Nomsa manages a local flower shop and currently uses traditional methods to handle inventory
and customer orders. She is facing challenges in efficiently managing sales and providing a
seamless experience for customers. You've introduced the idea of implementing a computerised
information system that enables customers to place orders online for delivery or pickup. Nomsa is
sceptical about this shift and needs convincing about the advantages of adopting such a system
for her flower shop.
Q.1.5 Describe the four basic components that Nomsa’s flower shop information system
will consist of
(8)
Q.1.6 Discuss at least two types of information systems that will benefit Nomsa’s flower
shop.
(7)
Q.1.7 Explain the concept of competitive advantage and identify three strategies that
Nomsa's Flower Shop could pursue to achieve a competitive edge in the market.
(8)
Q.1.8 In the context of Nomsa's flower shop, does the implementation of technology alone
guarantee high-quality customer service? Justify your response with specific reasons.
Your answer must have evidence of using external resources.
(3)
Q1.5 The four basic components that Nomsa's flower shop information system will consist of are:
1. Hardware: This includes the physical components of the system such as computers, servers, printers, and other devices necessary for the system to function.
2. Software: This refers to the programs and applications that will be used to manage inventory, process orders, and handle customer information. This can include inventory management software, online ordering platforms, and customer relationship management systems.
3. Data: This component includes the information that will be stored and managed within the system, such as inventory levels, customer profiles, order history, and sales data.
4. People: This component refers to the individuals who will be responsible for using and maintaining the system, including Nomsa and her employees who will be trained to effectively utilize the technology.
Q1.6 Two types of information systems that will benefit Nomsa's flower shop are:
1. Customer Relationship Management (CRM) system: A CRM system will help Nomsa track customer interactions, manage customer information, and segment customers based on their preferences and purchasing history. This will enable Nomsa to personalize marketing efforts and provide better customer service.
2. Inventory Management System: An inventory management system will help Nomsa track stock levels, reorder products when necessary, and optimize inventory turnover. This will ensure that Nomsa can fulfill customer orders promptly and avoid stockouts.
Q1.7 Competitive advantage is the ability of a business to outperform its competitors by providing unique value to customers. Three strategies that Nomsa's Flower Shop could pursue to achieve a competitive edge in the market are:
1. Differentiation Strategy: Nomsa can differentiate her flower shop by offering unique floral arrangements, personalized customer service, and a user-friendly online ordering system. This will set her shop apart from competitors and attract customers who value quality and customization.
2. Cost Leadership Strategy: Nomsa can focus on reducing operating costs, streamlining processes, and negotiating favorable deals with suppliers to offer competitive prices to customers. This will help Nomsa attract price-conscious customers and increase market share.
3. Focus Strategy: Nomsa can target a specific market segment, such as corporate clients, event planners, or luxury consumers, and tailor her products and services to meet the unique needs of that segment. This will allow Nomsa to build expertise and reputation within a niche market and command higher prices for specialized products and services.
Q1.8 The implementation of technology alone does not guarantee high-quality customer service. While technology can improve efficiency, accuracy, and convenience, it is ultimately the people behind the technology who determine the quality of customer service. Nomsa and her employees must be properly trained to use the technology effectively, respond to customer inquiries promptly, and resolve any issues that may arise. Additionally, Nomsa must continue to prioritize customer satisfaction, communication, and personalized service to ensure that technology enhances, rather than hinders, the customer experience.