Case. Virtual Store

INT ROD UCTION TO COMP UTER SCI ENC E – PRACTI SE CASE

Practise case Creating a virtual store in Internet

Centre:

Fac. Business Administration and Management

Course:

Introduction to Computer Science

Year:

2006-2007

Practise case Creating a virtual store in Internet Introduction Is the electronic commerce the solution or it drives directly to the subsidence of the companies? Is it useful? Is it necessary? For whom? Internet can be a very useful complement for many traditional existing businesses. Nevertheless it is improbable that only the use of Internet derives in radical changes in the business. Today, Internet is simply a vehicle with which we can communicate with our clients (B2C) or even with our providers (B2B). Internet can be used to improve the competitiveness of an existing company, since his principal advantage is the possibility of reducing costs. In the traditional business, Internet is an instrument of complementary support, and its use represents an evolution, and not a revolution. On having evaluated each one of the business opportunities, we must value the complexity of the solution, its cost, the available budget and if the commercial targets that we propose can be reached or they are a utopia. Depending on our "bravery" and on the Internet services that we are going to use, several alternatives are presented to us: e-mail Answer to the inquiries Personalised communication with customers Service of post selling Business communication (internal and external) Create a connected network (lists and forums) Web pages Presence of the company Publicity of the products or services On line electronic catalogues Search of general information E-commerce Selling through Internet Tracking the customer’s orders Buy through Internet

And the future? The current tendency leads us to considering Internet to be a new market (and not a channel). The development of applications and intelligent assistants will facilitate the creation of dynamic networks of business: groups of companies that join each other to commerce and come undone once the deal has finished. Any company might take part in these networks, independently of the part of the world in which the business took place. The deals will be done by mobile entities that will reside in the network and with capacity and autonomy to clinch a deal. But nobody can enter “suddenly” in this world. The incorporation of the new technologies and of the new models of business must be realized gradually. That's why it is important

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to be today in Internet, tomorrow to sell in the network and the next week to integrate our chain of supply inside the Intranet of our business. This way, we will be able to inform the year that comes in an auction in Tokyo for the selling of tires to Nissan and will be able to compete with Firestone and Pirelli.

Case description. Next the work that every group of students must realize with regard to the creation of a virtual shop in Internet is described. The company _________________________ wants to get in the electronic commerce creating a virtual shop in Internet. It is a company of sector___________________________________ and his principal activity is ___________________________________________________________. The first step that has decided to give is to make an electronic catalogue to be published. The place chosen to create the virtual shop is a hosting solution, which allows the creation of a virtual shop introducing only the catalogue of products and providing a series of customisable templates for the web design. But before creating the shop, the Director requests a study of feasibility of the project and they request a detailed business plan that should justify the profitability of the initiative in Internet and should evaluate the possible risks. This report will be presented in the shareholders' meeting and, if it is accepted, it will be used to decide the best way of financing the project. The final report must contain the following sections: 1) Basic proposal of plan of business. 2) Budget for the acquisition of a computer to manage the business. 3) Study of the financial statement of the proposal. 4) A data base with the products that go away to offer in he virtual shop. 5) Prototype of the shop with in Internet.

Report 1. Business Plan and acquisition of the computer This first initial report consists of two clearly differentiated parts. First of all, a general description of the business in Internet has to be done. It will consist of the following sections: 

Introduction. Information about the company, service that tries to offer in Internet

and the successful companies in the same activity (if they are any). 

General targets of the business in Internet. Economic targets of the project of

business in Internet, including forecasts of income and quota of market. 

Description of the initiative of business in Internet. Description of the service or

exact product that you plan to offer through Internet. The second part consists of justifying the need to acquire a computer with the select characteristics. You have a budget of 1.550€ (VAT not included) that you must destine

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the buy of the COMPUTER and to all the SOFTWARE that you need for the

development of your business in Internet. In the report have to appear clearly: 

The needs detected according to the work you plan to realize with the computer.



A general description of the most out-standing characteristics that there must

have the computer (processor, memory, hard disk or any other special necessary device). This analysis must be realized BEFORE obtaining the budget. 

A actual budget of the computer that matches with the due characteristics and fits to the assigned budget (1.550€). It will be penalized exceeding the assigned budget or not accompanying the report on the budget.



The justification of the decisions taken on the computer.

The extension of the report will not exceed 3 pages.

Report 2. Analysis of the profitability of the business To determine the profitability of your business, usual financial information have to be included––the profit and loss account, the cashflow statement and the balance sheet––(first two accounts monthly detailed). Using the information in the profit ans loss account, the breakeven will be analytical and graphically analyzed. The amortization of the computer chosen in the previous report has to be considered, just as the amortization of any other goods. To summarize all this information, you have to analyze graphically the evolution of your business (estimated monthly sales), the evolution of the profit and loss account and cashflow statement (monthly) and the distribution of the balance sheet (asset and liability distribution) Over all that information, the most pessimistic case, the most probable situation and the most optimistic case will be compared. You have to use the Scenario Tool to study different alternatives. The delivery consists of the Excel files that contain all the information previously exposed.

Report 3. Creation of the catalogue in a BD There must be created a database that allows (a) to introduce the catalogue of products with the information needed by the shop and any other additional interesting information, and (b) to register the realized sales, identifying your customers. The database must consist of: 

The set of tables to maintain all the required information: catalogue of products and record of sales, with its corresponding relationships.



Queries that allow recovering the information. At least, two selection queries

have to be included: a customized one and other non-customized.

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

Forms for the handling of the database.



One report that allows listing all the products in stock.

The report has to show the complete database construction process, including conceptual and logical schemes, besides the Access file containing the physical database with the elements before mentioned.

Report 4. Prototype of the virtual shop Finally, the shop will be constructed "physically" with the chosen application. The shop must include a presentation or welcome screen and other one with a description of the activity. Next, the catalogue of products has to be included. It must be fulfilled with all the information you consider is important, including a picture and a brief description. You can increase the quality of your site by adding valuable pages that include additional information which has not direct bearing on the sales (main trademarks, access to places that offer complementary services or news on the sector). When you have your site finished, just send the electronic address of your site by e-mail.

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