E-commerce cost benefit analysis, Business Management

Sun Gas wants to move its sales order system to the Web. Under the proposed system, gas stations and other merchants will use a Web browser and, after typing in a password for the Sun Gas Web page, will be able to check the availability and current price of various products and place an order. Currently, customer service representatives take dealers' orders over the phone; they record the information on a paper form, and then manually enter it into the firm's computer system. CFO Carrie Smith believes that dealers will not adopt the new Web system unless Sun Gas provides financial assistance to help them purchase or upgrade their PCs. Smith estimates this one-time cost at $750,000. Sun Gas will also have to invest $150,000 in upgrading its own computer hardware. The cost of the software and the consulting fee for installing the system will be $230,000. The Web system will enable Sun Gas to eliminate 25 clerical positions. Smith estimates that the new system's lower labour costs will have saved the company $1,357,000. Requirement

1. Use a cost-benefit analysis to recommend to Smith whether Sun Gas should proceed with the Web-based ordering system, Give your reasons, showing supporting calculations.

Posted Date: 3/2/2013 7:47:24 AM | Location : United States







Related Discussions:- E-commerce cost benefit analysis, Assignment Help, Ask Question on E-commerce cost benefit analysis, Get Answer, Expert's Help, E-commerce cost benefit analysis Discussions

Write discussion on E-commerce cost benefit analysis
Your posts are moderated
Related Questions
VK Ltd a multi-product Company, furnishes you the following data relating to the year 2000. First Half of the year Second Half of the year Sales Rs. 4

Question 1: (A) What do you understand by Collective Bargaining? (B) What is collective bargaining from: (I) The economic point of view

QUESTION 1 (a) Explain the following terms as used in E-business: (i) Vortal (ii) Countermediation (iii) e-Auction (iv) Cookie (v) B2B e-business model (b) Wi

Question 1: (a) Organisational Behaviour (OB) seeks to understand how we can best understand human behaviour in organisations. Discuss in relation to the challenges and for

Corporate Adver tising: A sub functions of company communication that different from product publicity or marketing communication. Instead of trying to sell an organiz

A) The future usefulness of any Performance Management initiative in an organization is underpinned by the determination of Key Performance Indicators (KPI). Provide a brief outlin

QUESTION 1 The process of delivering a presentation is a systematic one that involves thorough planning along with preparation and one of the main phases is developing the pre

Question 1: You are the chief actuary to a general insurance company. The company's main lines of business are employers' liability, marine, aviation and private motor insuran

1. Business Continuity is based on disaster recovery. Discuss this statement highlighting the technology and processes involved. 2. A large online bank is considering implementi

OCR’s examination paper blunder Explanation and Identification of any two barriers to effective communication: e.g. jargon, technical faults, misunderstandings or poor communi