Business Plan for Online Ordering System

This report provides a business plan for incorporating an online ordering system for Motosmart Limited, a spare parts dealer in the UK. It discusses the objectives, strategies, and financial projections for implementing the system.

Running head: BUSINESS PLAN
Management
Name of the student
Name of the university
Author note

1BUSINESS PLAN
Table of Contents
Executive Summary......................................................................................................2
Introduction...................................................................................................................2
Business Strategy.........................................................................................................3
Mission......................................................................................................................3
Vision.........................................................................................................................3
Business objectives......................................................................................................3
Strategic priorities.........................................................................................................4
Success factors............................................................................................................4
Business function of the company................................................................................5
Business direction for the next five years...................................................................10
Situational analysis.................................................................................................10
Internal....................................................................................................................10
External...................................................................................................................10
Sales prediction..........................................................................................................10
Financial forecast........................................................................................................11
Road map from scope to the goals............................................................................12
References.................................................................................................................13

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Organization: Motosmart Limited
Executive Summary
This report had provided a business plan for incorporating an online ordering
system for Motosmart limited so that the organization can move out of their
traditional ways of operating to embrace the needs of modern consumers and
organizations. The business plan had vividly described the objectives of the plan and
provided ways of achieving the plan by identifying the necessary resources.
Moreover, it had developed financial projections to support the importance and
significance of addressing the organizational change in business strategy and model.
Introduction
Motosmart limited is one of the start-up companies in United Kingdom
operating as spare parts dealers. The business entity was established in the year of
2014. The company provides spare parts for mid-range sports cars such as Mazda
and Honda S2000. The organization has their own suppliers and warehouse within
Herefordshire, Buckinghamshire and Bedfordshire. The company has been
operating using a traditional business model where the consumers have to be
physically present at the warehouse and request the parts they need. The operator
dealing with the customer checks the parts catalogue and places request to the
warehouse employees based on availability. The company also uses the call and
collect facility where the consumers inquire and order a product over the phone on
the helpline of the company to check stock availability and collect the product later
by visiting the warehouse.
In the first year, the company had been successful in reaching an annual
turnover of £1,000,000 with the operating profit margin of £25,000. The company
took a customer survey by reaching out to more than 2000 clients and were able to
collect 1200 responses. The results were positive where consumers were satisfied
with the services but there were various areas where drastic changes were required
for providing better service. The lack of an online ordering and delivery system made
the overall experience for the consumers are little painful where they had to wait in
long queues while ordering on the helpline. Similarly, they faced difficulty in going out
to the store each time they require any parts. The online ordering and delivery

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service would have been one of the best ways of solving these issues and making a
step forward in improving the sustainability of the firm.
However, the major issue was the fact that the management of the
organizations have little technical understanding of developing a suitable online
ordering and delivering system. Moreover, they lack the expertise in aligning and
integrating the new online ordering system into the business model. It is also
essential to make changes to the business strategy to accommodate the change so
that the management information system can be customized as per the needs of the
business.
This report has created a business plan which has addressed the above-
mentioned needs of the organization and provide necessary information on the
system and its components. The report has detailed description of the business
objectives and the ways it would be achieved by the organization.
Business Strategy
Mission
The mission of the organization to be become the market leader in the spare
part business in the upcoming five years by innovation and strategic initiative. The
company wishes to increase their profit margin in the upcoming years by 6% and
address the goals of the internal stakeholders.
Vision
The company wishes to provide the consumers with the best possible
experience and quality product at value for money.
Business objectives
The main objectives of incorporating this new business plan are as follows:
 To increase the market share in United Kingdom by 6% atleast.
 To further penetrate into the market by using effective digital marketing tools
to retain existing and acquire new consumers.
 To enhance the quality of service provided to the consumers throughout the
journey map by developing effective online ordering system.
 To install a delivery service other than the click and collect facilities.

