INF10003 Business Information Systems

Running head: BUSINESS INFORMATION SYSTEMS
INF10003 - Assignment 1
Introduction to Business Information Systems: A Case Study of Cakes and Buns
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University Name:
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1BUSINESS INFORMATION SYSTEMS
Executive Summary
This report is focused on a business “Cakes and Buns” which started journey in October 1985 as
a stand in the local market. It was being used by Jillian Norman and Rosie Khol for
supplementing their university costs. The business soon started to gain popularity and there was
increase in customers as they decided to develop online presence for promoting their products to
the offshore market along with local market. In this report, the discussions are carried out by
analyzing the business case of Cakes and Buns as they wish to develop their online presence.
The business case is analyzed using SWOT and Porter’s five forces analysis to determine their
strengths and weaknesses so that they can achieve operational excellence and business growth. In
this report, some screens have also been designed for the business to present an overview of the
prototype for their online presence.
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Table of Contents
Introduction......................................................................................................................................3
Part A: Evaluations of the business.................................................................................................3
Industry Background...................................................................................................................3
Business model and environment................................................................................................4
Value proposition.........................................................................................................................4
SWOT analysis and discussion....................................................................................................8
Porters 5 forces Analysis outcomes review.................................................................................9
Table creation and discussion....................................................................................................10
Part B: Information Portal design..................................................................................................12
Page designs...............................................................................................................................12
Home page.............................................................................................................................12
Login/Register page...............................................................................................................13
Products page.........................................................................................................................14
Product order page.................................................................................................................15
Design review and justification.................................................................................................15
HCI design principles............................................................................................................16
Web usability guidelines........................................................................................................16
Customer tools and engagement methods for the website.........................................................16
Conclusion.....................................................................................................................................17
Bibliography..................................................................................................................................18
Appendix........................................................................................................................................21
Completion of the Unfinished Spreadsheet...............................................................................21
Wholesale Price Values.............................................................................................................21
Retail Sales Total Values...........................................................................................................22
Wholesale Sales Total Value.....................................................................................................22
Formula View of the spreadsheet..............................................................................................23
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Introduction
The focus of this report is on analyzing the business case of “Cakes and Buns” so that
they can achieve their desired goals and handle the growth in customer base. The goal of the
business is to promote their products in the local market as well as offshore market. This report
presents the analysis of strengths, weakness, opportunities and threats related to the business
with the help of SWOT analysis so that they are able to utilize them for improving the business
conditions. The business owners have decided to develop their online presence, it will be done
with the help of a website for the business so that they can operate online.
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Part A: Evaluations of the business
Industry Background
The business case that has been chosen for this study is “Cakes and Buns” that was
started in year 1985 as a stand in the local market. It was being used by Jillian Norman and Rosie
Khol as a platform for supporting their university costs. With time, their business gained
popularity and there was increase in customer bases as more and more people started to like their
products. In 1990, they opened up their first store and struggled to compete for three years
against the pioneers Brumby’s and Bakers Delight. Their product gained popularity when one of
their loyal customers became a renowned TV and film star as he ate one of their products in a
locally produced TV show. The increase of popularity in the local market have helped them to
open up three stores in Melbourne and now lots of customers overseas are expressing their
interest over their products. Hence, they have decided to develop their online presence which
will be done with the help of a business so that they can promote their products in the offshore
market along with local market.
Business model and environment
From the presented business case of “Cakes and Buns” it can be said that the best suited
business model for the organization is bundling which involves selling of goods and services
together. The owners of the business have decided to develop their online presence which will
comprise of selling their products online and feedback facility for the service provided to the
customers. The customers will be able to place order for their products online through a business
website and they will be also able to provide feedback on the products.
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Hence, the chosen business model is suitable for the organization as it will help to
support goals and objectives of the business. The business model will help them to achieve the
desired business goals and fulfill requirements of the customer. The Bundling model is best
suited for the organization as it comprises of selling both products as well as services (Wirtz et
al. 2016). The target audience is the customers who want to have the lovely products Muffin, Pie
and Tart being offered by the business. Therefore, the bundling business model will help to
fulfill demand of the customers along with the business objectives.
