Final Case Study Management Information Systems
Content
Chapter - 3 Management Information Systems
CASE STUDY - 3
E-COMMERCE, SOUTH KOREAN AND MIDDLE EASTERN
STYLE Korea and the Arab Middle East
South
Qst - 1
have had such different experiences in
adopting e-commerce?
Ans - 01
The answer to this question can be found in the
differen ces that exist between the eco nomic and
cultural environmen ts of the 2 countries.The South
Koreans have easy,affordable access to the Internet,
and are quite comfortableusing internet Their
government is working to advance the use of
technology & taking steps to develop a highly secure
digital signature system. This should encourage
individuals to shop online more . Additionally, the
government is encouraging the use of elect ronic
money and credit cards.
The Middle East's use of e-commerce sharply
contrasts with that of the South Koreans. Few ecommerce sites exist, and those that do only have
about 1000 visitors a day. The cost and availability of
technology, high tariffs, and few credit cards are all
reasons why e-commerce is not as successful in the
Middle East.
Qst - 2
How would a company's management, organization, and
technology have to change to either purchase or sell
goods in South Korea or in the Middle East?
Ans - 02
Students should recognize the influence of
government on business. Most of the problems are
larger than any one company can solve. Its
management would first have to realize the problems
and opportunities, decide how they would proceed,
and develop the organization and technology to
proceed. It would certainly need to hire or train a staff
that has the technological skills needed to operate in
South Korea or the Middle East. The organization
would need to understand the legal environments in
both countries, so that the company could decide how
to operate, what it can purchase, what it can import,
what it can sell, and what it can export.
The company could not change the legal environment,
but it needs to determine how it can protect itself and
its assets in both countries. In the Middle East, the
company should find customers who use credit cards
or who are willing to be taught how to use them. The
management, organization, and technology must be
well coordinated to respond to the current situation so
it can operate successfully.
In the Middle East, organizational factors include the
lack of computers at many companies and the
concomitant lack of computer skills by many
employees. The organizations will need to train their
employees and the employees of their suppliers and
customers. Such companies also need employees
who can develop the needed software, or modify it, for
use in South Korea and the Middle East.
Chapter - 14 Management Information Systems
CASE STUDY - 4
TOYOTA'S DATA SPINS OUT OF CONTROL
Qst - 1
What management and organiza tional
problems were created by poor data quality at
Toyota?
Ans - 01
Management relied on the Corporate Customer
Information System to provide quality, reliable,
and accurate information about service problems,
warranty, roadside assistance, prepaid
maintenance, and other service requests. The
problem was that the data were, in many cases,
erroneous. The erroneous data led to increased
costs, inefficiency, and an image problem.
Although Toyota's culture and business processes
are built on quality and control, its data quality
problem necessitated improvements in
performance and organizational change.
Qst - 2
What management decisions had to be made
to solve this problem?
Ans - 02
Toyota's customer data were stored in 15
databases, resulting in inconsistent data. In
an effort to improve quality and decrease the
amount of time required to access customer
data, management decided that a single
centralized customer database was needed.
Toyota needed to cleanse the data and
ensure data accuracy. Management needed
to establish standards for
Internet only Banking will survive Why ?
Internet only banking will survive because online
banking is alos environmentally friendly. Electronic
transmissions require no paper reduce vehicle traffice
and are virtually pollution free. They also eliminate the
need for buildings and office equipments. Online
banking has plenty of perks. They includes : 1)
Convenience 2) Better interest Rate & Low Markups 3)
Better Services 4) Mobility 5) Transfer 6) Easy to use.
1) Convenience : Direct bank are open for business
any where there is an internet connection they are
open 24 hours a day 365 day a year. If internet service
is not available customer service is normally provided
around the clock via telephone. 2) Better interest rate
& Low Markup : The lack of significant infrastructure
and overhead cost allow direct banks to pay higher
interest rates on savings and charge lower mortgage
and Loans rates. Some offer higher yiel checking
accounts. 3) Mobility : Online banking now includes
mobile capabilities. New applications are continually
being created to expand and improve this capability on
smartphones and other mobile devices. 4) Transfer :
Account can be automatically funded from a traditional
bank account via electronic transfer. Most direct banks
offer unlimited transfer at no cost. they will also accept
direct deposits and withdrawals. 5) Easy to Use :
Online accounts are easy to set up and require no
more information than a traditional bank account.
Many offer the option of inputting your data online or
downloading the form and mailing them in. In the light
of ablve advantages we can easily say that internet
only bank will survive.
CASE STUDY - 05
CUSTOMER RELATIONSHIP MANAGEMENT
A BOON FOR FINANCIAL SERVICES
Qst - 1
How have customer relationship
management systems changed how
organizations can service their
customers?
Ans - 01
A customer relationship management
system allows a company to have a
consolidated, sharper, and more
consistent, unified view of its customers. A
customer relationship management
system enables a company to use the
sharper customer profiles to cross market
its products and offer new and existing
products to those customers most likely to
purchase its products. A customer
relationship management system enables
a company to provide end-to-end
customer care. Additionally, by using a
central data repository, the company
reduces data redundancy, increases
flexibility, and improves data accuracy.
One aspect of CRM use is that the
marketing and sales staffs have more data
about each customer because of the
automation of sales and the ability of the
company to analyze that data. Companies
using customer relationship management
systems have more flexibility because
knowledge about each customer is
available when needed.
Qst - 2
How have the organizations described here
obtained value from CRM systems?
Ans - 02
Meriwest consolidated its customer
account information into a more
meaningful, consistent view of the
customer. Meriwest used its CRM system
to target customers who were more prone
to purchase a specific service, such as a
certificate of deposit. As a result of its
CRM, at the end of 2001, deposits were up
by 27 percent, and customer loans were
up 46 percent.
