assignment refers to Service Request SR-kf-013, Develop Requirements for

Kudler Fine Foods Frequent Shopper Program. Similar to the individual

assignment, please ignore the Expected Results/Impact when completed
section of the service request and focus your answer on addressing the items
listed below. A link to the Virtual Organizations can be found on the course
Materials page.
The Learning Team will prepare a 12-16 page paper for the complete project which
will be turned in on Week 5; assume that the paper is to be delivered to an executive
management committee. You will complete a draft section each week and you will
receive feedback that you can incorporate into the final paper. Weekly draft papers
will not be graded.

Review the Service Request SR-kf-013 for Kudler Fine Foods.

Draft the first 3-4 page section of the paper to include the following:
Statement of Scope and Goals: Specify what functions will be included in the
project. Identify the goals for the new system (accomplishments you want to
meet and not solutions).
Supporting Measures for Success: Specify tangible measures for
determining the relative degree of success of the completed project. The
measures must correlate with the goals specified in the first section of this
deliverable and they are related to the success of the IT solution.
Summary of Project Feasibility: Include specific operational, technical and
economic feasibility analysis. Operational and technical issues should specify
how each issue will be addressed. The economic analysis must include
quantified specific benefit and cost areas (assume you have evaluated
specific areas and provide your recommendation based on the results of the
evaluation).
Determination of Requirements: Identify the specific analysis methods which
will be used to determine user needs.
Copy/Paste the Visio diagrams into your Word paper and also include the
original Visio file as part of your assignment and not just the embedded
chart.

Continue the draft development paper 4-6 pages to include the following item.
Include descriptions to clarify your models:

Proposed System Requirement List: List specific individual system and

application requirements in verifiable and objective terms.
List of Confirmed Requirements: Categorize each system and application
requirement identified for the Week Two as mandatory or optional.

Current Business Process Summary: Provide a high-level logical data flow

diagram of the current process and explain the process. (Show who does
what).
Logical Model of the System: Provide a high-level logical data flow diagram of
the proposed system. Explain how this flow is different than the one from the
current process discussed on the bullet point above.

Draft the next 4-6 page section of the paper. This should include:
Design Trade-off Approach: Specify the tradeoffs among cost, schedule and
performance you evaluated and explain the logic for your final hardware &
software solution. For example, a fast, inexpensive solution may not address
performance requirements adequately. (chapter 8)
Detailed Design Process and Design Specifications: Specify recommended
decisions for software, hardware, network(s), and communications. Include
resolution of HCI considerations.
Physical Model of the System: Illustrate and explain the recommended
proposed architecture diagram.
When saving this assignment, name it with the team name followed by the letters
wk4. For example, if your group is Team A, this assignment should be saved
as TeamA wk4.doc. Copy/Paste the Visio diagrams into your Word paper
and also include the original Visio file as part of your assignment and not
just the embedded chart.

Service Request SR-kf-013

Develop Requirements for Kudler Fine Foods Frequent Shopper Program
Organization: Kudler Fine Foods
Locations:
Requester:

All
Manager

Description of Request:
Kudler Fine Foods is interested in developing a system to track customer purchases
through a Frequent Shopper Program to award loyalty points for redemption.
Background of Request:

The objective of this project request is to track purchases of individual customers. The
customer purchases will be tracked and accumulated as loyalty points for redemption by
the customer for gift items, specialty foods and other products or services as made
available through partnerships with other external companies. The strategic purpose of the
Frequent Shopper Program is described on the Sales & Marketing page of the Kudler Fine
Foods Intranet site.
Expected Results/Impact when completed: PLEASE IGNORE THIS***********
Create a business/systems requirements document for the development of the Frequent
Shopper Program system to meet the objective of this request.

Kudler Fine Foods

Kudler Fine Foods is a local upscale specialty food store located in the San Diego metropolitan
area. The company has three locations (La Jolla, Del Mar and Encinitas). Each store has
approximately 16,000 s.f. of retail space located in a fashionable shopping center. The stores are
stocked with the very best domestic and imported foodstuffs and divided into the following
departments:
Fresh Bakery and Pastries
Fresh Produce
Fresh Meat & Seafood
Condiments and Packaged Foods
Cheese's and Specialty Dairy Products

History

Our founder, Kathy Kudler, was the Vice-President of Marketing for a large defense
contractor. Weary of the constant travel and the pressures of corporate life, Kathy was
looking for other opportunities. As it happened, Kathy relieved her stress through
gourmet cooking and on a shopping trip for ingredients for a gourmet repast, she
suddenly realized that there was an opportunity for an upscale epicurean food shop in La
Jolla.

