Undertake a Cost-Benefit Analysis for Your Chosen Solution to Her Problem D1

Topics: Cost, Cost-benefit analysis, Costs Pages: 1 (340 words) Published: April 15, 2013
Undertake a cost-benefit analysis for your chosen solution to her problem D1

I shall start with the stake holders, Emily needs to take everyone that is capable to carry on in the company and calculate their earnings compared to the total costs of last year’s profits. The stakeholders also need to identify whether or not all staff will be needed also they will need to make sure there will be enough floor space. A cost benefit analysis finds, quantifies, and adds all the positive factors. These are the benefits. Then it identifies, quantifies, and subtracts all the negatives, the costs. The difference between the two indicates whether the planned action is advisable. Below I will pinpoint costs with benefits.

Costs| New database| New spreadsheet| New Website| Existing system| Paper based| Initial construction| £150 (3)| £150 (3)| £150 (1)| £0 (0) | £0 (0)| Monthly maintenance | £0 (0) | £0 (0) | £49.99 (5)| £0 (1)| £0 (1)| Software | £0 (1)| £30 (1)| £500 (4)| £0 (1)| £0 (1)| Average| 4| 4| 11| 2| 2|

Benefits| New database| New Website| New Website| Existing system| Paper based| Emily is satisfied| High (4)| High (4)| High (3)| N/A (0)| N/A (0)| More bookings| High (4)| High (4)| High (3)| N/A (0)| N/A (0)| Customers happy with no mistakes on website; spreadsheet; database.| High (4)| High (4)| High (3)| N/A (0)| N/A (0)| weighted| 8| 8| -2| -4| -4|

Average| 4| 4| 3| 0| 0|
Benefit averages| 2.25| 2.25| 3.15| 0.65| 0.65|
Overall total| 5.3| 5.3| 6.3| 1.3| 1.3|

As you can see there are more benefits than costs. But overall looking at the system, statistics, I still think and recommend that you should use Microsoft access. Because with Microsoft access you can connect to Excel tables, your staff and users are already used to it and will have a good understanding so there will be no training needed therefore saving more time and money for the company....