Management Information System MIS 201 Semester 1 2018-2019

Management Information System Mis 201semester 1 2018 2019assignment

Prepare an in-depth analysis of four case studies during the semester. Here are some guidelines: · This is an individual assessment, which is a part from your course score. It requires effort and critical thinking · This assignment will worth 25 mark (Case Study Questions 15 Marks/ Presentation 5 Marks · Answer all the questions listed below for each case. · The ‘answers’ to the questions are best formulated by reviewing the case and the reading materials up and including the current week in the course. · The questions are worded to help you apply the readings to the case, so don’t limit yourself to the case’s terminology and perspective. The best analysis will abstract the case content by applying the reading materials to draw broader lessons about the material As for the Presentation you should summarize your analysis of only one case study in a set of PowerPoint slides Case Study 4: Zappos 1) Define SCM and how it can benefit Zappos. (1 Mark) 2) Explain CRM and why Zappos would benefit from the implementation of a CRM system. (1 Mark) 3) Demonstrate why Zappos would need to implement SCM, CRM, and ERP for a connected corporation. (1 Mark) 4) Analyze the merger between Zappos and Amazon and assess potential issues for Zappos customers. (1 Mark) 5) Propose a plan for how Zappos can use Amazon’s supply chain to increase sales and customer satisfaction. (1 Mark) Case Study 4: Zappos Tony Hsieh’s first entrepreneurial effort began at the age of 12 when he started his own custom button business. Realizing the importance of advertising, Hsieh began marketing his business to other kids through directories, and soon his profits soared to a few hundred dollars a month. Throughout his adolescence, Hsieh started several businesses, and by the time he was in college he was making money selling pizzas out of his Harvard dorm room. Another entrepreneurial student, Alfred Lin, bought pizzas from Hsieh and resold them by the slice, making a nice profit. Hsieh and Lin quickly became friends. After Harvard, Hsieh founded Link Exchange in 1996, a company that helped small businesses exchange banner ads. A mere two years later, Hsieh sold Link Exchange to Microsoft for $265 million. Using the profits from the sale, Hsieh and Lin formed a venture capital company that invested in start-up businesses. One investment that caught their attention was Zappos, an online retailer of shoes. Both entrepreneurs viewed the $40 billion shoe market as an opportunity they could not miss, and in 2000 Hsieh took over as Zappos’ CEO with Lin as his chief financial officer. Today, Zappos is leading its market and offering an enormous selection of more than 90,000 styles of handbags, clothing, and accessories for more than 500 brands. One reason for Zappos’ incredible success was Hsieh’s decision to use the advertising and marketing budget for customer service, a tactic that would not have worked before the Internet. Zappos’ passionate customer service strategy encourages customers to order as many sizes and styles of products as they want, ships them for free, and offers free return shipping. Zappos encourages customer communication, and its call center receives more than 5,000 calls a day with the longest call to date lasting more than four hours. Zappos’ extensive inventory is stored in a warehouse in Kentucky right next to a UPS shipping center. Only available stock is listed on the website, and orders as late as 11 p.m. are still guaranteed next-day delivery. To facilitate supplier and partner relationships, Zappos built an extranet that provides its vendors with all kinds of product information, such as items sold, times sold, price, customer, and so on. Armed with these kinds of details, suppliers can quickly change manufacturing schedules to meet demand. Zappos Culture Along with valuing its partners and suppliers, Zappos also places a great deal of value on its employee relationships. Zappos employees have fun, and walking through the offices you will see all kinds of things not normally seen in business environments—bottle-cap pyramids, cotton-candy machines, and bouncing balls. Building loyal employee relationships is a critical success factor at Zappos, and to facilitate this relationship the corporate headquarters are located in the same building as the call center (where most employees work) in Las Vegas. All employees receive 100 percent company-paid health insurance along with a daily free lunch. Of course, the Zappos culture does not work for everyone, and the company pays to find the right employees through “The Offer,” which extends to new employees the option of quitting and receiving payment for time worked plus an additional $1,000 bonus. Why the $1,000 bonus for quitting? Zappos management believes that is a small price to pay to find those employees who do not have the sense of commitment Zappos requires. Less than 10 percent of new hires take The Offer. Zappos’ unique culture stresses the following: 1. Delivering WOW through service 2. Embracing and driving change 3. Creating fun and a little weirdness 4. Being adventurous, creative, and open-minded 5. Pursuing growth and learning 6. Building open and honest relationships with communication 7. Building a positive team and family spirit 8. Doing more with less 9. Being passionate and determined 10. Being humble Zappos’ Sale to Amazon Amazon.com purchased Zappos for $880 million. Zappos employees shared $40 million in cash and stock, and the Zappos management team remained in place. Having access to Amazon’s world-class warehouses and supply chain is sure to catapult Zappos’ revenues, though many wonder whether the Zappos culture will remain. It’ll be interesting to watch!

