• It will lead to better administration and coordination in the firm.
• It will enhance the public image of the organization.
• MIS will improve decision making in the firm.
• It will lead to closer relationship among employees.
• It will facilitate proper knowledge management of the firm.
• It will lead to improved inventory control.
• It will increase productivity of the firm.                                                                                                                            (Any 4)

Finance and accounting information systems assist in maintaining records relating to the flow of funds in the firm by producing financial statements. Examples of financial statements include cash flow forecasts, income statement.                           (4 marks)

Manufacturing and production information systems will assist in the collection and supply of data to operate, monitor and control the production systems including the purchase of raw and other materials, an example being material handling, material planning and inventory control systems.                                                                                                                             (4 marks)

Sales and marketing information systems support the sales and marketing function by enabling the effective and efficient movement of goods and services from producers to end users. An example is that sales support systems keep customer records.
                                                                                                                                                                                             (4 marks)

Human resource information systems assist with recruitment, placement, compensation and career development of employees of the organization as in the case of personnel records keeping, applicant tracking, training and pension updates.              (4 marks)

A strategic plan is a long term plan that is developed by the organization to enable it achieve its objectives and covers the entire firm. An operational plan on the other hand is a short term plan developed by a middle manager which concentrates on a specific functional area.
Whereas a strategic plan covers a period of about five years and is stated in general terms, an operational plan is stated in specific terms and covers a short period.

• The internal environment of a business refers to the forces which impact on the operations of the business and over which it has some element of control. Such factors include the level and quality of equipment, the quantity and quality of its
  Human resources, marketing capabilities and strategies.
• The external environment of a firm consists of the sum total of all conditions and forces which affect the strategic options of a business but which are typically outside its control. Common external factors fall into several categories, including socio-economic, legal or ethical, political and technological. Socio-economic factors relate to the values, attitudes and concerns of the firm’s target customers and their economic abilities to afford its products.

The Matrix Structure refers to the organizaional arrangement or structure in which individuals from functional areas of the organization are assigned to a specific project or task.

• Knowledge Pool
  Matrix organizations are effective at knowledge management since individuals with specialist skills are brought together to undertake specific duties and this leads to lower costs and increased productivity.
• Training Grounds
  A matrix organizational structure serves as a good training ground for managers since they can acquire skills they do not already possess from project colleagues for their future performance.
• Creativity
  The pooling of different skills enhances creativity and diversity among the employees. This may lead to higher employee morale and higher productivity.
• Information Flow
  The matrix structure facilitates effective information flow because employees from different functional areas are brought together, allowing for information to be transmitted more quickly throughout the organization.
• Flexibility
  The matrix structure enables the organization to share its human resources across different project sites, leading to efficiency, lower costs and increased profitability.
• Integration
  There is the relative ease of integration of project members back into their previous departments once the project has been completed.
• Inter Departmental Co-ordination
  With this type of structure, employees are challenged constantly and this results in the development of inter departmental coordination to solve emerging problems.                                                                                                                         (Any 5)

• Violates Unity of Command
  The matrix organization structure violates the basic principle of unity of command since subordinates will have to report to two superiors at the same time and this may create organizational frictions.
• Costly
  A matrix structure is often more costly to implement since the employees that make up the project team will be drawn from different functional areas and the organization will have to spend much money on communication, etc.
• Role Conflict
  The personnel who are assigned to a project will still be evaluated by their functional managers who now have little chance of assessing their work, leading to role conflict on the part of subordinates in the performance of their duties.
• Inefficiency
  The existence of multiple managers and numerous procedures may lead to inefficiency in the management of the organization and therefore lower productivity.
• Missed Targets
  The matrix structure may result in situations where departments may find it difficult to achieve set targets because employees who are highly efficient would have been drafted into a project team.
• Information Logjams
  The adoption of a matrix organization structure may lead to the proliferation of information logjams due to the magnitude of work overload on employees.                                                                                                                                            (Any 5)

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Service organsiations may differ from manufacturing organisations when considering capacity management in the following ways;

• Production and consumption occur at the same time. Inventories of services cannot be built up in quieter times, which makes the balancing of capacity and demand more difficult.
• Greater interaction. The customer plays an active role in the delivery process. Customer service quality is integral to the customer experience.
• Output is different each time. Each customer service interaction is different in some way e.g. different conversation, attitude, etc. Achieving a consistently high level of output is more challenging.
• Generally greater reliance on staff. Service delivery depends on the people delivering the service. The “mood’ of staff on the front line should not adversely impact upon the customer experience.
• Intangible output. This makes measuring the quality level of output more difficult as there is no physical product to inspect. Obtaining feedback of customer satisfaction is important.                                                                                                (Any 4)

Globalisation refers to the growing convergence of national cultures, economies and political systems and the growing interdependence of countries worldwide. Globalisation refers to the growing interdependence-of countries worldwide through increased trade, increased capital flows and the rapid diffusion of technology. Globalisation is focused on the growing convergence of national cultures, economies and political systems.

