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Contents

Chapter 1 – Organization Profile................................................................................................................... 4


Task.1 ........................................................................................................................................................ 4
1.1 Assess core business functions of My Toys (Pvt.) Ltd. making assumptions where it is necessary. .. 4
(LO 1.1) ...................................................................................................................................................... 4
Introduction .............................................................................................................................................. 4
1.1.1 Business Function...................................................................................................................... 4
1.1.2 Business function is a description of work that is performed to accomplish a business unit's
responsibility. ............................................................................................................................................ 4
1.1.3 Core business Functions............................................................................................................ 4
1.1.2.3 Types of Core business function ................................................................................................... 4
 New product development ............................................................................................................... 5
 Value added ...................................................................................................................................... 5
 Cost saving ........................................................................................................................................ 5
 Efficiency gains .................................................................................................................................. 5
 Product improvement ....................................................................................................................... 5
1.1.2.5 Purchasing ..................................................................................................................................... 5
1.1.2.6 Marketing ...................................................................................................................................... 5
1.1.2.7 Human Resource Management .................................................................................................... 6
Functions of HR ......................................................................................................................................... 6
1.1.2.8 Accounting and Finance ................................................................................................................ 6
Functions of Accounting and Finance ....................................................................................................... 6
1.2 Identify the stakeholders involved in the operations of My Toys and evaluate the organization’s
business aims in relation to their stakeholders. (LO 1.2) (M1.3).............................................................. 7
Chapter 2 – Background of E-Commerce and its impact to the Society..................................................... 12
2.1 Analyze the impact of introducing Ecommerce to My Toys by analyzing the benefits and negative
impacts it would have both on the customers and the business. (LO 2.1)............................................. 12
2.2 Discuss the global impact of e-Commerce on the society by taking different examples with
appropriate references (LO 2.2) ............................................................................................................. 16
Chapter 3 – Market Potential and Different E-Commerce Solutions ..................................................... 19
3.1. Investigate the market potential of introducing an Ecommerce solution to an organization such as
My Toys. (LO3.1) ..................................................................................................................................... 19
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3.2. Currently there are different types of e-commerce systems in use. Evaluate e-Commerce systems
which are being used by organizations in current context. You are encouraged to provide screen shots
to support your answer (LO 3.2 and D 1.1)............................................................................................. 23
Chapter 4 – Proposed E-Commerce solution .............................................................................................. 28
4.1 Though it would generate revenue, implementing e-commerce solutions would require
substantial investment. Evaluate the overall financial implications of implementing an e-commerce
solution for an organization such as My Toys. (LO 3.3) .......................................................................... 28
4.1.4 Capitalizing an E commerce solution. ............................................................................................ 29
4.2 Based on the above justification on the market potential and the varieties of e-commerce
solutions available in the world of e-commerce solutions design an e commerce solution for My Toys
that would support the achievement their business goals. (LO 3.4) ...................................................... 30
4.3 Taking into consideration the security issues and applicable legislations, evaluate the suitability of
the proposed e-commerce solution for an organization such as My Toys. (LO 3.5) .............................. 33
4.3.3 Solutions for E commerce security issues .................................................................................. 34
Conclusion ............................................................................................................................................... 38
Gantt chart................................................................................................................................................... 39
References ................................................................................................................................................... 40

Table 1 Business aims as SMART .................................................................................................................. 8


Table 2 stakeholders and objectives ........................................................................................................... 11
Table 3Functionality, benefits and Risk ...................................................................................................... 15
Table 4 Capitalizing an E commerce solution. ............................................................................................ 29

Figure 1 Smart Objectives ............................................................................................................................. 7


Figure 2 Types of Stakeholders ..................................................................................................................... 9
Figure 3 PEST analysis ................................................................................................................................. 21
Figure 4 Business to Business ..................................................................................................................... 24
Figure 5 Business to Consumer ................................................................................................................... 25
Figure 6 Customer to customer .................................................................................................................. 26
Figure 7 Consumer to Business ................................................................................................................... 27
Figure 8 Designed E commerce website ..................................................................................................... 30

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Acknowledgement.

The success and final outcome of this assignment required a lot of guidance and assistance from
many people. I extremely fortunate to have got this all along the completion of my assignment
work. Whatever I have done is only due to such guidance and assistance and I would not forget to
thank them.

First and foremost, I would like to thank to our lecturer Gine shifna kamaldeen for the guidance
and advice that given to me for complete this assignment. Her motivation contributed
tremendously during assignment. Next I would like to thanks Esoft center manager Mr.sachithra
deepanatha for his incentives .next I would like to thanks my friends, always helped during
assignment period with as much as they can.

As well as I may kindly mention to kind of thanks to my parents to move me to this program and
help me for finish my assignment. In the end I would like to thanks everybody who help me to
complete this assignment.

