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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

E-Commerce Assignment
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 Nandos....................................................................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 Nandos.....................................................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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E-Commerce Assignment
Introduction
Since the invention of e-commerce in the mid 1990s 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. Ecommerce 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
Nandos was started in 1987 by Robert and Fernando in south of
Johannesburg specializing in selling Portuguese style chicken. Nandos 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 Nandos has become an international chain of casual dining
restaurants with operations in over 30 countries. In Malaysia the franchise
operations of Nandos began in 1998 and currently operate 33 outlets across
Malaysia. Nandos 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 E2011

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E-Commerce Assignment
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)

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
Nandos 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 Nandos.
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
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E-Commerce Assignment
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 its more relevant to fulfil that gap.
Nandos have had lack of online ordering system, and in market felled with
competitors its 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 wont complete
without implementing online payment system in order. 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 Nandos


There are a number of advantages for Nandos 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
commerce
Increase Sales
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of

eThe people buying goods and services online are


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E-Commerce Assignment
increasing rapidly, therefore the customers base
is wide and also e-commerce will enable Nandos
to easily reach customers who are geographically
scattered, this will help improve sales.
As Nandos will be able to order raw materials for

Lowers the cost

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 As the customers will be able to make orders
a day

from the convenience of their homes it will help

Marketing and CSR

Nandos to operate 24 hours a day.


E-commerce is a powerful marketing

tool,

advertising done on the web are effective and


can help increase sales. Also e-commerce allows
Nandos to build a better relationship with their
customers by providing opportunities to give
feedback and analyze the customers needs
Flexibility
updating

and

better and responding to them.


Fast Nandos can update their online menu and ecommerce website easily and anytime,

this

helps Nandos to change the price of their menu


according to the changes in the market and can
easily add new items to the menu allowing
Nandos to be flexible in their operations.

Online Ordering and Delivery System

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E-Commerce Assignment
Online sale system means selling products and service via internet with using e-commerce
system. As in Nandos Malaysia dont 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, Nandos dont have online sale (or) online delivery system for their products. We modify
the Nandos website with online sale system and order fulfilment system. If Nandos 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 Nandos restaurant
Quality of Processes and Procedures
Weaknesses
Lack of marketing expertise
Undifferentiated products or services
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

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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 Nandos
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;

Source: http://www.yawlfoundation.org/yawldocs/orderfulfillment.pdf
After order fulfilling process, electronic payment system will come for the ordering process by
customers.

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E-Commerce Assignment
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 Nandos 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), Nandos can provide its customers with different
payment options such as payment on delivery which means pay cash upon delivery of products.
Another payment option Nandos 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.
In order to process an order customers 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

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E-Commerce Assignment
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 companys
ability to manage the confidentiality of customer information, such as name,
address and credit card numbers is also a major issue in perusing ecommerce transactions and attracting customers to make purchase online.
Therefore in implementing an online delivery system Nandos should take
appropriate measures to tackle various security, privacy and ethical issues.

Security Issues
There is a number of security issues involved in conducting business through
e-commerce channels. The success of online delivery system for Nandos
depends on the companys ability to ensure privacy and confidentiality of
customers 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
Nandos online sales system, that Nandos need to take into account are
explained in the table below.

Security Threat
Cookies

Explanation
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

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E-Commerce Assignment
customers confidential information such as login
information and also to analyze customers
behaviour on the internet. Therefore customers of
Nandos need to be careful about third party
cookies.
Viruses and Worms Virus, worms
and Trojan horses

and

Trojan horses

are malicious

programs that may 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 Nandos

Sniffer Programs

and can harm the security of data on servers.


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


Masquerading or

Nandos server and their customers.


Spoofing is a security threat where web pages or

Spoofing

entire websites are modified or copied by the


attackers. The user or the customer is made to
believe that they are using a secure connection as
all security measures and authentication seems

Phishing

legitimate.
Phishing is whereby the attacker is trying to retrieve
users

confidential

and

private

information,

by

copying the communication of electronic commerce


systems such as Nandos. Frequently phishing is
done by sending emails to users, which direct the
users to attackers website where they retrieve
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Database
and

information of customers.( Jackobsson et.al 2006)


Threats The Nandos online delivery system need to store

Unauthorized data and retrieve product information from database

Access

connected to web servers. These servers store


confidential

information

about

customers

and

Nandos 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
DoS

(Denial

changing the access rights. (Schneider 2007).


of Denial of service attack is considered one of the

Service) Attack

most

dangerous

threat

causes

to

e-commerce

systems. As DoS attack prevents users from using


the service of the company will affect the customers
reliability and trust of the system.

Security Measures
Nandos 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


Nandos 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 Nandos. Nandos 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 worms. Anti-Virus program also helps to prevent against phishing. Also
using firewalls will helps the customers to control access of unwanted
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E-Commerce Assignment
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 Nandos


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 Nandos
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 Nandos and their customers to send and
receive

confidential

information,

without

third-party

access

to

the

information send and received.


Firewall
Nandos 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 nonrefutability; they not only protect the documents from tampering but also
authenticate their source and origin (Sison et al 2005). Some of the
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E-Commerce Assignment
commonly used digital certificates are Thawte, Entrust and VeriSign
(Schneider 2007).

Ethical and Privacy issues


The issue of ethics and privacy of customers is very much related to the
collection of customers personal information and using them for the
advantage of the organisations without the knowledge of customers. Nandos
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 Nandos 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. Nandos website should clearly state out the
terms and conditions of using the website and the privacy policy of Nandos
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 persons identity with respect to


issues of the persons capacity, authority and legitimacy to enter the
contract (Shah.A and Nagree.P 2010). Also Nandos 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. Nandos 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 Nandos
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. Nandos need to
take into account important factors such as the security risks and the legal
and ethical standards that Nandos should follow in conducting business
online. The success of online delivery system depends on how well Nandos
is able ensure their customers of security and confidentiality in ordering
through Nandos 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-ecommerce-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)
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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)
ROSA, L.M, CLEMENS, S, HOFSTEDE, T.A, 2009, Order Fulfillment Process
Model, [Online], Available from
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Appendix
1.1 Current Nandos Malaysia Website

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1.2 Suggested Website Design for Nandos Malaysia

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1.3 Payment System


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Work Breakdown Structure

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Name
Shiyan Ahmed TP021758

Mustafa Hersi Suleiman TP022036

Maung Hmu Khant Htway TP021928

2011

Task
Introduction, Company Background,
Security, Political, ethical and legal
issues, and Decoration of whole
assignment, modifying the website
Introduction, Problem with Existing
Website design, How to overcome the
problems, Feature in New and
innovative website, Conclusion
Benefits of E-commerce in Nandos,
Online sale system (or) online
delivery system, order fulfillment
process, SWOT analysis of online sale
system and E-payment system.

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