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 To gather more foreign direct investment for expand the business in local and
global market
 To reduce the cost of overall operations to increase the profit margin by 10%.
Strategic priorities
The strategic priorities will determine the functions that will be within the
scope of the online delivery system. These priorities are mentioned below:
 To keep track of all the available inventories of different stock parts
 To customize the search of parts based on car models of consumers
 To store consumer data securely and safely to protect their privacy and
anonymity
 To analyse collected data on consumer to understand the needs of the
consumers
 To implement economies of scale and economic order quantity to keep
optimal amount of inventory at all times.
 To provide the customer with the option from choosing between click and
collect and home delivery.
 To keep track of all the inventory moving out and replacing it within the given
time
 To incorporate online payment options of various types to make the overall
experience convenient for the consumers.
 To include options for feedback on delivery so that the overall system can be
improved for achieving the highest level of customer service.
 To increase the number of warehouses to provide consumers delivery within
minimum time.
Success factors
The company needs to develop an effective plan for the overall management
of the project which should provide the detailed outline of the aspects that are within
the scope. This will facilitate in understanding the changes that are being
incorporated and further improvement required. The current project will develop the
online system within four weeks and will require £30,344.00. However, if additional
budget is required then, approval of the management board have to be taken.

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Moreover, the project will also prepare for contingencies and risks involved while
developing the websites so that business can be kept functional and sustainability
can be maintained.
Business function of the company
The purpose of developing the online system is to address the needs of the
consumers by providing them the option of online ordering and delivery service. The
system will be developed by keeping in mind the goals of the organization. The
system will monitor the current stock in all possible warehouses and keep a track of
the spare parts in demand. This will facilitate in reaching the optimal stock for each
of the parts and avoid wastage. The online system will evaluate the evaluate the
buying patterns of the consumers to provide recommendations on their searches and
guiding them in finding what they need. The aim of the project is to finish the system
development as soon as possible but there are options of reducing the cost by
increasing the timespan and slowly incorporating the system in double the time. This
would make the cost half of the forecasted amount. However, it is essential to keep
buffer time and cost for emergency purposes and identify the risk factors that hinder
the project.
Task Name Duration Start Finish Resource
Names Cost
Implications
as per
objective
Online ordering
system 31 days
Wed
10-
04-19
Wed
22-05-
19
£30,344.00
1.0 project
initiation
6 days Wed
10-
04-19
Wed
17-04-
19
£720.00 This phase
allows to
hold meeting
with the
stakeholders
to identify
the customer

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requirements
1.1 Meeting with
stakeholders 1 day
Wed
10-
04-19
Wed
10-04-
19
Operations
manager,
project board,
project manager
£320.00
1.2 Develop
requirements 2 days
Thu
11-
04-19
Fri 12-
04-19 project manager £160.00
1.3 Develop
scope of the new
system
2 days
Mon
15-
04-19
Tue
16-04-
19
project manager £160.00
1.4 Document
the overall
requirement
1 day
Wed
17-
04-19
Wed
17-04-
19
project manager £80.00
1.5 Milestone 1:
Design
requirements
confirmed
0 days
Wed
17-
04-19
Wed
17-04-
19
£0.00
2.0 Project
design 5 days
Thu
18-
04-19
Wed
24-04-
19
£1,152.00
This phase is
responsible
for creating a
robust
design for
the online
ordering
system
2.1 network
design
2 days Thu
18-
04-19
Fri 19-
04-19
software
engineer,
system
£256.00

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developer
2.2 hardware
design 2 days
Thu
18-
04-19
Fri 19-
04-19
software
engineer,
system
developer
£256.00
2.3 interface
design 2 days
Thu
18-
04-19
Fri 19-
04-19
software
engineer,
system
developer
£256.00
2.4 Integrate all
aspects into a
single design
3 days
Mon
22-
04-19
Wed
24-04-
19
software
engineer,
system
developer
£384.00
2.5 Milestone 2:
Online system
designed
0 days
Wed
24-
04-19
Wed
24-04-
19
£0.00
3.0 Project
Implementation 6 days
Thu
25-
04-19
Thu
02-05-
19
£25,224.00
This phase
implements
the design
and adds
functions to
the system
needed for
effective
development
of website
3.1 Develop the
online system
5 days Thu
25-
04-19
Wed
01-05-
19
software
engineer,
system
developer,
hardware cost
£20,840.00

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[1], software
cost
3.2 Incorporate
payment options 1 day
Thu
02-
05-19
Thu
02-05-
19
software
engineer,
system
developer,
software cost
£4,128.00
3.3 Incorporate
parts and client
database
1 day
Thu
02-
05-19
Thu
02-05-
19
software
engineer,
system
developer
£128.00
3.4 Develop
options for
storing client
data as per the
purchasing
behaviour
1 day
Thu
02-
05-19
Thu
02-05-
19
software
engineer,
system
developer
£128.00
3.5 Milestone 5:
online system
developed
0 days
Thu
02-
05-19
Thu
02-05-
19
£0.00
4.0 Launching 14 days Fri
03-
05-19
Wed
22-05-
19
£3,248.00 This phase
will test the
website and
improve the
use
friendliness
of the
website for
better
consumer

