Business Skills in E-commerce: A Case Study of Zodiac Lake Hotel

This report examines the core business functions, aims, and stakeholder relationships of Zodiac Lake Hotel, a new organization with limited web presence. It analyzes the impact and risks of introducing an e-commerce system, including its global impact on society. The report investigates market potential, evaluates competitor e-commerce systems, and designs an e-commerce solution to enhance the hotel's business functions. Finally, it evaluates the suitability of the proposed e-commerce solution.

BUSINESS SKILLS IN E-
COMMERCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
P1.1 Assess the core business function of Zodiac Lake Hotel....................................................2
P1.2 Business aims and their relations with the stakeholders.....................................................3
TASK 2............................................................................................................................................6
P2.1 analyze the impact, including the risks, of introducing an e-Commerce system to an
organization.................................................................................................................................6
P2.2 Global impact of e-commerce on society in Zodiac Lake Hotel.........................................8
TASK 3..........................................................................................................................................10
P3.1 Investigate market potential for an e-commerce opportunity............................................10
P3.2 Evaluate current e-commerce system in use by the competitors organizations................11
P3.3 Financial Implications of an e-Commerce solution...........................................................12
P3.4 Design an ecommerce solution to enhance the business functions of your chosen
organization...............................................................................................................................13
P3.5 Evaluate the suitability of the e-Commerce solution which you have designed in task 3.4.
...................................................................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

LIST OF FIGURES
Figure 1: Role of MIS in business...................................................................................................3
Figure 2: 24/7 trading services........................................................................................................7
Figure 3: Online booking process in hotel.....................................................................................12
Figure 4: Site map of hotel Zodiac................................................................................................15
Figure 5: Additional services provided by Zodiac Lake hotel......................................................15
Figure 6: Storyboard of website....................................................................................................16
Figure 7: Select room category......................................................................................................16
Figure 8: Details of services provided in hotel..............................................................................17
Figure 9: Other stay related information.......................................................................................17
Figure 10: Why to stay here?.........................................................................................................18

INTRODUCTION
An e-commerce is the commercial transaction that takes place through internet only. It refers to
the selling and buying of the product or services online by transferring the funds and data
through internet connection. In the current case, Zodiac Lake hotel is the newly organisation in
travel and tourism industry and has limited web presence. Therefore, the organisation is thinking
to explore the business using e-commerce solutions. In the study, the report will list the aims and
objectives, business functions of the hotel together with its in relation with every type of
stakeholders. The next impacts on society and business will be evaluated with listing some of the
risk as well in developing the e-commerce solutions. At the end of the report, the study will brief
about the e-commerce opportunities, current e-commerce system of competitor, financial
implications, designing of e-commerce platform and giving suitability opinions for the new
design implemented for Zodiac Lake Hotel.
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TASK 1
P1.1 Assess the core business function of Zodiac Lake Hotel
Zodiac Lake Hotel is the organisation that currently has only web pages that gives the
prospective customers information related to the visits etc but it does not involve payments,
bookings and other options. This shows that organisation has limited web presence and it does
not have big internet platform for e-commerce. Its core business functions include the necessary
service that is needed to the travellers or customers. The significant functions are given below:-
Accounting: In the business consistency, accounting is also a crucial function. It involves
transactions that are needed financially to be recorded. The daily transaction includes salary,
regular expenses, investment, capital expenditure etc. The financial health and business
prosperity is known from the accounting information (Yeoh and Popovič, 2016). Managerial
accounting is also crucial feature that take into account internal and cost accounting
management. The business worth is valued on the basis of past records and information is done
in financial accounting.
Sales and marketing: The business sales are majorly based on the function of marketing. The
main objective of sales is to create more bookings from the visitors for accommodation and this
can be done through attractive marketing that offer coupon vouchers or discounting code etc.
The marketing main purpose is to achieve the better experience and perspectives of the
customers and creating the effective channel of communication to raise the services.
Management information system (MIS): Prior the information is related to the hotel is tracked
manually but currently in global world the information is recorded through the digital database
that stores the information automatically and manages it efficiently. The report generation
becomes faster by the executive and can be presented quickly to the respective departments
directly online (Ulrich and Dulebohn, 2015). It also helps in getting the feedbacks in easy
manner by MIS support.
2

