Wednesday, August 14, 2019

Business Information Systems Design and Implementation

In the provided case scenario, it is observed that the management of August Online Technology has intended to conduct a financial analysis for the next eight years based on its i e, expenses and tax among others. There are several indicators to evaluate the future potential of the pany among which the ou e of net i e after tax can clearly depict the possible profitability in the near future. Analyzing the overall financial performance is the most essential practice that enables the pany to not only recognizes its own capability but also helps to pare its financial position with other rival panies as well as the external market requirements (Waghmode & Sawant, 2014). Goal seek analysis is considered to be the most essential practice through which the pany can have knowledge regarding the possible practices as per its financial abilities (Waghmode & Sawant, 2014). The following pictorial illustration (Figure 1) clearly depicts that the sales of the pany is expected to increase within the next eight years with the support of the product X. The annual revenue of the pany in the initial year is around $50,373,252, which is expected to increase up to $77,498,088 as shown in the below mentioned diagram. The estimated sales have been calculated based on the total unit sold in the previous years and average sales growth rate prises of $235,411 and 3.25%. The provided scenario describes that the pany has increased the overall sales every year as well as the price of the products are also increased by 3%. Thus, based on these elements, the sales of the next years have been calculated accordingly, which is found to be steadily increasing thereby representin g higher profitability for the pany. Considering the goal-seek analysis, there are certain elements on which the sales growth rate largely depends such as annual price growth, annual sales growth and the previous year’s sales. Now, in case the average of the annual sales growth rate gets decreased, the revenue or annual sales will also be reduced. For instance, in the Year 6 and Year 7 the pany failed to perform due to which the sale growth rate b e -2% and -3%. Therefore, the overall sales of the pany for Year 7 and Year 8 will be reduced from the estimated figure. The stated fact can be elaborated with the help of the following diagram (Figure 2), wherein it is clearly represented that the sales of Year 7 and Year 8 has been reduced due to the changes made in the average growth rate. Thus, based on the understanding obtained from the goal seek analysis, it can be r mended that the pany must require the maintainenance of its estimated growth rate as the minimum point to attain the target sales within the particular period. However, from the diagram (Figure 2), it has also been apparent that after reducing the average growth rate and price increase rate for two years, the pany sales still continues to increase in the Year 7, which reduces in the last year. From this instance, it can be assumed that the pany has high potential in the near future, as it has the capability to face financial loss without slowing down the sales growth. Based on the financial performance of the pany, it has been apparent that the pany can develop its revenue along with higher profitability even in this petitive market (Fridson & Alvarez, 2011). The following pictorial illustration (Figure 3) represents the overall financial projection value of the pany, which has steadily been increased with time and at the end of eight years the pany is expected to earn approximately $23,171,928. Concerning the expenses, advertising the product as shown in the above diagram (Figure 3), cost of web services, maintenance of the production or operation, rent of the corporate space, salaries to the involved workers, cost related to shipping the products to the end users and supply chain expenses are the estimated elements based on which the total expenses has been calculated. All the expenses apart from maintenance are calculated through particular percentages, which have been elaborated below: The net i e of the pany has been calculated based on all these expenses and the overall expected sales or the product during this particular period. The following diagram (Figure 4) depicts the projected net i e that the pany can attain from the product X, which has steadily been increased by the end of the Year 8. Thus, it is apparent that the pany can largely concentrate on maintaining the growth rate with the support of developed strategies and well-managed workforce, which will eventually help to provide the estimated ou e at the end of the period. Apart from this, it is also worth mentioning that the pany can easily enhance the target arena as it has higher financial capability, and can support to bear the possible loss due to new entrants (Fridson & Alvarez, 2011).   The August Online Technology has aimed to enhance the revenue for the product X with the support of new market trends such as internet. Based on the projected financial analysis, it can be stated that the pany has high potential in future, as the net i e is estimated to increase steadily over the period of time. Therefore, the pany can concentrate on enhancing the sales volume of the product by investing in marketing. In this regard, it is worth mentioning that online marketing has b e a huge medium for organizations in the present context, wherein through a particular platform the marketers can target the entire global arena (Fang & Zhou, 2012). The August Online Technology can also utilize the internet source to market the product X, which will help to make the huge numbers of customers aware of the product, thereby enhancing the overall sales volume. Nowadays, every age group of people prefers to use online sources for obtaining information regarding the products in terms of reviews and customers’ feedback. Therefore, with the support of the web designer or developer, the pany can create an online platform for placing the product in front of the target population. There are several services provided by the panies through online forum in the current market to retain the potential customers (Yannopoulos, 2011). However, parallel to creating a website, the August Online Technology also needs to maintain transparent munication with the customers. The pany can develop the website in such a manner through which the customers can provide their feedback or share their experience with the product. This can on one hand help the pany to improve the product quality, while on the other hand the customers can also get attracted due to this facility as they are also valued by the management in the decision making. On the other hand, web publishing is also considered to be another suitable activity to attract customers in this world of immense petition. Internet has b e a huge part of the daily life schedule of the individuals for which the marketers has also initiated to portray all the required information on the social media website (Fang & Zhou, 2012). Taking the reference from the stated fact, August Online Technology can also utilize web publishing as their promotional tool, wherein it will publish all the promotional activities through the pany website as well as other social media websites to make the customers aware regarding their new policies or offers. Security threat has b e the most crucial aspect, which is continuously increasing across the globe and has caused a serious concern for panies to ensure product privacy to the customers (Alabady, 2009). There are numerous threats in security risks or network attacks among which hacking majorly affects the privacy maintenance. Since the pany will be maintaining an online platform, it has huge security risks in terms of hacking. Due to the process of hacking, it is possible that the hackers will extract the required information from the pany website or the pany will not be able to control the website. Apart from this, other security risks include snooping and eavesdropping, which are regarded as the threat to accessing the pany secure data by any unauthorized person without the consent of the pany management (Padmavathi & Shanmugapriya, 2009). While developing online forum or maintaining the platform, August Online Technology needs to concentrate on such aspects to avoid network attack s and ensure security of products to the customers.   Alabady, S 2009, â€Å"Design and implementation of a network security model for cooperative network†, International Arab Journal of e-Technology, vol. 1, no. 2, pp. 26-36. Fang, X. & Zhou, Y 2012, â€Å"Internet-future business development focus†, American Journal of Industrial and Business Management, vol. 2, pp. 85-88. Fridson, M. S. & Alvarez F 2011, Financial statement analysis: A practitioner's guide, John Wiley & Sons, United States. Padmavathi, D.G. & Shanmugapriya, M 2009, â€Å"A survey of attacks, security mechanisms and challenges in wireless sensor networks†, International Journal of puter Science and Information Security, vol. 4, no. 2, pp. 1-9. Waghmode, M. L. & Sawant, S. B 2014, â€Å"International journal of advance research in puter science and management studies†, International Journal, vol. 2, no. 3, pp. 419-423. Yannopoulos, P 2011, â€Å"Impact of the internet on marketing strategy formulation†, International Journal of Business and Social Science, vol. 2, no. 18, pp. 1-7. Getting academic assistance from

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