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3 / 5
Question 1 (Marks: 50)
Thabo operates a small bakery and currently manages inventory and sales through manual record-keeping. Due to recent challenges, particularly shortages in the egg supply, Thabo is concerned about efficiently handling customer orders while also addressing the issue of egg scarcity. You've proposed the implementation of an information system that enables customers to place orders online for either delivery or pickup. Despite the potential benefits, Thabo is hesitant about transitioning to a computerised information system and requires convincing about its advantages for the bakery, especially in navigating the current egg shortages.
Q.1.1
Differentiate between computer literacy and information literacy, emphasising their significance in optimising the operations of Thabo’s bakery. In your answer, explain how improved literacy contributes to overcoming the identified challenges.
(8)
Q.1.2
Discuss data and information in the context of Thabo’s bakery. How can a clearer understanding of this distinction help in enhancing daily operations?
(6)
Q.1.3
Define transaction processing system and illustrate how implementing such a system could streamline sales and order processing at Thabo’s bakery. Provide examples specific to the bakery scenario.
(8)
Q.1.4
Describe any two major components of an information system and how they could be integrated to benefit Thabo’s bakery daily operations.
(6)
Q.1.5
In your own words, define competitive advantage. Then identify three strategies that lead businesses, to seek and achieve a competitive edge in the market and explain how this could be achieved using the scenario.
(8)
Q.1.6
Apart from a transaction processing system (TPS), explain any other two systems Thabo can employ in the business operations. Include specific practical applications of the systems within the bakery's context.
(6)
4 / 5
Q.1.7
Social media has become a prevalent marketing tool for numerous bakeries. Conduct additional research and provide two examples of bakeries leveraging social media to promote their business and specify the platforms they are utilising. Propose and justify two social media platforms that Thabo’s bakery can adopt for promoting its services.
Your answer must have evidence of using external resources.
(8)
Q.1.1
Computer literacy refers to the knowledge and skills needed to operate a computer effectively, while information literacy is the ability to find, evaluate, and use information effectively. In the context of Thabo's bakery, computer literacy would allow Thabo and his staff to use the proposed online ordering system efficiently, ensuring smooth operations and customer satisfaction. On the other hand, information literacy would enable them to analyze the data generated by the system, such as customer preferences and sales trends, to make informed decisions regarding inventory management and marketing strategies. Improved computer and information literacy would therefore help Thabo's bakery adapt to the current challenges, such as egg shortages, by facilitating better decision-making and resource allocation.
Q.1.2
Data refers to raw facts and figures, while information is processed data that is meaningful and useful. In the context of Thabo's bakery, data could include aspects like the number of eggs in stock, while information would involve insights derived from this data, such as predicting when to reorder eggs based on the rate of consumption. A clearer understanding of this distinction would help in enhancing daily operations by enabling Thabo to identify patterns, make informed decisions, and optimize resources effectively. For instance, by analyzing sales data, Thabo could adjust production schedules to minimize wastage during periods of egg scarcity.
Q.1.3
A transaction processing system (TPS) is a type of information system that handles the processing of transactions, such as sales orders, payments, and inventory updates. Implementing a TPS at Thabo's bakery could streamline sales and order processing by automating the recording and tracking of customer orders, reducing the chances of errors and delays. For example, when a customer places an order online, the TPS could automatically update the inventory levels and generate invoices, ensuring efficient fulfillment of orders and accurate record-keeping.
Q.1.4
Two major components of an information system include hardware and software. Hardware refers to the physical devices used to store, process, and display data, such as computers, servers, and printers. Software, on the other hand, consists of programs and applications that enable users to perform specific tasks, such as inventory management software or online ordering platforms. By integrating hardware and software effectively, Thabo's bakery could benefit from improved data storage, processing capabilities, and user interfaces, leading to enhanced efficiency and performance in daily operations.
Q.1.5
Competitive advantage refers to the unique capabilities and resources that enable a business to outperform its rivals and achieve success in the market. Three strategies that businesses use to seek and achieve a competitive edge include cost leadership, differentiation, and focus. In the scenario of Thabo's bakery, competitive advantage could be achieved by offering unique products or services (differentiation), optimizing operational costs to offer competitive prices (cost leadership), and catering to specific customer segments with tailored offerings (focus). By implementing an online ordering system and leveraging data insights, Thabo could differentiate his bakery by offering personalized customer experiences, optimizing pricing strategies, and targeting niche markets effectively.
Q.1.6
Apart from a transaction processing system (TPS), Thabo can employ a management information system (MIS) and a customer relationship management (CRM) system in the bakery's operations. A MIS would help Thabo in gathering and analyzing data to support strategic decision-making, such as forecasting demand and optimizing production processes. On the other hand, a CRM system would assist in managing customer relationships, tracking preferences, and providing personalized services, such as targeted promotions or loyalty programs. By integrating these systems, Thabo could enhance operational efficiency, customer satisfaction, and business performance in the bakery.
Q.1.7
Research examples of bakeries leveraging social media for promotion:
1. "Bake My Day" bakery utilizes Instagram and Facebook to showcase their latest creations, engage with customers through contests and promotions, and provide updates on new menu items. These platforms have helped them increase brand visibility, attract new customers, and build a loyal following.
2. "Sweet Eats Bakery" utilizes Pinterest and Twitter to share baking tips, recipes, and behind-the-scenes content. By leveraging these platforms, they have been able to establish themselves as industry experts, drive traffic to their website, and engage with a diverse audience.
Proposed social media platforms for Thabo's bakery:
1. Instagram: Thabo's bakery could use Instagram to showcase their delectable treats, engage with customers through visual storytelling, and promote special offers or events. This platform's visual nature would appeal to food enthusiasts and help boost brand awareness and engagement.
2. Facebook: Thabo's bakery could also benefit from using Facebook to connect with a wider audience, share updates about their products and services, and engage in conversations with customers. Facebook's diverse features, such as chatbots and targeted advertising, could help Thabo reach and attract new customers while fostering relationships with existing ones.