Kathy developed a business plan, obtained financing and six months later, on June 18,
1998, the first Kudler Fine Foods opened. Within nine months the store was at break-even
and was profitable for the year.

In 2000, a second store was opened in Del Mar and in 2003 our third shop opened in
Encinitas.
Human Resources

Organizational Job
Job
Charts
Classifications Descriptions

Policies &
Procedures

HRIS

EEOC Reports

Employee Files OSHA

HRIS System
Kudler uses Quick Books and has outsourced payroll processing to Intuit (maker of Quick Books).
Intuits database tracks the following information for each employee.

Personal information, such as name, address, marital status, birth date, etc.
Pay rate
Personal exemptions for tax purposes
Hire date
Seniority date (which is sometimes different than the hire date)
Organizational information (store for budget purposes, managers name, etc.)

Changes to this information are submitted in writing (on special forms) by the employees supervisor
and are entered into the system by an accounting clerk. The accounting clerk maintains a file with the
appropriate tax forms for each employee and keeps the originals of any changes to employee data.

Employees fill out time sheets manually each week, which are approved by the store manager. These
time sheets are faxed to accounting, where the data is entered for payroll purposes. Corrections to the
time sheets must be approved by the direct supervisor and the store manager.
Each store manager has all of the employee files for the employees in the store there is no central
file area. These are kept in a locked file and typically include the following information:

Job application/rsum
Performance reviews (if there were any)
I-9 forms
Any disciplinary memos or performance management issues

Managers are responsible for tracking any requests for time off and vacation. There is no automated
system for tracking vacation time used.
Store managers handle much of their own hiring, with the help of the HR recruiter. Applications of
people not hired are kept in files by the HR department.
Workers compensation is managed by a third party provider, which keeps its own records.
The HR manager keeps an Excel spreadsheet with the results of job analyses, salary surveys, and
individual compensation decisions.
The HR assistant keeps information about complaints, grievances, harassment complaints, etc. in
locked files in the HR office at headquarters.
Web link
https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/HR/KudlerHRHRIS001.htm
Information Technology

Home | Databases | Networks

Download Kudler Fine Foods Access Database

Table

Description

The Customer Table contains demographic data for each of Kudlers customers. The data in
Customer this table is used to access the name and address of customers for order processing and for
special mailings for anniversaries and/or birth dates, etc.

The Inventory Table contains the components that make up an Item. It is used for managing
Inventory inventory and determining the availability of ingredients that go into prepared items, such
as bakery products, etc.

Item

The Item Table stores information pertaining to products that may appear on an order. It
describes goods that can be purchased from a Store.

Order

The Order Table is used to record information pertinent to each Order placed with a given
store. Each order will have one or more entries in the Order Line Table associated with it.

Order
Line

The Order Line table contains detail on items appearing on an order. One or more Order
Lines are associated with each order and each Order Line references an item being
purchased with its description, quantity, price, etc.

Store

The Store Table retains data for each store location, such as name, address, phone numbers,
emergency contacts, etc.

Supplier

The Supplier Table contains data concerning wholesalers, vendors and other suppliers from
whom inventory is procured. These goods are used to prepare saleable items or are simply
resold in their acquired form.

Tax Table

The purpose of the Tax Table is to provide tax rates applicable to orders placed at a given
store.

Tender

The Tender Table provides a means to record the methods of payment used for an Order.
For example an order may be paid for partially in cash and partially by credit card.

Sales & Marketing

Home | Marketing Overview | Sales Plan - 2007 | Market Surveys | Communications
Kudler Fine Foods has experienced significant growth and is now focused on expanding the services,
improving the efficiency of its operations and increasing the consumer purchase cycle as a means to
increasing the loyalty and profitability of its consumers.

