Management Decision Making Assignment Sample
1. Introduction and organization context
1.1 Introduction of SME
SME can be defined as a Small and Medium-sized Enterprise which is associated with lowers than 250 employees. SME is a business form that is involved with less than €50 million turnover and less than €43 million according to the balance sheet. The major characterizes of SME is that this business is associate with simplicity that is involved with simple structure of organization (Shukoret al. 2020). This structure allows the owner of the business to develop flexible and develop changes according to requirements. This business form allows the owner to handle business easily and quickly which is not associated with identifying broad members and approval of stockholders. SME is important for improving the economical condition of the country through growing the overall impact. This can be found from the recent report that SME creates around 50% of employments of the county and 33% of income come from small medium scale enterprise (worldbank.org, 2022).This business form plays an essential role on developing network and growth of social and economic sector of countries. This business sector has contribution on the enhancing employment rate and national income.
1.2 Overview of KKB bookshop
The main mission of Kildare Kids’ Bookshop is to provide resources, books, and programs of training for supporting readers and flourish learning and developing pleasure within environment. This has more than 6000 books for kids which are even increasing in every yaer in this bookshop. The business model of this is associated with Business to Customer (B2C) based and the target customers of this organization are parents of children. Kilder Kid’s Bookshop is a small enterprise operated by Jude and Esther Matthews in the village of Sussex (NOVIANTY et al., 2018, p.14785). They have started the operation nearly two decades ago, therefore it is highlighted that the organization operates their business with 45 staff and all of them are under KKB’s payroll. As per the functional area of the organization, it is highlighted that the KKb’s core business area is selling books for the children of preschool and nursery. However, the organization also sells stationery goods, their customer base follows in the local area of Sussex and follows the teachers and educational professionals also (Kunath and Winkler, 2019, p.322). Therefore the organization also tries to increase their business area based on the online services of the shop.
1.3 Flexible working process of KKB
1.3.1 Telephone
During the period of COVID, the business organizations in the UK have faced several obstacles due to their customer’s absence in the market area. Therefore KKB has developed several strategies based on the present situation and the customer’s needs. This process also increases the organization’s sales as well as their interest to serve the customer’s needs also impacted the customer’s mind (Dalimunthe et al., 2018, p.1548). To construct the entire telephonic process the organization emphasizes the supply chain process across the servicing area of KKB through their efficient employee. Through this entire process, the organisation is highly dependent on its staff as well as it has a deeper impact on the future development of KKB.
1.3.1 Face to Face
The organisation follows a certain process that potentially increases the organizational sales of KKB. therefore it is highlighted that with the telephonic process the company also emphasizes on the face to face communication that increases the potential business dealings with the customers. According to this process, the organisation tries to increase their knowledge about the children’s fashion and their parent’s affordability on a certain product (Egan and Haynes, 2018, p.1478). Therefore it is clear that KKB is trying to develop a proper interaction strategy that increases the organisation demand as well as mitigates the issues that are highlighted in the Covid period.For example customer visit KKB and check sleeves for required book if found they talk to clerk for payment and take the book home. And from the side of clerk of shop they search book according to requirements of customer if find they give this to customers.
1.4 Digital transformation goal of KKB
As per the development of technology all business organisation tries to develop their strategies based on digitalized technology as well as strategy based on technological advancement. Therefore it is obvious that the organisation is trying to transform its strategies based on digital development and transformation. Besides digitalization, the organisation focuses on business development based on their primary method of traditional business dealing (Adrian et al., 2018, p.12347).
1.5 Beneficial factor of the integrated system
Through the integrated system, KKB is also able to continue to follow its business dealings based on the advanced approach of business. Therefore it is highlighted that the organisation uses several modern technologies to concentrate on the traditional process. . Therefore it is clear KKB has maintained its business policies.
2. Feasibility and research
2.1 Critical discussions of the notion of digital transformation
The technological and digital transformation is a process of using great Technology within a business process to create and modify the business proportion customer experience and culture. It helps to meet the market requirements in the changing business. During the covid-19 situation, the technological transformation has been enhanced throughout the world. The government has been implemented regulations in order to restrict in-person activities within a business process (Correaniet al., 2020, p.37). Due to this aspect, organisations have begun to implement technological and digital transformation.
Thereby the outbreak of Covid-19 pandemic situations has pushed the business to seek innovative and creative Digital solutions for the continuation of the business process remotely. The organisations have adopted innovative Technologies with regards to Information Technologies (IT) and Information Systems (IS). Moreover, the re-engineering perspective has been taken to modify as well as align the organisational strategies to compete globalised in the digitally advanced marketas globalisation is an essential technology transformational tool nowadays. As per the view of Chaniaset al. (2019, p.17), there are several platforms which are including e-commerce perception and video conferences that have been utilised by the organisation to provide guidance to their employees. The concept of ERP software, AI, and other Technology devices has been rapidly gaining acceptance among the business nowadays.
