AWERProcedia Information Technology & Computer Science 1 (2012) 1241-1244 2 nd World Conference on Information Technology (WCIT-2011) The concepts of e-business and its various models and their mutual effect on each other Hamid Tohidi Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran Abstract Electronic business means production, marketing, sale or transportation of products and services by electronic means. A commercial transaction can be divided into three stages: advertisement and search stage, order and payment stage, and transportation stage. Each one of these three stages or all the stages may be done electronically and therefore can be considered under concept of e-business. In general, importance of e-business lies in offering better services and reducing volume of paperwork in an organization. This paper tries to investigate relationships between enterprises or organizations with state and citizens of a society as well as relationships ruling over them. To improve relationships of an organization o r company, first, relationships of that company with its outside environment should be identified in order to receive maximum return. In this paper, it has been tried to discuss the concepts of e-business and its various models and their mutual effect on each other. In the meantime, this article contains suggestions to Abureihan pharmaceutical company which in the following will be discussed in details. Keywords : Electronic business, Internet, Value chain, Flow facilitation, Global trade circle Selection and peer review under responsibility of Prof. Dr. Hafize Keser. ©2012 Academic World Education & Research Center. All rights reserved. 1. Introduction During the last decade development of Internet and E-mail has fundamentally changed companies' way of doing business and their relationship with employees, suppliers and customers. Customers and businessmen buy products and services such as two-thousand-dollar computers and plane tickets by Internet credit cards without even a need for any talking between representatives of buyers or sellers. Many companies allow their customers to follow their demand through Internet to see when the products have been forwarded or when they will reach them without a need to talk to buyer's representative. When companies such as Amazon and Priceline were * ADDRESS FOR CORRESPONDENCE: E-mail address : H_Tohidi@azad.ac.ir a a * Hamid, Tohidi, Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran