For profit organizations have a basic purpose of operating for profit, whilst not-for-profit organizations purpose of existence is

to pursue a particular social cause.

For-profit organizations raise funds from their shareholders, whilst not-for-profit organizations raise funds from their members or donations from the general public.

For profit organizations may share surplus funds in the form of dividends to their shareholders, whilst not-for profit organizations will use the surplus funds to further achieve its purpose or mission.

i) Time saving: TPS can process large volumes of data within a short period of time.

ii) Operational efficiency: TPS will facilitate the smooth operations of the supermarket and will provide the base for other internal information systems.

iii) Database stability: TPS facilitates database stability in the sense that in the event of network failure, the information will be stored in the database and the transaction will continue when service is restored.

iv) Activity tracking: TPS assists information system managers and staff to keep track of all activities and transactions of the company such as sales and receipts.

v) Access to a wider market: TPS will enable the supermarket to access potential customers to buy the goods when linked to the internet.

vi) Time sharing: TPS facilitates the sharing of the system and its properties among multiple users working on the same transaction at the same time.

vii) Back-up: TPS provides the basic building blocks for other systems in that it has a backup in case of system failure.

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Prevention Mechanisms:

i) User authentication: This is the process that enables the system to ensure and confirm that the person trying to access the system has the right to do so by requesting certain information before the system opens up. It may request a user name and a password.

ii) Encryption: With this any information that is saved or being transmitted is converted from plain code into cipher text or a secret code that can be decrypted using a special code by the recipient of such information.

iii) Restrictions: The company can also restrict physical access to its servers and mainframe computers by some people in order to prevent crimes.

iv) Regular audits: The company must regularly conduct information systems audit on its database management systems to check whether there is an attempted intrusion.

v) Biometric Systems: The company can also install computer systems that use a person’s traits to detect differences by comparing it to stored data.

vi) The public key infrastructure (PKI) is a means which enables the firm’s users of unsecured public network such as an internet to securely and privately exchange data through the use of a private and public crypto- graphic key pair that is obtained and shared through a trusted partner.

vii) Intrusion Detection System: This is a software that monitors systems and network resources and notifies the company’s network security personnel when it senses a possible intrusion in order to put in preventive measures

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Just-In-Time (JIT) refers to an inventory control system that schedules materials to arrive just when they are required for use.

OR

JIT refers to the production system in which processing and movement of materials and goods occur just as they are needed, usually in small batches.                                                                                                                                                      (2 marks)

Advantages of JIT:

i) Lowers Cost: The use of JIT systems lowers the cost of investment required in all forms of inventory control.

ii) Space Savings: JIT systems facilitate the saving of space that will be used to keep stock for long periods of time before they are used.

iii) Customer Satisfaction: There is greater customer satisfaction resulting from higher quality and better state of parts and products for manufacturing.

iv) Avoids waste: JIT Systems helps the company to reduce waste and inefficiency because materials are requested and delivered per usage.

v) Quick response: The flexibility of JIT and the ability to supply materials in small batches enables companies to respond more quickly to market changes.

vi) Reduces obsolescence: JIT reduces inventory obsolescence of materials because of reduced inventory.

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Total Quality management (TQM) is a management philosophy that emphasizes managing the whole organization in order for it to continuously excel in all dimensions of products and services that are important to the customer. OR Total quality management (TQM) is a philosophy involving all employees in an organization in a continual effort to improve quality and achieve customer satisfaction.

i) Management must demonstrate top down commitment and involvement approach to get all employees participating in the implementation of TQM.

ii) Training: Management must provide appropriate training, resources and human resource back-up to facilitate the smooth implementation of TQM.

iii) Measurement factors: Management must determine critical measurement factors that can be used to track the progress of TQM.

iv) Cost of Quality: Management must identify the costs of quality and routes to improvement to enhance the successful implementation of TQM.

v) Team work: Management must institute and emphasize on teamwork to ensure successful implementation of TQM.

vi) Time Span: Management must allow time to see progress of the implementation process and reward contributions for its success.

vii) Management must also spread stories about the successful implementation of TQM to serve as a motivator to employees.

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Strategies for retaining Customers:

i) Maintaining quality standards: A company can retain its customers by maintaining the perceived quality standards of its products or services.

ii) Improved customer care: A company can also retain its customers if proper customer care strategies are put in place by treating customers well to keep them satisfied.

iii) Accept complaints: The company must also view customer complaints as a gift and put in place strategies solve the problems of dissatisfied customers in order to prevent them from switching to competing brands.

iv) Improving communications: A company can also retain its customers by implementing modern communication technologies like blogs that will establish a constant link between the company and its customers.

v) Improving service delivery: The company can also retain its customers by using automation tools that will improve service delivery processes to customers.

vi) Feedback systems: The company can also use feedback systems to trend customer responses periodically in order to determine which areas of service delivery have improved and which areas have suffered and will require improvement.

vii) Price cuts: A company can also retain its customers by periodically reducing its prices and offering loyalty packages to demonstrate to customers how valuable they are.

viii) Non-conventional services: The company can retain its customers by sending them greeting cards, anniversary messages, invitation to special events and also offering complementary products and services to customers.

