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Edexcel BTEC Level 5 HND Diploma in Computing and Systems


Unit number and


Unit 01: Business Skills for ECommerce

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In this assignment, you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

Assessment criteria

Expected evidence


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LO1. Understand the structure and aims of business organisations

1.1 assess an
organisations core
business functions
1.2 evaluate an
organisations business
aims and show how
they relate to

What type of organization

ULKOM is and what is their
main aim?

A full SWOT analysis table.

LO2. Understand the impact of e-Commerce

- The benefits to customers

and to the organization of
introducing the e-Commerce

2.1 analyse the impact,

including the risks, of
introducing an e- The potential cost of
Commerce system to
implementing the system,
an organisation

2.2discuss the global

impact of e-Commerce
on society

any support staff that might

be needed and what back-up
Your discussion should
include a comparison of two
countries across the world.
Consider for example, the
impact of e-Commerce in the
US and UK.

LO3. Be able to design e-Commerce solutions

3.1 investigate market

potential for an eCommerce opportunity

You must find organizations

that are involved in the same
kind of business.

3.2evaluate current eCommerce systems in

use by organisations

3.3discuss the financial

implications of an eCommerce solution

3.4design an eCommerce solution

Use block diagrams to fully
design the structure for the
proposed system.

3.5evaluate the
suitability of an eCommerce solution

Assessment criteria

Expected Evidence

(note on Merit/Distinction if applicable)

M1Analyse concepts,
theories or principles to
formulate own responses to
M2Analyse own knowledge,
understanding and skills to
define areas for
M3 Exercise autonomy and
judgement when
implementing established
courses of action.
D1 Evaluate approaches to
develop strategies in
response to actual or
anticipated situations.
D2 Evaluate and apply
strategies to develop own
knowledge, understanding
and skills.
D3 Determine, direct and
communicate new courses

of action.

Summative feedback

IV Grading Check:

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Business Skills for E-Commerce

"ULKOM BICYCLE HIRE" is the name of a bicycle rental shop on a small scale
and their headquarters are located in Cambridgeshire has been active for many
years should be reputable in the market and bring confidence to customers when
choosing a leasing company bicycle rental other. The fact that they have three
branches in three major cities of England are London, Manchester and Cardiff, so the
number of their clients may be relatively large and the main purpose their business
is aimed at the domestic market. Previously with the stored information and the
company's operations by manual method, but the head of the company wanted to
improve the efficiency of the business and reduce errors and want a database to be
located in the center with a web-based solution, to all branches can be viewed
online and each branch is updated status of the bike in the company. The online
system is done well, it will attract customers and help customers easily identify
information of the company. For example, customers can book a rental one or more
of the bike and previous pay 20% of the total cost of a bicycle rental, customers can
return the bicycle to any of the three branches.
SWOT Analysis
The agent inside

Strengths S
There are some
branches located
in major cities.
Customers can
book online.
The system data
is synchronized.
External agents
Opportunities O
Branch expansion.
Add services.
Cooperation with
other company.
Analysis details of SWOT table:

Weaknesses W
Not yet have
online payment

Threats T
Competition by
the other
Financial issues.

Strengths: The strength of one company is fundamental to this

company grow and help the company achieve business efficiency.
Thanks to the company strengths that can assert itself with the partners
or the company competitive. Prestige is an indispensable element in the
business, the company "ULKOM BICYCLE HIRE" have formed very early
should reputation of the company may be relatively large. Based on that
can gain the confidence of customers, investors and partners to bring
efficiency to the business of the company. Next, companies have the
three branches located in three major cities should work to attract
customers is easy and customers can rent the car in three different
branches, customer can return at any one certain branch and free of
charge return the car. For example, Car rental customers in Cardiff can
return the car in Manchester or London. The third is customers can book
online without having to pick up the car at store and make sure to
comply with customer requirements. Strengths followed of company is
data synchronization system, to easily update the situation of bicycles in
many different branches. For example, the customers rent car and
return the car in two different branches and when customers receive
bikes the booking status become "rent".
Weaknesses: Should have online payment gateway to the transaction
between the customer and the seller is made simpler. Also contributed
to bring the trust between buyers and sellers. If the companies do not be
performing this, we can ask another company to stand out make
represents for the transaction. This can bring in business efficiency and
increase profits certain parts.
Opportunities: The first Opportunities to develop the company. If the
company has a large number of customers, expansion business scale is
essential. Can rise the number of branches in cities within the country or
abroad in order to increase profits for the company. Second, the need to
add more services to attract customers. For example, can for rent or sell
bike accessories such as protective gear, repair tools, water bottles,
watches, flashlights, addition of service as guide beautiful places to visit,
etc ... We can also partner with other companies to increase the
relationship and profit. For example, can cooperate with tour companies,
hotels, etc ...
Threats: The first challenge problem is the competition, the competition
in business is a sure thing happens. Sometimes competition can help
you perfection more and need to find for ways to help your company

