Credit Cards and Bucks Phyz Sales

This assignment examines the potential benefits of implementing a credit card system at Bucks Phyz, a company facing difficulties in managing customer credit. It analyzes the current challenges of extending credit to customers, including trust verification procedures. The assignment recommends credit cards as a solution to mitigate these issues by streamlining the credit process and enhancing customer security.

Running head: INFORMATION SYSTEM OF BUCKS PHYZ
Information System of Bucks Phyz
Name of Student-
Name of University-
Author’s Note-

1INFORMATION SYSTEM OF BUCKS PHYZ
Executive Summary
Bucks Phyz is a small company that deals with different kinds of sales. The company of
Bucks Phyz has a finance director Lucida who manages all the sales in the company. There are
different issues in the company which are faced by the directors and the mangers of the
company. There are also issues faced by the staffs after installing the new tool of pricing in the
company. Training is not given properly to the staffs about how to use the tool and how to work
properly with the template of giving credit to the customers. This report states the details of all
the issues of Bucks Phyz and how to mitigate the issues. All such ways to mitigate the issues of
the company are illustrated in this report. This report states the details of the sales department
and the issues faced by them. There is also amenities and disadvantages of using the credit cards
in the company.

2INFORMATION SYSTEM OF BUCKS PHYZ
Table of Contents
Executive Summary.............................................................................................................1
1. Background of sales department in Bucks Phyz..............................................................3
2. Internal Control Weakness..............................................................................................3
3. Implementing credit cards in Bucks Phyz.......................................................................5
1. Benefits of using credit cards in Bucks Phyz..............................................................5
2. Disadvantages of using Credit cards............................................................................6
3. Recommendation for CEO..........................................................................................7
4. Conclusions......................................................................................................................7
5. Bibliography....................................................................................................................8

3INFORMATION SYSTEM OF BUCKS PHYZ
1. Background of sales department in Bucks Phyz
The staffs of the sales are paid a small basic salary and rest salary is made on the
commission of the sales after the invoice of the selling item is created. The head of sales Mr.
Barry has commented that Bucks Phyz has introduced a new tool for pricing with which the
managers of sales can calculate the price of offers they are giving out. The new tool was capable
to have the cost structure, also is capable to calculating the workload that is caused by potential
customers and the targets of EBIT are also calculated in the new tool. Bucks Phyz has some
policies that the contracts of the offers are to be signed by Barry or by Finance Director Lucida.
There had been some cases where the customers had demanded for some changes to the contract
draft of the company. This faced a problem in the sales department of Bucks Phyz. When
problem arises with the potential customers regarding the contract, an email is sent to the Mary,
the AR manager. She investigates creditworthiness of the customer. The finance director Lucida
said that there were certain credit check cases in Bucks Phyz with some of the new customers
after signing in the contract and after that the invoices are issued.
2. Internal Control Weakness
A. Risk in Bucks Phyz B. Impact of the Risk C. Mitigation process of the
Risks
1. The new pricing tool that
was implemented by Bucks
Phyz was not familiar with
all the staff in the sales
department. For the old tool
that was used in the
As there was no such training
held in the company, the
staffs in the sales department
were not used with the new
tool that was implemented by
the company. The template of
To mitigate the risk of doing
the task properly, the
employees and the staffs of
the company should be given
proper training. At the time of
joining of a particular staff,

4INFORMATION SYSTEM OF BUCKS PHYZ
company, proper training
was given to the staffs. But
no such training was given
when the new tool for
pricing was implemented.
the tool was unknown to the
staffs of the sales department.
As no training was there,
always there is a risk of doing
a mistake by the employees
of the company and as they
are not used to the template,
they progress of the work
may become slower.
training should be given and
as the system is new to all the
staffs, all the existing staffs
should also be trained about
how to use the system and
how to fill the template. To
make the working process of
Buck Phyz faster, proper
training should be provided to
all their employees.
2. There are many standards
in the company. But none of
the standardization is
followed by the employees of
the company. None of the
staffs follows the
standardization process in
Bucks Phyz. No
standardization process is
mapped in the company.
There is a contract template
that is available in the intranet
of the company.
As no such rules, regulations
are followed by the company
regarding the contract
template, the company may
face problem in future works.
As new employees are hired
by Bucks Phyz, and also no
such training is provided by
the company, there is a high
chance of making mistake.
To mitigate this risk, it is
suggested to imply the
policies and standards strictly
in the company. As there is
no such strict rules and
regulations available, the
employees are not bound to
follow any kind of template
or certain format for the
contracts that are held in the
company. The standardization
process is to be mapped as
soon as possible by the

