Just ME, Inc.
MEMORANDUMFROM: Kari Mortenson, Media Relations AssociateTO: Aiden Beech, PresidentDATE: March 28, 2014SUBJECT: Feasibility of Internet Access and Internet Service Provider OptionsSummaryThis report discusses the feasibility of obtaining Internet access for the office of Just ME, Inc. Internet access would benefit the company both internally and externally. It would increase productivity and profitability by granting access to information, globalizing access to our products, promoting cost effectiveness, and easing communications. I have investigated different Internet service providers based upon the criteria of speed, cost, equipment, features, and reputation. I recognized CenturyLink Business, Comcast Business, and Verizon Business as the top Internet service provider choices. Based upon the criteria mentioned above, I recommend using Comcast Business as our Internet service provider.IntroductionOur company’s goal of increasing productivity and profitability has led me to assess the next step in growing our business. I have obtained information via online research to evaluate the benefits of Internet access and potential Internet service providers. With access to the Internet, our company will have a better opportunity to succeed amongst competitors. Internet access will grant us access to important information, as well as ease communications. Internet access can also help us to increase our customer base and reduce labor costs, increasing profits. I recommend that we obtain Internet access. The top three companies that I recommend as providers are CenturyLink Business, Comcast Business, and Verizon Business. I recommend Comcast Business as the top choice. Although Comcast Business Internet is slightly more expensive than the other two options, the initial costs required are much lower. Comcast Business also has higher speed capabilities, a better reputation, and more useful features.Benefits of Internet AccessWithout Internet access, companies struggle to survive and expand. A report by the U.S.A. Small Business Administration (SBA), conducted in November 2010, concluded that Internet access plays an important role in promoting competitiveness, efficiency, and customer interaction. Respondents to this survey noted that Internet access is “as essential to my business as other services such as water, sewer, or electricity.” Benefits of Internet access include information access, globalization, cost effectiveness, and rmation AccessWith Internet access, our employees can locate information quickly and efficiently. We can improve our competitiveness in the market by conducting market research about consumers and competitors via the Internet. This information can help us to create a better product for the consumer and keep pace with the pricing, advertisement, and other offers of competitors. Employees can also use the Internet to obtain answers to questions they may encounter in their everyday work or find ideas and inspiration for our clothing designs.GlobalizationInternet access will allow our company to enter into the global marketplace. Upon obtaining access to the Internet, we can create a Web site to advertise and sell our products. Having our products on the Internet will help us reach a larger consumer base and allow sales to take place in our virtual store 24 hours a day, 7 days a week. With our capability to reach a larger consumer base and sell products anytime, we can expect to increase our profits. A recent report from Connected Nation reports that businesses with Internet access have annual revenues nearly $300,000 higher than businesses without Internet access. Cost EffectivenessAlong with increasing our profits, Internet access can reduce our costs. Due to increased efficiency in finding information and serving customers, employees will not have to work as many hours. This will cause our labor costs to decrease and help our company save money. Placing our advertising, ordering, and communications online can also help us to decrease the amount of paper and ink that we use, decreasing supply costs. CommunicationInternet access can also help to increase efficiency of internal and external communications. Internally, Internet access would allow employees to send emails to each other. These communications are more efficient than telephone communications and less costly than paper communications. External communications would improve as well. Customers would be able to find information, costs, and answers to questions on our Web site. This would allow for quicker communication between our company and our customers, increasing customer satisfaction. If our customers are satisfied, they are more likely to stay loyal to our company.Internet Service ProvidersInternet service is necessary to continue to grow our company. When we obtain Internet access, there are a number of Internet service providers to choose between. In assessing possible providers, I have focused on the speed, cost, equipment, features, and reputation of each company.Although I checked into many options, CenturyLink Business, Comcast Business, and Verizon Business are the top three companies we should consider. I examined other companies, but they did not meet basic criteria: Dish Network has no business class Internet, AT&T has excessively expensive Internet in our area, and some of the smaller companies have not been in business long enough to have a solid reputation or stable future. Following the criteria mentioned above, a summary of the top three Internet service providers can be found below.CenturyLinkThe package that would meet our requirements with CenturyLink Business offers speeds from 5 megabits per second (Mbps) to 7 Mbps. Service would cost $29.99 for the first 12 months with a 3-year contract. After the initial 12 months, the monthly cost would revert to $54.99 per month. No landline is required to install CenturyLink’s services. A modem is needed, which we can purchase for $99.99. There is also a one-time installation fee of $19.95. CenturyLink Business offers webmail, Web site design