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ELECTRONIC COMMERCE
ASSIGNMENT 2
JAMBOREE
EVENT MANAGEMENT
SUBMITTED TO: Sir Raja Zia-ul-Haq
SUBMITTED BY: Fahd Hussain Khan
Fatima Ikram Khan
Sana Abid Ansari
Saniya Raza Tiwana
Urooj Tariq
BBA-5(A)
25th May 2011
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INDIVIDUAL CONTRIBUTIONS
Preparation and compilation of report: Sana Abid Ansari
Website design and layout:Saniya Raza Tiwana & Urooj Tariq
Preparation and compilation of slides and presentation:
Fatima Ikram Khan & Fahd Hussain Khan
TABLE OF CONTENTS
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Page No.
(i) Introduction........1
Baby showers....1 Weddings...4
(ii) Business Model of Jamboree Event Management.6
(iii) Revenue Model of Jamboree Event Management8
(iv) Business Strategy.9
(v) Technical Issues in E-Commerce...12
Security features.12
Affiliations and partnerships14
Payment systems14
Hardware and software requirements.16
(vi) References..18
JAMBOREE EVENT MANAGEMENT
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INTRODUCTION
Jamboree event management is an online business providing its customers
with a way to celebrate their special occasions without the hassle of
organizing and planning out the event themselves. We cater to weddings,
birthdays, baby showers, anniversaries and other special occasions. All
aspects of an event such as catering, decorations, photo shoots etc. are
managed by us. However our services are limited to Islamabad/Rawalpindi
only. Customers can contact us through our website. After logging into our
website they only have to specify the event that they want us to cater to and
the rest is managed by us.
Every event that we organize will be unique and according to the
specifications of the customers. Our team has highly innovative andimaginative ideas to make all our events special. The following are examples
of how we plan to organize certain events:
BABY SHOWERS
For baby showers here are just a few of the services we provide:
Catering
We organize seating arrangements and apart from this our team isresponsible for providing delicious eatables including custom-made cakes
and confectionary items. Customers can select from a wide range of
snacks listed in our menu. The menu is available on our website and can
be selected depending on what scale the event is taking place. We also
provide professional photographers and movie- makers if asked for.
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Decorations
These include flowers, banners, balloons, floats and pinups. Our
customers can specify the kind of decorations they want. Decorations can
even be custom-made exactly according to what our customer wants.
However orders for customizable decorations have to be placed at least aweek beforehand.
Games and Activities
Food, drink and conversation are the basic ingredients of a baby shower.
But it is often the games that help a host make the event memorable, andthats where we come in! We can help provide ideas for games and other
activities. [1]
Baby Shower Bingo : With bingo cards and a word list, this is a game which
guests of all ages will enjoy.
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Guess the baby: Each guest is asked to bring with them to the shower a
picture of themselves as a baby. The various pictures are all jumbled up and
one of them is picked. The rest of the guests are made to guess whose picture
it is.
Name the Baby:Every guest is given a small piece of paper and is asked to
write down their favorite names and then fold up the paper. The mother-to-
be picks out one of the folded pieces of paper and the name written on it can
be chosen for the baby.
Gifts
We can help provide our customers with ideas for what to give as a gift if
they have been invited to a baby shower. We also provide small wrapped
return gifts for guests.
WEDDINGS
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Planning a wedding can be a very intimidating and overwhelming task.
Jamboree Event Management will help to alleviate this stress by helping put
together a wedding plan, deciding on wedding venues, dresses and flowers,
and even selecting a wedding song. Our standard services include:
Catering and Decorations
For weddings we provide formal seating and dinner arrangements,
marquees and professional photographers. The menu has to be decided
and the order placed a month beforehand through our website. Orders can
also be placed for our custom-made cakes and confectionary items.
All decorations at the venue are made by our team. These include flower
arrangements, stage arrangements and lighting etc.
Dresses
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We even help the prospective bride and groom to pick out dresses that
most suit them and are within their specified price range. We help them
select designers/boutiques that they are interested in buying from. After
that we make ourselves responsible for contacting the selected designers/
boutiques for selecting the dress and for subsequent dress fittings.
Music
We provide a band of our customers choice and for those wedding
functions that involve dancing even provide professional choreographers.
Wedding Invitations
On our website there are hundreds of sample wedding invitations.
Customers can select any one of the designs available and can let us
know if they want any alterations made to the invitations. After placing
the orders they can receive them in a couple of weeks time.
BUSINESS MODEL OF JAMBOREE EVENT
MANAGEMENT
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1) VALUE PROPOSTION
To help our clients live their dreams through the development and execution
of customized, meticulously planned special events. Through ourinvolvement in every stage of the project we ensure maximum customer
satisfaction.
