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Unit 1 Business Skill Sample Assignment
A group of people working with the same ambition to achieve a certain goal form organisation. This assignment is the research on the core business functions. This means that the success of business environmentis not individually dependent of how well each department of the organisation works but also on how well the whole organisation’s departmental activities are coordinating with each other to achieve the target and conduct the core business. This is the explanation of the stakeholders and how the business market is analysed so that the organisation can stand in the business with the other companies.
This assignment will talk about the current market trend of e commerce is which is valuable in enhancing the business and makes it convenient for the customer to choose and buy the variety of things online.
With the changing time the market trend and business styles are also changing on a positive side. The customers feel more convenience in the current scenario for shopping and the companies are earning more profit with the latest methods of business.
LO1. Understand the structure and aims of the business organisation:
1. Introduce and Analyse the Core business functions of the company.
Core business function in the business is the collaboration of the pooled knowledge and technical capacities to make it competitive in the market. We will discuss about the core business function of the ‘Ryman’ which is a stationary outlet in London with 230 outlets nationwide. It was established in 1893. According to today’s scenario it has planned to open an online version of his shop to generate his own revenue rather than working physically. The core business involves many departments collective work in Ryman stationaries in UK:
Research and development:The Company’s research skills team has thoroughly researched the market and requirements of the customers and provided the convenient and professional source of stationary supplies.
Manufacturing, production and Operations:Ryman’s strategic team plans about the manufacturing, how the services will be produced and how the operational plan will be implemented in the market.
Marketing, sales distribution and customer support:Ryman is famous for its customer services. The marketing principles training, distribution and customer service training is provided in the organisation which makes the employees to be valuable and encourages them to come up with innovative ideas. As additional customer services some photocopier, binding, fax booth, lamination and even Post office for their customer’s convenience.
Finance and Accounting:The online business for Ryman stationaries in UK has increased its sale by 24.9 Per cent. The finance and accounting department’s efficient job has made the strategies to handle the finance and accounting very brilliantly.
Business Services:Ryman has an ambition to provide the best services in the market for the convenience of their customers in Retail as well as online shopping. The regular maker and organisational analysis makes the company to bring out the best in it and maintain the image for its best service providers. (Ryman, n.d.)
2. Every Business has Stakeholders who influence its operations in Different ways and to varying degrees. Identify the Stakeholder of the company and explain their expectations.
According to the type of the business of the organisation, the stakeholders related to them have their own expectations and earn their profit out of this. The importance of the stakeholders in an organisation determines the degree involvement in the business planning of the organisation. (Li, n.d.)
There is no generalisation for the stakeholders but they come from five Groups.
The expectations of each stakeholder from Ryman Stationary UK are:
With the regular surveys of the market and according to the changing demands of the customers, the expectations of the stakeholders change. The company needs to work by considering the changes and with an ambition of fulfil the stakeholder’s needs. (Chartered Quality Institute, n.d.)
- Shareholders:Shareholders of Ryman stationary wants the company to be loyal to them and involve them by transferring the information about the business activities. They expect the business to be highly profitable to earn the good returns. (Be the best in business, n.d.)
- Customers:A Customer buys the product according to the requirements from the shops or online. What the customer feels about the product after utilising it is the key aspect of any company’s business success. The customer expects to spend his money for worth. He expects the best quality and best customer services. Ryman Stationary is famous in UK for its best customer services. (Business Case Studies, n.d.)
- Employees:The employees have expectations for the careers from the company for which they work. Ryman Stationers run the retail shops and online shops all over the UK with thousands of employees working for them. The company fulfil their expectations by polishing their skills by regular trainings, timely wages, safe working conditions, explanation of job responsibility and company’s policies. (Thompson, n.d.)
- Suppliers:The suppliers introduce the best products and analyse the requirements of the customers. The Suppliers of Ryman stationers analyse and help the company to supply and provide the best and latest stationary material. This enhances the sale of the company as well as the production of the supplier. (Abbott, n.d.)
- Society:All the commercial decisions are taken for the benefit of the society and to increase the business with the help of the society. The Expectation of the society from Ryman Stationers is to provide them the best services according to the requirements. Society expects the Ryman to be environment friendly and the company is working on the path of conserving the environment. The society expects the Ryman to work on its ethics and be loyal to its customers. (Bowett, n.d.)
3. Analyse the Competitive Market of the company using PEST/SWOT Techniques.
The companies need to cross some steps and face certain factors to establish the business in the market. The PEST analysis of Ryman stationary UK explains the framework of the macro environmental factors utilised as the environmental scanning components of strategic management. The four factors are:
- Political techniques:The political impact and policies put a remarkable impact on the business. It is important for the company like Ryman stationary UK to comprehend the legislation and public policies like taxation, hiring, labour law, environmental law, trade restrictions and their implication on the business.
- Economic techniques:The Ryman Stationary has a R&D department to recon the economic techniques like dealing with recession, income distribution, unemployment, economic growth, so that the company’s activities are designed accordingly.
- Social Techniques:Since Ryman deals with the stationary products all over the UK. It has a market dealing with the products used in office and home as well. The company has a reputation as best service providers. This shows that it utilises its social techniques to enhance the business.
