Analyzing E-commerce Trends and Impacts

This assignment delves into the realm of e-commerce by examining current trends and their impact across Europe. It explores factors influencing user trust in online platforms, the role of institutional mechanisms in fostering satisfaction and repurchase intentions, and the application of multi-criteria decision-making in risk prioritization within renewable energy development. Additionally, it examines market segmentation strategies employed in e-commerce and delves into the dynamics of labor market segmentation in various industries.

BUSINESS SKILLS FOR E-COMMERCE
STUDENT NAME
STUDENT ID
PROFESOR NAME
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
LO1..................................................................................................................................................3
1.1 Assessing the core business functions of your selected organisation........................................3
1.2 Evaluating your chosen organisation’s business aims and show how they relate to their
stakeholders.....................................................................................................................................5
Task 2...............................................................................................................................................7
LO2..................................................................................................................................................7
2.1 Impact of e-commerce...............................................................................................................7
2.2 Discussions about the global impact of e-Commerce................................................................8
Task 3.............................................................................................................................................10
LO3................................................................................................................................................10
3.1 Appropriate research methodologies.......................................................................................10
3.2 Evaluating the current e-Commerce systems of Franklins......................................................11
3.3 Discussion of the financial implications of e-Commerce........................................................12
3.4 Design an ecommerce solution for enhancing the business functions for Coles Supermarket
.......................................................................................................................................................13
3.5 Evaluation of the suitability of e-Commerce solution.............................................................13
Recommendation...........................................................................................................................14
Conclusion.....................................................................................................................................14
Reference list.................................................................................................................................15
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Introduction
This assignment focuses on the business skills and on the e-commerce. In this assignment, the
structure and aims of the business organisations have been discussed. This assignment also aims
to incorporate the impact of e-commerce on the business activities. Apart from this, a depth
analysis of the market research, target market has also been given in this assignment in order to
provide a way to the business organisations to satisfy the needs of the consumers. In order to
furnish the aims of this assignment, the retail sector has been selected for focusing on the
benefits of e-commerce strategy. In this assignment, Coles Supermarket and Franklin have been
chosen in order to present how they use the e-commerce strategy in order to enhance their
business market globally. Apart from this, a possible recommendation also has been given to
these organisations in order to have a competitive advantage in the market.
TASK 1
LO1
1.1 Assessing the core business functions of your selected organisation
Coles Supermarket is one of the famous retail markets of Australia. The type of this company is
subsidiary and it has been seen that this retail organisation is a subsidiary of Wesfarmers. The
type of the Wesfarmers is public and it has been observed that the Coles Supermarket established
in the year of 1914 by George Coles (Finn and Bruix, 2014, p.12). This retail company is mainly
famous for their good quality retail services and it has been observed that this company offers
various kinds of facilities including the online service facilities to the consumers. Viewing the
service procedures, background of this company it has been observed that this retail organisation
uses various types of marketing strategies and uses e-commerce strategy in order to extend their
market globally.
The business organisations have done the PEST analysis that they can understand the impact of
various environmental factors on the business activity. Similarly, Coles Supermarket also needs
to do the PEST analysis in order to identify the various macro environmental factors such as
political factor, economic factor, social factor and the technological factor.
Political factor
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Political factor is one of the most important factor in the macro environmental factors (Kolios et
al. 2016, p.59). Political factor includes the government legislation, rules, regulations and it has
been observed that the political factors have a great impact on the business activities of the
organisations. The major changes in the political factor mean the changes in political power,
rules and regulations. The business organisations have to change their business plan, strategy
based on the new changes in political fields. Likewise, the vast changes in the politics may also
effect on the business activities of Coles Supermarket. Therefore, the respected organisations
also need to change their business plan, business activities based on the changes in the political
field in order to avoid the political barriers.
Economic factor
Economic factor includes the market share, pricing strategy, revenue cost, financial budget,
exchange rate, interest rate and investment procedures (Pestle et al. 2014, p.44). The major
changes in economy may lead the organisations towards huge business loss. Similarly, the
sudden changes in economy may effect on the financial budget, profit percentage of the
respective organisations. The management of this organisations need to changes their investment
plan, financial plan, capital; budget and pricing strategy based on the changes in economy.
