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DAIRY FARM GROUP- Redesign of Business Systems and Processes -Case analysis

DAIRY FARM GROUP- Redesign of Business Systems and Processes -Case analysis

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Published by binzidd007
DAIRY FARM GROUP- Redesign of
Business Systems and Processes
-Case analysis
DAIRY FARM GROUP- Redesign of
Business Systems and Processes
-Case analysis

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Published by: binzidd007 on Aug 24, 2013
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08/24/2013

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DAIRY FARM GROUP- Redesign of Business Systems and Processes-
Case analysis
Submitted By :Group 1, Section- CGroup Members : Akhil Dattana (2012PGP022) Apurva Verma (2012PGP057)Harsh Kumar (2012PGP127)Kushal Jajoo (2012PGP181)Pratiksha Bhanti (2012PGP084)Sonakshi Behl (2012PGP366)
 
SITUATION OVERVIEW
Dairy Farm Group(DFG) – a major Hong Kong based foodretailer & distributor, operations in major cities of Asia-pacificIn 1997 –
No. of outlets
: 1352 ( supermarkets, convenience stores &drugstores) –
No. of employees
: 45,600 –
Sales
: US$ 6.9 billion –
Profits
: US$ 154 million1997 onwards witnessing a
slump in retail sales
owing to: – Asian Economic Crisis –Increased competition from European and US retail chainsentering Asian marketSuffering from very
low sales-to-profit margins
vis-à-vis itscompetitors (DFG-2.23% vs. A.S Watson Group- 9.22% in ’97)
 
PROBLEMS IDENTIFIED IN DFG’sEXISTING SYSTEMS
Customized applications
in every store without
integration
resulting inhigh maintenance costs Also store systems did not interface with any of DFG’s operational systemsCollation of 
incomplete customer data
hindering DFG from truly sensingand responding to customer needsManagers did not have direct access to database in mainframe- hindereddata analysis for decision making
Information
collected was either incomplete or 
fragmented
and spreadacross varied formats-difficult to analyse and integrate
Unavailability of remote access
affecting performance of field employees 

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