E-Commerce Project

1. E-Commerce Project Fifth Lecture Mohammed Antour t_mantour@svuonline.org

2. The feasibility study The component of the feasibility study The break-even analysis Suggested links Lecture outline

3. The feasibility study It is a study for the use of any business idea, with an emphasis on the expected problems. Here we answer on one main question, is our proposed idea is effective and worth to go forward with it. Before starting with it we have to specify when, where, and to whom the products or services is for. We must also identify our competitors and how much the investment amount to start the project, with the detailed working mechanism to guarantee the success of the project. The importance of this study is from Identify the needed tasks to do the work Identify the needed logistic tasks to do with the obstacles and its suggested solutions Identify ways to develop the market to convince stake holders to invest Set working foundation for future development

4. The component of the feasibility study Describe the business where we describe the product and how it will be delivered to customers Economic feasibility study for the market where we describe the current and possible markets with competitors and customers Technical feasibility study where we describe the working steps on the product starting with the row material, workers, transportation, and the working place The financial study and the amount of the starting finance amount with its source and ROI … Organizational study with the legal and organizational frame The conclusion with the success factors to the project

5. The break-even analysis It is a technique vastly used by production and finance administrations. It is depending on how we allocate the costs to fixed (not related to the amount of production) and variable costs (related to the amount of production), then compare expansion amount with the sells income to identify the amount of sells and production where the business reached a point of equilibrium with no lost or profit. Types of costs Fixed costs which is not related directly to the amount of production rent, administration costs… Variable costs which is related to the amount of production Direct costs which is directly related to the amount of production like row material non-direct costs which is not related directly with the production amount like production tools maintenance The semi-variable product which is related with the production but not directly like renting additional where house for storing

6. Break-even analysis Here we have the line OA the alteration of the income during the production phases, while OB shows the fixed costs. With the production increase the variable expenses increases. When the production amount isn’t big then the expenses are bigger than the income. The point P is where the amount of expenses are equal to the income and there is no profit or loss.

7. http://connection.cwru.edu/mbac424/breakeven/BreakEven.html http://en.wikipedia.org/wiki/Break_even_analysis http://tutor2u.net/business/production/break_even.htm http://en.wikipedia.org/wiki/Feasibility_study http://www.extension.iastate.edu/agdm/wholefarm/html/c5-65.html http://womeninbusiness.about.com/od/businessplans/a/feasibilitystud.htm Suggested Links

8. Thanks For Listening Questions