AlNabulsi sweet company in Saudi Arabia - Essay Example

?SIM instructions Task: Content Page 0 Introduction 3 2.0 Company Background 3 2 Business Model and Strategic View 4 3.0 The Business Issue 7 3.1 Problem Statement 7 3.2 Solution Identification 8 3.3 Information System used by the company 9 4.0 Business Review 11 4.1 The Operational Aspects 11 4.2 The Financial Aspects 11 4.3 The Customer Perspectives 12 5.0 Conclusion 13 6.0 Recommendation 13 References 15 Appendices 17 SIM instructions 1.0 Introduction In any business undertaking, knowledge management is a critical issue of business strategy that gives a business a competitive advantage in the market. Therefore, information analysis, management of information and the method of utilizing information obtained gives an organization an upper hand in the competitive market. On that note, the flow of information in any company is fundamental especially the design of information systems (IS) implemented inside the organization (O’ Brien 2004, P.213). Therefore, in this short discussion, the paper will explore the AlNabulsi sweet company in Saudi Arabia and its goals of emerging as the number one sweet company in the globe. On that aspect, the organization is going through its various business goals and operations to satisfy customers and maximize its profits. Additionally, the significant areas of research and broad discussion in this paper are how to apply advanced technology and increase the production of the organization, sales, order and distribution efficiency in timely delivery to clients to reduce costs (Gehani 2007, P.110). On that note, AlNabulsi sweet company, in ensuring its information flow between its different departments like marketing and production, uses this paper dwelt on the present status of the Information System. In addition, the paper studied how effective design and implementation of the Information System (IS) can offer business growth through assisting the management in communication with different divisions in the company. 2.0 The Company Background and Business Model AlNabulsi sweet company is that deals in production, marketing and distribution of sweets and other confectioneries with sweet production reaching up to 250 varieties of sweet products. (Sinha 2006, p.30). On that note, AlNabulsi sweet company generates up to $ 690 in annual sales of its sweet products. The corporate mission of the sweet company, which is nearly 120 years old, is to be the best sweet company in the world by satisfying its clients every day. 2.1 Business Model and Strategic View Several business strategies have been adopted by AlNabulsi sweet company in its approach to efficient maximum production and increased profits. There are strategic choices that have been utilized in the past; others are used presently while there are plans targeted for the future. For example, there is inter-sourcing or outsourcing where the AlNabulsi sweet company determines the tasks to conduct inside and outside the organization. Another one is designing commodity strategy in which the Company establishes a well explained report of its purchases (Ahlstrom & Bruton 2009, p.375). On that note the company has several objectives that can help it achieve the above business strategies in the next 5 years. These objectives are attainable because of the several resources the company has such enough, human labor, machinery like sweet processing machines, skilled personnel and large number premises among others. These include: (a) Expansion Regionally Currently, AlNabulsi sweet company is found in more than 80 countries with supplies to more than about 100 million users. It plans to spread to more than 150 countries in the next five years. Similarly, the company targets nations with vibrant economy in the Middle East and other Arabian nations in Africa for its expansion such as Iraq, Pakistan, Iran, Egypt, Tunisia and Indonesia among others. Regional expansion in these countries boosts spending of consumers and thus increases the chances of the company in meeting its strategies (Sinha 2006, p.30). Additionally, the expansion plans of the company are expected to translate to business growth in terms of percentage. For example, AlNabulsi expects to expand by more 60% its regional expansion by 2016. (b) Efficient delivery and response In terms of efficient delivery of its products, AlNabulsi sweet company is known to have an estimate of 250 varieties of sweet products. The company is able to make its delivery through making its sweet products available in areas such as colleges, transportation depots, amusement parks, hotels and restaurants among others. This is attainable through various suppliers spread across the many countries its location with the use of sweet processing machines. On that perspective, sweet company utilizes the type of distribution strategy called intensive distribution (Keown 2003, p.364). Taking into account the low unit cost of sweets, the company ensures that the products are frequently substituted and distributed in the mass market. In addition, the sweet company plans to increase its supplies by increasing its distribution outlets to sell it products to every part of the world. (c) Provision of essential service In terms of providing number one service to its numerous clients, the AlNabulsi sweet company utilizes various methods. For example, the company ensures its products are always available to the client at time of need. This is through its various outlets spread in every country of its operation. Furthermore, its corporate policy allows it consumers to make suggestions and opinions of the quality of their products. There is the Public Relations (PR) department that has a spokesperson mandated to market the corporate image of the sweet company (Brink, 2011, p.123). Alternatively, the provision of quality service is achieved through