ix) Prompt after sales services: By providing prompt after sales services to customers, the company will win their loyalty and so retain them.                                                                                                                                                                         (Any 5)

Reasons for reducing price:

i) Competitive reasons: The firm may decide to reduce its prices as a response to price reduction by competitors.

ii) Excess production: When a company produces in excess of demand, there is the likelihood that prices of the products will be reduced in order to clear the excess products.

iii) Falling brand share: A company may also reduce prices if the brand power is It must reduce the price to be able to exit the market.

iv) Bankruptcy: If a company is nearing bankruptcy, it may be forced to slash its prices in order to increase sales and increase revenue which will facilitate its liquidity status in order to avoid the bankruptcy.

v) Low quality: When the perceived quality of the company’s product reduces as a result of the introduction of a more superior product, it may be forced to reduce its prices.

vi) Seasonal strategy: A company may decide to reduce its prices during certain seasons like Christmas to be able to increase its sales volume and revenue and at the same time reward customers.

vii) Technological Changes: When a competing firm introduces a more technologically advanced product than what the manufacturing company is offering currently, it will have to reduce its prices to be able to sell the obsolete products.

viii) Economic recession: When the economy in which the company is operating declines in terms of disposable income and purchasing power, the company will have to reduce its price in order to encourage consumers to buy.

ix) Drop in raw material prices: When the cost of raw materials used to produce the company’s products reduce, the company may also decide to reduce its prices to retain its customers.                                                                                                   (Any 5)

i) To increase productivity: When the organization remunerates its employees well, they will have the desire to give the best of their efforts resulting in increased productivity of the organization.

ii) Attract talents: When an organization is noted for remunerating its employees well, it helps in attracting highly talented people to work in that organization.

iii) Cost Control: Remunerating employees well will help the organization to control its operational cost because of the high retention rate of the workforce.

iv) To motivate employees: When employees are remunerated adequately, it signals to them some sense of fairness which will increase their motivational level to increase commitment and productivity.

v) Reduces Trade Union Agitations: When employees are adequately remunerated, it reduces the agitations of trade union in the organization.

vi) Provide economic security: When employees are adequately remunerated, it helps them to gain economic security because they make savings and also invest part of their salaries to cater for them during retirement.                                                (Any 5)

i) High Quality Staff: Investing resources in training and development activities enables the organization to increase the competence and skill levels of the employees, which will help them to undertake their tasks more effectively and efficiently.

ii) Increased Commitment: When employees realize that the organization invests resources in their training and development, it increases their commitment and also helps them to identify with the objectives of the organization.

iii) Provide for Succession: Investment in training and development of employees will enable the firm to identity those employee who possess talents and prepare them to take up positions in the firm when the need arises.

iv) Prepare for change: Training and development activities also help prepare employees to manage change by increasing their understanding for change and provides them with knowledge and skills they need to adjust to the new situation.

v) Improved performance: When employees are taken through training and development activities, it enables them to acquire additional skills and knowledge that will help improve upon their efficiency in their day-to-day performance.

vi) Increased productivity: Training and development activities help to enhance individual, team and corporate performance in terms of output, quality and the overall organizational productivity.

vii) Operational Flexibility: Investment in training and development activities help to improve operational flexibility by extending the range of skills possessed by employees that can help them to work in various levels and aspects within the organization.

viii) Gaining competitive advantage: Investing in employee training and development activities facilitates the acquisition of new skills which enables the employees to improve upon their productivity leading to competitive advantage.

ix) Customer Service: Acquiring knowledge and skills will help the employees to serve customers better and increase their retention.                                                                                                                                                                                  (Any 5)

A formal organization is any organization that has rules and procedures governing the way work is divided and carried out and how tasks are grouped into departments.

An informal organization on the other hand refers to the social structure that governs how employees work together in an organization.

Difference: Whilst formal organizations emphasize on clear definition of authority and job responsibility, informal organizations emphasize on social relationships like friendships and alliances.

Benefits of groups:

i) Security: When he/she joins the group the level of insecurity that is associated with being alone will be reduced because of the support from group members.

ii) Enhanced Status: If he/she becomes a member, the recognition and respect given to the group members will also be extended to him/her.

iii) Self Esteem: As a member of a group he/she will enjoy some sense of feelings or self-worth from the group.

iv) Power: There is power in numbers, and what cannot be achieved individually can be achieved by the group.

v) Knowledge acquisition: When an individual joins a group he/she will have the benefit of gaining knowledge from the more experienced members of the group.

vi) Enhanced negotiation position: The individual by becoming a member of a group will enhance his/her negotiation position because the impact of group decisions carries more weight than individual decisions.

vii) Friendship: It is a mechanism of satisfying the individuals’ needs for friendship and social intercourse.

viii) Groups serve as an opportunity to find the individuals identity and for leadership.                                                       (Any 5)

i) Specific: An objective should focus on a specific issue and not on wide ranging issues that are ambiguous.

ii) Measurable: The objective must a have a basis of measurement to ensure consistency. This will enable the organization to determine whether it is making progress or not.

iii) Achievable/Attainable: The organization must ensure that the targets set are within its means.

iv) Realistic. The objective set must be realistic in terms of comparison within and outside the organization.

v) Time bound: The objective must have a deadline within which the target set is achieved.