Mdrink Ltd Business Re-engineering - Case Study Example

BUSINESS INFORMATICS (Name of the student) (Name of Institution) (Date of submission) Table of Contents Table of Contents ii 1.0 Introduction 1 2.0 Business overview 1 2.1 Company Background 1 2.2 Company Vision 2 2.3 Company Mission Statement 2 2.4 Company Objectives 2 2.5 Supply chain distribution 3 3.0 Project Analysis 3 3.1 Business Industry Analysis 3 3.1.1 Threat of new entrants Low 4 3.1.2 Threat of Substitute 4 3.1.3 Threat of Suppliers 4 3.1.4 Bargaining power of Buyers 4 3.1.5 Competitors 5 3.1.6 Emerging trends in the soft drink industry in Australia 5 3.2Internal business analysis and the problem 6 3.2.1 Current strategy 6 3.2.2 Product strategy 6 3.2.3 Research and development 6 3.2.4 Employment Strategies 6 4.0 Business analysis Team 7 4.1 Functions of the team head 7 5.0 Information communication Technology 8 5.1 Enterprise Resource Planning 8 5.2 Team collaboration and function 9 6.0 Business Process Analysis and Management (BPM) 9 7.0 BPM ICT Design 10 8.0 Customer Relationship Database Design 11 8.1 Cost estimates 12 9.0 Conclusion 12 Appendix 13 Budget plan 13 Bibliography 14 BUSINESS INFORMATICS 1.0 Introduction Mdrink Ltd is the leading soft drink producer in Australia having over 4 deports across the country with over 30 nonalcoholic brands. The Mdrink brands are very valuables brands across the country. The company started in 1975 and has continued for many decades passing through many tribulation and successes. As late as 2000, the company was one of the most respected companies within Australia, a leading brand and is known for its successful management team. The company has stack with old technology for a long time and it has reached for the company to adopt current technology and integrated aspect. The purpose of this paper is to assess the current situation of Mdrink Ltd and the industry, evaluate the existing resources, suggest a strategy and provide recommendations, a specific strategy that will help to match the current market competence, the cost and the new integrated information system to be adopted by the company. This paper aimed at discussing the business re-engineering plan of a company trading in the soft drink industry. The paper is divided into 10 major sections; these include business overview, giving the company background, company objective, mission statements among other information concerning the company. Secondly, the paper discusses business project analysis, giving major areas which the project needs to work on and why they are necessary. Thirdly, the report discusses the analysis team, people who will be involve in the business analysis process. This part also discusses the external and internal business environment. Fourthly, the paper discusses business analysis team of ICT. Fifth, the paper discusses business process analysis and decision process in the firm. The paper discusses the customer relationship database and lastly project plan and budget. 2.0 Business overview 2.1 Company Background The Mdrink Company manufactures markets and distributes nonalcoholic beverages. The company owns licenses for over 30 brands which include diet and light beverages, water, and juice and energy drinks. The company has ownership interests in the numerous bottling and canning operations. The company has 4 deports across the country which act as distribution points across the country. The company activities have concentrated on the production of soft drinks. The company is the third leading producer of the soft drinks within Australia for the last three consecutive years. The business first opened in 1975 and it serviced the local community for many years. Unfortunately, business has been steadily declining over the last few years. Although the previous owner was an expert at running the business, it is outdated. The only computers currently used by the business are cash registers. All ordering takes place manually on paper. The previous owner had a terrific memory and knew all of his customers by name, but unfortunately, none of this information is located anywhere on the premises. Sales and inventory are tracked on paper, along with employee payroll, and marketing is conducted using newspapers and TV advertising. The business does not have a Website, uses very little marketing except word-of-mouth, and essentially still operates the same as it did in 1975 (Schwalbe, 2013). 2.2 Company Vision To be the leading soft drink producer in Australia and its environs, to refresh the Australia, inspire moments of optimism and create value of Mdrink brand and its growth. 2.3 Company Mission Statement The company aims to provide the clients with the most affordable but quality soft drinks which will enables them to realize the value of their money creating customer loyalty across the country. 2.4 Company Objectives 1. To bring the best assortment of quality beverage brands that satisfy the people’s needs and create delight in customers 2. To maximize profit and return on investment and to maximize long term investment 3. To increase sales of the business in the next three months 4. To increase the company net operating revenue, operating income and company base capital 2.5 Supply chain distribution The company will supply in four main distribution points within Queensland Point A 3.0 Project Analysis The Company analysis team composed of four major departments; Business analyst officer IT officer and system analyst Financial Analyst Production manager Public relation/ Marketing officer 3.1 Business Industry Analysis The industry analyses are analyzed using Porter’s Five Force Analysis. Porter’s model has been used for long time in analyzing the market or industry performance. The porter’s five forces determine industry profitability, competitive rival seller within the industry. The analysis reveals that the weaker the forces, the greater the opportunity for the superior performance by firms within the industry (Ingram et al., 2012). 3.1.1 Threat of new entrants Low Within Australia, new entrants to the industry are not a strong competitive pressure in the soft drink industry. Mdrink, Coca-Cola and PepsiCo dominate the market with their strong superior brands. The soft drink industry is fully saturated, there is small new growth. It is very difficult for new, unknown entrants to start competing against the existing established firms. The other barrier to the industry entry, unfavorable cost of warehouse, trucks and labor cost. 3.1.2 Threat of Substitute Some of the threats or substitutes for soft drinks we produce include water and tea. During cold season, most people preferred hot tea instead of Mdrink since most of our brands are cold drinks. Most old people preferred bottle water due to health complications hence is one of the major threats which affect the business. Within Australia, there are a growing number and varieties of water and sports drinks that appeal to different consumer tastes. The advertisements portray them to be healthier than our soft drinks. They form a competitive substitute because they provide caffeine (Weske 2012). 