Overview of the Business Unit
I have a retail outlet for ready-made fashion garments in the middle of the city. The type of clothing offered from the retail outlet is for Women and children. The retail outlet stores variety of fashion clothing like ethnic wear, formal wear, casual wear, clothing winter wear, summer collection for women, and kids.
The retail store offers readymade designer ware for women, where the customer places an order for customized design. The process of ordering involves a customer entering the store, making contact with the store manager to enquire about the facility of customized design. Then a tailor will take the measurements of the customer according to the pattern chosen and then deliver the ordered piece on due time.
Though the current process does not have any problems in order taking and delivery, the store could not capture the full potential of the advantageous service. Now the store is expanding its business service and is trying to figure out a solution to cater the customized designing of fashion dressing.
The retail store’s manual activities for the customized orders have limited scope and are drawing limited revenue. But the demand to the customized dress orders in the area is very high and is to be captured irrespective of the geographical locations. Now the store is able to attract the local and very near customers who can walk in to the store. But the outside and far away customers are ordering through the Telephone are not able to order the dresses frequently and are also not able to give the details of the customized patterns very specifically. This is resulting in the low business and poor customer satisfaction and lack of persistent customer flow.
Solution: The proposed solution for the retail-clothing store is an online presence through an e-commerce web site. The proposed solution of web site offers a chance to publish the service to the global customers as well as gives an ability to handle the order taking and order processing very effectively. The website will have the functionalities of web catalogues that advertise the stock in shelves as well as the design patterns that can
be delivered up to the customer satisfaction. Also the website gives the customers a facility to choose the designs, color, and pattern of their dress and give their measurements accordingly. Simultaneously customer can pay for the order instantaneously and can tack the progress of the order.
The objectives of the project
The website project will be executed on the following objectives:
- To have global reach to the customers
- To promote its products
- To establish a global brand name
- To have an efficient order processing system
In order to execute the project, following are assumed to be with the retail store.
- Computers for each order processing department are available with proper configuration of hardware and software and are in working condition
- People from the Design & Tailoring department are computer literates
- The business unit has access to internet with sufficient bandwidth for multiple users
People or departments that need to be involved in this project
For the e-commerce website project the people to b involved are as follows:
- Project administrator or manager for the project management
- Business Analyst to bring out the required specifications in detail to the retail unit
- Programmer analysts to design and develop the e-commerce website coding
- Database administrator and designers to maintain the database of transactions of website
- Website graphics designer who gives appropriate and fine layout to the website
- In house network administrator to look after the computer configurations to maintain the project
- In house website maintenance people to maintain and update the regular website updates for catalogues and order entry process
To keep the website up-to-date with all web catalogues on recent products and to maintain functionality from time to time the following departments has to work out continuously on the project
- Design and tailoring department to prepare the latest designs in the market
- The database administration department
- The System administration department to keep the network and servers in place and to give regular maintenance for the computers software installations
- The project maintenance department to regularly update the web catalogues and order processing queries
Risks Involved in the project
The probable risks involved in the proposed e-commerce website project are as follows:
- Resistance to change and adopt from the in-house people to work under new technology
- All the current experts with the business unit may not have technical proficiency to browse the internet and to carry the work that come through online ordering process
- As the data is all resident on the internet, there will be security risks to transaction data
- Virus threat to the system that are in use with the in-house maintenance and hacking problems on the internet that make denial of services to the customers
- Lack of good presentation on the web and lack of promotional skills on internet may not drive sales from the internet.
- The project development and maintenance is costly than the current system
Salient features as Project
The current proposal can be treated as project as it has the following ingredients in it:
- There is a purpose and objectives of the entire process
- There is an involvement of people
- There is an involvement of Cost
- Risk is identified
- Project management methodology is involved (Waterfall, RAD, RUP, etc)
|DIRECT COST||PROJECT OVERHEAD COST||GENERAL COST||ADMINISTRATIVE COST|
|Website programming process||Internet Provider Fees||Personnel Training Cost||Website application operation cost|
|Project Management Operations Cost|
|E-Commerce Operations Preparation||Administrative Meeting Costs for Organizational Preparation|
|Adjustment Planning Procedures Presentations|
EXPLANATION: From the table above, it could be observed that administrative costs actually depend upon the preparatory meetings that are to be performed by the authorities of the office so as to make the entire organization briefed about the new approach of the business. The project direct costs are likely referring to the procedures that are used to make the entire plan work for the business. On the other hand, general costs refer to the major adjustments that are likely to be approved through the process application of the plan. Direct cost on the other hand primary point out the major expenses needed to actually handle the operational performance of the plan through online connections.