2.2 Critical review of ERP software
ERP software is an acronym that stands for Enterprises resources planning. ERP software within the business process is utilised to simplify the organisation’s activities related to the risk assessment, customer relationship, management project, management, operation, and supply chain network (Osman, 2018, p.32). The main aim of the business to implement ERP software is to provide the efficiency of the business operation and reduce the expenses that can enhance the profitability as well as the sustainability of a business.
ERP software can be categorised by analysing the financial level deployment, and size of a company. In total 4 types of software can be introduced and implemented in the business such as Generalist ERP, Vertical ERP, Open source ERP, and off the shelf ERP.
Generalist ERP
Generalist ERP system is a cloud-based ERP solution which is primarily traditional. The generally ERP system adjust to procedures by offering a high level of modification as well as customization in order to meet the requirements of the organisation (Samia, 2019. , p.15). NetSuite ERP is an example of generalist ERP.
Advantages
- The implementation of a generalist ERP system is much easier than the other ERP system(Al Bulushi, 2019, p.10).
- It provides a reliable solution
- It helps to reduce the expenditure on storage licensing and other additional purchases.
Disadvantages
- This system is able to initiate compatibility issues.
- It might be effective to class with the different software packages that can make them useless and insufficient (Doro et al., 2020, p.131).
Open source ERP
The open-source ERP system accounts for a small portion of the overall ERP market. An organisation with in house IT systems utilises the Odoo ERP in order to create the connection with their application into the ERP system (Al Bulushi, 2019, p.10)
Advantages
- It helps to enhance vendor Independence.
- The modification of open source ERP is easier than other ERPs.
- It helps to enable the business to meet the organisational requirement by implementing alternations(Al Bulushi, 2019, p.10).
- The cost of the software is significantly minimal they are by the maintenance and licenses of this software have been removed (Samia, 2019, p.15).
Disadvantages
- There is a restriction regarding the availability and quality which is the main issue.
Vertical ERP
The vertical ERP system is the industrial-based solution provider. The vertical suppliers supplied small businesses with an attempt to specialize in the industrial contest (Doro et al., 2020, p.131). An example of vertical ERP is AX Microsoft dynamic.
Advantages
- The logistics of all the supply chain-related work can be reduced by implementing the vertical ERP system within the business process.
- Enhances the software performances that can provide competitive advantages (Doro et al., 2020, p.131)
Disadvantages
- The maintenance cost of a vertical ERP system is very high
Off the shelf ERP
Off the shelf ERP system is opposite to customization and it helps to introduce modern technologies in resources management. The frequency of the off the self ERP system is modularized with the minimum functionality (Shukoret al., 2020, p.4026).
Advantages
- It is easy and quick to implement.
- It provides accessibility to the existing customers.
Disadvantages
- Unnecessary functionality and applications,
- Opposed to customisation (Shukoret al., 2020, p.4026).
- Highly expensive in order to upgrade as well as maintain
2.3 Implementation of ERP software
Throughout analysis and evolution of the KKB company is facing issues in order to discover the ideal plan to get completed advantages in the global market. The company is facing logistics or supply chain network related issues related to the distribution and deployment of its products to support direct online shopping. It will help them to implement the ERP system in order to integrate every function of their business globally. In this respect, the theory of Constraints can be effective and beneficial for the KKB organisation to introduce the earpiece system within they are business process. It will provide them with the overall growth with 6 different Sigma (Berićet al., 2018, p.77). That will help them to gain comparative advantages within their business process.
Planning and Discovery
The implementation of ERP systems begins with the planning and discovery that includes market analysis optimising the system establishing comprehensiveness etc. In this aspect, the KKB organisation needs to conduct market research and the issues related to supply chain management that can be resolved by the implementation of ERP systems.
Design
The KKB Company needs to design the ERP system by designing and providing an efficient workforce India supply chain in their business process. The company is consistent with 45 employees at this point in time and they have to illustrate the understanding of the recent business operation completely (Malindzakova and Puskas 2018, p.607).
Development
Integrate with the ERP system to develop there was the best solution that can integrate with the online sales at the same time.
Testing
For the testing perception, the company can appreciate the functionality of the system by reducing the probability of errors.
Deployment
After the successful implementation of the ERP system and testing without daughter configuration, the company can deploy the earpiece system and operate its business operation (Bericet al., 2020, p.1).
Support
Continuous up-gradation, as well as resolving the complications, can come under the support phase of the implementation
2.4 Organisational need of KKB
2.4.1 PESTLE analysis
| Political | Economic |
| ● Public funding from the government.
● More than 20% of the students for higher education arecome from abroad. ● Political stability provides sustainability in the village of Sussex. |
● Economical enhancement supports the banking perspective to provide loans to the students for conducting their studies.
