School of Computer Science and Engineering

WINTER SEMESTER 2016~17

CONTINUOUS ASSESSMENT TEST (CAT) – II
CSE329 Management Information Systems
Answer All the Questions

Time: 90 minutes Max. Marks: 50

Slot: C1+TC1

1. ABC Software solution is a cloud based company which has more than 100 dealers. ABC
software solution is not aware of its customer’s details. Dealers provided customer data to the
company on an ad hoc basis. ABC did not force dealers to report this information. There was
no real incentive for dealers to share information with the company. How could CRM and
PRM systems help solve this problem?

2. A Stationary store sells a wide range of office supply products and services in India and
internationally. The company tries to offer a wider range of office supplies at lower cost than
other retailers by using just-in-time replenishment and tight inventory control systems. It uses
information from a demand forecasting system and point-of-sale data to replenish its
inventory in its 1,200 retail stores. Explain how these systems help the stationary store to
minimize costs and any other benefits they provide. Identify and describe other supply chain
management applications that would be especially helpful to Office Depot.

3. Joe & Rachelle Friedman opened their first music store on Park Row in New York City
in 1971, where they sold vinyl LPs of the current chart-toppers. Since that time, the business
has expanded steadily. J&R now covers a massive city block across from City Hall Park in
the heart of Downtown Manhattan. The stores are a "must-see" for many tourists and a "must-
shop" for New Yorkers in the know. J&R's business, too, has expanded. J&R Music &
Computer World not only sells an incredible array of CDs and a vast selection of top
computer goods, but also digital cameras, cell phones, TVs, stereos, MP3 players, DVDs,
kitchen appliances and much more. They have developed a loyal base of customers around
the world through our catalogues and through JR.com (launched in 1998). In fact, J&R is the
only company to receive two separate "Retailer-of-the-Year" awards and, in 2010, Joe and
Rachelle were inducted in to the Hall of Fame by the ConsumerElectronics Association
a. Analyze J&R Electronics using the competitive forces and value chain models. What is
its business model and business strategy? How does it provide value?

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 b. What is the role of the Internet in J&R’s business strategy? Is it providing a solution to
J&R’s problems? Why or why not?
c. Can J&R keep up with the competition since it is more or less a local brand competing with
nation- wide chains? How would you measure its success in keeping up with the competition?

4. Cell phones present a partial solution to the problem of connectivity for international
firms. The Growth of mobile phone coverage reduced the staple millet’s price differences
across markets by 15 percent between 2012 and 2016, with a greater impact on markets
isolated by distance and poor-quality roads. Cell phones allowed traders to respond to
surpluses and shortages in the market, making better decisions about price and delivery. As a
result, trader profits rose and prices fell.

• What strategies are cell phone companies using to ‘close the digital divide’ and
market phones to the poorest segment of the world’s population?
• Why do economists predict that widespread cell phone usage in developing countries
would have an unprecedented effect on the growth of those countries?
• What are some examples of how cell phones might increase quality of life for
residents of developing countries?

5. What types of problems might a group encounter when trying to make a decision as a
group? What kinds of decisions might need to be made as a group? Increasingly GDSS use a
virtual meeting or Tele-presence capability rather than physical group decision rooms used
when these techniques were first developed.

------------------------- ALL THE BEST ---------------------------------

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 ANSWER KEY

1. ABC Software solution is a cloud based company which has more than 100 dealers. ABC software
solutions is not aware of its customers details. Dealers provided customer data to the company on an ad
hoc basis. ABC did not force dealers to report this information. There was no real incentive for dealers to
share information with the company. How could CRM and PRM systems help solve this problem?

Ans:

ABC software solution has to use some automated software systems to perform Customer Relationship
Management and Partner Relationship management process. It use Database Software to Manage Partner
Service Requests. you’ll use database software to develop an application that tracks partner service requests and
analyzes partners’ data to identify partners meriting priority treatment.Customer relationship management
(CRM) systems integrate and automate customer-facing processes in sales, marketing, and customer service,
providing an enterprise-wide view of customers. Companies can use this customer knowledge when they
interact with customers to provide them with better service or to sell new products and services. These systems
also identify profitable or non-profitable customers or opportunities to reduce the churn rate.

In a small business operating in a neighborhood, it is possible for business owners and managers to really know
their customers on a personal, face-to-face basis. But in a large business operating on a metropolitan, regional,
national,or even global basis, it is impossible to “know your customer” in this intimate way. In these kinds of
businesses there are too many customers and too many different ways that customers interact with the firm (over
the Web, the phone, e-mail, blogs, and in person). It becomes especially difficult to integrate information
from all theses sources and to deal with the large numbers of customers.

