Management Case Study Report: The Diet Center and SAP ERP Decision

This report analyzes The Diet Center (DC), a nutritional company facing operational challenges. The case study explores DC's growth strategy, mission, and vision in relation to its SAP ERP decision, evaluating the need for an ERP system and assessing its costs and benefits. It examines the impact of ERP on various activities within the firm, including cost accounting, financial reporting, and supply chain management. The report discusses the future of DC by analyzing the potential impact of the SAP ERP system on its operations and financial results, including improved decision-making, increased sales, and streamlined business processes. The analysis incorporates external cases to support the findings and concludes with recommendations for successful ERP implementation to overcome the managerial and financial issues. The report highlights the importance of ERP systems in integrating operations, delivering real-time data, and achieving a competitive market position. The report also provides a framework for understanding the benefits of ERP systems in terms of improved data security, enhanced customer service, and increased profitability.

Running head: ASSESSMENT 3
Assessment 3: Management Case Study Report- The Diet Center: The SAP ERP Decision
Name of the Student:
Name of the University:

1ASSESSMENT 3
Table of Contents
1. Introduction.........................................................................................................................2
2. Evaluate the firm’s growth strategy, mission and vision in relation to their SAP ERP
decision......................................................................................................................................2
3. Assess the need and role of an appropriate ERP system in the operations of the firm.......4
4. Evaluate the costs and benefits of implementing an ERP system......................................5
5. Assess the effect of an ERP system on the various activities within the firm....................6
6. Discuss the future of the firm by analysing the potential impact of the SAP ERP system
on the operation and financial results.........................................................................................7
7. Conclusion..........................................................................................................................8
References..................................................................................................................................9

2ASSESSMENT 3
1. Introduction
The Diet Center (DC) was the nutritional company for offering food consultancy
services as well as catering services to the public. The company is facing issues when
compete into the local market. The company has a growth in its sales as well as
development of product. DC is facing issues in its operating results, excessive waste as
well as bottom line. DC is also facing managerial issues from hiring of staffs, supplier’s
bargaining power as well as controlling over the business operations to achieve a better
bottom line. Therefore, the company is decided to migrate the enterprise resource
planning for integrating the operations as well as delivering real time monetary as well as
functioning of data (El Hajj 2018). The sales manager of SAP in data processing is
suggested the company to migrate gold standard SAP business management software to
provide opportunities to the business organization.
2. Evaluate the firm’s growth strategy, mission and vision in relation to
their SAP ERP decision
The firm’s growth strategy is analyzed SAP strategic positioning in the market. The
company has its growth in sales in related to their competitors in the market as well as
general economy. SAP ERP decision is taking to be competitive in the market. Diet
Center has a competitive positioning based on some critical factors such as cost
leadership and differentiation to handle competitor’s pressure (Srivastava and Misra
2017). The intensive growth strategies adopted by The Diet Center is achieving growth
targets such as penetration in the market, development of product and market
development.
Cost leadership strategy allows the company to expand in the market share by
targeting the middle classes as they have higher pricing factors. This growth strategy

3ASSESSMENT 3
helps to cater customer’s segment (Fleig, Augenstein and Maedche 2018). The company
lowers its prices by lowering the cost of production as well as raising efficiency in supply
chain. Differentiation strategy is used to differentiate its business by making innovation
as well as addressing the health concerns of the customers. The SAP ERP Decision is
extended to its product lines after going through customer’s interests to differentiate
among its competitors. Combination of both of those growth strategies help to build a
stronger as well as loyal customer base. Brand logo of The Diet Center is used to
differentiate its products as well as market position (Holsapple, Sena and Wagner 2019).
DC paramedical business is offered health as well as diet nutrition by spreading an
awareness over health, low calorie food for management of weight and selling of low fat.
They are providing with various diet menus with calorie counts plus growing
requirements. It established a stronger brand image into minds of customers. There is
emergence of fad diets into the social media so that the customers can get to know about
health requirements.
Through development of ERP decisions in the business organization, the company
makes a competitive position in the market by raising its sales growth. The services as
well as provides provided by The Diet Center are weight loss management services, diet
products, equipment and devices and others.
The vision of The Diet Center SAP ERP Decision is: “Healthy people and food secure
communities”.
The mission of The Diet Center SAP ERP Decision is: “food education among the
communities promote positive nutritional practices, access to safe as well as nutritious
food and fostering secured communities for the middle income families”.