eliminate opponents. These measures help we can eliminate opponents

is need to give more incentives to the customer, customer care regime
takes precedence over the media and widely promoted. For example, to
the special day of the week or month, will discounts car rental, when
customers rent car will get a gift or the rental accessories free in store,
the company's hotline operates 24 / 24 to assist customers, often
enquire the customer if not back to the shop, etc... The second problem
is the issue of finance, finance is also noteworthy points in the business.
Measures to financial management as manage inventory items can help
solve, risk management to avoid significant losses and monitor the cost
of business. For example, we can repair or liquidating some inventory to
long days, monitoring costs as the delivery date, etc ...
Task 2:
1) "ULKOM BICYCLE HIRE" is a small business in the UK bicycle rental and ecommerce application for the business. Here I will analyze the impact of ecommerce of this business:
Benefits to the organization:
Marketing: Not be limited by the scope of the market, such as the e-commerce
business help advertise, communication on a global scale, places have Internet. Not
limited amount of information, businesses can put information on the Internet to
introduce those who are interested and can also update the information in a simple
way without costly. Marketing costs lower compared to traditional marketing,
businesses have to spend only small fee to maintain their website and implement
website optimization standard SEO (Search Engine Optimization). Advertising costs
internet also much lower than advertising on television, newspapers or magazines.
Easily control the marketing efficiency than traditional marketing. For example, for
traditional marketing you cant count how many people are interested in the product
when looking at television or newspapers. Online marketing can also control the
relative effectiveness. For example, you can know how many people click on your
Increase sales: For e-commerce, customer subjects are no longer limited in terms
of geography, or time worked. Not only can sales to residents in the city, in the
country or can other countries. However, this is not problem to wait for customers
find to, should to actively seek customers for myself. Therefore, sure that the

number of customers will increase significantly leading to increased revenue, thing

that any business needs to know well. But, also must ensure the quality and price of
the product or service must be good, if not Ecommerce also does not help you.
Better service for customers: With E-Commerce, can provide catalog,
information, detailed quotation and fast, can facilitate online customers shop. In
short, E-Commerce gives you the tools to make customer satisfaction, because the
influence of time, no one has the patience to wait for information within days.
Moreover, service quality and service attitude are very important factors in finding
and keeping customers.
The competition: e-commerce is a "playground" for creativity, where it can freely
apply the best ideas, the latest for supported service, marketing strategy, etc ... And
once all the competitors are applied e-commerce, then the victory will belong person
most creative or create featured for businesses, products and services in order to
attract and keep customers .
The benefits to customers: The e-Commerce provides benefits to customers as
customers can purchase anytime, anywhere, giving customers more choice of
products and better service. Helps customers compare the products together, from
that can find be suitable price. Customers can communicate directly with suppliers
to request or support. For example, as Customer contact and urgent delivery
requirements. With SEO standards of e-commerce site, customer easy to find
information quickly. Page e-Commerce, also for auction customers the enterprise
products. Online payment gateway to help customers trust when shopping online.
Risks involved: Electronic commerce is a business activity brings high efficiency,
but once the facing risk is also significant damage. The following are common risks:
risks of data, data risks for buyers and suppliers, the risk of extortion, intrusion by
hackers, technological risks, etc... Below is a detailed description of the risks:

Risks of data: The hackers can attack the data warehouse to steal
information or delete all the information, also can occur several system issues
such as viruses attack.
Data risks for buyers and suppliers: The customer information is stolen,
block while performing transactions or orders. Customer can also spoof the IP
address and email spoofing of banking institutions. Hacker stolen credit card
information. Providers can also receive the spoofing orders.


The risk of extortion: Risk of extortion through network including the risks
threatened attack site, transmit the virus, revealing information about credit
card numbers, personal information.
Intrusion by hackers: Target of the hacker is not predictable. It is possible
that the data system of the e-commerce website, the transaction, deceptive or
they can sabotage the program to cause trouble, to discredit.
Technological risks: Technological risks that may occur when the program or
the server compromised by virus. Virus can replicate itself or cloning and
spread to many other programs. The purpose of the virus is destroying the
program, erase all data or format to the system's hard drive.

