Report on IT Management Issues and Strategies for Monet Resorts

This report provides an analysis of IT management issues related to mergers and acquisitions for Monet Resorts. It explores the concept of mergers, emphasizing the role of information technology in enhancing customer connections and meeting evolving expectations through ERP systems and intelligent electronic portals. The report highlights the advantages of mergers, such as gaining competitive advantages and reducing operational costs, while also acknowledging potential disadvantages like employee competition. It further examines the benefits of ERP implementation, including improved efficiency, forecasting capabilities, and enhanced customer service. The report also discusses the impacts of web 4.0 portals and the significance of customer loyalty schemes, offering recommendations for acquiring and retaining customers through targeted rewards and communication strategies. The conclusion reinforces the importance of implementing the proposed strategies to ensure the success of Monet Resorts in the competitive market.

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IT Management Issues
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Executive Summary
This report is outlines the concepts of merger and acquisition that Monet management has
decided to venture into. Merger involves mutual agreement between two or more businesses to
combine and become single business. However, success of a merger depends on the efforts and
strategies of the merging businesses. Information technology has led to development of new
communication channels thus facilitating customer connection. In this generation nearly
everybody is connected via the internet and people can easily connect and chat and share
experiences. This has led to expectations of customers changing like they expect quicker, better
and quality services. Clients now know that they possess power to choose what they want, where
and when to have or go. Therefore, Monet implementing ERP systems and intelligent electronic
portal is a way to satisfy these customer demand. Advantages goes on and include gaining
competitive advantage, market dominance, reduced operational costs among others. However,
such a decision to merge come up with some disadvantages including employee competition and
rivalry. Implementing ERP will make management of the different departments including
accounts, tour guides, bookings among others. Therefore, Monet should implement the decision
because with it comes along a package of several advantages.

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Concept of Mergers and Acquisition...............................................................................................4
Information Technology and Information System Issues................................................................5
Acquiring New Customers..............................................................................................................7
Conclusion.......................................................................................................................................9
Recommendation.............................................................................................................................9
References......................................................................................................................................10

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Introduction
The current business environment is that of globalization and developing economy, and thus
many businesses are trying to attain the maximum market attainable in both levels of market, that
is, global and local markets. Everyday business people struggle to attain their ideal objective. For
this reason, businesses have been working extra hard to tout-do their competitors in several
different ways one of the commonly known way is merger and acquisition (M&A). The main
objective of expanding and growing a business is to gain financial stability and profit
maximization for stakeholders. (Gleich, Kierans, & Hasselbach 2010).
The assumptions made include the following: Monet has already merged, it has implemented the
ERP and the intelligent portal. Also the loyalty scheme is being practiced.
Mergers and acquisitions (M&A) offers firms and companies possibility of a wider and bigger
share in the market and diversification. Monet (group of 5 holiday resorts) are utilizing this
technique for the purpose of growing the 5 resorts. The objective of the management’s decision
was expanding their market, increasing the number of clients so as to get more, achieving
financial stability and become more competitive. With the current conditions of economy M&A
have achieved quality across the global market. Also technological advancement, competition
and globalization has facilitated growth of M&A. (Dringoli, 2016).
Concept of Mergers and Acquisition
Merger involves mutual agreement between two or more businesses to combine and become
single business. The idea of M&A has brought about increased profits and reduced operational
costs through operational and structural benefits brought by merger. The benefits that come
around by merging are vast and include the following: the business is able gain power, control
and dominance in the market environment, efficiency value is increased like cost savings and
enrichments, resource sharing bring about economies of scale offering competitive advantage
due to reduced costs, the risk of utilizing innovative methods of financial risk management is
greatly reduced and the best benefit is tax advantage. (Sherman, 2011).
However, success of a merger depends on the efforts and strategies of the merging businesses. If
this is not done well by the Monet management, it will lead to some disadvantages including:
experienced workers will be lost, small merging business workers need exhausting training, the

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merger may experience difficulties due to competition among the employees of the combined
resorts, there is over capacity of business that may require retrenchment and duplication.
(Hassan, & Ghauri, 2014).
Information Technology and Information System Issues
Information technology has led to development of new communication channels thus facilitating
customer connection. In this generation nearly everybody is connected via the internet and
people can easily connect and chat and share experiences. This has led to expectations of
customers changing like they expect quicker, better and quality services. Clients now know that
they possess power to choose what they want, where and when to have or go. Therefore, Monet
implementing ERP systems and intelligent electronic portal is a way to satisfy these customer
demand. (Chew & Gottschalk, 2009).
An information system (IS) is integrated components for gathering, processing, displaying
storing information in form of knowledge. Monet utilizes such systems to run and control their
day-to-day processes and interact with customers to attain market power. Also the company can
use information systems such as ERP and web 4.0 portals to monitor and control operations and
extend services to customers. (Cohen, 2012).
ERP Benefits to the Monet and its Customers
According to Worster, Weirich & Andera (2012), ERP implementation brings several benefits to
the company including:
Competition- ERP software needs a big investment. But a greater cost lies in not making the
investment. Businesses cannot risk failing to implement ERP while their competitors gain the
benefits of employing the system. Seeking technology solutions will ease ways of lead
generation.
Efficiency- An ERP solution get rid of duplicate processes and reduces greatly the urge to
manually key in information. The system will also smoothen, and simplify business processes
and improve efficiency for organizations to collect information, regardless of what department
they are operating in.