4ASSESSMENT 3
3. Assess the need and role of an appropriate ERP system in the
operations of the firm
Through development of ERP, it can integrate operations of The Diet Center as well
as deliver a real time financial as well as operational data. ERP should reduce training
needs for the end users, as they are required to learn about one system in case of
interacting with other applications. There is monitoring of inventory levels on regular
basis as well as controlling working capital on exact levels (Leu and Lee 2017). With
reduction of training costs, ERP implementation in DC reduces time as well as work
efforts needed for carrying regular activities. ERP is reduced as well as eliminated manual
processes of the company.
Through development of SAP ERP decision, there is providing of higher rate of
customer services. The client of company is receiving higher benefits of ERP system. The
information of client is being central as well as efficient. The sales team is focused to
maintain a stronger customer base in case of spreadsheets. The business is providing sales
growth by providing food as well as nutritional services to the target customers. The
company is focused more on acquisition of customers as well as retention (Holsapple,
Sena and Wagner 2019). Throughout end-to-end tracking, the ERP is provided better
interaction with the customers.
Data security is the main advantage of ERP system implementation in DC. There is
sharing of data across the functional silos like customer services, food and nutrition, sales,
development of business and marketing which would enhance business collaboration.
Therefore, ERP maintained a higher data security levels. The business process is
delivering and improving operational functions of the company (Srivastava and Misra
2017). The operational processes are being automated, reduction of errors as well as

5ASSESSMENT 3
costs. The cloud based ERP system is mire secured as it takes centralized backup of
sensitive data. As data of company is being managed throughout the cloud, therefore it
makes sure that servers are being protected. Therefore, it becomes difficult to hack the
sensitive and confidential data.
Leu and Lee (2017) discussed that there is higher role of the ERP system in supply
chain management. There is improvement over shorten of lead times, on time delivery as
well as enhance the operation of the company. By means of development of ERP system,
the supply chain becomes better as well as responsive to improve over forecasting and
inventory management. It helps to reduce costs as well as develops new products to give a
competitive advantage to the company. In addition to all this, ERP system is making
improving over DC’s profitability as well as reducing entire inventory along with
production. SAP ERP system helps in better decision making. It can promote
collaboration throughout shared data. It can eliminate time wasted, improve over data
quality and making a better decisions (Holsapple, Sena and Wagner 2019). The proposed
system provided real time business operations in addition to enterprise wide integration.
There is efficient dispatch as well as distribution related to business functions.
4. Evaluate the costs and benefits of implementing an ERP system
The food cost is accounted for 20-28% of sales revenue. ERP system implementation
coordinates financial of the company’s departments. The company is using four various
software programs.
i. Diet Clinic system: This software is used for tracking clients of DC from the
financial accounts to programs. It is used for recording preferences of client as
well as kept recorded data (El Hajj 2018).

6ASSESSMENT 3
ii. Omega system: It is a Point of Sale system integrated in stores of DC. The
system is issued with invoices as well as controlled accounts of DC from
accounting statements. There is controlling over inventory, delivery records of
sold items, as well as company’s profits.
iii. Human resource system: This software is used for tracking data of employees
included daily time attendance, employments days, and other HR related
information. It also calculates salary of employee and government based
payments.
iv. Financial as well as accounting system: The proposed system of DC combined
all data from proposed earlier three systems (El Hajj 2018). It is generated
balance sheet, income statement, sales tax declaration as well as other
financial records.
ERP system provides benefits to the organization which is analyzed by combination
of those four systems. There is reduction of purchasing cost while ERP provided the
suppliers with valid schedules as well as better business operations. Development of SAP
ERP would cost the company with lower cost as compared to yearly waste of labour,
nutrition as well as material costs. The return of investment is higher and payback period
is resulted from cost savings as well as waste elimination expected in six years (Fleig,
Augenstein and Maedche 2018). In other words, implementation of ERP would result in
cost as well as benefits to the company with operational success.
5. Assess the effect of an ERP system on the various activities within the
firm
Implementation of ERP system is resulted in cost accounting, financial as well as
managerial reporting of the business organization. There is proper providing of cost

