Evaluation of Honest Jim's Cars

This report presents the analysis and evaluation of a business named Honest Jim's Cars to improve their business performance. It includes SWOT and Porter's Five Forces analysis, evaluation of the business model, and the design of prototype pages for the business website.

Running head: BUSINESS INFORMATION SYSTEMS
Introduction to Business Information Systems
Assignment 2: Business scenario report
Name of the Student:
Name of the University:

1BUSINESS INFORMATION SYSTEMS
Executive Summary
In this report, the analysis and evaluation of a business named “Honest Jim’s Cars” has been
presented so that they could improve their business performance. The evaluation of the
business with the help of SWOT and Porter’s Five Forces analysis shows that there are
various challenges and issues faced by the organization. However, there are also some strong
points and opportunities of the business so that they could retain their competitive advantage.
It is also found that there is no online presence of the business thus it is required to enhance
the business performance and attract more customers. Hence, prototype pages has been
designed for the business website as well as reviewed with the help of HCI (Human
Computer Interaction) Design principles and Web Usability guidelines.

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Table of Contents
Introduction................................................................................................................................3
Part A: Evaluation of the business.............................................................................................3
Industry Background..............................................................................................................3
Business model and environment...........................................................................................3
Value proposition...................................................................................................................4
SWOT analysis and discussion..............................................................................................4
Porter’s five forces analysis outcomes review.......................................................................5
Table creation and discussion................................................................................................6
Part B: Information portal design...............................................................................................8
Design review and justification..............................................................................................8
Human computer interface (HCI) design principles..........................................................8
Web usability guidelines....................................................................................................9
Page designs and discussion of additional customer engagement techniques.....................10
Home page.......................................................................................................................10
Purchase/Bookings page..................................................................................................11
Selected output product page...........................................................................................12
Conclusion................................................................................................................................13
Bibliography.............................................................................................................................14
Appendices...............................................................................................................................16
Appendix 1 – Highest profit making car (Make).................................................................16
Appendix 2 – Highest selling car (Fuel)..............................................................................16
Appendix 3 – Highest selling car type (Type).....................................................................16
Appendix 4 – Formula view of the spreadsheet...................................................................17

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Introduction
This report is focused on a business “Honest Jim’s Cars” to determine their current
business position and evaluation of the business from different perspectives. In this report,
the evaluation of the business has been done with the help of SWOT and Porter’s Five Forces
analysis. The business model that will be suitable for the business has also been presented in
this report. Further, the sales data of past 12 months has been analyzed to determine current
position of the business and the margin of profit. Some prototype pages have also been
designed in this report as there is no online presence of the business.
Part A: Evaluation of the business
Industry Background
The business that has been chosen for analysis in this report is “Honest Jim’s Cars”
that focuses on providing high quality and affordable used cars to the customers. The
business is based in Melbourne and provides unbeatable deals as well as services to the
customers. The founders Jim Smith and partners opened the first car yard in the year 1972
however they had to struggle much for three years. In 1975, they gained popularity as one of
their most loyal customers became a famous TV and film star. Their business is well spread
in Melbourne but now they have also decided to expand in other two states that is Queensland
and New South Wales. The business is also facing many challenges and they also do not have
online presence so they have decided to develop their online presence for promoting their
products. The present owners that is sons of the original owners are not experienced thus it is
affecting the business significantly.
Business model and environment
The best suited model for the business of Honest Jim’s is Direct Sales business model
which will help them to increase their competitive advantage. The business will be able to

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increase their sales through proper promotion and marketing of their products. This model is
suitable for the business as it is focuses on target audience. The target audience of the
business is interstate customers as the demand from interstate markets is growing rapidly.
Value proposition
The business needs to develop a website so that the customers could easily get
information about the products or services being offered by Honest Jim’s Cars. A business
website will also help the business to increase awareness among the customers. The
customers will be able to stay connected with the business through website.
SWOT analysis and discussion
The SWOT analysis is carried out in context to the Honest Jim’s Cars business as
presented below:
Strengths Weaknesses
Provides quality as well as affordable cars.
Large customer base.
Affordable rates as compared to
competitors.
Brand image of the company.
Adequate availability of showrooms.
Facility of car loans.
The sons of the original owners run the
business who are inexperienced.
There is no online presence of their
business.
The cost for purchasing used cars is high.
The buyers do not have access to adequate
information.
Luxury cars are not included in their stock.
Opportunities Threats
Increase in population.
Rapid growth in demand for used cars.
Increase in demand for quality and
affordable cars.
First hand cars are much expensive in
Australia.
Change in market regulations or standards
for second hand products.
Proper handling of customer information.
Unavailability of skilled labours for
repairing used cars.
Inability to meet the international standards.