A large business’s processes for sales, service, and marketing tend to be highly compartmentalized, and these
departments do not share much essential customer information. Some information on a specific customer might
be stored and organized in terms of that person’s account with the company. Other pieces of information about
the same customer might be organized by products that were purchased. There is no way to consolidate all of
this information to provide a unified view of a customer across the company. This is where customer
relationship management systems help. Customer relationship management (CRM) systems. The major
customer relationship management software packages provide capabilities for both Operational CRM and
analytical CRM. They often include modules for managing relationships with selling partners (partner
relationship management) and for employee relationship management.

CRM systems examine customers from a multifaceted perspective. These systems use a set of integrated
applications to address all aspects of the customer relationship, including customer service, sales, and
marketing.

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This process map shows how a best practice for promoting customer loyalty through customer service would be
modeled by customer relationship management software. The CRM software helps firms identify high-value
customers for preferential treatment.

PRM: PRM uses many of the same data, tools, and systems as customer relationship management to enhance
collaboration between a company and its selling partners. If a company does not sell directly to customers but
rather works through distributors or retailers, PRM helps these channels sell to customers directly. It provides a
company and its selling partners with the ability to trade information and distribute leads and data about
customers, integrating lead generation, pricing, promotions, order configurations, and availability. It also
provides a firm with tools to assess its partners’ performances so it can make sure its best partners receive the
support they need to close more business. ERM software deals with employee issues that are closely related to
CRM, such as setting objectives, employee performance management, performance-based compensation, and
employee training.

2. A Stationary store sells a wide range of office supply products and services in india and
internationally. The company tries to offer a wider range of office supplies at lower cost than other
retailers by using just-in-time replenishment and tight inventory control systems. It uses information
from a demand forecasting system and point-of-sale data to replenish its inventory in its 1,200 retail
stores. Explain how these systems help the stationary store to minimize costs and any other benefits they
provide. Identify and describe other supply chain management applications that would be especially
helpful to Office Depot.

Ans:

Office depot’s use of just-in-time replenishment and tight inventory control systems helps minimize costs. They
also use a demand forcasting system to efficiently replenish its inventory.

Supply chain management (SCM) systems automate the flow of information among members of the
supply chain so they can use it to make better decisions about when and how much to purchase, produce, or
ship. More accurate information from supply chain management systems reduces uncertainty and the impact of
the bullwhip effect. Supply chain management software includes software for supply chain planning and for
supply chain execution. Internet technology facilitates the management of global supply chains by providing
the connectivity for organizations in different countries to share supply chain information. Improved
communication among supply chain members also facilitates efficient customer response and movement toward
a demand-driven model.

Supply chain management will help office depot to determine the necessary actions that must be taken in order
to keep up with their inventory demands.

The system provides the company with the proper information about the upstream and downstream portion of
the supply chain

GPS based automated system will keep track of where the products are currently located and when they reach
the correct destination place. If there are any problem in reaching the destination the company management will
be notified and they can work to correct the situation. This system provides an effective communication between
office depot’s and its suppliers.

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Office depots can share the information down the supply chain, notify its customers when there is a demand of
inventory, and tell them how much they need and where they it to be delivered.

Without such an effective system, there could be poor communication and the result would be an excess of
unnecessary inventory and waste of money.

3. Joe & Rachelle Friedman opened their first music store on Park Row in New York Cityin 1971, where
they sold vinyl LPs of the current chart-toppers. Since that time, thebusiness has expanded steadily. J&R
now covers a massive city block across fromCity Hall Park in the heart of Downtown Manhattan. The
stores are a "must-see" formany tourists and a "must-shop" for New Yorkers in the know. J&R's
business, too,has expanded. J&R Music & Computer World not only sells an incredible array of CDs and
a vast selection of top computer goods, but also digital cameras, cellphones, TVs, stereos, MP3 players,
DVDs, kitchen appliances and much more.They have developed a loyal base of customers around the
world through our catalogues and through JR.com (launched in 1998). In fact, J&R is the
only company to receive two separate "Retailer-of-the-Year" awards and, in 2010, Joe and
Rachelle were inducted in to the Hall of Fame by the ConsumerElectronics Association

a.Analyze J&R Electronics using the competitive forces and valuechain models. What is its business
model and businessstrategy? How does it provide value?

