1.

1 Functional areas of Ocean market

 HR department
Is the department which is in charge of employees working in ocean market and
it is responsible of all the necessaries and decisions making on employees.
Main tasks
-manpower planning
-job description
-determining wages and salaries
-recruitment and selection
-provide training and motivate employees

 Sales department
Ocean market sells verity of products under categories such as textiles,
cosmetics, accessories, computer accessories, baby items, stationery items and a
variety of food products. So sales department task is to increase sales of
particular products.

 Marketing department
is responsible of upholding the brand name of ocean market and attract more
customers by advertising on their products and promoting new products.

 Managing department
Main task of managing department is decision making such as they decided to
provide customers the online shopping facility.

 Financial department
All the financial and accounting staff of ocean market is done in this department.

1.2 Aim of ocean market pvt

As a private sector business the main aim of the business is to make profit and gain
goodwill by providing a better service to customers but due to unavailability of online
 shopping facility management has realized that they lose their customers as well as a
decrease in the profit. So now their aim is to regain the profit and customers by
introducing e commerce facility.

Internal stakeholders External stakeholders

o Business owners – get the ability of
expanding their business locally and
globally too.
o Employees – when the organization
getting expand employees will be
affected in many ways such as
employees will get stressed out by
burden of work but they will gain
more experience of dealing with
customers. Also in such case they
will get a training and knowledge
about new technologies. So these
factors will leads to increase in
employees salary rate as well.
o Investors – as the new decision is a
profit making decision, investors
will benefited by a rise in their
share.
o Customers – will definitely
benefited by a better service and the
facility of online shopping.
o Suppliers – rise in sales means
definitely there should be a increase
in supplying of goods too. So
suppliers will benefited by a better
income.
o Government –due to the new
decision there will be transactions
overseas too. So for every
transaction doing overseas a tax will
be added on delivery and should get
quality approval for the products
being sell.
o Creditors - when the business makes
more profit they will be able to
settle their credits.

(Author designed)
October 04, 2015, 2:53:27 PM

2.1 The Impact of e-Commerce

Ecommerce was introduced since 1960s and it has done a major change in business world
over the past 55 years. Now a days it is necessary to come up with e commerce when starting
a business. Because the market has become so competitive cause of ecommerce so to survive
in the market new companies should come up with ecommerce.
Source (by Elaine J. Hom)
October 05,2015,5:02:30pm
Risks and benefits
Benefits on customers
 Convenience – all products can be find
easily on online stores with every needed
details and reviews. So costumers do not
need to visit shops they can just order
goods by staying at home.
 Saving time – travelling to the shop
means a real wastage of time with traffic
jam and distance so instead of
ecommerce customers can totally cut of
the travelling time as well as travelling
cost.
 Review – with online shopping customer
get the advantage of comparing the
particular product or another product with
similar products or any other kind of
product offered by various suppliers with
prices and all the needed views of the
product.
 Trust worthy – with the product it
provides all the details about the supplier
sometimes including history of the
particular organization. With the product
the ratings for the product also clearly
mention so nothing to worry on trusting
suppliers.
 Extra benefits – with online shopping
sometimes customers can enjoy benefits
such
As seasonal offers and deals than in a
physical store.
risks on customers
 Lack of privacy and security –to do a
safe transaction the particular dealers
should be trust worthy and customers
should check whether the dealer safe
enough to do a transaction because no
one doesn’t like to be stolen their
private details and it is a big risk.
 Quality of the product – in online
shopping customers will not be able to
check the product physically so
sometimes the product might not have
the quality that customer expecting so
there is risk with the quality of the
product.
 Delay in receiving goods – sometimes
there will be delays in delivering goods
so in such case customers won’t receive
the goods within in the recommended
time.
 Lack of interaction – there will be no
physical interaction with the customer
and dealer.
 Access difficulties – the people who are
without internet or people who are
without the computer knowledge will be
unable to get the use of ecommerce.
Benefits on business
 Reduction of cost – organization can cut
off the cost of distributing labour cost
and no need of property to display their
products as well as the organization have
the advantage of reducing advertising
cost on new products.
 Increase in sales – all most all the private
business aim is to increase sales by
increasing sales so through ecommerce
suppliers has the ability to focus not only
locals customers but overseas too.
 Open hours – Sometime physical stores
will have to be close due to seasonal
matters and its has a specific time to be
open and close the store but for online
stores there no specific time to open the
store and to close(business hours) its
open on 24hours, 7days,and 365 days. So
definitely it will leads to increase sales.
 Instant transactions – suppliers will get
the advantage of getting the payment just
at the moment consumer order the
product and no more waiting for clearing
checks. Also no credit transactions will
be done.
 Research and feedbacks – for reaches
sometimes business teams will have to go
to door by door or to each person in
random so it is a complete wastage of
time. But with ecommerce it is possible
risks on business
 Security issues- protecting personal
details from people who trying to steel
is not a easy task. But the business
should take the responsibility of
protecting customer personal details.
 Returns and complains – sometimes
although the ordered product has been
delivered if customer complains that
they didn’t receive the product the
business will have to refund the money.
 Lack of brick coordination – When the
company started to earn more money
through e commerce sometimes there
will be lack of coordination in brick
stores.
 Developer issues – some secured details
of the business will have to reveal to
web site developers so there’s a risk of
miss using business private details.
 Threats – after got into the world
market threats from foreign competitors
and home country competitors who are
involved in same field is a common
thing but what kind of threats will get is
a real risk.
 to do researches online and also the
feedbacks too.

