Chapter 5-6

IDCS: eBusiness (Part Time)

WEDNESDAY, MAY 23, 2012 

Q1: Define "direct materials" and "indirect materials". List reasons for a large company having two separate departments to manage the purchasing of each.

Direct materials are those materials that become part of the finished product in a manufacturing process. Steel manufacturers, for example, consider the iron that brought to be direct materials. The process for direct materials is an important part of any manufacturing business because the cost of direct materials is usually cost very expensive then indirect materials.

Indirect materials are all other materials that the company purchases, including factory supplies such as sand paper, hand tools and replacement parts of manufacturing machinery. Indirect materials items are often called maintenance, repair and operating supplies.

Large companies usually purchasing direct and indirect materials to separate departments. This is primarily because the procurement process differs significantly.

- Most companies include the purchase of non manufacturing goods and services, such as office supplies, computer hardware and software and travel expenses.

- Many vendors that manufacture general industrial merchandise and standard machine tools for a variety of industries have created Web sites through which their customers can purchase materials.  

 

Q2: In about 200 words, describe the reasons a buyer might have for wanting to participate in an industry consortium marketplace instead of setting up its own private company marketplace.

An industry consortium can also be known as a partnership. A partnership is commonly formed where two or more people wish to come to together to form a business. Perhaps they have a common business idea that they wish to put to the test or have realized that their skills and talents compliment each others in such a way that they might make a good business team. Forming a partnership seems like the most logical option and, in some cases, it is. Running a small business with a reasonably low turnover, a partnership is quite often a good choice of legal structure for a new business. Being a partnership, the business owners necessarily share the profits, the liabilities and the decision making.

Advantages

-The more money they can put into the business, which will allow better flexibility and more potential for growth. It also means more potential profit, which will be equally shared between the partners.

-They are less strictly regulated than companies, in terms of the laws governing the formation and because the partners have the only say in the way the business is run (without interference by shareholders) they are far more flexible in terms of management, as long as all the partners can agree.

-Partners share the decision making and can help each other out when they need to. More partners mean more brains that can be picked for business ideas and for the solving of problems that the business encounters.

Disadvantages

-One of the most obvious disadvantages of partnership is the danger of disagreements between the partners. Obviously people are likely to have different ideas on how the business should be run, who should be doing what and what the best interests of the business are.

-Because the partnership is jointly run, it is necessary that all the partners agree with things that are being done. This means that in some circumstances there are less freedoms with regards to the management of the business.

-Ordinary Partnerships are subject to unlimited liability, which means that each of the partners shares the liability and financial risks of the business.

-Partners share the profits equally. This can lead to inconsistency where one or more partners aren’t putting a fair share of effort into the running or management of the business, but still reaping the rewards.

As a conclusion, there are several advantages and disadvantages of partnership in terms of a business undertaking. Every team must have a good working knowledge of the law and the current advantages of partnership over the other legal forms of business in order to run a success business.



Q3: Which industries were the first to establish standard RFID technology? In about 100 words, state why, in your opinion, these industries were more interested in RFID tag technology than other industries.

RFID is the reading of physical tags on single products, cases, pallets, or re-usable containers that emit radio signals to be picked up by reader devices. These devices and software must be supported by a sophisticated software architecture that enables the collection and distribution of location-based information in near real time. The complete RFID picture combines the technology of the tags and readers with access to global standardized databases, ensuring real time access to up-to-date information about relevant products at any point in the supply chain.

Tags contain a unique identification number called an Electronic Product Code (EPC), and potentially additional information of interest to manufacturers, healthcare organizations, military organizations, logistics providers, and retailers, or others that need to track the physical location of goods or equipment. All information stored on RFID tags accompanies items as they travel through a supply chain or other business process. All information on RFID tags, such as product attributes, physical dimensions, prices, or laundering requirements, can be scanned wirelessly by a reader at high speed and from a distance of several meters.

The first industry to establish RFID was used over sixty years ago by Britain to identify aircraft in World War II and was part of the refinement of radar. It was during the 1960s that RFID was first considered as a solution for the commercial world. The first commercial applications involving RFID followed during the 70s and 80s. These commercial applications were concerned with identifying some asset inside a single location. They were based on proprietary infrastructures.

These industries use it for security use, tracking, detecting distant objects and determining their position, track weather formations, wind speed etc.

