mkw1601 hd quality assignment - example 1

8/11/2019 MKW1601 HD Quality Assignment - Example 1

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Table of Contents

1.0 Introduction ..........................................................................................Error! Bookmark not defined.

2.0 The e-Marketplace .............................................................................Error! Bookmark not defined.

3.0 Organization ......................................................................................................................................... 2

3.1 Possible Internal Organization & Functions.......................................................................................... 2

3.2 Possible firms, suppliers, business partners............................................................................................ 3

3.3 Possible business processes......................................................................Error! Bookmark not defined.

3.4 Possible technologies ...................................................................................................................... 4

3.4.1 Hardwares, Softwares & Network and Telecommunications Technology ................................... 4

3.4.2 Payment systems and security issues ..................................................................................................5

3.5 Value of the e-business system ..................................................................................................... 7

3.5.1 Tangible benefits and alignment with company vision/mission/strategy/objective .................7

3.5.2 Intangible benefits and alignment with company vision/mission/strategy/objective...............8

4.0 Possible e-business issues .................................................................................................................... 8

4.1 Security and privacy issues........................................................................................................................8

4.2 Marketing issues ...........................................................................................................................................10

5.0 Conclusion ........................................................................................................................................... 11

6.0 Reference List................................................................................................................................12

7.0 Appendix.......................................................................................................................................13


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1.

IntroductionDoorstep Retails Sdn Bhd represents Malaysias largest online grocery shopping, offering a

wide selection of products for both household and corporate consumption. Inculcated in

November 2009, Doorstep provides its customers with the convenience of shopping through

its online website, www.doorstep.com.my for groceries, lifestyle products, stationery and

even catering services. The innovative shopping experience Doorstep introduced has

proved to be successful, as evidenced through its escalating revenue; earning RM1.5million

in 2010 and RM7.5million in 2011 (Singh, 2012). This was achieved by thoroughly embracing e-

commerce platforms wherein management, security, logistics, marketing, IT, customer

service and operations are integrated to reach maximum time and inventory efficiency.

2. The e-marketplaceDoorstep operates a typical pure play e-marketplace in which customers and seller carry out

different types of transactions and customers exchange goods and services for money

(Turban, King, Lee, Liang & Turban, 2012). The company conducts a private sell-side e-

marketplace, where products are offered to many individuals and businesses; a one-to-

many approach in e-commerce. Its B2B product offering include catering services and office

pantry supplies whereas household consumers can shop for groceries and lifestyle products.

Apart from its main operation of an electronic storefront, Doorstep also has plans to launch

an electronic mall in the third quarter of 2012 (Augustine, 2012). The latter is distinguished

from an electronic storefront in that it displays electronic catalogs from several suppliers or

stores (Timmers, 1998). Front-end activities in the company include electronic catalogs,

shopping cart, search engine, payment gateway and a user-friendly website. To

accommodate the operation of the business, back-end activities such as order fulfilment,

inventory management, payment processing and delivery are put into place.

3.

Organization

3.1 Possible Internal organization functions

3.1.1. Finance

Computes customer bills and receipts electronically and sends it to customer via electronic

medium- in Doorsteps case, customer emails. Facility of online transactions simplifies and

improves efficiency and accuracy of transactions.

3.1.2. Sales and Marketing

Doorsteps marketing strategies include penetrating social media such as Twitter, Facebook

and others to raise awareness and promote the brand (see Appendix 1-6). Web-basedanalytics and potentially, cookies are also used in online traffic monitoring and subsequently
http://www.doorstep.com.my/http://www.doorstep.com.my/http://www.doorstep.com.my/


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predict consumer behaviour. This enables Doorstep to conduct behavioural targeting and

collaborative filtering. On the other hand, graphic designers ensure that the website is user-

friendly and appealing to its customers. Once the electronic mall is launched, the sales and

marketing division will also be responsible for ad space offered to participating companies.

3.1.3. Customer Service

Apart from being able to contact Doorstep via its toll-free customer care hotline, consumers

are also able to field enquiries and feedback through its 24-hour order support website and

email. Prompt response is ensured by the company.