Social factor
Social factors also have a great impact on the business activities of the organisations and social
factors include social norms, social ethics and therefore, like the other organisations, social
factors effect on the business performance of Coles Supermarket. The respected business also
needs to follow the new changes in social norms and ethics in order to satisfy their customers.
Technological factor
Technological factor is also an important factor to the business organisations as in the 21st
century; business success also depends on the technological advancement of the organisations
(Zalengera et al. 2014, p.335). Similarly, the respected retail organisations need to install the
latest, modern technology in order to maintain their brand loyalty in the market. If the company
fails to offer the customers, latest technology services them it would lead them towards business
loss and increase the dissatisfaction level of the customers.
On the other hand, it has been seen that the respected business need to use various marketing
strategy like e-commerce strategy, marketing mix strategy and so on in order to develop their
service level and in order to have better opportunity for business. The management of these
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organisations also need to develop their various functional areas of business like sales, MIS,
accounting procedures, administration and operations system. The management of this company
needs to set their pricing, investment amount and financial planning based on the current
economic trend and on the needs of the customers. Apart from this, they also need to develop
their Management information system, administration that they can keep the all the business data
safely and can control their business operations properly.
1.2 Evaluating your chosen organisation’s business aims and show how they
relate to their stakeholders
The main aim of the Coles Supermarket is to make more profit from their business. The other
aim of these organisations is to enhance their market share and the management of this
organisation look at the fact that they can have the huge amount in return on their capital
employed. Apart from this, the selected organisation also aims to develop their business growth
in such a level that they can enhance their business globally. On the other hand, the other aim of
this organisation is to provide the best quality services to the consumers. On the other hand, like
the other organisations, the respected organisation also has their organisational objectives, goals.
The main objectives of this organisation are:
● To increase the amount of revenue
● To establish their company as the best retail organisations in the global business market
● To provide their employees safe and peaceful environment to work
The stakeholders of Cole include:
External stakeholders
Government- According to Fernandez-Feijoo et al. (2014, p.53), various policies of government
regarding the e-commerce business also helps the respected retail organisation to meet their aim
and to provide their customers the better services. If the government do not have any policies for
business or the investment from the government decline then it would become problematic for
the organisations to meet their aims and objectives. The change in the policies of the government
and the and there changes in the taxes rate by their government have impact over the change in
the operation of the organisation.
Suppliers- Suppliers also helps the selected organisation to meet their objectives (Bridoux and
Stoelhorst, 2014, p.107). Suppliers bring the latest information about the current market trend,
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market budget and needs of the consumers for Coles Supermarket. They also bring the necessary,
good quality raw material for the respected organisation. Therefore, if the suppliers do not
involve themselves in the organisational activities then the Coles Supermarket would not achieve
their organisational objectives.
Consumers- The demand of the consumers for their product also helps them to meet their
objectives, If there is no demand from the customers for their product then they cannot meet their
aims, objectives as the aims, objectives of the organisation is related to the customer's need as to
satisfy the consumers is their prime concern.
Media: The media can be effective stakeholders of the organization as the support of the media
is in terms of the betterment of the organisation. The
Media on the other hand is benefited with the importance of the business operation of the
organization. Then news group is supported by the organization by providing them group with
information which they would help in the better understanding of the situation and the smooth
operation of the organization.
Internal stakeholders
Employees- The involvement performance level of the employees also helps the organisations to
meet their objectives. If the employees do not perform their duty properly, fails to provide good
quality services then the respected organisation would fail to meet their objectives.
HR department- Human Resource Department also help the organisations to meet the
objectives and it has been seen if they fail to maintain the recruitment procedures, control over
the activities of employees then they fail to achieve the business objectives of the organisations.
Finance department- According to (Elliott et al. 2014, p.518), if the finance department fails to
maintain their investment procedures, pricing strategy then the organisation may fail to meet the
objectives.
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Task 2
LO2
2.1 Impact of e-commerce
In the organisations, the impact of e-commerce is extremely high. At present, time the all the
business organisations are using e-commerce system to make the business more profitable and
more effective. In the case of Coles Supermarkets, e-commerce system helps a lot to grow the
business. Coles Supermarket is one of the leading supermarkets in Australia and using e-
commerce is providing the best facilities to the customers. In e-commerce, the retail sectors
provide all the schemes of the different product and the discount for the customers be also
mentioned on the websites of the business organisations. It helps to make the sell more effective.