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Chapter 1 – Organization Profile

Task.1
1.1 Assess core business functions of My Toys (Pvt.) Ltd. making assumptions where
it is necessary.
(LO 1.1)
Introduction
Established in 1977 in Sri Lankan. My Toys specializes in the design and manufacturer of
innovative and high quality interactive toys for children of all ages. The company is export-
oriented and sells worldwide. We are one of the ten best toy manufacturers, which have been
awarded the Certificate by the Import and Export Commodity Inspection Bureau in Sri lanka. My
Toys’ impressive breakthrough in product development results from its determination to invest
abundant resources in researching for advanced technology and its success to incorporate these
technologies into fabulous products.

1.1.1 Business Function


Business function is a description of work that is performed to accomplish a business unit's
responsibility.

1.1.2 Core business Functions


Core business is the primary area that a company focuses on in business operations. All companies
try to maintain a strong position in these areas of business so that they remain market leaders.
Most business may have multiple functions but concentrate on the focal point so that they are able
to keep the resources and employees focused. [Ukessays/2015]

1.1.2.3 Types of Core business function


 Research and Development
 Purchasing
 Marketing
 Human Resource Management
 Accounting and Finance

1.1.2.4 Research and Development

Business function is a description of work that is performed to accomplish a business unit's


responsibility The Research and Development (R&D) function is concerned with developing new
products or processes and improving existing products/processes. R&D activities must be closely
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coordinated with the organization’s marketing activities to ensure that the organization is
providing exactly what its customers want in the most efficient, effective and economical way.

 New product development


 Value added
 Cost saving
 Efficiency gains
 Product improvement

1.1.2.5 Purchasing
The Purchasing function is concerned with acquiring goods and services for use by the
organization. These will include, for example, raw materials and components for manufacturing
and also production equipment. The responsibilities of this function usually extend to buying
goods and services for the entire organization (not just the Production function), including, and for
example, office equipment, furniture, computer equipment and stationery. In buying goods and
services, purchasing managers must take into account a number of factors – collectively.

 Quantity
 Quality
 Price
 Delivery

1.1.2.6 Marketing
Marketing is concerned with identifying and satisfying customers’ needs at the right price.
Marketing involves researching what customers want and analyzing how the organization can
satisfy these wants. Marketing activities range from the ‘strategic’, concerned with the choice of
product markets (and how to compete in them, for example, on price or product differentiation) to
the operational, arranging sales promotions (e.g., offering a 25 per cent discount), producing
literature such as product catalogues and brochures, placing advertisements in the appropriate
media and so on.

 Product
 Price
 Promotion
 Place

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1.1.2.7 Human Resource Management
Human resources (HR) is the company department charged with finding, screening, recruiting and
training job applicants, as well as administering employee-benefit programs. As companies
reorganize to gain competitive edge, human resources plays a key role in helping companies deal
with a fast-changing environment and the greater demand for quality employees.

Functions of HR
 Recruitment and selection
 Orientation
 Maintaining good working conditions
 Managing Employee relations
 Training and development

1.1.2.8 Accounting and Finance


The part of an organization that manages its money. The business functions of a finance department
typically include planning, organizing, auditing, accounting for and controlling its company's
finances. The finance department also usually produces the company's financial statements.

Functions of Accounting and Finance


 Cost control
 Billing and Credit control
 Handling tax issues
 Preparation of Financial Statement
 Accounts Payable

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1.2 Identify the stakeholders involved in the operations of My Toys and evaluate the
organization’s business aims in relation to their stakeholders. (LO 1.2) (M1.3)
Wholesale trade mission goals, profit, growth and market forecasts, which include a set period of
time, if you want to achieve the establishment of the goal. Institutions and organizations to help in
planning for individuals with a common set of goals and help achieve the ultimate goal of their
tasks in the most efficient way to break through. The best types of objective are SMART,

Specific Clear to anyone that has a basic knowledge of


the project

Measurable Find out when you have achieved your goal

Agreement with all the stakeholders what the goals


A greed upon
should be

Relevant Within the availability of resources, knowledge and


time

Timely Not too much time, which can affect project performance

Figure 1 Smart Objectives

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1.2.1 My Toys Organization’s aims (As SMART)
Table 1 Business aims as SMART

Element Application to company

specific I will acquire three new clients for my consulting business

I will measure my progress by how many new clients I bring on, while
Measurable
maintaining my current client base.

I will ask current clients for referrals, launch a social media marketing
Achievable
campaign and network with local businesses.

Gaining customer trust helps achieve our goal feasibly.so our main target
Realistic is to build a solid customer base. Adding additional clients to my
business will allow me to grow my business and increase my revenue.

First year period of time our main goal is to expand our operations in
different regions in the country and get attraction of investors.it will help
Timed
expand our business little bit. I will have three new clients within two
months.

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Stakeholders

The concept of 'stakeholder' is a diverse of 'stockholder', which related to 'owners in ‘or 'investors
in' a business or firm. We can define 'stakeholders' as 'groups and individuals who are affected by
activities of an organization. Most important stakeholders can be found as those with more to lose
from the organization's activities, but that does not always reflect their relative powers.' Their
objectives and goals are very immensely, but they must be considered.