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From the above analysis on current position of the business, it can be said that there
are various difficulties and challenges faced by the business however there are some strong
points and opportunities to improve the business performance. The issues within the business
have to be mitigated to ensure success of the business.
Porter’s five forces analysis outcomes review
Bargaining power of suppliers: This aspect relates to analyzing the supplier power
and how they could develop pressure on the market for changing price, quality or product
availability. The suppliers in context to this business are the first hand users or car dealers in
the local market that purchases car from the owners and sell to the business. In context to this
business, this aspect is less dominant as the car dealers have less influence in the market as
compared to the business.
Bargaining power of customers: This aspect relates to power of customers with
regards to bargaining for price while purchasing a used car from the business. The customers
have high bargaining power so the business has to set some standard limit for prices at which
a particular car could be sold based on the condition.
Rivalry among competitors: The competition among the rivals in the market has
reduced but it could anytime change if the business does not consider it as a major concern.
Some companies are still existing in the market that could take over their business if not
handled properly. The business should introduce more attractive and innovative ways to
engage their customers to the business.
Threat of Substitution: A substitute product in the automotive industry is not possible
however there are chances that customers could get attracted towards other type of cars rather

6BUSINESS INFORMATION SYSTEMS
than those sold by the business. The business has cars of all three fuel types so there is less
chance of substitution but they have to increase their stocks also for hybrid cars.
Threat of New entrants: This aspect refers to entry of a new business competitor in
the market with same type of products or services being offered by Honest Jim’s Cars. A new
business company could overtake the market by providing exciting offers or discounts so that
business should analyze the present market condition at a regular basis.
Table creation and discussion
The spreadsheet with past 12 months’ data of the Honest Jim’s Cars sales has been
completed as presented below:
Honest Jims Cars Sold (past 12 months)
Make
Retail Unit
Price Qty Sold
Wholesale
Price Total Wholesale Price Total Retail Price Profit
Ford Territory SUV Diesel 2012 $19,500.00 15/01/2016 3 $17,355.00 $52,065.00 $58,500.00 $6,435.00
Ford Falcon Sedan Petrol 2015 $21,000.00 19/01/2016 1 $18,690.00 $18,690.00 $21,000.00 $2,310.00
Holden Captiva SUV Diesel 2009 $11,000.00 1/02/2016 2 $9,240.00 $18,480.00 $22,000.00 $3,520.00
Ford Falcon Sedan Petrol 2011 $15,880.00 15/02/2016 1 $13,339.20 $13,339.20 $15,880.00 $2,540.80
Toyota Camry Sedan HyBrid 2013 $27,800.00 22/02/2016 3 $25,576.00 $76,728.00 $83,400.00 $6,672.00
Ford Ranger Ute Diesel 2013 $23,900.00 2/03/2016 3 $20,315.00 $60,945.00 $71,700.00 $10,755.00
Holden Commodore Sedan Petrol 2016 $29,000.00 9/03/2016 4 $25,810.00 $103,240.00 $116,000.00 $12,760.00
Toyota Hilux Ute Diesel 2016 $53,990.00 10/03/2016 4 $46,971.30 $187,885.20 $215,960.00 $28,074.80
Holden Colorado Ute Diesel 2016 $45,790.00 14/03/2016 3 $38,921.50 $116,764.50 $137,370.00 $20,605.50
Mazda MX5 Sport Petrol 2015 $26,300.00 24/03/2016 3 $23,407.00 $70,221.00 $78,900.00 $8,679.00
Toyota Corolla Sedan HyBrid 2015 $29,900.00 30/03/2016 4 $27,508.00 $110,032.00 $119,600.00 $9,568.00
Toyota Hilux Ute Diesel 2016 $52,900.00 12/04/2016 3 $46,023.00 $138,069.00 $158,700.00 $20,631.00
Toyota Hilux Ute Diesel 2016 $48,900.00 8/05/2016 2 $42,543.00 $85,086.00 $97,800.00 $12,714.00
Mazda BT50 Ute Diesel 2016 $39,900.00 16/05/2016 2 $33,915.00 $67,830.00 $79,800.00 $11,970.00
