7064910 Sem 2 Assignment

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NAME : Piyush Sharma

ROLL NUMBER : 520780168

LEARNING CENTRE : Apar India College

SUBJECT : All

Submitted By : Piyush Sharma Learning Centre : Apar India Colloge

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ASSIGNMENTS

MB0028

PRODDUCTION AND OPERATIONS MANAGEMENT


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Q: 1 Differentiate dynamic scheduling and dynamic

inventory.

How would you integrate them to enhance

productivity?

Ans:1 A common blunder which most manufacturing

companies tend to commit is in the right judgment regarding

classification of various components which make up their

products & more importantly , items, spare parts , maintenance

products & even simple items like stationery. Some of these

organizations tend to focus more on product & service

items & ignore the others. this approach would tend to push

their overheads up & reflect poorly in their balance sheets.ABC analysis involves classification of every single item of

the company long lead time high value items as A , medium

value, medium lead time items as B& low value but high

volume items as C. after this process, many organizations

tend to classify items based on total inventory values which

could lead to build up of costs. Classification should purely be

based on value & lead of single pieces or unit quantities like

per kg. or liter etc.

(1) Dynamic scheduling :

A similar dilemma occurs when planning departments try to

address pressures from marketing or finance or even

purchase departments & more often even from the very

manufacturing units which they are supposed to control.

The most common blunder committed is to plan on a first infirst out approach & later, unscientifically after under such

pressures. While many tend to take shelter behind enterprise

resource planning systems & fail to exploit the power &

potential of ERP, best business practices demand a dynamic


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approach for e.g. if a then the system should be configured

to find another process or activity to fit into the gap

created. Similarly such an approach is necessary when

breakdowns occur & capacities are blacked out. This would

ensure balanced utilization of capital resources. It is for thisreason that planners plan for 80 to 90% of capacity keeping

a cushion for such contingencies & also creating distributed

slack times which could be closed without affecting overall

targets. Such approach can be automated in modern ERP

systems.

(2) Dynamic control :

Most organization tend to treat inventory as an appendage &

Emphasise just minimization of inventory at any point of

time- worse, maximize at the start of the financial year &

minimize towards the end of every quarter with a focus on

the balance sheets. Little do they realize the loss due to

ignoring the aspects of inventory values in between & more

importantly, shortages caused in operations leading to

unfathomable losses. Dynamic control involves values at

every key transactional turn to optimize rather than

maximize or minimize.

System productivity:

With rapid technological advancement & futuristic

manufacturing equipment & process, networked systemstend to slow down & tend to drag down the efficiency of

manufacturing along with. This has necessitated

organization to revisit their systems & procedures as to how


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effective & efficient they prove to be. We look at certain

key aspects of system productivity.

Organizations today have to grapple with complex issues of

excess supply & ultimately profitability. This is perhaps onearea of management where we can not expect a plus &

minus to balance out since excess & shortage are both

negative contributors to value. A detailed approach to this

subject would be dealt in one of the later chapters. To

reduce in process inventories improved material control is

needed. Material control includes not only traditional

inventory control, but also the location of material in

process storage and its orientation. For the automatic factoryto become a reality all three dimensions of material control

must be addressed. As was noted previously, in batch

manufacturing 95 percent of the manufacturing cycle a part

spends as in-process inventory. As such it must be stored.

Apple and Strahan note parts that comprise these

inventories are typically stored in a manner that makes poor

use of building space, provides limited accessibility to

individual part numbers, and represents a low level of

location control. Proper planning of the location control.

Proper planning of the storage and control is the key to an

effective manufacturing system.

In-process inventories can be reduced by doing a better job

of the system. Integration and control are the keys. In many

instances, increased integration and control will occur by

placing greater reliance on computing systems.


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dimension of the business, keep a tight reign on cash and be

pro active in terms of the current and future financial needs

of the project.

5) Production & operation management skills :-

If you have a product that requires to be made, or a service

delivered, then the skills to develop an efficient, appropriate

and effective production system is required. Even if you

decide to you use a production partner, you need theknowledge to ensure that the system and process being

developed are appropriate for your needs.

Management skills are one thing capacity another. You may

find all the above skills within one or two individuals but

you need to ensure they have the time to apply those skills

and effectively address the requirements of the project.

They may have sufficient capacity to do this at pre market

stage, but may not be able to deal with sheer number of

issues that arise at market stage. You need to factor this in

your plan and increase capacity as the project requires

ensuring effectiveness. You must be realistic about what

each individual can physically do. If the one team member

has great skills in sales and in marketing, but only has the

time to deal with sales, then you need someone else ordeal

with marketing. You may well support them by using a

marketing agency which has experience of managing theentire marketing function which can direct.


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Q.3: what are the key drivers for process improvement?

Ans.3:Rough estimate & thumb methods have always

tended to be poor reflections of the decision making ability

in management. It is becoming increasingly difficult to sellideas without quantification or back up calculations.

Quantitative decision making process are being given

greater emphasis by modern global enterprises.

The reactive, real- time management of mobile workforce is

a challenge to any organization of today. Most

managements today would consider work force

management as far more difficult in comparison with otherfunctional areas.

Important factor for process improvement are given

below

1 Flexibility & responsiveness:

resource pooling

it professionalism

common process

2 Demonstrate competitiveness:

certification

tickit-iso9000-3

cmm

spice

benchmarking

gartner


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3 process improvement: research has shown that major

factor that positively influences all the key drivers is

the ability to:

Observe Improve

4 Process standards and metrics:

Cell established to documenting organization

process.

Individual process improvement projects set up and

managed like any other Project Process improvements defined by practitioners

Existing best practice to be incorporated in the new

standards.

Cell to prove that it added value to the

organization.

A)

Problems encountered:process documentation not standard

large, poorly index documents

no ownership

comments on structure not content

B)what was done: object- oriented documents were

introduce with POSITIVE RESULTS

user friendly document

easy to follow

generated interest in the technique


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review of direction was incorporated

C) further steps introduced towards improvingworkforce performance:

further process documents written

concentrated on process

training opened up and in-house course established

second rethink- how to be more effective

measurement

review of course

repackage

investigation online

integration with human computer interface principlesThere

are above factors are responsible for success of process

improvements.


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Q.4: Distinguish personnel productivity from labour Productivity.

Ans.4: Production management was & even now, very

much misunderstood as restricted to technically competent

supervisory management of various production processstarting with production engineering, followed by industrial

engineering & ending with fire fighting. Modern

engineering industries have realized that while effort

towards these archaic practices have shrunk to a great extent

due to technological advancement in some organizations to

less than 10% several new problems have surfaced resulting

in serious doubts as to the probability of sustenance of such

a highly limited approach towards achieving businessgoals.in the late eighties & early nineties, the production

departments turned into hot beds of controversies &

misconceptions mainly driven by world wide recessionary

trends. This periods in the history of the modern global

enterprise, driven more by the spare time that production

engineering was rechristened.

