Melbourne's VTI Group: E-Commerce Strategy and Implementation

This report presents an e-commerce strategy for VTI Group, a Melbourne-based company, aiming to establish an online sales channel. It begins with a project proposal, outlining resource requirements (human and physical), strategic plans for acquiring these resources, and a timeline for implementation. The proposal emphasizes the need for skilled personnel, appropriate infrastructure, and communication strategies. The report then details a performance monitoring plan, including budgetary and financial performance, productivity, employee performance, and resource utilization. It also identifies potential risks associated with e-commerce implementation and proposes contingency plans. Finally, the report offers recommendations to improve operational performance, incorporating key information on e-commerce implementation and its benefits for the company and its customers. The report is a comprehensive guide for VTI Group's transition to e-commerce, covering all critical aspects of planning, implementation, and performance evaluation.

Running head: E- COMMERCE STRATEGY
VTI Group’s E- Commerce Strategy

E- COMMERCE STRATEGY 1
Table of Contents
Introduction...........................................................................................................................................2
Task-1: Project Proposal........................................................................................................................3
Requirements (human and physical) Resources.................................................................................3
Strategic plan for Acquiring Physical Resources...............................................................................3
Strategic plan for Acquiring Human Resources.................................................................................4
Recommendation for prospective Recruits........................................................................................5
Plan for Timeline for E-commerce Strategy......................................................................................5
Ensuring Communication Strategy....................................................................................................6
Key Performance Indicator Targets...................................................................................................6
Risk Identification.............................................................................................................................6
Plan of Contingency..........................................................................................................................7
Key Information on E-Commerce Implementation............................................................................7
Task-2: Performance monitoring plan of E-Commerce Implementation..............................................9
Budgetary and Financial Performance...............................................................................................9
Productivity and Employee Performance...........................................................................................9
Milestones Achieved against Targets................................................................................................9
Resources used in Monitoring...........................................................................................................9
Analysis of Operational Performance and Corrective Action..........................................................10
Three Recommendations to Improve Operational Performance......................................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12

E- COMMERCE STRATEGY 2
Introduction
VTI group based in Melbourne, has to introduce a new channel through which the company
can sell its products and services. In this report, light has been shed upon finding the ways
and resources needed by the company to bring e commerce into practice. E business plays a
crucial role in achieving the competitive advantage in the market both domestic and
international. It is thus, vital to be familiar about the concept of a successful e business plan
or ecommerce. E commerce as the name suggests is when the commercial transactions are
dedicated through the online platform. It is not limited to a particular products and can be
implemented for an unparalleled product range or a service. The medium through which
buying and selling is done is electronic. It requires an intense amount of research and tedious
work to know the facts and figures before the conventional ways of business are broken and
exchange of business is done electronically online in between corporations. This report will
help VTI group to attain cost effectiveness as it is a fast way to buy and sell and much more
convenient.

E- COMMERCE STRATEGY 3
Task-1: Project Proposal
Requirements (human and physical) Resources
The initial requisite of planning anything is deciding the material which the company would
need for its functioning. Since, VTI group is adopting a strategy to trade through an online
medium it is essential that all aspects are taken into consideration with respect to resources.
These resources can be classified into both human resources which include highly skilled
personnel to perform the job and physical which include all the things which will be used to
execute the job.
The company would need qualified employees who are knowledgeable about networking of
computers, internet and customer service staff available to handle and give solutions for
queries (Walmart, 2015). Going further, developers educationally equipped in e commerce
functionality, well acquainted with technical specifications of developing the company’s
website and employees for the management of the company. These management employees
would be needed for the leadership roles in the company. Apart from them, positions like
store management, vendors for miscellaneous requirements, efficient drivers and marketers
for promotional activities would also be a part of Company’s manpower (Pfeiffer, 2014).
On the other hand, physical resources include the machinery, equipment like computer
systems, trucks for meeting the delivery requirements with in the stipulated time to fulfil
order requirements would be required. In addition, forklifts, hardware components of the
computer printers, fax machines, internet connection, CPU, modem, speakers etc., and
various computer soft wares depending upon the nature of the work (Money Watch, 2007).
Strategic plan for Acquiring Physical Resources
The product which the company will sell online has various stages right from procurement till
distribution. This process in which it will be first acquired, manufactured, processed with the
help of a manufacturer and distributed with the help of suppliers will need the mode of
transport like trucks and fork lifts. It would be a wise decision to keep in mind the capacity of
the trucks depending upon the immediate and future requirements. Also, emphasis would be
given to achieve cost effectiveness and optimal expenditure.
Going further, Networks is another physical resource which consists of all those links of
communication which facilitate the communication. Buying and selling of products online

