Website Business Project: Financial Analysis and Recommendations

This project analyzes a website development company facing low to moderate profits. The assignment requires a detailed examination of the company's current information system, including hardware, software, data, procedures, and personnel. The student's analysis includes creating an Excel spreadsheet to model the company's finances, comparing scenarios with and without hardware upgrades, and utilizing the Goal Seek function to determine the income needed to reach a profit target of $100,000. The project proposes specific hardware upgrades (Intel i9 processor, increased hard drive space, improved internet bandwidth, and laser printers) and considers the financial implications of borrowing funds and implementing employee incentives. The final recommendations focus on hardware investments to increase profit margins and overall business performance.

Website Business
Company
Student Name 1
Student Name 2
Student Name 3

Business Description
• Medium business of website development
• Over 500 employees
• Profit varies low to moderate

Current status of profit and
expenses
Rent for office
Utilities
Salaries
Phone
Network connection
New desktop installation
New external and internal drive intallation
New laser printer installation
Website management cost
Website creation cost
Product marketing cost
Digital marketing cost
Income
loan amount
Loan amount repayble after 1 year
Profit
0
50000
100000
150000
200000
250000
Amount in Original scenario($)

New hardware instalments
New hardware will
• Increase income
• Reduce Website management cost
• Reduce Website creation cost
• Reduce Product marketing cost
• Reduce Digital marketing cost

Borrowing fund
Need to borrow money of $50000 at 12% yearly interest rate repayable
in 5 years on yearly basis.
EMI in year = $13,870.49

Comparison of Scenarios
Scenario 1 shows profit is only $10,400.00
Scenario 2 where new hardware are installed profit becomes
approximately $48,129.51.
Goal seek:
Goal is to profit $100000 by changing income.
Goal seek shows than when income is $301870.4866 then profit
becomes $100000.

Employee incentives
Contribution Employee bonus
less than 10% No
more than 10% Yes
Contribution Monthly wage(in $) Car allowance
less than 10% Less than 5000 No
more than 10% Less than 5000 Yes
less than 10% more than 5000 No
more than 10% more than 5000 No
Maximum contribution to yearly profit is the employee of the year

Recommendation
• New hardware need to be installed to increase profit. The changes in
hardware are
1. High configuration Intel i9 processor installed desktop instead of
previous old Intel model desktops.
2. Increasing external and internal hard drive size from 500 GB to 2 TB
for all the computers used by employees.
3. Acquiring highest bandwidth network provider for improved internet
experience for business.
4. Installing laser printers for printing instead of previous dot-matrix
printers.