1. labour productivity :

This is perhaps the most difficult aspects it addresses

involvement of labour force, which is aware & wary of the

benefits accrued by managements through their efforts.

Organizations have learnt to avoid confrontation & focus on

how easy they can make the workstations & environment to

reduce the strain & stress levels of operators & gain both in

worker confidence as well as capital productivity as anadded advantage. While such a vast subject has relevance in

this book, it would suffice to understand the following

prime aspects.


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1) Balancing of operation in assembly line:

This ensure uniformity in load on workers to a great extent

& also balances work in process inventory.

2) Reallocation of workers in tune with balancing

aspects :Job rotation is considered a universal cure for monetary &

therefore this is used to rotate workers synchronous with

balancing of production operations.

3) Evaluation of production operation operations and

introduction of productivity norms :

This is to ensure transparency in expectation from workers

in terms of production outputs to avoid disputes & conflicts.

Every operation is scientifically evaluated & standards are

set for time values & volumes expected from workers at a

100% level. This also helps in evaluation of compensation

to workers as incentives for performance in excess of such

expectations.

4) Standards for individual accountability and targets :This would serve as additional clear information to help

workers & supervisors maintain self driven targets &

responsibilities.

2. Personnel productivity:

While directs workers connected with manufacture of

products are pampered with incentives, indirect staff tend to

get frustrated & it becomes a challenge for managements to

maintain motivation levels of these employees while cash


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incentives for performance are common, more often than

not, such rewards are misplaced with some undeserving

employees gaining more than the meek quiet hard workers,

resulting in shift in frustration but not elimination.

Managements now turn to other techniques to help reversethese trends & look at non monetary approaches towards

motivation of these large positive contributing employees

also to help reduce attrition.

Motivation through a scientific system to help change

mindset.

Targets accountability of individuals through

quantified. System driven follow up to help enhance

effectiveness.

Team work and continuous improvement through

CFTs & quality circles.

Motivation through training in self driven targets.


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Q.5: Explain the stages in strategy formulation and

implementation.

Ans.5: The crux of the strategic management process could

be outlined as follows:

Strategy refers to the course of action desired to

achieve the objectives.

Formulation & implementation form an integral partof management.

Strategies cover purpose such as competition sales,

production, motivation & so on.

Implementation is a crucial task as formulation

It is necessary to be very tactful the members in the

formulation of strategy to

Facilitate implementation.

1. Stages in strategy formulation & implementation :

Identification of mission & objectives

Environment scanning

Generic strategy alternatives

Strategy variation

Strategic choice

Allocation of resources & formulation oforganizational structure

Formulation of plans, policies, programmes &

administration

Evaluation & control


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When companies find themselves at a dead end as to

many options to grow, particularly when the market

opportunities are enormous, they have to look beyond their

enterprises. Product and service alliance: companies may

got together to synergies operations seeking alliance fortheir products and services promotional alliance: companies

come together to promote their products & service-to carry

out a promotion campaign during a given period for the

products and services of another company. Expansion

strategy can be adopted in highly competitive & volatile

industries if they are in the introduction stage of product

service life cycle . stability strategy is a better choice when

the firm is doing well, & the product service has reached thestability or maturity staged of the life cycle. Retrenchment

strategy is the obvious choice when the firm is not doing

well in terms of sales & revenue.

Conventional management has been and still is the bane of

the global enterprise of today. Even companies with

presence in several major countries & globally accepted

products & service lag behind to various extent in

management skills. Ironically, firms with outstanding

technical skills are those that ignore the needs for best

practices. Over the years, experts have advocated several

theories of management, most notably management by

objectives or MBO, which sustained for several years until a

wave if new technologies in products, manufacturing &

more importantly in information technology, resulting in

widening of the gap.When a comprehensive approach to OPERATION

MANAGEMENT took over with a totally localized,

customized & integrated approach where no packaged rules


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are written, where a self styled self structured customized

set up principle tok over the gap got a lot closer.

Overall cost leadership strategy when products or service

are offered at the lowest price among competitors, thus

maintaining the largest market share. Companies have tofocus cost effective strategies in engineering, purchases,

manufacturing & physical distribution. Mergers & take

reflect the common route for companies their resources &

costs. HLL emerged stronger with the acquisition of brook

bond.

Differentiation company should demonstrate superiority ofproducts & services.

Focus a company may concentrate on a market segment &

obtain full information. It may pursue either cost leadership

or differentiation strategy within that segment.such

companies which pursue the same strategy to the same

target market are called a strategic group of companies. If

the relentlessly pursue it leads to benchmarking of

strategies. Danger of copying can be avoided by performing

activities innovatively quickly, which competitors cannot

catch up with.


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Q.6 : Explain the importance of project management

information system.

Ans 6: Any activity starts with a description of a missionand ends with the completion of a delivered or product. This

is how most organizations understand a project. Project

management is therefore defined as the technique or

practice of controlling the use of resources, such as cost,

time, manpower, materials, etc. bringing the above

definitions together project management can be defined as

the practice of controlling the cost, time, manpower, and

resources involved in the development activities that startwith a problem statement and end with delivery of a

complete software product. Need for project management is

emphasized by the fact that many products fail due to poor

management & consequences of failure in the project

management are far more serious. Project management

knowledge and practice in terms of their component

processes.

Creating order in chaotic system require information,

which is an organizations primary source of nourishment.

To make good allocation decisions, the project managers

team needs to know resources capabilities and availabilities.

They need a database of time commitments. A project

management information system also holds schedule, scope

changes, risk assessment and actual results. Usualinformation system are not designed for projects. Normal


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information system tell managers if they are on budget. This

is after the fact. It is not good for real what if analysis. The

first question is who is to be served. Upper managers need

to know information on all projects regarding progress,

problems, resource usage, costs and projects goals. This isinformation helps them judge the portfolio of projects. They

should review the projects at each milestone and produce a

go decision. Project manager and department managers

need to see each project schedule, priority and use of

resources to determine the most efficient use across the

organization. Project team members need to see schedule,

task lists, and specification so that they know what needs to

be done next.

THE FOUR MAJOR SECTIONS OF A PROJECT

MANAGEMENT INFORMATION SCHEDLE

SHOULD:-

1. Answer question of the major stakeholders-the right

information at the right time.

2. Facilitate communication among team members, between

team members and other stakeholders among all project

managers and between project managers and upper

managers.