Strategic Objective: Increase Loyalty and Profitability of Consumers

Expanding Services (Revenue Increase) Kudler is offering parties in the store to show
customers how to prepare specialty foods. The draw for the consumers is to be trained by
world-renowned chefs, local celebrities, other food experts, and even Kathy Kudler herself, and
to be invited to exclusive, upscale events. The anticipated outcomes will be to increase the
customer purchase rate of high margin food and beverage items and to get consumer to make an
evening at Kudler Fine Foods part of their social network. This increased time in the store will
increase the overall revenue per visit and increase the frequency of visits to the store.
Consumers will receive multiple entries in high-ticket item contests by bringing a friend to the
parties. While the firms preference is to have the events in-store, guests can have Kudler
cooking classes at their home for a price premium. Programs such as this encourage consumer
loyalty and word-of mouth marketing.

Frequent Shopper Program (Revenue Increase) Kudlers new initiative is tracking purchase
behavior at the individual customer level and providing high value incentives through a
partnership with a loyalty points program. The customer purchase behavior patters will help
Kudler refine its processes and offerings to best satisfy their valued customers. Price is not the
primary differentiating factor for Kudler consumers; these consumers are focused on quality
and finding specialized items. Therefore, rather than providing everyday discounts to the
customers for their purchase frequency like lower end markets, Kudler has partnered with a
loyalty points program to provide customers with points which can be redeemed for high end
gift items, airline first-class upgrades, or other specialty foods.
Increased Efficiency (Cost Reduction) Kudler's is now in a position to focus on internal (both
front line and behind the scenes) processes, and how those can be improved to deliver increased
value to the customer. From a service perspective, Kudler is benchmarking Nordstrom
department stores. In addition, the firm is developing employee training programs and
integrating new software systems to facilitate the effort. Marketing has encouraged the
purchasing department to find ways to reduce costs of ordering foods and minimize the amount
of food to be stored, while also having a zero stock out policy. In response, purchasing has
developed a supplier relations program and has solicited the help of marketing to help roll out
the program.

Historical Sales Data and Financials

Historically, Kudler Fine Foods has tracked information such as dollar value and profit margin per
transaction, dollar sales and profit levels by day, and dollar sales and profit margins by item. However,
in an effort to leverage the information to create a more intimate relationship with their customers, the
firm is integrating a system to track customer purchase behavior over time. The firm is in the process of
developing this system now.

Marketing Budget
The marketing budget is primarily comprised of new initiatives, marketing communications, and

marketing research.
New Initiatives

Research, development, and rollout of new programs

Cooking Classes
Frequent buyer points program
Supplier relations program

Marketing Communications activities include:

Radio, Newspaper and Television advertising

Public relations, events, and sponsorships

Marketing Research expenditures include:

Market size / opportunity studies

Food marketing trends studies
Services benchmarking study

Growth Strategy
Within the next 12 months, Kudler plans to increase customer loyalty by offering added high-margin
services, leveraging the firms better understanding of customer purchase patterns, and providing more
efficient operations. Profitability will also be increased by cost reductions accomplished through
supplier partnering programs. New customers will be acquired through social network marketing and
word of mouth.
Copyright 2004 by Apollo Group, Inc.

Introduction
Kudler Fine Foods is a much renowned food store, established at the different locations of
California. The main focus of the store is to have profit maximization by providing quality products at
appropriate prices, in comparison of the competitors. The firm also wants to satisfy its clientele.
Through this objective, the store wants to acquire major expansion. It currently wishes to enlarge its
services by attaining perfection in the operational activities. In addition, it also desires to increase the
loyalty and profitability of its consumers by increasing the consumer purchase cycle. The companys

latest idea to increase its revenue is to implement a customer rewards program that will track customer
purchases and help identify trends that will allow Kudler Fine Foods to tailor its offerings to better
satisfy their customers. Prior to implementing the customer rewards program, the company will need to
consider development issues while also performing a cost to benefit analysis for implementation of a
successful ecommerce website.
Frequent Shopper Program
In regard to the electronic commerce, the Kudler Fine Foods Sales and Marketing Department
is initiating a Frequent Shopper Program to track customer purchase patterns and offer shopper
incentives through a loyalty point programs. The beginning of this program will assist the Kudler Fine
Food in inspiring customer loyalty and react to customer shopping orientations. For the customers of
Kudler Fine Foods, speciality items are more vital than the price of the items they are intended to
purchase, so in this case rather than offering daily discounts for purchase frequency, the company has
united with a loyalty points program to reward customers with redeemable points for high-value gift
items, airline advances or other specialty foods.
By using a rewards program, Kudler Fine Foods will be able to track customer purchases and
observe trends in those purchases. Customers will use a rewards membership card to identify
themselves with the purchases they are making. After a few purchases, customers could be entitled to
collect rewards like airline seating upgrades, expensive gift items, or free specialty foods. Currently, the
Kudler database system includes a table for customers, but that database contains only demographic
information. This database could be expanded by adding a table of transactions; this table can use a
member identification number as a foreign key, which could be the primary key in the customer
database.
Program Goals and Supporting Measures