Value proposition
From the provided data in spreadsheet containing information about the products being
sold over 1 day by the business, the trends and insights being analyzed are presented below:
Figure 1: Price comaprison for products
(Source: Created by Author)
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From the above figure, it can be said that the wholesale price of each product being sold
is less than the retail price to a significant amount. This means there is significant profit being
achieved by the organization on products.
Figure 2: Quanity of Sold products in morning
(Source: Created by Author)
Muffin
Muffin
Muffin
Pie
Pie
Pie
Pie
Muffin
Muffin
Muffin
Muffin
Muffin
Muffin
Pie
Pie
Pie
Tart
Tart
Muffin
Muffin
Muffin
Pie
Muffin
Muffin
Muffin
Pie
0
1
2
3
4
5
6
7
8
9
Products sold in Morning time
Figure 3: Sold products during morning
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7BUSINESS INFORMATION SYSTEMS
(Source: Created by Author)
The above figure demonstrates the quantity of products being sold in the morning time in
which it has been identified that the most selling products is Muffin. Mostly, Muffin products are
being sold in the morning as the customers are school and office goers which means that those
products increases profitability of the business. This means that the quality and quanity of the
Muffin products have to be sufficient so that the business could retain their competitive
advantage.
Figure 4: Quanity of Sold Products in day
(Source: Created by Author)
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8BUSINESS INFORMATION SYSTEMS
Muffin
Muffin
Pie
Pie
Muffin
Muffin
Muffin
Pie
Tart
Muffin
Muffin
Muffin
Muffin
0
1
2
3
4
5
6
7
8
9
Products sold in day time
Figure 5: Quanity of Sold Products in day
(Source: Created by Author)
The above figure demonstrates the products along with their quanitites being delivered to
the customers in the day time. It has been identified that the most selling products is Pie. Mostly,
Pie products are being sold in the day time as the customers have their lunch time during those
hours means that Pie products increases profitability of the business during that time. This means
that the quality and quanity of the Pie products have to be sufficient during that time so that the
business could retain their competitive advantage.
From the overall analysis of the products being sold over 1 day by the business, it can be
said that Muffin and Pie products have major popularity. The business should focus on
increasing the quality and variety of those products so that they could gain a competitive
advatage and retain their customer base.
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SWOT analysis and discussion
SWOT analysis is a conceptual framework which is being used to evaluate the
competitive advantage of a company by determining their strengths, weaknesses, opportunities
as well as threats to the business. This framework helps to measure the capabilities of an
organization to determine what can be done or not by the business (Bull et al. 2016). SWOT
analysis is based on four factors so that the organizations are able to develop awareness about the
factors that are involved in making decisions. This analysis focuses on four elements so that the
companies could identify the various forces that influences their strategy, action or any initiative
(Phadermrod, Crowder and Wills 2016). This analysis provides an overview on present condition
of the company. While using SWOT analysis, the organization have to be realistic about their
positive and negative points.
The SWOT analysis being carried for the presented case of Cakes and Buns has been
illustrated below which demonstrates their present business condition. The analysis has been
carried out so that they can identify their competitive advantage over the other business pioneers
in the market.
Strengths
 Huge customer base and popularity.
 Uniqueness of products.
 Increase of stores in local market.
 Follows a mission statement.
Weaknesses
 Lack of adequate resources.
 Lack of technical skills and expertise.
 Lack of awareness on technology
implementation.
Opportunities
 Acquire market growth through marketing
strategies.
Threats
 Loss of customer base.
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 Use strong financial position for acquiring
market position.
 Promotion of products in local as well as
offshore market.
 Developing online presence for promoting the
business.
 Reduction in quality.
 Increased competition from pioneers.
 Insufficient market strategies.
 Changes in pricing and quality.