- Technological techniques:Technological techniques in the business have demands change in the traditional business. Ryman stationary has tried to match up with the changing trends by opening an online shopping site for their products. Here the customers book the products of their requirements. The technique has got successful and enhancing the profit of the company. The company has followed the technology legislation. (MiddleBrook, 2012)
4. Based on the outcomes of the PEST/SWOT analysis discuss the aim and the objectives the company should have to meet the Stakeholder’s expectation.
This Analysis is conducted by the company to overcome all the issues prevailing the current business environment. The PEST analysis comprises of political, Environmental, Social and technological factors. The Ryman will use its effective strategic planning to meet the expectations of the shareholders, employees, society and suppliers. The change in taxation will directly affect the shareholders, labour laws to employees, environmental laws to society and trading laws to suppliers. The strategic team will make strategies to face all the challenges created by the political factors in advance.
Economic Techniques of Ryman will directly affect the expectations of the stakeholders. Here the financial planners will make the company’s planning policy to meet up with all the upcoming changes in economy, recession etc.
Ryman will utilise the social techniques to enhance the business by increasing the number of clients for the organisation with its good products and services.
As today’s scenario is a high tech. people want to buy the products online to eradicate any hassle in the lives. The expansion of the online stores will help the people to have more options of buying the products after comparing it with other brands. This will reduce the business cost and earn more profit.
L02 Understand the impact of e-commerce
1. Analyse the impact of introducing an e-Commerce system to the company. Discuss the advantages and potential risk in different elements of the business model (including procurement, payments, order fulfilment, sale, etc.)
Electronic commerce or e-Commerce refers to buying and selling of goods and services by the medium of Internet. It comprises of consumer-to-consumer, business-to-business, and business-to-consumer transactions. These types of transactions include supplier purchases, online retail sales, web-based auctions and online bill paying. Electronic commerce utilizes various types of technologies like electronic fund transfers, electronic data interchange, e-mail and credit cards.
Benefits of E-commerce to ‘Ryman’
- Expansion of organization’s market at national and international level.
- Small businesses can compete against bigger companies.
- Companies can procure various materials and services from suppliers, rapidly and at lower cost.
- Lowering of inventories.
- Lowering costs of telecommunications.
Benefits of e-commerce tothe customers of ‘Ryman’
- E commerce enables consumers to make more choices than they can otherwise make easily.
- Consumers can conduct quick online comparisons and buy cheaper products.
- Customers can shop and make transactions 24 hours a day and seven days a week from all locations.
- Consumers can get customized products, at competitive prices.
- Relevant and detailed information can be delivered within seconds.
- Electronic auctions can be made through e-commerce systems.
Limitations of e-commerce
- Tele-communications bandwidth required may be insufficient.
- Special Web servers along with network servers are required.
- Many users might find Internet accessibility required for e-shopping as expensive or inconvenient.
- Legal issues: A potential limitation of e-commerce transactions is the international legislation. For instance, an e-commerce business in UK one has to be 18 years of age to buy alcohol their but in America one has to be 21 years to buy it. So an American boy of 18 years can also buy alcohol from a UK based market.
- Customers resist changing from a real to a virtual store: Some buyers feel that e- transaction might be unsafe and not trustworthy so as to hand over their private details.
- An insufficient number of sellers and buyers: Perception amongst the customers exists that e-commerce is expensive and unsecured. Therefore sufficient number of customers does not exist for profitable e-commerce operations.
- Intangibility and lack of human contact: Some customers feel that online shopping is impersonal. (E Commerce Unit 8, n.d.)
The Common Issues in Online Business Operations
The following are three potential risks that online businesses can face:
1. Security risk
Security risk arises from hacker and virus attacks which can disrupt the business operations and then lead to loss in sales revenue and customer confidence.
2. Procurement and Payment risk
These risks exist when transactions are made over the Internet and the buyer’s identity cannot be established. This leads to payment disputes. Such situations commonly occur when payments are made through credit cards via internet. Other situations for payment disputes might arise when ordered goods do not reach the customers on time, when there is disagreement over the conversion rate of currencies, and when goods received do not meet the customer’s specifications.
3. Fulfilment risk
Fulfilment risks in regard to physical goods refer to problems such as goods not meeting the mentioned specifications, defective goods and delayed deliveries. Digital goods fulfilment, performed through electronic means is associated with risks like illegitimate manipulation of information, hijacking or duplication of copyrighted content. (Anon (I), 2011)
2. Discuss the overall impact of e-Commerce on the company with future projections, where appropriate.
There are intense, far-reaching and deep-seated impacts of e commerce on enterprises all over the world. Today customers are able to do shopping from their comfortable homes, with the advantages of comparison of products and services of various brands available all over the world. The e-commerce sales have forced many of the traditional businesses to enter into the global online market. Following is the overall impact of e-Commerce on ‘Ryman’ with future projections:
Globally Expanding Markets
The research market studies made currently reveal that there is a growth of twenty percent of e commerce sales globally every year. With one-third of the population of the world turning towards internet, around one billion people are expected to make shopping online every year, via e-commerce websites for products like travel packages, clothing, fashion accessories, books, and electronics. The global e-commerce forecast authorities reveal that the biggest e-commerce growth in the world is found to be in North America, especially from the US and Canada. The other growing countries in terms of the global e-commerce market size are United Kingdom, Latin America, Germany, France, Sweden, Russia, Poland, Spain, Turkey, Saudi Arabia, Japan, India, China, and Morocco.