• The ability of individuals to enter into transactions with individuals and organisations based in other countries.
• The increased importance of global economic policy relative to domestic policy.
• The rise of globally linked and dependant financial markets.
• The reduction in importance of local manufacturing.
• Reduced transaction costs through the developments in communications and transport.
• The rise of emerging, newly industrialised nations                                                                                                          (Any 4)

• Financial factors such as developing world debt. Often, lenders require the initiation of economic reforms as a condition of the loan.
• Country/continent alliances: such as those in ECOWAS and AU which foster trade and tourism.
• Government policy: in many countries this seeks to control the balance of payments by discouraging imports, thereby encouraging globalization.
• Legal factors such as patents and trademarks, which encourage the development of technology and design.
• Markets trading in international commodities. Commodities are not physically exchanged; only the rights to ownership. A buyer can, thanks to efficient systems of trading and communications, buy a commodity in its country of origin for delivery to a specific port.                                                                                                                                                               (Any 4)

A market segment consists of a group of customers who share a similar set of needs and wants. The marketer does not create the segments; the marketer’s task is to identify the segment and decide which one(s) to target.

Geographic segmentation involves dividing the market into different geographical units such as countries, regions, cities, or neighborhoods. The company can operate in one or a few areas, or operate in all but pay attention to local variations.

In demographic segmentation, the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, nationality, and social class.
One reason for its popularity is that consumer needs, wants, and usage rates and product and brand preferences are often associated with demographic variables, which are easy to measure.

Psychographics is the science of using psychology and demographics to better understand consumers.
In psychographic segmentation, buyers are divided into different groups on the basis of psychological/personality traits, lifestyles or values. People within the same demographic group can exhibit very different psychographic profiles.

In behavioral segmentation, buyers are divided into groups on the basis of their knowledge of, attitude towards, use of, or response to a product.
Many marketers believe that the behavioral variables – occasions, benefits, user status, usage rate, loyalty status, buyer-readiness stage, and attitude – are the best starting points for constructing market segments.

A strategy is a course of action including the specification of all the resources which will be required to achieve a specific objective. It is concerned with the overall direction of an organization. Strategy formulation is the responsibility of the top management of an organization.

Policies are general statements or understandings which provide guidelines for management decision making. They allow managers to exercise their own discretion and freedom of choice, but within certain limits. An example of a policy might be that the staff of the purchasing department of an organization should not accept gifts from suppliers subject to certain exceptions.

Procedures are sequences of required actions or activities for performing certain tasks. They exist at all levels of an organization even though they are more onerous and extensive at the lower levels of the organization. Although they have their setbacks, procedures result in efficiency and standardization of work.

A budget is a formal statement of expected results set out in numerical terms and summarized in monetary values. It is a plan for carrying out certain activities with specified resources within a given period of time in order to achieve certain goals. A budget is a numerical statement and so tends to ignore qualitative aspects of planning and achievement.

Rules prescribe a specific, definite action which should be taken in a given situation. They do not allow for deviations or exceptions unlike policies which are general guidelines that allow the exercise of some management discretion. An example of a rule might be that employees with access to a telephone must not use it for personal calls.

TPS are used for routine tasks in which data items or transactions must be processed so that operations can continue. TPS support most business functions in most types of organisation. Transaction processing systems are sometimes referred to as data processing systems. Examples are sales order information system, market research system, pricing system, payroll, employee benefits, career path systems, Curriculum/class control systems and benefactor information system.
Please Note: other systems under manufacturing, finance/accounting, human resource and educational institution could be mentioned by students.

Management Information Systems convert data from mainly internal sources into information (e.g. summary reports, exception reports). This information enables managers to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible.
A management information system provide regular reports and access to the organisation’s current and historical performance.
MIS usually transform data and underlying transaction processing systems (TPS) into summarised files that are used as the basis for management reports.
MIS have the following characteristics:

• support structured decisions at operational and management control levels
• designed to report on existing operations
• have a little analytical capability
• relatively inflexible
• have an internal focus

An EIS pools data from internal and external sources and makes information available to senior managers in an easy-to-use form. EIS helps senior managers make strategic, unstructured decisions.
An executive information system provides senior managers with easy access to key internal and external information. The system summarises and tracks strategically critical information, possibly drawn from internal MIS and DSS, but also including data from external sources e.g. competitors, legislation and external databases.

DSS combine data and analytical models or data analysis tools to support semi-structured and unstructured decision making. DSS are used by management to assist in making decisions on issues which are subject to high levels of uncertainty. They are intended to provide a wide range of alternative information gathering and analytical tools with a major emphasis on flexibility and user-friendliness.
DSS have more analytical power than other systems, enabling them to analyse and condense large volumes of data into a form that aids managers’ decision making. The objective is to allow the manager to consider a number of alternatives and evaluate them under a variety of potential conditions.

OAS are computer systems designed to increase the productivity of data and information workers. They support the major activities performed in a typical office such as document management, facilitating communication and managing data. Examples include:
-word processing, desktop publishing, presentation software
-digital filing systems
-email, voice mail, videoconferencing (or teleconferencing)
-groupware (calendars, address books and journals), intranets, extranets, schedulers
-spreadsheets, desktop databases