GROUP ASSIGNMENT 2

GROUP MEMBERS
1. JACKSON KYULE 19/04663
2. PRECIOUS AWINO 21/05201
3. Andy Mugata 21/05268
4. Dennis Munene 21/06846
5. Jakes Malachi 21/08101
6. Kevin muthami 21/04972
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ABC General Corporation operates deep discount stores offering housewares, cleaning
supplies, clothing, health and beauty aids, and packaged food, with most items selling for $1. Its
business model calls for keeping costs as low as possible. Although the company uses
information systems (such as a point-of-sale system to track sales at the register), it deploys
them very sparingly to keep expenditures to the minimum. The company has no automated
method for keeping track of inventory at each store. Managers know approximately how many
cases of a particular product the store is supposed to receive when a delivery truck arrives, but
the stores lack technology for scanning the cases or verifying the item count inside the cases.
Merchandise losses from theft or other mishaps have been rising and now represent over 3
percent of total sales. Discuss decisions that have to be made before investing in an information
system solution.

a) Cost
The ABC company should investigate the cost of investing in an information system,
whether cheap or expensive, if its cheap then the company can venture into it.If
expensive and the company not capable it can rather not invest to the information
system.

b) Skilled Personel
The company should ensure that its employees have the relevant skills to operate the
information system solution before investing

c) .An automatic inventory scanner

it should also implement by them, so all items are recorded properly and management has a
better prediction of products in the store, on their path to be delivered, what is needed for the
next day’s delivery and can also be used to track theft and other misbehavior that happen along
the way.

d) .If ABC General Corporation implements ethics, security and a more effective
way to collect data
it will generate more revenue to strive as a business and become more successful.
 e) Create an active and organized database:
Databases are no less than boon for a business, a database created for and from one end of a
business i.e., manufacturing and to the other end i.e., consumers, can be highly beneficial for
keeping time track and time to time updates within an organization.

f) Handling mis-happenings:
Whenever an incident like theft happens, there must be some planned contra-measures
prepared to conduct the task and make the system more secure after that.