Information Management System please very detailed answer (min 1,5-2 Page ) and

Question

Information Management System
please very detailed answer (min 1,5-2 Page ) and please dont post anything if you cant do it fully and Thank you

Project: Mary is a single mother who has financial difficulties and living with social assistance from the state. The baby is too small yet, and since there is nobody to look at, Mary tries to make additional income by selling organic toy dolls that he made at home to people around her (Organic dolls are dust-free and bacteria-free toys especially for children with asthma and on chemotherapy). The materials that she needs to make these dolls are only found in a small shop on the corne of the street. Although Mary thinks these materials are expensive, she continues to shop her hecause it is the only one in that area. Each doll cost $20 to Mary and she sells them for S25 Mary is trying to expand her sales area by communicating with toy stores in different states the US, the country she lives in, by means of the telephone. For this reason, sometimes she makes phone calls for several hours a day. Two toy stores who accepted to sell the dolls accepted to receive products by cargo but Mary had to pay the cargo fee herself. Also, although one of the toy stores sold the products, they send her money too late and incomple Question: How can Mary make profit by using the Information Systems and Technologies s has done, and how can she grow and improve her business? How can Mary's possible expenses and incomes change during these stages? (Note: Having a website in the US and European countries is a really expensive and Mary does not yet have the financial situation have one).

Explanation / Answer

Q1.

Selling a product through traditional methods have slowed down and are passive in nature, in today’s day and age these business activities are redundant and earnings are very limited, it is understood that Mary is facing a hard time finding better ways to lead her life and getting her business established in a sustainable manner is the need of the hour. The cost of raw material to produce the doll is high and the availability is risk associated, the risk factor is the limitation in the availability of the raw materials and cost per unit. Mary needs to broaden her horizon to find more shops which sell the raw materials at a cheaper price, only then she could make real profit in her business by selling in volumes.

It is also taken in consideration that website creation and maintaining them in different geographies is a tedious task and the cost incurred in doing so is also high. Now, rather than creating a website to conduct her business internationally, she could consider these options for better profitability.

1. Using e-commerce platforms:

There is a huge list of e-commerce platforms like shopify, Yo! Kart, Magneto etc. which are websites already designed to conduct online selling and open an online store. These platforms are easy to setup, quick loading speed and safer payment gateways as Mary is only selling one type of product, she could be a perfect business owner with very less formalities to consider to conduct her business.

2. Alibaba & Amazon:

Alibaba & Amazon are e-commerce giants and has developed a very effective ecosystem for raw material purchases, it can be assumed that if Mary does a research on Alibaba’s website she can surely find a seller for the raw materials for bulk transaction at a very low price which can boost her profitability. Alibaba also helps through purchase based on credits which can be helpful for Mary knowing that she does not have much capital to be invested. She can also sell her products in bulk through Alibaba and unit based sales with Amazon to interested customers globally.

Change in expenses and Income:

If Mary selects the second option to set up her online store, her expenses for the initial period for the first two months will rise because of fewer but important formalities needed to conduct her business, but that can be offset easily with better sales expected from around the world. Below calculation will help understand the changes:

1st Month = Expenses will rise

2nd Month = Assuming she managed to manufactured 100 units and with better profit per unit due to cheaper raw materials and higher margin of $ 15, she made a total profit of $ 1500. Now, the 2nd month is crucial for Mary to understand the dynamics of her newly found online store and cost realisation which will help her wisdom to decide how much to buy and how much to manufacture for better profitability.

3rd Month = Now, with more capital she could buy more raw materials and manufacture more units and increase her profitability.

These three months are crucial for her business and after the third month she can carry on her business with greater confidence which will result in better profitability based on larger volume.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---