Ans:
J&R’s use of Loyalty’s Labs’ Blue Martini software is a classic example of Michael Porter’sapproach to using
the internet as an “enabling strategy” and as a “complement to and not acannibal of traditional ways of
competing”.Unique visitors are customers that go directly to theJ&R site versus arriving through another site.
Once there, J&R offers these customers loyaltypurchase discounts and a chance to see what differentiates J&R
from other sites. Since onlineconsumer electronics retailers essentially sell the same products, J&R is working
hard todifferentiate itself in any way it can and avoid getting caught in a price war, even though they
arecompetitive on price. J&R would like to sell to, and retain customers by showing them howknowledgeable
their sales staff is, how rewarding their loyalty program is, and how cutting edge!They are in receiving new
technology earlier than other electronics retailers. These are the valuesthat made J&R great before e-commerce
was important, and these are the business benefits thatare realized by using such a flexible and powerful CRM
platform such as Blue Martini.

C o m p e t i t v e F o r c e s :
I . T h r e a t o f N e w E n t r a n t s
I I . T h r e a t o f S u b s t i t u t e s
III. Bar gaining Power of Suppliers
IV. Bargaining Power of Buyers
V . I n t e n s i t y o f R i v a l r y

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J & R value chain model includes:

I. Inbound l ogi s t i cs : mat er i al s h a nd l i ng, war eh ou s i n g, i n ven t or y

c o n t r o l , transportation;

I I . O p e r a t i o n s : m a c h i n e o p e r a t i n g , a s s e m b l y , p a c k a g i n g , t e s t i n g a n d maintenance;

I I I. O u t b o u n d l o g i s t i c s : o r d e r p r o c e s s i n g , w a r e h o u s i n g , t r a n s p o r t a t i o n a n d distribution

;IV . M a r k e t i n g and sal es: ad ver t i s i ng , pr omoti on, s el l i ng, pr i cin g,

c h a n n e l management;

V. Ser vi ce: i ns t al l ati on, s er vi ci n g, sp ar e par t man age men t ;

Business Strategy:

i. Overall cost leadership: Thr ough st rategic relationships,

a u t h o r i z e d dealershi ps, the expertise of bu ye rs, and excepti onal promoti ons, J&R
canoffer excellent prices and outstanding values.Slogan “If you can find lower prices, from another authorized
dealer, please let us know .

“i i . B e t t e r C u s t o m e r S u p p o r t : J & R h a s e x p e r i e n c e d c u s t o m e r r e p r e s e n t a t i v e s f o r m o
r e p e r s o n a l a n d s p o n t a n e o u s a s s i s t a n c e . J & R P r o v i d e s a d i g i t a l environment where
buyers can meet, search for products, get informat ion about t he products, and purchase those
products throu gh there website

iii.Get cust ome r l oya lt y: J &R use the Loya lit y La b CRM pa cka ge
t h r o u g h w h i c h every cust omer can have his own account and mai ntain there account and
can know a bout th e incenti ve he earned. They also provide special
promotions and rebate offers for the customer.

Business Model

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 b.What is the role of the Internet in J&R’s business strategy? Is it providing a solution to J&R’s
problems? Why or why not?
Sol:
Role of the Internet in J&R business strategy:
i.30% of revenue come fr om jr. com

i i . B l u e M a r t i n e - c o m m e r c e p l a t f o r m w h i c h p r o v i d g u i d e d s e l l i n g application and
tailored as per the requirement of the particular customer.

i i i . O n 2 0 0 7 J & R i n t r o d u c e r e a l t i m e i n t e g r a t i o n w i t h i t s s t o r y i n v e n t o r y . So online
purchase is reflecting on the availability of the product and improve the accuracy of delivery date and shipping
fees

Problems of J&R:
I . D e s p i t e t h e i n c r e a s i n g f u n c t i o n a l i t y b y b l u e m a r t i n i e - c o m m e r c e p l a t from, J&R still
has limited of having physical store
I I . C u s t o m e r c a n o r d e r f r o m a n y w h e r e a n d n o t n e e d t o c o m e t o t h e s t o r e physically
because of online , over phone ordering process
I I I. B u t t h e c h a i n s t o r e c a n o f f e r c u s t o m e r t h e o p t i o n o f o r d e r i n g merchandise online
and pick it up from nearest store on that day.
I V . J & R c a n o n l y m a k e t h i s o p t i o n a v a i l a b l e f o r t h e c u s t o m e r i n n e w w o r k city area.
V . H o w e v e r e - c o m m e r c e c a r r i e d o u t p o t e n t i a l i t y f r o m t h e b u s i n e s s a n d represent the
future.

c. Can J&R keep up with the competition since it is more or less a local brand competing with nation- wide
chains? How would you measure its success in keeping up with the competition?