Previously it had been the common concept that businesses basically expect and in turn effect the
economic capital, which is turn up in the form of stockholders. The rise to reputation of
stakeholders allow firms to realize that there are infrastructure and people beyond the company
which are need to it and also must have their attentions protected. An organization, stakeholders
are the parties also are able to reasonably be understood to be affected by its verdicts. They can be
considered to represent the businesses, social capital as well as economy.

Figure 2 Types of Stakeholders

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Internal stakeholders

Internal stakeholders include general groups such as managers and employees (and/or volunteer
workers for other types of members, in not-for-profit organizations).

For example: The procurement function may have to market itself to senior management or
management teams, or may have to communicate changes in purchasing policy and procedures to
all staff.

External stakeholders

Businesses are increasingly aware of the need to maintain a positive reputation in the marketplace,
and this may require a more inclusive approach to stakeholder management, which recognizes the
legitimate needs and concerns of wider, secondary or ‘indirect’ stakeholders. External stakeholders
are likely to have quite diverse objectives and degrees of influence.

(Keep space intentionally)

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1.2.2 My toys stakeholders and objectives
Table 2 stakeholders and objectives

Stakeholder Definition Objectives

I Employees Well run organizations take into account  All employees get fair salary
employee opinions, concerns, and  They make the work place very favourable and
N values in shaping the strategy, vision, elegance.
T and mission of the firm.  They serve customers in a very effective ways
and help the authority to expand the business.
E Otherwise for declining in business may start
R job cut?

A Manager Managers are also accountable for the  They are the decision maker and decide the
decisions made, and act as a point of strategies and strategic plan
L contact between shareholders, the  They have controlling power
board of directors, and the organization  As the business grow their power and status
itself. also spreading.

Owners Owners often make substantial  Profit


decisions regarding both internal and  Share price
external stakeholders.  Dividends

X In future supplier will provide new  They provide products in Iceland and get
Supplier product which can attract customer’s reasonable price
T attention.  They are being paid quickly and fully by
E Iceland authority.

R Customer will come to MY Toys to do  They get ‘good value of money’ by purchasing
their shopping and sri lanka also goods and services from Colombo.
N provides some lucrative and unique  Customer service is really awesome and
consumers facilities to customers for attracting customers get proper feedback all times.
A
them in a larger number.  Home service deliveries give extra benefits to
L customers and bonus card provide bonuses,
winning prizes and so on.

Without competition life is really  Government monitor rules and regulation of


Government
worthless. That to retain number 1 the organization

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position in retail sector by providing
better products and services.

Chapter 2 – Background of E-Commerce and its impact to the Society

2.1 Analyze the impact of introducing Ecommerce to My Toys by analyzing the


benefits and negative impacts it would have both on the customers and the business.
(LO 2.1)
2.1.1 E commerce

In its simplest form ecommerce is the buying and selling of products and services by businesses
or consumers over the World Wide Web

People use the term "ecommerce" or "online shopping" to describe the process of searching for
and selecting products in online catalogues and then "checking out" using a credit card and
encrypted payment processing. Internet sales are increasing rapidly as consumers take advantage
of,

 Lower prices offered by vendors operating with less margin than a bricks and mortar store
 Greater convenience of having a product delivered rather than the cost of time and transport
and parking of going to a store
 Sourcing product more cheaply from overseas vendors
 Great variety and inventory offered by online stores
 Comparison engines that compare and recommend product
 Auction sites, where they did for goods

E commerce functionality

 Product management
 Order management
 Payment
 Basket
 Registration

(Keep space intentionally)


Registration
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In order to make a purchase, Buy, sell, and interact with other members. The data will be stored
on a database and will be available from the back office.

Payments system

Only for Sri Lanka inducing new method for in e-commerce. EZ Cash This happens through a
mobile service. Anytime, anywhere, Dialog and Hutch mobile phone SIM in order to make use of
a wide range of financial transactions is a novel product. Which can easily send money. Can
enforce payment, payment gateway, such as the payment system will be a gateway provider. The
customers will be easy. In this very usefully system in e- commerce

What this advantage PayPal system PayPal Express Checkout support targeted at customers, Speed
up the process of their money, the purchase of their products is a plus Because only a small amount
of transactions per month are looking forward PayPal, monthly or setup fees, per transaction.

Product management

Customers can easily recognize the quality of a product cannot be sold on the spot market during
the editing of this issue. If everything is fine, they will not face any problem of goods and services.

 Liability
 Production
 product name
 good quality
 own costs

Order Management

Customer satisfaction is the key to business success in the long term, and customer satisfaction is
the key to accurately and reliably fulfil customer orders. Products in order for it to be processed in
real time to the customer in this case, the manufacturer, purchasing directly. After the customer
selects the product he wants to buy, two main factors are the time of delivery and payment method.
In a front-row place in the future on the customer, and pay online or request immediate delivery.
Customers enjoy more reliable deliveries and accurate order fulfilment.

 order processing records


 information on billing and payments
 a database of customers
 a record of customer returns and refunds

(Keep space intentionally)


Basket (shopping cart)

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A shopping cart on an online retailer's site is a piece of software that facilitates the purchase of a
product or service. It accepts the customer's payment and organizes the distribution of that
information to the merchant, payment processor and other parties.

