Project Proposal Implementation of e-commerce strategy
The BBQfun Board of directors and CEO would like to implement an e-commerce strategy to maintain or increase market share and revenue and satisfy customer needs in line with company strategic direction. I have developed a new operational plan to guarantee the success of this strategy. The organisation faces a serious risk of loss in sales revenue loss if there is no online store. Unsatisfied customers will flock to our online competitors if we can’t offer the same if not better services. The choice is stark: accept the costs and moderate profitability, or prepare to go out of business, if not this year than in three years time.
The implementation of resourcing has been carefully evaluated and discussed with appropriate personal to gather all requirements, strategies and steps to be taken to successfully implement the e-commerce strategy. The resourcing will be required through recruitment of customer sales/service staff, warehouse staff, delivery drivers and the website developer. Purchasing of delivery vans, forklifts, office computers and desks, the office will need to be reconfigured to make room for the online space and extra storage in the warehouse. A detailed list of psychical and human resource requirements can be found in the operational plan outlining costs, implementation and how resources will be acquired.
With increasing demand for online purchasing more and more businesses are moving to e-store. Today e-commerce has revolutionized the way companies are doing business and we need to make sure we are able to compete and beat our competitors that offer their products online. There are many benefits that come from e-commerce for both retailers and customers such as; Convenience, faster buying/selling procedure, low operational costs and better quality service, easy to start and manage, attract new customers, decrease cost of inventory management, boost brand awareness with reviews from happy customers and decrease costs in advertising and marketing.
Objectives
- Expanding services to include online sales (e-commerce)
- Provide expert and knowledgeable staff service
- Increase delivery capacity required to meet plan objectives by October 1st
Risks
A clear and detailed risk matrix/contingency plan can be found on pages six to eight in the appendix documents provided. Careful steps have been taken to identify and evaluate the current controls, likelihood, consequences, risk level, risk priority and risk mitigation plan.
Timeframe
|
Description of Work |
Start and End Dates | |
|
Objective One |
Successful implementation of the online store. |
30/06/2013 to 8/08/2013 |
|
Objective Two |
All retail staff successfully trained in online sales and customer service, and product and service knowledge. |
30/06/2013 to 20/08/2013 |
|
Objective Three |
Delivery services successfully operational. |
30/06/2013 to 3/09/2013 |
Break down of costs
|
Break down of physical and human resource requirements | |
|
Resources |
Costs |
|
Plant and equipment |
● Delivery trucks $50,000 x 6 = $300,000 ● Forklifts $10,000 x 3 = $30,000 |
|
Promotional costs |
$300,000 |
|
Website developers |
$100,000 |
|
Staff training |
Online customer service training $3,000 per staff member = $24,000 |
|
Recruitment costs |
$30,000 |
|
Management change leadership training for store managers and team leaders |
$3,000 each = 1 Brisbane store manager, 4 Brisbane team leaders, 1 Gold Coast store manager and 3 Gold Coast team leaders x $3,000 = $27,000 |
|
Warehouse and office reconfiguration |
$50,000 |
|
Four online staff |
4 x $40,000 ($160,000) per year for 3 years = $480,000 |
|
Four warehouse staff |
4 x $40,000 ($160,000) per year for 3 years = $480,000 |
|
Six delivery drivers |
6 x $40,000 = $240,000 per year for 3 years = $720,000 |
|
Additional training |
$51,000 |
|
Additional Marketing |
$300,000 |
|
Additional Recruitment |
$30,000 |
|
TOTAL : |
$2,481,000 |
The information used to develop this proposal has been sourced from internet research on the benefits of implementing e-commerce, research on technical aspects, views of e-commerce importance to retailers. Also consultation with technology and marketing manager to discuss both psychical and human resource requirements and the business plan information provided on the previous operational plan that I have redeveloped.
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