Band Rate List Essay Example for Free

Band Rate List Essay By storing the Band Rate List in a computer system it can be used to attach payments due automatically to each video when a member returns it late. The system can also be efficiently updated. The use of a computer system would also enable Jean to generate a daily report for each shop detailing unreturned tapes and their subsequent charges. By having all member details on account no report would need to be written to County Court as Jean could simply e-mail all relevant information in a matter of seconds. Saving both time and money. By implementing a scanning device/system on the drop box, linked to a computer, staff will immediately be notified when videos are returned preventing any more lost sales. Introduction of a computer system network will mean any number of staff can access the member files at the same time (as long as there are sufficient servers). It will also put an end to anyones struggle to decipher handwriting. To solve the problem of parking Jean could purchase extra space if possible, alternatively he could use the less busy shop 3 to pilot an innovative scheme where customers can choose to get a drive-thru video. This would cut down on the number requiring parking spaces if successful. Two windows could be formed at the side, one to take the order, receive payment and swipe the membership card, while the other is used to give the video to the member. If the idea catches on Jean could patent it and introduce it to his other shops before retiring with a large sum in the bank as a result (or maybe I should do that). A computer system would allow Jean access to all files from wherever he desired. It would also allow him to organise members easily, e. g. by postcode for mailing, and he would no longer have to start from scratch every time he wanted to update it. Security could also be improved as the shops can efficiently communicate using the computer network. In future a gang member who has stolen from one shop would be expected in the other shops on the same day so relevant actions can be taken before they arrive. Information relevant to Jean in terms of financing any forthcoming I. T. installation is detailed in the section entitled costs. An investments payback period in years (and months, weeks or even days) is equal to the net investment amount divided by the average annual cash flow from the investment. It basically means: How long will it take to get my money back? This refers to the time it takes for an investment to repay the initial outlay. In calculating the payback period, it is usual to work to the nearest month. This month can be obtained using the following formula: Month of Payback = (Income Required / Contribution per Month) Or to find the day of payback: Day of Payback = (Income Required / Contribution per Day) When using this method to choose between projects, the shortest payback period will be chosen. For a business, payback is a simple calculation to make. It gives a good indication of the level of risk associated with potential investments because the longer the payback period, the longer the firms money is at risk, and the greater the likelihood that something unexpected may negatively affect the business. The payback period also takes into account the timing of cash flows. Firms might adopt this method if they have cash flow problems. This is because the project chosen will payback the investment more quickly than others. Strengths of the Payback method are: Its easy to compute, easy to understand and provides some indication of risk by separating long-term projects from short-term projects. It is particularly useful for firms with difficult cash flow positions as it helps them to identify how long it will take for the cash to be restored. Also, the further ahead a forecast looks, the less likely it is to be accurate due to uncertainty increasing over time. For this reason payback is advantageous as it only focuses on the short-term. Weaknesses: It doesnt measure profitability, doesnt account for the time value of money and ignores financial performance after the break-even period. Using this method may also encourage a short-termist attitude within the business.