In the present era e-business has gained huge importance due to increasing updation in the technologies that enhances trade. In this the business process is conducted on internet with the use of tools that facilitates buying and selling of products as well as services (Grove, 2009). E-business is defined as the commercial activities that are carried out on computer as well as through technical devices. The report entails to understand the scope of e-business. Further it includes the manner in which internet works. It involves the use of different e-business models. Further it involves the manner in which internet works


1.1 Describing the environment in which e-business is conducted and business transaction types

E-business is considered as modern technology that can be used by firms to trade through internet. It not only assists the consumer to buy and sell but also allows them to contact with suppliers in case of any issue faced. There is existence of several businesses who are engaged in carrying out business online (Han, Liang and Greene, 2009). This has resulted in emergence of e-business. With the assistance of this Sainsbury can offer convenience to the customers. This has resulted in changing the traditional method of selling. With e-business company can expand its operation internationally.

There are four types of e-business transaction that are enumerated below:

Consumer to consumer (C2C): In this type of transaction there is no involvement of middlemen. The customers is considered as both buyer and seller as well as sales are done using internet.

Business to business (B2B): Under this one business makes sales to another business with the assistance of internet (Jengchung and, 2013). In this several business transaction can be carried out within specific chain of supply.

Business to consumer (B2C): In this types of transaction the firm like Sainsbury directly sale the product to the customer.

Consumer to business (C2B): It is referred to as the type of transaction where value is created by customer for the products and services through e-business.

Pest analysis of E-business

Political: It includes the factors such as increasing support of government towards use of internet for trade purpose. With the E-business the firms gain benefit from tax rates.

Economical: The factors such as inflation has huge impact on the spending power of customers while purchasing through e-business.

Social: For the e-business it is important that it offers greater comfort to the customers. Otherwise such has huge impact on the performance of the firm in an effective manner.

Technological: With the updation in the technology within the market the e-business firm is required to bring changes in its technology related to work otherwise such would affect the operations of the company in a significant manner.

Google provides greater support to the e-business firms. This can be through providing them platform where they can make sales of the products to the customers in an effective manner using internet. Further it offers the place where website of the business is presented with effectiveness.

1.2 Benefits and barriers to businesses considering online presence

Benefits is defined as the advantage that gained with the use of something.There are several benefits and barriers of e-business. These have been discussed below:


Cost of transaction is reduced: Through internet the cost of transaction for selling the products is reduced to a greater extend.

Reaching large mass: With the assistance of e-business Sainsbury can have wider access to the customers (Malhotra, 2013). This is because internet is exposed to entire world.

Setting up cost: The cost involved in setting up e-business is significantly low. The cost engaged initially is in relation to domain name, web hosting equipments as well as e-mail hosting.

Promotional efforts: The sources of internet would result in direct advertisement as well as well as publicity of the products (Jones, 2008). The cost engaged in carrying out the business through online means is low thus the return on investment will be higher in comparison to outlets for business.

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Barriers defined the obstacles the has an adverse impact on the performance of a particular task.

Issues in managing e-business: The functions of e-business needs to be effective in relation to exchange of information on websites.

Influence of staff: With the updation in the technology the working of the personnel is influenced (Gerjets, 2012). Thus it is essential for Sainsbury to determine the ways in which training can be granted to the employees.

1.3 Assessing security and legislative issues faced by online business

There are numerous of security and legislative issues on internet. Such issues are in relation with the protection of network of firm in the organization. The security related issues have been assessed as under:

Firewall: Through installation of firewall the firm can be protected against several issues related to security (Kotler, 2011). It would permit the network that have trusted ports as well as services.

Password and access: The firm is required to implement network administrator in offering effective username as well as password to the client. It is an effective method of safeguarding authentication of customers in relation to these sites. This would otherwise results in causing privacy issues.Anti virus software that is being employed by Sainsbury guarantee protection against new virus. Such acts as major security issue that affects the online business to a greater extend.

Legislative issues: The government in UK has developed certain legislations in 2009. It facilitates in determining the working of the internet of the firm that are operating online. The headquarters of the regulatory authority has provided strict guidelines to the services providers of internet. This is with respect to providing them with several activities carried out on internet of every general public as well as e-business provider (Halal, 2003). They can access phone calls, email as well as text messages.

1.4 Modes of communication available to an e-business and their applications

In order to carry out e-business it is essential to possess suitable communication with the customers. There is existence of several modes of communication available to e-business. These have been enumerated below:

Customer follow up: In case the customer has made purchase of the product online the firm like Sainsbury can ask for feedback of the customers in order to gain insight to their level of satisfaction as well as the new product that can be offered (McDonald, 2007).

Terms and conditions: This assists the firm in offering information with respect to the terms and conditions of the products that would be purchased by the customer.

Shopping carts: It is referred to as interface among the e-business and the buyer of the product (Morteza, 2011). It function in the similar manner as the customers put the selected items in the basket while purchasing at mall. Such is same where the customer keep the selected products in shopping carts.