3.1.3 Threat of Suppliers Bottling manufacturers and packaging are the major suppliers. Suppliers have greater influence on the bargaining power and price negotiation, within the industry, the cost of bottle has impact on the price of the soft drinks hence supplier bargaining has important influence on the success of business. 3.1.4 Bargaining power of Buyers The buyers of the Mdrink and other related soft drink are mostly large grocers, discount stores and restaurants. The soft drinks companies do distributes through beverages through stores and restaurants. The bargaining power of the buyers is very evident and strong throughout the industry. The stores and buyers that buy soft drinks do that in high volumes hence demand volume discounts and cash discounts hence hold a powerful bargaining power. The company will employ strong marketing team that can help in negotiation with strong buyers and get good profit out of the negotiation. 3.1.5 Competitors The pressures from the rival firms are very high within the soft drink industry. Coca-cola is the largest competitor in the industry having global presence. The company should focus on its strength using the Porters Five forces model. The rivalry within the soft drink industry is very strong and giant Companies uses price war to keep off young companies like Mdrink from the market. The company should be very keen in understanding the market trends and use its strength to penetrate the unexploited markets within the soft drink industry. 3.1.6 Emerging trends in the soft drink industry in Australia Across the globe, the soft drink industry is a mature industry that will lead to change. Entry and exit in the industry is a common phenomenon and with time, it will alter the industry operations. There is trends of merges mergers in the soft drink industry, something the Mdrink Company has considered seriously in its strategic plan, many companies have merged together to form one huge company (Longenecker et al., 2013). However, since Mdrink was being managed as a single business, this has not been quite successful in our company and we are not planning to do that in any time new. With increase in IT and global village, most companies within soft drink industry have managed to reach its customers through online platform helping them to reach global market. Mdrink Company has not started using Internet and is planning to developed website which can help the marketing department to reach the unreached markets (Longenecker et al., 2013). The continuous increase in the health concern, attitude and lifestyles has been an important trend in the business which the company needs to consider. Many of our customers are becoming more concerns with their life styles, consumer awareness of health problems arising from obesity among other diseases impacts on the general industry growth and development (Weske 2012). 3.2 Internal business analysis and the problem 3.2.1 Current strategy The company currently is working only to reach the business within its environments due to its outdated manner in which it does its marketing. Currently the company have four major deports which it supplies (Weske, 2012). The company intends to have a global look and compete in the global beverage market. It intends to use differential strategy to create value for its customers and consumers. It aims not only to refresh the Australian but to refresh the whole world and inspire each and every customers moments. 3.2.2 Product strategy The company intends to have high degree of product adaptation and product modification across every market which it serves. Rapid product adaptation and testing is the key objective of the new branded company (Shim et al., 2012). The company will come up with other product which will help in meeting the current emerging customer demands and lifestyle trends existing in the global market. The production department should aim to make the product stand out and our esteemed customers can easily identify themselves with them. 3.2.3 Research and development Currently the Company has no research and development department. The new management intends to create this department which will in charge of development of new products, increasing the quality of current product portfolio, improvement and modernization of production process and implementation of the latest technological advances that the company lacks at the moment. The current downward trends in sales are as a result of lack off all inclusive marketing strategy and lack of integrated market approach. The company should always keep a lead in research and development to improve its leadership in the industry. 3.2.4 Employment Strategies The company will have complete overhaul of its employment strategy, using the qualification and merit as opposed to just picking individual who do not have enough experience and qualification. The employee will be offered competitive and attractive benefits as their job group. This will attract top talents at the company which will act as a team for the well being or the company. 4.0 Business analysis Team The team which will involve in the designing new System will compose of the following team leaders; Business analyst officer IT officer and system analyst Financial Analyst Production manager Public relation/ Marketing officer 4.1 Functions of the team head Business Analyst officer- Will be responsible for carrying out the industry analysis, and identification of the internal factors that needs to be addressed in the business. IT officer- Responsible for handling and integrating the new system Financial Analyst- Responsible for financial activities of the project and forecasting the on the economic impact of the project Production Manager- Responsible for managing the production team, helping in the integrating the production departments with other departments in the organization Public/Marketing manager- Is responsible for investigating the social impact of the project which is to be undertaken and giving the necessary recommendation (Heagney, 2011). The teams has been chosen since they cover all the essential areas in terms of business management, innovativeness and effective and efficient management of business 5.0 Information communication Technology 5.1 Enterprise Resource Planning The Company