In the case of choosing any effective product, the customers can directly search the product from
the websites of the Coles Supermarket. The management of Coles Supermarket always try to put
the best price for the customers so that the customers can easily rely on the product of the
organisation and selling must be profitable for the organisation. Apart from this, the customers
are happy to buying products through e-commerce. It helps them to choose their product from
the websites of the organisation. The customers would not go the shop physically and the home
delivery system has made the customers happier (Wilkinson, 2013, p.547). Customers always
want the effective product at low price, they can easily check the price of the product in different
organisations websites, and then they can choose their product it can help to buy the best
product. So it can be said that through the e-commerce the customers can make direct
communication with the organisation and it has a positive impact on both the customers and the
organisation as well. Through the e-commerce, the retail sector can make their advertisement and
it can help to attract the customers. By making the advertisement properly, the organisations can
attract new customers. The organisations can choose different marketing models to make the sell
lucrative for the customers (Dolnicar et al. 2014, p.296). All these factors have a direct impact on
the customer and the organisations as well.
The risk of e-commerce is such as information risk, technology risk and business risk as well.
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Information Risk- The information that is provided on the web page may not reliable for the
customers. Unauthorised access can be harmful to the business organisations. The credit card
information of the customers can be in danger (Weinstein and Cahill, 2014, p.26).
The situation of the unauthorised access to the operation of the organisation in the organization
marks the rise in the changes in the situation which refers to the operation of the organisation
and the management of the organisation may go down dur\e toi the fall in the secrecy of the
organisational aspect.
Technology Risk- in the matter of unsafe or insecure website can be hacked and it can make a
negative impact on both the organisation and on the customers as well. The virus can be affected
the websites and the system may not work properly at the time of selling the product. Lacking
proper hardware system can affect the organisations (Müller and Hamm, 2014, p.70).
Business Risk- In the case of payments there are lots of risk for the customers. Due to the lack of
communication, the product supply can be affected. Improper return policies of the organisation
can make a negative impact on the customers (Einav et al. 2014, p.489).
2.2 Discussions about the global impact of e-Commerce
According to Huang and Benyoucef (2013, p.246), in the case of global business and the impact
of e-commerce is extremely high and it has many positive impacts such as e-commerce helps to
sell the product of the organisations to the customers who are from different country. As a result,
the business is expanding day by day with the help of e-commerce. The customers market is
improving for the e-commerce and the customers are happy to make shop by online. The
customers just want to make safe shopping and all the legislations and the return policies are
good enough for the customers to buy the products from online (Wang et al. 2013, p.625).
Apart from this, the new technologies in the market help to make the e-commerce more effective
and efficient for the customers and the organisations as well. On the other hand, new
technologies can make a negative impact on the customers of Coles Supermarket. Not all the
customers are efficient enough to handle the new technology (Fang et al. 2014, p.407). The
security issue can be a major issue for Coles Supermarket. Coles Supermarket needs to make the
security system more effective and solid so that they can stop any unknown authorization. To
deal with the customer's online have both the positive and negative impact such as for those
customers who are unable to use technology properly it becomes difficult to make
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communication with those customers and those customers who are efficient enough to use the
technology for them easy to make communication. Through e-commerce, the competition is high
for the Coles Supermarket. There are many organisations having the same kind of facilities for
the customers and it can make a negative impact on the selling of the organisation (Chiu et al.
2014, p.85).
E-commerce can make all the organisation equal power so it is an important factor to handle the
challenge for Coles Supermarket. Old employees of the organisation cannot handle the new
technology so the organisation can face difficulties to retain the employees. As per the Data
Protection Act of 1998, the organisation must keep all the personal data of the customers in safe
and the personal data of the customers must not be disclosed (Rainer et al. 2014, p.32).
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Task 3
LO3
3.1 Appropriate research methodologies
In this assignment, secondary research methods have been taken
Market segmentation
The process of Market segmentation-
Segmentation
According to Falk and Hagsten (2015, p.357), in the step needs to identify the market for the
organisation and the system of e-commerce. Then need to identify the base that is mainly used
for the segmentation. Finally, it is necessary to develop the profiles.
