Business Skills in E-Commerce: A Case Study of Leon's Fruit Shop

This report examines the implementation of an e-commerce system for Leon's Fruit Shop, a London-based retailer of fresh produce. It analyzes the core business functions, stakeholders, and potential risks and benefits of adopting e-commerce. The report also investigates market potential, evaluates competitor systems, and discusses financial implications. Finally, it designs an e-commerce solution tailored to Leon's Fruit Shop and evaluates its suitability.

BUSINESS SKILLS IN E-
COMMERCE

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
Task 1...........................................................................................................................................................2
P1.1 Assess the core business functions of the organization...................................................................2
P1.2 Evaluate your chosen organisation’s business aims and show how they relate to their
stakeholders.............................................................................................................................................4
Task 2...........................................................................................................................................................7
P2.1 Analyze the impact, including the risks, of introducing an e-Commerce system...........................7
2.2 Discuss the global impact of e-Commerce on society in relation to the organization......................8
Task 3.........................................................................................................................................................10
P3.1 using appropriate research methodologies, Investigate market potential for an e-Commerce
opportunity.............................................................................................................................................10
P3.2 Evaluate current e-Commerce systems in use by similar organizations (competitors).................11
P3.3 Discuss the financial implications of e-Commerce solution.........................................................12
P3.4 Design an ecommerce solution to enhance the business functions of your chosen organization. 12
P3.5 Evaluate the suitability of the e-Commerce..................................................................................15
Conclusion.................................................................................................................................................17
References..................................................................................................................................................18

LIST OF FIGURES
Figure 1: Flat structure of Leon's Fruit Shop...............................................................................................2
Figure 2: UK retail store share...................................................................................................................11
Figure 3: Site map for major pages............................................................................................................13
Figure 4: Payment system for Leon's Fruit Store including authorising, authenticating and clearing
system........................................................................................................................................................15

Introduction
E-commerce is the system that is used by the customers to conduct the online purchases and sales. It is
being referred that digital technology saves operational cost, leads to atomization, time saving and more
customer targeting. In the current study, the report will discuss about the implementation of e-commerce
system in Leon’s Food Store based in London UK and currently they only have webpage. Business aims
and objectives, risks and benefits and business operations adopted in e-commerce system will be
explained. At the end, the report will review market potentials, financial implications, suitability and
current system in use of competitors. Lastly, suitability and design will also be discussed in considering
the organisation undertaken in study.
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Task 1
P1.1 Assess the core business functions of the organization
Leon’s Fruit Shop is the supplier of high class fruits, vegetables and salads. It is based in London, UK
and offer healthy and clean product at free delivery across London. The organization is small but sells
variety of products at different price range. The major organization functions are to offer best quality of
fresh fruits, pelled fruit and veg, salads, vegetables, herbs, eggs, fruit baskets and dried fruits to their
customers.
Structure of the organization
As the organization comes in the retail fruit and vegetable segment, the business structure of the
organization is flat organization structure. In this structure, the power is handed only to the single
person. There is no specialization of work and every work is done by everyone and thus there are no
separate departments (Chang, 2016). Different qualified and experienced workers are appointed who has
knowledge about the products the organization is selling so as to meet the organizational objectives.
Figure 1: Flat structure of Leon's Fruit Shop
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(Source: Author, 2018)
The main objective of the organization is based on SMART objective:-
Specific: Objective of the organization clearly specifies that it want to move towards the e-commerce
platform.
Measurable: Leon’s fruit shop measures the objectives in terms such as rise in profits by 10% from e-
commerce.
Agreed: The organization objective is made in such manner every employee in the organization has
given their acceptance (Benn et.al. 2014).
Realistic: The objective set is very much real and particularly based on considering the conditions of
market and financial resources.
Time: It is important to determine the time and it is estimated that the objective will be achieved in 12
months.
Mission of the organization
The Leon’s Fruit Shop mission is to be the most trusted fruit store organization by giving online services
across UK.