Getting through with all the RISKS
Planning the business and setting the marketing strategy to be used by the organization are simply the basic elements needed to create an organization that is intended to set sail in the journey towards global business engagements. TO be able to completely scale the capability of the organization to face the different challenges of dealing with the international market, it is necessary that the business entrepreneurs become aware of the impending issues needed to be dealt with during international business operations. What are the risks being referred to herein? According to Fredrick Wilcox “Progress always involves risk; you cannot steal second base and keep your foot on the first base”. This primarily implies the fact that there are several elements of success in business, especially concerning international relations that could not be met unless the entrepreneur meets the risks that come along with the primary developments.
The elements of risks could be discussed as follows:
- Business Risks:
- Cost of Structure- The establishment of a certain business entity especially one that is made to face international transactions should and must be based on the financial capabilities of the owner. It could be observed that through the company’s ability of identifying the costs that may affect their operations in the new venture of business that they would want to engage with would naturally identify the possible progress that they are hoping to meet in the future.
- Competition- Being ready for the already existing companies within the country that goes with the same industry is necessary for an international entrepreneur to be prepared about. In the internet technology, it could not be denied that there are already companies who are able to meet the challenges that are needed to have the needed and expected success on the said business venture.
- Product Liability- the procedures of getting through with the laws in placing the products within the boarders of the other country should be one of the primary concerns of business entrepreneurs. In this regard, it is indeed necessary that the company ensures that the products that they are to offer their clients are indeed reliable enough for their needs to be met.
- Human Resource Management- Since the business would involve international engagements; it is simply reasonable to expect that the employees would be coming form international races as well. Managing this type of human resource group should then be carefully given attention by the organizational authorities.
The company should be prepared to actually hiring people from different areas of the world to be able to attain success from the said business venture.
- Clients or Customers- The demographics of the consumers, their interests and their product preferences should be among the main concerns of the business organization. Their culture and their wants basing on their traditions should be carefully noted by entrepreneurs to ensure their products of the market appreciation that it needs to be able to remain in business. Specifically identifying the clients who are to be served by the organization in their new created approach in business would actually bring fine results for the said company.
- Environmental Risks
- Economic- The economic situation of the neighboring country where a branch or a trade engagement is prepared to be conducted should be set in balance with the economic status of the original branch of the business. The balance shall help the business operators to set some standard procedures in dealing with the finances of the organization.
- Weather- The weather that is currently controlling the activities of the civilians of a certain country should be carefully given attention. This shall also determine the activities that are supposed to be taken in consideration by the business organization.
- Legalities and the Government- this particular element should be closely given clear attention as it is among the most important factors as well as the most crucial one as it primarily determines if the organization is to remain in a certain country or not, based on the ability of the organization to become connected with the laws of the said neighboring country.
Considering all these elements of risk and being able to understand on how each one affects the business engagements of a certain organization in an International picture shall then help the entrepreneurs create the possibilities and the probabilities of the organization’s success in the multicultural market of consumers.
The Internet Service Provision’s Business ABC’s
The company that is to be observed at this point is the organization of Info Inc. which is a start up company wanting to venture in providing its major clients with internet based services that could be used as a source of informative materials in terms of accounting procedures, medical assistance and budget-wise programs that both business enthusiasts and the general public could use in their daily business and household needs and activities.
As a company that is still starting in venturing within the said field, it is necessary for Info Inc to carry on the informations that were further discussed in this paper earlier. It could be noticed that the discussions point out the fact that establishing a new business operation for a certain existing business organization is indeed challenging especially when the business is supposed to handle a global market.
As the organization aims to venture in a new business operation that they have not been used to in engaging, it is much beneficial to take notice of the fact that the organization needs to take into consideration several factors that would involve the adjustments of the whole body of employee of the said company.
The shifting of the priority and the opening of the new arena of service that the company would provide its clients should then be identified as a primary factor that should be carried in constant addressing during the whole procedure of adjusting the organization’s focus. First to consider then is the type of internet servicing that the company should be involved into. This shall be discussed within the paragraphs that follow.
