Download Technologic and Economic Analysis on Exploiting the Project of

Technologic and Economic Analysis on Exploiting the Project of
Consuming Electronic Products in Colleges
Guo Zhanglin, He Hongjuan
(School of Management, Hebei University of Engineering, Handan, P.R.China, 056038)
Abstract Overdrawing the subsidy which should be given to the undergraduates every month, taking the
colleges in Handan for example, we plot a project which is in the type of e-commerce but different from
the traditional e-commerce. Through founding a net shopping channel which relies on the agency of the
college it change the invisible fund into concrete products and satisfy the buying need, which can realize
the ‘double success’. In this article, we discuss the feasibility of the implement of this project and
emphasize on the risk analysis.
Keywords consumption- in- advance, e-commerce, risk analysis
1Introduction
As the popular of the information industry and technology industry, the electronic and intelligent
products have been very familiar to people, which include many kinds not only the small dictionaries or
U-disk but also the mobile phones or computers. No matter how we think of it, we can see that the
consuming consciousness of postgraduates has developed stronger and stronger with the progressing of
scientific information. Through the research results that we have done in some colleges in Hanshan
district of Handan, we can see that the number of postgraduates using such product is very large from
grade one to grade four and it is even nearly saturated in grade four. At the same time, among the people
who don’t have them, about 80% of them incline to buy such products but some reasons, above all the
money aspect, restrain them to realize their hope. In the research, we know that more than 95% of them
consider asking their parents for money to buy such things. So to the poorer postgraduates, these
products seem very luxurious. From this point, we consider if we can have postgraduates buy their
necessary products with their own. In the other word, we use some no-risking and warranted financings
to achieve the postgraduates’ consumption of these kinds of products. Then we think of the subsidy,
which is doled every month.
Hanshan district in Handan is the college center in Handan.But for the economics in itself the level
of people’s consumption, the postgraduates’ consumption is largely controlled by the economy itself and
the main source of buying things is their families. Take one college for example, the average subsidy
once a month is 45 R.M. To the postgraduates, this amount is very small to buy any thing. We just use
this strictly provided money to realize a relative large buying. We overdraw the subsidy of the whole
college years to buy the electronic products that can satisfy the postgraduates and realize our return.
2 Project founding and implement
This project, we can call it a sales company, is founded as colleges’ agency. It organizes a web to
sell electronic and intelligent products and through making use of the high technology to build the
software work agency from Handan to the cities that produce these products. It satisfies the need of
knowledge economy and instead the tense work with low information. It makes use of the college’s
courage to tap the market and master the selling. Through this web, postgraduates can be lined it in time
and the company can send the products to the customers as soon as possible. The benefit of this kind of
selling is various: first, the electronic and intelligent products belong to the e-commerce and are the best
sellers. These kinds of products have the same character normalization, that is, what consumers have
seen accord with what they have experienced. Furthermore, because the lower cost than the classical
transport, the price is much lower. Second, from the point of the found of the company, this kind of
product makes best use of the consumption in advanced. The superiority of traditional sense e
–commerce can’t be counted and the key is as fallows:
(1) Improve the efficiency and decrease the cost of trade. Through the web the company can find
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the best and right suppliers. Furthermore it can save many processes and decrease the procure cost.
(2) Reduce the stock. It can be lined with the associate on the web, so the stock can be reduced
much. It even realizes zero stock. This can reduce the cost.
(3) Add the chance of business. To the company, the electronic business can supply all day’s serve,
so it longings the working time. The length and counties do not limit the electronic business. The web
operation can expand to the market that classic ones can’t reach.
(4) Reduce the relying on the material. The classic company must be founded on some basic
material such as the equipment of stock, the pavilion of new products, and the sales department and so
on. But the found of web shop can reduce some basic material and save the cost of basic material
building.
All of these are the traditional e-commerce, but ours are not the same with them completely.
Postgraduates have to enter their own passwords, which are given by our company when they buy
products. When the code is applied, the future subsidy will not be allocated to the primary accounts of
them. Instead it will be put into the company’s account directly. It means the company pay the student’s
subsidy of the four years in advance, then let them buy our company’s goods which the company gets
directly from the producers, thus realizing the propose of making profit and making up for the interest
gap.