Vision of the organization
The vision trusted fruit and vegetable retail organization where employees love their work and
customers love to purchase the fresh and healthy products.
Core business function of Leon’s Fruit Store
Main markets: Vegetables and fruits production is generally seasonal but the demand for the product is
every time not based on season. But at few times, this kind of organizations also faces the challenges in
making the availability of the product as per the demand of the customers. To overcome this limitation,
Leon’s Fruit Store takes out two methods i.e. in the harvesting period, sell the product fresh and in the
same period processing also takes place to meet the demand in rest of the period (Kurnia et. al. 2015). In
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the competitive environment as the technology is used in every sector, it has become easy for the fruit
suppliers as well to supply the products on regular basis to their customers.
Fresh market: The demand for the fresh product is more as compared to the processed product. Thus to
remain competitive organization always has to supply the fresh products to their customers. Thus it is
the core business function of the organization to offer product quality. The organization in London has
the chain stores and they are linked with the large retailer and suppliers to maintain the demand of the
targeted customers. To promote their products to the e-commerce platform, the organization is planning
to develop the marketing plan.
Determining demand in the market: Leon’s Fruit Store core business function is to assess the demand in
the London market and across UK as well. The research in the market must be carried out for the
demand and the ways of the competitor’s are also analyzed that by which means they sell the product i.e.
e-commerce or traditional marketing (Rosemann et.al. 2015). The customer buying decisions is to be
understood so that selling function becomes easy for them.
P1.2 Evaluate your chosen organisation’s business aims and show how they relate to their stakeholders
The organizations have their aims which they are required to be achieved through various use of
strategies. The objectives and aims of the organization are linked with the healthy serving of fruits and
vegetables to the customers to ensure their product quality and customer retention. The aim and
objectives are as follows:-
Aims:
The organization needs to improve the quality of the product for attracting large customer base. Market
positioning is also important.
Objectives:
 Giving the healthy life to the customers
 Having effective food production system based on harvesting and processing
 Effective use of technology for storing of the non seasonal products
 Market oriented food supply to raise customer standards.
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The aim of the organisation is to manage the quality and retain the customers. In this context,
organisation must offer rewards, bonus, refund and customer friendly environment. While on other side,
moving at the quick speed can directly impact’s the product quality (Miller et.al. 2014). Thus, the
Leon’s should necessarily consider the expectations of the stakeholders.
Business stakeholders
There are various stakeholders in the business whose objective is to meet the defined goals, profits and
purposes. Optimising the business growth is also essential for all the listed stakeholders:-
Employees: The most important asset of the organisation that supports in running the business in the
profitable manner. Administrator assistance
Customers: They expect the value and quality of the product for which they are paying. Customer
satisfaction supports in generating the profits and giving healthy life to the employees.
Government: The government role is to give the rules and guidance on the business practices that must
be carried out by the customers. Moreover, for effective working of food production system, the
government can give assistance with respect to finance and funding that ultimately helps in meeting
business objectives (Klettner et.al. 2014).
Owners: These individuals take risk in the business and manage the resources in such way that puts the
business to the next instance. They are concern about all the objectives mentioned above that supports
long term sustainability and competitive growth.
Aims and objectives relating with stakeholders
There are two categories of stakeholders that are external and internal stakeholders that supports in
meeting the business objectives. Customers provide the revenue through which production systems can
be improved and advanced. While employees are asset whose objective is to manage the quality and
offers such goods that generates customer satisfaction and retention. Revenue and profits are dependent
on the demand and expectations of all the stakeholders. Further, market competition is the greatest threat
that creates hurdle in meeting the competitive advantages.
Target market of the organisation
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Leon’s Food Store targets majorly the individuals or groups to whom the organisation sells their services
and products. Market targeting is the procedure through which organisation has to analyse the market for
product selling. It will also include middle and high range of income group of the customers as well. The
female group is especially targeted because they are well known aware about healthy fruit lifestyle.