● Weak job market (Leonadyet al., 2021, p.1) |
| Social | Technological |
| ● Willingness to the study
● acceptance of the book in the UK market provides opportunities |
● Online alternatives provide a positive aspect to the technological perspective. |
| Legal | Environmental |
| ● Publishing law helps them to ensure intellectual property (Leonadyet al., 2021, p.1) | ● The covid 19 situation has impacted negatively on the face to face business operation |
(Source: Created by the Learner)
2.5 Justification of most suitable ERP software
Analysing the current situation of RRB company it can be said that the Open-source ERP software application can be effective for the organisation to mitigate the issues by implementing the direct online support full stop the open source ERP system will be easier and quicker to implement in the comparison with other ERP systems. The company currently facing issues to provide their products online and telephonic orders it can be said that by implementing the open source ERP system the company can ensure maintaining the records of the online orders. As argued by Kujala and Halonen (2018, p.147), it also provides the full licensing authorities to the company that can enhance the supply chain management in a significant manner. Thereby it will be helpful for maintaining the good balance of the supply chain network that will be beneficial for the company to increase their customers as well as the overall profitability and sustainability of the business.
3. Evaluation within the case
3.1 Framework of ERP implementation
Therefore it is obvious that KKB also modify their business website mainly following the organisational base and their selling products based on their area of service (Talón et al., 2018, p.187). According to the benefit of ERP implementation, it is obvious that without the advancement of an integrated system it is difficult to follow all the necessary goals of a business. It is also effective to mitigate business-related issues. Through the website of the store, the organization tries to provide their telephone number to their customers that the customer can manage their needs through phone calls. The organisation develops their infrastructure following the base of tradition as well as digitalized and advancement strategy of ERP.
3.2 Revised business model of KKB
Following the studies based on the KKB, it is obvious that the organisation focuses on the business based on the children’s educational equipment and other stationery goods. Therefore it is highlighted that in the UK many people have lost their jobs at the sametime their buying ability also lowered (Borissova et al., 2020, p.111). According to the situational analysis, the organisation also moderates their business policies; they try to mitigate the extra cost of their service charge and try to provide quality goods for the better education of every child of Sussex. Therefore the organisation also tries to construct proper bondings that help them to know about their customer.
3.3 Suggesting name for rebranded enterprise
According to the reputation of KKB in the educational sectors especially for the child, the organisation must try to maintain a proper relationship with its customers therefore the organisation must change its name to Happy to learn for rebranding its enterprise.
3.4 10 major changes in enterprise 100
- All the physical stores are closed
- Profitability became lowered
- The telephonic process has developed in the business purpose
- Most the organisation highly dependent on the supply chain process to deliver their product
- Proper timing for developing a product
- According to the regulation following the COVID regulation, it is obvious that telephonic orders have increased a lot.
- There are several issues emerges in delivering product
- The organisation initiated to take several technological support
- Maintaining the Customers satisfaction program has faced several complications
- There are several barriers are faced to deliver the product on time
3.5 Opportunity of new business
According to several issues, KKB is trying to develop modern business planning following the essential measures of business competencies during the situational outcomes as well as they try to develop several new business ideas that are helpful to mitigate the issues that create several obstacles (Alkatheeri et al., 2020, p.12065). As per the analysis of the present situation, it is clear that the goods related to the educational purpose are not the only way to maintain sustainability in a business therefore the organisation tries to concentrate on the stationary product analyzing the present scenario.
4. Recommendation and conclusion
4.1 Recommendation for KKB
According to the present scenario of the educational system in the UK, it is highlighted that all the schools in the country are closed therefore the business of KKB is facing several issues in developing their business and the following sustainability (Hertati et al., 2020, p.89). Therefore it is highlighted that the organization needs to emphasise to increase their business following the advancement in a stationery product as well as on the delivering the goods as per the customer’s flexibility of times. Proper analyse based on the situational outcome also helps the organisation to understand the basic needs of the customers as well as follow all the recent trends and customers’ behaviour based on the financial condition of the country. According to the present scenario and economic structure of the country, it is obvious that the customers avoid a bare extra amount. Therefore the organisation must concentrate on developing its business area through advertising (Mukred et al., 2021, p.90). Therefore it is obvious that telephonic business is not enough for the organization to follow certain business profits therefore KKB must concentrate on developing its perspective based on technological advancement. According to the perspective of SMEs, the organisation also follows the traditional business perspective that they try to follow with the advancement of technology, therefore it is obvious that KKB has implemented certain changes in their planning that improve their services towards their customers.
4.2 Conclusion
Following the context based on the KKB’s field of work and their service in the pandemic situation, it is obvious that the organisation is trying to develop their business area following the proper customer relationship program as well as moderating their business approach based on the technological advancement. Therefore it is another thing that is highlighted that the organisation also faced several financial issues due to the closure of the educational institution. Therefore it is clear that KKB has potentially changed its business perspective that has identically changed its business approach as well as developed its business area in Sussex. According to the area of business, the organisation also increases their employment rate to meet the entire customer’s service and their desire based on the shop’s previous reputation.
Reference list
Journals
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Website
worldbank.org, 2022 Small and Medium Enterprises (SMEs) Finance available at: https://www.worldbank.org/en/topic/smefinance [accessed on 11.03.2022]
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