Impact of E-Commerce on Global Business

Impact of E-Commerce on Global BusinessIntroductionE-commerce is different from any other type of business. In other address we can say that e-commerce harbour far more(prenominal) similarities than differences. E-commerce has its road map for the operation and development of the business just to make sure we provide non be lost. It has its own process for the business planning, to set the goals, think ahead, anticipate problems and near measures for the success.The profits is same like any other sales channel. The mesh allows companies to advertise information fast with almost zero cost, to reach customers with their range, to introduce rude(a) and innovative product rapidly, to reduce costs and generate savings, to provide write out information in neat period of beat, to answer customer questions quickly, and many more differences. However, Internet also creates more bargaining and selection power for the customers, creates more perfect information market to the market place.The Internet is global and being on the Web means that our business leave behind be visible internationally which pass on be open 24 hours a day, 7 days a week and 365 days in a year. E-business plan must explanation for this difference in Web hosting and fulfil the requirement of customers.The Web is giving greater opportunities for personalization of content, self proceeds for the customer and one to one marketing.E-business has always cerebrate on m displaceting close to the customerWe just discussed about the differences of business and e-business. In the following pages we entrust discuss the collisions of the e-commerce with perspective to Abbey Hotel, breeding which we live taken into consideration as a practical business example. Discussing about the e-commerce, we provide see about the hotel, its scheme-setting activities such as writing the mission statement, core care for proposition which are purported to supplier and consumers, defining the business model, supply chain management, identifying stern markets, identification of critical success factors and critical adventures.Executive SummaryThe bulky term goal of The Abbey class Hotel for temporary lodging and boarding with our shining restaurant and attractive with safe car park creating a differentiated experience, the historic nature of the Reading buildings and as well as the modern Oracles and shopping centre with its unique localization in one of the most attractive take leave of Berkshire. We plan to be more than a great lodging, restaurant, bar and safe park. We planed to create friendly environment and pampered guest with our unique selling services. Expanding our exposure via the Internet and introducing our Abbey hearth Hotel on the websites to maintain our standard and to control over the market.The Abbey sign of the zodiac Hotel steers to build a strong market position in the Reading field of honor of Berkshire as a result of few BB in the area as well as the mild free-enterprise(a) climate in the area. The Abbey House Hotel aims to offer its services at the competitive price to meet the demand of the middle to higher income local market residents and tourists.LocationThe Abbey House Hotel is a beautiful facility. The Hotel offers 18 individually furnished rooms, each with its own antique theme. We are a complete bed and eat Inn with a full complementary breakfast served each morning to our guests. Oracles target market strategy is based on becoming a destination of choice for professional couples in the greater Reading area who are looking for a place to relax. We will also advertise to the newly married couple who are looking for that special get away. It will be important for us to be visible to those potential guests who are endureling on motorway M4 through Heathrow.Abbey house hotel is an established BB, and has been in operation for the last three years. After possession and a brief period of becoming established, Abbey Ho use will diverse into other venires to ensure a steady flow of patrons (tourists and locals) through its doors. The Abbey House is a partnership, equally owned by Muhammad Riaz Hussain and Irfan Mahmood. Mr. Riaz resides on the property, managing and maintaining the business and satisfying guests requirements and Mr. Irfan is taking care of financial mattersThe helpThe Abbey House was originally built in 1980 and is believed to have been one of three train stations on Reading. The slogan for The Abbey House Hotel is national Away From Home The slogan Home away from Home was chosen to ensure that customers have a different experience different from their day-to-day life. In order to be customer conscious, The Abbey House Hotel is offering four different type of