Online Businesses provide an edge over traditional businesses.
Businesses need not now depend on a brick-based infrastructure. Development of a website can now help the companies to reach consumers and potential target market globally. Businesses today have the opportunity to attract consumers across the world and achieve the desired growth by grabbing the advantages of the impact of e-commerce in an effective way.
The effects of globalization e-commerce are not temporary and short termed; instead they will prevail and grow during the future decades. As a matter of fact in the coming future, only those business organizations will survive that adapt themselves to market changes and comprehend the need to adapt themselves to novel marketing ways to reach the targeted market. (Shah, 2013)
LO3: Be able to design e-Commerce solutions
1. Evaluation of the current e-Commerce systems in use by the company and similar businesses
E-commerce is a novel service where commercial activities are conducted via Internet. The systems supporting such activities are the e-commerce systems. These systems provide the sellers and the buyers ; the ability to make transactions of goods, make payment orders, provide service maintenance, generate prices subject to varied conditions like discounts etc.
E-commerce systems perform the following functions:
- Watchful of new entrants;
- Prompt processing of orders;
- Monitor the goods availability in a warehouse;
- Preparation of accounting records;
- Creation of invoices;
- Creation of audit reports;
- Controlling the customer services and delivery. (IT Source, n.d.)
Electronic commerce systems currently used in “Ryman” are:
- Electronic funds transfer systems
- Electronic checks payment system
- Electronic credit cards payment system
- Electronic wallets payment system.
- Mobile commerce systems
- Supply chain management system
- Electronic data interchange (EDI) system
- Online transaction processing system
- Automated data collection systems.
- Inventory management systems.
2. Analysis of market potential or opportunities for e-Commerce expansion.
Market potential or opportunities for e-commerce expansion in “Ryman”
The advantage of introducing e-commerce in the business of “Ryman” is that the products will be available to consumers all over the world. This would increase the number of customers and in turn will increase the sales revenue of the company.
24/7 transactions and no requirement of store staff
Online trading means there is no requirement of store staff to run the shop and transactions can be carried out at anywhere and anytime and all orders and transactions can be acknowledged automatically.
Low start-up/ running costsBuying or renting a place, hiring staff, purchasing stock, and paying for utility costs are involved in setting up a traditional store but setting up an online store has relatively low initial costs when compared to a traditional store.
Opportunities through PricingGenerally, price difference is there between the traditional and online stores. A product is cheaper in online stores because online stores do not bear costs like rent of shop space, employment of sales staff and utility bills. Thus online stores like “Ryman” save money and pass on the advantage to the customers by providing cheaper things relatively.
Fluid pricingOnline stores like “Ryman” can take advantage of the fluid pricing system which involves increasing and decreasing prices in response to changing circumstances and availability of stock. This is not possible in traditional stores. (E Commerce Unit 8, n.d.)
Building brand and generating demand:Online marketing tactics like social media and informational sites help “Ryman” in generating awareness and demand for the brand.
Testing and learning target markets:For markets where retailers are looking to expand, e -commerce is an important medium to gain insight into the price sensitivity and consumer preferences. It can also serve as a low-risk medium to test the market and decide the strategy of expansion (Deloitte, n.d.).
3. Discussion of the financial implications of future e-Commerce expansions or solutions.
For the development or expansion of an efficient e-commerce solution in “Ryman”, specific skill sets and good knowledge base is required. Customer relationship management, Product catalogue architecture, stock management, accounts integration, and multi-lingual support are all needed when e commerce solutions are developed. Development of an effective e-commerce solutions' demands a consultancy-led approach on case-by-case basis; thus tailoring them to suit the needs of the client. Expenses are incurred in the development of these elements. (Red Snapper, n.d.)
Financial considerations must be addressed in “Ryman” to lessen the overhead expenses and maximize the revenue of the company’s online business. Financial expenses are incurred because of the following factors taken into consideration while designing the solutions.
- Website hosting: Website hosting service is essential in starting an e-commercebusiness. Balancing a quality service within affordable price for stable profit margin is a challenge.
- Increasing the visibility through SEO: SEO is generally the tactful integration of phrases and keywords throughout the web content to draw the most frequent hits from results of search engine.
- Advertising: Posting advertising on the websites is a good way to draw clients and make profits but that too has financial implications. (Murray, n.d.).
In the last few years, retailers have turned towards a novel growth engine by making an entry into global markets via e-Commerce. In today’s globalized market, e-commerce helps in a lowering risk, bigger avenues, testing, and penetrating into international markets. This is a consumer focussed approach and its proper execution will help in going a long way in differentiating brands and building customer loyalty.