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Phar-Mor

In: Business and Management

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EVIDENCE FORM

I have read UB’s policy on cheating and plagiarism (see UB’s website for more information). I have done all work myself with no HELP from anybody or any source. Please put your name in the line below to certify the above statement.
____ Huang ___________Xinlu____ Last First

MAX points 40

Start time__5:25__ End time__8:15____

Below ..TIME TAKEN to COMPLETE The EXAM(not including DFD time) ___150mins_________

GENERIC ANSWERS/ANALYSIS WILL NOT GET CREDIT

* Use double space & 11 or 12 font

* BE VERY SPECIFIC (Quality is important than quantity, but do not shortchange your answers) * TO GET CREDIT YOUR ANALYSIS MUST FOLLOW CONCEPTS IN THE BOOK & READINGS. * DO NOT GO OFF ON generic TANGENTS. * MAKE reasonable ASSUMPTIONS IF YOU NEED TO and list them

READ CAREFULLY AND ALLOCATE YOUR TIME WISELY!!!!!

TO BE SUBMITTED:

Create a zip file and include the following:

* This Exam with answers (including Evidence FORM) * Excel spreadsheet related to Q7 Q#1 Multiple Choice: (3 points) 1. A supervisor having to decide when to reorder supplies or how best to allocate personnel for the completion of the project is an example of a _________ decision. a. structured b. unstructured c. semi-structured d. none of the above 2. Each team has only one home stadium and each stadium can have many home teams. This is an example of what kind of relationship between TEAM and STADIUM? a. 1:1 b. 1:m c. m:n d. m:1 3 Amazing electronic ( a fictious company), an electronic retailer, recently declared bankruptcy and went out of business. This would, typically,

A) increase Buyer’s power B) increase Supplier’s power C) make it easy for others to enter the electronic market D) None of the above

Q2. Wendy’s International, a hamburger chain, is losing sales to competition. They know they are in maturing business where competition (McDonald, Burger King, Roy Rogers etc.) is very high and buyer’s power is high. Currently Wendy gets order by phone and by walk-in customers. They have added chicken to their menu but that has not helped in increasing sales. They have hired you help them analyze their situation and suggest a course of action to revamp their business and maintain market position. How can information technology (IT) be used for strategic advantage? Generic answer will not get much credit. Must relate concepts to Wendy’s situation.(5 points) In order to find the best IT strategy for Wendy’s; I first analyze Wendy’s current situation by applying Porter’s competitive forces model. * The fast food industry is very competitive; all Wendy’s main competitors are continuously devising more attractive ways to gain market shares. * There are always new companies entering this market since the entry barrier is relative low for fast food industry; although Wendy’s have advantages in their brand recognition and experience, they still have to be aware of the new entrants. * Wendy’s already started to look for substitutes, chicken in this case, to lower their costs and attract customers, but it seems not to be a big help in increasing sales. * The buyers’ power is high since product differentiation is limited. All the companies in the fast food industry are selling similar products: chicken sandwiches, beef sandwiches, fresh salad, fries and so on. Customers can always turn to other hamburger stores if Wendy’s is no longer attractive to them. * The case doesn’t mention about Wendy’s suppliers but suppliers’ power can have a significant impact on Wendy’s profits. An efficient supply chain can help to lower inventory costs and increase product quality. Based on these analyses, I will recommend the following strategies for Wendy’s: * Strengthen Customer and Supplier Intimacy. An extended supplier chain management (SCM) system can help to cut inventory costs and allow scalability. Just in time inventory approach would be beneficial in maintaining freshness and cutting costs as well. A customer relation management (CRM) system can help in market basket analysis, retaining the most profitable customers, providing better service to existing customers, and increasing sales. * Product Differentiation. I will recommend Wendy’s to use an online ordering system which allows the customers to order customized burgers on their preference. An online ordering system can also improve the efficiency and the effectiveness of Wendy’s operation and increase sales in the meantime. Q3. The Bancroft Chemical is required by law to store information on its employee' medical histories for 25 years. Currently, employee medical claim forms are stored in files in document retention centers, where they are difficult to access. John Port, plant manager wanted some medical information on an employee but got two different reports for the same employee. It turned out that there were two employees with the same last name. Recently some medical information was leaked and the employee was denied insurance due to pre existing conditions. You have been hired by the Bancroft Company to help them solve this problem explain how information technology (be specific about which one) can help Bancroft fulfill its requirements and provide quick access to information. (5 Points)

