STEP TO DRAW PARETO CHART

There are few steps to draw Pareto Chart :

1. Form a table listing the cause and their frequency as percentage. For
instance, we need to find the causes of late arrival. Hence, causes that might
lead to these problems are family problems, work up late, had to take a bus,
traffic tie up, sick and bad weather.
Cause
for
Late Arrival
Family
problems
Woke up late
Had to take the
bus
Traffic tie-up
Sick
Bad weather
Total

Number of
Ocassion
8

Percentage

20
4

27
6

32
6
3
73

44
8
4
100

11

2. Arrange the raws in decreasing order from the most frequent to the least
frequent.
3. Add and calculating the cumulative percentage
Cause for Late
Arrival
(Descending
Order)

Number of
Occasions

Percent
age %

Cumulat
ive
percent
age %

Traffic tie-up

32

44

44

Woke up late

20

27

71

Family problems

88

11

82

Sick

90

Had to take the

bus
Bad weather

96

100

4. Plot x-axis with the cause and on the right of the y-axis is the cumulative
percentage.

5. Make a point at each cause of late arrival that indicates the cumulative
percentage. Then join the points together to form a curve
6. Plot a bar graph with causes on x-axis and frequency (in percentage) on the
left y-axis.
Causes of late arrival
120
100
80
Ocassion

60

Cummulative %

40
20
0
Traffic Work late Family

Sick

Bus

Weather

7. Draw the line 80% on y-axis running parallel to the x-axis. Then drop the line
at the point at intersection with the curve on the x-axis. Then, separate the
important cause of the left from the less important causes in the right
120
100
80
Ocassion

60

Cummulative %

40
20
0
Traffic Work late Family

Sick

Bus

Weather

Hence, we can conclude that traffic tie up and woke up late are the causes that we
should focus on.

ELECTRONIC COMMERCE
DEFINITION
Electronic commerce also known as e-commerce was defined as electronic marketing that consist of
buying & selling goods & services over an electronic such as the internet & other computer networks. In
complete words, e-commerce is the process of purchasing, selling, transferring or exchange goods,
services & information over computer networks (internet) through which transaction or terms of sale are
performed electronically.
REASON TO USE E-COMMERCE
People or organization will go into something new technology or system with several reasons. Same goes
to e-commerce, the organization, business and consumer using this style of business because ecommerce can be done with low entry cost. At the same time, e-commerce also can reduce the
transaction cost between the supplier and consumer. Furthermore, by using an e-commerce, the people
surrounding the network are able to access to the global market also secure their market share in the
business environment.
TYPES OF E-COMMERCE

Business To Business (B2B)

This is the largest type of e-commerce where as the buyer and seller are two different entities that
communicate through telecommunication network in order to get supplies of goods or be a
suppliers for another business. The concept of this type of e-commerce is similar to manufacturer
issuing goods to retailer and wholesaler. The best example that we can see is ASUS where by
the acquired a technology from Intel and put it into their products.

Business To Consumer (B2C)

This model normally needs the interaction between businesses and consumers. The basic
concept is to sell product online to the consumers. B2C is direct trade between the company and
consumers or in other words, they used direct selling through online. For example that we can
see in Malaysia is Zalora where customers able to interact with the business when doing their
shopping activities.

Business To Government (B2G)

The type of e-commerce gives the business to exchange of information, services & products
between business organization and government agencies on-online. The process included Eprocurement services, a virtual workplace & rental of on-line applications & databases. The real
situation can we looked at network that link insurance agencies (business) with Jabatan
Pengangkutan Malaysia (government) for the process of renewal insurance and road tax.

Government to Business (G2B)

This type of e-commerce will also known as E-Government. This G2B give the exchange of
information, services & products between government agencies and business organizations.It
aslo enable exchange between government & business in term of information, guidance &
advise, Online application and submission form and Online payment facilities
The best example in Malaysia is MyEG whereby the provide facilities that enable government to
interact with business organization through intermediaries system.

Consumer To Consumer (C2C)

The sites that offering free classified, auctions and forum where individual can buy and sell
according to their interest. Normally they will use online payment such as PayPal, Maybank2u,
CIMB Clicks & etc where people can easily send & receive money online. The example is
Mudah.my & E-bay. This site will give customer to advertise their own products that attract to the
item will accept the offer price.

BENEFITS OF E-COMMERCE
Organization
i)
International marketplace: People all over the world can enjoy doing their business
transaction without border barrier and having to go to that marketplace
ii)
Operational cost saving : The cost such as creating, processing, storing,operating and
retrieving paper-based information can be decreased.
iii)
Enable to reduce inventory : The business can operate their business using JIT system.
They only produce product when get order from consumer.
Consumer
i)
24/7 access : Enable the customers to shop and conduct business transaction for 24
hours per day at any location that they want to do it.
ii)
More choices : Many ranges of products that was offered by the suppliers and the
customer have power to choose the products also demand customization of products.
iii)
Price comparison : The more choice that customer have, it will give difference in price
offer from the suppliers.
Society
i)
Enable more flexible working practices : E-commerce will enhance the quality of life for
people in society by giving them opportunities to work from home.
ii)
Connects people : The medium of connection between developing countries and rural
areas in order for them to enjoy and access products and services provided those are not
available in their places.
iii)
Facilitate delivery of public services : The advancement technology makes people are
easily to conduct business transaction using internet such as E-filing

LIMITATIONS OF E-COMMERCE

Organization
i)
Lack of sufficient system security : The problem of hacking will be the main issue when
we use internet as medium to deliver our personal information and details.
ii)
Under pressure to innovate : This problem occur when the business model is easily to
copy by others.
iii)
Facing increasing competition: More company and organization nowadays have changed
their strategies towards the ecommerce business.
Consumer
i)
Cost of access to the internet : Cost of monthly commitment for broadband tariff, mobile
internet or dial-up
ii)
Lack of security and privacy of personal data : There is no real control of data that have
been collected in the web or internet.
iii)
Physical contract & relationship are replaced by electronic process: The customer only
can imagine the real product without able to touch of feel good about the products.
Society
i)
Social division : People who are entitle with the technology will get more benefit from the
other who are not received it.
ii)
Reliance on telecommunication infrastructure, power & IT skills : Human skills such as
public relation, sale marketing and direct selling are not longer needed in the business or
organization.