Sol:
J&R can compete with chain shop in the new work city as:

i . A u t h o r i z e d D e a l e r : E a c h p r o d u c t y o u b u y f r o m J & R i s b a c k e d b y t h e full support of

the manufacturer
i i . L o w P r i c e s : T h r o u g h o u r s t r a t e g i c r e l a t i o n s h i p s , a u t h o r i z e d dealerships, the expertise
of our buyers, and exceptional promotions, J&R can offer excellent prices and outstanding values
i i i . O n l i n e R e b a t e C o u p o n s a n d O f f e r s : J & R a l s o p r o v i d e s p e c i a l promotions and rebate
offers for the customer.
i v. C u s t o m e r S e r vi c e : C u s t o m e r c a n p h o n e a n d s p e a k t o j & r experienced customer
representatives for assistance

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 v . E a s y t o U s e W e b s i t e : J R . c o m h a s r e c e i v e d c o n s i d e r a b l e p r a i s e f r o m leading
publications and customers regarding the ease of navigating and ordering through website
v i . T e c h n i c a l A d v a n t a g e : J & R u s e t h e l a t e s t t e c h n o l o g y a n d c r e a t i v e idea which has an
better impact on the customers.

4. Cell phones present a partial solution to the problem of connectivity for international firms. The
Growth of mobile phone coverage reduced the staple millet’s price differences across markets by 15
percent between 2012 and 2016, with a greater impact on markets isolated by distance and poor-quality
roads. Cell phones allowed traders to respond to surpluses and shortages in the market, making better
decisions about price and delivery. As a result, trader profits rose and prices fell.

• What strategies are cell phone companies using to ‘close the digital divide’ and market phones to
the poorest segment of the world’s population?

Ans:

Companies such as Nokia are sending human behavior researchers to gather as muchuseful information as they
can about potential cell phone buyers. This strategy is basedon a human centered design. The researchers send
their data to cell phone designers andthey design the devices according to the populace. Making affordable
devices for the poorest of nations is another obstacle for cell phone providers to overcome. Makingcheaper
devices is only part of the equation, the cost of data network access has to benegotiated to ensure that lower
income consumers can afford to purchase that access on acontinual bases.

Why do economists predict that widespread cell phone usage in developing countries would have an
unprecedented effect on the growth of those countries?

Ans:

Use of mobile phones worldwide has grown to an unprecedented rate for over a decade, especially in developing
countries where traditional landline networks have been slow to expand. Through mechanisms like reduced
costs, reduced risk associated with remittances and personal travel, and increased information
and communication economic theory predicts that the aggregate effects of widespread use of mobile phones
may increase economic efficiency. This is especially true among the poor, who would receive significantly high
marginal benefit from these changes. Many economists believe that widespread cell phone usage in developing
countries would have a profound and revolutionary effect on their economic well being in a way that traditional
methods of foreign aid have failed to achieve.

What are some examples of how cell phones might increase quality of life for residents of developing
countries?
Ans: Cell phones enable poor populations that are isolated geographically to remain reachable under
practically any circumstance. War, drought, natural disasters, or extreme poverty are some of the circumstances
that are know to disperse populations in developing countries and driving the need for mobile communicative
devices. Cell phones also have implications for medicine in these countries. Doctor, patient interaction is
increased by cell phone. The information gathered through treatment and the classification of prevalent diseases
was greatly increased by cell phone use in these countries. Business and industry production is also increased by
cell phone use. It has been documented that possession of a cell phone increases profits on an individual level,
allowing people to take advantage of business of business opportunities. A study conducted by the Centre for
Economic Policy Research shows a direct correlation between cell phone ubiquitous dissemination and positive
gains in a country’s gross domestic product

5. What types of problems might a group encounter when trying to make a decision as a group? What
kinds of decisions might need to be made as a group? Increasingly GDSS use a virtual meeting or
telepresence capability rather than physical group decision rooms used when these techniques were first
developed.

Sol:
Group decision-making is a situation faced when individuals collectively make a choice from the alternatives
before them. The decision is then no longer attributable to any single individual who is a member of the group.
This is because all the individuals and social group processes such as social influence contribute to the outcome.