Targeting
In this stage, Coles Supermarket needs to evaluate all the attractiveness of segment and then need
to target the segment.
Positioning
To identify the position of the every segment is the main task in this step. Finally, by developing
the marketing program for all the segments can be effective for Coles Supermarket.
According to Awa et al. (2015, p.76), market segmentation is the process of division of a broad
customers or market. It depends on the common interest and the needs of the customers and the
lifestyle as well. In the case of B2B, the market segmentation is different and in the case of B2C
market segmentation depends on the lifestyle, behavioural segmentations. In the case of Coles
Supermarket, the market segmentation can be applicable and the reason is that the organisation
mainly uses e-commerce system to sell the product so it can be helpful to make the organisation
more profitable. The product, price, promotion and the environment of the market are the most
important factor for the organisation. Market Segmentation can help to identify all the crucial
factor that can make the profit of the organisation (Bones and Hammersley, 2015, p.54). In the
case of e-commerce system of Coles Supermarket, can include market segmentation to make the
organisation more efficient. The market segmentation is can be affected by the competitive
activity, characteristics of the market, product and the resources of the product as well (Cavusgil
et al. 2014, p.547).
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Market structure
There are different types of marketing structure and they are such as
Monopolistic competition- This is the imperfect competition. Here the substitutes are not same
for Coles Supermarket. Here all the products are completely different from one another. In this
process if different organization would sell the similar product and try to show that the product is
different. In this case, the organisation mainly ignores the effect of the prices of their own
product.
Oligopoly- According to Barnes and Hunt, (2013, p.258), in this factor small organization
dominates the entire market. In the case of two firms, Duopoly can be applicable. In the case of a
single buyers Monophony can be included. In the case of many sellers and buyers are few then
Oligopoly can be included. Coles Supermarket needs to identify the market and based on the
demand of the market they need to use the e-commerce system.
Monopoly- In the case of one provider of any particular product
Perfect competition- At the time of when the product and the customer are in equal number the
organisation can make the best sell and get the maximum benefits from the market (Grewal,
2014, p.304).
3.2 Evaluating the current e-Commerce systems of Franklins
Coles SupermarketFranklins
● Return policies are not good enough.
● Unable to solve the issues of
customers
● Lack of communication
● Poor advertisement process
● Good delivery system
● Return policies are good enough for
the customers
● Always have the better policies to
solve the issues of customers
● Good communication system
● Good advertising system
● Delivery is is not effective
Franklins is another leading retail sector in Australia and the main purpose of this organisation is
to sell the grocery products to the customers. They have good e-commerce system for their
business and they run is properly. However, the return policies of Franklins are less effective
than Coles Supermarket. The customers have made many complaints regarding the return
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policies of Franklins. Apart from this, the cost of the product of Franklins is more than the
product of Coles Supermarket. In the matter of cost, Coles Supermarket is always leading the
country and they have the best prices for the customers. This is the main reason that Coles
Supermarket is always stand supreme in Australia. The communication system with the
customers in Franklins is not good enough and the customer is not always satisfied after making
communication with the employees of Franklins. There are several issues are still unsolved and
pending and it has negative impact on the customers and on the organisation as well. On the
other hand, Coles Supermarket always tries to resolve the different issues of the customers as
early as possible. So the matter of customer's satisfaction is far better than Franklins.
Apart from this, the delivery system of Franklins is better than Coles Supermarket. They have
the best facilities for the customers. However, the delivery system of Coles Supermarket is less
effective for the customers. The advertisement process of Franklins is not good enough to attract
the new customers. This is the reason Franklins is facing difficulties to sell their product. It is
observed that the advertisement process of Coles Supermarket is extremely good, it attracts many
new customers, and as a result the organisation have sold the product more than other
competitors have. It can help to meet the goal and objectives of the organisation. The
effectiveness of e-commerce process of Coles Supermarkets is the main reason of standing high
in the market of Australia.
The market share of Franklins is below than Coles Supermarket. The market segmentation
process of Coles Supermarket is less effective than that of Franklin.
