A core activity involves experience, expertise, efficiency and even investment in the field of specialization.
Non- Core activities can be outsourced to outsiders who are specialists in their area of operation.

E-commerce or Electronic Commerce is the Buying and Selling of goods and services through electronic networks like Internet.

1. The logistics management involves various decisions that need examination for an integrated system.
2. They are Product design, Plant location, Choice of markets/source Production structure, Distribution/Dealer network design, Location of Warehouses, Plant Layout and Logistics, Allocation Design, Production Planning, Inventory Management - Stocking Levels, Transportation-mode Choice, Shipment Size and Routing Decisions, and Transport Contracting Packaging, Materials Handling, Warehousing Operations.

Logistics can be viewed as a logical extension of transportation and related areas to achieve an efficient and effective goods distribution system.

Need for BPO:
(i)  To focus on Key function.
(ii)  Benefit of Specialisation / Efficiency
(iii) Cost Cutting
(vi)  Economic Growth and Development
(v)  Increasing profits.
(vi)  Catering to the Dynamic demand

Need for outsourcing:
1. Focusing on Core Activities.
2. To Fillip Economic Development
3. Encourages Employment Opportunities
4. Reduction in Investment
5. Quest for Excellence

The factor is an agent who buys the accounts receivables (Debtors and Bills Receivables) of a firm and provides finance to a firm to meet its working capital requirements.

The individual who acquires the right to operate the business or use the trademark of the seller is known as the franchisee.

Impact of E-commerce on buyers:
1. Buyers could have a Global access to information about variety of products and services available in the market.
2. They could buy the products/services round the clock from anywhere in the world.
3. The prices of the product bought through E-commerce tend to be relatively lower than those purchased physically in the conventional shops due to offers and discount, etc.
4. Electronic and software products could be downloaded immediately after purchase through e-commerce mode.
5. Buyers can bargain and negotiate better terms and conditions with respect to Buying knowledge products.

Logistics is used for the following decisions:
Product design, Plant location, Choice of markets/sources, Production structure, Distribution/Dealer network design, Location of Warehouses, Plant Layout and Logistics, Allocation Design, Production Planning, Inventory Management-Stocking Levels, Transportation-mode Choice, Shipment Size and Routing Decisions, and Transport Contracting, Packaging, Materials Handling, Warehousing Operations.

There are primarily two types of franchising:
Product/ trade name franchising:
1. In this type, the franchisee exclusively deals with a manufacturer's product.
2, Examples include Kidzee, French Loaf outlets.
Business format franchising:
1. When a franchisor awards rights covering all business aspects as a complete business package to the franchisee it is called as business format franchising.
2. Examples are McDonald's, Pizza Hut.

(i) Full service factoring or Without recourse factoring :
When a factor agrees to provide complete set of services which includes financing, maintenance of sales ledger, debt collection at his own risk, and providing Consultancy services as and when necessary, it is called as full servicing factoring.
(ii) With recourse factoring:
(1) When the factor does not undertake credit risk, it is known as with recourse factoring.
(2) In case the debtor fails to make the payment on due to date, it is assigned back to the firm by the factor.
(3) Here the responsibility of collecting the amount lies with the selling firm.
(ii) Maturity Factoring :
In this type, the factor agrees to finance the firm only after collecting the amount on maturity from debtors.
(iv) International Factoring :
When the claims of an Exporter are assigned to a financial institution and the finance is advanced on the basis of export invoice it is called as International factoring.

(i)  Business to Customer (B2C) :
1. This is fastest growing segment in e-commerce space.
2. Under this model, business concern sells directly to consumers
(ii) Business to Business (B2B) :
1. Under the model, business concerns transact with one another through internet.
2. For instance, Snapdeal, Flipkart, Alibaba, Indiamart, Trade India. Com etc
(iii) Consumer to consumer (C2C) :
1. Under this model, customers sell directly to other customers through online classified advertisement or through auction or through mobile or through market places. 
2. Example : Indian ventures in C 2 C are Kraftly App (Buying and Selling anything) which deals in hand made products of a wide range. Once again store.
3. Com is a website that buys pre ~ owned women's fashion products. Other players are quikr,Olx, ebay etc 
(iv) Customer to Business (C2B) :
1. This model is reverse to auction model. Products like automobile, electronic items furniture and similar product are traded by customer through websites. 
2. Example : Naukri.com, and Monster.com are examples of Indian companies operating in this domain.
(v) Business to Government (B2G) :
1. This model envisages selling products and services by business consumer to Government organization.
2. For instance TCS operates the passport application process for the Government of India as part off - line process.

Benefits:
a) Focusing on Core Activities:
Companies can focus on their core competence, a few areas where the company has distinct capability. The rest of the activities (non core) can be outsource to outside agencies.
b) To Fillip Economic Development:
Outsourcing stimulates entrepreneurship, encourages employment opportunities, expands exports, enables tremendous growth of the economy.
c) Encourages Employment Opportunities:
Companies that are outsourcing their non core activities provide chances for other small business units to take up the activities. This paves way for more job opportunities and new employment avenues.
d) Reduction in Investment:
Companies through outsourcing avails the services of outsiders which in turn reduces the investment requirements. The amount so available can be utilized productively and this increases the profits.
e) Quest for Excellence:
Outsourcing enables the firms to pursue excellence in two ways namely excelling themselves in the activities they do and excel outsiders by extending their capabilities through contracting out.

a. Maintenance of book debts :
A factor takes the responsibility of maintaining the accounts of debtors of a business institution
b. Credit coverage :
The factor accepts the risk burden of loss of bad debts leaving the seller to concentrate on his core business.
c. Cash advances: 
Around eighty percent of the total amount of accounts receivables is paid as advance cash to the client
d. Collection service :
Issuing reminders, receiving part payments, collection of cheques form part of the factoring service.
e. Advice to clients :
From the past history of debtors, the factor is able to provide advices regarding the credit worthiness of customers, perception of customers about the products of the client, etc.