Information Systems - Geant Casino Hypermarket - Case Study Example

Name: Course: Professor: Date of submission: Information Systems: A Case Study of Géant Casino Hypermarket Background Géant Casino Hypermarket is the largest hypermarket in the Dubai region. Initially, the hypermarket constituted discount stores before its upgrade. It constitutes different popular retail centers around the globe. The hypermarket traces its route to France where the first stores was established. The store at UAE was established in 2005 and currently constitutes two mega stores in the region. The hypermarket has risen the global market drastically through the introduction of the loyalty cards to its customers (Bonanno and Goetz 185). Nevertheless, competition is still evident in the region with other hypermarkets such as The Big Star Bakery and Emirates Supermarket LLC playing a role in defining its organizational structure. The economy of the United Arabs Emirates (UAE) government depends greatly on Géant Casino due to their friendly government policy and legislature. The corporation constitutes a series of models that initiate and maintain achieving specific goals. For instance, the corporation eliminates estate tax ensuring lucrative subsidies in the hypermarket business. Géant Casino enjoys the great shopping with a wide stability of its customers. The location of the hypermarket in the suburbs of Dubai, which is a hotbed of business tycoons, provides wide range and large scale shopping behavior. Application of the Information Systems As outlined by Vrechopoulos (109) Géant Casino focuses on technology in its operations. Inevitably, the hypermarket adopted a series of information technologies as an aim to increasing the operational information systems. Géant Casino continues to make proper control of their information systems with a belief that, such systems constitute the determinants of market control. Apart from low prices, Géant Casino Canada has adopted various information systems to keep a close monitoring of customers’ behavior. Géant Casino established information services such as inventory management, supply chain management, customer, and supplier management. Such information models provide a competitive advantage in the market. Similarly, the systems increase efficient inter-departmental relations through continuous interactions. Using the Customer Relationship Management (CRM) software, Géant Casino Canada is capable of generating loyal customers through a collection of their information. The interaction through the CRM software enables understanding of the customers’ preference and taste and, therefore, Géant Casino works towards achieving the same. The software works better. However, physical human interaction surpasses the use of the software. In fact, it can only interpret data. A clear outline of the goals of Géant Casino is essential in considering the application of the CRM system (Vrechopoulos 109). The system helps in understanding the most profitable customers outlining the possible reasons for buying at Géant Casino and not from the competitors. The CRM system evaluates the customers defining their needs. As a result, Géant Casino Canada has managed to understand the market position of their customers. Géant Casino is a distributor, therefore, must ensure a maintained supply chain. The rising need to control its supply chain management is crucial and if not met, the competitors are likely to use it as a strategy to compete it out of the market. Notably, Géant Casino is keen on this and employs a system, EDI, to control its supply chain. EDI is an electronic data interchanging system used for procurement purposes. The system uses the Internet to transfer data enabling the suppliers to monitor the sales of their products. The system provides a constant update about the stores to the suppliers and ensures effective provision of goods by the vendors. Significantly, the EDI system is important as it links Géant Casino and suppliers increasing operational efficiency. The system incorporates other systems in its operations such as point of sales system (POS) and “hub-and-spoke” system to facilitate interaction. Another important information system is the RFID system, also used in supply chain. The increasing number of customers at their store and control of out-of-stock merchandise ensured the development of a radio frequency identification system (RFID). Since its development in 2013, the system enabled Géant Casino to monitor their cargos sent to various regions. The system included a microchip sensible by the radio frequency (Vrechopoulos 110). It monitors the whole process at Géant Casino operations from production to sales. The model was a strategy to reduce the chances of out-of-stock issues that was continuously arising. The chip would be tagged to all goods ensuring effectiveness. Additionally, the system enabled easy tracking of the inventories with possible linking to the POS and EDI systems. As a result, the hypermarket was able to develop collaborations in the supply chain. Challenges faced by Chief Technology Officer of Géant Casino The introduction of the Information Technology contributes to the rising challenges faced by Géant Casino Chief Technology Officer. With the increasing new models of operation and market intelligence strategies, the officer needs to understand the operational structure of the multiple systems. The constantly upcoming supplying tools require adequate and thorough decision analysis before adoption. Obtaining information from multiple systems and availing such information to other managers and employees is critical in predicting the success of Géant Casino. To achieve a strategic advantage, the Chief Officer has to establish a better understanding of the various IT opportunities, reexamine the existing ones and select the best systems that enable effective management. As a result, it might be difficult for the Chief Officer to delegate duties to other managers since they must understand the various IT investment options (Brookfield 64). The officer also faces the need for constant updates on the emerging and re-emerging IS. Such focus is essential in decision-making and eventual Géant Casino success. During such processes, the officer must ensure consultation with the associate members of the hypermarket, customers and employees to ensure valid decisions. The purposes of information systems Information plays an important part in establishing the progress of any business. The application of technology at Géant Casino focused on establishing a close relationship with customers and staff members. Information technology serves to facilitate communication among the involved parties. An efficient IS ensures timely gathering and distribution of information. With the aid of IS, the managers can often communicate at all levels of the organization. For example, at Géant Casino the procurement department and the supply chain department were linked facilitating communication. The IS systems also allow efficient storage of information in folders that are sharable when needed. Secondly, the IS serves the operational purpose. Efficient running of a business requires an updated IS. The observed changes in the market constantly affect Géant Casino raising the need to establish efficient customer service gaining an advantage over competitors (Brookfield 56). Besides, the IS provides expected purchase trend for customers ensuring stocking the store with such items. The IS functions to streamline the operational systems of Géant Casino ensuring better sales. Géant Casino is known for its outstanding decision-making skills that enable withstand the competition in the market. The major attribution to better decisions is the IS. Through the RFID, Géant Casino acquires the necessary information, modeling it to provide effective decisions. With developed IS, Géant Casino is capable of choosing from a wide range of alternatives and carry out specific tasks ensuring accurate and updated decisions. The presence of more than a specific is eliminated through IS. Géant Casino calculates the sales, profits and costs making it easier to derive alternative beneficial models. Géant Casino competitive advantage According to Bonanno and Goetz (185), the application of the e-commerce is an observable competitive advantage of Géant Casino. The e-commerce of Géant Casino increased significantly in the last quarter recording a 17% rise. Presently, Géant Casino is developing a delivery subscription device that will see it grow further. The e-commerce, with simple and convenient purchasing models, attracts more people ensuring an increase in its market stability. Consequently, the hypermarket observed an increase in profits during the last quarter. The customer relationship management helps in keeping a close monitoring of customers. The model is efficiently used by Géant Casino to ensure it keeps its customers’ interest first. The system ensures enterprise resource planning and efficient customer response. Other IS such Sales force automotive and Vendor-managed inventory provides an upper hand in keeping it at the top of the retailing market. The hypermarket also enjoys a greater customer base because it is multinational, and customers can buy from anywhere. Works Cited Bonanno, A., and S. J. Goetz. 'Géant Casino and Local Economic Development: A Survey.' Economic Development Quarterly 26.4 (2012): 285-297. Print. Brookfield, Jonathan. 'Globalization and Competitive Advantage.' Strategy & Leadership 31.3 (2003). Print. Vrechopoulos, Adam. 'Information Technology: Strategic Decision Making For Managers.' European Journal of Information Systems 15.1 (2006): 109-110. Print. Read More

 

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