The Management Information Needs - Essay Example

Identify the importance of information to organizations Our today’s society is information based. Information is data endowed with relevance and purpose. Converting data into information requires knowledge. The companies that possess superior information and knowledge can have competitive advantage. They can choose their markets better and develop superior marketing plans thus becoming better than their competitors. Changes in the macro environment demand the shift to information based enterprises. Demographics, the modern workers who are knowledge workers and resist the old command-and control mode, the need for large businesses to innovate and information technology, all these are factors that demand the shift. From the marketing side three developments make the need for information greater now than in the past: global marketing, the customer-oriented marketing approach and the nonprice competition. Information transforms the financial decisions governed by the numbers into business decisions based on the probability of alternative strategic assumptions thus it requires that the business has formulated a strategy and this strategy and its assumptions are challenged. Therefore, the organization needs to continuously innovate in order to remain and become antagonistic. Identify the management information needs The management requires sales data especially up-to-the minute reports on current sales. It needs to have accurate data on stock levels of products, it needs information on customer profiles (financial and personal data), on marketing expenditure, on customers’ perception about the company and its products, on industry sales and market shares, on staff’s training needs, on financial aspects of the company (debts, loans, cash-flow, budgeting etc.), on R&D and on production line requirements. Company The company chosen is BMW. BMW is a multinational car manufacturer and it is a leading premium car brand. . In no more than 50 of your own words, summarize the salient facts about your company. The BMW Group follows the efficient dynamics strategy i.e. the environmental friendly car production and the customer orientation. Thanks to the use of flexible working methods and working-time accounts, the BMW Group directs its production capacities highly efficiently to changes in demand on the various sales markets. Identify an example of each of strategic, tactical and operational decisions which might be/have been taken by your chosen business. Explain why these decisions are respectively strategic, tactical and operational. 18 marks According to BMW’s public announcements the strategy of the group is the following: “Number ONE- The BMW Group Strategy The Board of Management has devised a new corporate strategy: Number ONE. Number ONE expresses our claim to leadership, its letters O, N and E stand for Opportunities, New and Efficiency: we want to make the most of new opportunities and achieve new levels of efficiency. Essentially, the name Number ONE stands for everything we do in relation to our strategic realignment. The time has come to act.” The strategy and the vision of BMW Group are depicted in details at the diagram below: (BMW’s internal file:2008) Strategic decision is the customer oriented marketing policy and the achievement of further market penetration. It is a strategic decision since it sets up the basis for the tactical and operational decisions. For 2008, BMW’ strategy remains focused on customer satisfaction and the stability of dealer organization. Tactical decision is the achievement of customer satisfaction and market penetration through the alignment of sales volume in specific markets to actual demand and the car –customization according to the customers’ needs. Operational decision is the reengineering of internal procedures and especially of the production process in order to maximize customer satisfaction and therefore achieve the strategic decision of market penetration. Identify examples of information likely to be needed to take each of the decisions identified in task 2 For the strategic decision of customer satisfaction, powerful customer databases having detailed customers’ profiles and results on customer satisfaction surveys are needed. The alignment of sales volume in specific markets to actual requires information concerning the market share and sales data in the particular markets and market segments. The reengineering of the internal procedures and processes demand information concerning the work flow among the various departments (duration of projects, work methods, hindrances in intra-departmental communication, the existence of customer complaint and suggestion systems etc.). Give at least 4 documented examples of competitor intelligence which are likely to be of interest to your company. Do not repeat material used in task 3. The following companies belong to BMW’s direct rival group: Audi and Mercedes. More specifically, Mercedes-Benz focuses on becoming an integrated mobility company that offers complex mobility services instead of just being a car manufacturer that sells vehicles. In terms of resources and capabilities, Mercedes-Benz possesses strong financial resources and brand equity, has realized a valuable merger with DaimlerChrysler which helps increasing technology base, and the management team is dedicated to further improve on car quality and cutting down cost with lean manufacturing process. Audi, on the other hand, competes the giants BMW and Mercedes by offering cars with better features or lower prices. Its competitive advantage is innovative technology. In terms of resource and capabilities, Audi is globally known for its technological know-how in Quattro drive which distinguishes themselves among top competitors. In addition, Audi is affiliated with financially strong Volkswagen group which enables resource sharing in technology and allows cost reduction. Explain why B2B (not B2C!!) e-commerce is of (potential) importance to your company, with specific reference to its activities. In BMW’s strategy plan the access to technologies at suppliers and OEMs is one of the basic components of the empowerment initiatives that are required for the unique customer understanding. The access to suppliers’ and OEMs’ technologies facilitate the JIT (Just in Time) philosophy of the car manufacturing companies. BMW’s production is based on a three – year production plan. BMW produces the basic part of the car i.e. the engine and the body whereas the various spare parts and the accessories are produced by others. In order to achieve the car customization philosophy it needs to have online access to the suppliers’ warehouses and at the same time the suppliers need to have access online to BMW’s production line requirements. This way car production time and delivery time to the customer are minimized. References BMW’s non-confidential internal files provided by an internal employee. DAVIS J., DEVINNEY T.1997.The essence of corporate strategy. Australia: Allen & Unwin. GRANT J. 2004. Mercedes versus BMW. Financial News [online]. [Assessed 13th November 2008]. Available from the World Wide Web: Harvard Business Review on Knowledge Management.1998. USA: Harvard Business School Press. Harvard Business Review on Measuring Corporate Performance.1998. USA: Harvard Business School Press. HELLRIEGEL D., JACKSON S.E., SLOCUM J.W. 2002. Management: A Competency-Based Approach. Canada: South-Western, Thomson Learning. KORZENIEWSKI J. 2008. BMW’s Strategy Number ONE includes new city car, excludes CS. Automotive News [online]. [Assessed 14th November 2008].Available from the World Wide Web: < http:// www.accessmylibrary.com/> MINTZBERG H., AHLSTRAND B., LAMPEL J. 1998. Strategy Safari. USA: The Free Press. MOULES J. 2008. Slow times offer a chance to plan for the fast track, Financial Times [online]. [Assessed 13th November 2008]. Available from the World Wide Web: Research and Markets has announced the addition of OEM Sourcing Strategy Report BMW to their offering.2008.[online]. [Assessed 15th November 2008]. Available from the World Wide Web: BMW company overview.2008. [online].[Assessed 15th November 2008]. Available from the World Wide Web: REED J., SCHAEFER D., 2008. BMW’s accelerator of change, Financial Times [online]. [Assessed 13th November 2008]. Available from the World Wide Web: Read More