(Author designed)
October 10,2015,10:12:28 am

2.2 Global Impact of e-Commerce on society

Positive Impact of E-Commerce on society
disable and old age people

there are so many people who are even unable to buy their necessary stuff because of their
being disable and too old so visiting a shop physically and distance is a real problem for
them. But over ecommerce they don’t need to suffer by their difficulties, they can do
shopping staying in their comfort.

Jobs

Ecommerce of a business is a separate functional area of business so to build and for

maintenance of the websites and system business will have to hire or get employees who are
capable of functioning the particular department. So it creates job opportunities.

Quality goods

Sometimes people in developing countries will not get chance to consume foreign products
which are high in quality even they are capable of affording. But over online shopping they
will get a chance to buy high quality goods which manufactured in use, Japan and
Switzerland. So that increases the people standard of living.

Negative impact of ecommerce on society

Unemployment

When business is getting more profits from online stores than brick stores business owners
will encourage to pay more attention on online stores and to cut off the expenses on brick
stores staff will be reduced so there will be a reduction in jobs.
Lack of social interaction

Ecommerce gives the ability to consumers to do even day to day work such online banking
over internet so there will be no need of visiting physically. So people will not meet each
other and this will leads to lack of interaction.

October 15,2015,3:18:30 pm

3.1 market potential of e commerce

Target markets

Targeting an d analyzing that what are the goods to be sale and what are the group of
customers that particular goods going to sell is a necessary step in business planning. As
ocean market sells verity of products, every category of product is different from each other
so they have to target different group of customers on different categories such as cosmetic
items for ladies and clothing for both ladies and Jens.

Distinguishing characteristics

As Ocean market is a currently operating business in the market, their well known on
customer needs and they are being able to provide customer the maximum satisfaction like
seasonal offers such as special offers on Christmas, new year.

How much market share can you gain

Ocean market as brick store operating in a limited area but when it get use to ecommerce they
will able to deal worldwide. So if the current market share is 10% ocean market management
can at least expect a percentage of double(20%).

Pricing target

There will be no change in price as brick and click stores but ocean market is planning to
offer a 10% discount on each item for a limited period to promote the site.

