E-Commerce

UC21101BM

Group Assignment
BM011-3-2-ECOMM

Group Members
Shiyan Ahmed TP021758
Mustafa Hersi Suleiman TP022036
Maung Hmu Khant Htway TP021928

Lecturer
AW YOKE CHENG
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Table of Contents
Introduction........................................................................................................................................... 3
Company Background........................................................................................................................... 3
Website.................................................................................................................................................. 3
Problems with the existing website design............................................................................................ 4
How to overcome the problems............................................................................................................. 4
Features in the New and Improved Website.......................................................................................... 4
Benefits of E-Commerce to Nando’s..................................................................................................... 5
Online Ordering and Delivery System............................................................................................... 6
SWOT Analysis of Online Order and Delivery system.....................................................................6
Strengths........................................................................................................................................ 6
Weaknesses.................................................................................................................................... 7
Opportunities................................................................................................................................. 7
Threats........................................................................................................................................... 7
Order Fulfilment System................................................................................................................... 7
Electronic Payment System............................................................................................................... 8
Security, Privacy, Ethical and Legal Issues in e-commerce..................................................................9
Security Issues................................................................................................................................. 10
Security Measures............................................................................................................................... 11
Client Computer Security Measures................................................................................................ 12
Security Measures to be taken by Nando’s......................................................................................12
Encryption.................................................................................................................................... 12
Secure Socket Layer (SSL).......................................................................................................... 12
Firewall........................................................................................................................................ 12
Digital Signature.......................................................................................................................... 12
Ethical and Privacy issues............................................................................................................... 13
Legal issues..................................................................................................................................... 13
Conclusion........................................................................................................................................... 14
Reference............................................................................................................................................. 15
Appendix............................................................................................................................................. 17
Work Breakdown Structure................................................................................................................. 20

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Introduction
Since the invention of e-commerce in the mid 1990’s e-commerce has greatly influenced
consumer buying behaviour and the way in which organizations conduct their business. In other
words e-commerce has revolutionized how consumers and businesses interact with each other.
E-commerce has enabled businesses to move away from traditional brick and mortar business
model to click and mortar business models, where they can buy and sell goods and services
online. E-commerce helps organizations to directly contact with their customer, improving the
relationship with customers and reducing cost for the organization.

Company Background
Nando’s was started in 1987 by Robert and Fernando in south of Johannesburg specializing in
selling Portuguese style chicken. Nando’s start as a casual dining restaurant originated from
South Africa with Portuguese and South African flavors and was famous for their peri-peri
sauce. The word Peri-Peri came from the Swahili language which is the name for birds-eye
chilli. .Since then Nando’s has become an international chain of casual dining restaurants with
operations in over 30 countries. In Malaysia the franchise operations of Nando’s began in 1998
and currently operate 33 outlets across Malaysia. Nando’s has mostly establish themselves as a
casual dining restaurant, and operates a home delivery system called Peri-Medic in Malaysia
were customers can place orders via phone.

Website
It is well known that internet has become important part and the lifeline of the industry since the
invention, where it helped E-commerce become apparent. E-commerce or electronic commerce
involves carrying out a lot of business over the World Wide Web “www” with help of the
computer, which are connected with each other forming a network, and the definition for E-
commerce is “A type of business model, or segment of a larger business model, that enables a
firm or individual to conduct business over an electronic network, typically the internet.
Electronic commerce operates in all four of the major market segments: business to business,
business to consumer, consumer to consumer and consumer to business.” (Investopedia.com)

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Problems with the existing website design

The current website may be seen as user friendly as the layout and features of the website are
very interactive, however one of the major issues with the website is the way information is
presented in the website. For the first time users it is hard to understand the layout of the website
and where the information is in the website. This might discourage users from returning to the
website.

Another issue found in the website is the problem with navigating from one page to the other as
it takes too long to load the pages due to the amount of graphics used in the website. This may
discourage some users from using the website as visitors prefer websites that perform properly
and are easy to maneuver about.

How to overcome the problems

Therefore in order to overcome these problems I suggest create a new Nando’s front page user-
friendly where they set up taps with easy navigation to the specific destination or page and have
another page or link that shows and display the history page where there current page has added
a touch and flavour to the information which is the history of Nando’s.

Furthermore the current website pages have a lot of graphics where it make navigating from one
page to the other and takes too long to load therefore simplified the load faster by reducing the
amount of graphics used in the website, also we could replace the graphic text reader with
normal text reader by reducing the graphics or animations to avoid slow loading pages.

Features in the New and Improved Website

It is well known that online E-commerce defiantly has generated a lot new jobs and business
opportunities, so it’s more relevant to fulfil that gap. Nando’s have had lack of online ordering
system, and in market felled with competitors it’s very possible to lose costumers and not to live
up standards. Therefore implementing new featuring might help in that. Firstly reforming the
website design and implementing an online ordering system will attract customers and more
relevant where they will use their personal computers to purchase and that will increase our
sales. However that won’t complete without implementing online payment system in order.