The prominent goals of the Kudler Fine Foods Frequent Shopper program is to encourage
customer loyalty, to better react to customer's buying demands and to augment food governing
skilfulness. A successful implementation of the program should augment revenue over time by
modifying loyalty and meeting customer needs and decrease costs by amending inventory procedures.
The initiative should be implemented within specific time period along with the involvement of
following stakeholder representatives as with their contribution the program will be implemented
successfully:

Each location of Kudler Fine Food: The program needs to be initiated at each location of the

Kudler Fine Food.

Purchasing Department: The Companys purchasing department is needed to use the data

collected by the new program to forecast food orders.

Sales and Marketing Department: The representatives of sales and marketing department are

needed to include as they will be the elementary customer of the program.

Information Technology Department: The Companys IT representatives must be concerned in

development of requirements as they will help in ascertaining the feasibility of the requirement.
Loyalty points program: A representative from the loyalty points program must be called for to
describe new ideas or the experienced ideas.
Summary of Project Feasibility
Assessing the feasibility of the Frequent Shopper Program enhancement is an important step for

Kudler Fine Foods to determine the chance of success for the project. A feasibility study focuses on
helping answer the essential question of should we proceed with the proposed project idea? (Hofstrand
& Holz-Clause, 2009). Three specific types of analysis have been used to determine the project
feasibility: operational, technical, and economic feasibility.
Operationally, the Frequent Shopper Program should integrate into the existing workflow
without any significant problems to operations. The functionality of the new system will require only a

small amount of user training so there is no issue with computer competency. There will also be no
loss of control by the staff or management; in fact the change will bring an added level of customer
interaction which could enhance customer attitude at the point of sale. This change will also not negate
or change any existing workflows that are critical to the mission success of operations.
Though the design of the network infrastructure is aging, the addition of a Frequent Shopper
Program will have little to no impact on existing capabilities. As long as all of the risks involved in
developing the system are identified, the development team should have no problems in designing a
successful program. The program will likely be developed as an enhancement to the current POS
system so that it will easily integrate with existing key components. Kudler also utilized a POS server,
which would be a good staging ground for the Frequent Shopper database.
The economic feasibility has been determined by performing a cost/benefit analysis. The
cost /benefit analysis has helped the project team in determining whether or not the proposed program
will be beneficial to the company. The project team identified the total expenses of the project by
looking at available resources and estimated development costs. An analysis was also performed to
determine the total benefit that the new program would be to the organization. It was determined that if
the development and implementation of the program were a success, the organization would bring in at
least a 16% return on investment.
Expense
Project Team Salaries
Training
Support
Implementation
Total Cost
Benefit/Cost Saving
Increased Customer Loyalty
Efficiency in Inventory Controls
(Reporting)
Total Benefits and Savings

Amount
$50,000
$4,000
$10,000
$5,000
$69,000
Amount
$75,000
$5,000
$80,000

System Requirements for Frequent Shopper Program

There are various types of proposed system requirements, which should be taken in
consideration by the Kudler Fine Foods. A system requires to be developed in two sides or the areas i.e.
hardware and software. Hardware is related to the development of the system; while software is related
for the tracking and the information database. The following are the layers or the requirements to
establish hardware system for the implementation of the Frequent Shopper Program

Centralize the data management system hardware It is the most important requirement of the
system to design the Frequent Shopper Program. The centralize system will help to upload and
verify data for all the stores. The centralized management system will also assist to integrate the
data of customers. The centralized system will also enable the Management to update the data
according to the change in the customer requirements and will also cause the elimination of

duplication activity.
Content servers in hardware The centralized data management system hardware should be
used several servers for database. The content server will help to store the information. It will
also be used for the backup purpose. It will help to save the information in case of the failure

of hardware or any other incident.