3.1.4. Logistics and warehousing

Doorstep implements a warehouse complete with office automation systems, thus allowing

for better inventory management. To maintain a high quality level, Doorstep refrains from

outsourcing warehousing. With an integrated system between customer order, inventory,delivery and packing, efficiency of operations are sharpened. For example, customer orders

are immediately checked against available inventory. The delivery team is also able to

organise items based on delivery times allocated by customers, thus ensuring they deliver the

right products to the correct customers at the appropriate time.

3.1.5. Public Relations

Doorsteps public relations team deals with media communication.Examples include radio

interviews on BFM 89.9 and press releases involving Doorsteps corporate activities.

3.2

Possible firms, suppliers and business partners

3.2.1. iPay88

Doorstep has a strategic partnership with Malaysian payment service provider, iPay88,

allowing them to accept a variety of secure online payment option such as credit card,

debit card and bank transfers when customers transact with the company. iPay88 also offers

developed payment plug-in for shopping carts.

3.2.2. Large retailers

With the impending launch of the electronic mall, Doorstep seeks to form alliances with large

retailers nationwide to extend its reach to customers in Malaysia. For example, when a

customer enters his/her postcode in Doorsteps web portal, the system automatically links the

customer to retailers in that area who supply products that the customer seeks.


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3.3 Possible business processes

3.3.1 Integrated accounting platform

Customer orders and payment are automatically updated in Doorsteps accounting

platform. The integration of finance and accounting allows for accurate and automatic

generation of trade statements, thus enabling retailers to make informed and swift business

decisions.

3.3.2 Order fulfilment

This represents e-commerces key to success; being able to give customers what they want,

when they want it and how they want it with the lowest cost (Ricker & Kalakota, 1999).

Doorstep integrates its distribution with transportation planning and scheduling, thus ensuring

optimal time efficiency. Doorsteps automated inventory system also allows the company to

continuously monitor and receive alerts should inventory fall below a prerequisite level. Thisprompts the company to immediately- and possibly automatically- contact suppliers for

restock (see Appendix 7).

3.3.3 Customer relationship management (CRM)

CRM oversees the aspect of customer relationships to improve loyalty and customer

retention, subsequently boosting a companys profitability (Baltzan, Phillips & Haag, 2009).

Doorstep embraces social media such as Facebook and Twitter to empower customers with

information and sales promotion, whilst incurring minimal costs. Feedback and enquiries can

also be directed to the company via discussion on Facebook or by emailing the 24/7

customer support.

3.4

Possible technologies

3.4.1 Hardware, software and network telecommunications technology

The widespread use of Internet in e-commerce can greatly reduce barriers of distance and

improve access to global economy (Graham, 2008). This is however, not accomplished

without the hardware, software and network communication technology that provides

virtual and physical integration of business components.

Hardware used at Doorsteps headquarters in Batu Caves includes computers, fax machines

and multi-peripheral printers. These machines provide Doorsteps employees with the ability

to carry out back-end operations.

Software employed at Doorstep includes web-based analytics that allows the company to

monitor online traffic and consumer behaviour. An online inventory management system is

also in place to control and oversee the level of stock-in-hand. It is further presumed that

Doorstep uses Flash and Adobe Photoshop software within its marketing department todesign appealing graphics on its Website. In addition, Doorstep implements a highly


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interactive website using Web 2.0, which provides customers the ability to share and

comment on information content in the Website, not to mention its Facebook and Twitter

account. Electronic data interchange (EDI) is also widely used in Doorsteps e-commerce

platform. EDI allows for the exchange of business documents with external entities, and

integrates the data from those documents into Doorsteps internal system, thus increasing

seamless information transfer.

The most prominent network and communication technology used by Doorstep is the

Internet, which represents the main gateway through which communication between

customer and company- and ultimately, revenue generation- takes place. Through the

Internet, customers are able to view products, conduct online transactions and provide

feedback to the company. An intranet, which employees of Doorsteps are granted access

to, allows for information sharing, collaboration, sales and customers relationship

management and project management (Bernard, 1997). On the other hand, mobile

commerce technology allows the Doorstep website to be viewed on mobile phones. This

provides greater convenience and access by Doorsteps customers.

3.4.2 Payment systems and security technologies

Doorstep offers its customers a variety of payment methods in recognition of different

customer needs and level of confidence. Three main payment methods are available; cash

on delivery, credit/debit card and Internet transfer.