Figure 1: Role of MIS in business
(Source: MIS functioning, 2018)
Operations and administration: Every organisation operational and administrative function must
be clear and concise and especially in case of hotel business. Operations relate to cost
minimisation and administration relates function improvement. Administration function also
manages the resources so that hotel objectives are achieved. Moreover, business operations and
decision making includes both operational and administrative functions (Lozano, 2015).
Operations major advantage is that it also includes health and safety management issues related
to everyone involved in the hotel operations to ensure efficiency and health of the employees.
P1.2 Business aims and their relations with the stakeholders
The main objective of Zodiac Lake Hotel is to earn the revenue and build the brand image with
managing the quality. The organisation runs in the free trade economy where no restrictions are
imposed on government and their involvement is also very rare. The owner also needs to deploy
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the funds for investment and it can be arranged through government subsidies and banks. In
hotel, the stakeholders are important for the business and their determination as well before
knowing their interdependency on businesses. Internal and external stakeholders are basically
concerned with the hotel business (Lawrence and Weber, 2014). They have such power that they
get impacted and can also impact using their authorities and ruling in business.
Moreover to have the correct analysis on the business targets and aims and its relation with
stakeholder, stakeholder analysis is important.
External stakeholders:-
Government: This stakeholder is basically overseen the laws and regulations on the hotel
businesses. The organisation should necessarily follow the government laws in order to have
efficiently running. A good tax planner and advisor can be hired for this function as well.
Shareholders: These are the individuals that supports and invest their funds to the business. Their
main task is to concentrates on investment returns and equality in business (Lozano, 2015).
Customers: These individuals deal with the services of the hotel and their main focus is on the
quality customer services at the best reasonable prices that they can get.
Internal stakeholders:-
Employees: The human asset of the organisation is employees and their main purpose is that they
get regular incentives, promotions and health and safety environment.
Directors or trustees: The entire business functioning and operations are based and run by these
individuals. The most important is to have evaluation of activities that relates to corporate social
responsibility.
As the purpose of the business is to explore the business with giving effective services, the
advices of the stakeholders are important. The hotel business is to be based on reliability and
fairness related to the stakeholders. The worth and value of the business will only be enhanced
when role of every stakeholder is equally valued and measured. Higher brand and good
reputation in the travel and tourism is important to create the good relationship (Miller et.al.
2014). Hotel main objective is to create the e-commerce platform for their online services and
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increase the sales. The purpose is to have influencing website and attractive web pages to give
the customer attractive services for online bookings. The positive relations will result into good
effective decision making with involving all stakeholders in business.
5

TASK 2
P2.1 analyze the impact, including the risks, of introducing an e-Commerce system to an
organization
Getting into the hotel business to the e-commerce is the big task for the hotel management as it
includes numerous risks. But the development of e-commerce will bring the business operations
more flexibility, comfort and convenience. The positive influences for e-commerce platform
introduction are as follows:-
Pricing opportunities: With the introduction of e-commerce, the operation and management
costs are reduced as the internet is cheap medium to serve effective services to the customers.
Further the web outlet can take the advantage of fluid prices by lowering and increasing the same
(Turban et.al. 2017). The other advantage is that the hotel receives advance booking money
through online sales. Moreover, pricing opportunities are more benefitted in online services.
Low cost start-up and running cost: The infrastructure cost has been reduced with the upcoming
of online outlet such as the requirement of physical outlet has been eliminated to some extent
that reduces the major expenses. The funds will be invested in online web development in
designing and implementing the same. Zodiac lake Hotel can also effectively manage the
payments and booking orders using their web store database.
24/7 trading: The major positive impact of online e-commerce platform includes the services that
are available all time (Sharma and Lijuan, 2015). This is return receives customer comfort and
creates trust worthy relationship.
6

