Systems Analysis Week3 Case Study

1. A. How were Pine Valley Furniture’s projects initiated? What is the focus for each of the new systems?

Pine Valley Furniture’s projects were initiated by a key member of top management such as the CEO, a steering committee, user departments in which the department heads submit the request, a development group or an information systems manager. The focus of the Customer Tracking System, or CTS, is customer purchase activity and sales trend so the Pine Valley marketing team can identify viable marketing avenues. The focus of the WebStore is to create an online furniture store. The online furniture store will provide a new avenue for revenues for Pine Valley Furniture with the initial focus on corporate furniture buyers.

B. Modify the Customer Tracking System’s economic feasibility analysis to reflect the modifications mentioned in this case problem. Use a discount rate of 10 percent. After the changes are made, what are the new overall NPV, ROI, and BEP?

Modifying the economic feasibility analysis based on the information given yields an overall NPV of $20,734.00, an ROI of 0.12, and a break-even point of 3.22 years.

C. Modify the worksheet created in part b using discount rates of 12 and 14 percent. What impact do these values have on the overall NPV, ROI, and BEP?

Modifying the worksheet created in part b using a discount rate of 12 percent yields and overall NPV of $17,386.00, an ROI of 0.11, and a BEP of 3.37 years.

Modifying the worksheet created in part b using a discount rate of 14 percent yields and overall NPV of $14,295.00, an ROI of 0.09, and a BEP of 3.54 years.

D. Jim Woo would like to investigate how other online stores are targeting the business furniture market. Identify and evaluate two online stores that sell business furniture. Briefly summarize your findings.

Modern Office is an online business furniture store. They target the online business furniture market by listing the benefits they...