Front end web server- There is also a need of the front end web server, as it will help the
customers to redeem their earned points. It will enhance the effectiveness of the point system

(Reynolds, 2004).
Store server The points of the customer can be added on the basis of the transactions
information. The store server will help to transfer the data and will also help to download the

customers information to the stores, when they need.

Loyalty card Loyalty card with a bar code will help each of the teller in tracking the customer
purchases and points.
The company also necessitates some software to increase the effectiveness of the program. The

software such as tracking software, data storage software can be used to heighten the efficaciousness of
the program. The management of Kudler Fine Foods can also use the Customer Relationship
Management (CRM) software for its frequent shopper program because the main objective of the
program is to increase the sales and the profit of the company.
The CRM software will help to reduce the cost of direct marketing and will increase the
revenue for Kudler Fine Foods. With the help of this software, the customers can be identified easily,
which will cause an increase in the profits of the company. It will also help to increase customer
retention. The security software will help to protect the firm from the hacking of information, of the
clientele (Tipton & Krause, 2006).
In this way, Kudler Fine Foods can implement its frequent shopper program in a more effective
and efficient way.
Conclusion
In order to connect with the organizations customer base, Kudler Fine Foods has recognized the
need to integrate a frequent shopper program to increase loyalty. With returning customers, Kudler will
be able to develop long-term relationships that will both benefit the company and the customers who
will receive perks and pricing advantages. The organization is also read to take on the task of
designing and developing the system, the project team has completed the initial task of determining the
requirements and feasibility, and will begin to come together to move the project forward. With a little
bit of careful planning and a good management team, the new frequent shopper program will be a great
success.

References
Tipton, H.F. & Krause, M. (2006). Information Security Management Handbook. CRC Press.
Hofstrand, D. & Holz-Clause, M. (2009, October). What is a Feasibility Study? Retrieved January 17,

2009, from http://www.extension.iastate.edu/agdm/wholefarm/html/c5-65.html

Reynolds, J. (2004). The complete E-Commerce Book: Design, Build & Maintain a Successful WebBased Business (2nd Ed.). Focal Press.

Week 3
Kudler Fine Foods Frequent Shopper Program
Kudler Fine Foods is a very popular food store located at different parts of California. The main
objective of the store is to have profit maximization by providing quality products at appropriate prices
in comparison to the other competitors. Through this objective, the store wants to have significant
growth. The company now wants to expand its services by improving the efficiency of its operations. It
also wants to increase the loyalty and profitability of its consumers by increasing the consumer
purchase cycle. Now Kudler Fine Foods wants to expand its business through the utilization of a
Frequent Shopper Program. The Frequent Shopper program is currently in design with a working highlevel model up for proposal.
Proposed System Requirements List

The system shall have three tiers of users: Customers, Users, and Managers.
o Users in the Customers tier represent customers of Kudler Fine Foods and account
holders. Their visibility into the system will consist of viewing the Frequent Shopper
Points balance on their account and redeeming Frequent Shopper Points for rewards.
o Users in the Users tier represent employees of Kudler Fine Foods. Their visibility into
the system will consist of viewing the Frequent Shopper Points balance on an account,

processing credits to an account at the time of sale, and processing debits to an account
at the time of a return.
o Users in the Managers tier represent employees of Kudler Fine Foods with a
managerial job title. Their visibility into the system will consist of viewing the Frequent
Shopper Points balance on an account, processing credits to an account at the time of
sale, processing debits to an account at the time of a return, and processing adjustments
to an account as defined by Kudlers business process.

Each customer shall be assigned one and only one unique account number in the Kudler Fine
Foods Frequent Shopper program.