Figure 2: 24/7 trading services
(Source: benefit of e-commerce, 2018)
New market opportunities and models: The traditional methods such as magazines and
advertisement in newspaper were used but currently e-commerce marketing model has to be
introduced. The application of social media marketing is used widely to create the new
marketing opportunities to influence the customers.
Global marketplace: For every type of organisation to attract the customer, the huge market is
important. The global marketplace allows customers to access the large variety of options in
purchasing or using the services (Cascio, 2018). The hotel can even enhance the business
through online platform that influences the global workplace in the positive way and raises the
revenue and sales.
Risk issues in e-commerce introduction are as follows:-
Issues related to security: Security can be related to the hackers, viruses and frauds therefore to
overcome the same it is necessary to have the firewall or other security measures. As hacking is
done frequently, the security ways and measures is must.
Customer trust: Trust worthy and loyalty services are to be provided by the organisation
especially in case of online services. Especially if the case of online services, the trust is very
important as the cases of fraud and manipulation are increasing (Hopkin, 2017). Hence, in this
situation, meeting the physical touch is more important as compare to virtual trust.
Legislation: The laws and regulations related to customer safety and security and their personal
information that has more chances of misuse. Therefore the businesses must be effective enough
and use the regulation where necessary.
Financial implications
In introducing the e-commerce system, the hotel is required to invest the funds on the same for
implementation. The cost of development involves web hosting, security, connectivity, planning
and audit cost, hardware devices cost and consistent maintenance cost as well.
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P2.2 Global impact of e-commerce on society in Zodiac Lake Hotel
The introduction of e-commerce will have global impact in respect of both i.e. positive as well as
negative on society are as follows:-
Global market: Tourism organisation business needs to be necessary online services provider as
the customer decides their bookings on the basis of accessing first to the internet. Thus, global
services are must as pre bookings are to be done necessarily.
Customer services: Today in competitive environment, the needs of the customers are at the top
priority. Therefore to fulfil it customer services are at top priority. Through online customer
queries and feedbacks are received and solved instantly. A good customer services can result the
hotel in getting the trust and long term retention of the customers (Ferraro and Briody, 2017).
The use of good tool will make the customer services more effective and affordable.
Marketing: Cheap marketing is only done with the use of e-commerce internet platform.
Currently the use of social media by the society is done at great scale and it had changes the way
of conducting the business. The scale of business can also be carried out by marketing.
Price alternatives: An e-commerce site offers the variety of alternatives option in comparison
with the cost, price and quality. This system allows the society to have glance at prices and
brands at one common platform and buy as per their choices (Turban et.al. 2015).
Pre-order system: Prior ordering is allowed only through internet. The orders are placed for the
booking of hotel rooms and their services according to their requirement. Thus it also provides
benefits to both the parties involved in transaction.
Market research for newer business: By cutting the cost of physical infrastructure the business
can use that fund in the new business. The common man can also formulate their business online
and the market research is to be done. This is possible also through online articles or journals etc.
Additional services can also be introduced by Zodiac Lake Hotel using internet.
New product design: New design of the product can be displayed on online channel to know the
responses and actions of the common global public (Da Costa, 2016). The customer base and
services can be raised as new designs are almost accepted by every customer.
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Advertisement: Advertisement of the services and products can be done through various medium
but the most common among them is internet. The use of television is also done as well to show
the advertisement of hotel with reflecting its common functionalities.
The negative influences on the society include unemployment at large scale, security issues and
returns and complaints and delivery issues as well. While the positive influences are more in
using internet marketing such as convenience and all time availability.
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TASK 3
P3.1 Investigate market potential for an e-commerce opportunity
Market potential commonly refers to market total size for the services and goods at the particular
time. It is generally measured through the sales volume or sale value for the market. Determining
the market potential is the big marketing procedure and needs huge investment in marketing and
research.
Market analysis: It refers to the analysis of market influences and complexities in the business
evaluation. With analysing the market, hotel Zodiac can also identify the strength, opportunities,
weaknesses and threats.
Market types: e-commerce includes basically four types of market i.e. business to business,
consumers to consumers, business to consumers and consumer to business (Sharma and Lijuan,
2014). The type of the business is decided on the basis of the customer base the organisation
includes.
Market size: Volume of the business is considered in the market size of the hotel business. The
individual’s who have the potential to sale and buy product is also involved in the market size of
the business. Prior to introduction of new services the organisation first needs to identify the
market size and customer base as well.
Distribution channels: It is activity from which the goods are transferred from seller to buyer. In
between all the services must be included to make the safety parcel of products to the customer
end. In this case, normally big organisation hires the transportation facilities to the third party.
Growth rate: it is percentage rate at which the growth of the business is expected. The retail
service sector growth rate is increasing at large scale i.e. around 8.7% worldwide.
Strength in customer: Customer strength to the organisation is received only when the customer
makes frequent purchases and the business is earning trust and revenue. The behaviour and past
experience is being the character of the customer strength for the hotel (Choshin and Ghaffari,
2017).
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Level of competition: The competition level can be measured when there many firms involves in