3. Help what if type analyses about project staffing proposed

staffing changes, and total allocation of resources.4. Help organizational learning by helping the members of

the organization learn about project management.


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MB0030

MARKETING MANAGEMENT

Q.1: Explain the different marketing concepts.


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The exchange concept of marketing, as the very name

indicates, holds that the exchange of a product between the

seller and the buyer is the central idea of marketing. Whileexchange does from a significant part of marketing, to view

marketing as a mere exchange process would amount to a

gross undermining of the essence of marketing. A proper

scrutiny of the marketing process would readily reveal that

marketing is much broader than exchange. Exchange covers

the distribution aspect and the price mechanism involved in

marketing.

2. The production concept:-

This philosophy holds that customers favour those products

with low offer price and easy aaailibiity. Thus this concept

holds that high production efficiency and wide distribution

coverage would sell the product offered to the market.

Organization voting for this concept are impelled by a drive

to produce all that they can. Naturally, they get focused on

production and put all their efforts towards that aspect of the

organization. They do achieve efficiency in production. But

their thinking is guided by the assumption that the steep

decline in unit costs arising from the maximization of outputwould automatically bring them all the customers and all the

profits that they need. But they do not get the best of the

customer patronage.

3. The product concept:-


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This philosophy holds that customer favours quality,

performance, innovative features etc. the buyer will admiresuch products. Therefore firms following this philosophy

believe that by making superior products and improving

their quality overtime, they will be able to attract customers.

The product concept is somewhat different from the

production concept. Whereas the production concept seeks

to win markets and profits via high volume of production

and low unit costs, the product concept seeks to achieve the

same result via product excellence- improved products newproducts and ideally designed and engineered products. It

also places the emphasis on quality assurance. They spend

considerable energy, time and money on research and

development and bring in a variety of new products.

Organization which follow this concept concentrate on

achieving product excellence. They do not bother to study

the market and the consumer in depth. They get totally

engrossed with the product and almost forget the consumer

for whom the product is actually made. They fail to find out

what the product is actually made. They fail to find out what

the consumers actually need and what they would gladly

accept. When organizations fall in love with the product, it

leads to marketing myopia because the focus is on the

product rather than on the customer needs.

4. The selling concept:-


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This philosophy holds that customer, if left alone, would not

buy enough of the companys products. The organizationmust, therefore undertake an aggressive selling and

promotion effort. As more and more markets became buyers

markets and the entrepreneurial problem became one of

solving the shortage of customers rather than that of goods,

the sales concept became the dominant idea guiding

marketing. Most firms practice this concept when they have

overcapacity. This concept maintains that a company cannot

expect its product to get picked up automatically by thecustomers. The company has to consciously push its

products. Aggressive advertising high power personal

selling, large scale sales promotion, heavy price discounts

and strong publicity and public relation are the tools used by

organization that rely on this concept. As a result the public

often identifies marketing with hard selling and advertising.

But marketing based on hard selling carries high risks. It

assumes that customers who are coaxed into buying a

product will like it and if they dont they wont badmouth

about it or complain to consumer organizations, and will

forget their disappointment soon and buy it again. These

assumption do not have base. One study showed that

dissatisfied customers may badmouth the product to 10 or

more acquaintances and bad news travels fast. Selling

concept is practiced more aggressively with unsoughtgoods, goods that buyers normally do not think of buying

such as insurance, encyclopedias etc.

5. The marketing concept:-


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The marketing concept holds hat the key to achieving its

organizational goals consists of the company being more

effective than competitors in creating, delivering andcommunicating customers value to its chosen target

markets.

This concept was born out of the awareness that marketing

starts with the determination of consumer wants and ends

with the satisfaction of those wants. The concept puts the

customer both t at the beginning and at the end. It says thatany business should be organized around the marketing

function anticipating, stimulating and meeting customers

requirements. The customer has to be the center of the

business universe and not to the organization. A business

cannot succeed by supplying products and services that are

not properly designed to serve the needs of customers.

The marketing concept rests on four pillars.

They are target market:-A market has to define the market

to which it will direct its efforts. The specification and

identification of market would enable the marketer to design

specific marketing strategies. A target market is defined as a

set of actual and potential buyers of a product, service or

idea. A buyer, who has interest in the product , income and

willingness to buy can broadly be called as potential buyer.

However, it might not be possible for the marketer to target

all of them. There might be geographical barriers,

unsuitability of product to certain climatic conditions orinability of the marketer to reach certain hilly or remote

areas. Thus a small portion of the potential market might

become part of the target marke


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a) Customer needs:-

A company can define its market but fail to correctly

understanding the customer needs. Understanding customer

needs and wants is not always simple. Some customers haveneeds of which they use words that require some

interpretation.

There are five types of needs. They are stated needs, real

needs, unstated needs, delight needs and secret needs.

Responding only to the stated need may shortchange the

customer. A responsiveness marketer finds a stated need

and fills it .he is going to lose the consumer in the near

future. An anticipative marketers looks ahead into what

needs customers may have in the near future. A creative

marketers discovers and produces solutions customers did

not ask for but to which they enthusiastically respond.

Therefore companies must go beyond just asking

consumers what they want. This is necessary because a

companys sales come from two groups, new customers and

repeat customers. One estimate shows that attracting a new

customers can cost five times as much as pleasing anexisting one and it might cost sixteen times as much to bring

the new customers to the same level of profitability as the

lost customer. Customer retention is thus more important

than customer attraction.

b) Integrated marketing:-

when all the companys departments work together forserving the customers, the result is integrated marketing.

integrated marketing takes place on two levels; first the

various marketing functions- sales force, advertising,

customer service, product management, marketing research

must work together. Second, marketing must be embraced


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by the other departments, they must also think of the

customer. According to david Packard of hewlet- packrd,

marketing is far too important to be left only to the

marketing department.

To foster team work among all departments, the company

carries out internal marketing as well as external marketing

internal marketing is the task of hiring, training and

motivating able employees who want to serve customers

well. External marketing is marketing directed at people out

side the company

c) profitability:-

The ultimate purpose of the marketing concept is to help

organization achieve their objectives. In the case of non

profit and public organizations, it is surviving and attracting

enough funds to perform useful work. Private firms should

not aim for profits as such but to achieve profits as a

consequences of money by satisfying customer needs better

than its competitors.

The societal marketing concept:- this concept holds that the

organizations task is to determine the needs, wants and

interests of target markets and do deliver the desired

satisfaction more effectively and efficiently than

competitors in a way that or enhances the consumers and

the societys well being.

The societal marketing concept calls upon marketers tobuild social and ethical consideration into their marketing

practices. they must balance the often conflicting criteria of

company profits, consumer want, satisfaction and public

interest.


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Q.2: Describe the stages involved in market research

process.

