E-commerce answer template

ASSESSMENT COVER SHEETUnit Number and Title

Unit 1–Business Skill for e-Commerce Level 4

Assessment Title Business Skills for E-Commerce

Course Title HND Computing & System Development

Assessment Code HNDCSD-Unit1/October13

Hand Out Date 11/10/2013 Hand In Date 16/11/2013

Lecturer(s) Internal Verifier

Sources of information

1. Course notes2. Recommended learning textbooks and Journals:

a) Chaffey, D. – E-business and E-Commerce Management, Fourth Edition (FT Prentice Hall, 2009) ISBN 0273719602

b) Courtland, B. and Thill, J. – Business in Action (Pearson, 2010) ISBN 0132546884

c) Hall, D., Jones, R., Raffo, C., Anderton, A., Chambers, I., and Gray, D. – Business Studies (Causeway Press, 2008) ISBN 1405892315

d) Laudon, K. and Guercio Traver, C. – E-Commerce 2010: International Version: Business, Technology, Society (Pearson, 2009) ISBN 0135090784

e) Malmsten, E., Leander, K., Portanger, E. and Drazin, C. – Boo Hoo: A Dot. com Story from Concept to Catastrophe (Arrow Books Ltd, 2002) ISBN 0099418371

f) Rich, J. – Design and Launch an eCommerce Business in a Week (Entrepreneur Magazine's Click Starts) (Entrepreneur Press, 2008) ISBN 1599181835

g) Ridderstrale, J. and Nordstrom, K. – Funky Business Forever (Prentice Hall, 2007) ISBN 0273714139

h) Stanwick, P. and Stanwick, S. – Understanding Business Ethics (Prentice Hall, 2008) ISBN 013173542X

i) Vise, D. – The Google Story (Pan, 2008) ISBN 0330508121

j) Wood, G. and Mellahi, K. – The Ethical Business: Possibilities, Challenges and Controversies (Palgrave Macmillan, 2002) ISBN 0333949935

To be filled by the student Student Name Lecturer

Student ID Group(e. g. BDM019)

HNDCSD-Unit1/October 13 1

Assessment Requirements An electronic copy of your assessmentmust be fully uploaded by the deadline

date and time. You must submit one single PDF or MS Office Word document. Any relevant

images or screenshots must be included within the same MS Office Word or PDF document.

The last version you upload will be the one that is marked. The file size must not exceed 20MB. Answer the criteria in order, clearly indicating the CRITERION number. Ensure that all work has been proof-read and checked prior to submission. Ensure that the layout of your documents are in a professional format with font

style Arial, font size 12 for the text, font 14 for sub heading and font 16 for main heading, line spacing 1. 5 and justified.

Use the Harvard referencing system and provide references [e. g. (Smith, 2011)] within the text and an entry in a reference list. Otherwise it will be considered as plagiarised work.

Ensure that you back-up your work regularly and apply version control to your documents.

Ensure that any file you upload is virus-free, not corrupted and not protected by a password otherwise they will be treated as a non-submission.

Your work must be original with the appropriate referencing

What is Plagiarism: Plagiarism is presenting somebody else’s work as your own. It includes: copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing or buying coursework from someone else and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the School.

Any student for whom it has been proved that they have plagiarised the work of others will be subject to the School's disciplinary procedures which could result in them being dismissed from their course of study

Your work will be submitted for electronic plagiarism checking. Any attempt to bypass our plagiarism detection systems will be treated as a severe Assessment Offence.


Assignment Brief:

‘Top world’ is an auction house that was founded in 2003. The company’s headquarters is found within Florida, America. The auction house handles the buying and selling of a variety of goods and services to businesses as well as consumers. The basic operation of the business is relatively simple. When a business/consumer places their goods or service within the auction house, customers will have an option to place a bid for the goods or service, or an option to buy now (if the business /consumer allows this). When a business wishes to sell their goods or services through ‘Top world’s auction house, they will set a target price for the buy now, or a starting price for their bid now action. Assuming that a customer agrees to this price, ‘Top world’ will charge a commission for selling their good/services through their company once the item or service has been bought. Every Friday, ‘Top World’ has released a bargain Friday, where they do not charge commission on any items sold from 9 am to 8pm (Start and Close time of company). This has helped to gain more businesses and consumers from their leading competitors. The director of ‘Top world’ has assigned you a job to develop an e-business solution according to the business nature. Before preparing a solution you have been asked to study the existing business model used by the organisation and prepare a report on following:

Business1. The company wants to start an online business to reach more of its

customers2. The company know that their main online auction competitors are

companies such as EBay and Amazon3. The company wants to attract businesses to the website4. The company wants to promote the benefits of Bargain Friday5. The age group of interest is 18–55 years6. The company wants to make it easy for consumers to search for information

related to various products and services (e. g. Bikes, Cars, Cleaning services.)7. A login system for users to login into their email accounts8. Stake holders are two British-born Americans who had a dream of building a

simple Business to Business (B2B) auction house which quickly transformed itself to Consumer to Consumer) C2C

9. If the company is happy with the fulfilled requirements, Top World will ask you to produce an E-Commerce solution for it


PART A. 1 – PASS CRITERIA ONLY

PassIn order to achieve a Pass, students must achieve all the Pass Criteria

Task 1

Top world is an auction house formed in the year 2003. The main company’s headquarter is at Florida in the

United States. This is company involved in the buying and selling of various goods and services to either

other businesses or also consumers. These happens when a business or consumers place order for a service

or goods, within the top world auction house customers will then have a platform to either bid for that good

or service or even buy the good or service immediately. This will happen if the business or the consumer

who placed the order allows it to sell (Ozlem & Nola , 2011, p. 271).

Top World Company sets various target prices for goods and services in terms of buy know, or even a

starting price that applies in the bid by the customers. The auction house will then charge a commission on

the good and service sold through the company’s platform. The main aim of Top world Auction Company is

to bring business closer to other business and consumers, closer to customers and even other businesses to

other businesses. This has led to the diversification of trade through online. This is evident in the company’s

Friday, offer that has enabled it to gain more customers and hence remain competitive in the market.

Here, the main stakeholders of the company are businesses, consumers and even customers. This is true as

the three parties actively participate in the company’s agenda of selling goods and services. This is because

there is a transaction of parties where one party states the price while the other party bids or buys the good

or service offered. The main objectives here are that all parties gain what they target when the transaction

does take place. When a business or consumer quotes a price, it is the work of the other business or customer

to find out whether they meet the required price. This occurs when the business or customer either accepts or

rejects their good or service offered at the stated price. Also, the seller of the good and service once the price

becomes accepted it will shift the possession of the ownership of the good or service. Thus, the objective


here is to maximize on the set target (Nabeel & Al-Qirim, 2004, p. 100).

SWOT analysis is a very important tool used in the understanding and in the decision making of all the

situations that are facing the business. This acronym stands for Strengths, Weaknesses, Opportunities and

Threats. SWOT is of crucial value to an organization as it helps in providing a favorable framework ion the

reviewing of strategies, company’s direction, and position (Anil, 2003, p. 288). A full SWOT as analysis

table includes two crucial areas these are external and internal factors. Strengths and weaknesses make up

the internal factors while opportunities and threat are external factors. The table is as below;

Strengths and

weaknesses

Here, is the internal

environment. That is

the company’s inside

situation.

These factors may

include; prices,

profits, skills,

adaptability,

performance, quality,

brands, infrastructure,

and reputation.

These factors exist

mostly in the present

times.

Opportunities and

threats

Here, is the external

environment. That is

the company’s outside

situation.

These factors may

include; fashion,

market factors, trends,

seasonality,

competition,

technology, law, and

economic factors.


These factors exist mostly in the future.

The SWOT analysis table can further be extended and explained in the following criteria as below;

Internal

factors(strengths/opportunities)

Reasons put forward

to priorities on

internals issues.

1. These are likely to

produce highest

returns on

investments.

2. Easy to implement

and save time.

Internal

factors(weaknesses/opportunities)

Options that are

potentially attractive

External(opportunities) 1. Produce good

returns due to the

viability of

implementation and

capability.