the same business so that ranking can be done. The market structure is analysed with respect to
the number it includes.
Structure of cost: The structure includes both fixed and variable cost as well. Thus in case of e-
commerce platform both the costs are important as software and transaction running needs daily
maintenance and updates (Sriram et.al. 2015).
Strengths and weaknesses: The strength can be said as positive and weaknesses can said as
negative impacts in context with internal and external environment of business. The strength for
the hotel can be easy accessibility and weaknesses can be security issues in regard with e-
commerce development.
P3.2 Evaluate current e-commerce system in use by the competitors organizations
Hotel is required to develop the e-commerce system and to utilise its benefits for the business to
achieve competitive advantage. The below are the following points that competitors business
uses are as follows:-
Payments: The competitor organisation for booking of hotel room gives the variety of payment
options such as credit card, debit card, cash on delivery or Paypal account. In this option the
payment function is easily managed as the funds are directly transferred to the organisation bank
account that reduces of barrier of cheque or money orders etc (Galliers and Leidner, 2014). The
Zodiac Lake hotel should consider payment option effectively.
Information sharing and communication: The competitor hotel provides the correct and
relevant information at the customer end. This support in creating the trust for the services of
hotel and add to the building of brand value. Offering good communication medium is also
necessary to have longer retention of customer for hotel services. Direct mail, visiting and
departure time are send to the customers by the competitor organisation.
Order processing: In this the customer can directly buy the product or acquire services from the
service provider. The product selection is based on the time of delivery and services of the
organisation along with overlooking the payment option as well before initiating the ordering
process (Akter and Wamba, 2016).
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Figure 3: Online booking process in hotel
(Source: Order processing in hotels, 2018)
Customer services: Competitor organisation gives the effective customer service so as to attract
the big percentage of customers. It result into useful growth and business development and
employees will solve the problems so that trust and loyalty can be created.
Marketing and promotion: Competitor hotel uses high promotion and marketing channels to
advertise their services. The use of discounting coupon code etc is used to develop the traffic on
the organisation website (Turban et.al. 2015). The same can be done by Zodiac lake Hotel as
well to influence the customers towards their services by offering suitable options.
P3.3 Financial Implications of an e-Commerce solution
The main objective of the organisation is to attract more and more customers and information
sharing as possible through the online platform. The number of financial implication that the
Zodiac Lake hotel has to face is mobile app, security, marketing, staff training, distribution
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channel, payment and market research. These are the number of compulsory cost that the hotel
has to spend to carry out the e-commerce solutions (Leeflang et.al. 2014). Distribution and
logistics is necessary as the online products are to be transferred at the desk of customers. It also
includes postage cost as well. Training includes job training so that they can provide friendly
treatment to the customer at the hotel and gives them comfort.
The introduction of app will give them everything that the customer needs though it is costly but
is the useful financial implication. For the marketing purpose, the plans and policies are to be
laid down. It is important to attract the large number of global customer. The payment approach
also include financial impact as the start up cost it very high. The security implications means
purchase of security software or licensing, software viruses etc are to be analysed in e-commerce
solutions (Turban et.al. 2018). At last, market research is also important to know the customer
preferences and perspectives for the hotel services and accommodation facilities so that future
improvements can be done.
P3.4 Design an ecommerce solution to enhance the business functions of your chosen
organization
E-commerce is the technique by which the business can be promoted and the activities can be
influenced in different areas to people who cannot approach physically. The design of the
organization’s business must be according to the requirements of the customers and the system
must operate in digital sense. E-commerce in the business facilitates the selling and purchasing
of the products and accepting the online payment method. Effective communication and
description of the product is another facility provided by the e-commerce in the business and this
will effectively enhance the trading of the goods and the services in the market (Gupta and
Shakya, 2015). Zodiac Lake Hotel provides the e-commerce facility to the customers and the
design is implemented which provides details on the website of the organization.
Website and technology
The organization selects the methods which are easily accessible by the customers through
online mode and the transaction of bookings and payment is successfully completed. The
customers do not suffer at the time of payment and they can easily reach the site of the hotel with
all the details and facilities description.
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Customer communication system
The e-commerce system will provide effective communication system between the server and
the customer who is in demand of the information. The business follows the strategies of the
easy and reliable services for attracting more customers. The information like contact number,
address, email and queries is supported by the server of the organization.
Customer attainment
The selling and distribution of the product is facilitated by the organization Zodiac Lake Hotel
with the assistance of services provided by advertising agencies and different sites. For example,
Google Ad facilitates the advertisement of the product and services on the portal.
Trust and involvement
The involvement of the customers is successful when the trust of the customer is achieved by the
organization. The server will provide all the all necessary information to the customer and will in
return achieve the trust and confidence of the customers. The two methods for obtaining trust and
involvement of the customers are offers and discounts (Das, 2017).
Tools and software
The selection of the tools and the software’s is the difficult process as this involves the cost and
expenses. The organization can develop the format for the utilisation of the time and cost for the
activities.
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Figure 4: Site map of hotel Zodiac
Figure 5: Additional services provided by Zodiac Lake hotel
15