accommodation to its customers depending on their needs. There will be Single, Double, Twin and Interconnected rooms. In succeeding(prenominal) spring we are planning to add one full service coin-operated wash drawing mach ine which will provide the facility of washing, drying and optional folding. The Abbey House Hotel will be opened 24 hours a day, 7 days in a week. Each of our rooms is equipped with one King size bed, Two single beds and one single bed. We have full-service restaurant and a bar. Next spring we are planning to add dance floor which will provide live entertainment to the in house guest. We are also plan to renovate the guest rooms next year and placed new LCD TV in each guest room instead of normal TV.The MarketThe Abbey House Hotels target market strategy is based on becoming a destination choice for the people who are visiting Reading (Berkshire) and who are looking for a place to relax. The target markets that we are passing game to pursue are people or families looking for a vacation destination, honeymooners, family reunion, visiting patient to Reading Hospital (which is nearby) Reading University students. Our target budget is 30% over than the last budget with 25 average roo m rate.More variety was added into the restaurant to increase the weekly sales and also adding vegetarian and fish chips items in our menu. Subscriptions to various Web services will provide international exposure to potential customers for nominal fees, plus it has a website http//www.theabbeyhousehotel.co.uk. The Abbey House Hotel would like to see a 20% increase in customer.Financial ConsiderationsMr. Riaz Hussain and Mr. Irfan will invest 50,000 in the business for an initial capital for the start-up and a significant part of the investment will be finance by HSBC. It hopes to secure a loan of 150,000 from the bank with a holdback period of 10 years. Because its family own business, 50,000 will be contributed by two brothers raising its start up capital of 200,000.Start-up Summary T sufficientStart-up ExpensesLegal1,500Stationary etc75Brochures500Property Goodwill50,000Lodge apparatus200Direct TV200Insurance500Other expenses500Total Expenses53,475Start-up AssetsCash required1 5,000Start-up Stock0Other occurrent Assets10,000Total Assets25,000Start-up FundingStart-up Expenses to Fund53,475Start-up Assets to Fund25,000Total Funding Required78,475Business ObjectivesThe broad objective of The Abbey House Hotel is to offer service at competitive price by meeting demand of tourists and residents area of Berkshire and London.The Abbey House Hotel also aims to acquire not less than 25 percent of the BB market before the end of 2009.Key to SuccessIn order to succeed, the management of The Abbey House Hotel will strive to achieve the following goalsTo position The Abbey House Hotel as the best BB in the area of Berkshire of London among the numerous tourists.Build strong market position among the local residents.Maintain healthy and sound financial management of the venture.Business definitionVisionWe are committed to dynamic growth and service probity built upon our heritage of traditional hospitality. An ethic, venerateed and evolving organization a leader i n excellence, we strive to consistently meet and surpass guests, employees and other stakeholders, expectations.MissionTo provide excellent quality and service to all our customers by valuing and rewarding our team, whilst promoting mutual respect and diversityCore ValuesCommunicationListen actively to othersEmbrace diversity and nurse differencesRegularly update information and keep others updatedOpen to feedback and conduct positivelyCollaborate to exceed the organizational goals as well as our ownWork EthicsMeet commitments, set personal standardsTimely in our duties and punctualUnderstand our duties and responsibilities and keep our knowledge updatedAdapt to change, handle pressure and are open to new ideasWe do what it takes to get the work done node ServicesWe strive to build customer confidence and are committed to exceeding customer expectation briskly seek feedback for continuous improvementOur aim to act quickly on resolving issuesHandling service issues politely, positi vely and efficiently whilst following procedureRecognition and growthAchievement orientationPerformance-based paygradeAppreciationIncentivesSetting ever-rising standards of performanceInnovationListening and two-way interactionParticipationEncouragementMotivationInitiativeTrustCooperationSupportTeamworkSense of will powerIntegrityDignityRespectE-Business FacilitiesOnline BookingYou have the opportunity to check room availability and also make an on line reservation. When you click on the online Booking box located below the left navigation you will be