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Answer: Describe the e-business environment and types of e-business transactions

Unit 4.39 The Internet and E-business

Level 4      15 Credits

Related Qualification

ATHE Level 4 Diploma in Business and Administrative Management (QCF)


Some of your friends have developed a small business producing customised wristbands for events and charities.  They are planning to expand the product range and customer base and wish to move into e-business but have little experience in this area. Knowing that your qualification includes a unit on the Internet and E-business and other important information about administration and business management, they have asked for your assistance. You have been asked to produce an easy to use reference guide with a glossary, which has the following sections;

  • The scope of e-business
  • Internet technologies
  • E-business models
  • Website design

Task 1 - Unit 4.39 The Internet and E-business

Section 1 The Scope of E-business

In the first section of your report, using examples you should:

  • describe the e-business environment and types of e-business transactions
  • explain the benefits and barriers to businesses of having an online presence
  • assess the security and legal issues for a business operating online
  • explain e-communication capabilities available and how they can be used.

(AC 1.1, 1.2, 1.3, 1.4)

Section 2 Internet Technologies

In the second section of the reference guide you need to:

  • explain the internet technologies and their importance in the success of e-business
  • explain the main features of HTML
  • analyse the functions of client servers and browsers and the role of search engines
  • evaluate the use of intranets and extranets in communication.

(AC 2.1, 2.2, 2.3, 2.4)

Section 3 E-business models

In the final section of the guide using examples of existing e-businesses you must:

  • illustrate and describe the different e-business models that could be used to generate revenue for a business
  • evaluate each model’s capacity for revenue generation
  • conclude this section with an assessment of the potential impact of e-commerce on organisations in future

(AC 3.1, 3.2, 3.3)

Task 2

Your friends have found the reference guide very helpful.  A business development day is now planned to finalise decisions on business plans. You have been asked to provide a presentation, accompanied by a hand-out and using examples which:

  • explain the key features of good website design
  • evaluate the impact of a well-designed website to an e-business

(AC 4.1, 4.2)

Guidelines for assessors

The assignments submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit.  The suggested evidence listed below is how learners can demonstrate that they have met the required standard. Describe the e-business environment and types of e-business transactions



Suggested evidence

Task 1

Section 1

1.1, 1.2, 1.3, 1.4

The reference guide should be produced in a suitable format, be illustrated with examples of e-business throughout and contain a glossary. In section one learners must demonstrate an understanding of the scope of e-business. They should give a clear overview of the environment in which e-business operates. Learners will need to clearly describe the types of transactions that take place in e-business and explain a range of benefits and barriers to businesses working on line, including financial, market share and brand recognition related benefits.  The assessment of security and legislative issues needs to be comprehensive, balanced and lead to judgements.  Learners must clearly explain communication and internet technologies that are used in e-business and how they work.

Section 2

2.1, 2.2, 2.3, 2.4

In this section, learners should show that they understand how the internet works. It is important that the technologies described and explained are specifically linked to e-business and how they work and are important in making an e-business venture successful. It is not enough for learners to simply describe the different technologies. The section should specifically cover communication technologies, internet technologies, HTML, client servers, browsers, search engines, intranets and extranets along with their role and applications for e-business. The learner will need to ensure that all terms are defined in the glossary

Section 3





3.1, 3.2, 3.3,



In the final section learners must show an understanding of different e-business models.  Learners should provide a practical look at the different models that could be used by an organisation to generate business. The evaluation needs to consider the similarities and differences and should lead to some conclusions. Learners need to make a reasoned assessment of the future implications of e-commerce and its impact on organisations. Learners should use specific examples of existing e-businesses to illustrate their work.

Task 2


4.1, 4.2


The presentation and the hand-out will enable learners to present information in pictorial, illustrative format accompanied by a clear and full explanation of the key features of good website design.  In the evaluation learners should use examples to illustrate their work.  They must consider the strengths and weaknesses of websites and the impact they have on an e-business.

Unit 4.39 The Internet and E-business

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