is aiming at integrating is production and management with Enterprise Resource planning. Information System ERP is an industry term referring to the application of software package that are designed to provide designed to provide information system for multiple business functions as order entry. The company intends to implement new information system to help in managing the clients, suppliers and employees. A sample of new information system is given below which will be the culture of the organization 5.2 Team collaboration and function In implementing information management system3, it has been divided into management level and operational level At management level issues which are being considered include Inputs: High volume of transaction and number of data Processing using simple mode Output which consist of financial reports, production reports and others Users which includes middle level managers and senior managers 6.0 Business Process Analysis and Management (BPM) Business analysis process for Mdrink In managing Mdrink Ltd, there are four major areas which need to be integrated for smooth running of the business. These areas include; Procurement department Production & marketing department Accounting system General administration system 7.0 BPM ICT Design The new system will integrate the three systems so that they meet at the main administrator who will be the chief procurement officer in the company. The elaborate supplier’s data are recorded in the access file attached with this report. The procurement process involve making an order processing system and output data Order Oder processing Order output Marketing department and product change Production and marketing system The production department will work hand in hand with the marketing departments as the marketing executives as they are the ones who have information concerning customer taste and preferences. The number of ordered required will be communicated to the production department this will help in avoid over production and underproduction within the company (Unab & Kundi 2014). The production will deal with resource planning and management from the warehouse to the production factory. The system will integrate the production department with the procurement department to help in easy communication. The marketing department will act as the customer relationship departments whereby the customer complains, queries among others will be handle online. This will improve the marketing strategies and help in getting immediate feedback and updated information concerning market trends. Production department Material resource planning Unit Production cost Accounting department This is another department which will be automated within the company as it will help in keeping the employee records, employees’ benefits, budgeting and other important records. Cost accountant and financial accountants will be recruited for efficient management of accounts department. System administrator This will be recruited and form the IT team which will be responsible for managing the business management system. ERP system will allow the information integration within the company allowing more integration and efficient management of the company operations. 8.0 Customer Relationship Database Design In the customer relationship database design, it will mostly focus on the marketing departments and the accounts departments. The departments in customer relationship include; Marketing and public relationship department Accounting departments Marketing department & Accounting Information required includes; Name of the client Date of birth Age Gender Nature of business Business location Quantity ordered Credit limit 8.1 Cost estimates Hardware: These are the physical parts of the information systems, they cost approximately $10,000. Software: These are the programs to be incorporated in the new information system, estimated to cost $20,000 Networking: these are data packets that that permit exchange of information online platform, estimated to cost $7,000 Staff: the workforce to be involved in the installation process will consume approximately $15,000 Training: The new information will require the staff members to undergo training so as to have proper understanding of the new system; the training cost in this case is estimated to cost $15,000 Other expenses: other additional costs that will may incurred in the installation phase have been budgeted for, that is an extra $3,000. 9.0 Conclusion The system will revolutionize the company and by the end of its implementation, the company will be able to grow and improve its efficiencies and performance. The company will have a global look and compete in the global beverage market. It will use differential strategy to create value for its customers and consumers. It aims not only to refresh the Australian but to refresh the whole world and inspire each and every customers moments. Appendix Budget plan Mdrink Budget Activity No Units   C. Unit Total cost           Business analysis 1   $ 5,000.00 $ 5,000.00 Project feasibility Study 1   $ 10,000.00 $ 10,000.00         $ - Management endorsement 1   $ 2,000.00 $ 2,000.00         $ - System Prototype development 1   $ 6,000.00 $ 6,000.00         $ - System Development 1   $ 40,000.00 $ 40,000.00         $ - System Testing 1   $ 6,000.00 $ 6,000.00 Staff Training 2   $ 4,000.00 $ 8,000.00 System Implementation 1   $ 3,000.00 $ 3,000.00 System Review 1   $ 15,000.00 $ 15,000.00 Miscellaneous 1   $ 5,000.00 $ 5,000.00 Total     $ 96,000.00 $ 100,000.00 Bibliography Gido, J., & Clements, J. (2014). Successful project management. Cengage Learning. Heagney, J. (2011). Fundamentals of project management. AMACOM Div American Mgmt Assn. Ingram, T., LaForge, R., Avila, R., Schwepker Jr, C., & Williams, M (2012). Sales management: Analysis and decision making. ME Sharpe. Kerzner, H. (2013) Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. Longenecker, J., Petty, J., Palich, L., & Hoy, F. (2013). Small business management. Cengage Learning. Meredith, J. R., & Mantel Jr, S. J. (2011) Project management: a managerial approach. John Wiley & Sons. Schwalbe, K. (2013) Information technology project management. Cengage Learning. Shim, S., Kwan, K., Li, M., Lefebvre, V., & Šestan, (2012) Cis-regulatory control of corticospinal system development and evolution. Nature, 486(7401), 74-79. Unab, W., & Kundi, M. (2014) Review of Project Management (PM) Practices in Public Infrastructure Development Organizations of Pakistan. Journal of Strategy and Performance Management, 2(4), 144. Weske, M. (2012). Business process management: concepts, languages, architectures. 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