Mitsubishi Triton Ute Diesel 2015 $37,800.00 10/06/2016 3 $32,130.00 $96,390.00 $113,400.00 $17,010.00
Mazda BT50 Ute Diesel 2016 $35,980.00 11/06/2016 5 $30,583.00 $152,915.00 $179,900.00 $26,985.00
Mitsubishi Triton Ute Diesel 2016 $37,900.00 11/06/2016 3 $32,215.00 $96,645.00 $113,700.00 $17,055.00
Ford Ranger Ute Diesel 2016 $56,990.00 18/06/2016 4 $48,441.50 $193,766.00 $227,960.00 $34,194.00
Holden Commodore Sedan Petrol 2012 $14,900.00 22/06/2016 1 $13,261.00 $13,261.00 $14,900.00 $1,639.00
Nissan Navara Ute Diesel 2016 $48,880.00 29/06/2016 4 $41,548.00 $166,192.00 $195,520.00 $29,328.00
Holden Colorado Ute Diesel 2016 $48,880.00 31/6/2016 3 $41,548.00 $124,644.00 $146,640.00 $21,996.00
Toyota Hilux Ute Diesel 2016 $51,900.00 8/07/2016 5 $45,153.00 $225,765.00 $259,500.00 $33,735.00
Ford Territory SUV Petrol 2014 $25,600.00 11/07/2016 2 $22,784.00 $45,568.00 $51,200.00 $5,632.00
Holden Colorado Ute Diesel 2016 $48,500.00 1/08/2016 4 $41,225.00 $164,900.00 $194,000.00 $29,100.00
Nissan Patrol SUV Diesel 2013 $26,500.00 9/08/2016 3 $23,585.00 $70,755.00 $79,500.00 $8,745.00
Mitsubishi Lancer Sedan Petrol 2015 $19,200.00 14/10/2016 2 $17,088.00 $34,176.00 $38,400.00 $4,224.00
Toyota Hilux Ute Diesel 2015 $38,900.00 14/10/2016 3 $33,843.00 $101,529.00 $116,700.00 $15,171.00
Kia Rio Sedan Petrol 2014 $12,300.00 31/10/2016 3 $10,947.00 $32,841.00 $36,900.00 $4,059.00
Toyota Corolla Sedan HyBrid 2016 $32,900.00 18/11/2016 2 $30,268.00 $60,536.00 $65,800.00 $5,264.00
Holden Commodore Sedan Petrol 2015 $26,500.00 8/12/2016 1 $23,585.00 $23,585.00 $26,500.00 $2,915.00
Totals 2,722,842.90$ 3,137,130.00$ 414,287.10$
Figure 1: View of the completed spreadsheet with provided data
(Source: Created by Author)
From the above information, it is found that the total profit being earned by the
business over past 12 months is $414,287.10.

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Trends or insights identified to gain a competitive advantage
Trend 1 – Highest profit making car (Make)
Ford Holden Kia Mazda Mitsubishi Nissan Toyota
0
20000
40000
60000
80000
100000
120000
140000
Total Sales (As per Make)
Total
Figure 2: Total Sales information as per Make of cars from the provided data
(Source: Created by Author)
From the above diagram, it can be said that the highest sold cars by the company is of
Toyota and it has contributed the most towards profit. The sale of Toyota cars has remarkably
increased profit margin of the company with a value of $ 131829.80 which is much higher
than the other cars.
Trend 2 – Highest selling car (Fuel)
Diesel HyBrid Petrol
0
5
10
15
20
Total Sales (As per Fuel Type)
Total
Figure 3: Total Sales information as per Fuel type of cars from the provided data
(Source: Created by Author)

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In the above diagram, the total sales of cars as per fuel type has been illustrated which
demonstrates that Diesel type is most sold car by the company. From the data, it can be also
said that customers prefer diesel cars more than petrol or hybrid cars.
Trend 3 – Highest selling car type (Type)
Sedan Sport SUV Ute
0
2
4
6
8
10
12
14
16
Total Sales (As per Type)
Total
Figure 4: Total Sales information as per Type of cars from the provided data
(Source: Created by Author)
From the above diagram, it can be said that the most preferred type of car is Ute as it
has the most selling value that is 15 in numbers while others have a low value. The Ute type
cars are more preferred by the customers rather than Sedan, Sport or SUV. The Ute cars are
most selling as those vehicles are mostly used as utility vehicles.
Part B: Information portal design
Design review and justification
Human computer interface (HCI) design principles
Affordance: The designed pages for the business website are such that it could easily
meet the expectation of the users. The elements being used such as the toolbar for search,

