction as well as operational cost, increase the visibility, improve customer service and enables market expansion. Ghezzi, Mangiaracina and Perego (2012) identified that the primary reason for becoming world's top leading retailer organization is that effective integration of e-commerce strategies with business applications. Figure 3: Major Components of E-Commerce (Source: Lapoule and Colla 2016, pp-250) This e-commerce platform helps to establish direct links with the customers by providing new kinds of online services and offers new services. This kind of strong relationship with the customers lowers operational cost, develops loyalty and provides valuable and authentic information about each product to the customers. Magnusson and Sjoberg (2014) acknowledged that by providing a user-friendly website, Tesco allows the users to view products and its detailed features in a colored electronic catalog and can fill out the order form by simply putting the credit card details. The emergence of computer including the implementation of information management system in these e-business strategies has significant positive impacts on industrial purchasing. Furthermore, online facilities of e-commerce strategies not only help to locate resources properly but also locate products and services that match customized requirements within fixed price range (Hirt and Willmott 2014). Three primary ope rations conducted over the e-business strategy in Tesco are as follows Production Process: This includes procurement and logistic operations, replenishment and ordering of products, processing of transactions and production control. The business sellers use desktop publishing web software development tools to create commerce enabled contents so that products can flow from system to transact for further operations (Carrillo, Vakharia and Wang 2014). The data warehouse system including database application gathers all the personal and financial information of the customers so that products are shipped and delivered in time. Customer Focused Process: This includes marketing and promotional activities of products over the internet. Tesco also promotes their brands on social media platforms such as Facebook, Twitter which helps to draw more consumers towards the organization (Hubner, Kuhn and Wollenburg 2016). Moreover, the employees present in the retail analytic operation searches the browsing history of consumers to analyze their buying patterns and needs. This helps to meet customer requirements as well as organizational needs properly. CLUBCARD of Tesco Tesco has integrated one of the best functional strategies in this e-commerce platform by launching CLUBCARD for their potential customers. Since 1995, the introduction of CLUBCARD helps to track customers data from personal details to buying patterns (Tesco.com. 2016). Figure 4: CLUBCARD of Tesco (Source: Tesco.com. 2016) In order to meet the needs, an organization established a predictive model with the use of warehouse technology and logistic system. This predictive model allows the stock controllers to gain access to sales uplift forecast. The customers who use Tesco services, CLUBCARD holders gain 1 point for every dollar they spend to buy products. This strategy makes the organization leading retailer organization of UK. Benefits to Suppliers, Buyers, and Customers Key partners Key activities Key resources Value proposition Customer relationships Channels Cost structure Revenue streams Businesses at a local and regional level Suppliers Associations Local joint ventures Selling and buying consumer goods Efficient distribution system Collect feedback Analyzing customers demands Website Accounts on digital platform Clubcard IT Infrastructure Logistics and warehousing 24/7 shopping experience Safe online shopping Home delivery Personalized shopping for cardholders Clubcard retains customer loyalty Attract more customers with enhanced quality products and services Stores Dedicated website of Tesco Social media Mobile application Staff IT infrastructure Capital expenditure Sales of products Home delivery system Table 1: Online Business Model of Tesco (Source: Fernie and Sparks 2014, pp-150) By analyzing the online business model of Tesco, it can be stated that the e-business strategies of this organization help to earn maximum profits by benefiting the suppliers, buyers, and customers. Suppliers who help to meet business needs and requirements properly can be provided real time data and information related to products and service, helps to enhance the decision making process. Economic interactive findings allow searching for similar products in other organization so that bargaining becomes easier (Solaymani, Sohaili and Yazdinejad 2012). The suppliers are allowed to search for particular products and try to provide relevant information to the buyers in order to make impactful decisions. Using the flexible and reliable e-commerce platform of Tesco, buyers can also view the product ranges, its features from similar organizations and examines the price request modifications of the ordered products. The e-business platform provides products' information through buying guides or electronic brochures which are an effective marketing channel to reach to the customers globally (Huang and Benyoucef 2013). Use of electronic data interchange system allows the buyers to access information of goods and services from anywhere in the world. Mass customization strategy of Tesco provides the opportunities to create specific products for individual customers as per their needs and requirements. In addition, this e-commerce platform creates direct links between the suppliers and customers which allow the customers as well as suppliers to gather detailed data on each others' needs, buying patterns and much other relevant information. 24/7 online support is very useful to meet customers demands by optimizing their queries instantly (Shemi and Proctor 2013). Customers are also provided various options to compare and choose best products at reasonable cost. All these advancements help to maintain customers loyalty as well as can attract new customers towards the organization. Challenges Faced by the Organization The potential barriers faced by Tesco while carrying out the e-business strategies are summarized as follows Technical Issues: Security is the major concern on an e-commerce platform. Unfortunately, the absence of proper security applications such as firewall, intrusion detection system, encryption technique allows the unauthorized users to hack confidential information of the customers stored in the database and organizational crucial information as well (Chiejina and Olamide 2014). DDoS (Distributed Denial of Service Attack), SQL injection attack blocks the distribution channel by inserting malicious viruses in it. These types of attacks halt the legitimate users to use the online services provided by the organization. Not only this, but hackers also steal the confidential information of the customers such as credit card and debit card details which are a greater threat to organizational reputation. Societal Issues: The IT infrastructure needed for e-commerce implementation is not cost effective at all. Advanced technologies needed to run the e-commerce operations smoothly increase the operational as well as business cost (Afshar Jahanshahi, Zhang and Brem 2013). In addition, skilled personalities required to handle this new system with greater reliability increased overhead cost of Tesco. As a result, customers issues are overlooked and not properly solved. Recommendations By evaluating the impacts of e-business challenges faced by Tesco, following recommendations are built up Security Enhancements: The organization should adopt advanced security application tools such as firewall, intrusion detection system and encryption technique to make the organizational and customers' information protected from the unauthorized users. These security tools should be placed in between e-commerce server and internet so that each incoming and outgoing data packets of the network system can be monitored before entering into the main system. In addition, the digital signature technique should be used protect the system from malicious attacks. Training and Education: Inductive training session is needed for the employees of the organization to make them understand about new e-business strategies and its uses to gain higher customer attraction and satisfaction. This will help the employees to optimize customers problems with effective ticketing solutions. Central Technology and System: Without using different systems for each technology, a central system should be used which can integrate order management system, dispatch system, tracking system and customer support system altogether. Integration of multiple systems can seamlessly synchronize all the information related to products, services, and customers throughout the organization. Conclusion By analyzing the e-business strategies adopted by Tesco, it can be concluded that this enhances the business operations with significant growth. Reliable and user-friendly website with enhanced logistic and procurement operation helps to provide best quality retail services to the customers all around the world. Customer centric approaches such as the launching of CLUBCARD help to maintain customers' loyalty and draw more consumers which maximize organizational profit. However, while implementing the e-business strategy in the internal application, business authorities have to face lots of challenges such as security vulnerabilities, and poor understanding of employees slows down the entire business operations along with the development of e-commerce applications. 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