Lecture #2 – September 16,13
• What is Glo-bus all about?
o Pc based exercise where you run a digital camera company in a head to head
o The marketplace is worldwide- occurs at the company’s plant is in Taiwan and
sales are pursued in north America, Latin America, Asia-pacific, Europe-
o There are 8 market segments- 4 geographic segments each for entry level
digital camera and multi-featured camera
o Puts you and your co-managers in market setting as possible and have you
manage all aspects of the company’s
o The challenge is to craft and execute a strategy for your digital camera
company which, when pitted against the strategies of rival companies, proves
capable of delivering good bottom-line results and building shareholder value.
o Each company starts off from the same foot, each period represents a year,
the company will have history of 5 years and the first set of decisions will
make is for year 6.
o Decisions = camera designed performance (10 decisions),, productions
operations and worker compensation (15 decisions), pricing and marketing
(15 decisions), the financing of company operations ( 4 decisions)
Objectives for the company: Scoring weights – performance measures
o EPS – 20%
o Credit rating 20%
o Stock price 20%
o Image rating 20%
o Return of equity (ROE) 20%
Information and decision making - Lecture #2
• Knowledge and knowledge workers provide a decisive competitive factor in
• Knowledge worker
o Intellectual capital
o Knowledge and intellectual capital are irreplaceable organizational resources
o The productivity of knowledge and knowledge workers depends on:
• Electronic commerce
• Stages of development in e-commerce:
o Secure an online identity
o Establish a web presence
o Enable e-commerce
o Provide e-commerce and customer relationship management
o Utilize a service application model
• IT facilitates communication and information sharing, reduction in the number of
middle managers, better organizational structure and excellent coordination and
control. It builds relationships with external environment
o It has changed the new workplace ( email, peer 2 peer file sharing
o Data is raw facts and observation
o information is data made available for decision making
o Good information most timely, high quality, complete, relevant and
o Data –information- decision making.
o Infer exchanges with the external environment are within the organization.
o The external and internal information needs of the organization are presented
in the next slide.
The role of information in the management process.
• information systems Management information system (MIS)
• Decision support system ( DSS)
• Artificial intelligence (AI)
• Expert systems ( ES)
• Intranet and corporate portals
• Extranet and enterprise portals
• Electronic data interchange ( EDI)
Advantages of IT
• Planning advantages: better and timelier access to useful information, involving
more people in the planning process.
• Organizing advantages: more ongoing and informed communication among all
parts, improving coordination and integration
• Leading advantages: more frequent and better communication with staff and
diverse stakeholders, keeping objectives clear
• Controlling advantages: more immediate measures of performance results,
allowing real-time solutions to problems. The manager is the processing nerve centre (refer to diagram)
Information and decision making
• Problem solving - is the process of identifying a discrepancy between actual and
desired performance and taking action to correct it
• Decision - is a choice among possible alternative course of action.
• Performance deficiency - is actual performance being less then desired
performance. Ex: a customer complains about service delays
• Performance oppo