October 23,2015,1:02:58 pm
3.2 Different e-Commerce Systems in the World

I. Alibaba.com
Alibaba.com is the leading platform for global wholesale trade serving million
of buyers and suppliers around the world. Most of the members on
Alibaba.com are manufacturers or trading companies or resellers who trade in
large order quantities

II. Ikman.lk
Ikman.lk is the place where buyers and sellers meet virtually but over ikman.lk
people will be able to find needed goods at very low price that couldn’t found
in traditional or brick store markets. Also ikman.lk is not restricted only for
wholesale suppliers, everyone is capable of advertising on it independently.

III. Singer shopping

Today, Singer (Sri Lanka) PLC. is a large, diversified company with
unmatched presence throughout Sri Lanka. It remains a member of the
worldwide franchise of Singer.

Singer's product portfolio has diversified to encompass a highly successful

multi-brand strategy combining products of top world marques with the
company's own products across a range of household, industrial and financial
categories.

As the most similar business to the ocean market I proposed the system used
in singer plc

(To see screenshots and links refer Appendices)

Swot and pestle analysis on singer plc

Strengths

 Singer plc is capable of dealing as both brick and click stores.

 Singer plc is always highly guaranteed on their products.

  As a successful awarded business singer plc has archived the goal of being
a strong, trusted and recommended brand name by customer.

 Ranking up the business

Weaknesses

 Similar businesses in same field engage in selling products of same brand

name such singer and singhagiri both engage in Samsung products.

 Difficulties in managing staff.

Opportunities

 Being more innovative.

 Willingness of customers on online shopping.

 Increase the number of outlets locally.

Threats

 Increase in importing tax

 Strong brand names of competitors such as abans.

 New innovations from competitors.

Pestle analysis

Political

Politically there are some trade barrios, tariffs and taxes made on the business and generally
but as a success and a obedient business singer plc is able to carry out their business with
respecting to the laws.

Economical

As singer plc is a foreign product distributing company, it will affect the

economy both positively and negatively.

When importing foreign products a high tax will be charged so there will be a high flow of
tax income to the country but as well there will be a high outflow of home currency too.
Social

Singer plc is highly growing business in retail trade, so as it grows it makes lot of job
opportunities to the market and also singer plc is highly guaranteed on the quality of their
product, means it positively affects to customer standard of living.

Technically

Singer plc is a very popular brand name for electrical appliances so they are always update on
modern technologies and always provide the latest technology for their customers.

Legal

Environmental

Singer plc is a very environmental friendly organization, they been following a process of
examining components of each products lifecycle through various stages to minimize the
environment pollution and also they have a separate management operating a program me(e-
waste) which protects the environment.

Octomber 27,2015,8:20:18 am

4.1 best fit ecommerce solution

When compared to other two sites,alibaba.com it contains wholesale and bulk deals only
where as ocean market does only retail deals and ikman.lk contains all the categories of
products which gives a complex view on the site but in singer plc site they contain only
categories which they sell and no wholesale deals.

Alibaba.com and ikman.lk both the sites can be use by any seller but singersl.com is
restricted only for that particular business which leads to minimize the risk. Because the
particular business is a trusted business.

A great benefit In creating a separate site for the business than selling in other shopping sites
is the company get the chance of design their site as they want which can use to give a
complete view on their organization attract more customers.

Concern to factors mention above, the best fit e commerce solution is e commerce system
used in singer plc. Because singer plc also a retail business very similar ocean market.

October 30,2015,12:45:06 pm
4.2 financial implication
Annual cost system up to 1000 products

