MULTIMEDIA UNIVERSITY OF KENYA

FACULTY OF BUSINESS AND LAW

BACHELOR OF COMMERCE (GROUP A)
SECOND YEAR SECOND SEMESTER
UNIT: MANAGEMENT INFORMATION SYSTEM
NAME: MUHIA DUNSON NGUGI : BUS-241-180/2014

MACHARIA NICKSON : BUS-241-160/2014

THIONG’O NYAMBURA :BUS-241-135/2014

KELVIN KINYUA BUS-241-165/2014

INTRODUCTION.

Name of the business: GOLDHUT PROPERTY AGENCY

The business under my case is an enterprise been run by young entrepreneurs whose net worth is
slightly above 200,000 Kenyan shillings it has ventured in the real estate industry in Rongai. They decide
to venture in the real estate industry due to the high population growth rate the town is currently
experiencing.

They are agents who act on behalf of landlord in many areas like:

 Collection of rent from tenants

 Maintenance of the buildings
 Finding new tenants for vacant houses
 Pay off government taxes and levies imposed on the houses or building
 With all this transactions they maintain a manual data entry system in every transaction which they
review and process manually on a daily basis so as to arrive to a financial report that is detailed. The
detailed report is used as information in the business where by decisions on money matters and crucial
business actions are taken; on maybe the amount of houses available or required; are taken under the
interpretation of the information received from the manually processed raw data.

BUSINESS OBJECTIVE

Below are some of the objectives of the business:

1) To be effective and efficient to their 13 landlords and 102 tenants by meeting their needs on
time and making sure they get the best service.
2) To serve everyone with no much discrimination.
3) To be the best agent in Rongai and in the entire real estate industry.
4) To maximize their profits and returns on every investment they undertake.
5) They want to expand their operations to affect two thirds of the counties present in the country.
6) They want to give back to the society by establishing a social responsibility structure that cuts
across all gender and all people with different characteristics.

My opinion.
The business is functioning fairly with their current way of maintaining an information system but they
might do a bit better if they invested on maintaining an electronic information system like a
transactional processing information system to be able to capture and record any transactional
information that is important that will help in decisive decision making ,also a management information
system will help in meeting their future expectation of the business i.e. their goal to expand their
operations whereby they will be handling a more large personnel and also more consumers hence this
system will clearly help the managers in controlling and directing the business effectively. They should
also consider a system that will help them market their services online; below are reasons why they
should adopt the above electronic information system

1) Manual processing of information is tedious compared to an electronic information system. A

lot of paper work, filing and manual processing data tend to be cumbersome if one clearly wants
to be effective in their work which can be made easier by them investing in electronic devices
e.g. a personal computer that will help in simple computation.
2) Efficiency and Effectiveness of the systems of what is produced divided by what is consumed to
the extent to which a system attains its goals i.e. decision made under the interpretation of
information that has minimal errors like simple mathematical computations is more efficient.
3) Time consciousness – this employs that electronic processing of data to information is faster
than manual processing of data this enhances the time for decision making which helps counter
problems that just mysteriously arise with the ever changing business world.
4) Helps in better storage of information more safely compared to manual processing where if one
receipt is lost they may experience a stalemate but when using electronic system they may
 backup their information better. They will also be able to replace files with just one personal
computer to store this data and information.

With the presentation of these ideas to the entrepreneurs they readily accepted them but argued
out that all this will come to an expense of the following:

1) Electricity is one of the expenses they will have to incur to run the electronic devices and
also if they were to consider the ideas then if there was a shortage of electricity then the
processing will be delayed.
2) The buying and maintenance of these electronic devices is a bit straining to a young
business like the one stated above this is because the extra expense will bring the business’s
profits down/lower than expected and this is a risk they are not ready to take.
3) The electronic system will also require a skilled employee to run the system hence the
business will result to employing another person who will require a salary which will drain
the business’s profits.

Nevertheless the business should weigh the pros and the cons of the systems and implement
the better of the two systems so that the system can be a means to an end of achieving the
organizations goals.