I will recommend Bancroft Chemical to use a cloud-based database to solve its current problem.
“Cloud Computing refers to a model of computing that provides access to a shared pool of computing resources over a network.” (Laudon and Laudon, Management Information Systems-Managing the digital firm, Twelfth edition, Pg 170) The biggest advantage of cloud computing is in storage. Bancroft now stores all the employees’ medical histories in files in the document retention centers and it is required by law to store those records for 25 years. Consider about the massive amount of files, the place needed for storage, and the difficulties in accessing files, cloud computing can be the best solution since all resources like employees’ medical record can be storage over the network; in other word, storage costs can be saved.
An employee medical record database should be established for Bancroft Chemical. In the process of establishing database, duplicate reports, incomplete reports, or inconsistent reports should be removed. Although it may take a lot of time and effort to set up the database and to migrate all the data to the cloud, it will help to improve the efficiency and effectiveness of Bancroft Chemical in the long-term. Bancroft Chemical also mentioned that some recent medical information was leaked and since the employees’ medical histories are sensitive personal data, I will recommend Bancroft Chemical to use a private cloud computing system. “A private cloud is a proprietary network or a data center that ties together servers, storage, netweorks, data, and applications as a set of virtualized services that are shared by uses inside a company.” (Laudon and Laudon, Management Information Systems-Managing the digital firm, Twelfth edition, Pg 183) Bancroft Chemical can also migrate some less critical data to the cloud at first and then some more sensitive records as clouds become more secure.

Q#4: This DFD question relates to we.Com a graduate university in Glendale California. They are revamping (automating) their system completely from student inquiry to student graduation. One of the processes identified is:

Student Registration Process…This is the process where student register for available classes in a given semester.

Draw the context diagram for the above process.

(5 points)

Open-courses
1.0
Verify availability

Confirmation-letter Course File | Student master File | Student-details
Course-enrollment
Course-details
2.0
Enroll student
Registration
3.0
Confirm registration
Accepted/Rejected-selections
Requested-courses
Student

(Laudon and Laudon, Management Information Systems-Managing the digital firm, Twelfth edition, Pg 502)

Q#5. Given the following table: WROTE (AuthorNum, AuhtorLast_Name, ISBN_Number, BOOK_TITLE) (Parts A, B and C…7 POINTS) Sample data is provided below: AuthorNum | AuthorLast | ISBN_Number | BOOK_TITLE | BOOK_TYPE | 1 | Morrison | 112-O-123 | Intro to MIS | MIS | 1 | Morrison | 113-O-114 | DBMS | Database | 2 | Smith | 112-O-123 | Intro to MIS | MIS | 3 | Johnson | 223-P-111 | The Edge of Night | Drama | 4 | Lee | 221-P-112 | ABC of Systems | Systems | 4 | Lee | 442-LP | Project Management | Proj. Mgt | 4 | Lee | 441-99-089 | ABC of ERP | ERP | A)Convert this table into TWO tables so that some of the data redundancy is eliminated (minimized). Clearly identify tables and their attributes. Identify primary key of tables created in part a (give reasons for your selection). Do not create any sequence key To remove redundancy we will create two tables as: AUTHOR | AuthorNum | AuthorLast | 1 | Morrison | 2 | Smith | 3 | Johnson | 4 | Lee | AUTHOR (AuthorNum, AuthorLast)
PK: AuthorNum

Author Number is the primary key since it is unique identifier for all the information in any row of the table and this primary key cannot be duplicated BOOK | AuthorNum | ISBN_Number | BOOK_TITLE | BOOK_TYPE | 1 | 112-O-123 | Intro to MIS | MIS | 1 | 113-O-114 | DBMS | Database | 2 | 112-O-123 | Intro to MIS | MIS | 3 | 223-P-111 | The Edge of Night | Drama | 4 | 221-P-112 | ABC of Systems | Systems | 4 | 442-LP | Project Management | Proj. Mgt | 4 | 441-99-089 | ABC of ERP | ERP |

BOOK (AuthorNum, ISBN_Number, BOOK_TITLE, BOOK_TYPE)
PK: (AuthorNum, ISBN_Number)
FK: AuthorNum references AUTHOR

