MGMT20132 Innovation and Sustainable Business Development Report

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MGMT20132 INNOVATION AND
SUSTAINABLE BUSINESS
DEVELOPMENT

Contents
Executive Summary....................................................................................................................3
Part 1 Problem Faced by eBay....................................................................................................4
1.1 Background.................................................................................................................4
1.2 Definition of Problem.................................................................................................4
1.3 Evidence of Problem...................................................................................................4
1.4 Timing Consideration.................................................................................................4
1.5 Consideration of the Broader Context........................................................................4
Part 2 Benefits.............................................................................................................................5
2.1 Benefits to be delivered..............................................................................................5
2.2 Importance of the benefits to Government.................................................................5
2.3 Evidence of benefit deliver.........................................................................................5
2.4 Interdependencies.......................................................................................................6
Part 3 Strategic response.............................................................................................................7
3.1 Method and criteria..................................................................................................7
3.2 Strategic options analysis.........................................................................................7
3.2.1 Strategic interventions.....................................................................................................7
3.2.2 Strategic options..............................................................................................................7
3.3 Strategic options......................................................................................................7
Part 4 Project options analysis....................................................................................................8
4.1 Project options considered.....................................................................................8
4.2 Social impacts........................................................................................................8
4.3 Environmental impacts...........................................................................................8
4.4 Economic impacts..................................................................................................8
4.5 Financial analysis...................................................................................................9
4.6 Risk comparison.....................................................................................................9
Part 5: Deliverability of financial recommended solution........................................................10
5.1 Details of recommended solution.............................................................................10
5.2 Commercial and........................................................................................................10
5.3 Management..............................................................................................................10
5.4 Delivery.....................................................................................................................10

Executive Summary
eBay is an American based e-commerce company. eBay is the largest company in the world
nowadays for developing their business online. It was founded by Pierre Omidyar Iranian
programmer in 1995.
It was analyzed that eBay is facing a problem at the time of selling the products. The customers
are doing fraud with eBay because of which the will is bearing lose in business. This has become
the major challenge that has been faced by the company. This report tells the challenges faced by
eBay and their ways to overcome those challenges.

Part 1 Problem Faced by eBay
The biggest problem that has come to know from the eBay is “Fraudulent Buyers”. From
research, it is concluded that there are a lot of customers who are doing fraud with the company
because of which the company is bearing the loss. This is because of the policies of the
company. Some customers are using it in a positive way and some are in negative.
1.1 Background
eBay is a multinational e-commerce corporation American company based in California that
allows customer to customer and business to customer sales through its website. The company
manages its website through which the people and commerce do business by advertising and
exchange the different verity of products. The website provides free access to the consumer but
from sellers they charge some amount for listing their products online. They provide some
amount of free listing for the sellers but after that, they charge.
Fraudulent Buyer is the most common problem (Iwamoto, 2018) faced nowadays by online
sellers. Crooked people are taking orders online and thus making fast dough on the seller’s
disbursement.
1.2 Definition of the Problem
Fraudulent buyers mean the unethical action taken by the customers after making a purchase.
These actions cause loss to the seller and have no penalty on the purchaser. The sellers have
become very choral regarding this problem by expressing their concern of being embittered.
1.3 Evidence of the Problem
There are many evidence of the problem that it faced by the company. Customers usually say
that they haven't received the product in-fact the product get delivered to them. They also file
that return of the product or says that the product delivered to them are not as defined. The
company than identify such buyers and make them ban to buy the products from eBay.
1.4 Timing Consideration
This problem should be solved as soon as possible because it causes a lot of problem to the
seller. The sellers have to tolerate a lot of (Donnellon, 2013) loss because of such buyer. Some of
the buyers even stop selling which cause the problem to the eBay as well. If this problem will get
solve timely then the eBay and the seller both will have a good amount of profit.
1.5 Consideration of the Broader Context
There is a very urgent need to solve this problem with the help of any anti-fraudulent tool. This
tool will prevent fraud by doing complete research on the issue raised by the customer and after
that, they should take any action.

Part 2 Benefits
The main objective of eBay is to get rid of fraudulent buyers. The main growth of the eBay
depends on its buyers and seller. The company is growing from last many years but now due to
increasing fraudulent buyers, the company is (Cai & Zhu, 2016) bearing the loss. After knowing
about all these frauds eBay needs to take some strict actions and should develop something
which will stop these frauds. eBay can use fraud protection service to overcome this issue.
2.1 Benefits to be delivered
There are many benefits to implementing a fraud protection service. When eBay will implement
this then he will see that the fraud in the company will reduce a lot and thus the seller will free to
sell on eBay without any fear fraud. This will increase the profit of the seller and the eBay as
well; the profit will increase to per cent. Fraud protection service has many benefits which will
be discussed in the following report.
2.2 Importance of the benefits to Government
The fraud protection service will increase the efficiency of management in the eBay company.
PayPal's Fraud protection service offers burly refuge that will avoid fraudulent transactions.
PayPal offers the two type of fraud package i.e.,
 Basic Fraud Protection: In this security package the designing is done for merchants
that deals with the low transaction volumes or less need very less management.
 Advanced Fraud Protection: This is for the merchants that have a very high need for
security with mid to high-level transaction (Zakaria, et. al., 2016) volumes. Will
purchasing fraud protection services, the merchant can also buy the following two
services:
 Buyer Authentication: It amalgamates visa's and master's card protected calls to
the PayPal hosted Payflow services. These services endorse buyer s to provide a
password of their card issuer before allowing to executing a credit card purchase.
 Account Monitoring: For the unauthorized use of Payflow account, the premium
protection is provided. It includes monitoring of transaction by the trained
security professionals of the PayPal, for the suspicious account event it provides a
protective notification and provides a call-in number to the sanctuary diplomat for
discussing and investigating distrustful description motion.
2.3 Evidence of benefit delivery
eBay always make sure that all the customers should be satisfied by making sure that there is no
fraud on their website. eBay is used as a fraud protection service to make a fraud-free
transaction. With the help of this technique (Bluestone, et. al., 2013) all the sellers are happy as
now they don't have to bear the loss from the fraud and in future also eBay will use this
technique to maintain a flow of fraud-free sale.