Metlife used its CRM system to
consolidate customer data from its 40 lines
of business. As a result, company
employees can update and view a
customer's file and target products to
specific customers.
P&C Direct uses its data repository to
cross-sell to its customers. Each customer
record contains census data and lifestyle
codes that enable P&C Direct to better
target market its products and services.
CASE STUDY - 06
Qst - 1
Ans - 01
Qst - 1
Ans - 01
Qst - 3
Ans - 03
Employees On
Networks
Unethical
or
email and internet usage?why or why
not?
have a common goal to maximize
company’s wealth.Anything beyond this
goal should not be done during work
hours.
the company will be sued.It is wasting
company’s resources on unnecessary
dispute.
get used to it.The rule will guide they act
properly online when they are working.In
the long run,it helps company to conduct
business efficiency and effectively.Surely
company’s resources is working for
An
effective
email and web use policy
generate
revenue
should include clear guide line what action
Describe
effective
is permitted
and what isan
not,such
as racist
and sexually
explicit
hasweb
to be banned.Any
email
and
use
employee step inside the banned are could
policy
for
a
company.
be fired immediately.Also,managers could
make the policy flexible.They could allow
employee doing non work related legal
online surfing and email during break time
and lunch time with limited speed load.If
they occupied too much speed load,the
regular online traffic will be blocked which
could damage both hardware and software
on company’s server.
company should work based on it,even
include managers because employee will
not be convinced if they see their boss does
personal activities online during work time.
should be kept in privacy as long as it is
legal.Managers do not have the right to ask
employee what they do online during break
time and lunch hour.
employees read non work related
information from their email box and
hardly to find a legitimate email among
hundreds spam
Should managers inform employees that their
web behavior is being monitored?Or should
managers monitor secretly.Why or Why not?
employees that their web behavior is being
monitored.This can avoid employees to use
computer for other purpose.Abuse of
company resources
betheir
avoid.
Avoiding
employee can
using
personal
business,they will more concentrate on
working during their working hours.
secret spy of other agencies so that no
employee dare to steal information from
company.It helps to protect company
privacy
Chapter - 3 Management Information Systems
CASE STUDY - 3
E-COMMERCE, SOUTH KOREAN AND MIDDLE EASTERN STYLE
Qst - 1
What organizational factors describe why South Korea and the Arab Middle East have had such different
experiences in adopting e-commerce?
Ans - 01
The answer to this question can be found in the differences that exist between the economic and cultural
environments of the two countries. The South Koreans have easy, affordable access to the Internet, and are
quite comfortable using the Internet. The South Korean government is working to advance the use of
technology. Although the South Koreans primarily use the Internet for communication and information, the
government is taking steps to develop a highly secure digital signature system. This should encourage
individuals to shop online more. Additionally, the government is encouraging the use of electronic money and
credit cards.
The Middle East's use of e-commerce sharply contrasts with that of the South Koreans. Few e-commerce sites
exist, and those that do only have about 1000 visitors a day. The cost and availability of technology, high tariffs,
and few credit cards are all reasons why e-commerce is not as successful in the Middle East.
Qst - 2
How would a company's management, organization, and technology have to change to either purchase
or sell goods in South Korea or in the Middle East?
Ans - 02
Students should recognize the influence of government on business. Most of the problems are larger than any
one company can solve. Its management would first have to realize the problems and opportunities, decide how
they would proceed, and develop the organization and technology to proceed. It would certainly need to hire or
train a staff that has the technological skills needed to operate in South Korea or the Middle East. The
organization would need to understand the legal environments in both countries, so that the company could
decide how to operate, what it can purchase, what it can import, what it can sell, and what it can export.
The company could not change the legal environment, but it needs to determine how it can protect itself and its
assets in both countries. In the Middle East, the company should find customers who use credit cards or who
are willing to be taught how to use them. The management, organization, and technology must be well
coordinated to respond to the current situation so it can operate successfully.
In the Middle East, organizational factors include the lack of computers at many companies and the concomitant
lack of computer skills by many employees. The organizations will need to train their employees and the
employees of their suppliers and customers. Such companies also need employees who can develop the
needed software, or modify it, for use in South Korea and the Middle East.
Chapter - 14 Management Information Systems
CASE STUDY - 4
TOYOTA'S DATA SPINS OUT OF CONTROL
Qst - 1
What management and organizational problems were created by poor data quality at Toyota?
Ans - 01
Management relied on the Corporate Customer Information System to provide quality, reliable, and accurate information
about service problems, warranty, roadside assistance, prepaid maintenance, and other service requests. The problem
was that the data were, in many cases, erroneous. The erroneous data led to increased costs, inefficiency, and an image
problem. Although Toyota's culture and business processes are built on quality and control, its data quality problem
necessitated improvements in performance and organizational change.
Qst - 2
What management decisions had to be made to solve this problem?
Ans - 02
Toyota's customer data were stored in 15 databases, resulting in inconsistent data. In an effort to improve
quality and decrease the amount of time required to access customer data, management decided that a single
centralized customer database was needed. Toyota needed to cleanse the data and ensure data accuracy.
Management needed to establish standards for
The next stage of development was the arrival of internet-only banks
that offered online banking and other financial services without a
network of branch offices. These so-called "virtual" or "direct" banks
were able to pass savings in labor and overhead costs on to their
customers by offering higher interest rates on deposit accounts, lower
loan costs and reduced service fees.
Online banking, at least to some degree, has become the norm for
many simple bank transactions. And that's not a bad thing - the easier
it is for consumers to check their accounts, pay their bills and move
money from one account to the other, the more likely they are to
actually do these things and maintain a more organized financial life.
