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Virginia’s Finest Meat Distributors

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Questions: 

Question 1

 

a.       Discuss each of Porter's Five Forces in relationship to VFMD. 

 

FORCE

List Porter's Five Forces

JUSTIFICATION of your selected impact

Minimum 3 good sentences that explain the impact of the force on VFDM to demonstrate understanding of the force. 

Refer to specific details from the business in the case study to support your explanations. You must mention the case study to gain all points for your submission.

Threat of entry

There is little threat of entry for VMD’s meat distributors. This is because the prices of meat have been falling recently. Due to the fall in prices of the meat, there is little likelihood that few firms will be willing to invest.

 

Threat of substitutes

There is a high threat of substitutes for the products sold by VMD. This is because there are big boxes and grocery chains that offer the same product. People might opt to get meat from other vendors.

 

Bargaining power of suppliers

There is higher bargaining power for suppliers. From VMD's case study, it is clear that the number of producers shrinks. As the number shrinks, suppliers can dictate the pricing of meat.

 

Bargaining power of buyers

Higher bargaining power. From the case study, people's lifestyles have changed and they want to eat healthily. For this reason, demand for meat products reduces and customers can have a higher say on the pricing of meat.

 

Industry rivalry

There is less rivalry in the meat industry. From the case study, Virginia Finest Meat Distributors is one of few privately owned meat distribution companies in Washington which means rivals have ditched the market. This reduces the level of rivalry.

 

 

b.      The threat of entry: It should be the primary focus because so far very few privately owned firms have been left in Washington and for VFMD to be ahead of the other few firms it must consider what potential entrants might do.

Question 2

VFMD should adopt the cost leadership strategy. This is because according to the case study, the cost of doing business is slightly high because of the process of drying meat. Furthermore, suppliers and buyers have higher bargaining power, and this implies that VFMD must lower its meat price.

Question 3

Process

Choose a step in the process listed and write it in the space provided

Input

Information/data item entered into the system as part of this process step

(input needed for the system)

Processing

Processing or action the system must perform for this process step

(what the system will do with the input)

Output

Information/data item displayed or printed out for the user in this process step

(what the system will output/display)

PURCHASING PRODUCTS –

Briefly, describe ONE step in the process:

 

 

Price per kilogram

  Number of kilograms

 Total amount of the product

SCHEDULING DELIVERIES TO CUSTOMERS –

Briefly, describe ONE step in the process:

 

 

Order number

 Location of the customer

 Delivery status

MANAGING INVENTORY –

Briefly, describe ONE step in the process:

 

 

 

Number of kilograms received

 Kilograms sold

 Remaining stock regarding kilograms

 

Question 4

 

a.       Supply Chain Management System

The supply chain management system will reduce the inventory costs of VFMD  which translates to overall operating costs. Through the system, VFMD will be able to run a just on time supply of meat to customers thus reducing storage costs and losses.

b.       Customer Relationship Management System

The system will lead to better customer experience for the services provided by VFMD. The company will be able to monitor responses of customers and act on them. This improves customer service and experience.

c.       Enterprise Resource Planning System

The system will help VFMD to do demand planning for meat. Through an ERP system, VFMD will be able to know the level of demand for meat at different times and therefore plan on how to meet the meat demand.

Question 5

a.       Question, information needed and explanation #1:

Are there any prospects of an increase in demand for meat in Washington? Victor would like to know this information so that he can have a well laid down plan to meet the future anticipated increase in demand. Using this information, he might realize that demand for meat is poised to increase shortly. This enables him to have his plan ready for implementation.

b.       Question, information needed and explanation #2:

Will there be enough supply of meat to meet the sales targets if VFMD decided to increase its sales volumes? He would like to know this so that he can gauge whether plan to increase sales is feasible, and all customer needs can be met. Using this information, Victor might realize that number of meat producers is shrinking and therefore any plan to increase sales is not possible.

 

Question 6

 

 

Business Process for Virginia’s Finest Meat Distributors

Type the name the business process that you selected from #3 here: ­­Managing inventory  ______________        

      

IT

 Requirement

Importance/
Relevance

High, Medium,
Low, or Not Applicable (N/A)

(each must have a ranking, including N/A)

Explanation for Ranking Including N/A

(Write a minimum of 3 good sentences for each.

  • Include why/how the IT requirement applies to the process you selected.
  • In your explanation, identify the data or type of data used, where applicable.
  • Specifically, mention and relate your answer to the Case Study Virginia's Finest Meat Distributors.

Usability

High

Managing inventory system usability is high because the sale of meat to customers goes with orders that customers place. Information Technology will enhance the just in the time inventory management system. It will be easier to use because it is just a click of a button by the users to generate information.

Scalability / Portability

High

Scalability is high because inventory process will depend on with demand by customers. As the capacity increases, the integrated system can easily be expanded.

Database/ Data Quality

Medium

The quality of data is medium because there is no certainty of the level of demand. The level of demand for meat is bound to fluctuate.

Reliability/ Availability

Medium

The process is reliable to some extent but not entirely reliable. Inventory maintained can meet all customer demands for meat.

Authentication /  Security

Low

The level of security is low because once a user logs into one application of the system, he can access other applications without an authentication. However, the single logout feature requires that logging out from one application; all other applications automatically log out in the same browser.

Question 7

a.       Preliminary Analysis:  Cost benefit and risk analysis of the system is supposed to be done before embarking on the implementation process. In the case of VFMD, cost regarding maintaining the system and profits that will accrue from the sale of meat should be done.

b.      System Analysis and Design: Conceptual, technical architecture of the system and how it will enhance customer service efficiency regarding processing customer requests for meat.

c.       Programming:  Since the system has already been developed by the SaaS vendor, Victor is not required to take any action regarding the Programming Phase.  The vendor will have already created the code needed.

d.      Configuration and Testing:  During the configuration of the system, Information technology professionals should ensure that SaaS architecture is scalable regarding handling voluminous orders for meat from customers.

e.       Implementation and Continued Use:  Support personnel and end users should be trained at this stage. Operators of the system in VFMD should be taught on how they will be handling customer orders for meat. What they can do when the system fails and running the backup.

 

 

 

Question 8 

 a.   Business Benefit #1 and explanation:

It reduces the time for processing an order while increasing the benefits to customers. Time of installation and configuration is reduced with SaaS solution, and this reduces some issues associated with delays in serving.

b.   Business Benefit #2 and explanation:

SaaS solution reduces costs through savings. The system reduces costs of installation and costs of maintenance and upgrades. SaaS applications are easily downloadable for free from the internet. There are highly powered applications that can be downloaded via SaaS at no cost.

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