ASSIGNMENT FRONT SHEET
Qualification Edexcel BTEC Level 5 HND Diploma in Computing and Systems Development
Unit number and
title Unit 01: Business Skills for E-Commerce
Assignment due Assignment submitted
Learner’s name Le Phuc Hai – GC60371 Assessor name Nguyen Khuong Bao
Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature Date
Grading grid P1.
Assignment title ULKOM BICYCLE HIRE
In this assignment, you will have opportunities to provide evidence against the following criteria. Indicate the page numbers where the evidence can be found.
Assessment criteria Expected evidence Task
no. Assessor’s Feedback LO1. Understand the structure and aims of business organisations
1.1 assess an organisation’s core business functions
What type of organization ULKOM is and what is their main aim?
1
1.2 evaluate an
organisation’s business aims and show how they relate to
stakeholders
A full SWOT analysis table.
1
2.1 analyse the impact, including the risks, of introducing an e-Commerce system to an organisation
- The benefits to customers and to the organization of introducing the e-Commerce solution.
- The potential cost of implementing the system, any support staff that might be needed and what back-up
2
2.2 discuss the global impact of e-Commerce on society
Your discussion should include a comparison of two countries across the world. Consider for example, the impact of e-Commerce in the US and UK.
2
LO3. Be able to design e-Commerce solutions
3.1 investigate market potential for an e-Commerce opportunity
You must find organizations that are involved in the same kind of business. 3
3.2 evaluate current e-Commerce systems in use by organisations
3.3 discuss the financial implications of an e-Commerce solution 3 3.4 design an e-Commerce solution
Use block diagrams to fully design the structure for the proposed system. 4 3.5 evaluate the suitability of an e-Commerce solution 4
Assessment criteria Expected Evidence Feedback
(note on Merit/Distinction if applicable) M1 Analyse concepts,
theories or principles to formulate own responses to situations.
M2 Analyse own
and skills to define areas for development.
M3 Exercise autonomy and judgement when implementing established courses of action. D1 Evaluate approaches to develop strategies in response to actual or anticipated situations. D2 Evaluate and apply strategies to develop own knowledge, understanding and skills.
D3 Determine, direct and communicate new courses of action.
Summative feedback
Assessor’s
Signature Date
IV Grading Check: Comments if any: Agree
Disagree Modify grade to
“ULKOM BICYCLE HIRE”- is a bicycle hire business for many years and their main aim is served precisely the needs of people rent bikes with the unique needs of each individual or organization. Although small business but with the economic situation and developing technologies, all business activities of the company are processed by hand is a pretty big disadvantage for them. They will be very inconvenient in updating the business situation of their own items, including things like details about who to hire, the time of hire and return rental bike because they have three branch and one headquarters at different places, so they would be hard to summarize the situation to the company's business. On the other hand, each branch had own database and is operated by the way: when a client hires a bicycle from a branch, they can pay it at a different branch and companies still can update the status information about the bicycle's rental was over the phone. With the way on, the basis of the data of the company will be changed to one manually, so be very wasting time and easy to encounter errors.
This is SWOT analysis of company: Strengths:
There are many establishments in big cities like headquartered in Cambridgeshire and three branches in London, Manchester and Cardiff.
There are many bike rental experience for many years and has a good image in the market.
Using of multiple vehicles for service such as: road bike, mountain bike, touring bike, folding bike.
Flexibility in hiring, pay the bike was rented. For example, when a client hires a bicycle from a branch, they can pay it at a different branch.
There are a certain number of customers in many years. Weaknesses:
All of its business activities were written by hand. No clear classification of customers using the service.
The updated information about the vehicle is leased from the branch by telephone will waste time and easy to encounter errors.
Opportunities:
Have a central database with a web-based solution, will improve performance and reduce encounter errors.
Expand brands to other city.
Bicycles is a common vehicle for travelling in UK. Nowadays, it becomes
popular trend to all students because it's convenient and cycling is also help to save environment, your money pocket...especially keep fit.
