70.2K

Verified Solution

Link Copied!

Case 2 Mr. Chan owns Modern Shop in Causeway Bay, offering a selection of mobile phone accessories. To maximize profits, diversified and new products are essential to attract customers. Given the limited shelf space, stock is displayed as soon as it arrives, with limited recording of its arrival, particularly during the peak season. Reordering takes place on an ad-hoc basis when stock appears to be running low or when specific request is made to the owners. The shop opens seven days a week. It has installed surveillance camera at entrance and inside the shop. Currently, it takes cash and electronic payments that the amount is entered by a cashier. Although the owner keeps invoices for accounting and tax purposes, the stock description and price are usually written by hand on the sales invoice. Due to cash flow issues, the owner is keen to extend sales volume for as long as possible throughout the year and therefore now need up-to-date information relating to popular items and quantities sold. The owner is thinking about to install information systems to handle both inventory and sales receipts. Required: a) Why is the current situation potentially having a negative impact on the business? b) How could information systems help the owner run their business more effectively and profitably? c) What kinds of data should these systems capture? Explain. d) What should the owner concern on installation of the information systems

Answer & Explanation Solved by verified expert

See Answer