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
as an enterpreneur ,if given 50000 what business would you do?

QUESTION ‘The internalization theory posits that firms would have a strong incentive to avoid joint venture agreements since they are viewed as second best alternatives in allo

discuss the three approaches to the short-term financing problem and provide relevant example of each

Part One Choose a business that you approach or one that you already have access to . The report will be divided into 4 sections: A discussion of change management th

QUESTION (a) What is management? Use your own words to define the concept Discuss the various functions which constitute the process of management (b) Describe the skills

QUESTION 1 (a) Describe when a meeting could be called in a business context? (b) Describe the advantages as well as disadvantages of meetings QUESTION 2 Write shor

Problem: (a) Differentiate between a work group and a work team. (b) Explain clearly the different types of team in organisation. (c) Referring to your organization o

QUESTION 1 a) What is communication? b) Discuss four common types of communication barriers c) Explain five strategies for overcoming communication barriers and briefly e

a. Discuss any two ongoing management costs considered in financial analysis in BPO b. Explain any two pricing models to structure price of an outsourcing contract.

explain the various approaches that are followed by FMCG companies in test marketing