Part A XYZ company, a successful retail seller of jade jewelery in a niche Nova Scotian market has three storefront locations in Halifax, Dartmouth and Bedford. The CEO Jean Smith has decided to jump into the world of E-Business. The company currently use an accounting information systems from Sage (Sage 300) and and older local area network (LAN). As part of this strategy the Bedford and Dartmouth stores will be closed and the Halifax retail store moved to a location which can also handle warehousing inventory and distribution of direct online sales to their customers at a net cost of $100,000. In order to accommodate the development of an e-store supporting online purchases and payments XYZ is considering a proposal from Starbright to develop their ebusiness website, providing secure online shopping for its customers at a cost of $150,000 plus a $15,000 annual maintenance cost. Ten employees and two managers will be downsized with this move. The company is expecting a 100% increase in sales volume as a result of this move. The CEO has asked you to identify key issues that should be addressed before making a decision to go forward with the project and your recommendation. You have decided to perform a MOTO analysis. For each of the MOTC areas identify the three most important issues to be considered in making your recommendation to the CEO and explain why they are important. State your assumptions: Assumptions: Part A Three most important management Issues and why (6 marks) Part A XYZ company, a successful retail seller of jade jewelery in a niche Nova Scotian market has three storefront locations in Halifax, Dartmouth and Bedford. The CEO Jean Smith has decided to jump into the world of E-Business. The company currently use an accounting information systems from Sage (Sage 300) and and older local area network (LAN). As part of this strategy the Bedford and Dartmouth stores will be closed and the Halifax retail store moved to a location which can also handle warehousing inventory and distribution of direct online sales to their customers at a net cost of $100,000. In order to accommodate the development of an e-store supporting online purchases and payments XYZ is considering a proposal from Starbright to develop their ebusiness website, providing secure online shopping for its customers at a cost of $150,000 plus a $15,000 annual maintenance cost. Ten employees and two managers will be downsized with this move. The company is expecting a 100% increase in sales volume as a result of this move. The CEO has asked you to identify key issues that should be addressed before making a decision to go forward with the project and your recommendation. You have decided to perform a MOTO analysis. For each of the MOTC areas identify the three most important issues to be considered in making your recommendation to the CEO and explain why they are important. State your assumptions: Assumptions: Part A Three most important management Issues and why (6 marks)
