Need help with my writing homework on Business Systems and Process/Operations Management. Write a 1500 word paper answering; By integrating these units using the information system, Michelangelo Pizza (MP) can gain a competitive advantage in the market which can be analyzed in the light of Porter’s five forces model.
The first competitive force according to the model is the entry of new competitors into the market. New entrants might be able to capture some of the market shares of MP and will adversely affect profitability. With the implementation of the Information System, MP can repel this threat to its business. The sales department can maintain a database of the orders which can significantly assist in identifying which type of Pizza is most popular among the customers. This information can be utilized in building different promotional activities for capturing market share and building brand loyalty. Information System can aid the accounts department in setting up an EDI (Electronic Information Interchange) with its suppliers through which specification regarding the raw materials to be supplied can be sent via network and thus saving time and cost.
The threat of substitutes is another competitive force in Porter’s model. For MP threat of substitutes in the market could mean fast food items such as burgers, sausages, hotdogs, etc. Substitute can also mean any other Pizza making company in the market which can offer better customer satisfaction than MP. Implementation of information system helps in improving the customer service in the organization by linking the functional department together and thus adding value to the business strategy. If the inventory management is computerized with the help of the information system, the cost of holding an excess extra stock can be reduced, and thus eventually the cost per pizza is less. When PM is not charging extra money to its customer for a pizza, the cost of switching to for the customer is higher and they will refrain from buying any other substitute. MP can maintain a database containing all the prices of the substitute products in the market. Regular Analysis of the database will keep the company informs about the changes in the prices of these products and how they should respond to it. The development of a website on which customers can place their orders and integrate it with all the other functional departments can also enhance customer convenience.