OCR LEVEL 2 CAMBRIDGE TECHNICALCERTIFICATE/DIPLOMA IN

IT

DOING BUSINESS ONLINE Y/601/5083

LEVEL 2 UNIT 21

GUIDED LEARNING HOURS: 60

UNIT CREDIT VALUE: 10

TECHNICALSCambridge

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DOING BUSINESS ONLINEY/601/5083

LEVEL 2

AIM AND PURPOSE OF THE UNIT

The number of businesses offering an online presence has increased over the last few years and in order for a business to succeed it has almost become essential that they offer their products or services online.

Before a business considers going online they would need to be made aware of the issues and benefits of having an online presence. They would also require some kind of understanding of the types of business activities that could be available and what they would need to consider when setting up an online business.

This unit will provide learners with the knowledge to understand the different online business activities, what is involved in planning to set up an online business and any risks involved with this. Finally, learners will understand the operational and financial issues around setting up and running an online business and how a small business can benefit from having an online presence.

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Doing Business Online Level 2 Unit 21

ASSESSMENT AND GRADING CRITERIA

Learning Outcome (LO)

The learner will:

Pass

The assessment criteria are the pass requirements for this unit.

The learner can:

Merit

To achieve a merit the evidence must show that, in addition to the pass criteria, the learner is able to:

Distinction

To achieve a distinction the evidence must show that, in addition to the pass and merit criteria, the learner is able to:

1 Know about different online business activities

P1 describe online business activities

M1 compare the purposes of different online businesses

2 Know what to consider when setting up an online business

P2 outline the planning issues to consider when setting up a business online

D1 provide planning documentation for setting up an online business

3 Understand the operation of an online business

P3 describe the potential risks to an organisation when operating online

M2 identify how potential risks to an online business can be overcome

D2 compare anti-virus software suitable for an online business website

P4 explain the operational and financial issues for an online business

4 Understand the benefits of an online business presence

P5 explain how small businesses can benefit from a web presence

M3 describe potential disadvantages from having a web presence

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TEACHING CONTENTThe unit content describes what has to be taught to ensure that learners are able to access the highest grade.

Anything which follows the i.e. details what must be taught as part of that area of content.

Anything which follows an e.g. is illustrative, it should be noted that where e.g. is used, learners must know and be able to apply relevant examples to their work though these do not need to be the same ones specified in the unit content.

LO1 Know about different online business activities

• business activities - e-commerce - government - information - marketing/advertising - education/training - communication - financial, (e.g. online banking).

• purposes - selling products - online banking - buying and selling (auctions) - e-books (reading) - e-learning (delivery training/teaching) - chat to friends/make new friends.

• sectors - retail - education - government - social - third sector - financial.

LO2 Know what to consider when setting up an online business

• planning - domain name - web server - designs, (e.g. user interface requirements, ease of use) - cost - timescales - developer, (e.g. professionally created or in-house

within the business) - hardware - software - security, (e.g. anti-virus, SSL, passwords) - business objectives.

• documentation - domain name example and availability - web server provider - a design for a web page - cost estimate - timescale estimates - hardware examples - software examples.

LO3 Understand the operation of an online business

• potential risks - security of data - loss of data - equipment and/or software failure - hacking - fraud.

• overcome risks - anti-virus software - firewall - passwords - user rights - backup.

• operational issues - website updates - staffing levels - internet connection - payment methods - distribution - capacity.

• financial issues - cost of equipment, (e.g. hardware and software) - development costs - set up costs - maintenance costs.

• Comparison of anti-virus software - price - number of licences - features - help and support.

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Doing Business Online Level 2 Unit 21

LO4 Understand the benefits of an online business presence

• benefits - 24/7 - global customer base - less overheads - convenience - visual presence - marketing.

• potential disadvantages - cost of website - maintenance, (e.g. updating information, keeping

website up to date) - downtime - expertise - staff training - constant competition from other businesses on a

global scale as opposed to local scale.

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DELIVERY GUIDANCE

Know about different online business activities

Learners working as a group could be provided with a list of the different online business activities from the Teaching Content and asked to research real examples of each (e.g. an example of an e-Commerce website would be Play.com). The examples could then be fed back to the group in order to check that they are correct. Learners should identify the purpose of the online businesses they have researched.

