Building a LAN

Suppose you are asked to head a non-computerized department (Assume a business situation and briefly describe it).  You acquired 10 computers and would like to connect them to each other.  What are the steps you consider to follow? And what are the additional equipment/software you would purchase and why?

Now suppose you would like to connect the internal network you devised in Q1 to the outside world.  What are the steps you consider to follow? And what are the additional equipment/software you would purchase and why?  What new opportunities would you have by opening your network to the outside world present?  What uses would you put it for?  

Optional Questions
What are the productivity issues of the Internet for management? What are the security challenges of the Internet for management? What are the regulatory challenges of the Internet for management?