FAQs: It is referred to as the questions that are frequently asked by the customers. It is essential to place the question and answer that are mostly asked. The question needs to be with the brief answer with respect to the organizational product.

Online forms: These are defined as the types of forms that are effective in gaining the feedback of the customers in case of e-business. Such online forms can be utilized by customer to get enquiry of the services and products that are being offered by e-business.


2.1 Internet technologies and their importance in making an e-business successful

Internet technologies assist in carrying out the activities of the business with greater ease. Further it act as an aid in increasing the number of customers in an effective manner. There are different internet technologies which includes IP Address, Bandwidth, IMAP, TCP/IP, HTTP, POP etc. Such protocol are exercised by the customers that makes use of internet. These have been discussed as under:

IP address: It determines the unique number of computer that are connected through internet. It is based on similar concept that is telephone numbers (Dziri, 2013). For the purpose of establishing communication it is essential to determine the IP address of the computer with whom the communication has to be made.

FTP: It offers users to transfer the data among computer associated through network. It grants opportunity to make transfer of files among the accounts. The modes of transferring data that includes binary as well as plain test is assisted through FTP.

TCP/IP: It is a protocol that assist in transferring information between server as well as customer. The concept is based on the layers of network (Avoine, Junod and Oechslin, 2007). It facilitates in getting knowledge regarding information transfer from one to another computer in a network.

Internet technology plays an imperative role in retail business such as Sainsbury. With this the e-business can offer accurate, faster as well as effective services to the customers. In addition to this it assists in generation of invoices and payments for transaction within minimum time and efforts.

2.2 Main features of HTML

HTML is termed as creative function that assist in designing and developing web pages as well as websites. It is abbreviated as Hypertext Markup Language (Barnaghi and It is utilized for the purpose of making website look more attractive along with effectiveness in working. The features of HTML are as follows:

  • It offers tools for effective presentation by formatting tags.
  • It can be easily understood and can be used.
  • It grants flexible formats and modifies tactics
  • HTMP is effective in providing multimedia interface along with graphical innovation
  • With the assistance of support tools it creatively designs work.
  • With the assistance of HTML images, sound and video can be updated. This enhances the web page quality in an effective manner.
  • It offers GUI that is Graphical User Interface to the website in order make it understandable as well as easy.

2.3 Analyzing functions of client servers and browsers and role of search engines

There are different kinds of search engines that includes Yahoo, Bing as well as Google. They are engaged in playing certain role which have been presented as under:

Displaying result: The outcomes of the queries on the web page of search engine is kept by user is reflected with hyperlink (Barnes, 2011). While the user make search for keywords or phrases the crawler starts scanning for information. It reflects the search item of user with the particular keyword that exists on website.

Crawling: With this software the search engine can crawl through the information that is available on the website. This is being stored within database. Role of crawler is to scan for the data that is already present and also it searches for new information.

Storing: It plays an important role in storing the data in the database of search engine. This is for the purpose of accessing information in faster manner (Bryman and Bell, 2011). The content availability is dependent on the capacity to store.

Indexing: This function is performed after crawling. This would index the information that exists in relation to the number of times keywords appears in each website.

Role as search engine: It is considered as means through which client server and browser relation can be accessed. User interface is being provided by search engine to the coding language. Thus it can accessed in order to understand by general user.

2.4 Evaluating use of intranets and extranets within business communication

Intranet is referred to as the medium for accessing the communication channel in the geographical boundaries of the firm. Extranet describes larger area of network. However internet is a means to get connected with the people across the globe. Intranet and extranets are used for the purpose of using technology like TCP/IP. For the purpose of securing information, accessing the database, operational system, group scheduling as well as video conferencing through private network that is intranet. Such can be used by staff members in the organization. The employees can have access to intranet as internet is protected by firewall. The application related to intranet offers opportunity as to information sharing (Rivalogic, 2014). Thus the new member of the firm can have faster access to the policies, structure as well as procedures of the business. With the use of intranet the staff members can approach significant presentations as well as meeting minutes. The reprocessing of the information provided can be carried out by members of several departments. On the contrary private network such as extranet is considered as internal part of intranet of business. Particular can have extent to this that are exist outside the firm. The degree to which there is existence of effective association among user and business influences the accessibility of information.


3.1 Different e-business models that can be used to generate revenue for business

There are several e-business models that can be used for the purpose of generating revenue for business. The models demonstrates the manner in which the firm can earn profits along with the revenue. The e-business models have been discussed as under:

Sales model: In this model Sainsbury can make use of e-business in order to sale of its products and services to the customers (Keffer, 2010). It is considered as the source that can assist in generating revenue in an effective manner.

Affiliate model: Under such e-business model for every transaction the company gets recommendation fee or percentage of sales revenue that acts as revenue for sales (Grove, 2009). In this the focus of the website is on developing association as potential in the groups of people.

Advertising model: It is referred to as the part of conventional media model. The e-business organizations such as Sainsbury that offers products, services as well as forum for the purpose of promotion utilizes such model.

Trade model: This is the model that can be used for making direct sales as well as purchase of the products. They are concerned with trade activity wherein the availability of products is online.


