TASK 1
Assess core business functions of Big Mart Supermarket [1.1] BIG MART
INTRODUCTION:
Big Mart is one of the finest supermarket chain of Nepal. The first store was inaugurated on 10th July of 2009 at the leading mall of the country – City Centre Mall, Kamalpokhari which occupy the area of 11000 sq. ft. Till today it has already launched its more than 20 branch all over Kathmandu and Pokhara which includes Sinamangal, Kalanki, New Bus Park, Mid Baneshor and Dholahiti and many branches in other places too. Big Mart deals all the groceries and vegetables item especially focusing the people who prefer to buy all the groceries and vegetables item under a same roof at a reasonable price for their quality product.
BUSINESS FUNCTION: The Procedure that an organization must perform in order to achieve organization goals or mission of an organization is called business function. ( BusinessDictionary.com. (2017))
The core business functions of the Big Mart Supermarket are:
FIGURE 1.1 [CORE BUSINESS FUNCTION OF BMS]
Sells and service: Launching a supermarket doesn’t plant a tree for money. There are many other things that prevent other people diverting from the store. Big mart especially focuses to increase their client by providing quality product through quality sells and services. Many clients often get problem on finding product, getting their preferred quantity etc. In order to prevent those problems Big Mart hire highly qualified and trained employee. Big mart also strictly instructs their employee to figure out those problems of their client and solve immediately.
Product inspection: Product inspection means the inspection of the product that the organizations are selling to their customer. It also means quality control. Big Mart being a retailer, always buy and sell quality groceries and vegetables. If the product kept by them is somehow damaged due to different causes, the impact might go wrong to the customer and there might be the decrease in the number of customer. So Big Mart every time takes care about their product quality and always asks their customer for the suggestion, so that they can apply it for the betterment of their quality goods and services.
Expand: Expand refers to the increase in size or upgrade of an organization. Expanding of an organization is an important aspect for an organization which is running smoothly. Expanding not only increase the customer, social reputation it also helps an organization to sell more product and create more profit. It is the mandatory for a store to know the desire of the customer and to introduce them the new product according to their wish.
Till the date it has already established its more than 20 branches in different location of Pokhara and Kathmandu and also aims to launch its more stores at different places in coming days.
Accounting: The procedure or systematic methods to record, summarize, interpret, and communicate financial records is known as accounting. It helps to determine either a company is moving towards success or failure.
BusinessDictionary.com. (2017).
The account department is responsible for keeping the records of sales, profit and other financial aspect for the Big Mart Supermarket. The records maintained by accounting department are monitored by the administration and then apply solution if there is any problem.
Conclusion:
Task 2
Evaluate Big Mart’s aims and explain how they relate to stakeholders. [1.2, M1]
The commercial goal that the organization wish to achieve is known as aims of an organization. Objectives are the task and mission that the organization should complete to achieve the aims. So, Aims and objectives are interlinked in an organization.
The aims of the Big Mart Supermarket are listed below.
Profit: Profit is defined as the financial gain that is realized when the revenue of company gained from different aspect overcome the amount of cost, expenses, tax. The profit gained by an organization is directly earned by company owner, shareholder who can decide either he/she invest or not into another project.( Staff, I. (2015, February 27)).
Aims of an
Organization
proft
Customer
Satisfaction
shareholder
Increase in
Sells or
provide
services
Creating a profit is one of the most important aims for an organization. When an organization started creating profit then only it is able to expand its branches and increase its shareholder. The key profit strategy of Big Mart is to make more customers and introduce them their new product, because making more customer directly related to selling more and more sales means creating more profit. Another key strategy of Big Mart is to buy the product in huge amount at low price and sell it on retail.
Increase in shareholder: Organizations are built to be expanded. In order to expand it must have higher amount of profit or it must increase the shareholder of its organization by which they will increase the investment amount and expand their organization. In case of BMS, it has initially opened its branch at Kamalpokhari and now it has more than 20 branches in the most popular city of Nepal.
Sells and provide services: Sells and service are the always the main objective of an organization because more sells is directly proportional to the huge amount of profit. At the initial phase BMS only sell the groceries but due to the increase of the customer and their growing demand it has also increase the goods. Due to the increase of their items, they are again the increment in customer and their demands.
