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MGT601 Assignment Solution

The document provides an analysis of the financial, technical, and market feasibility for starting an online grocery store business based on the experience and skills of an individual named Mr. Ahmed, who has 15 years of experience in management and IT and is considered knowledgeable about computers. It outlines the initial expenses, product development costs, technical considerations around customer needs and product design, and how to evaluate the potential market and test demand.

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Maafiaa Tal
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Download as DOCX, PDF, TXT or read online on Scribd
721 views

MGT601 Assignment Solution

The document provides an analysis of the financial, technical, and market feasibility for starting an online grocery store business based on the experience and skills of an individual named Mr. Ahmed, who has 15 years of experience in management and IT and is considered knowledgeable about computers. It outlines the initial expenses, product development costs, technical considerations around customer needs and product design, and how to evaluate the potential market and test demand.

Uploaded by

Maafiaa Tal
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MGT601 assignment solution

ALI ABID

CONTACT # 0308-6919049

EMAIL:[email protected]

SOLUTION:

He should be do online business because he have 15 year experience of management and IT departments.

More he is consider as geek of computer.

So, in my opinion he can start online grocery store at small level.

The basic needs and feasibilities are following for this business.

So first of all we defined feasibility, its a controlled process for identifying problems and opportunities
,determining objectives describing situations defining successful outcomes and assessing the range of cost
and benefits associated with several alternatives for solving a problem.

Financial feasibility:

Online grocery store can be done by determining of total financial requirements and cost. It can be done
by preparing financial statements in the following way:

It can be done by preparing financial statements in the following way:

Financial requirement statement initial expenses .

Expenses in products development.

Legal expenses

Products testing expenditure

Fixed investments like building, equipments and machinery .

Patents ,operational expenditures.

Wages,sales promotion, distribution ,rent and taxes

Secondly financial resources and other cost should be categorized on the basis of periodicity into

Short term resources (those payable in a year) and long term resources like long term loans etc..

Technical feasibility:

In online grocery store business first of all he should know his customer demand and his need.

So by considering his demand and need he adopt the new customer demand.
And some are following:

The funcational design of the product .

Durability, safety and reliability.

Reasonable utility

Standardrizaion of the products .

Elimination of the unnecessary variety and stock in grocery store.

Examination of products and their cost relationship

In making this investigation Mr, Ahmed must understand that there are trade offs between technical
excellence and associated cost i.e. positive relationship exists between technical quality and cost.

Quality enhancement should not be carried beyond a particular point because it would cause cost
increase and lead to decrease in total market demand.

Product testing which include engineering study relating to tools and instruments works and product
development through blue prints .website controle etc.

Market feasibility:

Following process may be adopted to assure the online market opportunities of the grocery products.

Identifying the online market potential, it involves an estimation of both current demand of the product
and projection of future online market trends.

Major market segments and potential volume of purchases .

Estimating cost volume

The price must reflect the value of the product . Mr ahmed may not adopt a uniform price structure to take
care of sensitivity of the buyer to price change.

Market information can be collected from interviews, through mailing the customer to get feedback .

The following kind of data matrix may be quit helpful

a) Date relating to general economic trends


b) Market data relating to demand pattern and seasonal veriations.
c) Pricing data in example range of prices for same, complementary and substitute products ; base
price,discounting structure .
d) Channels of distributing both online and in retail base .
e) Data relating to competitors

Market testing
It is an important method of establishing the overall feasibility of a new venture, significant market
testing methods include;

a) Sales volume at different price level


b) Soundness of chosen market strategy
c) Unknown weakness that need attention
So these are the main feasibilities which Mr.Ahmed can apply and keep in mind to start his online
business(online grocery store).

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