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Anyhow the systems must match with certain standards online ordering system to capture the
potential online costumers. The standards are as follows:

 Search engines PPC programs (searchenginejournal.com)

 SEO services (searchenginejournal.com)
 Secure inline payments (searchenginejournal.com)
 Less graphic for faster page loading and page navigation
 Easy and simple interface pages

Benefits of E-Commerce to Nando’s

There are a number of advantages for Nando’s to use e-commerce to conduct their business and
contact and communicate with their customers. Some of the advantages of e-commerce are
explained in the table below.

Advantages of e-commerce
Increase Sales The people buying goods and services online are increasing
rapidly, therefore the customers base is wide and also e-
commerce will enable Nando’s to easily reach customers who
are geographically scattered, this will help improve sales.
Lowers the cost As Nando’s will be able to order raw materials for the
products based on the number of orders they receive or else
they could use just in time approach of ordering goods
leading to reduction in inventory levels. Also other costs such
as order processing, upgrading the menu, telephone calls and
manual data entering will be eliminated
Can operate 24 hours a day As the customers will be able to make orders from the
convenience of their homes it will help Nando’s to operate 24
hours a day.
Marketing and CSR E-commerce is a powerful marketing tool, advertising done
on the web are effective and can help increase sales. Also e-

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commerce allows Nando’s to build a better relationship with

their customers by providing opportunities to give feedback
and analyze the customer’s needs better and responding to
them.
Flexibility and Fast updating Nando’s can update their online menu and e-commerce
website easily and anytime, this helps Nando’s to change the
price of their menu according to the changes in the market
and can easily add new items to the menu allowing Nando’s
to be flexible in their operations.

Online Ordering and Delivery System

Online sale system means selling products and service via internet with using e-commerce
system. As in Nando’s Malaysia don’t have online sale system. So, we modify the website by
putting online sale system or online delivery system.

The customer will place an order through online sale site, where the customer will have the
option of ordering products from many warehouse like franchise restaurants.

At first, Nando’s don’t have online sale (or) online delivery system for their products. We
modify the Nando’s website with online sale system and order fulfilment system. If Nando’s
modify by putting online order system and order fulfilment system, the restaurant will be very
effective in restaurant market.

SWOT Analysis of Online Order and Delivery system

Strengths
 A new innovative product or service
 Location of Nando’s restaurant
 Quality of Processes and Procedures

Weaknesses
 Lack of marketing expertise
 Undifferentiated products or services

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 Poor quality products because of time surplus

 Damage reputation

Opportunities
 A developing market such as internet market
 Moving into new market that offer more profits
 Get joint endeavours and agreements
 A market evacuated by unproductive competitors

Threats
 Price war with competitors
 Government taxation
 Advanced access to channel of Distribution

Order Fulfilment System

Online fulfilment system is the system that has arrangement of steps in handing out in order to
satisfy the customers and making necessary changes in the register records. It will include
dealing out of revenues and order-adjustments of the records. It also called order meting out.
(Oxford Dictionary)

As soon as customer order, the information of order will reach to the warehouse of Nando’s
which mean the franchisee restaurant. When they confirm, and then will come to payment
system. At one point of time, that might be ordering fail and payment process errors. That will
cancel the order process. After payment done, warehouse will reply and the product will
delivered to the customers’ house. The processes are as follow;

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Source: http://www.yawlfoundation.org/yawldocs/orderfulfillment.pdf

After order fulfilling process, electronic payment system will come for the ordering process by
customers.

Electronic Payment System

Electronic payment systems ease the customers to pay online rather than going to bank and
transfer money to the respective restaurant.

As for the Nando’s Malaysia, we modify by putting e-payment system to do more effective than
ever. The payment process is shown in Appendix 1.3 (Payment System)

As shown in Appendix 1.3 (Payment System), Nando’s can provide its customers with different
payment options such as payment on delivery which means pay cash upon delivery of products.
Another payment option Nando’s can use is e payment system, were the customers are given the
opportunity to pay for the order using their Visa, Master Card, Debit Card or American Express.

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In order to process an order customer’s need to fill the payment forms and need to give some
information of the payment such as name, address, credit card numbers and other necessary
information as in Appendix 1.3 (Payment System)

Source: Apiit Slide, E-com payment System

Security, Privacy, Ethical and Legal Issues in e-commerce

There are a number of security and ethical issues related to e-commerce and conducting business
online. With the growth in the e-commerce the number of security threats and ethical and legal
issues have been increasing. The transmission of valuable information, such as electronic
receipts, purchase orders, payment data, and order confirmation, has drastically increased the
need for security and new automatic methods to deal with security threats (Schneider 2007).
Also the ethical and privacy issues such as the company’s ability to manage the confidentiality of
customer information, such as name, address and credit card numbers is also a major issue in
perusing e-commerce transactions and attracting customers to make purchase online. Therefore
in implementing an online delivery system Nando’s should take appropriate measures to tackle
various security, privacy and ethical issues.