Survival: Survival is the conditions which most of the organization face during their initial period or while they are new to a market. Survival phase is also the important phase where the organization should be tough. The calmness and devotion to their business in this phase decide the future of the organization. In context of BMS, being among first supermarket there were less trend to buy on a supermarket. During initial phase, it uses its different business tactics to survive the phase.
expanded the branches where the customer can be in touch and upgraded its item according to the customer wish.
Stakeholder: A stakeholder is a party that has an interest in a company, and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees and customers. However, the modern theory of the idea goes beyond this original notion to include additional stakeholders such as a community, government or trade association. [http://www.investopedia.com/terms/s/stakeholder.asp]
Internal stakeholder: The type of stakeholder who are directly related with an organization is known as internal stakeholder. The profit and loss of an organization create great impact on them.
The lists of internal stakeholder are:
Employee: Employees are those who work for the organization on a certain wages.
Manager: Manager is a person who is responsible to manager the complete organization.
Investor/shareholder: Investors are those people who have invested certain amount of capital in an organization.
Board of director: The group of person whose responsibility is to control all the activities of an organization. They are mainly among the shareholder.
External stakeholder: The type of stakeholder who are indirectly linked with an organization is known as external stakeholder. Suppliers, customer, creditor are the example of the external stakeholder. They have no relation for the company profit or loss. The lists of external stakeholder are:
Suppliers: Suppliers are those who responsibilities involve supply of raw materials and the equipment needed in an organization.
Clients: Clients are the person who will be buying the product of an organization either on huge scale or small scale and the consumer of the product.
Creditor: The organization who main duty is to provide the financial help or fund. Banks, financial organization are the example of creditor.
Competitor: Competitors are those who will be competing with the other one. Mediator: The marketing chain who will be purchasing the goods from company
and distributing to the customer. They are also the agent who will be acting as interpreter between company and client. Broker, retailer, wholesaler are the example of mediator.
// aims relate to stakeholder is missing
Task 3
Analyze the impact, including the risks, of introducing an e-commerce system to their institution.
The process of buying and selling of goods, product or services through the electrical network medium, basically through internet is known as e-commerce. It is also termed as Electronic Commerce or EC. E-commerce has become the growing trend for buying and selling goods and services. People all over the world can get easy access over the product and the seller can also meet the global market without big financial investment. Consumer is allowed to choose and compare among many seller. There are six basic type of e-commerce and they are:
Business-to-Business (B2B) Business-to-consumer(B2C) Consumer-to-Consumer(C2C) Consumer-to-Business(C2B) Business-to-Administration(B2A) Consumer-to-Administration(C2A)
Positive impact
1. Energy consumption: As we know that, for an e-commerce business the owner doesn’t require to have a shop in a supermarket or a trade mall. The owner can easily store the product in his own shelter. Consumer also does not require going to each shop select the product. He/she can easily get access to the product and even doesn’t require going to store to get the product. As e-commerce reduce the use of warehouse and the fuel cost of consumer to travel to the store. Energy consumption is supposed to be the positive impact left by e-commerce.
2. Cost reduction: Consumer directly get the product through owner which means that there is absence of mediator such as middleman or retailer between consumer and seller. Ware house is also not needed for an e-commerce based organization. It justifies that there is no any excess cost for rent, maintenance of warehouse and middleman’s commission and the seller doesn’t create huge margin in their product by which the cost of product is directly reduced.
3. Online advertisement: Most of the company spends a lot in advertising. They advertise their product in TV, Radio, magazine and newspaper which is supposed
Positive impact
energy consumption
online advertisement
consumer impact
cost reduction
negative inpact
privacy
security
price wars
to be expensive. In context of e-commerce business, they do not necessarily require to advertise in internet. People now-a-days surf internet rather than watching and listening TV and radio. Advertisement in internet is supposed to be cheaper and can gain the attention of most of the customer.
4. Consumer impact: Consumer impact is the most important positive impact for an e-commerce business. The buyer can excess the great choice of product in the great price. As the e-commerce sites are opened 24 hours, people can select the product at their free time; they don’t even have to travel to the store and can buy their wish at their couch. The trial facility that the sellers are launching now-a-days has brought a great revolution in e-commerce in which they can easily return the product if they don’t like or they changed their mind.