Ans.2: It refers to a set of sequential steps to be followed to

complete the task of research. Each steps is independent but is

closely related to other steps. It is independent in the sense that

each steps has a unique and decisive role. It is inter dependent

because the result of the preceding steps is the basis for the

succeeding step.

1. Defining the problem:-

a) identifying and defining the problem:-

Problem well defined is half solved. Therefore

defining correctly the problem is the most important

part of any marketing research. Researchers have to

identify, define conceptualise the real problem. Real

issues may not be apparent issues may be deceptive.

Care has not be taken while defining the problem.

b) Setting up specific research objectives :-

Once the problem has been defined, the researcher has

to time the specific research objectives. The are a

broad frame within which research has to be

conducted. To this, the researchers have to address

themselves to the why aspect to the study.

2. Research design:-

It the blue print of the research project and when

implemented must bring out the information required


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for solving the identified marketing problem. It calls

for the following decisions.

a) Decision on data sources :-

The researcher has to decide which data sources to

use. There are two data sources available. They are:

1) Primary data or data collected for specific

purpose.

2) Secondary data which are collected for some

other purpose.

Secondary data has an advantage over primary data in

terms of cost, availability and time. It has the

drawback of relevance to specific situation. The

decision regarding data sources depends upon the

usefulness of the data and its cost.

b) Decision on research approaches: there are 5

types of research approaches. They are

1) Bbservational research:-

Fresh data is being collected by observing the situation

and the people in the situation and the people in the

situation.

2.) Focus group research:-

Collecting information from few people who are

invited to discuss the matters.


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3.)Survey research :-

Collecting information by conducting elaborate survey

regarding people knowledge, beliefs, tastes and

preferences.

4.) Behavioural research:-

Information collected by learning the behaviour of theconsumer.

5.) experimental research:-

Collecting information by conducting experiment In a

controlled environment where one or two elements are

left two operate and other factors are being controlled.

c) Decision regarding research instruments: there are

mainly two types of research instruments. They are:

1) Questionnaire:-

A set of questions logically arranged presented to the

respondents to answer.

2) mechanical devices:-

Mechanical devices such as galvanometer to measure

interest and emotions, eye cameras to study eye

movement etc. can be used


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d) Decision on sampling plan :-

The preparation of the sampling plan calls for the

following questions:

1) sampling unit:- The researcher has to define the

universe in which he is conducting research. He has

to answer who is to be surveyed.

2) Sample size:- he has to decide what should be the

size of the sample or answer the question how

many people need to be surveyed.

3) Sampling procedure:- further, he has to decidewhat should be the method for selecting the

samples

4) Sample size:- he has to decide what should be the

size of the sample or answer the question how

many people need to be surveyed.

3. collection of information:-

For eliciting the required information, the researcher

has to pre[are the form which contains questions to be

asked to the respondents. The form should be designed

in such a way that the information can be collected

with speed and accuracy. The form of the

questionnaire depends upon the nature of the

information sought, the kind of respondents and data

collection methods.

The researcher have to appoint well trained people to

collect the information from samples selected for the


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research. They must be properly trained, directed and

motivated.

4. Analyze the information.:-

a) Editing: It is done in two stages. The first stage is

the field editing which is done to detect the glaring

omission and inaccuracies, immediately after

collection because the interviewers have fresh

memory about the lapses and wrong statements.

The second stage editing is office editing to

evaluate completed return. This is done by a

complete through scrutiny of the questionnaire.b) Coding: it consist of assigning symbols and

numericals to each answer. It is a technical

procedure for categorizing the data. It transforms

the raw data into symbols and numetals.

c) Tabulation: - it is the process of arrangement of

data in rows and columns to identify what is the

number of cases in each category.

d) Data analysis:- the tabulated data has to be

analyzed, appropriate technique of analysis should

be utilized to analyzed the data. It is a process of

converting the data into information which helps in

decision making by eliminating useless data and

making the useful data comparable.

e) Drawing conclusion:- it is converting data into

information. This is requires a high interpretations.

They are:

Induction method- in this method, a statement isdrawn from observed data to specific conclusions. It is

from observation

Deduction method- it starts from general to

particular. It is towards observation.


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5. Presentation of the report:- the effectiveness of

the report depends upon the methods of

communication and presentation of the research

report. A very useful research, if not presentedproperly, may not serve the purpose.

a) Preparation of the report: the user of the data is

not the researcher him self. The managers use those

findings which are properly understood. Therefore

the report has to be prepared in such a manner

which helps the manager in understanding data and

the conclusion drawn. It should be contain the title page, table of contents, executive synopsis,

methodology, objectives, limitations, findings,

conclusions and recommendations, appendix and

bibliography.

b)Recommendation and follow up:-

recommendation given in the report should be

practicable and implementable. The efficacy of the

researcher report can be maintained by follow up

activities. The principle researcher has to take a

careful review of the facts found in the research report.

He must try to find out the inefficiencies in the report

and make it a clear report.

This process includes control, quality appropriateness

and acceptability.


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Q.3: Explain the different types of buying behavior

Ans.3: consumer decision making varies with the type of

buying decision, there are great difference between buyingtoothpaste, a tennis racket, a personal computer, and a new car.

Complex and expensive purchases are likely to involve more

buyer deliberation and more participants. Assael distinguished

four types of consumer buying behavior based on the degree of

buyer involvement and the degree of differences among

brands.

There are four types of buying behavior.

1) complex buying behavior:-

consumers go through complex buying

behavior when they are highly involved in a

purchase and aware of significant differences

among brands. Consumers are highly involved

when the product is expensive, bought

infrequently, risky and highly self expressive.

Typically the consumer does not know much

about the product category and has much to

learn. For example, a person buying a personal

computer may not know what attributes to look

for. Many of the product features carry no

meaning: 16k memory, disc storage, screen

resolution and so on.

This buyer will pass through a learning processcharacterized by first developing beliefs about

the product, then attitudes, and then making a

thoughtful purchases choice. The marketer of a

high involvement product must understand the


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information- gathering and evaluation behavior

of high involvement consumers. The marketers

needs to develop strategies that assist the buyer

in learning about the attributes of the product

class, their relative importance, and the highstanding of the companys brands features, use

mainly print media and long copy to describe

the brands benefits, and motivate store sales

personnel and the buyers acquaintances to

influence the final brand choice.

2) dissonance- reducing buying behavior:-

sometimes the consumer is highly involved in a

purchases but sees little difference in the

brands. The high involvement is again based on

the fact that the purchases is expensive,

infrequent and risky. In this case, the buyer will

shop around to learn what is available but will

buy fairly quickly because brand differences

are not pronounced. The buyer may respond

primarily to a good price or to purchase

convenience.