Advantages of E commerce

 Reduced costs by reducing labor, reduced paper work, reduced errors in keying in data,
reduce post costs
 Reduced time. Shorter lead times for payment and return on investment in advertising,
faster delivery of product
 Flexibility with efficiency. The ability to handle complex situations, product ranges and
customer profiles without the situation becoming unmanageable.
 Improve relationships with trading partners. Improved communication between trading
partners leads to enhanced long-term relationships.
 Lock in Customers. The closer you are to your customer and the more you work with
them to change from normal business practices to best practice e-commerce the harder it
is for a competitor to upset your customer relationship.
 New Markets. The Internet has the potential to expand your business into wider
geographical locations

Advantages to Organizations

 Using E-Commerce, organization can expand their market to national and international
markets with minimum capital investment. An organization can easily locate more
customers, best suppliers and suitable business partners across the globe.
 E-Commerce helps organization to reduce the cost to create process, distribute, retrieve
and manage the paper based information by digitizing the information.
 E-commerce improves the brand image of the company.
 E-commerce helps organization to provide better customer services.
 E-Commerce helps to simplify the business processes and make them faster and efficient.
 E-Commerce reduces paper work a lot.
 E-Commerce increased the productivity of the organization. It supports "pull" type
supply management. In "pull" type supply management, a business process starts when a
request comes from a customer and it uses just-in-time manufacturing way.

(Keep space intentionally)


2.1.2Functionality, benefits and Risk of an e commerce system

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Table 3Functionality, benefits and Risk

Functionality Benefits Risks

Registration process is one way to enhance


customer relation with company and it will
open customer purchase availability. The The risk register can lead directly to risk
benefit register is an up to date list of planned handling, such as risk mitigation. There is
benefits, who is responsible for measuring always risk about hacking or malware
them, when they are expected to be realized, attacks. If it happen customer credential
Registration
how they will be measured, baseline and can be a target of identity theft.
current measurements, et cetera. Therefore
customer can start purchasing without any
limitation as soon as registration is
completed.

Shop online—whenever and wherever they It is very fast Can enforce payment, The
want. It is very quickly payment and all the customers will be easy. In this very
Payment
transactions make through e commerce. usefully system in all the transactions make
through e commerce.

Product managers own ideation -- the When it comes to launching a new product,
creative process of generating, developing, complying with regulations, defending
and curating new ideas. They collect, curate, product liability lawsuits, and the overall
and promote the most relevant ideas into protection of your company’s brand
features. reputation in the marketplace, having
Product counsel that knows how to manage and
management mitigate risk throughout every stage of the
product life cycle is critical. Our attorneys
are experienced in product safety and other
regulatory issues and commercial concerns
from every legal angle, because this is the
backbone of the E commerce system.

Greater customer satisfaction and smoother,  Problems at suppliers, which delay


Order more efficient, ecommerce Operations critically needed components
management  Theft, a much larger problem than
most realize and Cyber security

(Keep space intentionally)


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2.2 Discuss the global impact of e-Commerce on the society by taking different
examples with appropriate references (LO 2.2)
2.2.1 Global impact of e-Commerce due to e commerce

Virtual enterprises and economic activities with traditional Virtual enterprises and economic
activities with traditionally accepted Internet changing and the competition fiercer than ever before
are making. The Internet, and more, to take advantage of more flexible competitors entering your
market opens up in the big markets as not all market participants in order to steal valuable best
price.

Advantages

 Convenience

Shopping online can be a lot more convenient that heading out to a shopping Centre to find what
you want. Instead, can simply sit at home with access to the internet order away.

 Disabled & Elderly

Those who suffer from disabilities, whether they are physical or mental, or old age can often
struggle to go shopping in your regular shopping mall. This can become more of a problem when
living greater distances from town centers. Online shopping allows these individual to stay in the
comfort of their own home when ordering the products and services they desire.

 Time Saving

Ordering an item online through an e-commerce site takes a lot less time when compared to
travelling to your nearest store.

 Jobs

In order to have an online presence and trade online you will need a web site that is capable of
selling your products or services with acceptable methods of payment. Smaller businesses are
likely to hire an internal company that specializes in setting up this kind of thing but larger
companies on the other hand are likely to employee their own web developers, marketing analysts
and search engine optimization specialists.

 24/7

Web site that run online are constantly available at all hours providing there are no technical
difficulties. This a great advantage for those who finish work late and don’t have the time to run
down to their nearest outlet to find the product they desire as they know simply order online.

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 Greater Choice

When going out shopping you usually only have the availability of the products that are there. This
Differs when compared to shopping online. Firstly, it is highly likely that you can find the product
you want to from multiple different sites. Also, when purchasing from a bricks and clicks
organization it is possible that the product you are after isn’t available at your nearest store but
instead it can be delivered from a store based elsewhere.

 Pre-order

Most high demanded products online today tend to have the option to be pre-ordered. This is a
process that involves you playing for the product before it is released but it return having it
delivered to your door on the release day. This is a very popular process with most entertainment
products such as computer games.

