Mr. Jon Nordmark, who is president and Chief Executive Officer, for eBags convinced four other people who are named Peter, Eliot Cobb, Frank Steed, and Andy Young, to join him to build what they call online luggage and travel products store. They saw the Internet as an opportunity to take their experience and to expand into a major retailer. The cost for each member was fifty thousand dollars, and they all agreed to work for free until the company starting making money. The company was struggling forcing Nordmark to take out cash advances on his credit cards and had to borrow money from his family members to include getting a second mortgage on his home to keep the company from closing down, although they did reach a point to where they were …show more content…
When Benchmark invested on eBags other venture capitalists saw a company that can grow and expand so they began to contribute with their investments which total 6.8 million. Finally in March of 1999 eBags.com was officially launched. As time went on more venture capital money followed which total over 30 million by November 1999. With the money coming in Nordmark wanted to make sure his partners focused on driving sales growth and boosting more brand offers. ebags sales growth grew to 98% per month, and they broadened their product offering from six to fifty six brands. By year 2001 eBags was named website of the year by Catalog Age. They did receive numerous awards to follow. eBags became the largest online providers of bags and accessories in 2004, they provide over 200 brands and 8,000 products. They sold over 2.5 million bags and continue to be a profitable dot-com company to survive and continue to grow. When we talk about the eBags case study and the functional areas the company used is mentioned which are the Marketing, Purchasing, Logistics, and Finance and Accounting, Human Resource, and Information …show more content…
They had to provide distribute channels and pricing, to include new product introduction for luggage, footwear, (Which to be discuss later) and other products. eBags develop strong relationship with four major manufactures. When it came to Purchasing, Managers had the power to be creative and with the prices and supply contacts. What they did was shorten the supply chains which save cost on inventory, and it brought the customer closer to the manufacturer. eBag use the drop-ship inventory model to the manufacturer by doing this inventory was managed by the manufacturer or distributor. eBags would place the orders to the vendors who then would shipped the product to the customer directly. Which became their Logistics styles, Mangers had to be creative with transportation who or how the material was handled, packaged, or what warehouse was being used and who responsible for shipping the product. With the drop-ship model it eliminated the need for inventory and lowers the cost than those of traditional retailers, It also allowed eBags to offer a much wider virtual assortment because of no restraints for floor space and they had no need to expand for a floor space. So when it came to the finance part Manager had to have finance officers who knows about or provide availability of capital Venture, have knowledge or create a conversion process or net present value, cash flow,
Finance has to make sure that there is enough funds in the bank at all times. The Finance Department has to communicate with each department. Finance is the part of the company that can give production enough money to more capacity, tell Marketing a budget for the year and ensure that the Research and Development team has enough money to do quality research on the products. Even though all the departments have to work together in some capacity, it's the Finance Department that is the glue to the company. Their relationship to each department is crucial because if the Finance team cannot communicate well with a certain department then every department is impacted to some capacity.
In this case analysis I will first show the requirements the company had for its financing. Then I will
What products and services the company are providing? Does the products vary from other e-commerce businesses? Is it worth it? What are they presently buying?
Thesis: Businesses deem financing necessary when they are just beginning, expanding, or recovering; Debt financing and equity financning have many advantages and disadvantages but also change the entire accounting method that is to be considered while running the business.
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
What is all the hype about? Why the huge valuations? And most importantly, is there a way for you to participate? If you have an e-commerce idea, how might you get started implementing it? If you have had questions like these, then this edition of How Stuff Works will help out by exposing you to the entire e-commerce space.
Ÿ Capital structure/investment - This information is taking from the Balance sheet, but also from the Profit and Loss Account. This is examining the sources of finance the company has used and also looking at it as a potential investment opportunity. There are certain features, which must be present if financial information is to meet the needs of the user. The two most important features are that: Ÿ The information should be relevant to those who are using it.
The financial manager is responsible for giving financial advice and support to clients and colleagues that will enable them to make good business decisions. Particular work environments differ considerable and involve both public and private sector organizations such as retailers, corporations, financial institutions, charities, and even small manufacturing companies and schools (Financial Manager, 2011).
and is especially popular among eBay customers. Fig.1 briefly illustrates Company’s business. The system enables its
The collaboration and carefully connected network was consistent with a culture that allowed the retail kingdom to remain flexible, profitable, and prosperous for two decades (Mehrmann, 2009). Their 4S business model – service, selection, savings and satisfaction where the customer has a choice of wide variety of merchandise, received 110% back if they found a better deal, 30-day money back guarantee and the customer service of high trained sales professional help the company establish a competitive advantage. Their point-of-sale systems facilitated quick transactions and took care of their inventory (Wells
E-commerce or electronic commerce is carrying out business communications and transactions through computers and over networks. It involves buying and selling of goods and services through digital communication. E-commerce also includes transactions on the World Wide Web and the Internet and means such as electronic funds transfer, smart cards and digital cash. E-commerce covers outward facing processes that interact with customers, suppliers and external partners such as sales, marketing, delivery, customer service, purchasing of raw materials and supplies for production.
Sources of finance are the different methods for a business to earn and obtain money. There are lots of ways to obtain money but two large basic sources of finance, which are the “owner’s capital” and “capital borrowed”. They are also called internal sources of finance and external sources of finance. In those sources, they are mainly divided in two groups, which are short-term sources of finance and long-term sources of finance.
E-commerce means that the company runs their business online, not like the traditional business way. We have to go the shopping mall or store to get goods that we need, E-Business is the enabling of electronic communication between any two or more participants in a business relationship. It helps companies capture abroad business field, cost saving, and market opportunity. E-commerce is an important factor that is making people’s lives more efficient.
EC offer an effective communication between supply and manufacturing, and companies are able to respond efficiently and quickly to demand. (Turban, 2006)
The information that has for financial department will determine the budget and the planning for the organization. In establish or development for the organization, the financial information that gathers will determine the size of the company.