taken to a secure page a credit handbill will be required for you to make an online reservation. Your credit card is only used to secure the curbing and your account need not be colonized by this card.Guest will make the booking online and guaranteed by their Credit Card.B2CBooking confirmation NoOnline Hotel InformationOnline booking optionsGuestAll bedrooms have en-suite facilitiesDouble bed, Twin bed Single bed, Tea/Coffee mak ing facilities, Direct dial from rooms, TV, blur dryer, Trouser pressCheck in time 1400 hrsCheck out time 1100 hrsAll reservation must be guaranteed by Credit Card prior to the arrival. Non guaranteed booking will be scrub 24 hours prior to arrival. bare(a) sharing person will be charged 10. direction Rate Click here to book the room sunlight to ThursdaySingle 75 ENQUIREDouble / Twin (single occupancy) 85 ENQUIREDouble / Twin (double occupancy) 95 ENQUIREExtra Person 10Weekend Room Rates Click here to book the roomFriday and SaturdaySingle 49 ENQUIREDouble / Twin 59 ENQUIREExtra Person 10All rates are inclusive of Full English Breakfast and VAT at 17.5%All rates are heart-to-heart to change without noticeOnline Special OffersExtended Stay Programme, Room from Just 40 ENQUIREWeekends in Reading 45 ENQUIREValid watch April 7, 2008 April 7, 2009Double bed, Twin bed Single bed, Tea/Coffee making facilities, Direct dial from rooms, TV, Hair dryer, Trouser pressReading Rock festiva l ENQUIREValid Date August 22, 2008 August 25, 2008Double bed, Twin bed Single bed, Tea/Coffee making facilities, Direct dial from rooms, TV, Hair dryer, Trouser pressHome Away Home click here for our specialitiesAdvance Purchase Reservation click here for our specialities(No amendment, no refund will be given in this offer)Web Plan SummaryThe Abbey House Hotel website will focus on the features the Abbey House Hotel has to offer. Each room with its different options will be on the site as well as pictures of The Abbey House Hotel and the facilities that it has to offer. The lunch / dinner menu will be displayed. Room rates will be given, with maps on how to get to there. Attractions with in 30 miles will be on the site and other local colour will be shown. Room reservation can be made online if the consumer wishes to do so.Website selling StrategyOur website marketing strategy will focus on Corporate, Visitors and groups who are looking for a boarding and lodging. The Berkshire, Oxfordshire and London area will be our main focal point. The Abbey House Hotel will promote through our website by usingDetailed photos of the Abbey House and surrounding areaPrice list of our rooms and our restaurant menu.Special PackageWe will contact with travel agent around the world e.g. Active Hotel. Gullivers Travels, Travco, Expedia, Expotel, Late room. Last minute. BSP, top-notch breaks etcGuests are making the room booking through the following travel agents and pay to them. These Agents forward those booking to the hotel via email and fax.e.g.Gullivers Travels www.gullivertravels.co.ukExpedia www.expedia.comTravco www.travco.comSuper breaks www.superbreaks.co.ukOn the other hand, these following Travel Agents, they advertise our hotel on their websites, guests make their booking and these Travel Agents forward those booking to hotel and hotel charge to guest directly and pay the commission on top of that to Travel Agents after receiving their commission invoice.Active Hotels www.activehotels.comLate room www.lateroom.comLast minutes www.lastminute.comOur Hotels website is linked with all above mentioned websites. It is other source of e-business to increase the revenue and achieve our target.Booking through Travel AgentB2BActivehotel.comLateroom.comLastminute.comGta.comTravco.co.ukSuperbreaks.comExpedia.comExpotel.comBooking Confirmation to GuestOnline GuestConfirmation send to theHotel stock-taking Control System on websites by HotelJoint websites or travel agents websites providing us a business and we will allocate the rooms and control the inventory. If we dont have rooms to sell we can close their allocation and if we want to give some rooms to them, we can allocate them number of room as per our hotel requirement. If travel agent has a client who is looking for a room in our hotel or in our area and there is no room is avail able or room inventory is zero then we can sell directly to the travel agent. On both ways we are not losing the bus iness.Marketing StrategyThe mission of Abbey House Hotel is to become the best choice in Berkshire area for the boarding and lodging by expending our exposure via the Internet (with dual networks and links). We are planning to be more than a great hotel. We are planning to bring the guest satisfaction up to the mark and the name of excellence in the