Negative impact:
1. Security: Security of the costumer personal information is one of the most important negative impacts of e-commerce business. Most of the e-commerce allow user to create profile, where the customer must enter all their personal information including address, date of birth.
2. Privacy: Another negative impact of e-commerce is privacy of the consumer confidential files. Some sites offer cash on delivery but some of the e-commerce site ask to pay before the delivery of the item. While paying they should give them their credit card or A.T.M card pin. Online transaction is supposed to be insecure where the pin and card number can be accessed by third party. Hence the costumer must be aware of these things before giving them their card number and pin.
3. Price war: Even though the customer can compare the product and price before buying. This service may hamper the seller because of the growing market trends of e-commerce where the competitors are decreasing the rate to gain the attention of the customer.
responsibilities. But in context of e-commerce Company and according to their home delivery service, if the product is mistakenly damaged, the product should be exchanged. Which can create bad experience to customer and they will not be coming back to purchase the item with them again.
Task 4
Discuss the global impact of E-commerce.
Some of the global impacts of e-commerce are listed below:
Consumer impact: Consumer impact is the most important positive impact for an e-commerce business. The buyer can excess the great choice of product in the great price. As the e-commerce sites are opened 24 hour, people can select the product at their free time; they don’t even have to travel to the store and can buy their wish at their couch. The trial facility that the seller are launching now-a-days has brought a great revolution in e-commerce in which they can easily return the product if they don’t like or they changed their mind.
Social impact: The impacts made by commerce are the social impact of e-commerce. Social impacts are categorized into two categories. They are:
1. Positive impact of e-commerce in the society:
I. Time saving: As a person wish to buy a product through an e-commerce site s/he can buy easily comparing price among different sites and hence can buy it sitting at their couch.
II. Informative: Consumer can get much information about the product as it is listed in the product description.
IV. Confortable for disable and aged people: Disabled and aged people shouldn’t rush in to store because they delivered it to their door.
2. Negative impact of e-commerce in the society:
I. Unemployment: As the e-commerce organization any sorts of warehouse, store and large number of employee. Hence it increases the unemployment opportunity.
II. Crime: Confidential file such as name, address, card number and pin are given to such sites. There is increase of the theft of such information.
III. Return and complaint: Most of the people is delivered the item in defected form. In this case the company must exchange but most of the sites refuse to exchange which make the economic loss of the customer.
Environmental impact: E-commerce is a type of business performed electrically which means that there is no any direct interact between consumer and organization. We can also called e-commerce as paperless business as well as digital commerce. People are not compulsorily needs to visit the store as they can get in into their own apartment or studios hence the transportation fuel efficiency is also reduced as well as the carbon emitted by vehicle is also minimized. There are other different minimizations of energy such as minimum use of fancy lights to attract customer, and also the minimum use of plastic polythene as they are packed at a paper packaging.
traditional system of commerce. Hence it helps a lot for owner of such sites to boost their economic progress.
Conclusion: Above mentioned are some of the global impact of e-commerce which includes convenience, time shaving, less pollution, increase in economy as its positive impact and increase in crime rate, unemployment as its negative impacts. As positive impact is lagging negative impacts behinds consumer are motivated to use e-commerce.
Task 5
Investigate market potential for an e-commerce opportunity. [3.1, M2] Market Potential:
The maximum predicted sales revenue of a product is called market potential [
http://www.businessdictionary.com/definition/market-potential.html]. It can also be defined as the total market size for a product for specific period of time is known as market potential. The method of measuring market potential is basically by calculating sales volume. It is mandatory for a company to figure out market potential of a company before launching a product[http://study.com/academy/lesson/market-potential-of-a-product-definition-analysis-example-quiz.html].
