INFT6500 - Economic Feasibility Study of Maria’s Aquarium Outlets

This report presents an economic feasibility study for Maria's Aquarium, a business seeking to expand its retail operations. The study identifies problems such as outdated pricing, manual sales recording, and payroll inefficiencies. It proposes solutions including enhancing online presence, implementing inventory control systems, generating online invoices, updating price databases, and streamlining payroll processing. A cost-benefit analysis estimates the costs of implementing automated systems and hiring new staff, projecting a potential 50% increase in annual income and a net profit of $100,000 or more. The report also addresses potential security risks and recommends continuous security updates and employee training. The conclusion emphasizes the importance of the study in assessing the organization's growth possibilities, providing recommendations for smooth functioning and sustainability.

Running head: FEASIBILITY STUDY OF MARIA’S AQUARIUM
FEASIBILITY STUDY OF MARIA’S AQUARIUM
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1FEASIBILITY STUDY OF MARIA’S AQUARIUM
Table of Contents
Introduction......................................................................................................................................2
Business case...................................................................................................................................2
Findings.......................................................................................................................................3
Alternative Solutions.......................................................................................................................3
Cost Benefit Analysis......................................................................................................................4
Overall cost:.................................................................................................................................4
Cost monetary value:...................................................................................................................4
Overall benefit:............................................................................................................................4
Risks Analysis.............................................................................................................................5
Recommendations........................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

2FEASIBILITY STUDY OF MARIA’S AQUARIUM
Introduction
The economic feasibility is an important component in order to develop a business and assure its
sustainability. The feasibility study assure the credibility of the venture or the company
(Baporikar, 2015).Here the feasibility study is done for a company Maria’s Aquarium named
after the owner Maria who had a hobby for collecting different types of fishes (both tropical and
cold) with the increase in the numbers and the variety of fishes which have been a successful
venture for more than 25 years. They have driven attention of a large number of people which in
turned helped the organization to flourish more and more.
Business case.
Identification of the problem.
The company already have a head quarter in Central Coast and retail outlets from where the
company serves its customer.as per the demand of the clients the company wants to open three
more retail outlets in East and North West coast. The company is flourishing in a slow pace and
in order to secure the overall sustainability of the company. The company needs to take some

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necessary action. The sole market research will be time consuming and this would make the
growth stagnant.
Findings
 The company’s prices might not be up to date because of new product launches and there
are chances that company incur great loss because the price are out of date.
 During the sale, the salesperson collect all payments and the sale details are recorded in
daily registry manually. Each sale has their own stock card. There are high chances of
losing one of the cards and this could lead to miscalculation which in turn can lead to
expensive losses to the organization.
 The company can incur problems in calculating the time sheets for the payroll and there
could be high chances of errors like double entering, negligence of leaves.
Alternative Solutions
As per the case study and the analysis shows there are certain solution that is needed to
implement the solution (Bayne,2017).
1. Ensuring return business from the customers: the company needs to have some social
network expertise. The company should have online exposure for advertisement which
would aid in bringing more customers. They can set up site visits in order to let people
know about the organization.
2. Stock control: The management of the stocks can be done by installing different
inventory control systems which have computerized database that can quickly update the
stock orders, the stock cards, and sales through inventory information systems. The
examples of these stock management systems are Bright pearl, seller cloud.

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3. Generate invoice system: The Company rather than creating stock cards should generate
online invoice system (Reid, 2018).
4. Price book fixing:
The updated online database can help to update the price from time to time and also give
a status about the any reduction like discounts availability.
5. Pay roll processing: The online linking of salary accounts through biometric verification
can help the company to ease the hassle of payments of the salary to the employees.
Cost Benefit Analysis
The company need to have a brief idea about the overall cost and the benefits that can be gained
as payback of the recommended actions(Rodriguez et al.2016).
Overall cost:
Installation of the automated systems will be highly expensive at the first place for the
organization, the automated systems and upgraded software with security framework to their
system. Hiring a new team to handle the cost.
Cost monetary value:
The overall cost for implementation of the overall installation and hiring the new team on each
outlet will cost up to 5000 dollars.
Overall benefit:
Through the idea proposed, the annual income of company can increase up to 50 percent from
the investment that is done over up gradation of the computer software and maintenance team.
The net profit can reach up to 100,000 dollars and even more.

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Risks Analysis
There are cases of threats faced in an organization due to lack of security frame work. This
could cause a huge lose to the company and also to the clients. The data breach, the malware are
few major threats that an organization can face.
Recommendations
The system that is implemented can be vulnerable if the security framework is not
updated from time to time. A separate team will look after the IT related procedure in order to
assure that there is no security threats to the company. The employees must be given proper
training before the implementation of any technology (Shazad et al. 2017) .
Conclusion
The report concludes with the economic feasibility study of the organization. The
organization that was taken into account was Maria’s Aquarium. The report is classified in the
business case and the cost analysis to give an overview of the possibilities of growth of the
organization .The business section deals with the identification of the problem, and solution. The
cost benefit analysis deals with the overall cost incurred to implement those solution. The report
comprises of risk analysis as well as recommendation for the smooth functioning of the
organization.

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References
Baporikar, N. (2015). Information Strategy as Enabler of Competitive Advantage. In Economics:
Concepts, Methodologies, Tools, and Applications (pp. 599-610). IGI Global.
Bayne, N. (2017). Current Challenges to Economic Diplomacy. In The New Economic
Diplomacy: Decision Making and Negotiation in International Economic Relations (pp.
97-116). Routledge.
Reid, K. (2018). Economic outlook.
Rodríguez, L. R., Lissén, J. M. S., Ramos, J. S., Jara, E. Á. R., & Domínguez, S. Á. (2016).
Analysis of the economic feasibility and reduction of a building’s energy consumption
and emissions when integrating hybrid solar thermal/PV/micro-CHP systems. Applied
Energy, 165, 828-838.
Rodrik, D. (2014). The past, present, and future of economic growth. Challenge, 57(3), 5-39.
Shahzad, M. K., Zahid, A., ur Rashid, T., Rehan, M. A., Ali, M., & Ahmad, M. (2017). Techno-
economic feasibility analysis of a solar-biomass off grid system for the electrification of
remote rural areas in Pakistan using HOMER software. Renewable energy, 106, 264-273.

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