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Security Issues
There is a number of security issues involved in conducting business through e-commerce
channels. The success of online delivery system for Nando’s depends on the company’s ability to
ensure privacy and confidentiality of customer’s information, protecting the information being
accessed or modified by third parties and preventing delays or ensuring the availability of the
service.

Some of the security issues that may affect the customer (clients) and Nando’s online sales
system, that Nando’s need to take into account are explained in the table below.

Security Threat Explanation

Cookies Cookies are small text files that web servers place on the web
clients computers to identify returning visitors (Schneider 2007).
These cookies may be used by third party to store the information
of customer’s confidential information such as login information
and also to analyze customer’s behaviour on the internet.
Therefore customers of Nando’s need to be careful about third
party cookies.
Viruses and Worms and Virus, worms and Trojan horses are malicious programs that may
Trojan horses harm the users computers and can sometimes be use to collect data
on client computers and worms spreads themselves through the
computer infecting other programs. Trojan horse can also attack
the data base servers of Nando’s and can harm the security of data
on servers.
Sniffer Programs A sniffer program is a program that taps into the internet and
records information that passes through a router from the data
source to its destination (Schneider 2007). Third parties can use
sniffer program to collect information such as credit card
numbers, names, addresses, user logins and password, which are
being transmitted between Nando’s server and their customers.
Masquerading or Spoofing is a security threat where web pages or entire websites
Spoofing are modified or copied by the attackers. The user or the customer

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is made to believe that they are using a secure connection as all

security measures and authentication seems legitimate.
Phishing Phishing is whereby the attacker is trying to retrieve user’s
confidential and private information, by copying the
communication of electronic commerce systems such as Nando’s.
Frequently phishing is done by sending emails to users, which
direct the users to attacker’s website where they retrieve
information of customers.( Jackobsson et.al 2006)
Database Threats and The Nando’s online delivery system need to store data and
Unauthorized Access retrieve product information from database connected to web
servers. These servers store confidential information about
customers and Nando’s and these servers are likely to be attacked
by third parties if not secured appropriately. Unauthorized users if
comes to know the username and password may download
confidential and valuable information. Trojan horse programs
hidden within database can also reveal information by changing
the access rights. (Schneider 2007).
DoS (Denial of Service) Denial of service attack is considered one of the most dangerous
Attack threat causes to e-commerce systems. As DoS attack prevents
users from using the service of the company will affect the
customer’s reliability and trust of the system.

Security Measures
Nando’s can use a number of preventive measures to protect the secrecy, integrity and
availability of their online delivery system and to ensure the customers transaction conducted
through their website is secure and safe.

Client Computer Security Measures

Nando’s can advise and educate their customers about the security threats that might affect their
home computers which may in turn become a threat to the transactions they conduct with
Nando’s. Nando’s can advice their customers to use anti-virus programs such as Kaspersky, Bit
Defender to help them prevent against malicious programs containing virus, Trojan horse and
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worms. Anti-Virus program also helps to prevent against phishing. Also using firewalls will
helps the customers to control access of unwanted malicious programs from running on their
systems. Customers can also use programs such as Cookie Pal and Cookie Crusher to block third
party cookies (Schneider 2007).

Security Measures to be taken by Nando’s

Encryption
Encryption is the coding of data into cipher text or unreadable characters that cannot be easily
understood or read by third parties. Encryption helps to ensure the security of the data transferred
between the customer and the server. Encryption of data or the information in the database of the
Nando’s system servers will also help to protect the security of valuable information saved in
servers, in case of unauthorized access to the servers.

Secure Socket Layer (SSL)

SSL allows both client and server computers to manage encryption and decryption activities
between each other during a web session (Schneider 2007). By using a SSL will help Nando’s
and their customers to send and receive confidential information, without third-party access to
the information send and received.

Firewall
Nando’s can use a firewall at the entry point of their network to protect untrusted users from
penetrating through their firewall and access their network. Firewall helps to protect
unauthorized users from accessing the network by controlling the packet traffic flowing through
the firewall.

Digital Signature
In conducting business online one major issue is to provide the proof or verification that the
transaction really happened and ensures the customers of a valid contact between the parties
exists. Digital signature helps to overcome this problem. Digital signatures have been invented to
ensure non-refutability; they not only protect the documents from tampering but also authenticate
their source and origin (Sison et al 2005). Some of the commonly used digital certificates are
Thawte, Entrust and VeriSign (Schneider 2007).