However, it's important to consider that just because online banking is
a good addition to the world of consumer banking, doesn't necessarily
mean that direct internet banks are a substitute for their brick-andmortar peers in all cases. Here we'll take a look at what internet banks
have to offer - and where they may fall short.
The Evolution of Online Banking
As commercialization of the internet evolved in the early 1990s, traditional brick-and-mortar banks b
The next stage of development was the arrival of internet-only banks
that offered online banking and other financial services without a
network of branch offices. These so-called "virtual" or "direct" banks
were able to pass savings in labor and overhead costs on to their
customers by offering higher interest rates on deposit accounts, lower
loan costs and reduced service fees.
The first fully-functional direct bank insured by the FDIC was the
Security First Network Bank. Based in Atlanta, it began operations on
October 18, 1995. While it was not very profitable before it was bought
out three years later, it proved the feasibility of the virtual bank concept.
(To learn more about the FDIC, see The History Of The FDIC.)
The Benefits of Virtual Banking
Internet only banking will survive because Online banking is also
environmentally friendly. Electronic transmissions require no paper,
reduce vehicle traffic and are virtually pollution-free. They also
eliminate the need for buildings and office equipment.
Online banking has plenty of perks. These include:
1)Convenience 2) Better interest Rates & Low Markups
3)BetterServices 4) Mobility 5) Transfers 6) Easy to Use.
Convenience
Direct banks are open for business any where there is an internet
connection.Other than times when website maintenance is being done,
they are open 24 hours a day, 365 days a year. If internet service is not
available, customer service is normally provided around the clock via
telephone. Real-time account balances and information are available at
the touch of a few buttons. This makes banking faster, easier, more
efficient and even more effective because consumers are able to
always stay on top of their account balances. Updating and maintaining
a direct account is also easier. It takes only minutes to change your
mailing address, order additional checks and check for current interest
rates.
Better Interest Rates & Low Markups :
The lack of significant infrastructure and overhead costs allow direct
banks to pay higher interest rates on savings and charge
lower mortgage and loan rates. Some offer high-yield checking
accounts, high-yield CDs and no-penalty CDs for early withdrawal.
Some accounts can be opened with no minimum deposits and carry no
minimum balance or service fees. (To learn how to choose a bank that
won't charge you unnecessary fees, check out Choose To Beat The
Banks.)
Better Services offers for Customers
Direct banks typically have more robust websites that offer a
comprehensive set of features that may not be found on the websites
of traditional banks. These include functional budgeting and forecasting
tools, financial planning capabilities, investment analysis tools, loan
calculators and equity trading platforms. They also offer free online bill
paying, online tax forms and tax preparation.
Mobility
Online banking now includes mobile capabilities. New applications are
continually being created to expand and improve this capability on
smartphones and other mobile devices.
Transfers
Accounts can be automatically funded from a traditional bank account via electronic transfe
Easy of Use
Online accounts are easy to set up and require no more information than a traditional bank
In the light of above advantages we can easily say that
Internet only bank will survive.
The Drawbacks Virtual Banking
Internet only Banking will not survive because banking exclusively
online also has its share of drawbacks and inconveniences. These
include:
Bank Relationship
A traditional bank provides the opportunity to develop a personal
relationship with that bank. Getting to know the people at your local
branch can be an advantage when you need a loan or a special
service that is not normally offered to the public. A bank manager
usually has some discretion in changing the terms of your account
if your personal circumstances change. They can help you solve
problems such as reversing an undeserved fee or service charge.
Your banker will also get to know you and your unique needs. If you
have a business account, this personal relationship may help if you
need capital to expand. It's easier to get the bank's support if there is
someone who understands your business and can vouch for your
operating plan.
Transaction Issues
Sometimes a face-to-face meeting is required to complete complex
transactions and address complicated problems. A traditional bank can
host meetings and call in experts to solve a specific issue. In addition,
international transactions may be more difficult (or impossible) with
some direct banks.
If you regularly deposit cash, a traditional bank with a drive-through
window may be more practical and efficient. Another potential
drawback is that most direct banks do not have their
own ATM machines. Unless an internet bank has a network alliance
with another bank, you will be charged for your ATM use. (For related
reading on ATMs, see 5 ATM Scams That Can Break The Bank.)
Service Issues
Some direct banks may not offer all the comprehensive financial
services, such as insurance and brokerage accounts, that traditional
banks offer. Traditional banks sometimes offer special services to loyal
customers, such as preferred rates and investment advice at no extra
charge.
In addition, routine services such as notarization and bank signature
guarantee are not available online. These services are required for
many financial and legal transactions.
Security
Direct banks are subject to the same laws and regulations as traditional banks, and accoun
Most banks now make scanned copies of cleared checks available
online, which helps to avoid and identify check fraud. It enables
verification that all checks are signed by you and that dollar amounts
have not been changed. The timely discovery of discrepancies can be
reported and investigated immediately.
Identity theft is a significant concern, but some online banks take this
risk more seriously than others. Before opening an online account,
thoroughly investigate the bank's security policies and protections to
ensure they meet your expectations.
The Bottom Line
The rise of internet banks has increased the competition for your
banking business. With both online and brick-and-mortar banks offer
unique benefits and drawbacks, it may not be wise to do your banking
exclusively with either option. While it's not possible for everyone, the
best play may be to split your banking between both in-store and online
services and enjoy the conveniences and savings of internet banks
while maintaining the customer service and personal relationships a
physical branch can provide.
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Mission Statement
A written declaration of an organization's core purpose and
focus that normally remains unchanged over time. Properly
crafted mission statements (1) serve as filters to separate
what is important from what is not, (2) clearly state
which markets will be served and how, and (3) communicate
a sense of intended direction to the entire organization.
A mission is different from a vision in that the former is the
cause and the latter is the effect; a mission is some thing to
be accomp lished whereas a vision is something to be pursued
for that acco mplishment. Also called company
mission,corporate mission,or corporate purpose.
