Week 1
Answered By Balaji U (Mar 3, 2023)
1. In the light of the system, describe the decisions to be made in the area
of strategic planning, managerial control and operational control?
What information would you require to make such
decisions?
The restaurant ordering system described in the case study provides valuable
information to support decision-making at different levels of the organization,
including strategic planning, managerial control, and operational control.
Strategic planning decisions would involve using the data collected by the system to
develop long-term plans and objectives for the restaurant. This might include
analysing sales trends, identifying popular and unpopular menu items, and forecasting
future demand for certain types of food and drink. In order to make these decisions,
managers would need access to data such as weekly and monthly sales reports,
customer feedback surveys, and inventory levels.
Managerial control decisions would involve using the system to monitor and manage
day-to-day operations in the restaurant. This might include tracking server
performance, monitoring food costs, and identifying bottlenecks in the kitchen. To
make these decisions, managers would need access to data such as server performance
reports, food cost analysis, and kitchen order times.
Operational control decisions would involve using the system to make immediate
decisions related to customer service, order management, and kitchen operations. This
might include identifying out-of-stock items, adjusting menu items in real-time based
on demand, and tracking table turnover rates. To make these decisions, servers and
kitchen staff would need access to data such as real-time inventory levels, table
turnover rates, and customer feedback.
Overall, the system provides valuable information that can support decision-making at
all levels of the organization. In order to make effective use of this information,
managers and staff would need to be trained to understand how to use the system and
interpret the data it provides. The system would also need to be flexible enough to
allow for changes in menu items, inventory levels, and other factors that could impact
decision-making.
2. What would make the system a more complete MIS rather than just
doing transaction processing?
The system described in the case study appears to be a transaction processing system
(TPS) that captures and processes data related to restaurant orders, inventory
management, and sales. However, to be considered a more complete Management
Information System (MIS), the system would need to provide additional functionality
beyond just transaction processing.
One way to expand the system's functionality would be to incorporate decision
support capabilities. Decision support systems (DSS) are designed to help managers
make better decisions by providing them with relevant information and analytical
tools. In the case of the restaurant ordering system, a DSS could be used to analyse
sales data to identify trends and patterns in customer orders. For example, the system
could generate reports on the most popular menu items, peak ordering times, and
customer demographics. This information could be used by management to optimize
menu offerings, pricing, and staffing levels.
Another way to enhance the system's capabilities would be to add business
intelligence (BI) tools. BI systems are designed to extract insights from data by using
advanced analytical techniques such as data mining and predictive analytics. In the
case of the restaurant ordering system, a BI tool could be used to analyse sales data to
identify patterns and trends that may not be immediately apparent. For example, the
system could be used to identify customer preferences for certain ingredients or menu
items, which could be used to develop new menu offerings or specials.
Finally, the system could be expanded to include customer relationship management
(CRM) functionality. CRM systems are designed to manage and analyse customer
interactions and data throughout the customer lifecycle. In the case of the restaurant
ordering system, a CRM system could be used to capture customer preferences,
feedback, and contact information. This information could be used to personalize the
customer experience, create targeted marketing campaigns, and build customer
loyalty.
In summary, while the restaurant ordering system described in the case study is a
useful transaction processing system, it could be enhanced to become a more complete
MIS by adding decision support, business intelligence, and customer relationship
management capabilities. These enhancements would provide managers with the tools
and insights they need to make informed decisions, optimize operations, and build
customer loyalty.
3. Explain the probable effects that making the system more formal
would have on the customers and the management.
If the system were made more formal, it could have both positive and negative effects
on customers and management.
On the positive side, making the system more formal could lead to increased accuracy
and efficiency in order processing, which could result in faster service and fewer
mistakes. This could lead to increased customer satisfaction and loyalty, as customers
are likely to appreciate the convenience and reliability of the system.
However, making the system more formal could also have negative effects on
customers and management. For example, it could make the restaurant feel less
personal and less attentive to customers' needs. This could be particularly problematic
for customers who are looking for a more personalized dining experience or who
value human interaction in their interactions with restaurant staff.
From the management perspective, making the system more formal could lead to
increased costs and complexity, as the restaurant would need to invest in new
hardware, software, and training to implement the new system. This could also lead to
decreased flexibility and adaptability, as the restaurant would need to conform to the
constraints and requirements of the new system.
Overall, it is important for the restaurant to strike a balance between formality and
informality in its ordering system. By doing so, it can ensure that customers receive
the high-quality service they expect while also maintaining the personal touch and
human interaction that is essential to a positive dining experience.