Tourism development will promote service users increased. Threats:
Easy to lose customer’s information because the database has not been finalized.
Facing extremely competition by competitors working together the same services. In UK, there have a lot of companies which also have the service-hiring like British Bike Hire, Malvern Bike Hire Company, New Forest Cycle Hire, etc.
Easy to happen lose bikes with many different reasons. After hiring bike, the bike may be damaged or lost. Strengths - Opportunities:
Expanding more branches will help to enlarge business operations and raise the market share.
Organizing some programs to instruct about bicycle-renting process to make customers feel convenient when using. Beside, that will make friendliness between customers and the company.
Strengths - Threats:
Set up database systems and decentralize the security of data for the leader of each branch.
Build the database-backed up systems in case any worse situation occurs. Weaknesses - Threats:
Co-operate to the developed companies to overcome technical problems and reduce competition with others companies.
Weaknesses - Opportunities:
Enhance and improve equipment.
Organize some training courses for all staffs about database and database management.
With them have many branches in different cities so their market has been expanded, the number of potential customers and sales at each branch will also increase. Attached to it, they have been trading for many years, so it has been a large amount of regular customers, which is also seen as a form of advertising used by the person making the items of business, so that when the old customers or their friend in need, they immediately think of the company's services.
The company offers a variety of services for their vehicles is to diversify its users, so they came up with the vehicles for students, tourists, workers with different prices to conform with the above objects and purposes of each type of vehicle such as going to school, traveling, hiking, sports, etc.
The further development will require less investment than for bikes with no high amount of investment as other items, so the company can focus capital for investment in other services.
One e-commerce solutions for ULKOM to implement the objectives has some specific impacts:
Set up a data system about the company’s business activities especially the strong point of renting-services, so customers will be easy to find out necessary information about hiring such as kind of bicycles, features and rental specifically and particularly.
Between each branch has a connection through an official web page. All data of each branch will be updated continuously and accurately. Therefore, customers
can hire a bicycles in one branch and return it to another branch. Beside, it will be updated instantly.
By customers renting registers, company can grasp the demand of customers in concrete places, so they can arrange necessary quality of vehicles for each
branch and ensure the timely supply for them.
A customer can book to hire a bicycle through online web page and they must be paid 20% in advance. That will save time and make sure that customers will use services of company.
With the consequences of business processes which is restored and totalized in many periods, company can draw experiences and make plans for the next development trends.
When the customer’s information is available, the company will be easy to inform the promotions for them early and effectively.
Some risks relate to the implementation of the system: Risks about data:
Secret information of company can be lost.
Some webpages forge the prestigious of company.
The online payment system could be attacked by hackers. Virus can break into, destroy and reverse data totally. Sometimes, there has some fake registers.
Risks about technology:
The technique carelessness of the staffs when transmitting data or clicking mouse by accidentally could make all data be abolished and cause serious damages. Risks by objective factors like broken machines, bad weather…can paralyze the activities of company.
E-commerce has a wide and deep impact to society by two aspects: positive and negative. However, the nucleus is still the benefit it brings. E-commerce mark the
beginning of new system with high productivity. It is also great chance of trading to develop economy. That is the reason why most people invest a lot to E-commerce. Change society:
Consumers these days are able to use the online shopping to buy all their needs such as: books, clothes or even services.., and all are responded immediately. As a result, the society become modern and improved. In addition, the concept of e-commerce has brought a significant influence to the labour market. It creates job opportunities and the requirement of a high knowledge of technology such as: website designing, credit card deal, internet security, online marketing, etc... Impact to the economic:
E-commerce brings a diversified and plentiful commodity economic. A lot of different goods and services are provided when buying online.
Through the habit when buying or ordering of customers, inventory items can be controlled than traditional shopping. In addition, businesses are easy to grasp shopping trends of customers to produce more effectively. Beside positive points, e-commerce also brings many challenges. Growing up strongly of e-e-commerce in global market is required managers must have development trends which is suitable with the changing of customer’s demand, respond to the ability of connection and trade quickly, If not, the company will be omitted.
