Rockville University Computer Accessories - Assignment Example

Rockville University Computer Accessories Your name Student number Date Who the report is for Executive summary This report is about business set up by Ian turner who is a graduate of Rockville University; he worked in the university’s information. He notices that the university purchases a large number of computers. He came up with an idea to purchase and sell computers to students and staff at a reasonable price. He convinces the university council and he is allowed to set up the service with the cooperation of the university. He sets up a website which allows students to browse and order accessories and computers; he is able to link up with students. The e-store sells computers such as Ultrabook, desktop and tablet, the e-store also sells peripherals for storage, printing, connectivity, visual and audio plus academic licensed softwares. The sales picks up in the first year resulting in increase in staff and a personal assistants for Turner. The sales continue to increase in the second year and the results for the e-store are generated to the management. The gross profit margin and the net profit bare generated to assist in evaluating the e-store performance for improvements. The university council in provided with this report inform of excel spreadsheet for assessment. This is as well used in making decisions on whether to open up the store to outside customers where it is decided it is not wise to open up according to the projected increase in sales and expenses. Table of Contents Table of Contents 2 Introduction 3 Question One 4 Question Two 4 Question Three 5 Question Four 5 Question Five 6 Recommendations 7 References 8 Introduction Information technology is subject to increased dynamism due to the ever evolving information design and innovation in information technology. In this regard, there is increased demand for comprehensive search for information. Furthermore, evolution in computer designs is happening rapidly and therefore means of access to information and academic softwares are accessing information. The following report looks at a store established in Rockville University for helping students and staff in getting computers and computer accessories at lower prices to help them in per suing academic excellence in the university. This idea is generated by Ian Turner who works for the university in the information technology department, he is also a graduate of the university With the ever increasing costs of acquiring a computer for studies increasing, e-store will aid the students by selling to them at lower prices while at the same time making profits to sustain it and remunerate its workers. This report also aims to get the performance of e-store and for making decision on whether to include the local in this business. The report is also used to identify other computer and accessories that can be sold through the e-store. Question One I have used the goal seek function to estimate the percentage of the mark up if the profits were $5,000. The resulting mark up is -13421733%. Using the data in the spreadsheet that i created, i clicked on the data in the spreadsheet and then to what if analysis and finally to the goal seek. Here it brings three sets, the set cell i entered the mark up cell and that i wanted to the new mark up to come that is the B24. The next is to input the value of the profit that i want to be changed to and in this case the $5,000. The last one is to input the cell that i wanted it to be changed. The cell is the C32. Then i clicked okay button to give the results as given in the spreadsheet. It would be wise to reduce the mark up price for the business. The increase in sales in the university is because it is the beginning of the business and many students and staffs does not have them. As they continue selling, many will have acquired and since they are durable products they will stay for long. This will consequently reduce the sales as many and many students have the devices. Therefore the mark up percentage should not be reduced, to take advantage of the increased sales for the time being. It will compensate for the dip in sales that will be experienced in future though they can decide to include the outsiders to boost their sales. Question Two The item that produces the greatest gross profit is the Ultrabook. This item produces a gross profit of $ 92,243.53. The net profit for this item is ($92,243.53-$30,735.00) = $61,508.53. This item has the highest gross profit because of the quantity and its price is both high. From the spreadsheet, the item that produces the lowest gross profit is the Head Phones. Turner has very few quantities of the head phones and they are retailing at a very low price there by accounting for the lowest gross profit among all the items of that are stocked for sale. Its profits are not quantifiable since in itself it cannot be able to account for any of the expenses incurred. There is no quantifiable profit for the head phones. This is because of the little selling price of the head phones which would not be economically viable to sell them alone in the university. Question Three Mr. Turners salary would be increased to $82,721.11 and still maintain a salary of $20,000 dollars. His net salary after tax would be $70,462.10 after the increase. After the increase he would be required to pay a tax of $12,259.01 also representing an increase in the amount of tax. Consequently this would reduce the profits of the business as per the current situation. To increased Turners salary will mean decrease in the profits and his salary increase is an expense thereby reducing the amounts of profits. Question Four There are several brands which are similar to the Ultrabook. They help the students in access of information at their convenience. This one particular type is very important as it has every feature in a computer, it is potable, and it is cheap and can be used at ones convenience. This type is Acer Aspire S3-391-53314G52add Ultrabook which is very similar to the Ultrabook in the spreadsheet. The Processing power is very high making it to be useful especially in cases where there are no other means of processing information as (Yu & Yang 2010) asserts. In these regard, the very similar Ultrabook found in Australia which is similar to the one in the spreadsheet is this Acer aspire. Brand - Acer Aspire S3-391-53314G52add Ultrabook Specifications - Intel Core i5-3317U processor 4 GB of working memory Intel HD Graphics 4000 graphics card is responsible for video output 500 GB hard disk 20 SSD cache I would expect to pay $999 for this brand. This cost is relatively balanced as compared to the similar products in the market. This price is therefore considered fair. Retailer – Acer notebook Site URL: http://www.notebookcheck.net/Review-Acer-Aspire-S3-391-53314G52add-Ultrabook.81619.0.html Question Five Opening a bricks and mortar shop where users can browse and look at items and purchase them directly would not be a wise move by the e-store. As the projected actual figures indicate it would lower the net profit of the business. Where the expenses are more than the income generated, it will produce losses and these losses would consequently reduce the net earnings of the business. So it is important to stick with the current mode of the business without putting up the bricks and mortar shop. The net profit is lowering from $32,721.11 to $29,212.33. It seems that the expenses of $50,000 outweigh the income that it would earn. In this case, it is not advisable to build the shops. However, the purpose of this business is to help the students and staff to have computers, computer accessories and academic softwares at lower costs and not primarily to make profits. In this case, the earnings that the business will earn cannot be the central point of making the decision. The bricks and mortar shops are intended to be opened for the local buyers. According to the actual projected figures from the spreadsheet, as the question requires, this would not be a wise move and therefore should not be undertaken as it is viable. Recommendations The above report indicates that e-store is a profitable business. Sales are increasing at a very impressive rate. The work remains to the administrators to maintain the same level and or perhaps increase the sales even beyond the profits it is generating. Rockville university students and staff alike are all benefiting from the scheme and the e-store administrator with the help of the university council. The business is as well making enough income to support itself. There are several improvements that can be instigated to improve the business. One of them is including more types of computers and accessories to the customers. This will provide the customers with a wide variety to choose from, the business will as well earn some extra income. The business can also increase the number of staff assistants to cater for the increasing number of customers, this will enhance efficiency in the business. Another way to improve the business, as (Johnson & Krebsbach 2000) puts it, is by increasing the number of stores where the customers come to view and order the products. E-store is in for a big business ad this provides a good platform for evaluation and improvement of the business. References Johnson, J Lundberg, D & Krebsbach, M 2000 U.S. Patent No 6,067,525 Washington, DC: U.S. Patent and Trademark Office. Yu, J Williams, E Ju, M & Yang, Y 2010 forecasting global generation of obsolete personal computers Environmental science & technology Read More