At the time a purchase is made at a Kudler Fine Foods location, Frequent Shopper Points will
be credited to the account.
o The number of Frequent Shopper Points credited to the account will be equal to the
dollar amount of the purchase, before tax, rounded down to the nearest dollar. For
example, a purchase of $10.00 would yield 10 points. A purchase of $10.01 would yield
10 points. A purchase of $9.99 would yield 9 points.
o Any purchase totaling less than $1.00, before tax, will yield 0 points.
o If an item is returned for which Frequent Shopper Points were originally credited to an
account, a reversal will occur equal to the dollar amount of the returned item, before tax,
rounded up to the nearest dollar unless this reversal would result in the account having a
balance of less than 0 points. In this case, a debit transaction will occur equal to the
total number of points on the account. For example: If an account has 10 points, and a

customer returns an item worth $6.00 for which points were originally credited, a debit
of 6 points will occur, leaving a balance of 4 points. If an account has 10 points, and a
customer returns an item worth $6.01 for which points were originally credit, a debit of
7 points will occur, leaving a balance of 3 points. If an account has 10 points, and a
customer returns an item worth $11.00 for which points were originally credited, a debit
of 10 points will occur (as a debit of 11 points would result in a negative balance).

When Frequent Shopper Points are redeemed, Frequent Shopper Points will be debited from the
account.
o The number of points on an account can never total less than 0.
o If a customer attempts to claim a reward worth more points than are currently available
on the account balance, the system will display a message indicating that there are
insufficient points to process the transaction. No debit will occur.
o When a reward is claimed, a debit to the Frequent Shopper Point balance will occur that
is equal to the point value of the reward. For example, if an account has a balance of 10
points, and a reward worth 3 points is claimed, a debit of 3 points occurs leaving a
balance of 7 points.

The system must provide the ability for users to query an account on demand.
o When querying an account, the user may specify the customers first and last name as
search criteria, the customers phone number as search criteria, or the account number as
search criteria.

When an account number is used as search criteria, one and only one result will
be returned to the user.

When First and Last name are used as search criteria, all records that match both
criteria shall be returned to the user. The user may then select the appropriate
account record to view.

When Phone Number is used as search criteria, all records that match both
criteria shall be returned to the user. The user may then select the appropriate
account record to view.

o The current Frequent Shopper Point balance will be displayed to the user once an
account record has been selected.

The system must provide the ability for users to apply adjustments to Frequent Shopper Point
balances.
o Only users in the Managers tier shall have access to processing adjustments.
o An adjustment may be a credit or a debit to an account balance.
o At the time an adjustment is processed the following input must be provided from the
user:

Debit/Credit

Number of Points

Reason for adjustment

o The reasons for adjustment shall be a set of predetermined values that the user must
select from. These values are:

Customer Retention Award

Reversal of Incorrect Transaction

Over-charged for Purchase

Under-charged for Purchase

o In the event a debit adjustment is applied, the resulting point balance may not be less
than zero.

If a user attempts to process a debit adjustment that would result in the point
balance being less than zero, a message must be displayed, This adjustment
would result in a negative point balance. No transactions occur.
Legal Considerations of Frequent Shopper Program

Doing the business through Electronic Commerce, Kudler Fine Foods has to consider several
legal considerations in the development of its Frequent Shopper Program. Electronic contracts for
online business transaction are legally bound all over the world. There are several Legal Considerations
in the E-commerce which are as follow:

According to the Privacy and Electronic Communication Regulations, an opt-in consent

procedure is required for making commercial emails and e-commerce (Develop an e-

marketing Plan).
According to the Information Principle, the business organizations are required to verify
specific information about their business which it wants to provide to the recipient on

the online service to the E-Commerce Regulations.

The business organizations have to make their advertising and promotion strategies

according to the guidelines of the E-Commerce Regulations.

For the approval of an online order, the business organizations are required to have

physical signatures.
For the E-Commerce the business organizations have to consider the taxation laws of

the Native Country.

All the customers who want to make business contracts online should be provided the

facility of printing and storing a copy of all the terms and conditions.
To copy the business processes and the intellectual properties of the business
organizations is also important legal consideration of the E-Commerce (Develop an emarketing Plan).

The mentioned Legal Considerations are required to be considered under the Frequent Shopper
Program of Kudler Fine Foods Store.
Ethical Considerations of Frequent Shopper Program
In addition to the legal considerations, the business organizations have to implement several
ethical considerations in their frequent shopper. Some of the important ethical considerations are as
follow:

The customer privacy is the most important ethical consideration in the electronic

commerce (Merryweather, 2000).

The protection of the sensitive and personal data of the corporate as well as the

individuals is also an important ethical consideration of the e-commerce.