Figure 6: Storyboard of website
Figure 7: Select room category
16

Figure 8: Details of services provided in hotel
Figure 9: Other stay related information
17

Figure 10: Why to stay here?
P3.5 Evaluate the suitability of the e-Commerce solution which you have designed in task 3.4.
Zodiac Lake Hotel can use the facility of the e-commerce for effective functioning of the
organization in the online trading system. E-commerce will provide facility to the organization
for appropriate methods of the communication (Padberg, 2015). The organization must evaluate
and observe the working of the servers and the control facilities provided by the server for
protecting the privacy of the customers in online payment and booking system. The server will
display all the information on the websites which will help the customers to identify the facilities
and the services provided by the organization. The website on e-commerce provides the details
and the price category which will make the process easy for the customers in choosing the type
of the rooms and facilities.
The designing of the management information system should be according to the services and
activities of the organization. The e-commerce will facilitate the combination of the various
services for the customers benefit like security of the passwords in case of online payments,
supply of the best quality products and effective cost allocation to different services and
products. The performance of the organization will be judged on the basis of the services
provided and the implementation of the changes on the basis of the feedbacks obtained from the
customers. Web services are the fastest medium for observing the services of the organizations.
Zodiac Lake Hotel can access the market and the potential customers through the queries asked
by the customers on the server and on through online portal. The confidential data and the
information can be secured by the organization on the server with the help of the security system.
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The security system will help to attract more customers towards the services of the organization
and in managing the online services. The customers will feel secure as the data will be encrypted
and their personal data is not transferred anywhere by the organization (Xiong, 2015). The
organization can maintain effective communication with the customers by designing proper
websites and server for proper communication through agents and employees.
The organization must use the tools and the software’s which are updated and secured with the
security codes. The use of the tools and software will decide the cost and expenses on their
maintenance and this will become a big concern for the organization. The tools and technology
used must be flexible for providing the web services. The software must be efficient in accepting
the online payments and in achieving the goals of the Zodiac Lake Hotel.
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CONCLUSION
In the current study, the report had taken the Zodiac Lake hotel as it is the newly business and
has limited access of web presence. The study had given the brief on core functions, aims and its
relations with internal and external stakeholders of Zodiac Lake hotel. The report had assessed
the impacts and risks as well with giving global impact on society by e-commerce. Further, the
study concluded about the e-commerce opportunity by assessing market potentials. Competitor’s
e-commerce system had been discussed on the basis of few points and design had been laid out
for the current hotel business for e-commerce. At last, the suitability of e-commerce is also
highlighted in the report.
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