E- COMMERCE STRATEGY 4
need immense research which would require internet facility, computer systems and all the
components both hardware and software like modem, printers, fax machines and
telecommunication equipments. This will support the Ecommerce functionality. Strategically,
the company would need to collaborate and form business contacts with the suppliers of these
networking companies for getting the best rates both for procurement and installation so that
it is in accordance with the companies approved budget (Chaffey, 2015).
In addition, the company needs to focus upon Communication resources. Firstly, the
management should keep into mind the levels and hierarchy through which information will
flow to operate accurately and efficiently. Computer databases, important files are
communicated through emailing, telephones, internet applications like what’s app and chat
applications. Telecommunication should be designed economically and wisely.
Strategic plan for Acquiring Human Resources
To implement e commerce strategy the company would need to create a well-designed
website. This would require technically skilled workforce who are experienced to the mark of
delivering good quality. Human resource would be hired in the best possible way keeping in
mind the Personnel expenditure. Hiring Manager would recruit the employee according to the
experience of the candidate. Eligibility criteria would be designed with properly
communicated job description for e.g. technically skilled staff would be required to be a part
of the company. Careful selection would be followed by the HR head manager which is an
important factor in determining the company’s performance.
Apart from that training programmes would be imparted to the staff hired post screening and
selection. When it is a question of delivering good performance, it is training which helps and
motivates the employees to perform the tasks according to business requirements (Pynes,
2008). Programmes for development in multi skills would be designed so that employees can
perform different roles when required at the time of contingencies. Recognition and rewards
would also be a part of training programmes to motivate and appraise the performance to
maintain the good productivity and accuracy.
In addition, any company when operates in the market needs to protects the consumer
information with security protocols and proper encryption. The information may it be internal
to the organisation or external to the customers’ needs to be completely in compliance to
security standards. The employees hired would be acquainted and communicated with the
entire data security protocols.

E- COMMERCE STRATEGY 5
Recommendation for prospective Recruits
The success element of the company would highly depend upon the right staff who is
qualified enough. The sales of the company would be boosted by the one who is an epitome
of the knowledge related to creation of a user friendly interface for the shoppers online.
Secondly, the candidate must have a deep understanding of the dynamic IT environment so
that changes happen and the company is technologically updated (Barnes, & Hunt, 2013).
Plan for Timeline for E-commerce Strategy
Timeline for E-Commerce Project Completion
Activity
30th June-
10th July
10th July-
20th July
20th July-
31st July
01st
August-
19th Sep
19th Sep-
30th Sep
Analysis of existing
system
Identification of New
requirements
Develop Key
performance Indicators
Plan to measure
organisational
performance
Develop strategies to
recruit employees
Training and
development of
employees
Website Development
Review of New
Ecommerce system

E- COMMERCE STRATEGY 6
Ensuring Communication Strategy
Connectivity both internally and externally is useful in a company where product or service is
sold through electronic medium. Communication through email and follow up email should
be the priority so that the company can retain its customers. Feedbacks should be taken in
short intervals within the company amongst the staff members to take their reviews as to
identify the shortcomings of the new strategy implemented. It will give the management an
idea whether policies and procedures of the organisation have been taken care of or not while
execution of activities. On the other hand, options like contact us, FAQ’s should be included
on the website page are few smart ways to get an idea of the customer response and review
about the company. This must be implemented (Da Costa, 2016).
Key Performance Indicator Targets
Fulfilling the financial targets depend upon the number of online sales. These are the points
the company must keep in mind
 Knowing the channels through which most of the customers are generated.
 Determining the social networking ways to increase the customer base and sales
revenue.
 Finding the appropriate key words best for the business.
 Explore product and human resourcing needs
Risk Identification
Risks which are associated with implementing the e commerce strategy are attacks through
malicious activities. As the dealing is through online methods the customers transact
electronically. This increases the risks of virus attacks and access through unauthorised
means. Another high risk is performance of the processors and its speed is affected high
traffic and hectic network. Thirdly, hacking of private and confidential details of the
customers might happen by outsiders which is illegal (Kou, 2013).