hotel industry and guests feel that they are not away from their homes. And we are also planning on adding a full service coin-operated laundry facility (washing and drying)The Abbey House Hotel makes the guest valued by ensuring their comfort. For special occasions, catered meals, Extra mattress, room service, etc. can be provided for an additional fee. During the weekends, guests will return to the Abbey House Hotel in the evening and find a fine restaurant to dine and efficient staffs is waiting to serve them to make them valued.The Abbey House Hotels target market strategy is based on becoming a destination choice for families, loca l familys visitors, and corporate clients, small groups who are looking for a place to relax for short or long period of time. The Abbey House Hotel would like to see a 30% to 40% increase in customers on a yearly posterior with 100% customers satisfaction. Our target market strategy is based on becoming a destination for people who are looking to get away for a vocation or visit London. Our marketing strategy is based on superior performance in the following areaQuality facilitiesBeautiful locationCustomer ServicesThe target markets are divided in to three major segments Vacationers, Corporate and Family visitors. The primary marketing strategy is selling to this accessible target market by focusing on their vacation and recreational needs.Sales StrategyThe Sales Strategy the Abbey House Hotel aimed to adopt is to ensure customers can book viaTelephoneTravel AgentsInternet (i.e. www.theabbeyhousehotel.co.uk)The Abbey House Hotel also aimed to offer guarantee reservation for regula r customers during high season.Critical Success Factors and Critical RisksAlthough Abbey Hotel is a middling sized organization, there are several survival factors imbedded to its organizational culture. Well experienced staff, visionary leadership, eco-friendly geographical location, continues training and development for the staff, chances to grow based on high performance for the staff, continues supervision on house keeping, food and beverages operation, delicious and different kind of menu, clear downward communication pattern, are survival factors in the organization to overcome the challenges for its business.Among said survival factors in the organization, experienced and visionary leadership, well-trained staff and beautiful location are carrying its business to the top in the industry. Therefore, Abbey hotel could give way as well as it will reach to the business excellence, if the firm can overcome following risk factors. Due to the increased terrorism activities in the world, global certainty is being jeopardized. September 11th incident in New York, recent Bomb blast at Marriott Hotel in Pakistan are some examples. This global uncertainty directly impact for the decline occupancy rate in the hotel industry in main capitals in the world. The most difficult working class is implementing proactive steps to overcome these challenges.Present financial crisis in the global financial industry is another risk for the industry as the share value of many leading hotels is declining. In such a situation, industry is in a danger situation as market is depending on economic sovereignty of any market segment. Secondly, should expectations not materialize, and then sub-par returns could damage the overall financial credibility of the lodging industry. Shortage of skilled work force is another risk factor. Changing government rules and regulation on migration policy will be direct impact for finding skilled staff for the hospitality industry.Due to wild comp etition among the hotels in the hospitality industry, brands issues are appearing in present more than in the past. Customers are assessing this culture that it would be affecting the quality of the service in negative aspect. Because, all organizations are prefer to maximize their profit to remain in the market long-term basis. Popularising of eco tourism also may impact for the industry, as right now customer preferences are more for eco-friendly atmosphere within the hotel premises. For example herbal spa, inorganic foods, natural cottage are extremely demanded options from customers. In addition to above, increasing loss of control over the customer due to the use of the Internet, homogenisation of the hotel product and increased corporate oversight has lessen the amount of control that operators have over the customer. Hence emerging impact of new technology, operating cost creep, supply change management issues, safety and gage issues, reputation risks, high-energy cost, ar e some other key issues in the industry. The management should emphasis the said survival factors and challenges as provocative measures.