Leon’s Fruit Store analyse the market with developing the strategies to meet the customer’s expectations
and loyalty.
Issues faced by the organisations
High competition in the market is the biggest threat to the organisation and on this the need to move the
e-commerce arises so as to lower the impact on income and revenue (Epstein and Buhovac, 2014). It is
crucial for the organisation to create the objectives for executing the e-commerce system by exploring
their major strengths that is product quality and effective customer base.
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Task 2
P2.1 Analyze the impact, including the risks, of introducing an e-Commerce system
Associated risk with e-commerce system
There are various advantages in implementing the e-commerce system but with that there are various
risks which are also connected with the systems. The risk is related to the loss of data and other
confidential information. There are numerous challenges that impact the proper use of e-commerce
online services to the organizations.
Consumer location and address
In the e-commerce, correct location and address is very important to conduct the successful transactions.
Because of incorrect information related to the customers various issues and problems can be created. At
few times, the wrong information can deliver the product at the wrong locations that results into failure
of e-commerce transactions (Belkhamza and Wafa, 2015). Further, a wrong impact will leave bad
impression on the customer mind and they will have the hesitance to conduct the online purchase
especially if the case relates to perishable goods.
Effective feedbacks from customers:
E-commerce implementation also requires the feedback procedure as well. Further if no feedback or
responses are received by the organization, it means they are negatively impacting business functioning.
Positive feedback will increase and provide motivation to employees to raise their performance while
negative feedbacks can basically impacts the business performance of e-commerce business of fruits and
veggies. If customers are not happy with the organizations services they can switch over to the other
organization providing the same products which ultimately influence the profit ratio of Leon’s Food
Store (Galliers and Leidner, 2014).
E-commerce system of delivery and influence of introducing e-commerce
With the effective implementation of e-commerce the organizational sales of the business is increased
through online means. This supports in meeting the competitive benefits and overcoming the barriers of
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geographic boundary. Further, transactions can be carried out from any corner of the world located
anywhere. So delivery system is also liberal in e-commerce (Barnes and Hunt, 2013).
Customer impacts by e-commerce:
With the support of e-commerce strategy, there are several kinds of positive influences that are
developed by the organizations on consumers. Online website of e-commerce can support the customers
to choose their products. This type of facilities can influence the customers with managing their
customer loyalty towards Leon’s Fruit Store.
2.2 Discuss the global impact of e-Commerce on society in relation to the organization
Use of e-commerce strategy in business will develop the some positive and negative influences on the
society with respect to Leon’s Fruit Store. The below given are the global influences of the e-commerce
on the society in context with the organization:-
Positive influence of e-commerce on the society
 E-commerce websites supports in giving the product customization according to the needs,
demands and desires of the end customers.
 The flexibility is offered in e-commerce sites on account of defective product and return, but it is
quite complex in the retail stores which is one of the crucial influence on the e-commerce on
society (Ferraro and Brody, 2015).
 Direct marketing and promotions can be done to influence the customers towards the products.
Thus society coverage in this sector is very broad.
 It will support in managing the useful goodwill and brand reputation in the organization. With
this customers can easily address the brand of Leon’s Fruit Store from the competitors.
E-commerce objective is to enhance the business usefulness and its productivity. This platform gives the
advance opportunities for business growth sustainability and raising business standards. The business
also enables giving convenience and comfort with respect to product delivery, mode of services,
payment structures with product service and quality. Furthermore, it is also useful for the businesses to
optimize the advantages that supports in increasing the business growth (Da Costa, 2016). Moreover, big
base of customers will give high revenue to the organization that ultimately gives benefits to raise the
standards of societies as well.
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Negative global impact of the e-commerce on the social society
 In use e-commerce, the major risk is related to the hacking of the personal information. Hackers
can steal the private information and crucial details of the customers.