A mission statement is a statement of the purpose of a c
ompany ororganization that distinguishes from other
similar businesses. The mission statement guides the
actions of the organization, spell out its overall
goal,provide a path, & guide decision-making. It provides
"the framework or context with in which company's
strategies are formulated. A normalmission statement is
usually consisting of 200 to 300 words.
Components of a good
mission statement:
An ideal mission statement has the following nine
components; a missionstatement is called a good
statement if it is consisting of all or maximum
of these components.
1: customer:
The first opponent of firm’s mission is the customer.
The mission
shoulddeclare who are the customers of the compa
ny for whom the firm isoperating. And to take care of
them in its operations.
2: Product:
The mission of a business also focuses on
the products/services of the firm.What are the major
products and whether they are according to the
needsand wants of the target customers?Mission
statement should clearly identify the products.
3: Market:
Another important component of the company’s mis
sion is the targetmarket. It should through some ligh
t/identify the target market of thecompany. The
target market of the company is the geographical
boundariesin which the company is or is willing to op
erate and deliver itsproduct/services.
4: Technology:
An ideal mission statement also declares the
technology of the
company.What technology the company is using an
d what are the methods of operation and process.
Or in general, how the flow of value chain is
occurringin the company.
5: Self concept:
The firm distinctive competence or major competitive
advantage.
8. Concern of public image
Is the firm responsive to social, community and environmental
concerns?
9. Concern of employees
Strategic management:
Strategic management is an art and science of
formulating, implementing and evaluatingcross functional
decisions that enables an organization to achieve its
goals and objectives.A cross functional decision mean a
plan that involves all of the functional departments of
theorganization.This definition of strategic management
shows that there are three stages of or steps in str.
mgt.that is formulating, implementing and evaluation.
1:- Formulating:
In this step the upper mgt creates vision. mission and
long term objectives for the org.vision and mission are
the purpose of the org and have no boundaries, while
long termobjectives are limited to a specific boundaries.
these long term objectives are usually for aduration up to
on to five years. Once these are developed, the
management then develop aplan of action for achieving
these objectives, this plan is known as strategy. this
strategy is thenpassed to the functional departments and
the next phase (implementation) begins.
2:- Implementation phase:
in this stage the long term objectives are divided into
short term (usually annual)objectives and planes are
formulated for them, these annual planes are known as
policies. theannual objectives are further divided into
functional and departmental objectives and areassigned
to concerned department. policy formulation also
involves resources planning,procedures planning and
formulation of rules and regulations.
3:- Evaluating:
In strategic management, you have to constantly
evaluate what is happening in your company, and if any
of the steps you have taken are effective or simply
hindering your companyfrom making progress. If the
latter is true, you will then need to reevaluate and
establish a newset of measures.
competitive advantage:
Competitive advantage is defined as the strategic
advantage one business entity has over its rival entities
within its competitive industry. Achieving competitive
advantage strengthens and positions a business
better within the business environment.competitive
advantage can be achieved through cost leader
ship or through differentiation in price sensitive
markets, reducing the price can increase
customer base, but it is not good practice to reduce
your profit margin for price reduction, the best approach
is to reduce your cost (achieve cost leader ship) to
reduce prices.however in some markets price reduction
do not work, in this case you have to go for
productdifferentiation and uniqueness. a company can
go for product differentiation if it has thefollowing: 1- your
skills and your R&D must be able to do it 2-you must
have enough financial resources 3-there should be
proper laws so that your competitors would not be able to
copy your productand you get enough time to skim the
market.both of these situations can be describe by the
following diagram
There are nine components which the strategist thinks are
essential in mission statement. Withthese nine ingredients
consider as the best mission statement.
1. Customer
Mission Statement should include answer the question´ Who
are firm customers?´
2. Products and Services
What are the firm¶s major product and services?
3. Markets
Define the markets in which the firm competing.
4. Technology
Define the technology which the firm using for running their
business.
5. Concern of survival, growth and profitability
Is the firm committed to growth and financial soundness?
6. Philosophy
The basic, belief, values, aspiration and ethical priorities of the
firm.
7. Self concept
The firm distinctive competence or major competitive
advantage.
8. Concern of public image
Is the firm responsive to social, community and environmental
concerns?
9. Concern of employees
A financial statement is the lifeblood of any business. You rely on these financial
statements to know the condition, performance and ability to efficiently sustain past
and future operations of a particular business. But how do you read the things?!
SEPL - Security Paper Ltd. - Company Analysis - 22-04-2014
Company Symbol
SEPL
Company Name
Security Paper Ltd.
Sector
Forestry (Paper and Board)
Avg EPS
Rs 9.78
Average of past year end EPS's
Sector Average
Rs 6.20
Sector average of the above
Avg EPS FV
Rs 69.65
Fair Value (DCF) based on average of past year-end EPS's
EPS
Rs 6.02
Last four quarters EPS
Sector Average
Rs 7.49
Sector average of the above
EPS FV
Rs 42.88
Fair Value (DCF) based on last four quarters EPS
Current Price
Rs 72.28
Last closing stock price
Updated
Apr-14 Data Month/Year
Div
Rs 5.50
Total dividend paid during last four quarters
Sector Average
Rs 2.83
Sector average of the above
Div FV
Rs 39.17
Fair value (DD) based on total dividend paid during last four quarters
Avg Div
Rs 4.18
Average of yearly dividends paid (including currently paid ones)
Sector Average
Rs 2.85
Sector average of the above
Avg Div FV
Rs 29.79
Fair value (DD) based on Average of yearly dividends paid (including current)
Avg
Rs 45.37
Fair value (averaged of other fair values)
Upside
-37.23%
Upside potential (in percentage) based on the above Average.