2) REVENUE MODEL
Sales, affiliate/referral and advertising fees will be our major revenue
models. We will be earning a fee from our clients through the sale of our
services. Affiliate or referral fees will also be earned as we will be referring
various services to our clients, such as designers/boutiques, choreographers
and musical bands. Advertising fees can also be earned as we will be
running advertisements for a few selected services on our website.
3) MARKET OPPORTUNITY
There is a wide market for event management services such as ours. And
especially in the Islamabad/Rawalpindi area there is a great shortage of such
services. We will be the first business to organize and cater to every aspect
of an event.
4) COMPETITIVE ENVIRONMENT
In this area there are only a few major quality catering services such as Hanif
Rajput and Capital Catering Services. These are hugely popular with the
residents of Islamabad/Rawalpindi and are hired for a number of events.
5) COMPETITIVE ADVANTAGE
However the catering services present are only limited to specifically
catering at events. The advantage that we have here is that we provide not just catering but also decorations, photo shoots, choreographers, gifts for
guests, invitations and planning of events.
6) MARKET STRATEGY
We plan to aggressively promote our business through the internet, flyers
and most importantly through positive word-of-mouth. We have also created
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a page on Facebook that describes our services and also provides links to our
website.
7) ORGANIZATIONAL DEVELOPMENT
To organize and manage our various services Jamboree Event Managementhas several departments. These departments are specific to the various
services we provide such as catering, clothing and food. Then there are
separate departments that handle advertising, financing and recruitment etc.
8) MANAGEMENT TEAM
The employees of Jamboree Event Management are required to be
hardworking, able to meet deadlines and most importantly extremely
imaginative. They have to be able to pull off clients wildest suggestions and
ideas and make each event a memorable experience.
REVENUE MODEL OF JAMBOREE EVENT
MANAGEMENT
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The basic function of any business is to generate revenue and profits. A
revenue model describes how business aims to generate profits and produce
a superior return on its invested capital [2]. Our basic revenue model will
consist of:
1) SALES FEE
Most of our revenue will be earned from the sale of our services. Our
standard fee for organizing an event is approximately Rs. 60,000 to Rs.
100,000. This includes payment for standard services such as catering and
decorations. But if our customers specify additional services such as music
arrangements, organizing activities and contacting designers, then our fee
can rise up to the range of Rs. 100,000 to Rs. 200,000.
2) AFFILIATE/REFERRAL FEES
As our services involve referring our clients to various other businesses and
services such as choreographers, boutiques etc. we will also obtain a fee
from the businesses we are referring our clients to. Every time a client
requires additional services we refer to other businesses, and if a transaction
is made between our client and that business, we will obtain a fee for
enabling that transaction.
3) ADVERTISING FEES
On our website we will run advertisements of other related businesses as
well. Mostly the ads will be of the businesses and services that well be
using to plan out our events. However they can buy advertising space on our
website as well.
BUSINESS STRATEGY
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A service business entails selling a product that does not exist until the
customer pays for it. Because it is intangible, launching a service business
is an entirely different ballgame from marketing a product. Selling a service
is more difficult than selling a tangible product. Consumers are much less
certain when they are buying a service, since what they are buying is merely
a promise that someone will do something for them in a way that will satisfy
their expectations. [3]
Our business strategy describes how we plan to launch our business. But
before we launch our service we have to consider a number of factors. These
factors include: [4]
1) Size of the market
Unless there is a demand for our services, launching our business will not be
profitable. There has to be a reasonable number of customers who arewilling to pay for our services.
2) Is the market growing?
It is only profitable entering a market if it is growing. Entering a market
which is declining and has already been saturated would only lead to
decreasing returns and losses.
3) Competition
If there are already a number of companies who are providing similar
services to ours, the entry of Jamboree Event Management wont create such
an impact. Even if were ready to spend and have the resources to run the
business, it wont be profitable for us if the market is already saturated.
4) Is the market price driven?
The obvious answer is yes, the market is price driven. Especially if there are
a number of competitors, customers go for the company offering the lowest
prices and the best possible services.
5) Are there viable segments within the market?The market can be divided into various segments and then a specific
segment can be targeted. This can help us to specialize our services
according to the tastes of that segment and also provide us with opportunities
for expansion in the future.
6) Is the market seasonally driven?
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To retain our client-base we will have to make sure that our clients are
satisfied with our service and also maintain cordial relations with them. Our
whole business depends on effective customer service. If our clients are
happy, they will come back to us a second time as well.
