ASSIGNMENT FRONT SHEET <No.

1>
Qualification

Edexcel BTEC Level 5 HND Diploma in Computing and Systems

Development

Unit number and

title

Unit 01: Business Skills for ECommerce

Assignment due

Sep 23rd 2016

Assignment submitted

Sep 23rd 2016

Learners name

L Hong Hi

Assessor name

Ngo Quoc Anh

Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature

Date

Grading grid
P1.
1

P1.
2

P2.
1

P2.
2

P3.
1

P3.
2

P3.
3

P3.
4

P3.
5

M1

M2

M3

D1

D2

D3

Assignment title

ULKOM BICYCLE HIRE

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

Task
no.

Assessors Feedback

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
stakeholders

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
solution.

2.1 analyse the impact,

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

2.2 discuss 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

3.2 evaluate current eCommerce systems in

use by organisations

You must find organizations

that are involved in the same
kind of business.

3.3 discuss the

financial implications
of an e-Commerce
solution

3.4 design an eCommerce solution

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

3.5 evaluate the

suitability of an eCommerce solution

Assessment criteria

Expected Evidence

Feedback
(note on Merit/Distinction if applicable)

M1 Analyse concepts,
theories or principles to
formulate own responses to
situations.
M2 Analyse own
knowledge, understanding
and skills to define areas
for development.
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

Assessors
Signature
IV Grading Check:

Date
Comments if any:

Agree
Disagree

IV Signature

Modify grade to

Date

<ATTACHED EVIDENCE>

Business Skills for E-Commerce

LO1. Understand the structure and aims of business
organisations
Task 1:
<1> ULKOM BICYCLE HIRE is the name of a small business organization
whose head office is located on Cambridgeshire. Their main business is hired out the
bicycle and they also have three branches office at London, Manchester and Cardiff.
For many years, they had been doing business by traditional way. In the other hand,
all of their business activity was written by hands, that must costed more time and
human resources for property and customers relationship management.
Recently, the company modernized their business by implemented software and all
manual data now will be in its database. Now the company owner has central
database with a web-based solution. And all of branches data is online now , and
customer could interact with their service through their web-site , that means beside
of go directly to store , now people could do it at home , and more convenience for
them who could rent and return at different branches because company could
update their status of resource online.//khong can thiet
The new system would improve efficiency of business and reduced error.
SWOT analysis table:
Possitive
S-Strength(Internal)
-

Experience of business
Reputation
System
data

synchronize
Reduce error
Already

have

Negative
W-Weakness(Internal)
Lack of experience in electric

form.
Need

employee
Cost more money to set up

train

or

hire

more

Customer.
O- Opportunities (External)
-

Expand market area

new customer
Cut of routine for

T-Threat
More competitive
Harm of hacker, virus
Fear of unknown
Risk of e-business law

customer service

<2>
There are some important factorials to help Company could achieve business aim.
First of all, the company already had experience and reputation itself, so the owner
doesnt need to spend time and money to build them up again.// khong de cap den
business aim ho tro nhu the nao
Second is the changing from non-electronic to electronic form that make data easier
to synchronize between head office and branches.// ho tro cai gi den business aim
Third, Because of data central and web base , so all of branches could easier to
update the status of resources , that save time for employee and customer to
choose what they need and decide what they want and other options , for example :
Customer could see the status of Bike that attracted them still available in stock or
not and what type of bike they want and how it looks like so they could have more
time to re-choose another options right away, instead of spend time to go directly to
the store .// chua co
Finally, the e-commerce environment could help the company expands much larger
their market area instead of small area which perimeter is about several miles
around the store. In addition, using new type of electronic form could make
customer feel more comfortable when they could hire and return at different store ,
that also make companys human capital grow up more faster in spite of
booking fee must be paid in advance. // khong dung, nam trong opportunities

20%

Those things will not only save a lot of time and humanity work, but they also could
increase benefit of customer relationship and make more ability of competition. In
the other hand, the company reduces the errors and improve efficiency of their
business.
// thieu stackholders

LO2. Understand the impact of e-Commerce

Task 2:
<1> Impact of E-commerce to ULKOM:
1- Impact of marketing:
a. Marketing strategy increasing effective, easier to attract customer and
riches niche market.
b. Reduce cost of marketing and also advertisement cost is smaller than
traditional for example Search Engine Optimization-SEO
c. Increase quality of customer services and event such as digital
promotion or discounting of coupon.
2- Impact of human resources management
a. Need more budget for hire and train employee on digital skills.
b. Workforce expand on demand to support highly seasonal(holiday
seasons)
c. Increase use of automation in e commerce.
3- Impact of operations
a. Planning and making business in large-scale environment more complex.
b. Concentrated on relationship with some main supplier
c. Economics of scale increasing faster and more important
d. Changing the balance of traditional market and online market.
4- Impact of finances
a. Significant investment budget required to set up e-commerce platform
and integrate with other systems
b. E-commerce now have to deal with multi-currency transactions.
c. Exchange rate changes more likely to be significant for online
businesses.