 Global Market

Consumers choose to buy items online using e-commerce websites opens a massive scale. Global
more easily to the market through which they have established their latest and greatest products
on the market, importing around Sri Lanka being a major trader in the case. Their regular customers
of the global family of a local privately-owned store in the Centre will be available as a pre global
of new products that can be bought through the website is a direct door way to the.

Disadvantages

 Unemployment

Some organization or business move from being a brick organization, where they are based in a
store, and move to become an online, more globally available company and therefore have no need
for the staff they have employed in their stores.

 Uncertainly

As there are some websites out there with the purpose to scam some people are afraid of entering
their credentials online and they can't be blamed. There are trusted sites out there and there are
multiple ways to detect whether they are official sites or not. PayPal is an online payment method
that people can use that keeps your credential information private from the trader. The online trade
will then work with PayPal meaning that none of your payment details are shared with the company
you a buying from.

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 Security Issues

It is important to provide a safe and secure online shop for a customer when their trying to buy
products from you. This helps create a greater customer trust and ensure them that they can place
an order without any worries to help encourage additional business with that customer in the future.
The business will need to make sure that a safe gateway is available and that the information is
secured when the customer makes the payment

 Direct communication and product experience

When you order a product online the customer will have no face-to-face contact with the
salesperson and no hands-on experience with the product. Instead, the product will usually have a
few images to get an idea of the product along with a product description. Sometimes these images
and descriptions can be misleading and the customer could end up ordering an item that is not
exactly what they want.

 Delivery

When you order a product or service online you have to wait for the products to arrive, usually
these e-commerce sites offer different option for delivery which will range from faster delivery
times at a higher price to slower delivery times at a lower price or in some cases free. But
sometimes the product can take a good duration to come due to many issues and this can cause
problems if the product or service you ordered is for an event that is coming up, like a birthday
present.

 Return and complains

During delivery time customer order can be damaged or malfunctioned. Then customer try to get
replacement or refund. That can be a big lost for company .however it is not a customer fault or
salesman fault.it can create bad relation between customer and salesman.

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Chapter 3 – Market Potential and Different E-Commerce Solutions

3.1. Investigate the market potential of introducing an Ecommerce solution to an


organization such as My Toys. (LO3.1)
3.1.1 SWOT Analysis

S Strengths

W
Weaknesses

O Opportunities

T Threats

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Strengths

 We are able to respond very quickly as we have no red tape, and no need for higher
management approval.
 We are able to give really good customer care, as the current small amount of work means
we have plenty of time to devote to customers.
 Our lead consultant has strong reputation in the market.
 We can change direction quickly if we find that our marketing is not working.
 We have low overheads, so we can offer good value to customers.

Weaknesses

 Our company has little market presence or reputation.


 We have a small staff, with a shallow skills base in many areas.
 We are vulnerable to vital staff being sick, and leaving.
 Our cash flow will be unreliable in the early stages.

Opportunities

 Our business sector is expanding, with many future opportunities for success.
 Local government wants to encourage local businesses.
 Our competitors may be slow to adopt new technologies.

Threats

 Developments in technology may change this market beyond our ability to adapt.
 A small change in the focus of a large competitor might wipe out any market position we
achieve

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3.1.2 PEST Analysis

PEST is an acronym for Political, Economic, Social and Technological. This analysis is used to
assess these four external factors in relation to your business situation.

Basically, a PEST analysis helps you determine how these factors will affect the performance and
activities of your business in the long-term. It is often used in collaboration with other analytical
business tools like the SWOT analysis and Porter’s Five Forces to give a clear understanding of a
situation and related internal and external factors.

Economical
Political

PEST

Social Technological

Figure 3 PEST analysis

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Economical

Through this factor, businesses examine the economic issues that are bound to have an impact on
the company. This would include factors like inflation, interest rates, economic growth, the
unemployment rate and policies, and the business cycle followed in the country.

 Stages of a business development cycle


 Present and projected economic grown and interest rates
 Unemployment and supplying of labor
 Labor costs
 Levels of disposable earn and earning distribution
 Impact of globalization
 Impact of technological and other changes on the current economy

Social

With the social factor, a business can analyze the socio-economic environment of its market via
elements like customer demographics, cultural limitations, lifestyle attitude, and education. With
these, a business can understand how consumer needs are shaped and what brings them to the
market for a purchase.