10BUSINESS INFORMATION SYSTEMS
navigation bar in every page could be easily identified by the users with or without technical
knowledge and expertise. The pages have been designed with familiar elements so that the
users do not have to spend more time in determining the functions of each element and use
the interface with ease.
Consistency: For maintaining consistency in the website, the interface has been
designed with commonly used UI (User Interface) elements that is buttons, navigation and
menu bars. The elements have been placed in such a manner that the users could easily view
the options available in the website. The products have been categorized with the help of
vertical and horizontal navigation bars so that users could easily find their desired cars
without applying filters.
Constraints: This principle has been applied while designing the prototype pages such
that the users could stay focused on the required actions. The system will prompt the user to
provide input or take necessary action where required. The designed interface will make the
users proceed to next step only after completing the required actions at previous step. The
interface will also ensure that less chances of error while the users performs a certain action
as it will request for confirmation at every step.
Web usability guidelines
Visibility of system status: The designed interface will offer the users with constant
communication and feedback while operating the commands performed by the user. The
interface will provide the users with feedback so that the users could easily understand
progress being made by the system. The interface will also help the user to determine the next
step that is being performed by the system while the user performs an action.
Error prevention: The interfaces being designed has been provided with a button so
that the users could easily revert back to their previous action in case a wrong action is being

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taken by the user. The designed pages are embedded with a “Back” button at the topmost left
corner to ensure that it is easily visible to user as well as the user will be prompted at every
step to confirm their actions.
Consistency and standards: The interfaces have been designed maintaining the
consistency and standards of web design. The elements being used in the interface are
common and typical as used in almost every website so that the users do not have to think
much while performing actions in the system.
Page designs and discussion of additional customer engagement techniques
Home page
Figure 5: Home page for “Honest Jim’s Cars” business website
(Source: Created by Author)

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Purchase/Bookings page
Figure 6: Purchase/Bookings page for “Honest Jim’s Cars” business website
(Source: Created by Author)

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Selected output product page
Figure 7: Selected product page for “Honest Jim’s Cars” business website
(Source: Created by Author)
The additional tools or engagement methods that will be included in the website to
increase its competitive advantage are discussed as below:
Linking the main business site to social network site: This tool could be used in the
website so that more people could become aware of the business. It will also help the
business to increase their customer base through advertising and marketing with the help of
social networking sites.

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Better website search engine presence: This tool will enhance the customer
experience as the users will not have to search throughout the entire website to find their
preferred car. The interface has already been implemented with a “Search” bar so that users
could easily find the right option from the entire website.
Customer enhancement options: This tool will include implementing various options
for enhancing the customer engagement. A map facility will be included in the website so
that the customers could get easy access to the showrooms along with purchasing and
payment options could be included so that the customers could purchase their desired car
through online. Further, feedback and customer support facility will be included in the
website so that the customers could easily get support and express their opinion on the
services.
Conclusion
From the above discussions carried out in this report, it can be concluded that the
business performance could be improved with the help of online presence. A website for the
business will help them to carry out their operations easily and increase awareness among the
customers. The threats and challenges faced by the business have to mitigated with the help
of training sessions or recruiting skilled professionals with better business ideas. The
handling of information is another concern that should be considered by the business so that
they could improve their business performance. The trends being found from the provided
data reflects that the business should focus on procuring Toyota and Diesel cars as it
contributes to a significant amount of the profit.