(iii) PARTICIPATION IN ORGANIZATIONS
Helping to organize organizational events would enable us to promote our
services on a much larger scale and build a network of potential clients. This
would help us to network with potential clients and industry players,
increase our exposure to the community and professional colleagues, and
even get new business. Organizing charitable events would be another useful
way for us to build our companys name in the community. By organizing
such events we can promote ourselves as a business concerned with not just
generating profits but also with the welfare of the society.
(iv) DIRECT MAIL
Another way to promote our business would be to send out fliers and
brochures to our target market. We would also need to regularly send out
mail to our existing clients, to remind them of us and what we can do to help
them. We could e-mail them about any new deals or discounts that we are
offering.
TECHNICAL ISSUES IN E-COMMERCE
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While building a website for our business, a number of issues will have to be
considered. These include:
1. Security features
2. Affiliations and partnerships
3. Payment systems
4. Hardware/software requirements
1) SECURITY FEATURES [6]
Security is a major concern for all E-Commerce websites as they can suffer
huge financial losses and face much bad publicity. On the other hand
consumers also fear the loss or theft of financial data. E-Commerce sites
have to judge security vulnerabilities, assess potential technical solutions and
also assess, evaluate and resolve the risks involved. A few security issuesthat can occur can be described as follows:
The users of a web site have to identify or authenticate themselves to
the website they are using. Typically, authentication begins on the
users home computer and its browser. However security problems in
home computers allow hackers to steal E-Commerce data and
identification data from users. Some examples include saving private
data as cookies which can be used by hackers. Ineffective
encryption or a lack of encryption for home wireless networks and
mail-borne viruses can steal users financial data from the local disk oreven from users keystrokes. While these specific security problems
can be fixed by software developers and web-site administrators,
similar problems have continued to occur.
The users web browser connects to the merchant front-end. When a
consumer makes an online purchase, the merchant's web-server
usually caches the order's personal information in an archive of recent
orders. This archive contains everything necessary for credit-card
fraud. Further, such archives often hold 90 days' worth of customers'orders. Naturally, hackers break into insecure web servers to harvest
these archives of credit card numbers. Therefore our first security
priority should be to keep the web servers' archives of recent orders
behind the firewall, not on the front-end web servers. Furthermore,
sensitive servers should be kept highly specialized, by turning off and
removing all inessential services and applications (e.g., ftp, email).
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The merchant back-end and database. A sites servers can weaken the
company's internal network. This not easily remedied, because the
web servers need administrative connections to the internal network,
but web server software tends to have buggy security. Here, the cost
of failure is very high, with potential theft of customers identities or
corporate data. Additionally, the back-end may connect with third
party fulfillment centers and other processing agents. Arguably, the
risk of stolen product is our least-important security concern, because
most merchants' traditional operations already have careful controls to
track payments and deliveries. However, these third parties can release
valuable data through their own vulnerabilities.
Steps that can be taken to prevent security issues: [7]
1. The merchant is always responsible for security of the Internet-connected
PC where customer details are handled. Virus protection and a firewall are
the minimum requirement. To be absolutely safe, sensitive information and
customer details should be stored on zip-disks, a physically separate PC or
with a commercial file storage service. Multiple back-ups of essential
information should be kept, and it must be ensured that they are stored safely
off-site.
2. Where customers order by email, information should be encrypted with
PGP or similar software. Or payment should be made by specially encryptedchecks and ordering software.
3. Where credit cards are taken online and processed later, it's the merchant's
responsibility to check the security of the hosting company's web server.
4. Where credit cards are taken online and processed in real time, four
situations can arise:
Using a service bureau. Sensitive information is handled entirely by
the service bureau, which is responsible for its security. Other
customer and order details will be our own responsibility.
Our company possesses an E-Commerce merchant account but uses
the digital certificate supplied by the hosting company. A cheap
option acceptable for smallish transactions with SMEs. We should
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take a look at the hosting company, and the terms and conditions
applying to the digital certificate.
The company possesses an E-Commerce merchant account and
obtains its own digital certificate. We should look at the hosting
company, and enter into a dialogue with the certification authority.
Security is a vexing, costly and complicated business, but a single lapse can
be expensive in lost funds, records and reputation. Instead of waiting for
disaster to strike, we have to stay proactive, employing a security expert
where necessary.
2) AFFILIATIONS AND PARTNERSHIPS
Affiliations are associations between two companies for the purpose of
obtaining mutual benefits for both the companies. On the other hand in a partnership two parties agree to share the responsibility of achieving a
mutual goal and share in the profits or losses that may occur. The main
purpose of entering into an affiliation or partnership is to enhance the quality
of the product or services provided to the consumer. A partnership on the
other hand is entered into through a contract where both parties agree to
share in the profits and losses of a business. [8]
At Jamboree Event Management we plan to enter into a number of
affiliations to enhance the quality and range of our services. These include
affiliations with dress designers, musicians, printing companies etc.
