Case Study

Presentation
INFORMATION
SYSTEMS AT MRS.
FIELDS’ COOKIES

ARCHANA | ARITRA | LOKESH | DEBANJAN |DEBLEENA |DINA |DIVYA

 OVERVIEW
 Specialty: Selling fresh chocolate chip cookies
 Owners: Debbi and Randy Field
 Headquarters: Park City, Utah
 Geographical Presence: 500 stores in 37 states
 System Used: Information System that helps the
staff in decision making
 System Objective: Waste minimization, demand
satisfaction
 System Input: Comparable day sales data, type of
day: normal/ school/ holiday
 System Output: Number of batches to be mixed,
estimated number of customers
COMPLEXITY, FORMALIZATION & CENTRALIZATION

 In Mrs. Fields’ Cookies company every store has a

CENTRALIZATION
The degree to which decision-making authority is concentrated at higher levels in an organization.

different kind of software according to their demand

 It is operated out of their headquarters in Park City, Utah.
 It has a centralized organization structure. Parameter Centralization Decentralization
For
Comparison

Decision Slower Comparatively

Making faster

Implementatio Large sized firms

n Small sized firms

Authority Senior Middle and lower

 FORMALIZATION
• The extent to which an organization’s policies, procedures, job descriptions, and rules are
written and explicitly articulated.

 All the stores are formalized with IT systems for all operations.
 The system tells the employees how many batches of cookies dough to mix each day or
when to mix them in order to minimize leftover.
 The system also provides tips on suggestive selling if the average sales is too low.
 Mrs. Fields’ Cookies has a formal organization structure.
COMPLEXITY
The degree to which multiple entities of an organization differentiate among
themselves.

 Though the information system is quite complex the organizational structure has
low complexity.
 There is no divisional or functional segmentation in this organization.
 Centrally controlled computer system manages everything across all the stores.
 Mrs. Fields’ Cookies has a relatively flat organization structure.
HOW IS MRS.
FIELDS COOKIES
DIFFERENT FROM
OTHERS?

Vertical differentiation: It refers to the location of decision-making responsibilities within a structure (that is,
centralization or decentralization) and also to the number of layers in a hierarchy (that is, whether the
organizational structure is tall or flat). Mrs. field's cookies follows flat and centralized structure.

Formalization: Every company has to follow certain rules and regulations to run their operations. If the size of
the company increases then the rules and regulations has to be changed as per the changing conditions.

Decentralization: Mrs. Fields cookies follows centralized version of decision making in their operations. But
decentralized decision making system will help the company in the long run.
 WHAT IS AN INFORMATION SYSTEM?
An information system (IS) is an organizational system designed to

Collect Process

Store Distribut
e

information which in turn contributes to knowledge and facilitates decision making.

WHY INFORMATION SYSTEM IS USEFUL IN
AN ORGANIZATION?
 Provides information readily to company decision makers
 Helps in data collection from everyday operations in the
company
 Analyses, forecasts and suggests alternatives to promote
business growth
 Manages vast business operations around the world
 Helps streamline the interdependent processes of
 Serves as a source of vast knowledge for the employees various departments
 Frees the employees and managers from redundant tasks  Serves as a knowledge base for the employees
 Helps in predicting and setting the sales target,
and also giving tips to improve sales
 Connects to the central computer for the owner
to monitor and manages the functioning of the
outlets
 Facilitates in managing the widely dispersed
operation of Mrs. Fields’ Cookies.
 Yes, this system helps the stores in making the
following decisions:
Do Information  Plans their day by making decisions

Systems lead to  Sets out the sales goals

 Offers suggestions on how to improve sales
better store-level  Gives the managers more time for selling
than doing paperwork
decisions?  Helps in utilizing the staff in an optimum
manner
 Helps in selecting potential employees
 Gives instant access to owners about every
store operations
 Provides an inbuilt repair program
NEGATIVE STORE
LEVEL
 Heavy cost of installation/repairs​
REPERCUSSIONS
 Cost of training​
OF THIS SYSTEM  System failure​
 Unanticipated errors not known​
 Breaches of security​
 Over-reliance on computers lead to
reduction in work efficiency
 Reduced physical audits​
 Effective flow of information
Effective allocation of work
 Who makes the decisions with regards to the
 Is there room for employees to think beyond the unprocessed secondary information?
system functions?
 Will a load of information on computerized systems
 Are the individual’s growth in the organization cause even decision making with uneven results?
seemingly less significant here?

VIRTUAL POWER
PLAY

Ensures better control over qualitative and Facilitates a flatter hierarchy

quantitative benchmarks
 Does lesser delegation of authority make top
 Can customer experience be gauged completely via management more approachable?
quantifying data?
 Does the ‘even if she isn’t there, she’s there’ approach
 Can the business approach be tailored contextually? project more influence than is effectively possible?
THANK YOU