15BUSINESS INFORMATION SYSTEMS
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Appendices
Appendix 1 – Highest profit making car (Make)
Appendix 2 – Highest selling car (Fuel)

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Appendix 3 – Highest selling car type (Type)
Appendix 4 – Formula view of the spreadsheet
Make Retail Unit Price Qty Sold Wholesale Price Total Wholesale Price Total Retail Price Profit
Ford Territory SUV Diesel 2012 19500 42384 3 =F4-(F4*F40) =I4*H4 =F4*H4 =K4-J4
Ford Falcon Sedan Petrol 2015 21000 42388 1 =F5-(F5*F40) =I5*H5 =F5*H5 =K5-J5
Holden Captiva SUV Diesel 2009 11000 42401 2 =F6-(F6*F39) =I6*H6 =F6*H6 =K6-J6
Ford Falcon Sedan Petrol 2011 15880 42415 1 =F7-(F7*F39) =I7*H7 =F7*H7 =K7-J7
Toyota Camry Sedan HyBrid 2013 27800 42422 3 =F8-(F8*F37) =I8*H8 =F8*H8 =K8-J8
Ford Ranger Ute Diesel 2013 23900 42431 3 =F9-(F9*F38) =I9*H9 =F9*H9 =K9-J9
Holden Commodore Sedan Petrol 2016 29000 42438 4 =F10-(F10*F40) =I10*H10 =F10*H10 =K10-J10
Toyota Hilux Ute Diesel 2016 53990 42439 4 =F11-(F11*F36) =I11*H11 =F11*H11 =K11-J11
Holden Colorado Ute Diesel 2016 45790 42443 3 =F12-(F12*F38) =I12*H12 =F12*H12 =K12-J12
Mazda MX5 Sport Petrol 2015 26300 42453 3 =F13-(F13*F40) =I13*H13 =F13*H13 =K13-J13
Toyota Corolla Sedan HyBrid 2015 29900 42459 4 =F14-(F14*F37) =I14*H14 =F14*H14 =K14-J14
Toyota Hilux Ute Diesel 2016 52900 42472 3 =F15-(F15*F36) =I15*H15 =F15*H15 =K15-J15
Toyota Hilux Ute Diesel 2016 48900 42498 2 =F16-(F16*F36) =I16*H16 =F16*H16 =K16-J16
Mazda BT50 Ute Diesel 2016 39900 42506 2 =F17-(F17*F38) =I17*H17 =F17*H17 =K17-J17
Mitsubishi Triton Ute Diesel 2015 37800 42531 3 =F18-(F18*F38) =I18*H18 =F18*H18 =K18-J18
Mazda BT50 Ute Diesel 2016 35980 42532 5 =F19-(F19*F38) =I19*H19 =F19*H19 =K19-J19
Mitsubishi Triton Ute Diesel 2016 37900 42532 3 =F20-(F20*F38) =I20*H20 =F20*H20 =K20-J20
Ford Ranger Ute Diesel 2016 56990 42539 4 =F21-(F21*F38) =I21*H21 =F21*H21 =K21-J21
Holden Commodore Sedan Petrol 2012 14900 42543 1 =F22-(F22*F40) =I22*H22 =F22*H22 =K22-J22
Nissan Navara Ute Diesel 2016 48880 42550 4 =F23-(F23*F38) =I23*H23 =F23*H23 =K23-J23
Holden Colorado Ute Diesel 2016 48880 31/06/2016 3 =F24-(F24*F38) =I24*H24 =F24*H24 =K24-J24
Toyota Hilux Ute Diesel 2016 51900 42559 5 =F25-(F25*F36) =I25*H25 =F25*H25 =K25-J25
Ford Territory SUV Petrol 2014 25600 42562 2 =F26-(F26*F40) =I26*H26 =F26*H26 =K26-J26
Holden Colorado Ute Diesel 2016 48500 42583 4 =F27-(F27*F38) =I27*H27 =F27*H27 =K27-J27
Nissan Patrol SUV Diesel 2013 26500 42591 3 =F28-(F28*F40) =I28*H28 =F28*H28 =K28-J28
Mitsubishi Lancer Sedan Petrol 2015 19200 42657 2 =F29-(F29*F40) =I29*H29 =F29*H29 =K29-J29
Toyota Hilux Ute Diesel 2015 38900 42657 3 =F30-(F30*F36) =I30*H30 =F30*H30 =K30-J30
Kia Rio Sedan Petrol 2014 12300 42674 3 =F31-(F31*F40) =I31*H31 =F31*H31 =K31-J31
Toyota Corolla Sedan HyBrid 2016 32900 42692 2 =F32-(F32*F37) =I32*H32 =F32*H32 =K32-J32
Holden Commodore Sedan Petrol 2015 26500 42712 1 =F33-(F33*F40) =I33*H33 =F33*H33 =K33-J33
Totals =SUM(J4:J33) =SUM(K4:K33) =SUM(L4:L33)