 Cultural features, health senses, population growing rate, age distribution,


 Organizational culture, postures to work, management types, staff attitudes
 Occupations, education, living standards earning capacity.
 Media views, policy changes drive to social factors, trends and publicity
 Demographics: age, civil status, gender, family size, race

Technological

How technology can either positively or negatively impact the introduction of a product or service
into a marketplace is assessed here. These factors include technological advancements, lifecycle
of technologies, the role of the Internet, and the spending on technology research by the
government. (Pestle analysis, 2014)

 Advancing of technology, discovering of technological developments, researches


funding, implementation
 Internet, global and local communications, information technology
 Licensing, patents, finding of technology solutions, inventions, researches, intellectual
property issues, implementation in manufacturing, potential innovation,

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Politics

Here government regulations and legal factors are assessed in terms of their ability to affect the
business environment and trade markets. The main issues addressed in this section include political
stability, tax guidelines, trade regulations, safety regulations, and employment laws. Government
type and reputation

 Free of the press, rules of law and stages of bureaucracy and corruption
 Regulation and de-regulations
 Public and employment legislation
 Tax policies and trade
 Environmental and customer-protection legal system
 Alterations in the political environment

Conclusion

My Toys (Pvt) Ltd is ongoing toy company and their ultimate goal is to enter global market
through E commerce solution.. Dealing with all the external asses and competitive environment
they can reveal many key opportunities and it can take advantages for deal the threats they must.
Using SWOT analysis tool we can identify what are the strength, opportunity, threats and
Weaknesses Company has to deal with in the future and present.

The PEST analysis is a tool to evaluate external factors. It is often helpful to complete a PEST
analysis prior to a SWOT analysis, although it may be more useful to complete a PEST analysis
as part of, or after, a SWOT analysis. A SWOT analysis measures a business unit; a PEST analysis
measures trends and changes in the market.

E-commerce and the potential impact on the business of a company to risks identified and
discussed under the ecommerce system, putting it into effect against the impact description toward
explanation

Types of e-commerce

 Business to Business (B2B)


 Business to Consumer (B2C)
 Consumer to Consumer (C2C)
 Consumer to Business (C2B)

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Business to Business

Business to business, also called B to B or B2B, is a type of transaction that exists between
businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer.
Business to business refers to business that is conducted between companies, rather than between
a company and individual consumers.

Figure 4 Business to Business

Examples:

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Business to Consumer
Business to consumer (B2C) is business or transactions conducted directly between a company
and consumers who are the end-users of its products or services. The business-to-consumer as a
business model differs significantly from the business-to-business model, which refers to
commerce between two or more businesses. While most companies that sell directly to consumers
can be referred to as B2C companies, the term became immensely popular during the dotcom boom
of the late 1990s, when it was used mainly to refer to online retailers, as well as other companies
that sold products and services to consumers through the internet.

Figure 5 Business to Consumer

Examples:

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Customer to customer

Customer to customer (C2C) is a business model that facilitates an environment, usually online,
where customers can trade with each other. Two implementations of C2C markets are auctions
and classifieds. C2C marketing has soared in popularity with the arrival of the internet, as
companies such as eBay and Craigslist have fostered greater interaction between customers.

Figure 6 Customer to customer

Examples:

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Consumer to Business

A consumer posts his project with a set budget online and within hours companies review the
consumer's requirements and bid on the project. The consumer reviews the bids and selects the
company that will complete the project. Enhance empowers consumers around the world by
providing the meeting ground and platform for such transactions.

Figure 7 Consumer to Business

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Chapter 4 – Proposed E-Commerce solution

4.1 Though it would generate revenue, implementing e-commerce solutions would


require substantial investment. Evaluate the overall financial implications of
implementing an e-commerce solution for an organization such as My Toys. (LO 3.3)
4.1 E commerce solution Budget

The Company would outsource the design for our store site to an E-commerce solution provider
with a proven track record in the industry for developing efficient, effective and aesthetic web site.
usage of e commerce solution can have huge cost .before implementing e commerce solution to
My Toys Company there are some main requirements to consider about

4.1.1 Web-hosting

Without the best web hosting, the ability to run a successful website is going to be seriously
hindered. One of the worst mistakes people make is to choose a provider at random. If there's a
situation that calls for some thought, consideration and research, this is it. There's a dizzying array
of companies competing for your business.

4.1.2 Optimization for the search engines

Optimization is done using META tags in the code. Metro Go offer simpler solution to create
keywords for every particular product in the Products list, this is going to be further extended with
a friendly URLs, which will use descriptive names such as names of the Products, making search
online easier and more successful.

4.1.3 Payment gateway

This is must needed service that E commerce need. Hosted payment gateways will take a customer
off from your site’s checkout page. Once user clicks on pay now button at your website, user will
be redirected to payment service provider page. Here user need to fill his/her payment details.
Once the customer has paid, he/she will be redirected back to your website to finish the checkout
process. But same hand the cost for hiring large number of personnel’s is also reduced commerce
lower the cost of operation and marketing.

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4.1.4 Capitalizing an E commerce solution.
Table 4 Capitalizing an E commerce solution.