The advent of Ecommerce has a huge impact on society. It changes the
different sectors of society such as the economy, education and health etc ... The
following is a detailed description of the factors that are influenced by Ecommerce:

Time Saving: The convenience here is that you do not need to go to

the store to select a product you want, just need to access the site sales
of enterprise for product selection and ordering. Help us save a lot of
things and avoid risk issues for yourself.
Jobs: There are also many small businesses not fully capable of
performing Ecommerce sites for their businesses. Forcing them to resort
an external enterprise to design, so creating jobs for the developer web
and marketing analysis.
Disabled & Elderly: Because the elderly and disabled people cant go
to the center, shops and supermarkets. Should help they can buy the
things they need.
Education and training: This day at the university, they have applied
electronic commerce Courses for teach. Can be seen as helping the next
generation aware, potential of E Commerce.
Health: Currently there are some drug stores have applied ecommerce
for the sales. The private clinics have applied ecommerce for booking
appointment, posting information about the disease and talk online with

Task 3:


1. "ULKOM BICYCLE HIRE" is the name of a bicycle rental shop on a small scale
and their headquarters are located in Cambridgeshire has been active for
many years. They have three branches in three major cities of England are
London, Manchester and Cardiff. Due have many years of activity in this
area, should the number of business customers relatively large. It has three
branches in three different cities, but the three branches are located too far
apart should activity market is the place have office are located in that
locality. I will investigate the potential market for e-commerce solutions,
conducting bicycle rental in the local area. Including services such as:
customer can book to hire a bicycle, customers can return the bicycle to
any of the three locations, the types of bicycles available are: road bike,
mountain bike, touring bike, folding bike. The first is market analysis,
ULKOM is a market consumer merchandise slow-moving, the products are
often seasonal rentals during the year. ULKOM have loyal customer base
and many competitors. Creating competitive market where suppliers or
users do not affect the market price. For example, if ULKOM, price increase
car rental prices, customers will find to another company to reference
pricing, but a guest single row, it will not change the price of the market
because this is probably customers very few when rent bike in company.
Second, stage learn the scale of the market. We will analyze the market
size of Cambridge and London, as a place to be headquartered and where
the capital of England, with distance nearly than the remaining two
branches. Cambridge, London and six surrounding cities has about 25
bicycle rental companies and 8 city is estimated to have 10 million
inhabitants. Market size may determine that a Bicycle rental customers on
the market, multiplied by with in rent number of average person on the
market each year multiplied by the price of a car rental. Number of tenants
in the market can be estimated average population of 8 city can are 9
million person. Relevant age group 9 and older can also remaining are 8
million people. From this group, only 10% of consumers are interested in
the market price without regard to the quality of the business, 4%
interested customers to ULKOM , brought to 4000 loyal customers with
company . The average rental price is 20, on average a person can rent a
bike for a week is 52 weeks * average unit price of 20, equivalent to
1040 a renter / year. This gives us the market size of 4000 customer are
1040 * 4000 renter, it's the market scale in terms of finance. Based on the
strength of customers to exploit more of the potential of the market.
Customers can rent a bike in many different branches, but customers aged

9 to 18 should need the representative to rent a bike. This practice helps

businesses meet legal requirements. ULKOM perform competition by two
methods that directly and indirectly in London and Cambridge for the
development of e-commerce plans. There are many competitors in this
area, should take measures to defeat the opponent. For example, in London
there are bicycle rental companies like London Bicycle Tour Company,
Electric Bike Store, London Green Cycles, etc ... Grasp the strengths and
weaknesses of the business to better understand the threats and
opportunities of e-commerce impact on business development. The
possibility of ULKOM to attract online customers, especially ULKOM has
operated for many years has the number of loyal customers, it costs little
advertising investment. Electronic commerce offers the opportunity to
transform the enterprise. For example, before application of e-commerce
business, the business activities of ULKOM be processed manually. But now
had a central database with a web-based solution. Thanks to apply of ecommerce into their business, so data from all branches will be online, and
each branch will be able to see the updated status of the bike in each

2. Evaluate e-Commerce systems based on work as: Payments, order

processing, share communications, marketing and promotions and finally
customer service. Below is detailed description of each job:
Payments: To process the payment, businesses can link to the
payment gateway provider, such as PayPal. The advantage of
online payment gateway PayPal Express Checkout are instruments
aimed at customers who have an account with PayPal, enables
faster payment process. PayPal also offers incentives such as
payments accumulate points and can also handle the payment to
customers without PayPal accounts.