participation in different philanthropies such as environmental conservation. This is through planting of trees and ensuring proper disposal of plastic and glass products to avoid environmental pollution. In addition, sweet company offers scholarships every year to bright students in order to attract more investors. (d) Operation control of new business In operation control of its new businesses, AlNabulsi sweet company uses various methods of operations. These methods comprise of purchasing, control inventory, scheduling and quality control. In purchasing, the beverage company engages in activities of acquiring materials, supplies and other related components from other organization in establishing new businesses. In purchasing, suppliers are asked to consider factors such as quality, price, and reliability and credit terms. On other hand, scheduling involves the sweet company assembling its materials at the right time and in the right place (Lehman & Dufrene 2005 p.95). Alternatively, quality control is procedure of make certain goods and services meet the design specifications. This assists the company in ensuring its products produced in its new branches satisfies customers. On the other hand, inventory control involves the study of supervising inventories with the purpose of reducing the costs of inventory and holding costs. (e) Maximize share holders return The maximum shareholders return of the sweet company puts emphasis in accounting indicators, equity returns and income per share. Therefore, the role of the management of the sweet company is to exploit the total return of shareholders through dividends and a boost in market prices of the corporation’s shares. On that note, there are certain factors that will determine if AlNabulsi will implement an orientation of a shareholder (Brink, 2011, p.123). These include the prospects of the company having a huge ownership and compensation linked to the return performance of the shareholder. In addition, it depends on labor markets that are competitive for corporate managers. Similarly, maximization of shareholders return has been successful at company because corporate executives have implemented the approach through quality endorsements. There are also the fears of take-overs by corporate companies who want underrated and undermanaged assets. Therefore, in 5 years time, the key objective of AlNabulsi sweet company is to boost the value of shareholder to maximize on dividends. 3.0 The Business Issue 3.1 Problem Statement There are several challenges that afflict AlNabulsi sweet company that prevents it from meeting the objectives mentioned above. These include: (a) Poor employee management- Employees face problems of poor pay, deplorable working conditions especially those who distribute the sweet products and lack of promotions. In addition, there have been cases of workers’ dismissal without effective reasons which results to de-motivated workers (Baldauf & Stair 2009, p.500). (b) Poor flow of information within the company and its employees- There have been detailed cases of the company applying the vertical communication technique to communicate to its workers. This is whereby the management gives orders to its employees without giving them room to make an input (Umar 2003, p.12). This has created a between the company and its workers resulting to instances of rumors and distorted information. (c) Ineffective systems that assist in identifying history transaction of clients- AlNabulsi sweet company use Management Information System (MIS) to process its transactions (Grunewalder 2008, p.478). This helps in updating internal records and reports. However, poor handling of the system has resulted to inappropriate tracking clients’ transactions. (d) Hindrance in the process of buying and selling due to lack of communication-Due to vertical communication method used by AlNabulsi sweet company in communication with its workers, there have cases of poor buying and selling of its products. This has resulted to reduced sales and profits making it hard to meet its objectives (Umar 2003, p.12). (e) Setback in retrieving old debts due to inappropriate system used- The use of Management Information System (MIS) in conducting transactions and updating of records has not appropriately effective in tracking old debts. This has mostly AlNabulsi sweet company distributers who also lack IT skills of understanding technology. This has made it hard to acquire old debts and calculate profits and losses accrued by the company (Baldauf & Stair 2009, p.500). 3.2 Solution Identification In order to overcome the above problems, AlNabulsi sweet company has implemented various systems in improving communications with its workers and clients. For instance, it uses the Customer relationship management (CRM) system to enhance interactions with its customers. The system also assists the company in making quick decisions, customer attention, reduction in overall costs and quality and efficient service (Grunewalder 2008, p.478). The CRM system also helps the company on marketing of its products through recognition of potential clients and then taking them the products. Apart from CRM system, the company also uses extranet whereby customers give them feedback about their services. Extranet involves the company using a computer network in communicating with its clients. This technology also helps the company in interacting with its vendors, suppliers and partners among others. Extranet has several advantages such as permitting huge exchange of volume sales by means of Electronic Data Interchange (EDI) and sharing of product catalogs with business partners. In addition, it helps the company in teaming up with other organizations on combined development projects (Umar 2003, p.12). The company also uses the Enterprise resource planning (ERP) system in the integration