 E-commerce gives very less information to the customers related to the product and sometimes
visibility is also not clear due to which consumers don’t understand the real position product and
its quality related (Jovarauskienė and Pilinkienė, 2015).
 Delivery time and shipping charge is another negative influence that ultimately increases the
price of end product which results into breaking down of promises of the organizations.
 The lastly, customers cannot feel the product that sometimes result into non purchase to
customers. In e-commerce, a product surety and quality is not assured that gives negative
influence on society.
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Task 3
P3.1 using appropriate research methodologies, Investigate market potential for an e-Commerce
opportunity
Leon’s Food Stores is the organization who sells the fruits and veggies to the consumers. The research
will be carried out in London groceries market. In the existing time, the organization has limited scope
and limited sales as well. To meet and research in the capable market, there are various e-commerce
opportunities a team can use several types of methodologies in which use of secondary data is done.
With the secondary research, the organization will determine the information based on the records and
last surveys of the customers related to success of e-commerce. Books, journals and web articles are
taken into account to analyze e-commerce opportunities. The below are the e-commerce opportunity in
the market by using secondary research method are as follows:-
Investigation related to business: Investigating about the business is very important for the organization
so that effective implementation of the e-commerce can be done. The revenue and income of the
organization will be raised in the market full of competition (Sriram et. al. 2015).
Maintaining strong customer base: To attract the customers for selling the fruits, salad and veggies
through e-commerce system by Leon’s Food Stores is important. The organization offers 24 hours
service availability to attract the customers towards the products that leads to increase in customer base.
Sales: More sales will be resulted with the use of e-commerce platform. The organization can simply
target the customers as no geographical boundaries are presented and connect the customers with
common platform (Sharma and Lijuan, 2014). To increase the revenue and sales, the e-commerce
marketing strategies can also be effectively implemented.
Digital payment procedure: Payment can be done using credit/debit card, cash on delivery etc by doing
online sales to the customers. It will save the cost of operations that can occur in cash collection and
processing cost. The refund procedure has also become easy with the application of e-commerce as it
will offer digital payment system.
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Unique selling point: E-commerce online system keeps the prices reasonable and same for everyone so
that customers did not face any biasness. The unique selling point of the Leon’s Food Stores involves
service and product quality (Gregory et. al. 2017).
Market analysis: In UK, retail market gives various opportunities to meet the growth and business
profits. The below listed figure has analyzed that the organization has opportunity in retail food stores.
Figure 2: UK retail store share
(Source: UK retail sales, 2018)
P3.2 Evaluate current e-Commerce systems in use by similar organizations (competitors)
There are various retail organizations in UK that effectively use the e-commerce online systems to
attract and generate the profits. In the current task, the current e-commerce system of ASDA is being
analyzed on the basis of various factors listed below:-
Payment system: ASDA is popular retail organization that deals in various products. Under e-
commerce system, organization offers various facilities in which one of them is online payment systems.
In this money remains secured and handling the cash is also reduced by the organizations. Thus, overall
it will raise the ASDA sales and profits. Liberal payment system will influence the customers towards
the online market of ASDA (Li and Karahanna, 2015).
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Services offered to the customers: online mails, direct marketing, discounting vouchers and coupon
codes are the base to offer the services to the customers. The feedback system service of the ASDA is
also beneficial as they consider both the positive and negative review of the product and then implement
it accordingly. A separate online team is kept for solving complaints and feedback in ASDA.
Website interface: It has attractive web interface and is simple to use the shopping cart by categories
and payment modes (Kim and Peterson, 2017). The e-commerce system is very useful in attracting the
customers and increasing the sales. It will also offer more sales, choices and alternatives so that best can
be purchased.
P3.3 Discuss the financial implications of e-Commerce solution
Leon’s Food Store has to take into account the financial implications so as to take the opportunities and
explore the strengths. The below are the following financial implications:-
Sales cost: The organization can lower down the cost of sales after executing the e-commerce system. In
this process the intermediary cost is reduced that supports in market development and growth of the
business. In concept of direct sale, the inventory storage cost is also saved as the demand generate the
product will be delivered hand to hand (Leeflang et. al. 2014). Overtime cost is also reduced by the labor
in this approach.