Div Yield
7.61%
Dividend yield
CASE STUDY - 3
E-COMMERCE, SOUTH KOREAN AND MIDDLE EASTERN
STYLE Korea and the Arab Middle East
South
Qst - 1
have had such different experiences in
adopting e-commerce?
Ans - 01
The answer to this question can be found in the
differen ces that exist between the eco nomic and
cultural environmen ts of the 2 countries.The South
Koreans have easy,affordable access to the Internet,
and are quite comfortableusing internet Their
government is working to advance the use of
technology & taking steps to develop a highly secure
digital signature system. This should encourage
individuals to shop online more . Additionally, the
government is encouraging the use of elect ronic
money and credit cards.
The Middle East's use of e-commerce sharply
contrasts with that of the South Koreans. Few ecommerce sites exist, and those that do only have
about 1000 visitors a day. The cost and availability of
technology, high tariffs, and few credit cards are all
reasons why e-commerce is not as successful in the
Middle East.
Qst - 2
How would a company's management, organization, and
technology have to change to either purchase or sell
goods in South Korea or in the Middle East?
Ans - 02
Students should recognize the influence of
government on business. Most of the problems are
larger than any one company can solve. Its
management would first have to realize the problems
and opportunities, decide how they would proceed,
and develop the organization and technology to
proceed. It would certainly need to hire or train a staff
that has the technological skills needed to operate in
South Korea or the Middle East. The organization
would need to understand the legal environments in
both countries, so that the company could decide how
to operate, what it can purchase, what it can import,
what it can sell, and what it can export.
The company could not change the legal environment,
but it needs to determine how it can protect itself and
its assets in both countries. In the Middle East, the
company should find customers who use credit cards
or who are willing to be taught how to use them. The
management, organization, and technology must be
well coordinated to respond to the current situation so
it can operate successfully.
In the Middle East, organizational factors include the
lack of computers at many companies and the
concomitant lack of computer skills by many
employees. The organizations will need to train their
employees and the employees of their suppliers and
customers. Such companies also need employees
who can develop the needed software, or modify it, for
use in South Korea and the Middle East.
Chapter - 14 Management Information Systems
CASE STUDY - 4
TOYOTA'S DATA SPINS OUT OF CONTROL
Qst - 1
What management and organiza tional
problems were created by poor data quality at
Toyota?
Ans - 01
Management relied on the Corporate Customer
Information System to provide quality, reliable,
and accurate information about service problems,
warranty, roadside assistance, prepaid
maintenance, and other service requests. The
problem was that the data were, in many cases,
erroneous. The erroneous data led to increased
costs, inefficiency, and an image problem.
Although Toyota's culture and business processes
are built on quality and control, its data quality
problem necessitated improvements in
performance and organizational change.
Qst - 2
What management decisions had to be made
to solve this problem?
Ans - 02
Toyota's customer data were stored in 15
databases, resulting in inconsistent data. In
an effort to improve quality and decrease the
amount of time required to access customer
data, management decided that a single
centralized customer database was needed.
Toyota needed to cleanse the data and
ensure data accuracy. Management needed
to establish standards for
Internet only Banking will survive Why ?
Internet only banking will survive because online
banking is alos environmentally friendly. Electronic
transmissions require no paper reduce vehicle traffice
and are virtually pollution free. They also eliminate the
need for buildings and office equipments. Online
banking has plenty of perks. They includes : 1)
Convenience 2) Better interest Rate & Low Markups 3)
Better Services 4) Mobility 5) Transfer 6) Easy to use.
1) Convenience : Direct bank are open for business
any where there is an internet connection they are
open 24 hours a day 365 day a year. If internet service
is not available customer service is normally provided
around the clock via telephone. 2) Better interest rate
& Low Markup : The lack of significant infrastructure
and overhead cost allow direct banks to pay higher
interest rates on savings and charge lower mortgage
and Loans rates. Some offer higher yiel checking
accounts. 3) Mobility : Online banking now includes
mobile capabilities. New applications are continually
being created to expand and improve this capability on
smartphones and other mobile devices. 4) Transfer :
Account can be automatically funded from a traditional
bank account via electronic transfer. Most direct banks
offer unlimited transfer at no cost. they will also accept
direct deposits and withdrawals. 5) Easy to Use :
Online accounts are easy to set up and require no
more information than a traditional bank account.
Many offer the option of inputting your data online or
downloading the form and mailing them in. In the light
of ablve advantages we can easily say that internet
only bank will survive.
CASE STUDY - 05
CUSTOMER RELATIONSHIP MANAGEMENT
A BOON FOR FINANCIAL SERVICES
Qst - 1
How have customer relationship
management systems changed how
organizations can service their
customers?
Ans - 01
A customer relationship management
system allows a company to have a
consolidated, sharper, and more
consistent, unified view of its customers. A
customer relationship management
system enables a company to use the
sharper customer profiles to cross market
its products and offer new and existing
products to those customers most likely to
purchase its products. A customer
relationship management system enables
a company to provide end-to-end
customer care. Additionally, by using a
central data repository, the company
reduces data redundancy, increases
flexibility, and improves data accuracy.
One aspect of CRM use is that the
marketing and sales staffs have more data
about each customer because of the
automation of sales and the ability of the
company to analyze that data. Companies
using customer relationship management
systems have more flexibility because
knowledge about each customer is
available when needed.
Qst - 2
How have the organizations described here
obtained value from CRM systems?
Ans - 02
Meriwest consolidated its customer
account information into a more
meaningful, consistent view of the
customer. Meriwest used its CRM system
to target customers who were more prone
to purchase a specific service, such as a
certificate of deposit. As a result of its
CRM, at the end of 2001, deposits were up
by 27 percent, and customer loans were
up 46 percent.