Risk of E-commerce to ULKOM:

1- Risk of information:
a. Wrong information of competitor gave us for demand
b. Risk of hacker and business secret are stolen.
c. Risk of lost business plan because of employee moving to competitor
d. Investment budget for gathering information, (need to pay for customer
and marketing environment information).
e. International legal exposure resulting for use of creative material online.
2- Risk of transaction online
a. Investment budget is need for defending the attracting from external
environment as virus, hacker.
3- Risk of operation
a. SEO investment
b. Price for competition(decrease price to beat competitor)
c. Shipping money (some of customer dont want to go directly to store)
d. Supplier cost (pay for relationship and some of bidding contract)
e. Web hosting and maintaining web site.
4- Risk of unauthorized access
a. Because of all or almost our business and privacy information now on
database , so we need to be aware of any un trusted people even
though our employee to access our database.
5- Risk of Technology
a. Electric black out cause lost property and information.
b. Internet Service provider crashes
c. Software content cause risk that violates a copyright
6- Risk of customer:
a. The scare of unknown : It is humanity reactions , people always have
scare of something they dont know clearly , so if we want to implement
ecommerce platform , we must be face with large amount of customer
decide stop using our services just because they are not sure what is it.

<2> Social impact and business impact of ecommerce:

1- Social impact :
Traditional shopping
- Prepare vehicle
- Prepare money

Ecommerce platform implement

- Computer
- Internet

Put on clothes on demand

Spend time for searching store
and product information
Spend time to try out product that
we want to buy

Digital skills
Stay at home
Virtual try out if necessary

2- Economic impact:

Traditional business
- Budget investment on
information exchange
from person to person.
- Investment is required
for each communication
or transaction.
- This is difficult to
establish and maintain
standard practices
- Communications of
business depends on
individual skills
- No uniform platform for
information sharing as it
depends on people
communication

Ecommerce platform implement

- Cost less for sharing
information via internet.
- Communication or transaction
are handles by electronics.
- A uniform strategy can easy
control in e-commerce
- There are no human
intervention in E commerce
environment
- Provide universal platform to
support commercial activities

Conclusion:
E Commerce enable to people to compare price and quality of product that help
them to get values for their money. It also save a lot of time and money for visiting
the physical stores.
In addition, E Commerce provide the simple way to business communication and
discussion, break out the limit of geographic , open wide potential reach, improve
efficiency investment finance and human resource

there for

E Commerce gives

opportunity for small business to competitive with larger business , that thing seems
mostly impossible in traditional business.
E Commerce also enhances the life experience and humanity habitual because
people are now can access and customize product and service. // truoc kia
customize chi danh cho tang lop cao, bay gio thi moi nguoi deu co
E commerce is eventually change the conception of human about business and life
circle because they could concern community opinion through electronic activities
.in addition , the society has significant changing through impact of E Commerce.
//thieu privacy

<3> Be able to design e-Commerce solutions

Task 3:
<1> Now a day , the life standard of UK is increasingly fast , so they need more
workout and entertainment activities , one of the most choosing is ride the bike . But
not too many people concern buy a bike because of lack of time for using and place
for keeping at home, so rental services is good choice for them .
Thats why there are more opportunity for Kind of ULKOM business grow up.
Especially for traveler, they travel from another city or country in euro, that very
easy now for European. Instead of high rental fees of car and motorbike, renting a
bike is not a bad idea.
There are lots of company have the same business like ULKOM for example British
bike hire, or Rutland Cycling and City Cycle Hire .
So ecommerce is needed now for adapt the kind of customer like traveler, because
they could expand the business over the country and global. We need set up the
plan for database system and transaction online through internet, and significant

investment budget for another side- business like repair and for the large group of
tourist too. Those strategy should increase much revenue source for Company in
long term.

