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Decision-Making in Integrated Business Management Systems

11 Pages3005 Words280 Views
   

University of Southern Indiana

   

Leadership Skills and Innovation (MNGT 611)

   

Added on  2020-02-24

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MNGT 611 - This report regards a merger between 5-holiday hotels, which have decided to integrate their operations to enhance service delivery to their consumers, as well as for the sake of increasing their profits.

Decision-Making in Integrated Business Management Systems

   

University of Southern Indiana

   

Leadership Skills and Innovation (MNGT 611)

   Added on 2020-02-24

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Running head: IT MANAGEMENT ISSUES1IT Management IssuesStudent’s NameInstitutionDate
Decision-Making in Integrated Business Management Systems_1
IT MANAGEMENT ISSUES2IntroductionEvery profit-making entity I faced with challenges in decision-making, especially around the best business system which is to be used to expand operations in the entity. The best way is to embrace proper planning mechanisms, especially in an integrated business management software system. This is what in most cases, takes a back seat to short-term revenue goal for the entity. As a result, management ends up installing the disparate application at different times, to cover a different functional area that results in inefficiencies in business processes and software integration challenges. These problems are bound to come up and have to be avoided at all costs.General assumptions madeThis report regards a merger between 5-holiday hotels, which have decided to integrate their operations to enhance service delivery to their consumers, as well as for the sake of increasing their profits. The group, as one, operate a range of living quarters, in the Australian market. Consumers are also provided with popular holiday booking websites, and bookings are now managed through a single website (Bell et al. 2015). Prices vary based on demand and the season in question, which affects profit levels as well. One assumption is that all firms are operating in an Australian market, which is very diverse and characterized by high demand. Secondly, the management decisions made by the team affect all the five organizations, which need to be considered before implementation. The third assumption is that the long-term goal for all organizations is consumer retention, profitability, and increased market share. Decision 1 critiqueA customer loyalty scheme called Monet Loyalty will reward customers with airport transfers, free tours, and free meals.
Decision-Making in Integrated Business Management Systems_2
IT MANAGEMENT ISSUES3Organizations have to come to terms with the fact that only 3& of new visitors who maketheir first purchase is likely to return and make a purchase in the same organization. This statisticis very alarming, especially because consumer loyalty is highly desired in an organization. The consumer loyalty program is a very strategic decision, which should be implemented without hesitation from management in the organization. There are numerous financial and non-financial benefits which are attached to a loyalty program. a)The program will help stop competing on price with other competitors in the marketThe modern business environment has made it very easy for shoppers to be able to make comparisons of hundreds of pieces in a concise time. Adding this loyalty program will help top competing on prices with other organizations, which will give the entity another way to differentiate its services in this industry. The main aim of this decision I to offer an enhanced consumer experience, through connecting with their emotions, and knowing what they love most. As this emotional connection develops, consumers will be able to see the organization as the best in the industry hence strengthen their loyalty.b)The program will help retain the existing consumersLoyal consumers, according to statistics, spend 67% more than new consumers. This statistic cannot be ignored, considering the consumer retention costs, which range from 4 to 30 times lessthan the consumer acquisition costs (Hill et al. 2015). It is surprising that a mere 5% retention in consumers can lead to an increase in organization profits by more than 80%. This decision will help the organization retain existing consumers, who will be attached to its services as compared to the competitors. c)The program will help increase the consumer lifetime value
Decision-Making in Integrated Business Management Systems_3
IT MANAGEMENT ISSUES4Consumer lifetime value refers to the net profit which is attributed to the overall relationship thatis in the long run, maintained with the consumer. This aspect is meant to measure how valuable aconsumer is to you as well as the projected value of the consumer and their interactions over a period. The loyalty program proposed by the management and decisions made will help in the provision of behavioral data, which will help analyze the consumers ‘buying' habit in the entity. Consumer steps will be monitored, preferences determined, and the organization will be able to reward them at each set of their experience in the organization. d)The program will help build personal relationshipEmotional connection is significant and helps consumers realize how true you are to them, as an organization. Consumers are more complicated than just a segmented category. Therefore, the program will help identify consumer changes, personal issues, and more so, provide unique service according to preferences (Cohen & Winn, 2017). e)The loyalty program will help in the creation of brand advocatesThe consumer loyalty scheme, known as the Monet Loyalty is expected to reward consumer withairport transfers, and free tours coupled with free meals. The above advantages are bound to be realized, hence the need to embrace the decision by management, for the profitability, increased customer share and positive public image for the organization. 73% of millennial take it upon themselves to help friends and families to make smart purchase decisions. This is an effective system that helps work towards consumer acquisition as well as increasing loyalty of the consumers towards the organization services. Decision 2 critiqueInteractive tools will be developed to allow to customers to choose, which particular tours they would like to undertake.
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