Overview
You have the task of developing an e-commerce business plan for the client described in the case study below. Your planning document must meet the needs of the client and you may not choose to develop a plan for any other client (i.e. business or website). However, this case study is not intended to limit your creativity or the scope of your e-commerce business proposal.
Your must submit a report (as an MSWord format document) for the client. You may/will need to research a number of different aspects of your proposal, but some of these aspects will not be covered in lectures until Week 10 of semester - however, do not wait until that time to begin this assignment as it will take considerable time, thought and work to be successfully completed. You may refer to any authentic source in conducting your research and all references must be included in your report. You may also employ any analysis or design tool in the preparation of your report - so long as the results are suitable for presentation in the required Word document and are your own work.
Remember: this is a report intended to convince a board of directors to adopt your proposal. Your report must therefore be complete, yet concise; be clear and convincing, and professionally presented. Above all, the report must be specific to the needs of the business!
Case Study
AusNat is a SME company based in Creswick, Victoria, with a shop front retailing a range of horticulture products (including a range of propagation equipment, greenhouses, pots, sprinkling systems, and watering accessories, fertilisers and washes, hydroponic equipment, gardening products, sprays, tree guards and stakes, plants, seedlings, seeds, and bulbs). In addition to the retail business, the company operates a wholesale export business specialising in Australian native fauna. AusNat propagate the native species locally. They are a small family-owned business with capitalisation of $A12M, annual sales of $A3M, increasing at two percent per annum, and net profits of eight percent of total sales. The younger members of the management team are university educated, with the others industry experienced. However, in an ever-changing industry, their future business is uncertain.
Their main business is the wholesale sale of Australian native seeds and seedlings to International commercial retailers, however they do supply to Australian domestic and commercial retailers (currently 50 percent of sales and 50 percent of profits).
While AusNat grows its own stock, the main suppliers for the related horticulture products are based in to the AusNat are based in Perth and Sydney, although several product lines are imported directly from the UK. Supplier relations are all paper-based transactions, while long-term contracts are managed using email and facsimile transmission of orders.
The AusNat management team is keen to expand the retail sales, which are potentially very profitable for the company and to improve relations with suppliers, and growers. To do this one member of the management team (who recently graduated from the University of Ballarat) has suggested the company create new online channels for sales, marketing, and supply chain management.
You have been called in as an internet and management consultant. AusNat wants to know how e-commerce business technologies could be used to improve the company's operations. The company is keen to leave as much open as possible - you have been told that it is a 'clean sheet' strategy but cannot consume more than half the profits of next year's business. The Chief Executive, Ms Grower, needs a report from you to give the board a specific brief, along with an e-Commerce website.
Requirements
Tasks
Your e-Commerce business proposal should address:
- clearly identified e-commerce business model(s)
- how the e-commerce business will derive revenue (i.e. revenue models)
- what network and communications infrastructure will be required
- what applications will be required to meet specific e-commerce business goals
- how you will address security issues
- how you will address e-marketing requirements
- what choice of payment systems will be used
- how you will address privacy and other relevant ethical concerns
- how you will address legal issues connected with the e-commerce business
- how you will address customer service issues
- how you will measure the success of your proposal (metrics, tools)