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Ethical and Privacy issues

The issue of ethics and privacy of customers is very much related to the collection of customer’s
personal information and using them for the advantage of the organisations without the
knowledge of customers. Nando’s online delivery system requires them to collect data of
customers when the customer makes an order online, confidential information such as credit card
numbers, telephone number and address are exchanged whenever an order is placed.

Therefore Nando’s need to make sure that the customers confidential information is used with
the knowledge of the customers and should notify customers before collecting any of the
customer information such as customer buying behaviour. Nando’s website should clearly state
out the terms and conditions of using the website and the privacy policy of Nando’s regarding
their customer information as in Appendix 1.1 (Home Page Design)

Legal issues
One of the major legal issues existing in e-commerce is the need for the parties to form valid and
legally binding contacts online. Transactions carried out online, often occur between parties who
have no pre-existing relationship, which raise concerns of the person’s identity with respect to
issues of the person’s capacity, authority and legitimacy to enter the contract (Shah.A and
Nagree.P 2010). Also Nando’s should adhere to the general laws in Malaysia concerning the
sales of goods and services and also laws such as cyber laws, intellectual property laws and
Digital Signature Act 1997. Nando’s should also take into account laws such as general privacy
laws and personal data protection act while conducting their business online.

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Conclusion
In order to be successful in creating a web based business model Nando’s need to create a
website that is attractive and user friendly and most importantly should take advantage of the
changing developments in IT by implementing an online order taking and delivery system.
Nando’s need to take into account important factors such as the security risks and the legal and
ethical standards that Nando’s should follow in conducting business online. The success of
online delivery system depends on how well Nando’s is able ensure their customers of security
and confidentiality in ordering through Nando’s website.

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Reference

APIIT/UCTI, 2008, E-Commerce Payment Systems, APIIT/UCTI

BHARATI AHUJA, 2011, the future of E-commerce and Online Business, [Online] Available
from http://www.searchenginejournal.com/the-future-of-e-commerce-and-online-
business/27002/ (Accessed 30April 2011)

ECOMMERCE EDUCATION, 2007, E-Commerce Benefits, [Online] Available from

http://www.ecommerceeducation.com/benefits-of-ecommerce.asp (Accessed on 28th April 2011)

INVESTOPEDIA, 2011, Electronic Commerce – ecommerce, [Online] Available from

http://www.investopedia.com/terms/e/ecommerce.asp (Accessed on 30th April 2011)

JAKOBSSON M., MYERS S., 2006, Phishing and Countermeasures: Understanding the

Increasing Problem of Electronic Identity Theft, Wiley-Interscience Chapter1

SISON.A.J and FONTRODONA.J, 2005, Ethical Aspects of E-Commerce: Data Subjects and

Content, University of Navarra, WP no.586

SHAH.A and NAGREE.P, 2010, Legal Issues in E-Commerce, [Online] Available from
http://www.nishithdesai.com/Research-Papers/Legal_issues_ecom.pdf (Accessed on 20 April
2011)

SUMANJEET, S., 2009,Emrgence of payment systems in the age of electronic commerce: the
state of art, [Online] , available at http://www.globip.com/pdf_pages/globalinternational-vol2-
article2.pdf (accessed on 23rd April 2011)

DAHL, A, HERTZ, C, HOLLEUFER, B.K, JAKOBSEN, J, TOFT, M.2004, An Online Sales

System, [Online] Available from http://martintoft.dk/projects/dat1.pdf (accessed on 23rd April
2011)

WEB DYNAMIC, Digital Marketing, E-commerce system: Tailored to the Australian business
environment, [Online] Available from http://www.webdynamic.com.au/ecommerce-system.html
(accessed 21 April 2011)

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ROSA, L.M, CLEMENS, S, HOFSTEDE, T.A, 2009, Order Fulfillment Process Model,
[Online], Available from http://www.yawlfoundation.org/yawldocs/orderfulfillment.pdf
(Accessed on 30 April 2011)

MARKETING TEACHERS, 2010, SWOT analysis of online sale system, [Online] Available
from http://www.marketingteacher.com/lesson-store/lesson-swot.html (Accessed on 30 April
2011)

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Appendix

1.1 Current Nando’s Malaysia Website

1.2 Suggested Website Design for Nando’s Malaysia

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1.3 Payment System

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Work Breakdown Structure

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Name Task
Shiyan Ahmed TP021758 Introduction, Company Background, Security,
Political, ethical and legal issues, and
Decoration of whole assignment, modifying
the website
Mustafa Hersi Suleiman TP022036 Introduction, Problem with Existing Website
design, How to overcome the problems,
Feature in New and innovative website,
Conclusion
Maung Hmu Khant Htway TP021928 Benefits of E-commerce in Nando’s, Online
sale system (or) online delivery system, order
fulfillment process, SWOT analysis of online
sale system and E-payment system.

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