E-commerce Business Skills, Risks, and Implementation at Hotel

This report assesses the core business functions of Zodiac Lake Hotel and analyzes the impact, including risks, of introducing an e-commerce system. It investigates market potential, evaluates competitor e-commerce systems, and examines the financial implications of e-commerce solutions. The report designs and evaluates a suitable e-commerce solution to enhance business functions, considering aspects like pricing opportunities, cost reduction, 24/7 trading, and global market access. It also addresses security issues, customer trust, and legislative concerns related to e-commerce implementation, further discussing the global impact on society including customer service improvements and marketing strategies. The document is available on Desklib, a platform offering study tools and solved assignments for students.

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.
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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.
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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.
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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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