3) PAYMENT SYSTEMS
An E- Commerce payment system enables the acceptance of payments for
online transactions. The various online payment systems used can be
described as follows: [9]
Bank and Credit Card Systems
Many large online businesses use the payment systems offered by majorcredit card operators, such as Visa and MasterCard. Cardholders create and
register a password with their bank and use that password to authenticate
each online transaction that they perform.
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Secure Trading
To accept online payments directly through our own website well need an
Internet merchant account. This can be handled indirectly, through a service
such as the Secure Trading Merchant Account Service. This can also arrange
merchant accounts for mail order or telephone ordering if need be or directly
at a bank. Charges for merchant accounts vary from bank to bank, and
according to the type and age of the business together with other trading
factors such as turnover.
PayPal
If a business does not need or want a merchant account with a bank PayPal
may provide a simpler option. A PayPalaccount can be created very easily
and there are no set up or cancellation fees. One is not bound by a minimumnumber or value of transactions each month. One can simply cut and paste
the HTML code supplied by PayPal for the creation of a payment button into
an online checkout for single item transactions. Alternatively one can choose
from the shopping carts already integrated with PayPal for multiple items.
Transaction fees range from 1.4% to 3.4%.
Google Checkout
Other ecommerce systems that can be considered include Google Checkout ,
which allows online shoppers to make purchases from anywhere on theInternet, but provides tracking and delivery information in a single location.
This includes a merchant fee depending on sales volumes, with additional
costs for international transactions.
World Pay
World Pay is backed by the Royal Bank of Scotland, the fifth biggest bank in
the world. It allows secure payment not only by credit, or debit, card, but by
what the firm claims is the widest range of payment means currently
available.
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Payment system used at Jamboree Event Management:
The payment system we will be using at Jamboree Event Management is
Secure Trading. This is because it does not involve the use of credit cards
and payments can be made directly at our bank account. Due to the rise in
credit card and internet fraud and various other scams a lot of people are
unwilling to carry out credit card transactions. Also since our business is
only limited to the Islamabad/Rawalpindi region making direct payments
would be much easier and convenient.
4) HARDWARE/SOFTWARE REQUIREMENTS
Hardware requirements
The basic hardware requirements are: [10]
An operating system such as Windows XP Pro or Windows Server
2003
A processor e.g. Intel
Hard disk drive
RAM A connectivity path to the internet
The stated hardware is needed so that our website can operate under heavy
load while being viewed by multiple users. Aside from this a back up is
needed to store data incase of an emergency or if the data needs to be
updated.
Software requirements
There are three basic ways to obtain software to build our website: [11]
purchasing software
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using software provided by an e-commerce hosting company
create our own system, writing the necessary code
Having the appropriate software will enable us to have a professionallooking website, which is easily customizable, easy to navigate and use, and
which works well with all browsers. It must also help us to keep track of all
purchases and customer databases. In case we design the software ourselves,
it should be easy to build and the resulting code can be tweaked when
needed. If we buy a software program it has to be made sure that the
software is produced by large and reputable company and has a good
customer base. There must be adequate build instructions, online tutorials
and help centers available.
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REFERENCES
[1] Baby Shower Games, Gifts & Favors; www.Babbee.com
[2] Revenue Model, Pg. 68, Chapter 2: E-Commerce Business Models andConcepts, e-commerce business. technology. society (2008) 4th edition by
Kenneth C. Laudon and Carol Guercio Traver
[3] Marketing a Service Business by George Rodriguez;
www.PowerHomeBiz.com
[4] 11 Essential Questions To Ask Before You Launch Your Product Or
Service by Susan Oakes; www.M4B Marketing.com
[5] Marketing a Service Business byGeorge Rodriguez;www.PowerHomeBiz.com
[6] Review chapter for the New Economy Handbook (Jones, ed.), in press;
Privacy and Security Issues in E-Commerce by Mark S. Ackerman and
Donald T. Davis, Jr.
[7] Ecommerce Security Issues; www. eCD.com
[8] Do Affiliations and Partnerships Help? By Dennis Michael Gannon,Marketing Communications Representative;Gate2Shop E-Commerce
Solution Provider
[9] Ecommerce Payment Systems; active webdezign ltd. Web design
London - A London based Web design agency
[10] www.EnvisionWare.com
[11] Ecommerce Software Packages; www.eCD.com
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