ISBN_Number and AuthorNum can together be the primary key since both of them have duplicates and they become unique when combined together. For example, Smith and Morrison are authors of Intro to MIS, the ISBN alone duplicated for these two rows of data; but if we combine the author number and the ISBN as 1-112-O-123 for Morrison and 2-112-O-123 for Smith, then it will be the unique identifier for the table.
Author Number can still be the foreign key since it is the primary key for Table_Author and is included in Table_Book as well; which makes it an essential lookup field to look up data about the author.
B) Identify the nature of relationship (1:1, 1:m or m:n) between the tables created in part A; justify your answer

ERD:

Relationship between AUTHOR and BOOK is many:many.
Assume one author can wrote many books and a book can have more than one author, therefore, it is a many-to-many relationship.
AUTHOR <<--------(m:n)---->>BOOK

C) Write an SQL query to give book_titles of MIS books written by Morrison.

SELECT BOOK_TITLE
FROM BOOK
WHERE AuthorLast = Morrison and Book_TYPE = MIS

Q#6. Mr. Smith, an IT specialist at Proctor and Gamble (P&G), a consumer product company, has recently been demoted because of surfing the internet on company's time. Mr. Smith is obviously very unhappy. Discuss ethical issues involved and some of the threats company should be aware of from Mr. Smith?
(5 points)

Ethical issues are involved for both Mr. Smith and the P&G Company.
On the employees’ side, Mr. Smith is creating ethical problems for the protection of intellectual property of his company. It is irresponsible for Mr. Smith to browse non-work related website on company’s time. There are potential risks of receiving web bugs, which could be harmful to the users’ computer and database. The corporation’s intellectual property will be at risk if computer crime or computer abuse occurs. Employees should be notified of those risks and stay away from any websites that may contain harmful information to the company.
On the company’s side, P&G is creating ethical problems for the protection or individual privacy. It is obvious that P&G is using employee monitoring to check employees’ web usage and created a profile about individuals and their behaviors. Although the company may have the rights to do so, it should notify all of its employees before it applies employee monitoring; a written ethical code may be helpful in this case.

Q # 7 Palm City Police Department
5 points
(post your excel file in SAKAI with Final Exam) The Palm City Police Department has eight defined precincts. The police station in each precinct has primary responsibility for all activities in its precinct area. The table below lists the current population of each precinct, the number of violent crimes committed in each precinct and the number of officers assigned to each precinct. The department has established a goal of equalizing access to police services. a. Build a spreadsheet to perform the analysis described below. Currently, no funds are available to hire additional officers. Based on the citywide ratios, the department has decided to develop a plan to shift resources as needed in order to ensure that no precinct has more than 1,100 residents per police officer and no precinct has more than seven violent crimes per police officer. The department will transfer officers from precincts that easily meet these goals to precincts that violate one or both of these ratios. Use "goal seeking" on your spreadsheet to move police officers between precincts until the goals are met. You can use the “Goal Seeking” function in EXCEL to see how many officers would be required to bring each precinct into compliance and then judgmentally reduce officers in precincts that are substantially within the criteria.

b. Perform Goal Seeking analysis and submit a set of results that allow the departments to comply with these ratios and a short memorandum to your instructor summarizing your results.

PRECINCT | POPULATION | VIOLENT CRIME | POLICE OFFICER | | | | | | | Shea Blvd | 96,552 | 318 | 85 | | Lakeland Heights | 99,223 | 582 | 108 | | Sunnyvale | 68432 | 206 | 77 | | Old Town | 47732 | 496 | 55 | | Mountain View | 101,233 | 359 | 82 | | Financial District | 58,102 | 511 | 70 | | Riverdale | 78,903 | 537 | 70 | | Cole Memorial | 75801 | 306 | 82 | |