Cash on delivery is the safest method from the perspective of the customer, where financial

exchange is done at the time of actual delivery of products. An issue that arises from this

payment method is fraud and prank callers. To mitigate the problem, Doorstep requires a

credit card number before a delivery is sent.

Doorstep supports credit and debit card payment to keep up with the increasing usage of

such payment methods online. Stringent rules such as security protocol and procedures

applied by credit/debit card issuers such as MasterCard and Visa must be complied with by

Doorstep. This may include having a certificate from an authorised certification authority

(CA) who provides PKI infrastructure for securing credit/debit card transfer. In addition,

Doorsteps credit card payment system requires customers to obtain a pin number from

respective issuing banks before confirming the payment (see Figure 1). To enhance

customers level of confidence in transaction with credit/debit cards, Doorstep also includes

the verified by Visa and Mastercard Securecode logo on their website (see Figure 2).


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Figure 1: Pin code request prior to confirming payment via credit card.

Figure 2: Payment security in Doorstep.


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3.5 Value of the e-business system

3.5.1 Tangible Benefits and alignment with company vision/mission/strategy/objective

Doorstep gained tangible benefits such as time and cost efficiency. Shopping online reducesthe need to print catalogues and excessive packaging, thus reducing cost. Furthermore, the

Go Green concept Doorstep practices reduces the need to provide plastic bags as

groceries will be sent to customers doorstep in a huge basket - another cost saver. Effective

management by the company also reduces the need to hire excessive employees; Doorstep

has a medium number of staff and a management team, which has more than 34 years of

experience in retail and customer management locally and internationally. All these align

with the companys vision of being a cost-efficient company.

The e-business system further enables Doorstep to enhance its customer relationship through

viral marketing via social networks. For example, Doorstep posts special coupons and

announces latest sales on their Facebook page. It also manages a blog in their website,

where information on current product offerings, media news and also guest bloggers are

featured to write a review about Doorstep. These will concurrently increase interaction with

customers and instil brand awareness. Newsletters will also be sent to keep customers well-

informed. Furthermore, Doorstep runs a loyalty programme to award redemption points to

customers, in line with their visions to build an affirmative customer relationship base.

The e-commerce platform that Doorstep operates also reduces the amount of variable costs

such as rental and electrical fees and excessive amount of staff. Cost savings will be instead

allocated to hiring experienced staff. For example, Doorstep hired a former Tesco UK

personnel with experience in handling online services. This would help Doorstep learn the

best methods to reduce mistakes in e-business. A strong logistics team also entitles Doorstep

to greater control over delivery where in-house handling provides an added advantage of

efficiency when dealing with customers. Indirectly, these cost savings through better usage

helps Doorstep garner more profits. Apart from that, Doorstep also serves as a B2B website

delivering goods such as pantry supplies and office equipment to companies. The nature of

companies who buy in bulks also increases Doorsteps profits. Therefore aligning it with their

vision to maximize long time return to shareholders and employees whilst maintaining value

for customers (Doorstep, n.d)


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3.5.2 Intangible benefits and alignment with company

vision/mission/strategy/objective

One of the intangible benefits gained by Doorstep is high quality of work life which is

described as one that includes a challenging, interesting and responsible job.

Communication is the key for Doorsteps success where the company practices downward,

upward and horizontal communication (Simpson, 1959). Downward communication in

Doorstep provides a channel for directives, instructions and information to organization

members. On the other hand, upward communication allows Doorsteps staff to provide

feedback of information to the top management. Finally, horizontal communication allows

Doorstep to enhance coordination. Through effective communication, employees have

greater inclination towards their work and take initiatives to speak out and are heard.

Doorstep strives to improve customer service by providing a customer service hotline andemail account specifically for customer service and technical assistance. Doorstep also

provides a page on Frequently Asked Questions (FAQ) to assist customers. This aligns with the

companys mission to offer products with exceptional service. Besides that, Doorstep also

employs highly trained support and delivery staff to fulfil customers requested time slot for

delivery via use of trucks/vans. These vehicles will make one round trips to cover specified

routes. Indirectly, it also reduces environmental impact.