3.3 Discussion of the financial implications of e-Commerce
To make the e-commerce system more effective need to use proper technology such as effective
software and hardware system to make e-commerce more efficient for Coles Supermarket. It is
very important for the organisation to make back up plan for storing the data of the customers.
The organisation can use advanced software to make the e-commerce easy accessible for the
customers. To use the proper hardware system can make the e-commerce system more effective
and efficient to make the organisation more productive. Apart from these Coles Supermarket
need to secure their websites. The organisation must keep in mind about unauthorised access to
the websites. Hacking the websites of the organisation can make negative impact and it can harm
the reputation of the organisation. To maintain the e-commerce properly the organisation must
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keep some efficient employees who can be able to take care the entire process of the e-commerce
system.
To use effectively the e-commerce system of Coles Supermarket need to have proper funding
resources. Therefore, the organisation can arrange all the requirements for e-commerce. The
management of Coles Supermarket must make a proper financial plan to invest their money in
right place. Capital funding can help to afford all the e-commerce requirements
3.4 Design an ecommerce solution for enhancing the business functions for
Coles Supermarket
To enhance the function of Coles Supermarket the design for e-commerce solution must be
effective. To make the storyboard for each of the pages need to make a template through power
point. The templates must have some clear objectives and goal in mind to make the templates. It
is very important to know the target audience. To make the process proper they need to add the
learning process, which is one of the most important steps. Then it is very important to write
content in short sentence. Then need to make proper design and multimedia elements such as
animations, graphics are to be included. Then need to add the entire script.
To build a sitemap, it is necessary to make XML sitemap, it must submit to Google. It can help
to make crawl of Coles Supermarket website better. Then need to make text sitemap to include
all the planning pages. Finally need to generate the HTML sitemap, which can help to access the
websites of Coles Supermarket.
The customers must register in the website of Coles Supermarket to make online shopping. Then
the customers must choose the payment option either by debit or via credit card. After making
the entire process complete the customers, need to pay the price of the product.
3.5 Evaluation of the suitability of e-Commerce solution
All three design sitemap, storyboards and online payment systems for making the e-commerce
more effective for Coles Supermarket. A sitemap can help to find out the all the pages by one
click. It can help to make customers find out all the option in the websites of Coles Supermarket.
A sitemap is an important factor for the customers of the business organisations (Da Costa, 2016,
p.524). Apart from these storyboards is another crucial factor to make the business plan. In this
step, the multimedia can be used and it can help to present the important information about the
organisation detail. For meetings and any kind of seminar, this process is extremely helpful. It
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can reflect the detail information about the organisation and about the production detail. On the
other hand, the online transaction process is the most vital process to make the business more
efficient and effective. In the case of online shopping, the customers have to buy the product by
online payment option. So developing the design of online transaction can help to make the
organisation more efficient. The customers would lie to choose the easiest option to make their
payment. To make the design for the online transaction the management of Coles Supermarket
must keep in mind that the design would be well secured so that the personal data of the
customers must not be disclosed. However, the design process is effective enough to make the
business organisation more effective.
Recommendation
Coles Supermarket needs to make their delivery system more effective to attract the new
customers. The policies of the delivery process can rectify after taking some advice from the
customers and the opinion of the management of Coles Supermarket is important. Apart from
this in the case of target audience, the organisation must provide some extra facilities so that the
organisation would be more productive. To protect the website from virus and hacking, Coles
Supermarket should use antivirus and Secure Socket Layer. A Strong password can be used to
access the websites of Coles Supermarket. On the other hand, to make the payments system
through online mode the management need to make online payments with string security so that
the personal information should not be disclosed or hacked. To attract the customers Coles
Supermarket needs to make the advertisement more attractive.
Conclusion
In conclusion, it can be said that PESTLE analysis has helped to understand the macro
environment of Coles Supermarket. The impact of e-commerce on the customers is relevant. The
global market has the extra benefit for e-commerce and they have earned huge amount of profit.
The internal and external stakeholders are an important part to make the business organisation
more effective. To make the e-commerce more effective, financial resources are the most crucial
factor for Coles Supermarket. All the risk factors of e-commerce are also relevant for the
organisation as well as for the customers. In this assignment, the secondary research
methodology has helped to identify the market segmentation to make the e-commerce system
more efficient.
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