After the purchases, the consumer might

experience dissonance that stems from noticing

certain disquieting features of the product or

hearing favorable things about other brands.

The consumer will be alert to information that

might justify his or her decision. The consumerwill first act, than acquire new beliefs, and end

up with a set of attitudes. Here marketing

communication should aim to supply beliefs


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and evaluation that help the consumer feel good

about his or her brand choice.

3) Habitual buying behavior:-

Many products are bought under condition of

low consumer involvement and the absence of

significant of significant brand differences.

Consider the purchases of salt. Consumer have

little involvement in this product category. They

go to the store and reach for the brand. If they

keep reaching for the same brand, it is out ofhabit, not strong brand, it is out of habit not

strong brand loyalty. There is good evidence that

consumers have involvement with most low-

cost. Frequently purchased products.

Consumer behavior in these cases does not pass

through the normal attitude sequence. Consumer

does not search extensively for information

about the brands, evaluate their characteristic,

and make a weighty decision on which brand to

buy. Instead they are passive recipients of

information as they watch television or see print

ads. Ad repetition creates brand familiarity rather

than brand conviction. Consumer do not form a

strong attitude towards a brand select it because

it is familiar. After purchases, they may not even

evaluate the choice because they are not highlyinvolved with the product. So the buying process

is brand beliefs formed by passive learning,

followed by purchases behavior, which may be

follow by evaluation. Marketers of low


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involvement products with few brand differences

find it effective to use price and sales promotion

to stimulate product trial, since buyers are not

highly committed to any brand. In advertising, a

low involvement product, a number of thingsshould be observed. The ad copy should stress

only a few key points. Visual symbols and

imagery are important because they can easily be

remembered and associated with the brand. The

ad campaigns should go for high repetition with

short duration involvement medium that is

suitable for passive learning. Advertising

planning should be certain product by a symbolthat is repeatedly attached to it.

4) variety seeking buying behavior:-

some buying situation are characterized by low

consumer involvement but significant brand

differences. Here consumers are often observed

to do a lot of brand switching. An example

occurs in purchasing cookies. The consumer

has some beliefs, chooses a brand of cookies

without much evaluation, and evaluates it

during consumption. But next time, the

consumer may reach for another brand out of

boredom or a wish for a different taste. Brand

switching occurs for the sake of variety ratherthan dissatisfaction.


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The marketing strategy is different for the

market leader and the minor brands in this

product category. The market leader will try to

encourage habitual buying behavior by

dominating the self space, avoiding out of stockconditions, and sponsoring frequent reminder

advertising. Challenger firms will encourage

variety seeking by offering lower prices, deals,

coupons, free samples, and advertising that

presents reasons for trying something new.


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Q.4:-what are the bases for consumer market

segmentation? Explain.

Ans.4:-

Two broad group of variables are used to segment

consumer markets. They are consumer characteristics and

consumer response or behavior. Under consumer

characteristics are three main bases for segmentation they

are:

1) Geographic:- This calls for dividing the

market into different geographical units suchas nations, states, regions, countries, cities or

neighborhoods. The company can operate in

one or a few geographical areas or operates in

all but pay attention to local variations.

2) Demographic segmentation:- in

demographic segmentation the market is

divide into group on the basis of variables

such as age, family size, family life cycle,

gender, income, occupation, education,

religion, race, generation, nationality and

social class. Demographic variables are the

most popular bases for distinguished customer

groups. One reason is that consumers wants,

preferences and usage rates are often

associated are easier to measure. Even when

the target market is described in non

demographic terms, the link back todemographic characteristic is needed in order

to estimate the size of the target market and

the media that should be used to reach it


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efficiently. Some of the demographic

variables used are:

a) Age and life cycle stage :-

Consumers wants and abilities change with age. On the

basis if age, a market can be divided into four parts viz.

different children, young, adults and old. For consumer of

different age groups, different types of products are

produced. For instance, different types of ready made

garments are produced for consumers of different age

groups. A successful marketing managers shouldunderstand the age group for which the product would be

most suited and determine his marketing policy, pricing

policy, advertising policy etc. accordingly.

b) Gender :-

Gender segmentation has long been applied in clothing,

hair styling cosmetics and magazines. Occasionally, other

marketers notice an opportunity for gender segmentation.

c) Income :-

Income segmentation is a long standing practice in such

product and service categories as automobiles, clothing,

cosmetics and travel. However, income does not always

predict the best customers for a given product.

d) Generation :-

Many researchers are now turning to generation

segmentation. Each generation is profoundly influenced by


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times in which it grow up the music, movies, politics and

events of that period.

e) Social class :-

It has a strong influence on preference in cars, clothing,

home furnishings, leisure activities, reading habits etc.

many companies design products and services for specific

social classes.

Psychographic segmentation:-

In psychographic segmentation, buyer are classified into

different groups on the basis of lifestyle or personality and

vales. People within the same demographic group can

exhibit very different psychographic profiles.

a) Life style:-

People exhibit different life style and goods they consume

express their lifestyles. Many companies seek

opportunities in life style segmentation. But lifestyle

segmentation does not always work.

b) Personality:-

Marketers have used personality variables to segmentmarket. They endow their products with brand personality

that corresponds to consumer personalities.

c) Values:-


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Some marketers segment by core values, i.e. beliefs

systems that underlie consumer attitudes and behavior.

Core values go mach deeper than behavior or attitude

determine, at a basic level, peoples choices and desire overthe long term. Marketers who segment by values believe

that by appealing to peoples inner selves, it is possible to

influence their outer selves their purchase behaviour.


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MB0031

MANAGEMENT INFORMATIOIN SYSTEM


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Q.1:- Explain the importance of MIS in the present

scenario.

Ans.1:- Since the MIS plays a very important role in the

organization, it crates an impact on the organizations functions, performance and productivity. The impact of MIS on the

functions is in its management. With a good MIS support, the

management of marketing, finance, production and personnel

becomes more efficient. The tracking and monitoring of the

functional targets becomes easy. The functional managers are

informed about the targets. The managers is kept alert by

providing certain information indicating and probable trends in

the various aspect of business. This helps in forecasting andlong term perspective planning. The managers attention is

brought to a situation which is exceptional in nature, inducing

him to take an action or a decision in the matter. A disciplined

information reporting system create a structured database and a

knowledge base for all the people in the organization. The

information is available in such a from that it can be used

straight away or by blending and analysis, saving the manages

valuable time.

The MIS creates another impact in the organization which

relates to the understanding of the business itself. The MIS

begins with the definition if a data entity and its attributes. It

uses a dictionary of data, entity and attributes, respectively,

designed for information systems use the dictionary, there is

common understanding of terms and terminology bringing

clarity in the communication and a similar understanding of anevent in the organization.


