Business Skills for Ecommerce

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RDI/EDEXCEL Level 4 BTEC Higher Nationals Computing and Systems Development Business Skills for e-Commerce Assignment

Tutor: Steve Presland

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Introduction This assignment will enable you to apply the business skills needed to design an eCommerce solution for a music production company. You will need to consider the organisation and processes of the company and consider what the impact of the Internet and e-Commerce has been on the company. Answers to the tasks will demonstrate: 1: An understanding of the structure and aims of business organisations. 2: An understanding of the impact of e-Commerce 3: An ability to design e-Commerce solutions

Task You have been provided with a description of a music production company which is considering providing a service where customers can download MP3 versions of the music they produce from their own web site. You will need to consider the effects of this proposal on the organisation and processes of the company. You will need to investigate the impact of the Internet on the music industry. Scenario Drums Rock is a small independent company which is owned by two partners and has been in existence for more than twenty years. It is based in a specialist music shop in Birmingham in the centre of England. As this is the home of many famous rock bands such as Black Sabbath, they naturally focus on this style of music and, in particular, drum kits. In addition to selling drum kits and other music related items the company specialises in producing music by rock artistes which it releases in CD and Vinyl format. The CD/Vinyl format is sold direct via a phone line, through retailers via music distributors and at concerts. Drums Rock hires the recording studio and when the recording is produced they have the Vinyl and CDs produced by outside organisations. The invoicing and payment relating to customers and suppliers is basically a manual process supported by records held on a PC. The reason why Drums Rock has not released music via MP3 format before is that there is a resistance from rock listeners to the format. Rock listeners are very concerned about the quality of the recording and the MP3 format provides a lower quality format than Vinyl and CD. However, Drums Rock considers that the ease of using the MP3 format on many different devices could outweigh the quality deficiencies.

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Task 1 – Understand the structure and aims of Business Organisations. Provide an assessment for the owners of Drums Rock of the potential impact on the organisation's aims, structure, functions and stakeholders of implementing an Internet based facility for the sale of music in an MP3 format. The assessment should consider what it means for the potential markets, effects on current distribution channels, the structure and organisation of the organisation. This task will allow you to demonstrate the following: Learning Outcome 1.

Task 2 – Understand the Impact of e-Commerce.
Provide an assessment of the impact, the risks and financial implications of introducing an eCommerce function into Drums Rock. The assessment should consider the impact on the organization, the global impact of e-Commerce, the potential risks involved in e-Commerce and the possible financial factors such as costs/benefits. This task will allow you to demonstrate the following: Learning Outcome 2.

Task 3 – Be able to define the objectives of e-Commerce solutions. Provide a statement for the owners' of Drums Rock that describes the following for the proposal for an e-Commerce solution: Objectives Market Research Target markets Market potential

This task will allow you to demonstrate the following: Learning Outcome 3.1.

Task 4 – Design of an e-Commerce solution
Produce a high level design document for the proposed Drums Rock e-Commerce solution which covers the following areas: Technology requirements e.g. hardware, software, security, maintenance, back end systems, supply sources, distribution channels. Payment...
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