2.4 Interdependencies
The main interdependencies as per the project report are tracked delivery, returns abuse and in
closing.

Part 3 Strategic response
The main intention of eBay is to improve the Fraud protection which will help in reducing the
fraud done in the eBay by the buyers. The secure transactions, delivery of the product, and
refund abuse all these come under this policy. For reducing all these things eBay has to develop
innovative strategies which will give the result in less fraud and thus less lose in the business
3.1 Method and criteria
To determine the way of fraud done by the buyer in eBay, the business report has invented some
specific interventions which will positively impact (Montague, 2012) the fraud and will
absolutely help in overcoming such troubles in an effectual manner. A few of the intervention
methods are defined below:
3.2 Strategic options analysis
3.2.1 Strategic interventions
Strategic Interventions
Intervention 1- Track Delivery Interventions
Intervention 2- Closing Interventions
Intervention 3- Return Abuse Interventions
Intervention 4- Signature & Contact number at the time of Delivery Interventions
These inventions will help in developing a fraud-free environment by implementing all these
techniques in the business.
3.2.2 Strategic options
The strategic interventions defined in the above study will give a positive result in the company.
The above techniques will tell how the (Cai & Zhu, 2016) fraud is done in the company and how
to prevent that. Mainly there are two ways which tell how the fraud is done:
 Item not received
 Refund abuse
3.3 Strategic options
This report suggests implementing the fraud protection service and updating the existing anti-
fraud techniques for a better result in the company.

Part 4 Project options analysis
The focus of the project is to upgrade the techniques of anti-fraud. eBay wants to stop the fraud
that is happing in their company. eBay can analyze many different techniques and ways to stop
the fraud which can be used worldwide (Zakaria, et. al., 2016) by the sellers.
eBay can implement the innovate idea like fraud protection service which is one of the top best
way to stop the fraud as now it will secure all the data.
4.1 Project options considered
The above-defined ways can be used in the eBay. eBay can use any method for enhancing the
anti-fraud that will lead to a positive result and will give an innovative idea for the company.
The anti-fraud system will help in reducing the fraud in the (Cai & Zhu, 2016) company done by
the buyer. The anti-fraud system will ask the customer to make a video will un-boxing the order
so that the customer could not file an empty box issue. It also tracks the delivery the order of the
product in the case in the customer says they didn't have received the parcel.
Analyze the way of fraud: Analyze the form which the customer has made the fraud. Check
that the customer has filed which issue from (Zakaria, et. al., 2016) the following things:
 Order not received
 Empty box
 Product not as defined
 Damage product
Get the realistic data: It might be possible that the issue filled is correct may be really the buyer
is suffering from that issue. So make sure that the issue filled is realistic.
4.2 Social impacts
The report contributes in enhancing the growth of the eBay by implementing anti-fraud with the
help of fraud protection service and some other source which will provide safety to the sellers as
well as social and aware people about (Goswami, et. al., 2017) the that is happing so that they
should get aware and get safe from the lose.
4.3 Environmental impacts
 It is very important to improve a better environmental condition which is only possible by
overcoming such issues and implementing some innovative ideas in the context of
securing the deal done between the buyer and the seller. When there will be no fraud then
the seller will be more comfortable in selling online.

4.4 Economic impacts
Improved technologies and effective data will help the eBay in creating a better economic
circumstance of the eBay in the market and it also augments the sustainability for a long term of
time.
4.5 Financial analysis
In completing this project an approximate amount of $30000 which consist of all the procedures
and activities like accomplishment, development (Zamula & Prumak, 2016) scrutiny, technical
tackle and thoughts process.
4.6 Risk comparison
Every project has some risk which causes the failure of the project. There might be a chance that
after implementing the fraud protection service still, the frauds are happing. Failure of the system
can cause a huge amount of loss to the company.
Business Model Canvas
The business model image helps in focusing on the commerce deliverables as per the Froude
protect system. This will very provide various (Sort & Nielsen, 2018) security to the buyers and
help in developing a better business environment i.e., fraud-free.
Key Partners
StubHub
Shopping.com
Half.com
Rent.com
Payment
Partnerships
PayPal
Bill Me Later
Key activities
Marketing
The Platform
Value
proposition
Buyer
Seller
Customer relationship
Provide security to
customers
Enhance quality in
services
Provide best quality of
product
Customer
segments
Buyer
Sellers Groups
Key resources
Physical
Human
Intellectual
Channels
Cost Structure Revenue Streams

Sales and marketing
Product development
General and administrative
Net Transaction Revenue
Marketing Service

Financial structure
The best financial structure is based on the implementation of Fraud (Pham, 2014) Protection
systems:
Task Description Amount in AUD
System implementation $ 100,000
Final system
development cost
$ 30,000
Enhancing existing data
system techniques
$ 90,000
Technical specification $ 40,000
Training to employees $ 65,0000
Server installation $ 55,000

Part 5: Deliverability of financial recommended solution
5.1 Details of the recommended solution
The manager of the product should not develop any needless approach at the time of execution of
a fraud protection system which can cost high to eBay. The goal of the project manager should
be set and he should focus on that only.
5.2 Commercial and financial
The focus of the manager should be only on fraud project management through which a better
result can come. The analyze should be cost effective and should fulfil all the needs.