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The decisions made by groups are often different from those made by individuals. Group polarization is one
clear example: groups tend to make decisions that are more extreme than those of its individual members, in the
direction of the individual inclinations.
There is much debate as to whether this difference results in decisions that are better or worse. According to the
idea of synergy, decisions made collectively tend to be more effective than decisions made by a single
individual. However, there are also examples where the decisions made by a group are flawed, such as the Bay
of Pigs invasion, the incident on which the groupthink model of group decision-making is based.
Groups have greater informational and motivational resources, and therefore have the potential to outperform
individuals. However they do not always reach this potential. Groups often lack proper communication skills.
On the sender side this means that group members may lack the skills needed to express themselves clearly. On
the receiver side this means that miscommunication can result from information processing limitations and
faulty listening habits of human beings. In cases where an individual controls the group it may prevent others
from contributing meaningfully.

DECISION MAKING PROCESS:

Decision making steps this model depicts are as follows:

1. Identify an existing problem

2. List possible alternatives for solving the problem
3. Select the most beneficial of these alternatives.
4. Implement the selected alternative.
5. Gather feedback to find out if the implemented alternative is solving the identified problem.

It is also the case that groups sometimes use discussion to avoid rather than make a decision. Avoidance tactics
include the following:
Procrastination
Replacing high-priority tasks with tasks of lower priority. The group postpones the decision rather than
studying the alternatives and discussing their relative merits.
Bolstering
The group may quickly or arbitrarily formulate a decision without thinking things through to
completion. They then bolster their decision by exaggerating the favorable consequences of the
decision and minimizing the importance of unfavorable consequences.
Denying responsibility
The group delegates the decision to a subcommittee or diffuses accountability throughout the entire
group, thereby avoiding responsibility.
Muddling through
The group muddles through the issue by considering only a very narrow range of alternatives that differ
to only a small degree from the existing choice.
"Satisficing"
A combination of the words "satisfy" and "suffice". Members accept a low-risk, easy solution instead
of searching for the best solution.
Trivialization
The group will avoid dealing with larger issues by focusing on minor issues.
Two fundamental "laws" that groups all too often obey:
Parkinson’s Law
"A task will expand to fill the time available for its completion."
Law of triviality
"The amount of time a group spends discussing an issue will be in inverse proportion to the
consequentiality of the issue." (For example, a committee discusses an expenditure of $20 million for 3
minutes and one for $500 for 15 minutes.)
Failure to share information

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 Research using the hidden profiles task shows that lack of information sharing is a common problem in
group decision making. This happens when certain members of the group have information that is not
known by all of the members in the group. If the members were to all combine all of their information,
they would be more likely to make an optimal decision. But if people do not share all of their
information, the group may make a sub-optimal decision. Stasser and Titus have shown that partial
sharing of information can lead to a wrong decision. [13] And Lu and Yuan found that groups were eight
times more likely to correctly answer a problem when all of the group members had all of the
information rather than when some information was only known by select group members.

Below are six different kinds of group decision-making processes and the pros and cons for each.
1. Unanimous
Unanimous decisions occur when all agree without reservation. They are easier for trivial matters, but very
difficult for important and/or higher-pressure situations. Be careful not to confuse unanimity with consensus.
2. Consensus
In a consensus, each person agrees to support the decision, though all may not agree, and gives his or her
consent. Despite differing perspectives, all agree that they can live with the decision. Consensus is the process
most likely to ensure that each person’s input is valued, heard and considered.
3. Majority Rule
Majority rule decisions are made when more than half the group votes in favor. This process is used frequently
in democracies, and rarely in organizations. Majority decisions, as with any voting situation, risk that you won’t
have full support and that those not in agreement with the majority may do something less than helpful later. It
also carries the possibility of establishing an “us” versus “them” mentality.
4. Expert
In this scenario, the group delegates the decision-making responsibility to an expert or small subgroup. This
type of process is good for situations that do not require the entire group’s participation.
5. Executive
In an executive decision, the leader makes the call. Most decisions are executive, and should be. The big
mistake is that often the kind and amount of participation leading up to this kind of decision-making isn’t what it
should be. The best decision-making is typically a highly participative executive decision. This approach is
critical when dealing with issues such as team vision and mission.
6. Default
In this scenario, a decision is made by action, or more likely, inaction that forces a conclusion. It is a powerless
form of decision-making and is best avoided.

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