According to the department policies, no precinct should have more than 1100 residents per police officer and no precinct should have more than seven violent crimes per police officer. Thus, in the Data spreadsheet, the rate of residents per officer and crime per officer are calculated for each precinct; conditional formatting is applied to those calculated rate. As a result, we can see Shea Blvd and Mountain View now have more than 1100 residents per police officer; Old Town and Financial District now have more than seven crimes per police officer; Riverdale has both more than 1100 residents per officer and more than seven crimes per officer.
In first table of Goal Seek1 spreadsheet, the required numbers of police officers to meet the department policies are calculated. Since the number of people can only be whole number, table 2 shows the real number and related rates. The total number of police officer needed is 670 as calculated in table 2; however, only 629 officers are currently available in 8 precincts. Since the department currently has no fund to hire new officers, further human resources allocation will be needed.
Table 3 in the Goal Seek2 spreadsheet shows the number of police officers that can be reduced and still meet the department policies. Lakeland Heights, Sunnyvale, and Cole Memorial can reduce a total of 44 police officers and those 44 officers can relocated to Shea Blvd, Old Town, Mountain View, Financial District, and Riverdale. A total of 626 police officers are really needed to meet the department policies, which means the department can even layoff 3 officers to cut labor costs.

Q#8. LDK hospital is pioneer in treatment of rare diseases. They have a huge research and development department. Mr. Kim, CIO, of LDK has just finished INSS 640 and learned about Business Intelligence (BI) and knowledge management (KM). He realized both BI and KM are important IT tools and can be used effectively for decision making. Mr. Kim wants to extend their usage further and use BI and KM for competitive advantage. Explain to Mr. Kim, how BI and KM can be used in primary activities of global supply chain for competitive advantage?
(5 points)

According to the text book, business intelligence (BI) is defined as a contemporary term for data and software tools for organizing, analyzing, and providing access to data to help managers and other enterprise users make more informed decisions. (Laudon and Laudon, Management Information Systems-Managing the digital firm, Twelfth edition, Pg 49) Knowledge management (KM) refers to the set of business processes developed in an organization to create, store, transfer, and apply knowledge. (Laudon and Laudon, Management Information Systems-Managing the digital firm, Twelfth edition, Pg 419)
Since LDK hospital has a huge research and development department, Knowledge work systems (KWS) will help to support the creation of new knowledge and its integration into the organization. In addition, as long as the LDK hospital is the pioneer in treatment of rare diseases, the Computer-aided design (CAD) systems, which create interactive simulations that behave like the real world, can be a great help in experimenting and researching. A good business intelligence analytic tool can also help the hospital quickly understand the new knowledge and take action.
The usage of KM and BI not only can improve the hospital’s current daily operation, but also can be used in primary activities of global supply chain for competitive advantages. Global supply chain is more challenging and complex than a domestic one. Global supply chains usually span greater geographic distances and time differences than domestic supply chains and have participants from a number of different countries. (Laudon and Laudon, Management Information Systems-Managing the digital firm, Twelfth edition, Pg 347) KM is definitely needed since specific knowledge will be needed for issues like transportation costs, inventory safety stock, and tax regulations. BI can help the manager to make wise decisions in buying the best product at the lowest cost, choosing the worthiest customer, deciding the most suitable size of warehouse, and marketing legally. With the use of KM and BI, the hospital can gain more competitive advantages in supplier’s power and find better products or substitutes.…...

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Phar Mor

...discount chain. Using catchy slogans such as "Phar-Mor power buying gives you Phar-Mor buying power" enabled Monus to take his chain from 1 store to over 300 in 10 short years. This phenomenal growth was attributed to selling a lot of merchandise, purchased at rock bottom prices, to turn a small profit. The success was unusually rapid and even had Sam Walton, of Wal-Mart, worried; and in July 1992 Mickey Monus (President), David Shapira (CEO), and Patrick Finn (CFO) felt like they were on top of the world. They had 25,000 employees and sales of more than $ 3 billion. Accounting issues: Phar-Mor bankruptcy was one of the largest private companies in 1992. The fraud was executed primarily by upper management from the President, CFO, and COO to name a few. Phar-Mor executives embezzled money by using it for personal use and creating the World Basketball League. Phar-Mor accounting issues included falsifying financial statements. The false financial statements were submitted to banks and allowed them to increase the credit line from $435 million to $600 million. Phar-Mor defrauded Corporate Partners, Chemical Bank, Westinghouse Credit Corporation, and Westminster National Bank for a total of $517 million dollars (Mintz & Morris). Mickey Monus, Pat Finn and associates managed to overstate inventory which amazingly increased tremendously each year. Phar-Mor inventory in 1989 was $11 billion and by 1991 it was $153 million. Phar-Mor initial strategy was to mark up......

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