Metlife used its CRM system to
consolidate customer data from its 40 lines
of business. As a result, company
employees can update and view a
customer's file and target products to
specific customers.
P&C Direct uses its data repository to
cross-sell to its customers. Each customer
record contains census data and lifestyle
codes that enable P&C Direct to better
target market its products and services.
CASE STUDY - 06
Qst - 1
Ans - 01
Qst - 1
Ans - 01
Qst - 3
Ans - 03
Employees On
Networks
Unethical
or
email and internet usage?why or why
not?
have a common goal to maximize
company’s wealth.Anything beyond this
goal should not be done during work
hours.
the company will be sued.It is wasting
company’s resources on unnecessary
dispute.
get used to it.The rule will guide they act
properly online when they are working.In
the long run,it helps company to conduct
business efficiency and effectively.Surely
company’s resources is working for
An
effective
email and web use policy
generate
revenue
should include clear guide line what action
Describe
effective
is permitted
and what isan
not,such
as racist
and sexually
explicit
hasweb
to be banned.Any
and
use
employee step inside the banned are could
policy
for
a
company.
be fired immediately.Also,managers could
make the policy flexible.They could allow
employee doing non work related legal
online surfing and email during break time
and lunch time with limited speed load.If
they occupied too much speed load,the
regular online traffic will be blocked which
could damage both hardware and software
on company’s server.
company should work based on it,even
include managers because employee will
not be convinced if they see their boss does
personal activities online during work time.
should be kept in privacy as long as it is
legal.Managers do not have the right to ask
employee what they do online during break
time and lunch hour.
employees read non work related
information from their email box and
hardly to find a legitimate email among
hundreds spam
Should managers inform employees that their
web behavior is being monitored?Or should
managers monitor secretly.Why or Why not?
employees that their web behavior is being
monitored.This can avoid employees to use
computer for other purpose.Abuse of
company resources
betheir
avoid.
Avoiding
employee can
using
personal
business,they will more concentrate on
working during their working hours.
secret spy of other agencies so that no
employee dare to steal information from
company.It helps to protect company
privacy
Chapter - 3 Management Information Systems
CASE STUDY - 3
E-COMMERCE, SOUTH KOREAN AND MIDDLE EASTERN STYLE
Qst - 1
What organizational factors describe why South Korea and the Arab Middle East have had such different
experiences in adopting e-commerce?
Ans - 01
The answer to this question can be found in the differences that exist between the economic and cultural
environments of the two countries. The South Koreans have easy, affordable access to the Internet, and are
quite comfortable using the Internet. The South Korean government is working to advance the use of
technology. Although the South Koreans primarily use the Internet for communication and information, the
government is taking steps to develop a highly secure digital signature system. This should encourage
individuals to shop online more. Additionally, the government is encouraging the use of electronic money and
credit cards.
The Middle East's use of e-commerce sharply contrasts with that of the South Koreans. Few e-commerce sites
exist, and those that do only have about 1000 visitors a day. The cost and availability of technology, high tariffs,
and few credit cards are all reasons why e-commerce is not as successful in the Middle East.
Qst - 2
How would a company's management, organization, and technology have to change to either purchase
or sell goods in South Korea or in the Middle East?
Ans - 02
Students should recognize the influence of government on business. Most of the problems are larger than any
one company can solve. Its management would first have to realize the problems and opportunities, decide how
they would proceed, and develop the organization and technology to proceed. It would certainly need to hire or
train a staff that has the technological skills needed to operate in South Korea or the Middle East. The
organization would need to understand the legal environments in both countries, so that the company could
decide how to operate, what it can purchase, what it can import, what it can sell, and what it can export.
The company could not change the legal environment, but it needs to determine how it can protect itself and its
assets in both countries. In the Middle East, the company should find customers who use credit cards or who
are willing to be taught how to use them. The management, organization, and technology must be well
coordinated to respond to the current situation so it can operate successfully.
In the Middle East, organizational factors include the lack of computers at many companies and the concomitant
lack of computer skills by many employees. The organizations will need to train their employees and the
employees of their suppliers and customers. Such companies also need employees who can develop the
needed software, or modify it, for use in South Korea and the Middle East.
Chapter - 14 Management Information Systems
CASE STUDY - 4
TOYOTA'S DATA SPINS OUT OF CONTROL
Qst - 1
What management and organizational problems were created by poor data quality at Toyota?
Ans - 01
Management relied on the Corporate Customer Information System to provide quality, reliable, and accurate information
about service problems, warranty, roadside assistance, prepaid maintenance, and other service requests. The problem
was that the data were, in many cases, erroneous. The erroneous data led to increased costs, inefficiency, and an image
problem. Although Toyota's culture and business processes are built on quality and control, its data quality problem
necessitated improvements in performance and organizational change.
Qst - 2
What management decisions had to be made to solve this problem?
Ans - 02
Toyota's customer data were stored in 15 databases, resulting in inconsistent data. In an effort to improve
quality and decrease the amount of time required to access customer data, management decided that a single
centralized customer database was needed. Toyota needed to cleanse the data and ensure data accuracy.
Management needed to establish standards for
The next stage of development was the arrival of internet-only banks
that offered online banking and other financial services without a
network of branch offices. These so-called "virtual" or "direct" banks
were able to pass savings in labor and overhead costs on to their
customers by offering higher interest rates on deposit accounts, lower
loan costs and reduced service fees.
Online banking, at least to some degree, has become the norm for
many simple bank transactions. And that's not a bad thing - the easier
it is for consumers to check their accounts, pay their bills and move
money from one account to the other, the more likely they are to
actually do these things and maintain a more organized financial life.
However, it's important to consider that just because online banking is
a good addition to the world of consumer banking, doesn't necessarily
mean that direct internet banks are a substitute for their brick-andmortar peers in all cases. Here we'll take a look at what internet banks
have to offer - and where they may fall short.
