The achievement of Kool keyrings will depend on the effectual and accurate production of goods and services. However the speed and efficiency of the products is also a great factor that must be considered. Today businesses totally depend on electronic devices to help them through out their regular day for example a bank has an automatic calculator to calculate to avoid wasting staff times and to also speed up the process of the bank. To make it easier for our business we will also use a range of technology.
We have decided this because it will increase the phase of productivity and also increase the amount of production and will be less time consuming and more cost effective. “Computers have led to a worldwide information network available to everyone. Hand held apparatus means anyone can communicate with anyone from anywhere at any time as well as with any of the 3,000,000 public databases available worldwide”. http://atschool.eduweb.co.uk/girvanac/Millium/techset.htm the information above shows that computers are a great source of communication and the internet is a foundation for communication as it will provide me with data and clear information of themes, types of products and other information.
We will be using various different Microsoft Office Packages and below are some main advantages:
- When we purchase we can use any product at any time and can also use them all at the same time.
- We can also use the programmes to complement one another for example we can create tables in Microsoft excel and then analyse them in Microsoft Word.
- All the programmes are very easy to use and once we know how to use the rest but even then if there is any problems there is a little Microsoft helper of every package to guide and give advise on questions:
Spreadsheets (Microsoft Excel):
A spreadsheet is an array of rows and columns whereby data can be added. The most useful thing about using a computer and spreadsheet is that you can experiment with numbers without having to re-do all the calculations. And also the computer does the calculations all by itself automatically Spreadsheets are made up of
- columns
- rows
- cells
In each cell there may be the following types of data
- text (labels)
- number data
- formulas
In a spreadsheet the COLUMN is defined as the vertical space that is going up and down the window. Letters are used to select each COLUMN’S location. The numbers and the letters were particularly useful for when we were producing our graphs because when we want to create our graph it asks whether the table must follow the column or rows.
On a spreadsheet we are able to type three kinds of data:
- Labels which are text entries and they do not have a value associated with them. We typically used labels to identify what we are talking about.
- Another type of data we could add was Constants which are entries that have a specific fixed value. For example the fixed costs of our business were easily typed.
- We could also produce graphs from the data that we had inputted. For example the break even we first said what all the points are and the made that into a graph.
A special button that we used was the auto sum button. The AutoSum feature makes it trouble-free to total rows and columns using the SUM() worksheet function. There is a special command button on the standard toolbar that will allow us to insert the SUM() function very quickly. This command button is known as the AutoSum button.
We can swiftly enter the average, count, max or min functions by expanding the drop-down menu as shown above. Below is an example of when we used the auto sum button to calculate the Output, Fixed costs, Variable costs, Total costs and the total revenue.
We have used a spreadsheet to conduct the following documents:
- Cash Flow
- Budgeting
- Profit Forecasting
- Break Even Analysis
- Estimated Production level
- Balance sheet
- Gross Profit
- Projected Trading and Loss Accounts
Cash Flow forecast:
An example of a cash flow is shown below:
February
March
INCOME:
Loan
�24.00
�0.00
Shareholders
�30.00
�0.00
Revenue/ sales
�63.75
�63.75
A) TOTAL INCOME
�117.75
�63.75
EXPENDITURE:
Raw materials
�46.00
�0.00
Postage and packaging
�7.85
�0.00
Advertising
�1.00
�1.00
Loan repayment
�12.00
�12.00
B) TOTAL EXPENDITURE
�66.85
�13.00
C) Net cash flow
�50.90
�50.75
D) Open Balance
�54.00
�50.90
E) Closing balance
�50.90
�101.65
This is an example of our cash flow forecast and I had calculated the data shown opposite using Microsoft Excel. In the cash flow if there are any changes I can easily alter them as we can add the data and then use the auto sum button to make calculation. If we were to extend the table to one year we can by going on the spreadsheet and adding extra labels and data.
POSITIVE CASH FLOW
Break even analysis:
We were also able to create a break even analysis. This means we can also change our variables for this is shown below because we actually intended to have our average selling price at �0.85 but due to the ease of Excel we could change it to �1.00 and we also changed the average cost:
Average Selling price
We then changed it to:
Average variable cost
Changed it to:
�0.85
�1.00
�0.49
�0.70
Break Even
This graph shows that when we are changing our break even point our break even would become lower than the previous break even. This is because we have changed our variable cost this was much easier for us as we used Microsoft Excel. The graph illustrates that we will break even at �40.00 which is less than our previous break even. This means that we will need fewer customers to break even and to attain a sufficient amount of profit.
Trading Profit & Loss Account
The profit and loss account will alter if we change the sales and the cost of sales. If we get to sell less keyrings than the predicted amount then our net profit will increase therefore the pie chart below will have to change again however this will be easy for us as we will have the data stored.
Another software that we had used was Microsoft Word
Microsoft Word allows a business to do several things, firstly they are able to extract, manipulate and change text. They can also type up this like a legal document such as the memorandum of association shown below.