2. More stimulating

and exciting. This is

in terms of challenges,

benefits, and surprise

tactics offered.

Strengths or threats Here, it is easy to

counter and defend.

This is by;

1. Challenges

solutions planning and

implemented in no

time.

2. The investment is

safe and necessary.

Weaknesses or threats The issues here have a

higher risk potential.

1. Thus, risk

assessment is crucial.

2.Ignoring issues

where the risk rates


are low.

This model is useful in the business as it is a very flexible tool of analysis. This is thus useful in the marketing of the business and used by Top world auction house.

Task 2

Strengths of a business from the given SWOT analysis table occur in the form of prices, profits, skills,

adaptability, performance, quality, brands, infrastructure, and reputation. These factors prove to occur in the

recent times and thus affect a business in all manner of ways possible. The strength of a business mostly

determined by the business prices, in that, once the business controls the pricing policy, then it can reap

maximum returns from the pricing policy. This occurs where the business gives a range of prices on its

goods and services and then bidding and even the purchase of these goods and services occur from the

customers purchasing them (Ozlem & Nola , 2011, p. 271).

Also, profits mostly aid the business company to achieve the set goals and objectives. This occurs mainly

from the business ability to adapt to the economic times and remain competitive, thereby earning more

returns in terms of its produced goods and services. When a company accrues revenue that when deducted

exceeds its total cost, the business becomes favorable and thus profitable. Top world auction house has

adapted to this policy and, therefore, its strength in terms of the external factors, enables it to remain

competitive and thus rakes in millions of profits (Anil, 2003, p. 288).

A company’s skill level is another important factor that enables the organization top remains in business and

achieves its goals and various objectives. Skill level mainly depends on the organization workforce and

whether, its human resource thus able to recruit favorable employees. This enables the company to achieve

the desired levels of production because of the consistent and effective employees on its payroll. This

ensures that both the company and employees achieve their satisfaction levels where necessary.

Infrastructure is another major factor that affects a business development and survival in a market economy.

This is important to the company as the developments within a business organization improve the business,

in that there is room for other services or products production and even the production of new goods and HNDCSD-Unit1/October 13 7

services. With new infrastructure, there is new ways and space for the creation of more goods and services

in various unique ways (Nabeel & Al-Qirim, 2004, p. 100). This enables the company to sell the new goods

and services that become tailored according to customer wants, hence enable it to remain competitive and

thus of importance. A company’s brand proves crucial and thus has to remain guarded at all costs.

This ensures that the company losses no public image and thus, with a favored brand name or product it is

easier for an organization to prosper than that with a bad public image. Brand name or product protection is

mainly through ensuring that the organization quality in terms of the goods and services produced is at par

with the rules and regulations. This also ensures that the organization reputation remains guarded at all costs

(Lee & A, 2005, p. 200; Mark & Donald, 2005).

Below, is the Top world’s business strengths and how they affect the auction house.

Strengths

Prices setting This is through the setting up of prices online

on the various goods and services rendered.

Fast and easy communication network This is important as it brings customers close

to the goods and services and makes it easier

for consumers to search for goods services and

goods that they need.

Commission charge This commission applies on every product or

service purchased through the company and

thus important source of the company’s

strength.

Performance and skill This is evident as Top world has a bargain

Friday to all its customers. This ensures that,

customers purchase goods and services at

lower prices and thus increases a customer’s


satisfaction.

The above strengths aids Top world auction house in a major way as they ensure that the company remains

competitive despite the heavy competition from Amazon and even Ebay (Fisher, 2001, p. 22).

The two British born Americans vision of wanting Top world be a business to business relation is in line

with the business aim. With time Top world evidently has transformed in a major way. This has enabled it to

interact with consumers at a personal level and this has thus, brought about a facelift of the business

objectives from that of, business to business relation to the consumer to consumer relation. This relates to

the stakeholders initial interest of the organization. Thus, important for the business to maintain the relation

as it will ensure the organization's survival and competitiveness in the marketing industry (Lee & A, 2005,

p. 200; Mark & Donald, 2005).