Domain (per year) Rs 7000

Business email Rs 7000

SSL certificates (per year) Rs 2200

Maintenance (per year) Rs 10000

Monthly cost system

Website(including search engine optimization Rs 5000

basics, payment integration, shipping integration

Implementing system

Designing(including customization) Rs 55000

Add products and contents (if required) Rs 5000

Total cost on system Rs 91200

Monthly expenses

Salary Rs 30000

Electricity charges Rs 800

Internet charges Rs 1600

Total monthly expenses Rs 32400

Hardware & Quantity Cost
software

Innovex “16” 1 Rs. 14,000

LED monitor

1 Rs 7,600
Toshiba 1TB hard
drive
Logitech k600 1 Rs 750
keyboard

Toshiba mouse 1 Rs 500

Power supply 1 Rs 3,000

Intel server board 1 Rs 27,000

S1200bt

Cherry pc casing 1 Rs 1,800

Intel core I3 1 Rs 16,000

2GB ddr2 ram 1 Rs 4,500

2GB EVGA GT610 1 Rs 8,250

Cyberpower BU 1 Rs 4,500
600E-UN UPS

modem 1 Rs 3,000

router 1 Rs 5,000

Operating system Rs 26,000

with internet virus
guard

Total cost on hardware & software Rs 121,900

(Author designed)

November 02,2015,10:20:14 pm
4.3 feasibility of e commerce solution

Technology feasibility
Before implementing a e commerce solution it is necessary to analyze weather ocean market
have enough technological resources to work out the proposed system.

Hardware

a. Computers with enough system requirements(core i5 processor, 2 GB ram, 2GB vga

and 1TB hard drive)
b. Networking facilities(Internet service provider, modem and router.
c. Power supplies and UPS

Software

a. Windows 7, 8.0 or 8.1 versions.

b. Web browser

Other

a. Required range of electricity

b. Online payment facilities

Economical feasibility

Economical feasibility is to show weather the proposing system will affect negatively or
positively to the particular business.

Total cost on system Rs 91200

Total monthly expenses Rs 32400

Total cost on hardware & software Rs 121,900

Total Rs 245,500
 Tangible benefits

Increase in sales by Rs 270,000

Reducing advertising cost by Rs 50,000

Reducing brick store expenses by Rs 80,000

Total tangible benefits Rs 400,000

Intangible benefits

 Increasing customer relationships

 Expanding business name and sales by reaching global market
 Lowering entry barrios to new market
 Customer satisfaction
 Giving up labors a good opportunity to engage with modern technology

Schedule feasibility
Legal feasibility
As a standard website this has created respecting government rules and regulations and
specific qualities that a website should have.

Government rules that we concerned

 Copyright violet
 Domain name
 Trademarks
 Defamation
 Linking and framing

Qualities

 Ocean market website does not contain any images of females.

 Does not contain any graphics that are unrated.
 Does not contain contents that are harmful.

Operational feasibility
By operational feasibility We have showed the success of this project to customers to ensure
that this solution will really workout in usability.

 User friendliness is guaranteed.

 This project has made to copy with changes.
 Process of ordering and paying is well checked tested with no any errors.
 All the barcodes of added products are inserted. So sold items will be automatically
calculated by the barcodes.
 User guidance and modifications will be done when setting up the program.

November 05,2015,5:06:12 pm
Reference

http://smallbusiness.chron.com/internet-impacted-businesses-321.html

The Impact of e-Commerce (by Elaine J. Hom) Updated Feb. 26, 2015.

http://www.businessnewsdaily.com/4872-what-is-e-commerce.html

http://www.muhlenberg.edu/depts/abe/business/miller/ecrisks.html

http://www.enkivillage.com/e-commerce-advantages-and-disadvantages.html

Global impact on ecommerce -(by james lupton) updated 2014-01-06

http://jameslupton.blogspot.com/

http://it-source.net/en/E-commerce/

Swot and pestle analysis on singer plc By Jim Makos | Dec 30, 2013
http://pestleanalysis.com/swot-analysis-examples/ , http://pestleanalysis.com/what-is-
pestle-analysis/
Singer shopping http://www.singersl.com/events.asp

Financial implications http://www.ecorner.com.au/FAQs-Questions-Ideas-Centre/Costs-

Issues-Starting-An-eCommerce-Online-Business#.Vjtod6Sqqko

Appendices

http://www.alibaba.com/
http://ikman.lk/

http://www.singersl.com/