<2> Base on Competitor situation and strategy we could evaluate our business
more clearly.
Now we get an example one 3 competitive organizations in Viet Nam : Lazada ,
Vatga and Tiki

Lazada
Total of visitor :over
3

mil/year(Rocket

internet)
The huge

system

and attractive sale

platform

through

vatgia
Total of visitor :over

1.14

mil/year(Rocket

mil/year(Rocket

internet)
The large of system
and

advertisement
Shipment services

retailers event
Number of medium

could

and small retailer

Strong support of

Vietnam

in

promotion

investor

attractive

website .
More investment for

everywhere

Tiki
Total of visitor :over

2.99

reach

internet)
Simple, save much
time

through
-

and

friendly

user interface
More investment to
system

searching

and

gathering

information service
Significant
concentrated

on

human capital and

save

time

shopping online.
The information base on Rocket Internet CO Ltd Germany

for

Base on upon table we could see how Lazada, vatgia and tiki have been setting up
and planning their strategy of marketing.
First: they all have their strength internal factor that could help them survive on
complex online market in modern business.
Second: they need to find out what Strength of their company for example: Lazada
reach to customer and marketing environment by using large investment of
advertisement instead of Vatgia base on their large numbers of medium and small
retailer to build up their human capital. Beside of them, Tiki has been trying another
way by increasing ease of use by investment to system function, in addition the
customer will feel more comfortable when using their web services, that thing
increases human capital and companys reputation.
Finally: Using budget investment in right way to keep and increase their strong
point compare with competitor.
In conclusion, they are all know the important of human capital and their when start
their business so they was trying in different way to reach this goal as fast as
possible. That thing will be the same in ULKOM bicycle in given scenario.
<3>

Financial impact of the e-Commerce solution to the company is the

effecting of resource of company. The companys business situation increases or

decrease base on some factors:
1- Impact of Financial capital: that is basic factor for business organizations
survive and improvement. The company business need to build up great
infrastructure of E Commerce system and platform such as human capital and
electronic systems, in order to jump in the complex online market.
2- Company may be able to conduct much more of business without employing
either cash or balances in own transaction accounts at financial institutions.

And we could save time and human resource for marketing and promotion
event for customer by using online advertisement and announcement. We will
have more budget to concentrate on Customer relationship and key supply
chain.
3- Not only significant change on buy side and sell side relationship, we could
also invest more to improving our customer services such as maintenance,
shipping and discount for membership..vv.v..
4- Finally we need budget for information and technology update for our ability of
competition in future too.

Task 4:
<1> E Commerce solution for ULKOM
- Investment of human resources for E commerce: Activities include bicycle
rental transactions between businesses (B2B); business-to-consumer (B2C), should
have a group of specialists take responsibility.

- Be ready to react with new technology: Always try to stay up to date with
newest technology and information to keep and increasing companys reputations.
- Sale event announcement: Make advantage of promotion, discount coupon,
seasonal event .
- Construction site: create an official website, with the central data system, that
not only make easier for customer researching our product and services but also
help reduces pressure and save time for companys employment .
- Investment of Advertisement: on the media, advertising signs placed on the
web, television, online, email.

- Online payment system: more convenience for customer and reduce time for
transaction reduces effort for employee, in the other hand we reduce risk of error.
Diagrams to fully design the structure for the proposed system.

ULKOM
BICYCLE
HIRE

Manageme
nt
Structure

Build a
website

<2> CRM (Customer Relationship

Management):
Optimizati
Traffic

Domain

WebHosting

Marketing

on for the
search
engines

analysis of
website

Order
processing

Payment
processing

Sale

Customer
Relationshi
p
Manageme
nt

Manageme
nt

Service
&
Support

Delivery
processing

Marketing :
o Advertisement, announcement and promotion event.
o Workforce planning strategy for customer and company interactions
Sale :
o Create the telesales department.
o Planning Promotion of products in stock
o Sign up discount information media, social networking
Service & Support :
o Customer care through cell phone
o Customer services through chat online and email.
o Updated information of customers, send notifications, happy birthday ...
Management :
o Human Resource Management
Training and improving human resources
Remind, disciplined companys employees take responsibility for
their work.
Take care of employees life and working environment.
o Sales Management
Create business objectives.
Develop promotional plan attached
Strategy for boosting sales such as seasonal demand.
o Costs management
Maximize of saving unnecessary costs.
Invest the budget for analysis and research marketing
environment and money flow.
Create the accountant and consultant department that evaluate
and analysis that help reduce money consumption.