Task 3

With the invention of the WWW or the World Wide Web in the year 1989, electronic internet based

commerce developed into reality from a mere idea. Various consumers browse the internet daily through

different catalogues in search of good orders, best offers in terms of discounts, and then pay for the services

or goods electronically (Fisher, 2001, p. 22). Financial institutions nowadays have an online presence that

allows their customers to manage and even access their accounts and transact financially. Various

companies or enterprises exchange electronic mails between themselves thus making it easier for

information to flow easily and hence of importance (United Nations, 2003).

Thus, carrying out business electronically on the internet proves an easy task as it is easy to cheat and snoop.

This is because security on the internet is not offered as much and thus, leads to acting under false pretense

and eavesdropping. This leaves the genuine customers and even businesses vulnerable to this security

breach. Consumers and E-commerce businesses find it a hard nut to crack because of the lack of control on a

person’s security data and the unauthorized use of data or information by third parties (Ozlem & Nola ,

2011, p. 271). Privacy issues in E-COMMERCE-commerce affect in the following major areas, technical,

organizational, regulatory, social, and economic perspectives. Privacy has proved to be one of the crucial


and complex issues that are legal whish face ventures of E-commerce. People view privacy issues in two

dimensions, in that there are those who view privacy as a fundamental right while, others view privacy as a

commodity that is tradable. Various society issues affecting businesses and consumers dictate how the

society members view the issues concerning to privacy. This may not be in unison at all times and,

therefore, leads to conflicts and disagreements (OECD, 1999, p. 4).

Privacy is a major concern to E-commerce in that the concern comes from a technical new environment for

both businesses and consumer’s. When it comes to business issues and social issues, with the use of digital

machine systems allows data capturing to occur at high rates and in terms of scope than ever before. This is

because sites that deal with E-COMMERCE-commerce gave great potential in collecting immense data

amounts about patterns of shopping, personal preferences, information patterns, and consumer’s likes and

dislikes. Technology has also in its own way affected the privacy issue when it comes to E-COMMERCE.

Surveillance cameras used in the data collection in the end have side effects that endanger a person’s privacy

policy (Nabeel & Al-Qirim, 2004, p. 100).

When it comes to Top world auction house, the management team must ensure that this issue to do with

privacy issue is dealt with totally. The management teams ensure that its customers get educated about

security issues when it comes to online transactions. Many people are ignorant to the fact that their privacy

issues violation takes places others only understand a little. It is hence important for Top world auction

house to conduct a security awareness campaign that enables all its customers, businesses, and consumers to

be in the know how. Top world business company can also ensure that its customers use encrypted or

cryptos that have regulations in the protection of all consumer’s, customer’s and businesses (Anil, 2003, p.

288). This ensures that only those who can decode the messages sent through email are able to decipher the

codes. This reduces to a greater number, the unauthorized personnel from accessing crucial information.

Another area of great concern is that to do with the legal issue that in one way or another affect privacy

issues when it comes to E-COMMERCE-commerce business. Here, there exists two issues namely,

harmonization and liability. When it comes to harmonizing Top world auction house, must ensure that its

laws move hand in hand with those of the national set laws (Lee & A, 2005, p. 200; Mark & Donald, 2005).

This is in terms of copyright, consumers protection, and signatures that are digital. In the issue to deal with HNDCSD-Unit1/October 13 10

liability, Top world auction house must ensure that a user’s liability rhymes with the security her or his

technical machine. There is also the confusing bit when it comes to technical components.

This involves software of the server, operating system, client software, and network transport. Thus, E-

commerce guarding is at all costs, and Top world auction house to ensure that the privacy issues rights

become regulated and implemented where necessary (United Nations, 2003). This will enable the

organization maintain a healthy relationship with its customers and helps to improve customer loyalty to the

company. Thus, top world auction house must ensure that it follows these regulations to protect their

consumers and businesses. Once this occurs, then it becomes very easy for the organization.

Task 4

E-COMMERCE-commerce way of conducting business is new through the internet. This medium has the

potential to alter economic activities radically and the social environment at large. This business affects

large sectors of the economy and these areas include; finance, communication and retail trade. These

combined areas make up to 30% of the gdp of a given economy. Others affected by the E-commerce impact

are the health sector, Education sector, and government sector.