of interior and exterior information concerning management in the whole company. This ERP system deals with accounting, manufacturing, sales, and service. In addition, it helps the beverage company in monitoring CRM systems (Baldauf & Stair 2009, p.500). On that note, it coordinates flow of between functions of a business with the company and organizes the links to various stakeholders outside. Apart from CRM, extranet and ERP systems, AlNabulsi sweet company also uses Earl’s model of information management in overcoming its objective problems. This model is also called IT management and it involves the process of planning, controlling, organizing and directing the implementation and application of IT within a company. The introduction of Earl’s model has assisted AlNabulsi sweet company in fast transactions of business, low costs of manufacturing and marketing and efficiency (Umar 2003, p.12). In addition, IT management has helped the management in effective communication with its workers and customers through emails and other social networks such as Facebook and Twitter. This model also helps the company in monitoring its sales and identifying potential markets. 3.3 Information System used by the company AlNabulsi sweet company uses Management Information System (MIS) in its business transactions and updating of records of sales report and marketing strategies. This system involves giving information required by company to manage its operations effectively and appropriately. The fact that it entails people, technology and information has helped AlNabulsi sweet company in monitoring employee motivation, the market pattern and potential markets. Furthermore, MIS has helped the company identifying its areas of strength and weakness in terms of revenue reports, performance records of workers, market reports and competitors’ strategies. On that note, the company has been able to transform its business operations and practices (Sadagopan 2004, p.14). Another merit of MIS is the ability to give AlNabulsi sweet company an overall presentation of its image. This helps in attracting sponsors and trading partners both locally and internationally. In addition, the company has benefited from MIS in terms of evaluating the customers’ feedback. On that aspect, AlNabulsi sweet company has been able to make better its business practices suited for its customers (Grunewalder 2008, p.478). This has also prompted the company to conduct direct marketing and do promotion of its products. Finally, by using MIS, the company is able to receive various reports from its various regions across the world concerning revenue and sales reports, which help in analyzing consumer trends. There are various merits of implementing an IT system within an organization for the purpose of controlling and organizing data resources. For example, it helps in cutting costs through minimal workforce and efficiency in terms of helping the company anytime it needs. In addition, an IT system helps in storing large volumes of data belonging to the company and convenience of acquiring the data by every employee in the organization. Furthermore, an IT system helps in back up of data in case of calamites such as fires, vandalism and theft among others. Alternatively, IT system assists in handling large data at once and making quick decisions that are beneficial to the business (Umar 2003, p.12). For example, evaluation of consumer trends, revenue reports, market patterns and competitors’ strategies and others. However, with merits of an IT system, there are also several demerits. For instance, it is expensive to run in terms of the cost of implementation, payment to the personnel running it and development of its programs. There is also the insecurity of data because it is in the public domain. On that perspective, either management or employees and wrong persons accessing sensitive data through hacking into the system can manipulate data. In addition, IT systems create unemployment for many people when machines perform many tasks at once (Grunewalder 2008, p.478). Furthermore, systems can be unreliable in case of data that is not properly stored in computer. This can also occur in case of vandalism when data has not been backed in devices such tape drives. 4.0 Business Review 4.1 Operational Aspects The operational aspects of AlNabulsi sweet company entail dealing in approximately many countries. The sweet company operates with strategies of brand equity, brand identity and business positioning among others. Furthermore, its operations involve the use of various marketing strategies, sales and reports analysis and evaluation of competitors’ moves (Sadagopan 2004, p.14). Its operational aspects also entail conducting advertisements, promotions and participation in philanthropic issues and sponsorship. On that note, the company operates with more than 50,000 workers who perform the duties of manufacturing, marketing and distribution of AlNabulsi sweet products. 4.2 Financial Aspects The financial aspects of AlNabulsi sweet company involve sales of up to $ 690 annual sales from it various sweet products. In addition, the average value of market equity stands at $99.9 annually with shareholders investing up to $19.9 billion. This gives a market value of $ 80.0 billion. The debt report in its yearly financial report stands at $8.02 billion with $13.7 billion being the amount of funds provided by investors. On that account, when the debts and taxes have been and added and subtracted from the profits, the net profits amount to about 45.9% (Keown 2003, p.56). Finally, there been legal costs incurred which amount to an estimated $100 million annually. 