Decision Support System for Holst's Planets Music Emporium

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Decision Support System
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Holst’s Planets Music Emporium is the business that deals with the trade of the
musical instruments like the harps, mandolins, banjos, bagpipes, xylophones and
Hawaiian guitars. The business is owned by the former employee of the Human
resource management department. This business works by taking orders from
customers via e-mail and supplying the musical instruments. In the last some time, the
business has very positive growth. Initially, Dr Gustav used a personal computer for
managing the business works but now he is looking forward to an IT system to help in
manage and understand data and decisions. This work will be done for Dr Gustav Holst
by Celestial Technologies.
The Decision support system for any business is an information system that helps
different business enterprises in understanding and analyzing the data and helping
the business owners to make the right decisions for the business. these are the
applications that are operational and informational in nature. The DSS mainly works
to collect the data and analyses the large pile of the data and find the conclusion from
the processed data in order to help the user to find the solutions for the issues of the
business. For Holst’s Planets Music Emporium, the best way to analyze the sales
done till now and to find the solution to the problems of rising sales, the best Information
Technology system will be a Decision Support system. This system will be used by Dr
Gustav in order to make better decisions for the business (Yan, M. R., 2018).
For the business to be successful and beneficial the best criteria will be the amount of
profit gained. The profit is earned by the business organization by using the mark-ups.
These are the additional factors that when added with the cost price of the product
form the final selling price or the Maximum Retail Price. For the Holst’s Planets Music
Emporium, the best markup style, that will produce the maximum benefit will be the
Supplier type. The selection of the Supplier type markup will help the business to grow
and earn a profit. In the case where the selected markup is not appropriate, the
customer will decrease, or no profit will be generated.
Apart from markups, discounts are also used as a tool to gain market and customers. If
the plan to provide a discount of large orders is implemented, then the business profit
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of the company will be increased. This is not a necessary prediction, but an approach
to enhance business (Grzybowska, and Barcelo, 2012).
For gaining the right profit from trading and business, it is important that the selling price
must generate the invested money back. The musical instrument is delivered across
different cities using the freight services and it is important to include the freight
charge in the total cost of the goods and services. The freight cost is the
transportation cost in the business. For the business situation of Holst’s Planets Music
Emporium, the suitable freight type is Neptune Freight. If the freight type is shifted to
business, the selling price will be increased.
The business is profitable when the investment is lower then the generated revenue
and the investment cost depends on the import charges of the musical instrument. The
country with least amount of taxes on import and freight expense will be the best
suitable for the Holst’s Planets Music Emporium and in this case, Melbourne is the best
country for Holst’s Planets Music Emporium to be in business with. If some other
country is selected, then the change in the import charges, taxes, and freight expenses
will be observed (White Book - Discount Retailers & the Bank Card Business, 2002).
From Celestial Technologies, the best suggested IT system that can help Dr Gustav
Holst in managing his business and data is a Decision support system. For the
purpose of enhancing the business, the best mark-up type is Supplier type and best
freight type is Neptune Freight. Also, the plan for providing discounts will be beneficial
and the best country for Holst’s Planets Music Emporium will be Melbourne.
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References
Yan, M. R., 2018, ‘Improving entrepreneurial knowledge and business innovations by
simulation-based strategic decision support system’, Knowledge Management
Research & Practice, vol. 16, no. 2, pp. 173-182.
Grzybowska, H and Barcelo, J, 2012,’Decision Support System for Real-Time
Urban Freight Management’, Procedia - Social and Behavioral Sciences, vol. 39, pp.
712-725.
White Book - Discount Retailers & the Bank Card Business, 2002, Sanford C. Bernstein
& Co., LLC.
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