The Evolution of Online Banking
As commercialization of the internet evolved in the early 1990s, traditional brick-and-mortar banks b
The next stage of development was the arrival of internet-only banks
that offered online banking and other financial services without a
network of branch offices. These so-called "virtual" or "direct" banks
were able to pass savings in labor and overhead costs on to their
customers by offering higher interest rates on deposit accounts, lower
loan costs and reduced service fees.
The first fully-functional direct bank insured by the FDIC was the
Security First Network Bank. Based in Atlanta, it began operations on
October 18, 1995. While it was not very profitable before it was bought
out three years later, it proved the feasibility of the virtual bank concept.
(To learn more about the FDIC, see The History Of The FDIC.)
The Benefits of Virtual Banking
Internet only banking will survive because Online banking is also
environmentally friendly. Electronic transmissions require no paper,
reduce vehicle traffic and are virtually pollution-free. They also
eliminate the need for buildings and office equipment.
Online banking has plenty of perks. These include:
1)Convenience 2) Better interest Rates & Low Markups
3)BetterServices 4) Mobility 5) Transfers 6) Easy to Use.
Convenience
Direct banks are open for business any where there is an internet
connection.Other than times when website maintenance is being done,
they are open 24 hours a day, 365 days a year. If internet service is not
available, customer service is normally provided around the clock via
telephone. Real-time account balances and information are available at
the touch of a few buttons. This makes banking faster, easier, more
efficient and even more effective because consumers are able to
always stay on top of their account balances. Updating and maintaining
a direct account is also easier. It takes only minutes to change your
mailing address, order additional checks and check for current interest
rates.
Better Interest Rates & Low Markups :
The lack of significant infrastructure and overhead costs allow direct
banks to pay higher interest rates on savings and charge
lower mortgage and loan rates. Some offer high-yield checking
accounts, high-yield CDs and no-penalty CDs for early withdrawal.
Some accounts can be opened with no minimum deposits and carry no
minimum balance or service fees. (To learn how to choose a bank that
won't charge you unnecessary fees, check out Choose To Beat The
Banks.)
Better Services offers for Customers
Direct banks typically have more robust websites that offer a
comprehensive set of features that may not be found on the websites
of traditional banks. These include functional budgeting and forecasting
tools, financial planning capabilities, investment analysis tools, loan
calculators and equity trading platforms. They also offer free online bill
paying, online tax forms and tax preparation.
Mobility
Online banking now includes mobile capabilities. New applications are
continually being created to expand and improve this capability on
smartphones and other mobile devices.
Transfers
Accounts can be automatically funded from a traditional bank account via electronic transfe
Easy of Use
Online accounts are easy to set up and require no more information than a traditional bank
In the light of above advantages we can easily say that
Internet only bank will survive.
The Drawbacks Virtual Banking
Internet only Banking will not survive because banking exclusively
online also has its share of drawbacks and inconveniences. These
include:
Bank Relationship
A traditional bank provides the opportunity to develop a personal
relationship with that bank. Getting to know the people at your local
branch can be an advantage when you need a loan or a special
service that is not normally offered to the public. A bank manager
usually has some discretion in changing the terms of your account
if your personal circumstances change. They can help you solve
problems such as reversing an undeserved fee or service charge.
Your banker will also get to know you and your unique needs. If you
have a business account, this personal relationship may help if you
need capital to expand. It's easier to get the bank's support if there is
someone who understands your business and can vouch for your
operating plan.
Transaction Issues
Sometimes a face-to-face meeting is required to complete complex
transactions and address complicated problems. A traditional bank can
host meetings and call in experts to solve a specific issue. In addition,
international transactions may be more difficult (or impossible) with
some direct banks.
If you regularly deposit cash, a traditional bank with a drive-through
window may be more practical and efficient. Another potential
drawback is that most direct banks do not have their
own ATM machines. Unless an internet bank has a network alliance
with another bank, you will be charged for your ATM use. (For related
reading on ATMs, see 5 ATM Scams That Can Break The Bank.)
Service Issues
Some direct banks may not offer all the comprehensive financial
services, such as insurance and brokerage accounts, that traditional
banks offer. Traditional banks sometimes offer special services to loyal
customers, such as preferred rates and investment advice at no extra
charge.
In addition, routine services such as notarization and bank signature
guarantee are not available online. These services are required for
many financial and legal transactions.
Security
Direct banks are subject to the same laws and regulations as traditional banks, and accoun
Most banks now make scanned copies of cleared checks available
online, which helps to avoid and identify check fraud. It enables
verification that all checks are signed by you and that dollar amounts
have not been changed. The timely discovery of discrepancies can be
reported and investigated immediately.
Identity theft is a significant concern, but some online banks take this
risk more seriously than others. Before opening an online account,
thoroughly investigate the bank's security policies and protections to
ensure they meet your expectations.
The Bottom Line
The rise of internet banks has increased the competition for your
banking business. With both online and brick-and-mortar banks offer
unique benefits and drawbacks, it may not be wise to do your banking
exclusively with either option. While it's not possible for everyone, the
best play may be to split your banking between both in-store and online
services and enjoy the conveniences and savings of internet banks
while maintaining the customer service and personal relationships a
physical branch can provide.
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Mission Statement
A written declaration of an organization's core purpose and
focus that normally remains unchanged over time. Properly
crafted mission statements (1) serve as filters to separate
what is important from what is not, (2) clearly state
which markets will be served and how, and (3) communicate
a sense of intended direction to the entire organization.
A mission is different from a vision in that the former is the
cause and the latter is the effect; a mission is some thing to
be accomp lished whereas a vision is something to be pursued
for that acco mplishment. Also called company
mission,corporate mission,or corporate purpose.
