INT ROD UCTION TO COMP UTER SCI ENC E – PRACTI SE CASE

Practise case

Creating
a virtual store
in Internet

Centre: Fac. Business Administration and Management

Course: Introduction to Computer Science

Year: 2006-2007
Practise case
Creating a virtual store in Internet
Introduction

Is the electronic commerce the solution or it drives directly to the subsidence of the
companies? Is it useful? Is it necessary? For whom?

Internet can be a very useful complement for many traditional existing businesses.
Nevertheless it is improbable that only the use of Internet derives in radical changes in
the business. Today, Internet is simply a vehicle with which we can communicate with
our clients (B2C) or even with our providers (B2B). Internet can be used to improve the
competitiveness of an existing company, since his principal advantage is the possibility
of reducing costs. In the traditional business, Internet is an instrument of complementary
support, and its use represents an evolution, and not a revolution.

On having evaluated each one of the business opportunities, we must value the
complexity of the solution, its cost, the available budget and if the commercial targets
that we propose can be reached or they are a utopia. Depending on our "bravery" and
on the Internet services that we are going to use, several alternatives are presented to
us:

e-mail
Answer to the inquiries
Personalised communication with customers
Service of post selling
Business communication (internal and external)
Create a connected network (lists and forums)
Web pages
Presence of the company
Publicity of the products or services
On line electronic catalogues
Search of general information
E-commerce
Selling through Internet
Tracking the customer’s orders
Buy through Internet
And the future?

The current tendency leads us to considering Internet to be a new market (and not a
channel). The development of applications and intelligent assistants will facilitate the
creation of dynamic networks of business: groups of companies that join each other to
commerce and come undone once the deal has finished. Any company might take part
in these networks, independently of the part of the world in which the business took
place. The deals will be done by mobile entities that will reside in the network and with
capacity and autonomy to clinch a deal.

But nobody can enter “suddenly” in this world. The incorporation of the new technologies
and of the new models of business must be realized gradually. That's why it is important

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 to be today in Internet, tomorrow to sell in the network and the next week to integrate our
chain of supply inside the Intranet of our business. This way, we will be able to inform the
year that comes in an auction in Tokyo for the selling of tires to Nissan and will be able to
compete with Firestone and Pirelli.

Case description.

Next the work that every group of students must realize with regard to the creation of a
virtual shop in Internet is described.

The company _________________________ wants to get in the electronic commerce

creating a virtual shop in Internet. It is a company of
sector___________________________________ and his principal activity is
___________________________________________________________. The first
step that has decided to give is to make an electronic catalogue to be published.

The place chosen to create the virtual shop is a hosting solution, which allows the
creation of a virtual shop introducing only the catalogue of products and providing a
series of customisable templates for the web design.

But before creating the shop, the Director requests a study of feasibility of the project and
they request a detailed business plan that should justify the profitability of the initiative in
Internet and should evaluate the possible risks. This report will be presented in the
shareholders' meeting and, if it is accepted, it will be used to decide the best way of
financing the project.

The final report must contain the following sections:

1) Basic proposal of plan of business.

2) Budget for the acquisition of a computer to manage the business.

3) Study of the financial statement of the proposal.

4) A data base with the products that go away to offer in he virtual shop.

5) Prototype of the shop with in Internet.

Report 1. Business Plan and acquisition of the computer

This first initial report consists of two clearly differentiated parts. First of all, a general
description of the business in Internet has to be done. It will consist of the following
sections:

 Introduction. Information about the company, service that tries to offer in Internet
and the successful companies in the same activity (if they are any).

 General targets of the business in Internet. Economic targets of the project of

business in Internet, including forecasts of income and quota of market.

 Description of the initiative of business in Internet. Description of the service or

exact product that you plan to offer through Internet.

The second part consists of justifying the need to acquire a computer with the select
characteristics. You have a budget of 1.550€ (VAT not included) that you must destine

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 the buy of the COMPUTER and to all the SOFTWARE that you need for the
development of your business in Internet.

In the report have to appear clearly:

 The needs detected according to the work you plan to realize with the
computer.

 A general description of the most out-standing characteristics that there must

have the computer (processor, memory, hard disk or any other special
necessary device). This analysis must be realized BEFORE obtaining the
budget.

 A actual budget of the computer that matches with the due characteristics and
fits to the assigned budget (1.550€). It will be penalized exceeding the assigned
budget or not accompanying the report on the budget.

 The justification of the decisions taken on the computer.

The extension of the report will not exceed 3 pages.

Report 2. Analysis of the profitability of the business

To determine the profitability of your business, usual financial information have to be

included––the profit and loss account, the cashflow statement and the balance
sheet––(first two accounts monthly detailed). Using the information in the profit ans loss
account, the breakeven will be analytical and graphically analyzed. The amortization of
the computer chosen in the previous report has to be considered, just as the
amortization of any other goods.

To summarize all this information, you have to analyze graphically the evolution of
your business (estimated monthly sales), the evolution of the profit and loss account and
cashflow statement (monthly) and the distribution of the balance sheet (asset and liability
distribution)

Over all that information, the most pessimistic case, the most probable situation and the
most optimistic case will be compared. You have to use the Scenario Tool to study
different alternatives.

The delivery consists of the Excel files that contain all the information previously
exposed.

Report 3. Creation of the catalogue in a BD

There must be created a database that allows (a) to introduce the catalogue of products
with the information needed by the shop and any other additional interesting information,
and (b) to register the realized sales, identifying your customers.

The database must consist of:

 The set of tables to maintain all the required information: catalogue of products
and record of sales, with its corresponding relationships.

 Queries that allow recovering the information. At least, two selection queries
have to be included: a customized one and other non-customized.

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  Forms for the handling of the database.

 One report that allows listing all the products in stock.

The report has to show the complete database construction process, including
conceptual and logical schemes, besides the Access file containing the physical
database with the elements before mentioned.

Report 4. Prototype of the virtual shop

Finally, the shop will be constructed "physically" with the chosen application. The shop
must include a presentation or welcome screen and other one with a description of the
activity.

Next, the catalogue of products has to be included. It must be fulfilled with all the
information you consider is important, including a picture and a brief description.

You can increase the quality of your site by adding valuable pages that include additional
information which has not direct bearing on the sales (main trademarks, access to
places that offer complementary services or news on the sector).

When you have your site finished, just send the electronic address of your site by e-mail.