Management Information System Case-Study

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Systems Triumph or Tragedy?

ShopKo and Pamidas case Team BRAVO ,,

Management Information System Case-Study

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The table of contents

Briefing : Case-Study CASE STUDY QUESTION
Evaluate the role of information systems in the way ShopKo and Pamida run their business. How important are they? Evaluate the importance of Pamidas distribution center con-solidation project for both Pamida and ShopKo. What man-agement, organization and technology factors prevented Pamidas new distribution center from working successfully? Are ShopKo and Pamida using information systems effec-tively? Why or why not? How much value do their systems provide to the business

If you were the CEO of ShopKo, how would have addressed the problem? If you were the CEO of Pamida when it was purchased by ShopKo, would you have recog-nized the problem? Explain. How would you have solved the problem?
What management challenges does this case study illus-trate? Explain your answer

Management Information System Case-Study

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Briefing : Case-Study
ShopKo & Pamidas History
[ Early 2000 ] Pamida was to consolidate its five warehouse into three the warehouse was expanded from 200,000 square feet to 418,000 square feet ,but the warehousing software was neither updated nor repalced ShopKo to lose $6.7 million in overall rev-enue. Pamidas New CEO arriving

Green Box : organizational movement Yellow Box : Personnel management

[ The end of 2001 ] Pamida eventually turned around its distribution center and it became fully functional Pamidas new distribution system is closing a smaller warehouse in Missouri to consolidate distribu-tion at its Indiana and Nebraska centers.

ShopKo purchased Pamida Pamidas the chain had a total of 180 store

1999s

2000s

2001s

[ july 1999 ] Steve Fishman in pamidas CEO leaving

[ may 2000 ] ShopKo purchased P.M. Place Chain of 49 small town Midwestern stores Pamidas the chain had a total of 229 store in 16 states

[ the spring of 2000 ] The task of merg-ing P.M. Place with Pamida

[ may 2001 ] ShopKos CEO william Podany resigned asn chairman

Management Information System Case-Study

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1. Evaluate the role of information systems in the way ShopKo and Pamida run their business. How important are they?
ShopKo Pamida
Info system Info system

Markdown Optimizer
Purpose

Warehouse Management Information System

Purpose

To help the company optimize prices during markdowns for overstocked items
Function

to Providing the customer with merchandise which is always available as advertised.

Function

to price a product according to season, geography, local tastes, and past demand by analyzing historical pricing and sales data.
Effect

Goods arrive at the warehouse and are immediately shipped to the stores.
Effect

Pamidas earnings to decline

The products will sell faster and with a better profit at each store

Management Information System Case-Study

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for both Pamida and ShopKo. What man-agement, organization and technology factors prevented Pamidas new distribution center from working successfully?

Evaluate the importance of Pamidas distribution center con-solidation project

Before consolidation
Pamidas information technology strategy is aimed at providing the customer with merchandise which is always available as advertised. Store Store Store Store inefficient methods
For example-

Food Warehouse

Clothes Warehouse

Tableware Warehouse

Computer Warehouse

Toy Warehouse

Management Information System Case-Study

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for both Pamida and ShopKo. What man-agement, organization and technology factors prevented Pamidas new distribution center from working successfully?

Evaluate the importance of Pamidas distribution center con-solidation project

After consolidation
This con-solidation project is cause to increase stores ability to keep their shelves stocked.

Store

Store

Store

Where goods arrive at the warehouse and are Immediately shipped to the stores when needed
More expanded space. Modern-ize inventory management system But the warehousing software was neither updated nor replaced.

Full-service
Warehouse

Full-service Full-service
Warehouse Warehouse

The Lebanon Distribution Center

Management Information System Case-Study

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Evaluate the importance of Pamidas distribution center con-solidation project for both Pamida and ShopKo.

What man-agement, organization and technology factors prevented Pamidas new distribution center from working successfully?

- Three major factors problem Management

The task of merg-ing P.M. place with Pamida
(it be that ShopKo's resources and management were stretched thin)

Focused on a three-year pro-gram

Organization
Pamida and ShopKo management many turnover.

Technology
Pamidas old warehouse management information system is not real flexible so the processes at the distribution center had to conform to the system

Management Information System Case-Study

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Are ShopKo and Pamida

using information systems effec-tively?

Why or why not? How much value do their systems provide to the business

We think about They arent using information system effectively

Pamida have to their Old inflexible software changes to New flexible software

old Hardware

Pamidas Business Strategy

Independent

inflexible Software

Database

Procedures Dis-communication Distribution Center Service

Organization

Old Information System

The indepen-dence between organizations and Pamidas Old information systems.

Management Information System Case-Study

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If you were the CEO of ShopKo, how would have addressed the problem?
If you were the CEO of Pamida when it was purchased by ShopKo, would you have recog-nized the problem? Explain. How would you have solved the problem?

Case in case
2002 , .

If we were the CEO of ShopKo, we will develop new flexible Information System that it is able to be applied with all of Pamida and ShopKo after closing the Pamida's old system And we will use Markdown Optimizer to help the company optimize prices during Markdowns for overstocked items

Management Information System Case-Study

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If you were the CEO of Pamida when it was purchased by ShopKo, would you have recog-nized the problem?
Explain. How would you have solved the problem?

If you were the CEO of ShopKo, how would have addressed the problem?

Strategy on selling of ShopKo Flexibility of information system between shopKo and Pamida Financial statement condition of ShopKo Flexible Connection between P.M. Place and Pamida

Management Information System Case-Study

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What management challenges does this case study illus-trate? Explain your answer
They didnt have enough information when consuming Pamida and P.M. place. There were few communication between ShopKO and Pamida. Unreasonable strategy on expansion of stores.