A mission statement is a statement of the purpose of a c
ompany ororganization that distinguishes from other
similar businesses. The mission statement guides the
actions of the organization, spell out its overall
goal,provide a path, & guide decision-making. It provides
"the framework or context with in which company's
strategies are formulated. A normalmission statement is
usually consisting of 200 to 300 words.
Components of a good
mission statement:
An ideal mission statement has the following nine
components; a missionstatement is called a good
statement if it is consisting of all or maximum
of these components.
1: customer:
The first opponent of firm’s mission is the customer.
The mission
shoulddeclare who are the customers of the compa
ny for whom the firm isoperating. And to take care of
them in its operations.
2: Product:
The mission of a business also focuses on
the products/services of the firm.What are the major
products and whether they are according to the
needsand wants of the target customers?Mission
statement should clearly identify the products.
3: Market:
Another important component of the company’s mis
sion is the targetmarket. It should through some ligh
t/identify the target market of thecompany. The
target market of the company is the geographical
boundariesin which the company is or is willing to op
erate and deliver itsproduct/services.
4: Technology:
An ideal mission statement also declares the
technology of the
company.What technology the company is using an
d what are the methods of operation and process.
Or in general, how the flow of value chain is
occurringin the company.
5: Self concept:
The firm distinctive competence or major competitive
advantage.
8. Concern of public image
Is the firm responsive to social, community and environmental
concerns?
9. Concern of employees
Strategic management:
Strategic management is an art and science of
formulating, implementing and evaluatingcross functional
decisions that enables an organization to achieve its
goals and objectives.A cross functional decision mean a
plan that involves all of the functional departments of
theorganization.This definition of strategic management
shows that there are three stages of or steps in str.
mgt.that is formulating, implementing and evaluation.
1:- Formulating:
In this step the upper mgt creates vision. mission and
long term objectives for the org.vision and mission are
the purpose of the org and have no boundaries, while
long termobjectives are limited to a specific boundaries.
these long term objectives are usually for aduration up to
on to five years. Once these are developed, the
management then develop aplan of action for achieving
these objectives, this plan is known as strategy. this
strategy is thenpassed to the functional departments and
the next phase (implementation) begins.
2:- Implementation phase:
in this stage the long term objectives are divided into
short term (usually annual)objectives and planes are
formulated for them, these annual planes are known as
policies. theannual objectives are further divided into
functional and departmental objectives and areassigned
to concerned department. policy formulation also
involves resources planning,procedures planning and
formulation of rules and regulations.
3:- Evaluating:
In strategic management, you have to constantly
evaluate what is happening in your company, and if any
of the steps you have taken are effective or simply
hindering your companyfrom making progress. If the
latter is true, you will then need to reevaluate and
establish a newset of measures.
competitive advantage:
Competitive advantage is defined as the strategic
advantage one business entity has over its rival entities
within its competitive industry. Achieving competitive
advantage strengthens and positions a business
better within the business environment.competitive
advantage can be achieved through cost leader
ship or through differentiation in price sensitive
markets, reducing the price can increase
customer base, but it is not good practice to reduce
your profit margin for price reduction, the best approach
is to reduce your cost (achieve cost leader ship) to
reduce prices.however in some markets price reduction
do not work, in this case you have to go for
productdifferentiation and uniqueness. a company can
go for product differentiation if it has thefollowing: 1- your
skills and your R&D must be able to do it 2-you must
have enough financial resources 3-there should be
proper laws so that your competitors would not be able to
copy your productand you get enough time to skim the
market.both of these situations can be describe by the
following diagram
There are nine components which the strategist thinks are
essential in mission statement. Withthese nine ingredients
consider as the best mission statement.
1. Customer
Mission Statement should include answer the question´ Who
are firm customers?´
2. Products and Services
What are the firm¶s major product and services?
3. Markets
Define the markets in which the firm competing.
4. Technology
Define the technology which the firm using for running their
business.
5. Concern of survival, growth and profitability
Is the firm committed to growth and financial soundness?
6. Philosophy
The basic, belief, values, aspiration and ethical priorities of the
firm.
7. Self concept
The firm distinctive competence or major competitive
advantage.
8. Concern of public image
Is the firm responsive to social, community and environmental
concerns?
9. Concern of employees
A financial statement is the lifeblood of any business. You rely on these financial
statements to know the condition, performance and ability to efficiently sustain past
and future operations of a particular business. But how do you read the things?!
SEPL - Security Paper Ltd. - Company Analysis - 22-04-2014
Company Symbol
SEPL
Company Name
Security Paper Ltd.
Sector
Forestry (Paper and Board)
Avg EPS
Rs 9.78
Average of past year end EPS's
Sector Average
Rs 6.20
Sector average of the above
Avg EPS FV
Rs 69.65
Fair Value (DCF) based on average of past year-end EPS's
EPS
Rs 6.02
Last four quarters EPS
Sector Average
Rs 7.49
Sector average of the above
EPS FV
Rs 42.88
Fair Value (DCF) based on last four quarters EPS
Current Price
Rs 72.28
Last closing stock price
Updated
Apr-14 Data Month/Year
Div
Rs 5.50
Total dividend paid during last four quarters
Sector Average
Rs 2.83
Sector average of the above
Div FV
Rs 39.17
Fair value (DD) based on total dividend paid during last four quarters
Avg Div
Rs 4.18
Average of yearly dividends paid (including currently paid ones)
Sector Average
Rs 2.85
Sector average of the above
Avg Div FV
Rs 29.79
Fair value (DD) based on Average of yearly dividends paid (including current)
Avg
Rs 45.37
Fair value (averaged of other fair values)
Upside
-37.23%
Upside potential (in percentage) based on the above Average.
Div Yield
7.61%
Dividend yield