5INFORMATION SYSTEM OF BUCKS PHYZ
company.
3. There is another problem
of contract negotiations that
are held in the company.
There many negotiations that
arise in the company from the
potential customers. If credit
is given to the customers, that
is very risky for the company
if the customer is not loyal to
Bucks Phyz. The credit
worthiness of the customers
is checked by the AR
manager of the company and
if the rating is good, then the
customer is given credit from
the company.
The process of giving credit
to the customers after
checking their credit
worthiness is very risky for
the company. The customer
can be trust worthy all the
time, but if he is
untrustworthy a single time,
then the company will face a
great loss.
To mitigate this risk, the
company should first verify
the customer before giving
them credits. Only the credit
worthy customers cannot be
trusted to give the credit. Any
grading scale cannot define
the trust worthy of a
customer. The payment
method of the company
should be improved and not
get neglected by the
managers and the fiancé
director of the company.
3. Implementing credit cards in Bucks Phyz.
3.1. Benefits of using credit cards in Bucks Phyz
There are many advantages of using business credits cards. If Bucks Phyz uses credit
cards, there are many advantages. First of all the credit cards that can be used instead of giving
line of credits to the customers. The line of credits has a fixed rate of interest but the credits cards
that are issued by the company have a revolving line of credit. In credit cards, the user must

6INFORMATION SYSTEM OF BUCKS PHYZ
repay the monthly bill while using the credit card which is not exactly the same case in line of
credit. There is another advantage of using the credit card is the amount of interest that is
imposed on the card. Small business like Bucks Phyz has some fixed amount of loan or some
fixed line of credits which results in large amount of financing for the company. The credit that
is given by Bucks Phyz has very low cost of interest. The credit cards have easier qualification
which helps the business owners to do well in the credit history. Credit cards are much more
convenient in the financing sector of the Bucks Phyz. The managers of the Bucks Phyz can have
an easy look on the funds of the company. There are higher credit limits in the credit cards that
are used by the company.
3.2. Disadvantages of using Credit cards
As there are advantages of using credit cards, there are many disadvantages of using the
credit cards in Bucks Phyz. Using the credit card in the company increases the cost of expenses
in the company. Small businesses like Bucks Phyz finds difficult to invest such a huge amount of
money on credit cards for their customers. There has to be a personal legal liability of the credit
card that is used by the Bucks Phyz so that the customers who are given the credit are able to
repay their debts. If the customer does not repay their debts, they will have negative credit report
and will be considered as unable to borrow money from the company. The credit cards that will
be used by the company have less protection than the credit cards of the customers. Same level
of services is provided by many cards which make the cards less protected. The fluctuating rate
of credit cards is also a disadvantage for the company because they always have to update their
data of each customer which is an extra burden for Bucks Phyz.

7INFORMATION SYSTEM OF BUCKS PHYZ
3.3. Recommendation for CEO
The CEO is recommended to imply credit cards in the company to impose a proper
guideline and regulation to their customers. Trustworthy of the customer is checked before
allowing credit to the customer. But if credit card is implemented, the company will not have to
check the trust worthiness of the customer before applying credit.
4. Conclusions
The company of Bucks Phyz has many issues in their sales department which mainly
have to be resolved. The company of Bucks Phyz issues problem while giving credits to their
customers. They have to go through different procedures of checking whether the customer is
loyal or not. By implementing the process of credit cards, they can mitigate such process of
insecurity in the company.

8INFORMATION SYSTEM OF BUCKS PHYZ
5. Bibliography
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financial products: Evidence from credit cards. The Quarterly Journal of
Economics, 130(1), 111-164.
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Study in Context of SMEs in Pakistan. Abasyn Journal of Social Sciences–Special Issue:
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Al-Ghofaili, A. A., & Al-Mashari, M. A. (2014, August). ERP system adoption traditional ERP
systems vs. cloud-based ERP systems. In Innovative Computing Technology (INTECH),
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Almajali, D. A., Masa'deh, R. E., & Tarhini, A. (2016). Antecedents of ERP systems
implementation success: a study on Jordanian healthcare sector. Journal of Enterprise
Information Management, 29(4), 549-565.
Azevedo, P. S., & Azevedo, C. (2014, September). Reasons for success and failure when
implementing enterprise resource planning (ERP) systems: A case study in the hospitality
industry. In TMS ALGARVE 2014–MANAGEMENT STUDIES INTERNATIONAL
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Bricker, J., Dettling, L. J., Henriques, A., Hsu, J. W., Jacobs, L., Moore, K. B., ... & Windle, R.
A. (2017). Changes in US Family Finances from 2013 to 2016: Evidence from the Survey
of Consumer Finances. Fed. Res. Bull., 103, 1.