Porters 5 forces Analysis outcomes review
The Porter’s five forces analysis is used to shape the competition of an industry in the
market. This analysis presents that the understanding of both competitive forces as well as
overall structure of the industry is significant for making effective strategic decisions (Dobbs
2014). This analysis being carried out on the presented business case of “Cakes and Buns” is
demonstrated as below:
Competitive rivalry: The business have struggled for competition with the pioneers
Brumby’s and Bakers Delight during the beginning and it may also face the same competition
from existing or new business rivals. The companies or business with larger resources may
acquire the market share with innovative idea or product.
Bargaining power of suppliers: There are various suppliers of raw materials required for
producing their product (Dalken 2014). The diversity in the supplier base will limit the
bargaining power of suppliers.
Bargaining power of customers: The customers of the business includes both wholesale
as well as end customers. The bargaining capabilities of the wholesale customers is considered
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11BUSINESS INFORMATION SYSTEMS
up to an acceptable level so that they could gain higher margins than their competitors. For the
end customers, there is a certain limit for bargaining as the business wants to have a strong brand
value and recognition.
Threat of new entrants: There is requirement of huge capital for marketing or
advertising hence, the entry of new business may not possible. However, new players may enter
the business industry in future.
Threat of substitute products: The demand for food items being offered by the business
will continue with growth of the business and their uniqueness is providing support to the
industry.
Table creation and discussion
The provided information about the products including the prices have been used to
complete the required values of Wholesale Price, Retail Sales Total and Wholesale Sales Total.
The calculation of the required values has been completed with the help of appropriate formulas
and it is presented as below:
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Product Type Dietary
Information Size Unit Retail Price Qty sold Time Wholesale
Price
Retail Sales
Total
Wholesale Sales
Total
Muffi n Raspberry Non GF L 2.20$ 4 7:09:00 AM 1.96$ 8.80$ 7.83$
Muffi n Banana Non GF L 2.20$ 4 8:45:00 AM 1.96$ 8.80$ 7.83$
Muffi n Apple Non GF L 2.20$ 4 10:13:00 AM 1.96$ 8.80$ 7.83$
Pie Vegetable Non GF SM 1.50$ 4 12:05:00 PM 1.35$ 6.00$ 5.40$
Pie Vegetable Veg SM 1.70$ 4 12:44:00 PM 1.53$ 6.80$ 6.12$
Pie Vegetable Veg M 3.50$ 4 1:02:00 PM 3.15$ 14.00$ 12.60$
Pie Vegetable Veg M 4.20$ 4 1:05:00 PM 3.78$ 16.80$ 15.12$
Muffi n Raspberry Non GF M 1.20$ 6 7:03:00 AM 1.07$ 7.20$ 6.41$
Muffi n Raspberry GF M 1.80$ 6 7:07:00 AM 1.47$ 10.80$ 8.84$
Muffi n Banana Non GF M 1.20$ 6 8:31:00 AM 1.07$ 7.20$ 6.41$
Muffi n Banana GF M 1.80$ 6 8:34:00 AM 1.49$ 10.80$ 8.94$
Muffi n Apple Non GF M 1.20$ 6 10:02:00 AM 1.07$ 7.20$ 6.41$
Muffi n Apple GF M 1.80$ 6 10:04:00 AM 1.66$ 10.80$ 9.94$
Pie Beef GF SM 1.50$ 6 12:04:00 PM 1.38$ 9.00$ 8.28$
Pie Chicken Non GF SM 1.30$ 6 12:05:00 PM 1.08$ 7.80$ 6.47$
Pie Chicken GF SM 1.60$ 6 12:24:00 PM 1.47$ 9.60$ 8.83$
Tart Lemon GF M 1.70$ 6 3:02:00 PM 1.56$ 10.20$ 9.38$
Tart Lemon Non GF M 1.30$ 6 3:05:00 PM 1.16$ 7.80$ 6.94$
Muffi n Raspberry GF L 2.60$ 7 7:45:00 AM 2.39$ 18.20$ 16.74$
Muffi n Banana GF L 2.60$ 7 8:53:00 AM 2.39$ 18.20$ 16.74$
Muffi n Apple GF L 2.60$ 7 10:15:00 AM 2.39$ 18.20$ 16.74$
Pie Chicken Non GF L 8.30$ 7 12:14:00 PM 6.89$ 58.10$ 48.22$
Muffi n Raspberry Non GF SM 0.80$ 8 7:00:00 AM 0.71$ 6.40$ 5.70$
Muffi n Banana Non GF SM 0.80$ 8 7:55:00 AM 0.71$ 6.40$ 5.70$
Muffi n Apple Non GF SM 0.80$ 8 9:01:00 AM 0.71$ 6.40$ 5.70$
Pie Beef Non GF SM 1.20$ 8 11:55:00 AM 1.04$ 9.60$ 8.35$
Pie Chicken GF M 4.10$ 8 12:02:00 PM 3.77$ 32.80$ 30.18$
Tart Lemon Non GF SM 0.90$ 8 2:55:00 PM 0.80$ 7.20$ 6.41$
Pie Beef GF M 3.90$ 9 12:12:00 PM 3.59$ 35.10$ 32.29$
Pie Beef Non GF L 7.90$ 9 12:14:00 PM 6.87$ 71.10$ 61.86$
