Principles of E Business (IT)
Launching a fully functional e-commerce site is a sizable
financial investment in technology, marketing, advertising, inventory, merchant
account fees, site-hosting fees, office supplies, labor, etc. Few businesses
become profitable immediately, and many failures are due to lack of
investment. Startup costs must cover equipment and whatever
is required to take an e-commerce site live as well as ongoing expense until
the business can meet them. Many businesses budget in the expectation that
meeting expenses may take three to six months. Disaster planning and
related expenses should also be part of these budgeted
funds.
Discuss the role of eCommerce in practical business
applications
Identify techniques and tools that can be used to evaluate
the driving forces of eCommerce
Assess eCommerce influence on businesses and how it provides
a competitive advantage
Join me in the Discussion Board this week as we investigate
financing opportunities.
Assignment
Assume you are going to start a simple e-business from
scratch, using no existing equipment or materials. Briefly describe the
business, and then do a rough calculation of startup costs, following the list
provided. Research costs that are
realistic for the area in which you live. Be generous in
your estimates and avoid cutting corners on any expenses.
Include a table embedded in your text (Use Word>Insert>Table) which
summarizes your estimates, including a total.
Accounting, consulting, and legal
Advertising, marketing, and public relations
Business plan
Business travel
Communications (including telephone and cellular service)
Computer equipment and software
Feasibility study
Insurance
Interest on loans
Internet service provider (ISP) and web site hosting fees
Inventory
Labor (employees and contractors)
Market study
Merchant account fees
Office furniture, equipment (such as copy and fax machines)
and supplies
Order processing/shipping
Phone line (toll-free number, where applicable)
Printing and design for marketing materials, business cards,
stationary
Rent and utilities (such as elec, heat, water, and sewer)
Taxes
Web site design and maintenance
Publicly held e-commerce companies (Yahoo.com, for example)
must publish financial statements with their annual reports, which are
available online. Access a recent annual report for one of these companies and
review the balance sheet. List the following: current assets, total assets,
current liability, total liability, and owner’s equity.
Prove that the balance sheet balances by applying the appropriate equation
(found in our text). Do not reproduce the company’s entire financial statements
in your paper, just the items identified above as needed to balance the
equation.
Response should be no less than two pages, supported with
credible references and submitted in an APA format
0 comments:
Post a Comment