Chapter 1

THE INTRODUCTION

1.1 Background of the Study

One of the best and growing trends in business industry nowadays is the use of new technologies and the internet. The combination of the two may makes ones business more successful and more advantageous in competitive market. The proponents help to develop business relationship by making use of technology to help the company to be more competitive to others. The easier it is to access information about your company, the easier it will be for the customers to trust the company. Business websites are a great way of increasing your turnover. You are no longer limited to physical, face-to-face transactions. By allowing your clients to make purchases online, they have the potential for amazing growth. Many different types of businesses have already proven that online sales work and trend of switching from real-time to online consuming is one that shows no sign of slowing down. A business website has no geographic limits. Clients from countries all over the world now have access to your company's information, products, and services. This means that potentially, there are no limits to your growth.

San Marino Classic is started almost 15 years ago, in 1994. The company started from selling house & lot. The company started to give installment basis provided that they collect the payment every day, so they have daily income little by little. Regarding companys payment terms, if the customer total amount of purchased is equal or less than P3000, the customer must pay in cash no down payment is included. But if the total amount is greater than P3000 or less than

P6000, the customer must at least pay 12% of the total amount purchased or if is greater than or equal to P6000, the customer must at least 15% of the total amount. The main branch of their store is located at Blk. 36 2-7 Tatic Homes, Zone XI, Silang, Cavite. The other branch is located in Pintong Gubat, Paliparan III, Dasmarias, Cavite and the company also tried to branch out to General Trias Cavite but a lot of people there just fool their company in terms of money issues so the owner just decided to not continue their business in that particular area, but the company decided that they need to branch out this year in other part of Cavite and their newest branch is located at 15438 Gov. Drive Bancal, Carmona,Cavite. Every branch is selling different brands of furniture and appliances such as sala sets, cabinets, dining sets, beds, electric fans and almost everything that the customer needs in a house, the products can be found in any branch of the company. The company has 5 product lines (Furniture, Wood Craft, Plastic ware, Appliances, Electrical gadgets) and each product line has a least amount of 5 product items, which the customer can choose from. The stores usually opens 8:30am and closes 7:30 in the evening and they have usually 3 employees in each of their store and each branch has usually 30 customers per day and it may vary in condition of the needs of the costumer and also it may still increase depending on the month of the year. The store is very much in demand during the months of December and January. The company has also three delivery vehicles that are used primarily to transport their products to the house of the customer but the amount must satisfy the minimum amount of item/s that the costumer sold to avail the service of free delivery of the products. The customer must purchase at least 5,000.00 pesos to avail the service. If the customer address is outside GMA or Silang, the customer must pay an additional charge worth P500.

1.2 Objectives of the Study

1.2.1 General Objective To develop and design an online sales and inventory management system for San Marino Classic. 1.2.2 Specific Objectives To gather information of its daily operation of the chosen company and To analyze and provide solutions and improvements of companys transactions through conducting an interview, survey, giving questionnaires or observing their daily tasks To study and use different theories that could help in developing the proposed system through the use of Data Flow Diagram. To implement the proposed system and provide necessary maintenance to maintain the systems productivity by adding system features that the company wants to be implemented. To train the employee in using the proposed system for the efficiency of the company through actual training.

1.3 Scope and Limitation/s of the Study

An online sales and inventory system was proposed to San Marino Classic to ease the daily transactions of the house and lot. The system covers all online and online shopping of the house and lot and the companys inventory. The proponents will upload the proposed system thru a web hosting website and will have a unique domain name follows to the companys name. Online purchasing can be made by registered customers. Customers are also required to pay at least 50% of the total amount of products ordered online. Payment for online ordering can be made via credit card or bank account. Then the customer can get the receipt as email notification after purchasing online. Full payment will be accepted upon delivery of product. Delivery system will be covered by the proponents. GMA, Cavite. The proponents will include the companys security in level of access in handling the processes in sales and inventory. This will help the proponents to provide and develop appropriate solutions to prevent problems that may affect the company. Generation of reports will be included in the study for the purpose of sales comparison. These reports can be daily, monthly and annually of sales and inventory reports. The company

implemented an extra charge in delivering products if the area is not within the

1.4 Significance of the Study The following will benefit from this study: Company. The company will be known via the implementation of the proposed system. The company site can be access by anyone anywhere around the globe. It will increase th popularity of company. It will also increase their profit

by online ordering. This will also give the company the opportunity to be known internationally opening export transactions. Aside from those opportunities, the company will be more competitive in the same business with the technologies attached to them. Owner. The proposed system would help the owner reduce his/her paper works in computing the sales of the company and generation of weekly, daily and annual reports in different areas of sales and inventory without checking tons of logbooks and transaction papers. Monitoring the business will be accessible anytime and will give the owner time to attend other task. Salesman/Saleslady. The staff would not be obliged to meet and brief the information to all their customers who want to buy products on them. This will reduce data redundancy that was caused by the manual transaction made with the customers. The staff will be more efficient and flexible to do other tasks. Customers. Instead of coming to the store personally, the customers can visit company website and order online. The customer saves time and can browse more products that are suited to customers needs. Proponents. This study would enhance their skills and work performance and would help them when it comes to dealing with associated circumstances. Future researchers. This study serves, as a future reference and guide for the researchers who will do the same study.