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experience
4.1 Launch the
beta version 2 days
Fri
03-
05-19
Mon
06-05-
19
software
engineer,
system
developer
£256.00
4.2 Test the site 7 days
Tue
07-
05-19
Wed
15-05-
19
Operations
manager,
project board,
project manager
£2,240.00
4.3 Make
changes as per
feedback
2 days
Thu
16-
05-19
Fri 17-
05-19
software
engineer,
system
developer
£256.00
4.4 Meeting with
stakeholders 1 day
Mon
20-
05-19
Mon
20-05-
19
project board,
project manager £240.00
4.5 Go live 2 days
Tue
21-
05-19
Wed
22-05-
19
software
engineer,
system
developer
£256.00
4.6 Milestone 6:
Online system
implemented and
project closed
0 days
Wed
22-
05-19
Wed
22-05-
19
£0.00

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Business direction for the next five years
Situational analysis
Internal
The organization should monitor and upgrade the system on regular basis to
make sure the consumer experiences are enhanced after each year. The online
system needs to be rated and employees should be provided to training and
development skills to make sure that the website can be handled effectively. The
current system does not incorporate options for replacement of parts that are faulty
and in future these feature needs to be added to improve the quality of service to the
consumers. Inventory management is another key aspect which the organization
needs to work on by keeping optimal amount of stocks by assessing the change in
demand in the market.
External
The competition in the market is expected to rise in the upcoming years so the
organization needs to take constant feedback from the consumers to make sure that
there is flexibility in the organizational business model. The organization may face
tremendous challenges in the near future but in order to reduce the risk, they need to
increase the number of warehouse and extend their service quality to remote
locations.
Sales prediction
The sales prediction for the upcoming five years shows that there would
increase in sales exponentially where it expected that the sales volume will be
double that the previous years. This is only possible by incorporation of an effective
online ordering system which not only provides the opportunity of taking online
orders but also improve the inventory management capabilities of the organization in
the years to come. The sales forecast shows a straight line where there is steady
year to year increase the number of parts sold due to the incorporation of the new
system. However, there may be variations due to the external changes in the market
and the company has the room to make better progress if they are able to enhance
their innovation and technological capabilities in the next few years.

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0
1000
2000
3000
4000
5000
6000
7000
5-Year Units Sold
Financial forecast
Initially due to the cost incurred, the profit will decrease but the first graph
shows that progression of profit in the next five years where it can be seen that the
profit could reach up to £2,00,000 and even more in the next five years. This clearly
depicts the improvement in terms of profit margin can be achieved by developing an
online ordering system. The second graph shows that growth rate of sales in the
next five years where it can be seen that there is a steady growth which diminishes.
However, it is possible for the organization to increase their growth rate further by
incorporating changes to the new business model through continuous improvement
and innovation in operations.
GBP 0.00
GBP 50,000.00
GBP 100,000.00
GBP 150,000.00
GBP 200,000.00
GBP 250,000.00
Profi t margin

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0%
5%
10%
15%
20%
25%
30% 5-Year Growth Rate
Road map from scope to the goals
The roadmap depicts the way each of the phases and department are linked
to each other for achieving the goals. The resource required have been described
and other departments need to be in harmony with these changes to make the
organizational business model effective and reach a sustainable competitive
advantage.

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References
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Schwalbe, K., 2015. Information technology project management. Cengage
Learning.
Vega, R.D.C., Novila, P.M., Ibañez, R.L., Teñido, M.P. and Agustin, L.F., 2018.
Online ordering and payment system with sms notification for nina clothing
accessories. International Journal of Advanced Research in Computer
Science, 10(6).
Howard, C., Marklund, J., Tan, T. and Reijnen, I., 2015. Inventory control in a spare
parts distribution system with emergency stocks and pipeline
information. Manufacturing & Service Operations Management, 17(2), pp.142-156.
Harsoor, A.S. and Patil, A., 2015. Forecast of sales of Walmart store using big data
applications. International Journal of Research in Engineering and Technology, 4(6),
pp.51-59.