Paper For Above instruction

In this paper, we analyze the critical aspects of Zappos' business model and its strategic utilization of management information systems (MIS) to sustain competitive advantage. The case highlights how Zappos leverages supply chain management (SCM), customer relationship management (CRM), and enterprise resource planning (ERP) systems to optimize operations, enhance customer satisfaction, and facilitate growth through merger and acquisition activities, specifically with Amazon. This analysis underscores the importance of integrating information systems to support business strategies in a highly competitive online retail environment.

Defining SCM and its Benefits for Zappos

Supply Chain Management (SCM) encompasses the oversight and management of the entire supply chain process, from raw materials sourcing to product delivery to the end customer. For Zappos, SCM is vital because it ensures the timely and efficient movement of their extensive inventory of over 90,000 styles across numerous brands. Effective SCM allows Zappos to maintain high levels of inventory accuracy, reduce lead times, and support their promise of next-day delivery (Christopher, 2016). The ability to coordinate with suppliers swiftly and accurately directly affects customer satisfaction, as prompt delivery is a critical component of their value proposition (Mentzer et al., 2001). Implementing a robust SCM system enables Zappos to streamline logistics, improve supplier relations, and adapt quickly to shifting market demands, which is essential in the dynamic retail industry (Lee & Billington, 1992).

Understanding CRM and Its Benefits

Customer Relationship Management (CRM) refers to systems that help organizations manage customer interactions, analyze customer data, and improve customer service. Zappos’ success is largely hinged on its extraordinary customer service, which is supported by a comprehensive CRM system. This system tracks customer preferences, order history, and feedback, allowing Zappos employees to personalize interactions and resolve issues efficiently (Payne & Frow, 2005). Moreover, CRM enhances loyalty by fostering open communication channels and providing tailored experiences, which is crucial given Zappos’ policy of free returns and extensive communication with customers (Kumar et al., 2013). The CRM system also supports their innovative advertising approach, turning satisfied customers into brand ambassadors, which aligns with the company’s culture of building honest and positive relationships (Buttle, 2009).

The Need for SCM, CRM, and ERP for a Connected Corporation

The integration of SCM, CRM, and Enterprise Resource Planning (ERP) systems is fundamental for Zappos to operate as a connected and cohesive organization. An integrated information system architecture allows seamless data flow across departments, ensuring consistency and real-time information sharing (Ross, 2003). For Zappos, ERP systems integrate core business processes such as accounting, procurement, inventory management, and order processing, streamlining operations and reducing redundancies (Omachonu & Einspruch, 2010). SCM supports efficient logistics and inventory management, while CRM centers on customer satisfaction and loyalty. This integrated approach fosters agility, improves decision-making, and supports strategic initiatives such as the Amazon acquisition, which provides access to Amazon’s vast logistics infrastructure (Seddon et al., 2010). Together, these systems enable Zappos to respond swiftly to market changes and sustain a high level of customer service.

Analyzing the Zappos-Amazon Merger and Customer Impact

The strategic acquisition of Zappos by Amazon for $880 million represents a significant alignment of technological and business resources. While the merger benefits Zappos by providing access to Amazon’s world-class supply chain and logistical infrastructure, it also presents potential risks related to cultural integration (Kambil & Risse, 2004). Customers may experience concerns about changes in Zappos’s unique culture as the company aligns more closely with Amazon’s standardized processes (Kumar & Reinartz, 2016). However, the retention of Zappos’ management suggests an effort to preserve its distinctive customer-centric culture. Nonetheless, some customers may worry that the personalized service and the fun, creative environment might diminish, adversely affecting customer loyalty (Bhattacharya & Sen, 2003). The merger thus requires careful strategic management of organizational culture alongside technological integration to minimize negative impacts on customers (Kotter, 1996).

Leveraging Amazon’s Supply Chain to Increase Sales and Satisfaction

Zappos can capitalize on Amazon’s sophisticated supply chain by integrating their inventory into Amazon’s global logistics network, enhancing delivery speed and reliability (Harrison & Van der Merwe, Hogan, 2012). Utilizing Amazon’s warehousing capabilities and shipping infrastructure can reduce Zappos’s operational costs and enable order fulfillment from multiple regional centers, resulting in faster delivery times (Lummus et al., 2001). Additionally, Zappos can adopt Amazon’s data analytics tools to better forecast demand, optimize inventory, and personalize customer recommendations, thereby increasing sales opportunities (Choi, 2011). Implementing Amazon’s advanced tracking and delivery technology can improve the customer experience by providing real-time updates, ensuring order accuracy, and facilitating easy returns (Ngai et al., 2011). This synergy not only expands Zappos’ market reach but also enhances customer satisfaction, loyalty, and lifetime value.

Conclusion

In conclusion, the case of Zappos exemplifies how strategic integration of MIS, including SCM, CRM, and ERP systems, can drive operational excellence and foster a competitive advantage. The merger with Amazon presents both opportunities and challenges; leveraging Amazon’s logistics infrastructure while maintaining Zappos' unique culture is crucial for future success. By effectively utilizing Amazon’s supply chain and information systems, Zappos can enhance customer satisfaction and expand its market presence, demonstrating the vital role of MIS in the modern retail landscape.

References

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