Startup cost: The start up cost is the need of the organization to implement the e-commerce system. The
financial implications relate to designing cost, website hosting cost and display interface cost. All the
cost must be necessarily considered along with security and maintenance cost especially.
Security cost: E-commerce system needs greater security because organization has details of the
customer’s and their personal information as well. Further, the need of security is important to meet the
customer trust and loyalty towards their purchases (Turban et. al. 2018).
Hardware and software maintenance cost: After implementation, it is necessary for the organization to
regularly update the software and hardware on the regular basis. The new version and system up-grades
are important as well. For organization, Although high cost is involved but it is necessary to incur as
well.
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P3.4 Design an ecommerce solution to enhance the business functions of your chosen organization
The three major points are to be considered in designing the websites of the organization which are as
follows:-
Sitemap: It refers to the list of links on the websites. The below presented is the sitemap for the Leon’s
Food Store London that includes all the potentials links to the users (Huang and Benyoucef, 2013). Easy
browsing of the website is possible through site map.
Figure 3: Site map for major pages
(Source: Author, 2018)
Storyboard: It provides the sequential pages or steps to meet the client’s requirements. It is important
for the individuals who did not have much knowledge related to online websites and purchases (Kamoun
and Halaweh, 2012). The below presented is the story board for Leon’s Food Store:
Search on Google: Leon’s Click on link or visit Select the product category
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Leon'sFoodStoreVegetablesPelledfruitandVegSaladRawReadymadeFruitFruitbasketsDriedfruitsHerbsandEggsCartMyordersMywishlistPendingordersSigninorregisterSigninRegister

Food Store http://www.leonsfruitshop.co.uk/
Select prodduct and add to
cart
Review the cart Feed details for shipping of the
products
For payment feed details Processing of the orders Confirmation of the order
Payment system: the organization can use the gateway system by creating the paypal account that
includes alternatives related to cash, card and net banking options. It gives the assistance for different
types of card and overlook that transactions are completed on time.
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Figure 4: Payment system for Leon's Fruit Store including authorising, authenticating and clearing
system
P3.5 Evaluate the suitability of the e-Commerce
The various suitability of the e-commerce is listed below:-
Site appearance: The loading time of the homepage must be less so as to avoid the situation of moving
to the next place for the customers. Moreover organizations must try it should not be more than
6seconds.
Site performances: clean and environmental friendly user interface must be developed in the mobile and
laptops (Mohapatra, 2013). The use of space must be properly done by the Leon’s Food Store so that
customer’s gets attracted towards the fresh and healthy fruits and salads.
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Time and cost: The e-commerce platform must be directly implemented with the use of different e-
commerce types. In the same way, the cost is also reduced with the support facilities with quick
integration of payment systems.
Site security: The certificate related to the security is to be presented on the website. The site
transactions are covered with data encryption to manage the security functions. The digital certificates
and password authentication are the means to ensure site security (Nilashi et. al. 2015).
Site legislative: The website includes several notifications in which policies and passwords are included.
On the websites the customers reviews and rights are presented along with this it also considers the local
legislative policies to reduce the conflicts and increase the user’s suitability.
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Conclusion
In the current study, the e-commerce system is applied in the business to increase the business
opportunities and market share of the exiting organizations operating in country. With considering the
need of present time of e-commerce system in Leon’s food stores, it is decided to implement the e-
commerce system. The benefits and impacts in the e-commerce system has been discussed and
presented in the report. By assessing the report, it had been analyzed that aims and objectives as well use
of the e-commerce system is very important. Some of the issues are also highlighted such as quality of
the product; risk connected with it has been reflected in the report. With support of secondary data
collection, positive impacts are analyzed and considering this the design is laid down for e-commerce in
the report.
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