and hosting, Microsoft Exchange, Norton Antivirus, data backup, and a search engine submission. Consumers who use CenturyLink Business have reported poor customer service, billing issues, and unreliable speeds and castThe package that would meet our requirements with Comcast Business offers speeds from 3 Mbps to 16 Mbps. Service would cost $69.95 per month without signing any contract. No landline is required to install Comcast’s services. A modem is needed, but included. Comcast Business offers two email boxes, a Web site building tool, basic webhosting, Microsoft Outlook and SharePoint, Norton Internet Security, and Xfinity Wi-fi. Consumers who use Comcast Business have reported poor customer service, but reliable billing, speed, and connection. VerizonThe package that would meet our requirements with Verizon Business offers speeds up to 5 Mbps. Service costs $54.99 per month with a 2-year contract. A landline is required to install Verizon’s services. A wireless router is also needed, but not included. The recommended router would cost $149.99. Verizon Business offers 10 email addresses; professional on-site installation; a 30-day money back guarantee; and live technical support. Consumers who use Verizon Business have reported poor customer service and billing issues, but great speeds and connection reliability.Each company has differences in pricing, equipment, features, and feedback. Table 1 summarizes the above information about each Internet service provider.Table 1. Internet Service ProvidersCenturyLinkComcastVerizonSpeed5-7 Mbps3-16 MbpsUp to 5 MbpsPrice$29.99 per month$69.95 per month$54.99 per monthEquipment (not included)Modem ($99.99)Installation ($19.95)NONERouter ($149.99)Features- Webmail - Web site design and hosting- Microsoft Exchange- Norton Antivirus- Data back-up- Search engine submission- Two email boxes - Web site building tool- Basic webhosting- Microsoft Outlook andSharePoint - Norton Internet Security - Xfinity Wi-fi (private and public)- 10 email addresses - Professional on-site installation- 30-day money back guarantee- Live technical supportReputation- Contract- Poor customer service - Unreliable speeds/connection- Billing issues- No contract- Poor customer service- Reliable speeds/connection- Correct billing- Contract- Poor customer service- Reliable speeds/connection- Billing issuesA closer examination of features shows how many extras are included with each plan. Each company has some type of email assistance. Only CenturyLink and Comcast offer Web site design and webhosting tools, which can help us to launch a Web site to advertise and sell our products. CenturyLink and Comcast also offer Norton Security, which is important to help protect our computers and information from hackers. Only Comcast offers Microsoft SharePoint, which is a collaborative business tool, and free Xfinity Wi-Fi. Comcast offers the most useful features for the growth of our business. CostImplementation of Internet access will have a cost. Depending on which company we choose, the first month will cost between $69.95 and $204.98. The first year of service (including the first month) will cost between $419.82 and $809.87. Subsequent years will cost between $659.88 and $839.40. Table 2 compares the cost of each Internet service provider. Table 2. Internet Service Provider CostsCenturyLinkComcastVerizonFirst Month$149.93$69.95$204.98First Year$479.82$839.40$809.87Subsequent Years$659.88$839.40$659.88Not obtaining Internet access will cost us as well. Internet access will help Just ME, Inc. to increase sales and reduce costs. Although there are no exact figures, through projections I have estimated the impact Internet access would have in each area. With Internet access, we can build and maintain a Web site to sell our products in an online store, which will be open all the time. This new availability of our products to consumers, both in new areas and at new times will increase our sales. I have estimated that this could potentially raise our annual sales by 25 percent. Our sales for 2013 were $235,014. This means that our projected sales for 2015 would be $293,767.50. Figure 1 shows the comparison between past and projected sales.Figure 1. Projected Annual Sales IncreaseInternet access would also help us cut costs. Since consumer questions and orders can be processed easily on the Web site, we will not need to keep the office as staffed during business hours. Our labor costs for 2013 were $104,000 (for five employees, working an 8-hour day, at $10 per hour). I have estimated we would be able to cut at least one employee on every business day, meaning our annual labor costs for 2015 are projected as $83,200. Figure 2 shows the comparison between past and projected labor costs.Figure 2. Projected Annual Labor CostsOverall, sales will increase by $58,753.50 and our labor costs will decrease by $20,800. This means our overall savings from Internet access will leave us with a surplus of $79,553.50. With this surplus, we will easily be able to pay back the cost of our Internet access.Conclusion and Recommendation Internet access is necessary to continue the growth of our business. Although there are many options for Internet service providers, Comcast Business is the best choice. It costs slightly more than the other companies do monthly, but this is due to the quality of product that they sell. Initial costs are lower, meaning implementation would not be as costly. In addition to this, Comcast Business has higher speeds, more useful features, and a better reputation.I recommend that we obtain Internet access from Comcast Business. Works CitedBusiness Internet. In Comcast Business. Retrieved May 1, 2014, from Business Internet. In CenturyLink Business. Retrieved May 1, 2014, from Speed Internet. In Verizon. Retrieved May 1, 2014, from by Assistant Secretary Strickling, “Digital Divide: Expanding Broadband Access to Small Businesses.”In National Telecommunications & Information Administration. Retrieved May 1, 2014 from ................
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