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The MIS calls for a systemization of the business

operations for an effective system design. This leads to

streamlining if the operation which complicates the system

design. It improves the administration of the business by

bringing a discipline in its operation as everybody isrequired to follow and use system and procedures. This

process brigs a high degree of professionalism in the

business operations.

Since the goals and objectives of the MIS are the products

of business goals and objectives, it helps indirectly to pull

the entire organization in one direction towards the

corporate goals and objectives by providing the relevant

information to the people in the organization.

A well designed system with a focus on the manager

makes an impact on the managerial efficiency. The funds

of information motivates an enlightened manager to use a

variety of tools of the management. It helps him to resort

to such exercises as experimentation and modeling. The

use of computers enables him to use the tools and

techniques which are impossible to use manually. The

ready made packages make this task simpler. The impact

is on the managerial ability to perform. It improves the

decision making ability considerably.

Since the MIS works on the basic system such as

transaction processing and databases, the drudgery of the

clerical work is transferred to the computerized system,

relieving the human mind for better work. It will be

observed that a lot of manpower is engaged in this activityin the organization. If you study the individuals time

utilization and its application.. you will find that seventy

per cent of the time is spent in recording, searching,

processing and communicating. This is has a direct impact


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on this overhead. It creates an information based work

culture in the organization.


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Q.2:- The selection of information technology is a strategic

decision in MIS development. Explain

Ans.2:- The development of modern information system is

a complex process. It needs knowledge; know how, skillsand technology in almost all the disciplines. The

developer, the designer and the user must be

knowledgeable in their respective area of functions and

responsibilities. As information system are being

demanded for online real time usage in business

management, its development requires through

understanding of the business and the manner in which it

is executed. Further, different technologies, other than theinformation technologies, other than information

technology, are used in the business for providing input to

the information systems.

In the seventies, the information system were of a stand

alone type outside the mainstream of the business. In the

eighties, the information systems were looked upon as a

resources for information to support the decision making.

Still, its use was off line and was largely dependent on the

user manager in the organization. In the nineties, the

information technology developed multifold and the

business became global, strategic and competitive, with

the business focus shifting from supply management to

customer service management. In short, the nature, type

and the quality of information system has undergone an

overwhelming change.

The several systems operating in isolation as stand alone

legacy systems are rejected in favour of the enterprise

wide integrated information systems. The off line batch

processing of data bringing out reports at the end of the


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period has been rejected in favour of the on line real time

systems for an access to know the current status of the

business.

The business management process has changed from

function management to process management. The

organization culture also changed from centralized,

bureaucratic, authority structure work groups were trained

and empowered to make decisions. This is called upon the

information system availability at the work place.

The nature of business is such that a lot of initiative of the

user is expected to decided his information needs at a

given point of time. Due to this, a change in the

architecture of information system is required, where by

the user requirements are made independent of data giving

him the freedom to manipulate the data using his own

methods. With such complex requirement, all around

information system development is becoming an art where

a lot of technology inputs are required. To be a successful

designer of information systems, one needs to have core

understanding of different kinds of processing.


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Q.3:- Describe processing of data, transaction,

application and information for MIS.

Ans.3:- In any information system application, the methodgenerally followed is to design modular or hierarchical

steps of processing leading to an output in a report form or

information having certain value specific or perceived as

seen by the user. The steps involved are data processing,

transaction processing, application processing and system

processing.

Data is the smallest atomic entity in the informationsystem which is basic to build the information system. The

character of data decides the quality of information it

offers to the user. If the data is taken care of properly, its

usage will ensure quality output. Hence in any information

system significant care is taken in building the data as a

first level input to the system the data is built through the

data design and modeling process which provides

specification and character to the data. These

specifications and characters are used throughout the

information system of a variety of applications. Data

processing is handling raw data in a systematic manner to

confirm to the data quality standards as determined by the

designer of the information system.

The atomic data entity is defined as a attached to an

attribute which has a character, meaning and presentation

providing specific message and understanding to its vieweror user.

Let us take a simple example of a data used extensively in

every application. Though the data is a universal entity in


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nature, it still requires determination of specification,

character and presentation. A date in isolation conveys the

position of the day in a calendar. In the information system

however, it may convey a number of things to the user.

First, therefore, it needs specification. It is necessary tospecify how the data will be specified, whether in the form

of DD-MM-YY or MM-DD-YY or YY-MM-DD. So the

data date has a specific order of positioning and

presenting. It interpretation also changes beyond its

generic meaning as a day in the calendar. A date on cash

receipt means the cash received date. A date on a fixed

deposit receipt indicates the maturity date.

A date with its associated context derives its meaning for

the application in information processing. Such data

specification determination exercise leads the data design

further. The specification of data means determining its

manner of presentation its value, specific or in limits, its

validity whenever possible. The character is numeric or

alphabetical or both. Unless the data is defined in this

manner, it cannot be used effectively. Hence to summarise,

data processing to confirm its specification, character and

validity. The system support the user through checks and

controls by responding and communicating errors of

wrong specification, errors of value, errors in validity.

The designer and developer needs to have vision and

understanding of the data to implement such processing in

handling the data. If due attention is not given in this areaof design, disastrous errors would occur during its usage in

a variety of applications. A systematic approach calls for

determining definition, model, character, value, and its

aspects, its purpose and then making use of this knowledge


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in processing to control its acceptance for further use. To

ensure the quality of information considerable effort is

spent on this data control aspect. Whenever such efforts

are missing, serious mistakes have occurred. Once the data

is accepted in the system then its use becomes unabatedand hence by instituting proper data processing methods,

with due regard to data definition, character and structure,

the quality of the information is protected and assured.

2.) Transaction processing :-

After the data has been processed, the next steps is toprocess transaction itself on certain lines. A transaction is

processed with reference to business rules, i.e. a

transaction is scrutinized for conformation to the rules,

policy or guidelines before it is taken up for further

processing. The rules may be directly related to the

transaction or it may have some relation and association

with other transactions. In case the transaction does not

conform the set of specified conditions governed by the

rules, the errors is displayed for user to take corrective

action.The transaction is processed for adherence to business

rules, correctness and consistency of data vales and for

validity of transaction. It should be noted that these three

aspects are applicable to all the transactions across the

business management functions.

such other condition that may be applicable.

One can add more business rules if necessary. However, if

the receipt transaction is to be processed, it will first be

processed for confirmation and conformance of these rules


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before it is taken to the next stage. The rules are checked at

the entry level processing after the individual data fields

are checked. If any one rule is not possible, the receipt

transaction is rejected.