Furthermore, Doorstep would be able to improve their strategic position where it allowspeople to shop 24hours a days, 7 days a week from their homes. Online shopping provides

Doorstep customers easier product navigation in a short span of time. This provides a

competitive advantage over offline grocery stores such as Carrefour and Giant. This would

be able to align with their mission of being indispensable to customers as their hassle-free

alternative (Doorstep, n.d.).

4. Possible e-business issues

4.1 Security and privacy issue

The threats faced by Doorstep are not the same as those faced by storefront operations in

terms of method, scale and geographical area. Keeping up with risk is challenging due to

Internet technology moving at a rapid race. These can happen due to developments made

without careful consideration to security. Alan and William (2002) state that an important

security issue in e-business is buying, selling and transacting money via Internet. One of the

issues is primarily privacy and confidentiality. Since data travel over the Internet goes through

numerous intermediary sites and routed considerably before reaching the final destination,

information might land in the hands of wrong persons.


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Another issue Doorstep faces is theft and fraud. Many companies do not have adequate

control to prevent and detect potential breaches. This would pose threat to Doorsteps

customers as personal or credit card information and passwords could be obtained.

However, this can be mitigated by implementing security plans such as card verification

number (CVN). Here, fraud is detected by comparing the 3-digit verification number the

customer gives with the information from the cardholders issuing bank (Ratnasingam, 2003).

Besides that, safe harbor rules offer services such as feedback forum, insurance and ID

validation could be implemented into the system.

Doorstep could also face denial of service attacks which would bring down the service

offered to customers. This would eventually cause losses of revenue when a companys key

transaction server is brought down and customers cannot place orders, ultimately leading to

negative publicity. Another concern for Doorstep is repudiation where business or customersdeny that they made the transaction which in reality they did. This is hard for Doorstep to

make verification in this issue thus proper controls are needed to ensure integrity and non-

repudiation.

Doorstep mitigates these risks by assuring customers that they provide a safe and secure

purchasing environment through strict security and privacy policies with no hidden cost and

ensures confidentiality and security during purchase (see Figure 3). Besides that, Doorstep

would not store customers credit card information as all transactions are handled by trusted

merchants approved by banks. Customers also have the option of paying cash on delivery

with a minimum RM50 order.

Figure 3: Doorsteps security of information.

Source:http://www.doorstep.com.my/
http://www.doorstep.com.my/http://www.doorstep.com.my/http://www.doorstep.com.my/http://www.doorstep.com.my/


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4.2 Marketing Issues

It is important for Doorstep to assure customer satisfaction of the quality and freshness of its

products to ensure repeat purchases (Zeithaml, 1993). Customers would only return to

Doorstep and repeat purchase again if they believe that the site is the best option in

purchasing goods and whether they feel a connection to Doorstep. This connection is a

function of web design, as customers see and interact with a company via the web

interface (Kaplan & Norton, 1996). Therefore, Doorstep has been adopting systematic Quality

Control System of product supplies to keep them fresh.

Doorstep also faces marketing issues such as consumer trust. Mukherjee and Nath (2007)

state that trust is the central tenets in building successful long-term relationships in e-

businesses. Companies need to convince the public that shopping online is a safe method

as they might face user resistance. This is due to some companies not fulfilling their promisesin delivering goods. Therefore, Doorstep requests some loyal customers to post testimonials to

reduce new customers doubt.

In tandem with the growing demand of shopping online, the number of retailers providing

online services has also increased. Doorstep faces competition as customers can easily

compare prices and find alternatives over the Internet. Besides that, traditional hypermarkets

such as Giant will remain one of the competitors as goods are perishable and would reduce

the risk of getting default goods. However, Doorstep mitigates this issue by using Quality

Control System, which reduces the level of default goods.

The other issue of Doorsteps delivery coverage is shown in Figure 4. Doorstep has not fully

penetrated the whole Malaysia, thus limiting their exposure to public. However, Doorstep will

try to widen their scope of delivery to create brand recognition.

Lastly, segmentation is another key issue for Doorstep. Since the older generation prefers

purchasing goods from traditional grocery stores, Doorstep should target the younger,

working adults and technology literate generation. Therefore, it is vital for Doorstep to

strengthen their marketing efforts to better reinforce their presence as an online grocery

leader by using strong advertisement and also better educate the public about the benefits

of online shopping (Fulgoni & Morn, 2009).


