Assignment 1 – D1
When creating a business there are many tough decisions to go through, such as funding and other matters that involve money. But one of the most important decisions is deciding whether your company will be a store on the high street, or just an online website and everything is stored in warehouses and then delivered right to the customer’s door; or you can be a bit of both. In this document I will run through both of these options and expand on how to define these options.
Firstly before we can decide how the company is run, we have to know the terms that define them. An organisation that only operates on high streets is called a ‘brick’ organisation, whilst an organisation that only operates through a website is called a ‘click’ organisation. Finally we have organisations that operate using both the high street and a website these are called ‘brick and click’ organisations.
A ‘brick’ organisation can be just a corner shop it can be a main high street store (However most high street stores have also gone online) or even a supermarket. Brick organisations now are typically very small chain stores or just a local corner shop on a street. They are very hard to expand as they don’t have a very good business model as there is not
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For example, there is a massive lack of personal touch and human interaction; this can make e-commerce a very sad and lonely place to be whereas in a physical shop you can create a kind of bond with the staff/customers. Another flaw for e-commerce is the customer cannot view the product physically there is a lot of items that you need to feel, smell or even taste. Other issue are customers and businesses suffer from credit card fraud, from a customer’s stand point it is also hard to tell if a website is a scam or not. Finally E-commerce websites rely massively on their website if anything that helps the website run stops working the company will start to lose money very