Impact to behavior of consumers:
In past, it took a certain time when consumers want to buy something. But now, they can buy online by their phone or laptop. It helps to limit time and the distance between the consumers and sellers. Therefore, E-commerce has changed the face of economy, it brings many new ideas in business and will also affect to customer’s behavior when shopping online in future.
“Internet sales by UK business had expanded from just £18.6 billion in 2002 to £125.2 billion in 2006 and by the following year had increased 30% to £163 billion;
of which the wholesale, retail, catering and travel sector was the largest at £79.4 billion.
The 2007 e-commerce survey also showed a significant increase in the value of internet trades.
Other findings were:
Internet sales represented 7.7% all sales (39.3% by value) by non-financial sector businesses.
Internet purchases by all non-financial sector businesses had risen to 30.4%. 70.3% of businesses had a website – 15% of businesses were selling online.” (http://www.e-service-expert.com/e-Commerce-UK.html)
E-commerce brings many benefits, however, there are still considerable problems. First is the customer's personal information. Until now, many people are still afraid of dealing via website. They are scared that their personal information will be
transferred from one service supplier to others because they don’t want to be
gathered in mail lists of businesses or annoying and time-consuming advertisement. They worry about details in their credit card will be released so money can easily be taken away due to the increase of cyberattacks even network with high security. Through analyzing, to guarantee the customers' information by e-commerce is a very important. Therefore, businesses must develop many solutions to secure information in economical efficient and appropriate way.
Present day, bicycles are a popular means to travel within the UK, and it is becoming common trend for people. This is quite understandable because cycling helps
protect environment, save your money, and also very good for health. With
population about 63.7 million people, internet usage per year up to 82%, profit from online sales about €110.5 billion in 2013 according to IMRG/Capgemini, this is big market for e-commerce business in general and in particular for ULKOM. Internet has growth in insane speed for several years in UK, so all transactions and payments
have been changed into online. Data is stored in the same online system and all the parts almost depend on Internet. Therefore everyone can find out any information about "ULKOM BICYCLE HIRE Company" easily and quickly, it is the best way to approach to customer now. On the other hand, with e-commerce solution, customers can consult in detail all the services of company, then, they can book to hire a
bicycle through online web page, and, all procedures will be completed in a few clicks, it is useful for everyone use services and save their time. So, ordering online will attract more people from every components in every ages, etc. Especially, to whom are busy with their schedule, finding information or ordering service online is first choice to save time and expenses, example: finding out information about kind of bicycles at store, booking and paying rental is completed easily by internet
without coming to store. It is very convenient for customer could return bicycles in any branches. With all of the above, UK has great potential market for e-commerce business, especially for ULKOM.
The business always comes with competition, the following are the comparison of three companies which also use e-commerce for business.
British Bike Hire:
They have a suitable ecommerce solution. In their website, we can see all the needs to hire a bicycle that one company should have. Moreover, they use the site to organize the event for bikers to take part in, it is useful to make up their own brands to compete and attract a lot of people. One of their strengths is that they can put the bike with one group of people at the same time, it is no in ULKOM, that help companies classify users to easily manage and delivery services fittingly.
Malvern Bike Hire Company:
Different with British Bike Hire, Malvern Bike Hire Company has a traditional business, but they have been optimized enterprise by focusing on key functions is bicycle – renting. And, consultants use the service by introducing some places which
have beautiful scenery and fascinating for those traveling with a reasonable price. They were voted "Best View in Britain" by Rambling Association.