Introduction to Bigmart : Bigmart is one of the top leading superstore responsible for selling quality products which was first inaugurated on July 2009 at City Center-Kamalpokhari. At present it has already established more than 20 branch all over Nepal locating at Nepal’s most popular business junction Kathmandu and Pokhara targeting to such people who has busy schedule and tends to buy all their items at a single building. Importance of analyzing market potential of Bigmart:
Figure out its market share
To analyze market of certain product
There are some of the factors responsible on affecting market potential of a company and they are listed below:
Potential customer Market demand Competition
Potential customer: Potential are those type of consumer that a company target the most. Potential customers act as an important factor to increase the market size of a product. If a company launch a product without having research on their potential customer may bear loads of loss. Hence, research on potential consumer can helps company to flourish their company in market. In context to Bigmart, people who has busy schedule and wish to buy all of their goods are supposed to be their potential customer.
Market demand: Market demand is the demand of certain product in specific area. Research on market demands helps an industry on calculating total amount of product they should be producing in a certain area. In some cases, Company do not investigate
their market demand and produce more amount of goods which in future will be bearing loads of loss.
Competition: Competitors are the biggest threat for a company. Competitor may alters ones business or may flourish which is related with characteristic, size and aims of the organization. To get first in market, a company must upgrade and update as their customer wish. Sometime collaborating with competitor can also enhance or boost their market size.
Task 6
Evaluate current e-commerce systems in use by different organizations. [3.2]
E-commerce is electronic method of buying and selling goods. It is also termed as electronic commerce. This is totally different than traditional way of purchasing goods and services. People usually go to different store and vendors to buy and sells goods but in context with e-commerce, people don’t have to necessarily go to the store as they can purchase it through their respective website and get into their own doorstep.
Before 2000 AD, there were almost minimum uses of such e-commerce platform or sites in order to purchase and sell goods but after 2000 AD due to its convenience it has lagged traditional commerce behind it. Some of the organizations are also motivated to make their service online rather than offline due to deep penetration of internet services in human daily routine. There are six basic type of e-commerce and they are:
Business-to-Business (B2B) Business-to-consumer(B2C) Consumer-to-Consumer(C2C) Consumer-to-Business(C2B) Business-to-Administration(B2A)
Consumer-to-Administration(C2A)[http://bloomidea.com/en/blog/types-e-commerce]
Some of the most popular and commonly used e-commerce sites are: ALIBABA Group
AMAZON EBAY OLX
SASTODEAL
ALIBABA: Ali baba group is one of the most popular e-commerce website which was launched by Jack Ma and Peng Lei whose headquarter is located at Hangzhou,Zhejiang: China.It consists of 50,092 emloyee as per 2017 record. Its subsidiaries are Alibaba.com, Guangzhou Evergrande Taobo F.C, Tmall, UCWeb, AliExpress,Juhuasuan.com,Cainiao and Alibaba Cloud.It is considered as world’s largest retailer of April 2016 operating in almost 200 countries. Alibaba also generates more gross merchandise volume(GMV) than E
.
Bay and Amazon.[ https://en.wikipedia.org/wiki/Alibaba_Group]Companies related with ALIBABA Group:
Alibaba.com: It is the primary company of alibaba group and is also two world’s largest B2B trading platform for financially low leveled organization.Alibaba.com is especially used as English language operating among 240 countries whereas 1688.com is operated as Chinese portal for domestic trade.
Autonavi: Autonavi is navigation and location based service provider launched at 2001 by Hou Jun. It consists of 2000 employee. It was then acquired by Alibaba group in the year 2014.Its annual revinue is RMB 80,000,000. [https://en.wikipedia.org/wiki/AutoNavi]
Taobao: As like Alibaba.com Taobao is also online shopping platform but it is C2C online shopping platform unlike Alibaba.com which is B2B.It was launched at May 2003 by Alibaba Group.[ https://en.wikipedia.org/wiki/Taobao]
Alipay: It is a third party online payment system of china launched in 2004 by Jack Ma himself in Hangzhou
.
China. Its headquarter is located at Pudong, Shanghai, China. It was then recognized globally due to its market demand and features[https://en.wikipedia.org/wiki/Alipay]. Alibaba cloud(Aliyun): Alibaba cloud is the cloud computing platform establishes in September 2009 in the 10th anniversary of Alibaba group. It is operated at Hangzhou, Beijing, Hong
.
Kong, Singapore, Silicon valley and Dubai as itsResearch and Development centers and
Mission of Alibaba : Alibaba has dreamt to give the ir consumer the best experience at every sector including shopping, cloud network, health, education.