Pie Chicken Non GF M 3.30$ 11 12:45:00 PM 2.74$ 36.30$ 30.13$
Pie Beef Non GF M 3.20$ 12 12:09:00 PM 2.78$ 38.40$ 33.41$
Qty Totals 211 Sales Totals 67.96$ 530.80$ 467.76$
Figure 6: Completed spreadsheet for the Cakes and Buns Sales
(Source: Created by Author)
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Part B: Information Portal design
Page designs
Home page
Figure 7: Home page for the website prototype
(Source: Created by Author)
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Login/Register page
Figure 8: Login/Register page for the website prototype
(Source: Created by Author)
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Products page
Figure 9: Products page for the website prototype
(Source: Created by Author)
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Product order page
Figure 10: Product order page for the website prototype
(Source: Created by Author)
Design review and justification
The designs being presented above are reviewed in terms of the HCI design principles
and web usability guideline is illustrated as below:
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17BUSINESS INFORMATION SYSTEMS
HCI design principles
Enabling the users to use shortcuts – The essential shortcut buttons have been placed in
every page so that the users can easily access and find functionalities that are offered by the
system (Knowles et al. 2016).
Permission for easy reversal of actions – The users can easily go back to previous stage
from one page and discard their actions.
Support the purpose of design – The designs will provide the users with feature to place
order for a product online.
Web usability guidelines
Matching between systems and real world – The system acts in same manner as that of
physical stores. The users will be able to use the system for achieving their desired goals by
placing order online.
Use control and freedom – The users will have the facility to control their action and they
will have freedom to navigate through different functionalities of the system (Nielsen 2016).
Flexibility and efficiency of use – The users will have the flexibility of using the system
as per their requirement so that they could fulfill their purpose efficiently.
Customer tools and engagement methods for the website
The website could be embedded with SEO and traffic management tools so that the
business could keep track of the customers or people visiting their website. The other technique
is to provide the customers with offers and discounts so that more customers are attracted
towards the business.
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Conclusion
The business owners have decided to develop their online presence and it will be done
with the help of a website for the business so that they can operate online. From the overall
analysis on the business case of “Cakes and Buns”, it can be said that the development of website
will help them to achieve better growth and excellence. The analysis of strengths, weakness,
opportunities and threats related to the business has presented that proper marketing strategies
have to be developed for improving the business conditions. The initial design of the prototype
page has been provided for the business but there is requirement of changes in the design so that
the website can be made more attractive. The business will not only achieve profit but growth of
customer base with the help of a website.
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19BUSINESS INFORMATION SYSTEMS
Bibliography
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Vivek, S.D., Beatty, S.E., Dalela, V. and Morgan, R.M., 2014. A generalized multidimensional
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Appendix
Completion of the Unfinished Spreadsheet
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Wholesale Price Values
Retail Sales Total Values
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Wholesale Sales Total Value
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Formula View of the spreadsheet
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