When conflicts happen during the process of purchasing, we follow the policy, that is “return the
redundant and fetch the shortage”, that is to say we will return the redundant money if the postgraduate
don’t use up it otherwise if the spending goes beyond the overall subsidy they will using their own to
meet the left. If the postgraduates don’t want to spend these money in advance, our company will take a
role as a bank on net. When the subsidy from education department is allocated to school, our company
will put the money to the original account .All these relations will be seen in the Fig.1. As how to
construct and operate the net, we omite.We will mainly discuss its significance of technical economy
and make the analysis of it.
3
4
1
2
6
5
7
Fig.1
the relations between the company and other objects
1-----the company
2-----postgraduate
3~5-----suppliers
6----bank
7----college
3 Risk analysis
Every company’s existence is companied with risk .The success to carry out a project plan lies in
how to analyze the risk and having a cool mind of the company’s ability to undertake risk, don’t merely
lies in your courage to operate it .As to our company the risks can be classified into the following kinds:
3.1 The risk of policy
That means the government especially and the education department may do some inference in
policy by making some documents to confine school to develop this kind of company .We can see from
macroscopic, that our country and education department are creating advantaged environment for
starting enterprise .our school –business model is a thoroughly digital innovation to the model of school
management, it will promote the social reformation of our school ’s logistics .So it is likely that such
companies will be founded widely in colleges and universities .In the process of adopting and spreading
this plan ,the education department will consider all the possible factors ,this will certainly accelerate the
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process of generalization .As to Handan if this model is affirmed there will be a trend to spread it . So
we should follow the step of education department .To carry out the plan step by step and reduce the loss
this kind of risk may bring, such matter we should pay much attention to.
3.2 The risk of market prediction ability
That is to say whether we have deviation in the insight of postgraduates and suppliers, whether we
have incompletely defined the market need .The degree of the deviation decides whether our plan can be
spread or not. First we should make sure that the material for market study is got from reliable source.
Second in the process of making plan we should invite some respectable experts to help us make
decision in different stages of strategy .As to the special environment of our project, we should contract
with postgraduates as much as possible, thus we can not only improve our company ’s credit and the
precision of prediction but also solve postgraduates’ difficulty in economy and give them a chance to
improve their practical work ability confronted in society in the future .So we should try our best to take
advantage of our strongpoint to control it .
3.3 The risk of market operation
Talent is the key whether we can success depending on whether we have a manager who have a
wonderful management ability and can control the market opportunity smoothly, and also the decision
of high level is carried out completely is necessary .We should absorb the excellent postgraduates in
school and make a sires of measurement to ensure our plan carried out smoothly.
3.4 The risk of taking care.
This refers mainly to the maintenance of net, the safety of transaction, the secrecy and relationship
of bank system and the avoidance of vicious damage. Because this project doesn’t mention the study of
high technology, so there is no risk of study .we should set up a department to carry the function of
monitoring including the collection of data and integration of information.
3.5 The risk of financial
Here the risk mainly lies in the cost control, even if this project isn’t for profit, but in order to take
up a big market share and increase the products sale, it is necessary to lend an amount of money from
bank to maintain the normal transaction. Certainly school will withdraw amount of money from the
provision as our company’s cost .Now, let us have a look of the situation of capital operation .We also
take the college of Hanshan as an example, and suppose the subsidy of every postgraduate is 45 R.M per
month, and every year the subsidy will be allocated ten times, now let us overdraw the four years’
subsidy, it means we will give one postgraduate 1800 R.M at one time. From the point of time value of
technology and economy, suppose the rate of interest is 5.7%, we can get the present value of the four
years’ subsidy by formula one:
NPV = A( P / A, i %, n)
(1)
A means the money given every year
means the present value
i means the rate of interest
n means the times of giving subsidy
So we can have
—
—Ｐ
—
—
NPV = 450 × ( P / A,5.7%, A) = 1596( R.M )
It means to one postgraduate he can get extra 240 R.M as preference, the later the time you use
these money, the less the sense of consumption in advance, because as the falling of cost of the same
kind product, the price will lower relatively .By the same method, we can get the final value of the
following four years’ subsidy by the following formula:
NFV = A( F / A, i%, n)
(2)
A means the money given every time
F means the final value
i means the rate of interest
n
means the times of giving subsidy
And the result is
—
—
—
—
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NFV = A( F / A,5.7%,4) = 1950( R.M )
which is bigger than 1800. We consult the average selling profit as 20%.