(A) Choosing the Type of Service
To be able to reach the widest scope of market, Info Inc should invest in creating internet networked branches from different areas of the world. The company may not be required in creating an actual physical branch in the different parts of the world, but it is required to subscribe at a certain internet website host such as Google or yahoo, that would make their company much more accessible by the target market that they ought to serve. Choosing the right type of server or website support is very important. This is the reason why ample research on this matter should be carefully considered by the ones who are to establish the company’s website. The scope of the network should also be closely attended to as this would indicate the expected scope of audience or market that the company could reach out to.
As mentioned earlier, marketing is an important way of regenerating a prospect market to get involved within a certain business company; however, lacking the needed access to reach the said clients may make this particular procedure of business operation impossible. Hence, being able to scale on which type of website support could give the best services to the company basing from its mission in connection with the market that it targets is very important to take into consideration. By doing so, the creators of the said business service-provision branch does not only introduces the company to a wider scope of market, but it also gives it a chance in gaining the peak rate of revenue that it could reach in an annual calculation.
(B) Creating the Website
Since the organization aims to attract business enthusiasts and household members, the presentation of the website should cater to what they are actually interested in. This is where the art of marketing begins o enter the scene. Moat likely, it could be observed that the more attractive and interesting the website looks like, the more it is being viewed by Internet surfers. This is [particularly the reason why the website of the company should highlight the strength of the company and the idealisms that it has that may attract the concerns of the market.
Constant attendance to what the target market wants to know about the company and about their services shall help the creators and programmers of the website have an idea on what they should actually set as features to the said website. It must also occur among the creators that the insistence of the website’s becoming a user-friendly system is an important part of the feature of the said internet address. This would certainly allow the users, whether they are computer literate or not to have an easy access on what is actually being offered by the organization through their online network.
(C) Counting the Benefits
Having a company’s own website in the internet is like having a legitimate virtual address that would cater to mostly different people from around the world. As globalization opens its doorways to major new waves of business engagements, it could be observed that there are different benefits that the Internet operations bring the different business organizations that use the services provided by the said virtual community. Most of the company’s which do not even have physical establishments are already known because o their internet-based operations. This fact shall help Info Inc in realizing the fact that opening their doors to a more liberated procedure of operating within the business transactions that they want to offer their clients is an important part of their company’s growth as a major business entity.
(D) Counting the Costs
To be able to understand the plan further, it is important to lay the finances and budgeting procedures needed to support that project that is being proposed for Info Inc to take into consideration. What are the particular elements of financing that needs to be considered?
- Creating the Website
There is a need to hire an expert to at least program the website. The fact that there are different features of presentations that are planned to be embedded within the presentation of the website primarily to attract the clients, there needs to be the existence of professional help for this matter. This then requires a minimal yet reasonable payment for labor.
- Funding the Website
Usually, the fees for website maintenance are paid annually. The company should then prepare itself in facing responsibilities such as this.
- Advertising through Search Engines
The more exposure the site gets, the more surfers it could invite. From this particular fact, it could be noted that funding the site’s fees is indeed worthwhile, as that particular fee shall allow the link to the website to appear several times with the utilization of several key words encoded by the internet surfers when they are seeking the help of major search engines in the internet.
- Training the Operators of the Web
There should always be a standing support specialist that is ready to assist customers in their issues about the services offered by the company. Once the company ventures to this particular type of business operation, it should then occur to them that the importance of placing expert support technicians as well as product or service specialists should constantly be available incase interested client needs assistance. If the values of the cost-causing elements mentioned herein shall be examined, it could be observed that the fees are all reasonable enough of paying on the part of the company’s financing group.
Most likely, this is because of the much reasonable returns that the said fees are expected to return to the entire company’s business system. Handling such responsibilities in a much more positive outlook shall indeed help the administration of the organization realize of their importance as major player within the worldwide economy. The operations that they are expected to handle through inline communications shall not only increase their capabilities of handling challenges but could also help them grow as a business entity that is able to face the challenges of the globalization era.
Entering the arena of international business venture is indeed not an easy task for business entrepreneurs. However, because of the focus of globalization in empowering dreamers of the said industry helps much in assisting entrepreneurs in seeing the possibilities of enlarging the scope of their territories of profitable areas through stretching their business activities towards the other countries around the globe.
It could not be denied though that the procedure of international business looks much inviting, it should not be forgotten that the risks are highly challenging, hence encouraging the entrepreneurs to apply clear control of the situation through applying the needed skills to face the challenges of the international business transactions. Expanding the business in this procedure is indeed promising; however, careful consideration on the elements of risk should be given clear attention by the hopeful business entrepreneurs.
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