Second Blog Entry in WordPress.com
ABC Bakeries
Name of Client: ABC Bakeries
To: Mr Seamus O’Kane
RE: Economic Feasibility of ABC Bakeries.
From: Christopher McBride
Date: 16/10/09
I have reviewed the scenario and background of ABC Bakeries based in Carrickfergus and it is very obvious that the problems in each of the departments will contribute to the business to lose money, lose business, possibly lose staff and may even find it difficult to break into new markets therefore I will carry out a Economic Feasibility study on the proposed new system of Ecommerce. I have made up a number of questions to help me in this task. The following questions are;
I. What is the current size of the bakery distribution company’s Market share and how far would the company like its market share to expand to?
II. How efficient/reliable is the bakeries service that the company provides and how can it be improved?
III. Can the business maintain a confident and satisfactory distribution service with its current factor floor/warehouse and staff to distribute larger sales? If not then how much would it cost to expand for both staff and warehouses?
IV. Is there any procedure already in place to track the bakeries products and their different stages of delivery? How much would this procedure cost to implement and would it be effective to the company?
V. Is there a need for more supervisors to deal with the employees and to make sure that all company procedures are followed? What are the current disciplinary procedures in place and how effective are they?
VI. Is there a need for extra vans or suitable vehicles due to breakdowns and how much would this cost?
VII. Is there a real demand to expand the warehouse or is there a possibility of opening up a new warehouse to expand productivity? Can the current size of the workforce cope with this demand at festive periods during the year or will more staff need to be recruited?
With the management of ABC reluctant to opening more shops and employing more shop staff due to the occurrence of more problems then I believe that the option of developing an internet based business selling the speciality products online to consumers is the way forward for many reasons. There are many potential benefits selling their products online but just not for the bakery but also their customers.
Selling online will allow ABC customers to take advantage of the following;
-More convenient shopping.
With the help of e-commerce, retail companies have the option of offering the customer the convenience of shopping right in the comfort of their own home or office.
– Lesser errors in the order-taking process.
There is less human intervention. For example, if you will go to the -Shopping Cart- portion of a retail shopping site and you decide that there are items that you do not actually want to buy, you can easily go back and delete or uncheck the products that you do not need. As a buyer, you will process the order yourself and the rest of the transaction is automated so there is lesser room for errors.
– Bigger discounts.
Allow the order-taking process to be fully automated. As a result, the company where you are buying the products from can afford to offer bigger discounts because less manpower is needed.
The advantages For ABC Bakeries selling online;
First, once the system has been set up, there is no need to hire individuals who will manually process the orders so lesser operational costs are required. The same thing applies to:
– Document preparation
– Error detection for the order-taking process
– Error correction for the order-taking process
– Data entry
– Expenses for supervision
– Marketing tasks
– Sending product information to customers through mailers.
-Delivery can be very rapid, companies can keep huge stock in places where land is cheap because they do not need an expensive high street shops.
Training Needs
If the workspace is to be kept up to date with the new technology and developments in the industry, they will require training. Training is essential to ensure employees learn new skills, improve those they already have and to achieve the full potential of the new system and software. This can have a number of benefits for both the employee and the business:
- Trained workers are able to produce more which makes them more profitable to employ.
- They can improve efficiency in a number of ways. They become more confident dealing with customers as they know that there are doing.
- Workers trained to do several tasks are described as ‘multi-skilled’. This makes them more flexible as they can do a number of jobs within a business.
Despite the above advantages training brings, it is expensive therefore training must be effective. By the end of any training session workers should be better educated and more skilled and enable them to work quicker with fewer errors, therefore making them more productive.
All employees must be trained in the correct use of all aspects of their work station equipment and know how to avoid possible health problems, e.g. through the user of non-reflective VDU screens or adjustable chairs.
People will need to be trained
- The Personnel officer
- The Three members of the personnel clerical team
- The accountant and his future team
- The sales manager
- The sales clerical team of four
- Anyone who uses the design department
There are two main types of training
- Induction
- Teaching Job Specific Skills – On the job training/Off the job training
Induction
The aim of this type of training is to introduce new employees to their workplace. It is often about the way in which the business works rather than about the job the new employee may have been hired to do. It is not about giving them the skills to do a particular job. It is likely to provide information about a number of topics.
- The history and management structure of the firm
- The layout of the workspace
- Workspace systems e.g. who is responsible for what etc
- Health and safely policies and procedures etc
A good induction scheme is important, as employees will learn what is expected of them. They will hopefully make fewer mistakes and in term increase the efficiently of the business. Employees will also hopefully be more confident.
On the job Training
This type of training involves workers being trained as they continue to so their jobs. There are several ways in which this form if training takes place.
‘At their Elbow’
This is the most common form of on-the-job training, and is where new employee works with or next to an experienced worker and learns the job ‘at their elbow’. While this method of training is relatively inexpensive and less likely to disrupt the productive flow of work, new employees can often-learn bad habits or develop poor work practices from the established employee.
‘Mentoring’
Many office and professional workers use a scheme of mentoring. This system enable a new employee to work on their own initiative whilst being paired with a more experienced member of staff who is able to off them advice and help.
Off the Job Training
This training occurs where employees receive their training away from their workstations or place of work. As with on – the – job training, it can take several forms, raging from companies’ organisation their own training to courses being run by local colleges or nation training organisations.
Task 2
The management team required to analyse, design and implement the new ecommerce site for ABC bakeries are as follows;
Project manager – I believe that there should be two project managers as this is a very important role to be carried out by just one person. The main role of the project managers will be to ensure everything is running with minimum errors or problems to do with both the new system and staff. The project managers will also take on the role of ensuring all targets are met at all stages of the project and making sure the new system will be delivered on time.
Systems Analysts – The system analysis will be responsible to carry out the task of analysing the current system and the feasibility study of the new system. Making sure that the new computer based system would be beneficial to the bakery.
Web Designer – The role of the web designer is to design and implement the system to make sure it’s in working and will carry out the tasks requested by the system analysis.