Web-hosting

Go web-hosting
Rs. 12000.00

Geo Trust SSL certificate Rs.20000.00

Domain name registration Rs.1265.00

LLP Registration Rs.18533.00

Payment Gateway Rs.9825.00 Rs.61623.00

Equipment

Safety tools Rs. 20228.00

Packing tools Rs. 15038.00 Rs.35266.00

Intermediary services

 PayPal 2.9% fees Rs. 27068.00

 PayPal fixed transaction fees Rs. 11729.00 Rs. 38797.00

Web development

Designing and development Rs.65000.00

Marketing Rs.10,000.00

Maintain and further development RS.95000.00

Search engine optimization Rs.112500. 00 Rs.282500

Other operating costs

Labor costs (Rs. 606333.00 Hours/Years* 4 Rs.216000.00 Rs.216000.00

Total Rs.634186.00

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4.2 Based on the above justification on the market potential and the varieties of e-
commerce solutions available in the world of e-commerce solutions design an e commerce
solution for My Toys that would support the achievement their business goals. (LO 3.4)

E commerce solution

My Toys Company has decided to implement the E commerce website for their business. While
there are many variables to consider with an ecommerce solution, we can help get you started! As
one of the top ecommerce companies, we wanted to give businesses an easier way to estimate the
costs of their new website. Now, any ecommerce company can do that through this calculator tool.
The E commerce can provide the value that is significant to the business by improving the market
efficiencies and reducing the operational costs. Customer also become more interested through
website access rather than conventional shopping method.so implementing E commerce system to
My Toys Company is a wise decision they made.

Designed website

Figure 8 Designed E commerce website

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4.2.1 Characteristics selected Solution

 Registration

Customer can register free and start shopping as soon as registration complete. Online Shopping
System helps in buying of goods, products and services online by choosing the listed products
from website (E-Commerce site). The proposed system helps in building a website to buy, sell
products or goods online using internet connection. Purchasing of goods online, user can choose
different products based on categories, online payments, delivery services and hence covering the
disadvantages of the existing system and making the buying easier and helping the vendors to
reach wider market.

 Payment system

The site has the online payment system that customer can buy product online. My Toys Company
partnered with various leading banks and made the online payment portal easy and effective. If
seen world best is PayPal money transaction all this companies use this method PayPal is a high
security to money transaction PayPal is a bank company. The proposed e-commerce needs to be
more appropriate, because the payment system PayPal have chosen. What this advantage PayPal
system PayPal Express Checkout support targeted at customers, Speed up the process of their
money, the purchase of their products is a plus Because only a small amount of transactions per
month are looking forward PayPal, monthly or setup fees, per transaction fees and Prego only
business model, in this case is the same.

 Order management

Customer satisfaction is the key to business success in the long term, and customer satisfaction is
the key to accurately and reliably fulfil customer orders. Products in order for it to be processed in
real time to the customer in this case, the manufacturer, purchasing directly. After the customer
selects the product he wants to buy, two main factors are the time of delivery and payment method.
In a front-row place in the future on the customer, and pay online or request immediate delivery.
Customers enjoy more reliable deliveries and accurate order fulfilment.

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 Customer service

Specific category products customers because of cracking, if the repair can return. If not satisfied
with the quality of service or product, the money will be given back.

Some customers to solve problems using.

 Telephone
 E-mail
 Social network
 Posting
 Messaging

Discuss the question of using the online contact form or by phone, you can contact MyToys.

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4.3 Taking into consideration the security issues and applicable legislations, evaluate
the suitability of the proposed e-commerce solution for an organization such as My
Toys. (LO 3.5)
4.3.1 Security issues of E commerce websites

These basic maxims of ecommerce are fundamental to the conduct of secure business online.
Further to the fundamental maxims of ecommerce above, ecommerce providers must also protect
against a number of different external security threats, most notably Denial of Service. These are
where an attempt is made to make a computer resource unavailable to its intended users through a
variety of mechanisms discussed below. The financial services sector still bears the brunt of e-
crime, accounting for 72% of all attacks. But the sector that experienced the greatest increase in
the number of attacks was ecommerce.

 Technical Attacks

Technical attacks are one of the most challenging types of security compromise an e-commerce
provider must face. Perpetrators of technical attacks, and in particular Denial-of-Service attacks,
typically target sites or services hosted on high-profile web servers such as banks, credit card
payment gateways, large online retailers and popular social networking sites.

 Phishing Attack

Phishing is the criminally fraudulent process of attempting to acquire sensitive information such
as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an
electronic communication. Phishing scams generally are carried out by emailing the victim with a
‘fraudulent’ email from what purports to be a legitimate organization requesting sensitive
information. When the victim follows the link embedded within the email they are brought to an
elaborate and sophisticated duplicate of the legitimate organizations website. Phishing attacks
generally target bank customers, online auction sites (such as eBay), online retailers (such as
amazon) and services providers (such as PayPal). Phishing attacks generally target bank
customers, E commerce sites.

4.3.2 Legislation

The Data Protection Act controls how your personal information is used by organizations,
businesses or the government. Everyone responsible for using data has to follow strict rules
called ‘data protection principles.

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4.3.3 Solutions for E commerce security issues
 Hacking

Hacking is gaining access to unauthorized systems and resources. This allows the hacker to change
details on the website and enable it to sound as if the website owner had done this. When a website
has been hacked, the e-commerce will be forced to shut down the website until the details have
been changed and security updated. This will then affect their customers as this will then prevent
them from using the website in which could cause inconvenience for example, checking flight
times. If this was to happen often, customers will then begin to give up on the website and take
their searches elsewhere leaving the e-commerce with a loss of customers and therefore losing
money.

