Making business case – MIS

Starting a business is an achievement and maintaining one is a big challenge. Building a brand that people can trust is a task that most business aims to achieve. By doing so demand of the product is created since people can trust it (Hobson, 2008). For example a food chain restaurant such as burger fast aims at making sure that the burgers are tasty to the customers. This means that they have to consider their taste and preference. Research has to be carried out in order to know what people want. Once this is identified the business has to make sure that people are aware of their products.  By so doing the business faces sales problem. This means that something has to be done in order to increase revenue. This will happen if the demand of the products is created (Hobson, 2008). Due to technology, this can be made easier by advertising online. This means that a large number of people will be aware of the product, the benefits to gain from it and its cost.

	current	After advertisement
No. of staff	5	7
Salary $5,000	$25,000	$35,000
Average success rate	20 %	30 %
Sales per day	500	1200
Increase		700
Price per burger $ 5
Total expenses		$35,000
Yearly revenue after advertisement (250)		$875,000
Program implementation cost
Employees		2
Salary (5,000) each		$ 10,000
Internet cost		$30,000
Cost of installation		$ 20,000
Internet access devices		$50,000
Training		$5,000
Total implementation cost		$115,000
Total increase in revenue		$725,000

 

 

           Advertising online at a very minimal cost many people will know about the existence of the products. This means that demand for the products will be created.  The initial cost of starting the online advertisement will be high but the will be a growth of revenue over time (Hobson, 2008). The overall cost of running the business will be reduced as there will be a few employees managing the online advertisement. By an increase in the number of sales made every day the business will realize great profits.

 

Reference

Hobson, R. (2008). An investor's guide to small companies. Petersfield: Harriman House.