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Forecasting- correct forecasts are created through implementation of Enterprise resource
planning software because it offers users and managers the tool they require. Business are able to
make estimates that are more realistic and more effective prediction
Collaboration- department collaboration is important and a necessity in a business structure.
Departments are able to operate together if the data keyed into ERP systems is consistent and
centralized. The software also deals with most aspect of a business, thus automatically
motivating collaborative, interdepartmental energy.
Scalability- designed ERP systems permits the addition of new clients and operates to improve
the solution implemented initially with time. When the business is ready to move to the next step
or requires more resources, ERP software should have the ability to facilitate that growth.
Reporting- ERP software ease reporting and makes it more customizable. With enhanced
capabilities of reporting, the organization can respond easily to complex information requests.
Consumers can also execute their reports without depending on the assistance from IT, thus
saving time of the users.
Some of the customer benefits associated with the implementation of ERP include;
service delivery is fast- when inventory information is correct and is accessible easily, orders are
sold faster. An ERP system enables updates of real-time to maintain correct inventory
information. In circumstances where customers are used to booking resorts, or tours at the click
of a button, faster booking order fulfillment is vital. (Kimbrell, Ellis & East Carolina University,
2013).
Accurate services- correct fulfilling services needs cross-functional collaboration between
reservation, billing, tour guide among others. ERP data is distributed among several departments
thus bettering insights, and keeping everyone aware about service status. When services are met
correctly and on time, client satisfaction is enhanced and expenses that come with errors are
reduced. (Chetty, 2016).
Improved Customer Service- When client service representative have permission to access
detailed customer data all in one portal, customer requirements can be met faster. An ERP
system can be structured in a way that the user is able to view the most relevant data on his or

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her custom-built dashboards for example client related information versus daily information of
the entire system. Thus simplifying the access of required information. (Information Resources
Management Association, 2011)
Lower Costs- ERP software minimizes operation and administrative costs by reducing errors,
repetitive duties, and excess inventory. Monitoring operations also aids in prevention of
downtime and disruptions, and enhance betterment of employee management and program. Best
clients are prioritized and rewarded with free tours among other offers.
When organization processes are made better, both the company and clients reap the benefits.
Impacts of Web 4.0 –Level Ultra-Intelligent Electronic Portal
Creation of such a portal will enhance interaction of Monet customers with their website. When
customers visit this site, s/he will be recognized if one stands in front of the recognition devices
like scanners and cameras the system will identify the customer and say word like: “Welcome to
Monet, services at its best. How may I help you today “Customer Name””? such a system makes
a customer feel recognized and have a feeling of belonging. Many people want a system that
interacts with them with less typing and this system will be unique to Monet business. (Ozkan,
2010).
However, implementing such a system to a newly merged enterprise is a big risk to a business.
This technology is sophisticated and may be complex to customers when interacting with it.
Clients tend to prefer easy to use portals and therefore since web 4.0 will be a new technology, it
may not be well received by customers. (Murugesan, 2010).
There are a lot of opportunities that can come up with merging the 5 resorts into one. The
company may decide to diversify its services not only to be the normal resort services but they
can venture into opportunities like transportation-airport pick up and drop for non-clients,
entertainment- rather than the television sets installed in the resort rooms, the company may
decide to venture in to cinema business where clients can be going there to watch movies. Such
opportunities will expand the business territory and enhanced market power. (Nelson, Joos &
Wolf, 2013).
Acquiring New Customers
Achieving loyalty requires giving back something to your clients through rewards like free
meals, airport transfers, and free tours. Hotel businesses should acknowledge that loyal clients

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are more profitable but can also shift to other competitive resorts. The loyal customers of an
organization should sometimes be offered goods or services at a lower price. This will increase
their loyalty thus increasing the profit of the business. It is essential to give reason to your clients
on why they should stay and utilize your services. (Zeidler, 2009).
The easiest and most efficient way of attaining this is by creating a client loyalty program.
Investing energy and time in improving client loyalty should be a part of any business' marketing
techniques. If you fail to invest in client loyalty, the likelihood of losing more client than
attracting them is higher. (Bainbridge, 2017).
An effective client loyalty scheme should utilize customer information and control each client’s
interactions with your business. This should include what they buy, why, and when. This
knowledge permits you to provide useful and targeted rewards, like vouchers and rewards on
what they buy. Offers like this are useful to the as they will make the customer come back
frequently. This will lead to more sales for the business as the client redeems their rewards and
use more money with your business. (Humby, Hunt & Phillips, 2008).
Targeted and tailored offers may also have a higher perceived worth than generic unique
rewards. Bespoke rewards make the client feel valued and improves the relationship with you.
This is an evidence to the customers that you understand their requirements, and thus helps in
attaining customer. In addition, it gives the feeling that you are investing time to focus on them
which helps enhance a positive emotional reaction. (Zeidler, 2009).
This positive reaction can be employed and nurtured with the use of communications carefully.
Frequent communication through the email or newsletter, will assist in relationship building and
make your clients feel valued, while making sure they are updated on major pertinent rewards.
Frequent clients’ engagement is also a method of achieving client loyalty. (Humby, Hunt &
Phillips, 2008).
Benefits of Implementing Customer Loyalty Scheme
The following are some of the advantages of having a customer loyalty scheme:
Costs is reduced – The evidence is in the numbers: generating new businesses from an existing
client is five times cheaper compared to acquiring new clients. As such building customer loyalty
scheme will reduce the cost of having a new customer. (Agnihotri, Rapp & Business Expert
Press, 2010).