Order Processing: Customers renting a bicycle in a particular

branch, in this case, customers can also pay off at any branch.
ULKOM system has central database should extremely easy for
updating. Second, customers booking online and delivery
requirements, here there are two issues is time of delivery and

payment method. Customers can choose payment methods such

as online or paid in advance which is 20% of the total hire cost.
Distribution of goods and services: Tracking orders are a
function of e-commerce in order to keep customers. Tracking
orders also considered is progress review, purchases of customer.
When employees go delivery to customers, this person is
responsible for informing the customer about the delivery
progress. Create two communications to chew and to better
understand customers help build sustainable linkages.
Marketing and promotions: ULKOM have many campaigns to
promote e-commerce, you can give the customer a discount code
when renting bicycles from three or more, but discount code must
redeemable online. Through social networking sites such as
Instagram, Facebook, Twitter help reduce marketing costs.
Standards-based SEO of Google or marketing on Google.
Customer service: Creating a customer care channels online.
Ensure hotline systems are always operational 24/24. Customers
can exchange or return the product to not meet the requirements.

3. The ecommerce form is to increase profits in the business. The financial

impact e-commerce solutions are: Costs of goods and services, the cost of
equipment, intermediary services, website development costs. Below is
detailed description of each cost impact:
Costs of goods and services: Product price are the same, as the
price of a bike hire a minimum of 20, but to cover the expenses
for transport problem could add four pounds to the total bill.
Maintenance costs to average a bike is 10 and the estimated
maintenance 4000 bike / year. 40,000 will be added to the total
cost of e-commerce.
The cost of equipment: Enterprise has invested truck system
applicable to the delivery of goods and transport. The operating
costs of a truck is calculated as the cost of gasoline per vehicle,
premium per year and salary the shipper. Next, warehouse rent
costs and parking.
Website development costs: Due to the simplicity of ecommerce platform, it is necessary to just hire a web designer to
create a website for the online business.

Intermediary services: Intermediary service as PayPal online

payment gateway. An estimated 4,000 orders per year, with more
than 1,000 orders through PayPal transaction. PayPal a transaction
charge is 0.2, so 0.2 * 1000 = 200. Will be added to the total
cost of e-commerce.

Task 4:


Build a



n for the

nt Structure

analysis of




A. Build a Website:
Domain: "ULKOM BICYCLE HIRE" business has been operating on the
market for many year, to start online business need should register the
domain name for e-commerce sites. Enterprise needs to register the
domain name easy to remember and easy description as
ulkombicyclehire.co.uk, using the company provides reputable domain
name or quality assurance such as godaddy.com. Registration domain
name and similar names to avoid misspellings, and moved to the site of
the competitor.

Web-Hosting: After complete domain name registration, enterprises

have an Internet address, but need web-hosting to put the site up the
Internet. Web-hosting is the basic platform for e-commerce activities,
need to find web-hosting provider to reputable e-commerce site to
perform better.
Optimization for the search engines: The majority of customers will
not remember the address of the website and use the search tool to find
specific services. Need optimized for search engines such as creation of
keywords for each specific product. Helping customers easily accessible
to ecommerce sites of company.
Traffic analysis of website: Google analytics is a free service to
analyze the online activities of users, their shopping needs and the
effectiveness of marketing campaigns. Using this service, ULKOM will get
information related to the number of visitors and compares them with
the number of rental bike to find out the conversion rate. Increase
efficiency for finding more customers.
B. Management Structure:
Order processing: If customers access ulkombicyclehire.co.uk and
wish to book hire bike, customers already have an account on the site,
then customer add the individual requirements (if any). The staff will
receive orders and delivery based on the customer information stored in
account. New customer not has accounts can also book hire bicycles,
the customer must leave the information as requested when booking.
Employee would contact directly to the customer for confirmation and
Payment processing: Customers can choose the payment methods,
such as online payment, credit card, debit card and cash payment on
goods receipt or at the workplace. Online payments are processed
through PayPal payment gateway, even if customers do not have a
PayPal account.
Delivery processing: After confirmation of customers information put
hire, delivery staff of the company is person responsible for notification
of time and delivery schedules to customers. Must know the distribution
of reasonable time period to keep up with the time requirements of the
customers and avoid instance customer do not receive the goods or
return goods.


CRM (Customer Relationship Management ):


Based on the above four methods to help retain customers and

increase sales. Sales job, the approach to retain customers and
increase sales by optimizing product prices, sales of customer
needs, apply to sales incentives. If the sale of many products also
contributed to increased sales of the company. Besides a
reasonable marketing strategy also contributed to increased
efficiency, the need to identify the product, services of the
company and the market target to identify are customers should
be directed to. Brand marketing also contributed greatly in this
work, can make customers feel the prestige and quality of the
business. Through social networking sites for marketing helps
attract customer attention can also help customers return to
business. The services and support of good business, appealing

also help retain customers through things like create channels of

customer care, customer support channels, can send their
greeting cards on holidays or birthday, tool use autoresponder,
opens many events for genus customer. In brief, enterprise the
large number of customers then the turnover of enterprises also