Conclusion

RFID offers new levels of visibility for companies that want to track physical items between locations. In the retail supply chain, goods tagged at the point of manufacture can now be traced from the factory to the shop floor, providing a real time view of inventory for all supply chain partners.

Awareness of RFID technology and the benefits it delivers is increasing across the industry. By playing a key role in developing the infrastructure required for RFID, Microsoft is contributing to the momentum of mass deployment.

chapter 4

IDCS: eBusiness (Part Time)

monday, MAY 7, 2012

Test 1 : Chapter 1- 4

Question 1:

Select a retail store with which you are familiar that has aWeb site on which it sells products or services similar to those in its physical retail stores.

Explore the Web site and examine it carefully for features that indicate the level of services it provides. Using your experiences in the physical store and review of the Web site, write a 200 word evaluation of the company’s touch point consistency.

Dee Jay Home Video was founded in 1986. With a commitment to provide quality services for home Video Entertainment. Today, Dee Jay Home Video has five(5) branched catered sales & services from a range of DVD(Movies and Games) B/Ray (Movies) to Electronic Games Player with accessories, Hand Phones with accessories, Computers with accessories, Digital Cameras with accessories, Handy Cam with accessories and AVA Facilities with accessories etc.

The founder is respected with a proven tack record of successfully Home Enterteinment and IT enterprises. He is highly motivated and successful person brings a unique peron quality and personal expertise to the company.

At Gadong, other than selling VCD,DVD Dee Jay Home Video was also introduced the new product by selling electronic games and hand phones. This area is now became the main Town where most of the businessman move to this area. Selling hand phones and electronic games were also very challenging. In order to survive in this kind of business Dee Jay Home Video must ready to complete with them strongly and patiently.

 Most of the hand-phones nowadays provide the high technology facilities such as WiFi, 3G/UMTS network, Microsoft Window, Bluetooth and etc. From the Dee Jay website we can check for the latest phone, computers etc in store. It is easier and save time. Also from internet we can compare the price between one shop to another.

Question 2

What were the main forces that led to the commercialization of the Internet? Summarize your answer in about 100 words.

With the  commercialization  of  the  internet,  everyone  can  know what the latest product or services that  offered  from  the  website. From  internet  also it is  easier to access  anytime  and anywhere for the customer convenience.

Question 3

Describe two possible service-for-fee offerings that might become available to users of Internet-enabled wireless devices(such as iPad or mobile phones) in the near future. Write one paragraph for each services in which you outline the profit potential and risk of losses for each.

BIBD ON-LINE – With an internet banking account customer can quickly check account details and transaction history. Customer can also check their credit card outstanding and available limit etc. No more long queue just to check it and no more rushing to the bank for it. But the disadvantage is when BIBD don’t updated their website regularly and also when the system is down, this will disappoint the customer to do on line banking.

DST – are a diverse group providing mobile services, broadband, broadcasting and content. Datastream Technology Sdn Bhd is the Holding company that supports the Group subsidiarie’s operations. DST’s 2G, 2.5G and 3.5G in providing Mobile Broadband on HSPA Broadband network capable of supporting download speeds of up to 14.4 Mbps. It has reached another milestone in providing Blackberry service. DST also provides mobile portal services for its customers. DST prides itself with over 400 thousand customer’s and with over 700 DST Group employees. But there are some disadvantages, that is when DST don’t have network coverage and when they charged too high on the bill for the PRIMA USER especially  from roaming services and internet usage.

Question 4:

In two paragraphs, explain why a customer-centric Web site design is so important, yet is so difficult to accomplish.

Customer centric website design involves creating a commercial website that meets the wants and needs of a business’s customers and prospects. An effective customer centric design process requires the creator to put themselves in the customer’s place to develop a site that is user-friendly, while providing all the information needed to make a buying decision. Customer centric websites provide a number of key business benefits. A customer centric website leads to ease of use. The site should be clearly organized, easy to navigate and not bog down the user with needless information that confuses or distracts them. Organize the sited so that it contains clearly labeled categories and include easy-to-find links or buttons for each category on every page. A disorganized site leads to frustration and could cause a customer to move on to your competitor’s sites.

A customer centric website facilitates the process of problem or complaints resolution, which enhances the reputation of the company. Installing features such as a comprehensive “Frequently asked Questions” page allows the customers to find answers to many common questions in one location. A feedback form or dedicated customer service email address gives customers the opportunity to voice their concerns in a way to provide a quick response. Live chats allow customers in mind serves as a type of silent salesperson for the products or services. By clearly stating the features and benefits of as a type of silent sales person for the products or services. By clearly stating the features and benefits of what their selling, customers gain an understanding of the value of doing business. Clear and concise product descriptions/ photos, videos and virtual tours demonstrating the products in a action give customers the chance to get to know the product without having to see it in person.