4.3 Customers’ perspectives In terms of customer’s perspectives at AlNabulsi sweet company, various systems monitor clients. For example, there is the use of CRM system that enhances its interaction with customers who include kiosks, stores, restaurants and schools among others. There is the use of extranet that provides a platform where customers give their feedback to the company concerning their services (Baldauf & Stair 2009, p.500). The sweet company also conducts market analysis to establish the demands of consumers and their behaviors towards the products. Therefore, by evaluating customer perspectives, the company is able to improve its marketing strategies and distribution patterns to increase sales and boost profits. 4.4 Other stakeholders’ perspectives Stakeholders perspectives at the company involve its sponsors, investors, government and non-governmental organizations (NGO). There have cases of some stakeholders accusing the company of using corrupt techniques to manufacture and market its products. On that note, the stakeholders play the role of monitoring the company concerning its ethics of business and appropriate service to its customers (Keown 2003, p.56). Additionally, the interventions of stakeholders such as the press and government have assisted the company in improving its employee management through better pay and quality working conditions. 5.0 Conclusion In conclusion, we can note a few issues concerning implementation and use of systems in a company especially AlNabulsi sweet company. For example, in order to increase sales generate more profits; any company must adopt the various information systems which include CRM systems, extranet, MIS systems, decision support systems and many more. This is because of theirs advantages such as low-costs of doing business, efficiency, fast in transactions and accurate. Furthermore, the systems are able to handle large volumes of data concerning business and revenue reports (Sadagopan 2004 p.14). However, there are other demerits such as loss of jobs, insecurity of data due to vandalism and manipulation of information by unauthorized users. It is also significant to note that the implementation of customer related systems help the company in determining the demands and behaviors of consumers, which helps the organization in improving its business practices. Additionally, the feedback from customers is fundamental in terms of discovering new markets. 6.0 Recommendation There are a few recommendations I can make concerning the use of systems within organizations. For example, implementation of any system in the organization should take note of its employees who stand a chance of losing their jobs. This will help in maintaining the corporate image of company. AlNabulsi sweet Company should also listen to its stakeholders in terms of complaints raised concerning its unethical behaviors of production and marketing. In addition, the company should improve its employee management through motivating factors such as pay rise, promotions and rewards to boost the morale of workers (Kulper 2007, p.22). This will translate to increased sales from the employees and high profits for the company. References Ahlstrom, D & Bruton, G 2009, International Management: Strategy and Culture in the Emerging World, Cengage Learning, Mason. Asongu, J 2006, Strategic Corporate Social Responsibility in Practice, Lawrenceville, Greenview Publishing Company. Baldauf, K & Stair, R 2009, Succeeding with Technology, Cengage Learning, Mason. Brink, A 2011, Corporate Governance and Business ethics, Springer, New York. Forsyth, P 2006, How to Write Reports and Proposals. The Sunday Times Creating Success Series, Kogan Page, New York. Gehani, R 2007, Management of technology and operations, John Wiley and Sons, New York. Grunewalder, A 2008, Implementing CRM Systems: Approaches and Potential Problems, GRIN Verlag, New Jersey. Keown, A 2003, Foundations of finance: the logic and practice of financial management, John Wiley and Sons, New York. Kulper, S 2007, Contemporary Business Report Writing, Kogan, New York Lehman, C & Dufrene, D 2005, Business Communication, John Wiley and Sons, New York. Lussier, R 2008, Management Fundamentals: Concepts, Applications, Skill Development, Cengage Learning, Mason. O’ Brien, J 2004, Introduction to Information Systems, McGraw-Hill/Irvin, New York. Sadagopan, S 2004, Management Information Systems, PHI Learning, New York. Sinha, A 2006, Sweet Spot: How to Maximize Marketing for Business Growth, John Wiley and Sons, New York. Umar, A 2003, Information Security and Auditing in the Digital Age: A Practical and Managerial Perspective, Nge Solutions, Northampton. Appendices CRM systems: customer relationship management (CRM) is a business strategy used for co-coordinating the relationship between the company and its customers, manufacturers, agents and distributers among others. It also entails the application of technology in the organization, automation and synchronization of business practices. These business practices involve sales report, marketing strategies and consumer demands among others. Electronic Data Interchange (EDI): it involves the broadcast of data between companies in a structured format using some electronic techniques. It also entails moving of electronic data or any other business documents from computer system to another. This means two trading partners interact electronically without any human interference. A good example is the use of e-mails and use of cheques with effective messages of EDI. Enterprise resource planning (ERP): This composes of systems that assimilate the inside and outside information of a management in the whole company and it deals with manufacturing, finance and CRM among others. This assimilation is possible due to the use of a software application. The function of ERP is assisting the flow of information connecting all business practices within the jurisdiction of the organization. In addition, it coordinates the links to stakeholders found outside the organization. Read More