New Forest Cycle Hire:
Each competitor has their own primary function and New Forest Cycle Hire too. They have a special function than the other sites, it is "routine". This function can help people to make a suitable schedule for all the activities they want to do in and type of bike. Follow that the company will send the kind of bike that suits their plans. “E-commerce is the process of managing online financial transactions by individuals and companies. This includes business-to-business (B2B), business-to-consumer (B2C) and business-to-government (B2G) transactions. The focus of e-commerce is on the systems and procedures whereby all the types of financial documents and information are exchanged. This includes online credit card transactions, cash, e-billing, e-cheque, electronic invoices, purchase order and financial statements. E-commerce is particularly concerned with the technologies that enable EDI-type functionality on the Internet.” (http://www.ukessays.com/). Transparent finance will help E-commerce work better. When selling and buying is performed easily, a lot of e-commerce transactions will be created. But e-commerce business is not that much easy as it seems, it still has several challenges for carrying out. E-commerce
business will be profitable if company have a large amount of customers. E-commerce have to focus on quantity, it requires the company have to always
enhance modern equipment and concentrate on the quality of service. And it is also depend on customer’s pocket money. To make customer willing to spend their
money to use company’s service, ULKOM need to provide best services for all customer and give them some lucrative offers likes with ten bicycles rent they will be free of charge one bike, round price tagging, bonus card, special home service delivery or company. ULKOM follows the hybrid model, which helps to increase their sales and overall revenues. The company can provide a new offer, like free credit system for its customers. The credit will be provided according to their credit score
or credit history and they will payback just a little bit money by weekly or bi-weekly or monthly. Collecting payment is very important in e-commerce. For making
payment, customer can use their visa, master card or maybe use their Paypal account because it is quite safe. After making payment they will get free home service delivery in UK.
Based on the information analysis and research above, as well as the needs of company owners, I will design an e-commerce solution for ULKOM, we have to propose a strategy business, which make us superior to its competitors, hiring-service will be available for 24 hours per week, 365 days a year.
The design of an e-commerce solution:
Database of ULKOM Website of ULKOM Cardiff branch London branch Manchester branch
Information of each bike
Domain name
The first solution of e-commerce is a set domain name for the company. First, use name or brand name of the company such as ULKOM.com, ULKOM.co.uk, etc. Without own domain name will restrict the business of participating companies exploiting customers on the Internet.
Web hosting
We must choose a web hosting with stability, speed and safety. Speed,
reliability is extremely important for the success of any online business. Each vendor web hosting packages with different capacities. Therefore, we must choose suppliers with the hosting package meets your needs. When we have need of expansion, we will easily upgrade them.
Web Design
Beautiful interface, innovative, modern, consistent with the brand identity of the business.
Integrated automatic functions on the site such as ordering, billing, reporting and management processes.
Create a login account for the customer to rent a bike.
Provides detailed information about these products help customers to easily choose suitable products.
Online Marketing
Use the strength of social network to advertise about website, for example: facebook, twitter, ...
Leveraging customer information, and use email marketing for advertise. Payment
Business analytics to support marketing decision making (including statistics/econometrics, sales response models, operational planning).
Built-in features of website promotion on the Internet, allowing optimization of product image promotions and enterprise.
Payment method
Optimize hiring-bike button for customer to do anything easier.
Providing diverse payment methods, flexible directly or indirectly through prestigious partners such as Paypal, Gateway, etc.
Customer Relationship Management (CRM) is a set includes: management, caring and set up the relationship between customers and businesses. Nowadays, every enterprises and most people are agreed that the way you treat to customer is the determining factor to the future destiny of the organization. So, similar to other companies who also have hiring-services, they need CRM solution appropriately and effectively.
According to me, taking customer's belief and increasing sale, CRM of company includes these factors:
Put the quality of service and vehicles to the top. Follow and check its quality regularly.
Create the prestigious about company’s brand name to customer who had or have been using the bicycle renting service by providing timely, quickly and fully with customer’s demand. Having special promotions for customers who have been using services regularly.
Look for, attract and take belief of new customer by studying the demand which is more and more diversified of customer to carry out new vehicles more suitable as well as some attractive promotions.
Based on customer’s data available, enterprise can analyze, build list of potential customers and longtime customers so that propose the caring strategy properly for customers.
Solving problems of customers arose fast and efficiently. Receiving feedbacks of customers to improve services better.
Follow the strategy of rivals in order to put forward solutions rightly and efficiently.
