Information Systems Essay Example

in electronic businesses. Supermarket chains like Sainsbury's and Tesco have taken advantage of this by introducing loyalty cards such as the 'nectar card' and 'club card'. These cards utilize an information system that enables customers to earn points on their personal cards whenever they shop at these stores.

Once a personal card reaches, such as the nectar card, a total of 1000 points, the customer who has been using the card receives an amount of ?5 to spend at any of the organizations' participating outlets with the nectar card. Jencos aims to implement a loyalty card for customers who make purchases on their website, in their physical stores, and at their petrol stations. Jencos' directors believe that they are not effectively retaining their existing customers or attracting new ones. By introducing a loyalty card system, they hope to improve customer retention and potentially attract new customers.

Introducing loyalty cards to the business allows Jencos to possess a database with information about the number of issued loyalty cards. This data provides them with an approximate count of their customer base. Furthermore, loyalty cards serve the purpose of monitoring customer behaviors and purchases, thereby enhancing Jencos' customer relations efforts. The company has built a reputation and achieved success in southern Wales based on its strong customer relations. By utilizing loyalty cards, Jencos can maintain this positive relationship by sending discount vouchers to customers for use at their outlets throughout the UK on their birthdays.

Jencos should consider investing in an online system that collects customer details from loyalty cards and informs employees of customers' date of births. Currently, Jencos lacks automatic links for stock replenishments and a suite of integrated

office software programs. This deficiency could impede decision-making between office staff and floor staff, resulting in additional unnecessary work for employees. Therefore, it is recommended that Jencos invest in these systems.

The introduction of the extranet Jencos allows for cheaper, more efficient, and quicker communication between the company and its suppliers. Suppliers can now be contacted electronically, eliminating the need for mail, telephone, or fax. This is advantageous because the extranet ensures that messages are transmitted without any alterations. Additionally, Jencos can implement a customer help line system to improve customer relations. This system would have skilled employees available to solve any issues or address any concerns that consumers may have.

Jencos should prioritize its continuity planning, which involves creating and validating a logistical plan for recovering and restoring critical functions after a disaster or extended disruption. This plan ensures that the organization can resume operations within a specific timeframe. Jencos should particularly focus on continuity planning since they are planning significant investments to expand across the UK.

Expanding into an unfamiliar market is a risky decision for Jencos supermarkets due to fierce competition from companies like Tesco's and Sainsbury's. The continuity plan should include provisions for potential disasters, fires, illnesses, and theft. It is crucial for Jencos to have well-defined ethical guidelines that are implemented and followed by all employees. Nowadays, consumers prioritize companies with a strong ethical track record on issues like the environment and human rights when making purchasing choices.

"(Brassington and Pettit 2006) If any of Jenco's employees violate ethical guidelines, it could have serious consequences such as losing significant customers and damaging the company's reputation, potentially leading to its downfall." The reputation of

the organization is crucial in attracting and reassuring investors, as well as retaining employees" (Brassington and Pettit 2006). All employees at Jenco contribute to the company's reputation, making it vital for them to adhere to ethical guidelines. Examples of general ethical guidelines in businesses include discrimination based on race, age, and sex.

Emerging technologies like Radio Frequency Identification (RFID) have the potential to benefit supermarkets. RFID, currently used in retail, is expected to expand into supermarket businesses. It consists of a transponder chip attached to products and a transceiver for reading the chips. This technology is predicted to surpass bar codes and can also be used in food stores to monitor specific item temperatures.

The adoption of Radio Frequency Identification (RFID) technology by Jencos would bring numerous benefits. It would save time and effort while improving operations like replenishments, sales forecasting, and stock control. This, in turn, would generate cost reductions. Additionally, RFID would enhance consumer understanding by effectively measuring their purchases. However, it is important to note that RFID is a relatively new technology that is not yet completely proven. Furthermore, implementing RFID would significantly increase Jencos' costs due to the need for expensive equipment.

The online aspect of Jenco's business is improving with the availability and usability of new technologies. These technologies allow for the monitoring of beneficial information in surveys and keeping up to date with rival supermarket chains like 'Booths'. Booths is a family-owned small supermarket chain in the North of England. They have managed to thrive in a highly competitive market by focusing on stocking local produce, creating a welcoming atmosphere in their stores, and offering unique specialist foods and ingredients

that are not easily found elsewhere.

While Booths may not be able to offer the same low prices as Tesco's in a price battle, they excel at effectively advertising to their target audience. This audience consists of consumers who support local businesses and prioritize high-quality local products. Jencos may benefit from considering these ideas and exploring the strategies employed by other small supermarket chains like Booths for survival and innovation.