Creative activities related to pornography on the name of e-commerce are not allowed

according to the ethical considerations of the business.

Breaches of any kind of contract on e-commerce are also an important ethical

consideration.
Unwelcome intrusion is also considered unethical in the field of electronic commerce.

Under bricks and mortar model, the business organizations which use electronic
commerce consider the privacy protection of channel of distributions and information

about the customer major ethical considerations.

The information provided on the websites of the business organizations should be
reliable and authentic for the customers.

Thus, these are the major ethical considerations which Kudler Fine Food Store should include
in the development of its frequent shopper program under electronic commerce.
Security Considerations of Frequent Shopper Program
In addition to the Legal and Ethical Considerations, Kudler Fine Foods Stores is required to
implement the most important aspect of E-Commerce in its Frequent Shopper Program which is a
security consideration. These considerations are a requirement to the project. The main Security
Considerations are as follows:

The business organizations operating E-Commerce have to secure their data. The
customers, who do transactions, ask the organizations to secure and save all the

electronically sent information about them, especially related to financial risks.

Protection from the Cyber terrorism is also an important security consideration in E-

Commerce (IP Infringements on the Internet - Some Legal Considerations, 2007).

The technologies used by the different organizations should be protected on their

Websites to be accessed by the invalid people.

The business organizations are required to make registrations legally particularly in

different physical locations on the Internet.

Different unrelated owner can use identical trademarks legitimately in different locations
due to the presence of territoriality of trademark rights. This is a major security
consideration in e-commerce, as on Internet, the trademarks are potentially visible from
anywhere in the world.

The efficient imposition of the intellectual property rights in the business transactions on
E-Commerce is also an important matter under security considerations.

Thus, the given Security Considerations are very important for Kudler Fine Foods Store for the
development of its Frequent Shopper Program.
For the development of the Frequent Shopper Program, the store will have to make
expenditures in different fields. The main expenditure fields will be related to marketing. Under this,
the expenditure on advertising and market research will be major fields of expenditure. The store would
have to make some expenditure on the online registration and website development. Some other
expenditure would be the fulfillment of legal formalities.
The justification of all these expenditures can be done by the financial analysis of all the
expenditures. The Financial Analysis of the expenditure can be done by making the budget of all the
expenditures and revenues of the store. By the analysis of this budget, the store would be able to know
that either the expenditures would increase the revenue of the store by comparing the revenues of the
last years. If the revenues will be higher than the past year, the expenditures will be favorable for the
store. The revenues can also be compared with the sales plan of the store.
Thus, with this Financial Analysis Kudler Fine Foods Store would be able to justify to all its
expenditures for the development of Frequent Shopper Program.
Current Business Process Summary

Logical Model of the System

The inclusion of the Frequent Shopper module into the existing system will provide a few
changes to functionality and workflow. In the new model, the transaction is initiated with the customer
being asked about enrollment in the Frequent Shopper program. If the customer is not enrolled, they
have the option to sign up and obtain a card immediately at the point of sale. If present, the card is
swiped into the system to retrieve any existing Frequent Shopper points that the customer is able to
utilize if they choose. At the end of the transaction, updates to the customers Frequent Shopper points
will be printed on the receipt. The transaction information will eventually be trickled up to the POS

server database which will have new canned reports used to help determine new rewards based upon
customer purchasing habits.

Conclusion
Based upon the requirements, the logical flow of the system has been designed to provide the
most minimal impact to the workflow. The new system will slightly increase the time that the customer
spends at the check-out register, but the majority of this delay will occur only on the customers initial

enrollment into the program. The delay to the workflow will eventually even out as more customers
are enrolled in the program and the store staff becomes familiar with the process. The design will also
give a few new reporting tools to management and they will be able to identify trends and adjust the
program around the data collected to maximize the programs efficiency.
Here is the comments from the instructor about our week 2 assignment:
The paper includes very good sections on goal/scope as well as
project feasibility. I do not see the section on measures of success, and the
last section needed to identify how you will go about identifying the
requirements. The paper did not have to specify what the requirements are
(that is for week 3) but instead you need to explain the process and method you
will use - you will need to re-write this section and add the missing section.

Need your help getting week 2 week 3 revision and complete week 4 please APA style and provide
References