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Figure 4: Coverage regions by doorstep.com

Source: http://www.doorstep.com.my/

5. Conclusion

As the dust from the boom and bust has settled, we realize that e-business didn't bring the

hyped overnight revolution, nor did it die with a whimper. Instead it brought about a

fundamental evolution in the way Doorstep operates and conducts business with their

customers. Online shopping is one of the best remedies for time and cash management,

especially during festivals. The convenience of online shopping is not easily beaten. Not only

can customers easily check the pantry to see if they have forgotten anything important, they

can modify the virtual cart easily right up until they go to the checkout page. Most

importantly, it has been found that there has been a positive change in customers

perceived trust and satisfaction with Doorstep. However, it is crucial to provide value to the

customers through service and goods provided, improved customer service, build customers

trust, avoid the misuse of technologies, protect customers privacy and maintain the

companies reputation. In conclusion, in order to create an effective infrastructure for

securing e-business, Doorstep also had comprehensive development of several elements

including laws, policies, industry self-regulation, technical standards and law enforcement

which are the key elements of their success.

(2310 words)
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6.0 Reference List

Alan, D. S. & William, T. R., (2002), E-Lending: Foundations of financial and consumer

marketing in an information intensive society, Journal of e-Business and Information

Technology, 3(1), 5-19.

Augustine, S. (2012, February 10). Foot in the door.Malaysia SME, p 22-23.

Baltzan, P., Phillips, A. & Haag, S. (2009). Business Driven Technology (3rdEd.). United States of

America: McGraw-Hill Irwan.

Bernard, R. (1997). Corporate Intranet(2nded.). USA: John Wiley & Sons Inc.

Fulgoni, G., & Mrn, M. (2009). Whither the click? how online advertising works.Journal of

Advertising Research, 49(2), 134-142.

Graham, M. (2008). Warped geographies of development: The Internet and theory of

economic development. Geography Compass, 2(3), 771-789.

Kaplan, R., & Norton, D. (1996). The balanced scorecard translating strategy into action.

Boston: Harvard Business School Press

Mukherjee, A. and Nath, P., (2007), Role of electronic trust in online retailing: A re -

examination of the commitment-trust theory, European Journal of Marketing,

41(9/10), 1173-1202.

Ratnasingam, P. (2003). Trust and Business-To-Business E-Commerce Communications and

Performance.Advances in Business Marketing and Purchasing, 12, 359434.

Ricker, F. & Kalakota, R. (1999). Order Fulfillment: The hidden key to e-commerce success.

Supply Chain Management Review, 8(11), 60-72.

Simpson, R. L. (1959). Vertical and Horizontal Communication in Formal Organizations.

Administrative Science Quarterly, 4(2), 188-196.

Singh, K. (2012, May 25). Doorstep puts e-commerce in bold. Digital NewsAsia, 8.

Timmers, P. (1998). Business Models for Electronic Markets. Electronic Markets, 8(2), 3-8.

Turban, E., King, D., Lee, J., Liang, T.P. & Turban, D. (2012). Electronic Commerce 2012 (7th

ed.). USA: Pearson.

Zeithaml, V., Berry, L., & Parasuraman, A. (1993). The nature and determinants of customer

expectations of service.Journal of the Academy of Marketing Science21 (winter): 1-

12.


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7.0 Appendix

Appendix 1: Sales and marketing function of Doorstep; advertising on Facebook and Twitter.


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Appendix 2: URL marketing used by doorstep in search engine

Appendix 3: Radio Advertisements and TV commercial.

Appendix 4: Advertisements on tax


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Appendix 5: Viral marketing used by Doorstep (Facebook, Twitter, Blogger)

Appendix 6: Mass media marketing advertisements


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Appendix 7: Oder fulfilment process in Doorstep.

Customer logs intoDoorstep account.

Customer selects andadds desied product into

shopping cart.

Online inventory systemchecks for availability of

stock.

Customer proceeds to

checkout. Deliveryaddress is verified and

delivery time slot isselected.

Customer confirms order.Email with order details

and confirmation numberis sent to customer

Customer selects

payment mode: COD,credit/debit card, bank

transfer.

Doorstep's warehouse is

notified of new order.

Items are packed andsent to delivery dock for

collection.

Doorstep's delivery vancollects the parcel and

sends to the customer.

mkw1601 hd quality assignment - example 1

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