Supposing a postgraduate spend 1800yuan in the first year, the net money discharge one year to the
company will be
NPV = [(450 + 1800 × 20%) + 450( P / A,5.7%,1)] × ( F P ,5.7%,1) = 1986( R.M )
so profit of this year will be 186(R.M). That is, minusing the postgraduate’s 1800yuan that our company
has overdrawn to him in the first year, the company can earn 186yuan. Yet the wage of workers and the
cost of operation such as the opportunity cost in this process are must be considered. Then we can count
the second year, the third year and the fourth year in the same way. The result is respectively 111(R.M),
107(R.M), 98(R.M). From this result, we can see that the profit is reduced year by year. So it will be
well for both the consumer and the seller in the relatively earlier time to consume this overdraft.
This case only point to one object, and if we expand to all of the colleges in our distinct, with the
whole number at about 10,000, we should estimate the probability at 50%, we can see that the profit will
be easier to achieve. Besides that, for the company belongs to the college, so the tax will not be a
problem.
For the motive of the project is to serve for the postgraduates, but not the profit. At the beginning of
every year, apart from some fund the college allocates to the company as operating fund, the company
should take a loan with the bank in order to balance the daily cost and investment cost.
3.6 The risk of the suppliers
Our company contracts with the suppliers, realizing zero stock and using the web to supply all the
materials. Furthermore we tap many channels to insure the plentiful supplies and complete the
communication of the ownership, then we send the products to the real consumers, the postgraduates, at
that time we realize the real commerce communicate. Because the market that we face is the college
market, so if we exploit it completely, it will be a expanded market. So if we can come to an agreement
with the suppliers, it will be profitable to them. So there will be enough room for we to choose the
suppliers. At the same time, whether the suppliers can supply in time and can serve well after selling in
time will affect the image and credit, which they should found in the postgraduates’ market. Also we
must pay attention to avoid the other companies to contest our suppliers.
3.7 The risk of the consumers
In our company, the consumers are postgraduates. As to the consumption, all of the postgraduates
need a progress to make clear about this way. And maybe this progress is very long time. The most
important is whether postgraduates can notice the benefit of this kind of consumed or can have a right
attitude, all of which needs the time and practice. In the part of credit, because we rely on the college
agency the fame will be higher than the other selling companies. To have a right and timely recognize
about our project, we consider making an introduction briefly in the notification of the enrollment and a
more careful introduction after the enrollment.
All the postgraduates can choose voluntarily whether they consume the overdraft to solve their
hurry needs or get the subsidy every month. If most of the postgraduates choose the first one and
consume it in the soon time, it will be good for the operation of the company. By contrast, if there are
few consumers, the company will not only has no profit but also adds some unnecessary cost. As to
some small casualties, they will be included in the risk from consumers, such as ending college lives
ahead of the due time, handing on not enough tuition. If this happens, the constitute will cut down their
subsidy, but they have spent out the overdraft. But in the long run, postgraduates will become more and
more inclination to join in this tendency. If he can realize he doesn’t unlucky, he will accept this way
readily and rely on this company to buy his things. They need’s ask for money to their parents or run to
the crowded market one by one to choose their dreamed electronic products. What they need to do is to
sit down before the computer and search for the products. At the same time, because many postgraduates
become the agent of some products, it is good for the amount of selling.
To our company, postgraduate is one of the most important sources, so the manager should make a
well relationship between sellers and buyers, and do some certain systematic research on postgraduates
to heighten the degree of their loyalty and have a good knowledge of their request. At the same time,
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they can choose the fit brand according to their market research and make some promotion periodically.
4Conclusions
Using postgraduates’ subsidy to meet the demands of college electric products, which likes using
the future money to realize the current needs, is an innovation tentative plan. From the point of technical
economy, both of postgraduates and the project itself can make benefit. The project itself will face all
kinds of adveture, but on the whole all of them are relative small and can be decrease to the best. As to
the whole, this project is an innovation and has feasibility. It solves the practical problem; we think it
can have a well development in future.
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apply[M]. The mordent economic management institute, 2004,5:
[3] Tianzu Wu. The main discuss about technology and economy [M]. Beijing: The high education press,
2004,8
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