7ASSESSMENT 3
structure by cost allocation to the project. The cost centres is being optimized on the cost
structure. The main scope of SAP ERP system is focused on payroll as well as
management of stock (Srivastava and Misra 2017). Quality control is enhanced so that the
system can link with various activities of the firm. Due to cash drain as well as
inefficiencies in the company, the business operations of DC is facing issues, therefore
ERP system would validate besides arrange the internal business operations. The SAP
ERP software is provided opportunities to make internal business control (Fleig,
Augenstein and Maedche 2018). The system is facilitated business lines in integration of
data, monitored budget as well as conducted variance analysis.
ERP solutions can reduce the business processes as well as reduce requirement to
enter information. It can improve over user’s productivity but can reduce inaccuracy of
data. The implementation of ERP system enhances regular business activities and raises
efficiency of company to collect functional as well as operational data (Holsapple, Sena
and Wagner 2019). ERP is required to create proper forecasting related to decrease in
business cost and productivity units. The main function of ERP solution is to update
information on real time basis where the business can make realistic estimation along
with effective forecasting. Team collaboration helps to perform the financial and
operational work in efficient ways to get a competitive advantage.
6. Discuss the future of the firm by analysing the potential impact of the
SAP ERP system on the operation and financial results
Due to adoption of SAP ERP system, the production functions will get productivity
changes. In the future of the firm, the ERP system would facilitate financial as well as
managerial reporting by integration of operational functions (Ramos et al. 2019). SAP
ERP would allow the management to review entire business activities as well as
operations from live database.

8ASSESSMENT 3
In case of financial results, the ERP system facilitated payment functions. It would
result in proper costing, financial as well as managerial reporting and also allocating
project costs. There would 20% increase in sales and profits of the company with an
increase in market share (Srivastava and Misra 2017). As the system can save time as
well as effort of people, therefore it is considered as cost effective system. It should
therefore eliminate usage of the manual system and there is elimination of repetitive
business processes. The ERP software should streamline business processes of DC to
make it easier to access as well as collect data regardless of other departments. There
should be security over the financial data so that no one can hack those data and shared
with others.
7. Conclusion
It is concluded that adoption of ERP system in DC will help the company to overcome
with the financial, operational as well as managerial issues. SAP ERP solutions would help
the business to control over the business operations to achieve a better bottom line. The
software helps to modify over reporting by customization of its existing modules. There is
addition to three modules which would help the company to achieve a competitive advantage
such as Diet clinic system, POS system, financial system as well as HR system. The financial
as well as operational reporting are improved with enhancement of abilities of company’s
reporting. In this way, the company can respond to complicated request of confidential as
well as sensitive data. The proposed system can cater with the business requirements to make
changes in its growing business. ERP helps to control business cost and saves time plus
efforts.

9ASSESSMENT 3
References
El Hajj, S. 2018. THE DIET CENTER: THE SAP ERP DECISION Sana. Ivey Business
School Foundation.
Holsapple, C., Sena, M. and Wagner, W., 2019. The perceived success of ERP systems for
decision support. Information Technology and Management, 20(1), pp.1-7.
Ramos, H.A.D.C., Martos, D.A.M., Ramos, P.A.D.C., Facundo, W.Y.C. and Hernández,
S.R.B.D.C., 2019. A Technology Tool for the Analysis of the Logistical Process in Small
Pharmacies. Journal of Information Technology Research (JITR), 12(4), pp.50-66.
Srivastava, S. and Misra, R., 2017. Archiving ERP data to enhance operational effectiveness:
the case of Dolphin. International Journal of Information Technology and
Management, 16(2), pp.162-172.
Leu, J.D. and Lee, L.J.H., 2017. Enterprise resource planning (ERP) implementation using
the value engineering methodology and Six Sigma tools. Enterprise Information
Systems, 11(8), pp.1243-1261.
Fleig, C., Augenstein, D. and Maedche, A., 2018, June. KeyPro-A Decision Support System
for Discovering Important Business Processes in Information Systems. In International
Conference on Advanced Information Systems Engineering (pp. 90-104). Springer, Cham.