Through the combination of various reforms and innovations, it has led to the development of E-

COMMERCE-commerce in an effective way. E-COMMERCE-commerce has proved crucial in that, both

the developed and the developing nations benefit maximumly from this initiative (Sean, et al., 2002, p. 1).

The developed countries have put extreme measures in the investment of E-commerce, and this leads to the

opening up to the outside world. While the developing countries struggle to acquire more funds for

investment in the E-COMMERCE-commerce industry, they do not remain behind as various policies

emerge which the developing countries use to their benefits. When it comes to issues about the economy, in

communication and finance, E-COMMERCE develops the two sectors of the economy, and thus a country

stands to benefit (OECD, 1999, p. 4).

The United States of America is the commercial and economic hub and epicenter of the universe. This is

evident, as the US has provided a platform in the provision of new ways of carrying out E-commerce; this is


also in conjunction with the implementation of the various business models in an innovative manner. E-

commerce expectations actively play in the US future growth, in its businesses, although there exists various

obstacles that limit E-commerce. Here, the projections of online shopping are falling short because of the

end of many dotcoms that cause investors and consumers to panic. The slow pace of the US wireless

communication causes this (United Nations, 2003). These issues prove less critical as the US long term

future projections appear bright this is because of its consumer spending online rate, demographic traits that

are strong, large telecom infrastructure, flexibility of its business models, and strong economy. This ensures

that the united States enjoy the huger portion when it comes to E-COMMERCE-commerce development and

investments.

Asia, on the other hand, is a developing continent. Here, the economic and social commission for Asia

works tirelessly to ensure that technology building and industrial development take place. These initiatives

promote cooperation and development in both the regional and national level. Also, internet spread and

internet based models of e-commerce rapidly change the nature of the econ0omic activities of Asia’s nations

and the various enterprises involved (Sean, et al., 2002, p. 1). Use of e-commerce in Asia proves critical

thus used in the procurement, manufacturing, financial, and distribution services.

The skill of worker’s in Asia has improved over time, and this is mostly because of the use of e-commerce.

In Asia, small and medium enterprise use e-commerce to develop and establish them. This led to easier and

cheaper way to establish their businesses as e-commerce provides an extensive platform for the Asian

businesses men and women.

It is thus clear that developing countries in Asia use this as a way of developing and in their establishment.

This is because it proves a cheaper and easier way. Whereas in the US more funds generated into e-

commerce and used to improve the country’s economy as the large sector of business get affected (Asian

Mass Communication Research and Information Centre, 2005, p. 124).


References

Anil, A., 2003. Web-based Education: Learning from Experience. Baltimore: Idea Group Inc.

Asian Mass Communication Research and Information Centre, 2005. Media Asia. Volume 32, pp. 1 - 300.

Fisher, S., 2001. Privacy By Design:. InfoWorld, Issue 4, pp. 1-27.

Lee, F. & A, G. P., 2005. Information Ethics: Privacy and Intellectual Property. Michigan: Idea Group Inc.

Mark, S. A. & Donald, T. D., 2005. Privacy and Security Issues in E-Commerce:. Review chapter for the

New Economy Handbook, Volume 1, pp. 1 - 16.

Nabeel, A. & Al-Qirim, Y., 2004. Electronic Commerce in Small to Medium-sized Enterprises:

Frameworks, Issues, and Implications. Auckland: Idea Group Inc.

OECD, 1999. Economic and Social Impact of E-commerce:. PRELIMINARY FINDINGS AND RESEARCH

AGENDA, Issue 40, pp. 1 - 169.

Ozlem, B. & Nola , S., 2011. Impact of E-business Technology on Public & Private Organization: Industry

Comparison and Perspectives. 1st ed. s.l.:IGI Global.

Sean, T. M., John, L. K. & Kalle, L., 2002. Globalizations of E-Commerce:. Growth and Impact in United

States of America, pp. 1 - 29.

United Nations, 2003. ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC:.

INITIATIVES FOR E-COMMERCE CAPACITY BUILDING, pp. 1 - 234.


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E-commerce answer template