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International business strategy and organisation
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Virtual Organization E-Business
Marshall Industries has been making its mark as one of the first company to provide distribution of electronic components by conducting e-business on an international basis. Like many other company in its century, technology have played an important part and changing the way and giving many options on marketing and service a business. Countless businesses have taking a piece of the pie by taking advantage of the world wide web to conduct their business to a broader list of clients and taking their business out of the box. According to Marshall Industries "The Internet offers an opportunity to help reshape and strengthen traditional business relationships. Using the Internet, transmissions can be sent whenever necessary at no premium, helping to establish real time shopping, offering additional advantages in speed and flexibility. Moreover, the substitution of traditional marketing and advertising media by the use of Internet-based and Web technologies offers new possibilities" (2003).
Marshall Industries provide its services to numerous part of the world. As a company that services many countries, there are many legal issues that are involved. Some of the issues include but not limited to Contract Formation and E- Signatures, Warranties and Limitations on Liability, Privacy and Data Protection, jurisdiction for Internet-based transactions.
In order to have legal proof of an agreement made concerning clients to business and business to business, Contract Formation and E- Signatures allows such binding contract to be legal format when it comes to e-business. According to Sylvia Mercado Kierkegaard "the E-sign Act and the Uniform Electronic Transactions Act (UETA) prevent a rule of law from denying the legal effect of certain transactions in interstate or foreign commerce on the ground that the signature, contract, or record of such transaction is in electronic form or if an electronic signature or electronic record was used in the formation of a particular contract. Both provide that if a law requires a record to be in writing or retained in its original form, then an electronic record satisfies the law" (Kierkegaard, 2007, 8).
A company have to make known to its client of the warranty and liability involving their goods and services. When conducting and International e-commerce, Warranties and Limitations on Liability plays and important role according to Jacqueline Klosek:
"When conducting business online, especially with consumers, it will also be necessary to consider the potential application of foreign law regarding certain contractual terms. Many jurisdictions provide that there are certain mandatory warranties that will apply regardless of what is stated in the contract.
Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.
Australia, commercially would be at an advantage if contract law was codified. The common law system which contracts calls home, can only take on so many avenues and limits itself when stretched to cover new areas. There needs to be a national set of laws governing contracts on the commercial front and in general areas to overcome discrepancies across borders. However there still remains inconsistency with consumers, minors and business trade through contracts made online. The digital economy is not only one of the fastest growing areas but is forever changing and is definitely a prospect that needs to be covered. Effective legal safeguards against undue exploitation and advantage-taking in such online dealings would see Australian contract law remain in the global arena. The Australian public need greater stability and certainty from contract law, and codification is a step towards fulfilling that void by allowing citizens to be well equipped and educated on their rights and decisions.
While this offers a contract law that is more flexible than the common law, it also requires a higher level of responsibility from the merchants it serves. Those who make a living by crafting agreements are expected to understand the legal consequences of their words and deeds. Many sections of the code offer two rules on for the person who routinely deals in the particular good involved or who appears to have special knowledge or skill in those goods or who uses agents with special knowledge or skill in those goods. This code is frequently held for a merchant to a high standard of conduct than a
Goods and services may be accepted solely on the grounds of the purchase conditions – if not agreed otherwise in writing. This causes discrepancy with the conditions of the supplier. MTD shall not accept this, unless MTD BIO explicitly agreed to the alternation in writing. For MTD BIO only orders in writing shall be binding. If a dispute arises, which cannot be settled amicably, legislative provisions of the Civil Code shall remain valid, whereas for the interpretation of business usances the provisions of the Incoterms clauses of the International Chamber of Commerce from Paris in the edition, valid on the day of conclusion of the
In addition to the change in behavior of consumer, many companies or retailers change the sales channel combinations. The greatest impact of the Web-bases electronic revolution has occurred in companies adopting the click-and-mortar approach. Click- and-mortar is one the strategy used by the companies or retailers that they continue to conduct their business in the physical locations and have added the electronic commerce component to their business activities. According to one study, 37% of United States retailers are selling through a combination of the internet, in stores and catalogs. This represents a growing demand for the business-to-customer package delivery service.
In summary, “Internet activities are not most significant in competition, such as informing customers, processing transactions, and procuring inputs”. (Porter, 2001) significant corporate assets--skilled employees, proprietary product, and efficient logistical systems – these factors are the most important to keep competitive advantages. In fact, it is foreseeable that the Internet's evolution will come up in the future involve a shift “in thinking from e-business to business, from e-strategy to strategy”. (Porter, 2001)Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage.
Cross, Frank B., and Roger LeRoy Miller. "Ch. 13: Strict Liability and Product Liability." The legal environment of business: text and cases, 8th edition. Mason, Ohio: Cengage Learning Custom Solutions, 2012. 294-297. Print.
As mentioned earlier, there are certain requirements which must be met for a contract to be valid; requirements needed include agreement, consideration, contractual capacity and legality. For an agreement to be valid there must be an offer and acceptance present. In other words, there must be an intent known and understood for the contact to have an agreement. With that being said, there is no
Notably, the class of potential defendants in a product liability is extensive; it may include everyone in the distribution chain of the product (Wong 2010). The defendant may range from the manufacturer of the product to the seller or the lessor of the product. In addition, anyone who services the product or installs the product after purchase may stand liable in the event that the product is defective. Principally, the basis of action in a product liability litigation are the negligence, intent, strict liability, breach of implied warranty of merchantability, and general misrepresentation (Wong 2010). In practice, prosecutions in product liability have significantly relied on the Third Restatement of Torts, on section 402A
rule", The electronic formation of contracts and the common law: "mailbox. baylor law review. 8 april
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
The virtual organization is a network of independent suppliers, customers, and even competitors, generally tied together by computer technology (Roger, 1991). They share skills, costs, and access to markets. It is tend to have flat structures in which information and decision making move horizontally (Judith R.G, 2002). Through the support of modern electronic system, it becomes possible to link people across formal organizational boundaries (Judith, 2002, quoted in S.G. Straus, S.P. Weisband, and J.M. Wilson, 1998).
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
E-business is a wider concept that takes into account all the aspects of use of information technology in business. Apart from buying and selling, it also includes servicing customers, collaboration with business partners, and engages incorporation across business processes and communication within the organisation (Rowley, 2002)
What's e-business? It is the transformation of every business process through using the internet and associated technologies. In this transformation, each part of the business becomes a part of an intrinsic network, which enables employees, suppliers and customers of a given enterprise to conduct their tasks. People usually try to make a point in differing e-business from e-commence, but as I see, e-commerce is a part of the e-business category, and an important one.