E- COMMERCE STRATEGY 7
Plan of Contingency
As the company has improved its functionality to e commerce there are certain technical
specifications like keeping antivirus installed in the systems to reduce the attacks through
dangerous harmful viruses? Also, computer systems need to be updated frequently.
Therefore, updated technology and soft wares available in the market must be used.
The human resources like data administrators, programming engineers, system analysts need
to be highly skilled and trained according to the changing technological conditions of the
market (Chaffey, Smith, & Smith, 2013).
Key Information on E-Commerce Implementation
Amount ($)
Break down of costs 15,000.00
Benefits to the company 1241,000.00
Risk to the company by not implementing
the e- commerce strategy
Loss of net
benefits of
$1241000
Importance of e commerce to company
and customers
It will help the
company to fight
with the
competitors and
grow. Customers
will get the
goods in a hassle
free manner.

E- COMMERCE STRATEGY 8

E- COMMERCE STRATEGY 9
Task-2: Performance monitoring plan of E-Commerce Implementation
Performance monitoring is a process implemented to ensure that the E-commerce technology
reaps the desired results for the company. In the context of VTI group, a new technology
namely E-commerce has been implemented in respect of which a monitoring plan is required
to be prepared. Among other things, the monitoring plan will involve the aspects such as
budgetary performance, financial performance, productivity and employee performance.
Budgetary and Financial Performance
It is expected that the net benefits from the implementation of E-commerce project
would be $1,241,000. The company would earn a sum of $1,241,000 after meeting all the
costs and expenses. Further, it has been analysed that the company’s sales, gross profit,
expenses, and net profits for the upcoming year would be $11,000,000, $6,677,000,
$5000,000 and $1,677,000 respectively.
Productivity and Employee Performance
After implementing e commerce strategy, the company’s processes will get smooth, this in
turn will cut down on the cost incurred due to timely delivery of service and product and
customer satisfaction. There will be proper training and worker engagement to achieve
company goals which will increase the productivity and profitability (Leigh, & Blakely,
2016).
Milestones Achieved against Targets
E commerce strategy for VTI group will lead to meet the business requirements in terms of
good customer service as the overall quality would be increased with less mistakes in wastage
and misuse of approved resources. If there is efficiency in website maintenance, order
delivery speed, and good customer service there will be an overall increase in online sales
and revenue. This will in turn boost the staff morale and management support leading to good
organisational performance.
Resources used in Monitoring
Monitoring and keeping a track of the performance would be the main objective for the VTI
group in order to attain good resource management. Special audits by quality team who
conducts surveys on quarterly basis will help anticipate the opportunities in the market. Also,

E- COMMERCE STRATEGY 10
it will give an opportunity for innovation, integrities and safety measures to be followed. In
addition, in order to achieve targeted time of delivery and good service there has to be a
regularity in keeping contact with the suppliers and vendors. The customer complaints would
be addressed with accuracy with developing customised and personalised service to keep the
customers engaged increasing the customer satisfaction (Turban, King, Lee, Liang, &
Turban, 2015).
Analysis of Operational Performance and Corrective Action
After implementation of E-commerce strategy, the operational performance of VTI Groups is
expected to improve. Though, the operational expenses would increase in the initial years, but
the benefits are expected to surpass in the upcoming years. The operational expenses as
estimated are $5000, 000 against the revenues of $11,000,000, which indicates that the group
is getting benefited.
The company has faced issues like lacking in quality of service for online sales due to 10%
mistakes in the orders. If the staff is well trained about the processing of orders and systems
of CRM the targets will be achieved. The online speed of delivery and service is not met with
the targeted average completion time and average delivery time. For corrective measure, the
company should focus upon good maintenance of website so that customers are happy to in
receiving the orders in timely manner.
Three Recommendations to Improve Operational Performance
The top most recommendation is to identify the metrics for performance measurement and
deciding quality parameters. Secondly, special focus of the company is catering good
customer service. Lastly, the company should continuously keep the staff updated of the
technological developments (Schniederjans, Cao, & Triche, 2013).

E- COMMERCE STRATEGY 11
Conclusion
It is essential for the company to get an edge over other companies in the market by proper
implementation of the above E commerce proposal. Strategies planned will help to attain the
targeted profit margins, revenue and online sales. This can be done by careful establishment
of the metrics against which the shortcomings and disconnects in the organisation can be
measured. Improving continuously is one of the key elements which the company should
follow to get effectiveness in its functioning.