Know what to consider when setting up an online business

Learners could identify what would be required in order to create an online business presence. This could be done in the form of mind mapping in small groups where learners are encouraged to identify as many items as possible that they feel would be required to create an online business presence. This information could then be fed back to the group to ensure that they have identified all of the planning items as outlined in the Teaching Content.

Learners will need to be taught how to find an appropriate domain name, check its availability and its cost. They would also need to be taught how to find examples of web servers and the costs involved in using them. Learners should be encouraged to carry out research in order to identify the kinds of hardware and software a business would need to use in order to create and maintain their online presence. They should also research the costs and design templates that might be available if a website development company was employed to create the website. Once the learners have done their research they could then feedback to the group so their research could be checked for accuracy.

Learners will need to be taught about the requirements for planning documentation to include the required content.

Understand the operation of an online business

Learners could work in small groups to try to identify the kind of risks an online presence could have; and feed back to the group, ensuring all items in the Teaching Content have been covered. Learners working in small groups could be provided with a risk/threat (e.g. security of data, loss of data, equipment or software failure, hacking, fraud) and asked to research how they could prevent it. Once each group has identified at least two ways to prevent their risk/threat, then these could be fed back to the group to ensure they are correct.

Learners could also be asked to consider the operational and financial issues that online businesses may face, with each group perhaps looking at different types of business or sector. This information could then be fed back to the group to ensure that they have identified all of the issues as listed in the Teaching Content.

Learners require the skills to be able to compare different anti-virus software products which are suitable for an online business. A selection of anti-virus software products could be identified and then each product could be given to a different learner. After the learner has carried out some research they could be placed in small groups so they could discuss the price, number of licences, features and help and support for all of the products to see if they could identify the best product and why taking into consideration operational and financial issues.

Understand the benefits of an online business presence

Learners could work in small groups to identify the benefits and disadvantages of having an online presence. The information could then be fed back to the full group to ensure that they have identified the full list as provided in the Teaching Content.

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Doing Business Online Level 2 Unit 21

SUGGESTED ASSESSMENT SCENARIOS AND TASK PLUS GUIDANCE ON ASSESSING THE SUGGESTED TASKSAssessment Criteria P1, M1

The assessment criterion P1 could be evidenced by the use of a report or presentation supported by tutor observation and/or recorded evidence. Learners should describe all of the online business activities as listed in the teaching content section. They could also provide examples of websites which demonstrate each of the business activities through selected screen prints from the sites.

The merit criterion M1 requires the learner to compare the purposes of different online businesses. Learners should compare a range of (three or more) online businesses from different sectors to aid their comparison as detailed in the teaching content section. This could be presented in the form of a table, report or presentation with speaker notes or video evidence.

Assessment Criteria P2, D1

The assessment criterion P2 could be evidenced by the use of a mind map, diagram, report or presentation. Learners should include in outline each of the planning considerations identified in the teaching content section.

The distinction criterion D1 should expand on their outline and provide evidence of the planning documentation for setting up an online business.

Assessment Criteria P3, P4, M2, D2

The assessment criteria P3 and P4 could be evidenced by the use of a report, a leaflet or a presentation. P3; Learners must describe the potential risks, as outlined in the teaching content. P4; Learners must explain the operational and financial issues as outlined in the teaching content section.

The merit criterion M2 should be an extension of the evidence presented for P3, P4 where learners must identify how the potential risks can be overcome.

The distinction criterion D2 could be evidenced by the use of a table, report or leaflet on anti-virus software or a presentation supported by tutor observation and/or recorded evidence. Learners are required to compare a range (three or more) of anti-virus software, using the list detailed in the teaching content.

Assessment Criteria P5, M3

The assessment criterion P5 could be evidenced by the use of a report or presentation and/or recorded evidence. Learners should explain how small businesses can benefit from having an online presence. They should explain each of the benefits as outlined in the teaching content section.

The merit criterion M3 could be evidenced in the report or presentation created for P5 as an extension to this activity. Learners should describe the potential disadvantages of having a web presence as outlined in the teaching content section.

SUGGESTED SCENARIOS

• a local small business is thinking of having an online presence

• you are thinking of setting up a new online business.

Resources

• learners will need access to appropriate software (word processing, spreadsheets)

• learners will also need access to the internet

• learners may require access to a scanner if they decide to create a hand drawn design of a webpage.

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Doing Business Online Level 2 Unit 21

MAPPING WITHIN THE QUALIFICATION TO THE OTHER UNITSUnit 9: Website development

LINKS TO NOS

7.11: Supplier Management

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