The persons designing transaction processing system must

have or acquire the knowledge of business rules for

introducing them in the transaction processing system. In

the absence of this knowledge or by not incorporating

them, the transaction would be accepted for further usage

violating the business rules.

The next check in transaction processing is to confirminternal consistency, correctness and completeness of the

data. In our example of receipt transaction, a consistency

should be confirmed between the quantity sent, the

quantity received, the quantity accepted, and the quantity

rejected.

Another example is of the goods receipt transaction which

is in order by all dimensions but needs to be authorized by

the higher authority for excess delivery. Unless such check

is imposed all the excess delivery transaction would get

rejected. Though the transaction is invalid on the basis of

the internal consideration it is made valid by imposing

external conditions where transaction is approved by the

higher authority.

It is important to note

that the data at its element level may be correct but at the

transaction level it may go wrong. The third check afterconfirming the data quality and observance of the business

rules is for validity of the transaction is checked against

and system processing.


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Application processing:-

After data and transaction processing, the data finished in

these stages gets posted on the affected files. Application

processing is designed to process more than one type ofthe transaction to bring out the specific business result in

one or more business functions. This processing is carried

out once the transaction is processed for its validity.

Let us take an inventory application which requires the

receipt and issue transactions duly validated for inventory

processing. When these two transactions are processed, theinventory is updated and issues giving the net balance at

the end of the processing for each item in the inventory.

The inventory application is designed to bring out

inventory status affected by material transactions. In

application processing, certain terminal files get updated.

In the above mentioned case, file will be updated for

changes in the stock.

The application processing means the use of transaction

data bringing out a particular status. The application could

be designed to change the number of different files holding

a variety of information. In our example, besides the stock

file updation, the store ledger will change. It might trigger

certain actions based on the inventory status. For example,of the stock level is below reorder level, it would raise a

purchase requisition. If the below the safety level, it would

raise purchase reminder on the supplier.


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The application can be designed for status updation and

the status triggered actions in the related field of the

application. For example, if the number of work order is

on hold for no material to process, then on receipt of thematerial the affected work orders wick be released for

processing. Then the production schedules would also

undergo a change. A number of such examples can

illustrate that the application process can be designed for a

variety or functionalities and features which are essential

in running the business.

The scope of application processing can be made diverse

by incorporating different transactions from the same

application area or associated areas. For example, the

inventory and purchases application be processed together

for vendor evaluation, item valuation and payable

accounting. The scope of the application can be made

diverse, if it is foreseen at the design stage. At this stage

necessary inputs are provided in the transaction which can

be used at a later date in the other applications.

Information system processing:-

The system is at a higher level, over the application

processing. The system is defined as a product made up of

several application set in orderly manner to produce a

higher level information output different than the output of

the application processing.

For example, the financial system is a product of finance,

sales and purchases accounting applications. Normally the

system processing addresses the management issues of the


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business. In the financial system, processing is done for

cash management, asset and liability management,

working capita: management, etc. applications which are

used for system processing are the finance transaction

accounting, the fixed asset processing, the receivables andpayables processing, the sales and purchases accounting.

On the platform of these applications, the system is

processed for the analysis of number of aspects of the

finance management. It provides an insight into the funds

flow, the source: and the uses of funds, profitability and

productivity of the business. It throws light on growth,

through the analysis of various trends. The system outputs

are generally by the top management responsible for thestrategic management of the business.

The nature, role and the type of the system is such that its

design is very complex and sensitive to the business needs.

The system designer, therefore, must have a good insight

into the business for which the system is being designed.

The understanding of the business in terms of its

orientation focus, critical success factors and knowledge of

mission critical application is absolutely essential for

effective system design. The basic management functions

are same, i.e. finance, materials production or service,

personnel and sales, etc. in all the business.

Hence at the lower level transaction processing and

application processing may look similar but when it comesto the system design, it is influenced by the factors

mentioned above. In all business organizations, the basic

application deck may be the same but its input process

output would be the different. The third technology


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consideration is on communication. A wide range of

technology on communication are available for choice

between the electronic data interchange to fax modem data

transfer. System engineering handles the total scope as

covers processing design it application.

The information system engineering methodologies which

are capable of dealing with the data acquisition

technologies, processing technologies, processing

technology and architecture, networking technologies and

communication. The system processing Is efficient and

effective provided an appropriate choice of technologies isused and they are blended together properly to produce the

necessary information output.

Using the system engineering methodologies, when all the

information system in the organization are covered, a stage

is reached where the system are integrated for a still higher

level information output required by all the levels of the

management. The system so design through an integration

process are called enterprise resource planning systems the

business as a whole by way of functions and process

management as also by providing support through the

DSS. It is a total solution to meet the business information

needs, irrespective of the function, process, location, for

all the level of management and people.

The total realistic is possible if the system design ininformation system processing is all real time system. The

real time system are open in nature having a relational

exchange with external world realities. The real time

system integrated the hardware, human and database to


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capture data, validate transaction process, application and

execute the system to produce a business result.


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Q.4:- Distinguish between closed decision making

system and open decision Making system.

Ans.4:- The decision making system can be classified in a

number of ways. There are two types based on themanagers on the managers knowledge about the

environment. If the managers operates in a known

environment then It is a closed decision making system.

The conditions of the closed decision making system are:

a) the manager has a known set of decision

alternatives and known their outcomes fully in

terms value, if implemented.b) The managers has a model, a method or a rule

where by the decision alternatives can be

generated, tasted, and ranked for selection.

c) The managers can choose one of them, based

on some goal or objective criterion.

Few examples are a product mix problem, an examination

system to declare pass or fail, or an acceptance of the fixed

deposits.

If the manager operates in an environment not known to

him, then the decision making system is termed as an open

decision making system. The conditions of this system in

contrast closed decision making system are:

a) the managers does not known all the decision

alternatives.

b) The outcome of the decision is also not known fully.The knowledge of the outcome may be probabilistic

one.


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c) No method, rule or model is available to study and

finalise one decision among the set of decision

alternatives.

d) It is difficult to decide an objective or a goal and,therefore, the manager resort to that decision, where his

aspirations or desire are met best.

Deciding on the possible product diversification lines, the

pricing of a new product, and the plant location, are some

decision making situations which fall in the category of the

open decision making systems.

The MIS tries to convert every system to a closed decision

making system by providing information support for the

best decision the MIS gives the information support,

whereby the manager knows more and more about

environment and the outcomes, he is able to generate the

decision alternatives, test them and select one of them. A

good MIS achieve this.

The types of decision are based on the degree of

knowledge about the outcomes or the events yet to take

place. If the manager has full and precise knowledge of the

event or outcome which is to occur, then the decision

making is not a problem. If the manager has full

knowledge, then it is a situation of certainty. If he has

partial knowledge, then it is decision making under risk. If

the managers does not have any knowledge whatsoever

then it is decision making under uncertainty.