We used Microsoft to create our posters as we could add fancy text from word art.
Many business use Microsoft Word to produce Memo’s and other important documents such as minutes. However these are our long term targets to note down minutes and also to create memo’s instead of verbally calling for a meeting.
Example of a Memo
Example of report
The Microsoft document allows me to do various things as it has a lot of useful toolbars.
The main options I used were:
1. New page – this was when I opened a new page even though I was doing other work.
2. Open button- this allows me to open any documents that are saved.
3. insert a box, arrow or any other object
4. I can also check my spelling as I go along this is essential when I am doing a poster as I need my vocabulary right.
5. I can also change the colour of my text to make the important text stand out.
6. I can also print documents using the printing button.
7. I am also able to insert tables and graphs in my document.
Accounting software:
Computers are used by all sorts of businesses in various different ways and I have seen there are many advantages of this:
1. The computers improve accuracy especially when we type a lot of text or data.
2. Computers also help improve control of the funds that we are dealing with therefore this will make our business more accurate and hopefully successful.
The internet
The Internet is a worldwide, publicly accessible series of interconnected computer networks. In the modern world today the internet is providing a magnet for businesses as the internet is used a lot and people generally do everything online from buying shares to buying their shopping online. The internet is also a means for searching for information. I had used Google; which is a search engine on the internet to receive some secondry data.
E-mail is an essential part of our business as we had to use it to make sure every member had the main same documents such as the Memorandum of Association and Deed of Partnership. All we do is simply save a document then attach it and type the email address of the receiver and click the send button and instantly the Email is automatically sent. Additionally anyone connected to the internet can instantly get automatic connection to Email. Email allows us to:
1. Have faster access to work need urgently.
2. The message can instantly be seen on screen which means it doesn’t have to be printed therefore paper is not being wasted therefore this implies that we are considering environmental issues.
However there are some disadvantages of using Email
1. E-mail is slow at times
2. message may be lost or distorted
3. the person may not know how to use email
E- Commerce
E-Commerce is about setting a business on the Internet, allowing browsers to access a website, and go through a practical catalogue of the products or services provided by the company.
E-Commerce is when one can save money, are online 24 hours-a-day, 7 days-a-week, the don’t have to worry about traffic jams, the shopping crowds, carrying overloaded heavy shopping bags etc. And for the company it still is business but in an easier way. These commercial activities consist of transactions involving the Internet, telephone and fax, electronic banking and payment systems, trade in digitized goods and services, and electronic purchasing and restocking systems. There are many examples of E- Commerce businesses such as Ebay which is a worldwide business that is viewed globally all over the world. Ebay allows individuals to trade their own products to the E-Bay community. Our long term objective is to set up an online presence this will benefit us as we will be advertising globally and we will be open 24/7.
Legal issues to consider:
Working in a business environment encapsulates many rules and regulations one must abide by. This therefore means that if there are different ways of working in a business there are going to be many issues that will be associated with this. Some of these problems are listed below:
1. It has been deduced that many individuals who work for a firm who uses the computer a lot say they find it difficult to look at a screen without getting a headache or blurry vision.
2. Others say they have developed repetitive strain injuries
Therefore to make sure we consider the above points we will set these as clear guidelines, we will state that employees sit comfortable on the chair in an L shape and don’t slouch and also we will use protection screens in front of our computer screens to avoid headaches and sight loss.
Many businesses have to consider important data protection. This is an act which controls the use of computer information which relates to ‘individuals’ and the condition of services in respect of such information.
There are 8 ground rules our business will set:
1. Data must be held only for precise lawful purposes
2. Data should not be processed in any other way than known or stated.
3. Data must be sufficient, relevant and not too much for those purposes
4. Personal data should be accurate and kept up-to-date and private
5. Data should not be obtained by our business for longer than the chosen time.
6. If an individual wishes to access their data they should in all means.
7. Data must be obtained ad processed moderately and legally
8. Data must be protected with suitable security against unauthorised view.
To make sure these rules are met and not broken we will monitor them individually.
How Kool Keyrings will use software to aid decision making
Our business Kool Keyrings has applied all the information above in the business.
Overall we will be using Microsoft word to produce letters if we need to get premises permission or need to write a letter to the investor or loan giver we can easily write a professional letter. We will also be using spreadsheet to create financial information such as the Cash Flow Forecast, Gantt chart etc. When we start selling our product we can use this to see whether we are making a loss or profit.
We will also use the internet to check upon our competitors to deduce their strengths and weaknesses and to take their weaknesses in our hand. We will also use the internet to gain secondary research to back up our primary research. In the long term we may wish to set up an online business as this will increase our market and profit.
We may use to the internet to advertise our product in the future. We will also e-mail will increase communication between members and other people linked to our business e.g. Investor. To further increase our business we may consider using Front page or Dream weaver to create a professional website to sell our products.