3.2 Analyzing each model in terms of its capacity to generate revenue

Profit earning as well as generation of revenue is the major aim due to which there is emergence of e-business. Profit includes the return on capital employed.

Sales model: In this model the sales of the product and services is done one for the purpose of generating revenue. This is referred to as capacity of the model. In order attain profits huge amount of money is charge by the business from the customers (Gerjets, 2012). By charging high company can cover its operational expenses.

Affiliate model: The sources through which the companies makes profits under this model is by attracting towards the business that are affiliated. With this Sainsbury is earning huge profit percentage on sales transaction. On the purchase of the product by the customers referral fees is charged.

Advertising model: This model not only aims at offering products and services but also provides advertisers. Fir this it charges fees.

Trade model: This model assist the firm in gaining revenue directly as it makes sales of the product directly to the customers.

3.3 Future developments in e-business models

In recent times e-business model plays an imperative role in the global economy. This is due to the reason that there is existence of the firms that carry out business transaction online. With innovation in the model value can be created for the firm in future (Morteza, 2011). E-business has been categorized into two in accordance with the research as well as future development. This includes generic e-business model and elements concentrating on e-business model.

Generic e-business model: The categorization of e-business has been done by the analyst on the basis of their capability to generate revenue. Further this is categorized based upon the value proposition as well as integration (Kotler, 2011). There is existence of eight models that demonstrates the manner in which Sainsbury can operate online. The models described are in accordance with the typologies.

Elements concentrating on e-business model: Generic business model has been described by the researcher of future development. In addition to this the models of e-business are being differentiated by the researcher.


4.1 Use of key elements of good web design structure

There is existence of different key elements that needs to be taken into account for the purpose of developing good web design structure. Some of the essential web design structure includes Head/title, Meta, tags, keywords as well as navigation.

Head/title: Effective websites are developed with the assistance of head/title elements. These are enclosed with meta data (Barnes, 2011). The existent data is presented by meta data. Further it also includes cascading style script. The head elements begins from H1 TO H6 and such can be used by Sainsbury.

Meta tags: It is referred to as the part of meta tag that does not display website page. But such can be interpreted by the computer. Meta tag offers the content of website with the alternative. For the purpose of designing web structure the use of meta tag can be made effectively.

Keywords: The website services are being used by customer through putting of phrase on the search engine. This is termed as keyword. It is essential for the user to use the keyword in correct format as well as at right place.

Navigation: The major aim of the navigation to completed the task in less number of clicks. It is the element that can be used at the time of developing structure for web design.

Body: The web page content is placed within the area of body. This element is consist of the things that are being demonstrated on the browser.

4.2 Evaluating impact of well designed website to an e-business

The firm that carry out e-business needs to create professional website. This can be done by spending huge amount of financial resources. Sainsbury does not have knowledge with respect to measurement of success of business. Thus it essential for the firm to takes into account different factors while designing website. These are as follows:

Clear visual hierarchy: The decision regarding the whether to leave the website or to stay depends on the visual hierarchy of the website. It is important of the business to create the website that has potential to persuade the customers (Halal, 2003). In addition to this use of colors, hyperlink as well as images have been made so as to demonstrate simplicity as well as consistency.

Page layout and structure: There is existence of key features that are accepted norms by the users. This includes features such as trust, clear structure for navigation as well as security.

Interactivity: The website needs to be attractive in order to retain customers. With the assistance of graphics website structure can be made more creative. Therefore it adds value to the website which attracts the users.

Solid navigation tools: The elements like text links, bars, button as well as other graphical elements that are used for the purpose of investigating web page are needed to be reliable with the navigation structure.

4.3 Issues concerning website usability

While surfing the website the user gains experience that improves the returns on website. The needs of the users can be fulfilled by the development of website that can be easily used and is in understandable format. For the purpose of determining the usability of the website certain issues needs to be taken into accounts which are as follows:

Good website navigation: In the process of examining the usability the major issues arises is in relation with website navigation. With the assistance of this users can reach the location in an effective manner. Further the user can have wide access to information through this.

Providing multi-sensory access for disabled users: Support is required by the users who are suffering from color blindness (Morteza, 2011). This is in order to use text browsing. Such support can only be offered when developers of website provides multi-sensory access.

Offered in different languages to suit users: In case the text and link does not emerges in different language then such an issue with respect to usability occurs. The language that has become standard is English.

Legal responsibilities: The act such as data protection, disability discrimination act needs to be taken into account by the developers while creating website. Certain standards have been developed which are required to be confirmed by any website. This is with the aim to make sure that disables users can gain website access.


It can be concluded from the study that e-business acts effective source that can assist in carrying out business transactions in an effective manner. With the assistance of this the company can enhance its image in the market for longer term. There is existence of several e-business tools that can be used by Sainsbury in order to improve the quality of services. For the purpose of enhancing the market knowledge as well as function in the business the company can make use of intranet and extranet. It has been inferred that by designing good web page the customers are attracted towards purchasing products through online.


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