Some people may be reluctant to purchase products over the internet, especially if they are not familiar with the company. A customer centric site allows to overcome customer apprehension by providing detailed information about the company. Home page and “About Us” page give athe chance to outline the background and company’s history and provide photos and biographies of key players in organization. Customers can discover that a legitimate company staffed by real people, which helps alleviate any concerns.

Question 5:

Promoting products on the Web is different from using mass media promotion or personal contact. Assume that you want to explain these differences to a person who is planning to open a Web site that will sell fishing-rod. Write one paragraph about each approach (mass media, personal contact, the web). In each paragraph, explain the advantages and disadvantages of the approach for the fishing rod Web business.

Mass Media refers to all forms of media that are open to and accessible by the public. This includes newspapers, television, internet, magazines, radio etc. The advantage are can reach many people quickly and tell people about new ideas and services. Meanwhile the disadvantage are difficult to make specific to local community, fixed massage and can be easily misunderstood.

Personal contact means term used to describe reaching out to or being in touch with another person, business or entity. For example, a salesperson may contact another person or business for a potential sale. The advantage are let people know that they are interested about the product, to give chance to hear what is important in selling it and see if it is accomplished, and also can discuss face to face. The disadvantage are time management if not organized very well etc

Web also known as online marketing, Internet advertising, e Marketing (or e-Marketing), is the marketing of products or services over the Internet. The advantage are The Internet has become the information superhighway for the buying public. Most persons prefer the hassle free transactions that Internet shopping can offer. As a result, the Internet has become the most powerful selling tool. Internet Promotion offers cost effective ways for small businesses to enhance their product or service distribution networks. The disadvantage are difficulty in attracting customers, difficulty in evaluating legitimacy of transaction, and also salespersons and customers are isolated.

 

As conclusion it's up to the seller to choose which is the best kind of method to sell the product. The seller could try all the method to see which one produce more profit. A good business is managed and well organized by a honest and motivated person to be success.

chapter 3

IDCS: eBusiness (Part Time)

WEDNESDAY, MAY 2, 2012

Tutorial 2: HOME OFFICE FURNITURE ONLINE

INTRODUCTION

Today I doing research about classic, contemporary and modern furniture that is “Max furniture”. In business since 1999, Max Furniture is based in Dallas, Texas and is one of the original internet-based furniture retailers. Over the years, Max Furniture has become an award-winning, reputable and robust industry leader.

WEBSITE THAT SELL HOME OFFICE FURNITURE ONLINE

1. URL: http://www.Max Furniture .com/aspx

I saw an opportunity to sell furniture in a smarter way. I felt that by creating a direct-to-consumer ‘store’ on the internet, I could offer consumers an outstanding selection impossible to duplicate in a local brick-and-mortar store. Along the way, I learned how to manage some of the difficult hurdles inherent in this type of business. Will the customer feel secure making a large purchase on the internet? How will the customer know they will like the furniture without being able to touch and feel it? How will Max furniture transport a large, fragile piece of furniture across the country?

 The goal of this website is to sell a variety of home furniture Bathroom Vanities, Bathroom Furniture, Dinning Furniture and Sofa. The products that they are selling are organized into categories such as for a new house. This strategy shows that the business is aiming for customers who are looking for a specific good quality furniture product. This information can be used as reference marketing strategy and via e mail.

The website also provides discounts for email coupon, free shipping, tax free shipping and additional features of their product such as promotions, color/finish and material. This strategy shows that the business is aiming to attract customer in purchasing their product have a good brand.

CONCLUSION

How do you feel about shopping online? I go to great lengths to help put your mind at ease. Your furniture is protected by a one-year product warranty as well as a 14-day no-hassle return guarantee. In the internet furniture business, the cost of failure is too high. I cannot afford to ship a large piece of furniture across the country only to fail – poor quality, shipping damage, etc. Therefore, your satisfaction must be my number one goal. I simply can’t consider any sale a good one unless I have your complete satisfaction. And if something goes wrong – I’ll work tirelessly to make it right.
 

REFERENCES
http://www.Max Furniture .com/aspx (accessed on 5/5/2012)