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Q.5:- Explain the impact of IT on quality of life.

Ans.5:- Use of information technology is now being

experienced at home, in public institutions, businessorganizations, education, health care, transportation,

manufacturing and services. It has not only touched our

personal life but also affected social life of everybody.

Following four main areas are seen as affected by impact

of information technology:

People are empowered with information and

knowledge. It has changed the decision makinghierarchy structure in the organization. Many

operational decisions are passed on to lower level in

the organization. Only high risk strategic decisions

are in the hands of senior and top management.

Internet and web technologies affected individuals in

terms of job and the manner in which the job is

executed. The work and workplace location becameseparate.

Business dynamics and competition is changing so

fast that response time to a change has to be much

less than before. It is capable of giving strength to

respond quickly, smartly and on time. In such

scenario people affected by impact have to adjust

very fast to faster pace of working. Those who can

not adjust suffer from work stress.

The concept of houses, family and life is slowly

getting vanished because technology exposes you to

work any time anywhere in single mode or in virtual


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mode. This means your home could be your office.

When you are in family gathering you can still pay

divided attention to the family and office work. The

result is relation with family members, friends and

colleagues will be strained and may become weakover a period of time. You may beisolated from

family and friends.

Information technology has given birth to new crime,

called as internet crime or cyber crime, a result of

widespread abuse of information technology. The list

of abuses is as given below

Spamming: sending unsolicited mail.

Jamming: disabling the site so that authorized

viewers cannot use website.

Hacking: obtain illegal access to personal,

commercial data.

Sending viruses: inserting and sending viruses

through internet to disable the computers and

networks. Sniffing: intercepting and collecting personal

or key information using software in

communication network.

Impact on social or on society is large due to ease of

access to information technology. The society is divided

broadly into two parts: having access to technology and

the other with no access enjoy its benefits, and those who

so not have are left behind. The digital divided is similar to

divided known as have and have nots causing social

tension.


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Q.6:- Write a short note on A E- business

Ans.6:- The scope of E-business is limited to executing

core business process of the organization. These process

would have external interface like suppliers, customer,contractors, consultants and so on. The core business

process of the organization are procurement,

manufacturing, selling, distribution, delivery and

accounting. These core processes are best run by

application packages like enterprise resources planning. If

enterprise definition is made wider including customer,

suppliers and distributors, application packages like supply

chain management is best suited for planning andexecution of entire business process.

Transaction processing, workflow, work group and

process control application are the backend system to main

ERP enterprise management systems.

For example, when a supplier sends goods, it is received in

the warehouse. This event is processed E-way using E-

business system are suite. The receipt, documents and

packages are read by bar coding system or RFID. Then

receipt processing is done to confirm the validity of

dispatch by the inventory, communication of receipt to

manufacturing, updating the purchases order, effecting

material accounts and supplier accounts, creating a

liability in payables and posting it into cash flow

projections. You will observe that receipt processing is

first done at locations like warehouse, and procurementmodule of ERP takes over to effect seamlessly all updates

and changes.


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In this event processing, workflow, system is used where

quality of goods is checked, confirmed and certified in

stages by three agencies in the organization, this event is

processed by a work group, which includes receiver at the

warehouse, QA inspector, and warehouse manager playingtheir respective role in the receipt processing as specified

in the workgroup application. Having accepted the goods,

automated and process controlled goods movement,

warehouse system takes over, and reads the receipt record

o move the goods physically to assigned bin in rack.

E-business system use internet capabilities to process anevent in seamless manner covering all technical,

commercial, business aspects and implications of an event.

Hey perform internal business operations and interface

with external agencies. E-business system scope manages

cross functional application system as a single business

process. It integrates cross functions seamlessly, automates

the tasks, and updates the information in real time. The

ERP and now customer relation management system is a

family of software solution packages dedicated to core

management functions of business. They are supported by

front end and back end system and applications designed

transaction processing, workflow management, work

group processing control. E-business system lay

foundation for other enterprise applications, namely E-

commerce, E-communications, and E-collaboration.

The current E-business system scope is built through ERP

dedicated to manufacturing resources management for

effective use of capacity and enhancing productivity. SCM

is dedicated to logistic and distribution management and


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CRM is dedicated to customer relation management for

customer satisfaction.

E- business essentially concentrates on functional businessinformation system and their integration. Traditionally,

five business system are recognized as marketing,

production, procurement, of human resource, and

accounting & finance. These functional system in E-

business have become more intelligent and knowledge

driven as against information driven in traditional way of

doing business. In marketing system, it helps to reach

customer directly and is in the position to understandcustomer behaviour, customers demographic

psychographic profile; it then helps to segment market by

customer for advertising, promotion, and contract.

In manufacturing system, it helps to automate number of

management process relating to resource, capacity,

engineering & design, maintenance, and support. The

application of it is so strong that is termed as computer

integrated manufacturing or computer added

manufacturing.

CIM adds value in the manufacturing by way of

simplification of processes in production and design.

Automation of simplified processes using process control

devices, numerically controlled machines and robots andlastly integration of all core and support processes

contributes to manufacturing excellence.


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In human resource management system extensive use of

internet is made to automate of HR planning, scheduling,

requirement analysis, training and development. The entire

chain of HR planning, advertising, recruitment and

selection is an automated one. HR administration is a hugearea of application which is wholly it enabled. It handles

payroll, leave planning, document, career planning and

succession.

The architecture of these process enables to receive inputs

from other functional systems like marketing,

manufacturing, and HR, and process the same account andanalyze the impact on the business performance, be it cost,

profit or productivity. An integrated E-business system is

capable of forecasting resources requirement managing

resources, budgeting capital, sales and manpower, and

measuring financial performance.

B. E- Communication.


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Ans.6(B):- In E- business world, E-communication

system is a back bone of all processes whose role is to

share information by messages or store information to

download on access by the customer. This is done throughmany applications and systems. Most popular and widely

used messaging system are E-mail & voice mail. Through

these system both parties communicate on ongoing basis.

It provides provides facilities to store delete and search

mails supporting the reference needs of the user. This

system is popular when one to one communication is

needed.

When there is need for communication in real time, system

available are voice conferencing, video conferencing and

electronic meeting. Voice conferencing is conducted on

telephone network using speaker phones or networked PCs

with internet telephone connectivity. Video conferencing

provides capabilities of video and audio for participants

situated at different locations. Video conferencing also

becomes an interacting and effective communication

system when it has a feature of white boarding and

document sharing. In electronic meeting system,

parti

Documents

7064910 Sem 2 Assignment