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Recommendations – the most efficient brand ambassadors are your satisfied customers. They are
likely to recommend fresh business, which can ease sales and provide cheaper ways of lead
generation. A survey conducted on customer loyalty revealed that approximately 20 percent of
new sales achieved come from the existing clients.
Repeat business – Loyal clients invest more in your business. This is because they will
repeatedly buy your services or goods over a long period of time. In accordance to the sales and
business cycles, one loyal customer can bring more profit annually than maybe ten first-time
clients.
Bigger sales – building relationships with loyal clients, leads to easiness on sales of higher
volume of goods and. Thus, achieving client loyalty should yield larger profits and more sales.
Clients that trust your business also listen and heed to your recommendations. This offers a
chance to sell along your product lines.
Staying ahead – loyal customers place you ahead of your competitors. Organization that have
built strong brand loyalty are immune to forces of competition which is vital in markets with
regular new players.
Conclusion
It is said that a single size can never match it all. Many companies believe that the quickest
method to widen business territories is exercising mergers and acquisition. Mergers results in
economies of scale and collaboration resulting to reduced cost and increased operations.
Stakeholders will agree to the idea of merging if they believe they believe it will lead to them
having competitive advantage over their rivals. Advantages goes on and include gaining
competitive advantage, market dominance, reduced operational costs among others. However,
such a decision to merge come up with some disadvantages including employee competition and
rivalry. Implementing ERP will make management of the different departments including
accounts, tour guides, bookings among others.
Recommendation
Monet management, therefore, should go ahead to implement the decision because with it comes
along a package of several advantages mentioned. Also for Monet to maintain market power then
it should be gathering information on both their loyal and new customers on their preferences

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every season so as not to give them an option. It is also necessary for them to always follow up
on clients about the services they received and what they would like get improved.
References
Agnihotri, R. S., Rapp, A. A., & Business Expert Press. (2010). Effective sales force automation
and customer relationship management: A focus on selection and implementation. New
York, N.Y.] (222 East 46th Street, New York, NY 10017: Business Expert Press.
Bainbridge, S. (2017). Mergers and acquisitions: A transactional perspective. Foundation Press.
Chetty, N. G. (2016). The operational benefits of ERP adoption by third-party logistics
organisations in South Africa.
Chew, E. K., & Gottschalk, P. (2009). Information technology strategy and management: Best
practices. Hershey: Information Science Reference.
Cohen, E. B. (2012). Issues in informing science and information technology. Santa Rosa
(California: Informing Science Press.
Dringoli, A. (2016). Merger and Acquisition Strategies.
Gleich, R., Kierans, G., & Hasselbach, T. (2010). Value in due diligence: New risks, new
mitigation. Farnham: Gower.
Hassan, I., & Ghauri, P. N. (2014). Evaluating companies for mergers and acquisitions.
Humby, C., Hunt, T., & Phillips, T. (2008). Scoring Points: How Tesco Continues to Win
Customer Loyalty. London: Kogan Page.
Information Resources Management Association. (2011). Enterprise information systems:
Concepts, methodologies, tools and applications. Hershey: Business Science Reference.
Karenfort, S. (2011). Synergy in mergers & acquisitions: The role of business relatedness.
Kimbrell, J., Ellis, M. L., & East Carolina University. (2013). The impacts of Web 2.0, Web 3.0,
and Web 4.0 technologies used in distance education. Greenville, N.C.: East Carolina
University.

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Murugesan, S. (2010). Handbook of research on Web 2.0, 3.0, and X.0: Technologies, business,
and social applications. Hershey, PA: Information Science Reference.
Nelson, R., Joos, I. M., & Wolf, D. M. (2013). Social media for nurses: Educating practitioners
and patients in a networked world.
Ozkan, C. B. (2010). Free and open source software for e-learning: Issues, successes, and
challenges. Hershey PA: Information Science Reference.
Sherman, A. J. (2011). Mergers & acquisitions from A to Z. New York: American Management
Association.
Worster, A. J., Weirich, T. R., & Andera, F. J. C. (2012). Maximizing Return on Investment
Using ERP Applications. Somerset: Wiley.
Zeidler, C. (2009). Mobile support in customer loyalty management: An architectural
framework. Wiesbaden: Gabler Edition Wissenschaft.