Vision: Alibaba aims to improve every infrastructure related with commerce and make their company that lasts at least 102 years.[ http://www.alibabagroup.com/en/about/ov erview]
Amazon:
It is a leading retailer responsible for selling electronic product and hosting cloud
services launched by Jeff Bezos in 1994 and has its headquarter at Seattle Washington
.
USA. Their products are Amazon Appstore, Amazon echo, Amazon Kindle, Amazon video, Amazon video services. It consist of employee more than 341,400. Its subsidiaries are listed below: A9.com
Task 7
Discuss the fnancial implications of an e-commerce solution. Financial implication: The procedure that must be performed in order to create fnancial impact on business is known as fnancial implication. Actually fnance means money or capital and implication means result, impact or outcome of a specifc task
[ https://www.quora.com/What-does-the-phrase-fnancial-implications-mean-What-are-some-examples].
Financial implication of E commerce:
1. Domain Name: Domain name means the registered link for a particular website. As internet has penetrated all along human habit business are also using internet i.e. website to increase their business. Actually internet has become an excellent platform to enhance business. Hence, to create website ones must register its domain name.
2. Website: Website is the platform where customer place order and organization receive order. E-commerce website must be effective and attractive by adding different information about product and options like photo, video, production description, top product etc. It also must be interactive with customer so that customer doesn’t face any problem during purchase procedure.
3. Advertisement: Advertisement is an important factor to widely spread the product and services given by a specifc organization. It doesn’t only spread news about product, it also promotes the company or an organization. In context with Bigmart, it should also promote its company and its services by spending some of its capital.
should be hired. BMS also operate its own e-commerce based website where it updates the services it has been providing. So Bigmart must hire some highly skilled IT manpower to make their customer confortable on using their site and keep their services up to date.
5. Software and hardware maintenance: Maintaining hardware and software is an important aspect for an e-commerce organization as they receive and treat their customer via websites. Hence Bigmart must maintain their websites as well as their hardware component time-to-time.
The total cost for implementing of E-commerce solution costs Rs. 60,000 to Rs. 80,000.
Financial benefts
Whenever an organization implements e-commerce solution, it directly or indirectly observes some of fnancial benefts. After implementation of e-commerce solution by Bigmart will also be offering some of fnancial benefts are they are listed below:
Reduction in operating time: As Bigmart sells product through internet its customer doesn’t actually require to select from store, stand in queue to pay bill. They can pay whenever it is delivered and doesn’t even go out of their room. Hence the operating time is also reduced.
Market increment: While it moves its business through online or internet any organization even Bigmart tends to increase its sell percentage due to its facility of cash on delivery as well as return policy. The number of satisfes customer increases and its market in certain place automatically increase.
Conclusion: Above mentioned are the procedure and steps to be followed by an organization in order to create a website. Financial benefts are also mentioned which includes online service, market increment and reduction in operating time.
Task 8
Task 9
Evaluate the suitability of the e-commerce solutions designed in task 8.
Every component involved must be interrelated with other component so that customer doesn’t face any problem on operating respective webpage. The standard and working of all component must be checked and passed before it reaches to customer. Any problem in webpages or services will create a great loss to the company. Here, suitability means whether the created e-commerce solution reach the criteria as required by organization.
Here are some of factor responsible to evaluate the suitability of web pages:
Navigation: Navigation service is quite excellent as compared with other e-commerce sites where user can easily navigate and switch to different product from different category.
Product Searches: Search option is classified into different category where user can search manually according to their wish and can search the trending, new arrival, and most purchased item which might be quite helpful for customer on searching the product.
Information: Description and information about every product is mentioned so that customer can easily get the manufacturer, manufacturing date, material used in making product and many more information about product.
Suppliers List: Suppliers list and contact information about seller is an important component to be mentioned so that in any defect on product customer can directly claim warranty of their product.
Payment: There are different means of payment system introduced to customer. They can directly pay through their ban debit and credit card as well as they can pay after their product is delivered which is another new feature of organization called Cash On Delivery.
Customer Services: Highly skilled customer service personnel are deployed so that customer doesn’t face any difficulty on finding product and they can also know the description of the product with our customer service personnel. Here customer can give their review and feedback to the product and rate them according to their shopping experience.