 Viruses

Viruses are a software that is designed to specifically damage a computer. Spreading from program
to program and software to software. If a virus has been planted into a website this will cause some
problems and complaints from their customers as whenever they enter the website, the virus will
then hop onto their computer causing damage to the computer. Once this happens the customers
will then complain and will then refuse to use the website again and warn off other potential
customers. The e-commerce will then begin to lose customers and then money. In order to prevent
this, the e-commerce website should be sure to download an anti-virus program in order to protect
their customers and their business.

 Firewall

A firewall can be hardware and software. It is a security system that controls what goes in and
out of a system. It is designed to stop any unauthorized access from using a private network.
Firewall is necessary because it can help to prevent any unwanted internet users from using the
private networks which are connected to the internet. Firewalls can slow down the server speed
as firewalls are designed to check for any potential danger and decide whether it is safe or not
before giving you access to the page. Firewalls will keep the website safe and secure meaning
that e-commerce supplier can relax a little bit knowing their website is safe and therefore their
customers are safe.

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 Secure Sockets Layer (SSL)

SSL is short for Security Socket Layer. It is a type of protocol that is used to transmit private documents
using the internet. SSL uses a cryptographic system in which uses two keys to encrypt data; a private key
and a public key. There are layers on a server that SSL has to go through before reaching the requested
data. The first layer is the outer layer. This is where the high level protocols make bay such as HTTP.
Depending on the clients request is how it is decided which outer layer is used? The outer layer high
protocols then process the request through the SSL. If the client requests a non-secure connection then it
passes through the TCP/IP layer and the server application or data. If the client requests a secure
connection the SSL layer initiates the secure connection to process to begin.

 Secure HTTP (HTTPS)

HTTPS is short for Hypertext Transfer Protocol Secure. HTTPS is used to determine how a
message is formatted, how it is transmitted and what precautions web servers and browsers should
take. HTTPS is a request response protocol which means for example a Web browser initiates a
request to a server, typically by opening a TCP/IP connection then the request itself comprises

 a request line,
 a set of request headers, and
 An entity.

The server sends a response that comprises

 Strong passwords

Strong passwords are essential to a website. Keeping strong passwords can prevent hacking. A
strong password will consist of random words that have no relation to you or anyone else and
including lots of random numbers which will be impossible to just guess. When you have a
customer signing up to your website, you should be sure to ensure they have strong passwords
before access. This will help to prevent them from hacking and identity theft meaning the customer
can then roam the website safe and secure. Not only customers but for the e-commerce supplier
themselves as this will keep hackers out of their websites where they can then then prevent viruses
and identity theft and vandalism on their website meaning both them and their customers are safe.

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 RSA certificates

This is short for Ron Rivest, Adi Shamir and Leonard Ad leman. The RSA certificate is a
professional program that offers professionals in technology the knowledge, skills and credentials
that enables them to keep up with security systems within an enterprise. Certificates are basically
just an implementation of digital signatures. One certificate is used to sign the data using a private
key, and a corresponding verification certificate is given to the user along with the signature and
the data. The user uses the verification certificate to verify that the file matches its signature.

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Self-criticism.

In general I think I did well in assignment. Even though I did well in assignment lot of areas to be
improve. There was questions that I could not understand and I did lot of research about questions
to clarify about it. Another strong point is I were able to minimize margin errors than my last
assignment.

As weak points I think main thing is bad English writing .some places in assignment I could not
provide enough information. Another thing I could not do right was add trusted Harvard reference
sites. All in all I think, I did good job in assignment and I were able to finish my assignment on
time.

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Conclusion

Throughout assignment explained about important of E commerce system for business. MyToys
(Pvt) Ltd is a toy company which stated its functions in early 2015. They sell variety of toys for
children of all ages. They are looking forward to expand their operations in different regions in the
country and their long-term business goal is to step into regions around Asia in order to build their
customer base and reputation over time. Because of this reason they are keen to introduce E
commerce system to their ongoing business

First section of this document identified what are their core business functions and who are the
stakeholders. Stakeholders related to different way to business. Some of internal stakeholders but
some of them are external stakeholders. Afterward we identified what are their objectives in
organization.

Next section of document we able to find out what are the E commerce functions and its’ benefits.
Not only that we were able find out what are the future risk that we need to lookout. There are
many positive and negative impact for society because of E commerce usage. And next point we
researched about how E commerce effected for society.

Next section we created SWOT and PEST analysis report in order to identify what are the
weakness, opportunity, threats and strength of MyToys Company. Using we were able to find out
external factors such as politics, economy, society, technology impact to the company in present
and future. Also we identified different type of E commerce systems organizations use these days
and we selected best fit E commerce type to MyToy Company before start design.

In last section of document we designed E commerce solution in order to MyToys Company to


step into global market. First we capitalize budget for our solution and then we implemented E
commerce system to MyToys Company. IN order to protect our system we were find out what are
the possible threats that can affect our system and we found best solution for those threats.

In order to achieve their goal we designed E commerce system and implemented it to the MyToys
Company.

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Gantt chart

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