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 required to use computers and related technology efficiently. On the other hand, information literacy is the ability to identify, locate, evaluate, and effectively use information. In the context of Thabo's bakery, computer literacy is crucial for employees to operate the proposed online ordering system, ensuring smooth transactions and customer interactions. Information literacy, on the other hand, will enable Thabo and his team to research and understand the current egg shortages, explore alternative suppliers, and make informed decisions to manage inventory effectively. Improved computer and information literacy will empower the bakery to adapt to challenges, such as egg scarcity, by leveraging technology and data to make strategic decisions.
Q.1.2
Data refers to raw facts and figures, while information is processed data that has meaning and context. In Thabo's bakery, data could be the quantity of eggs in stock, while information would be the analysis of egg usage trends over time. By understanding this distinction, Thabo can use data to track inventory levels, identify patterns in customer orders, and predict demand accurately. This, in turn, can help in enhancing daily operations by ensuring efficient stocking of ingredients, reducing waste, and offering popular products to customers.
Q.1.3
A Transaction Processing System (TPS) is a type of information system that processes transactions in real-time. By implementing a TPS in Thabo's bakery, sales and order processing can be automated and streamlined. For example, when a customer places an order online, the TPS can immediately update the inventory levels, generate an order list for the kitchen staff, and provide a receipt for the customer. This real-time processing reduces errors, improves efficiency, and ensures timely delivery or pickup of orders.
Q.1.4
Two major components of an information system are hardware and software. In Thabo's bakery, hardware such as computers and tablets can be integrated with software applications like inventory management systems and online ordering platforms. By linking these components, Thabo can efficiently track inventory levels, automate sales processes, and enhance customer service. For example, using a tablet with an integrated ordering system can allow staff to take orders from customers in-store or manage online orders seamlessly.
Q.1.5
Competitive advantage refers to the unique attributes or strategies that enable a business to outperform its competitors. Three strategies that businesses use to seek and achieve a competitive edge in the market are cost leadership, differentiation, and focus. Cost leadership involves offering products or services at a lower price than competitors, differentiation focuses on providing unique features or quality that set the business apart, and focus concentrates on targeting a specific market segment effectively. In Thabo's bakery scenario, achieving competitive advantage could involve offering special promotions on egg-based products to mitigate shortages, introducing unique recipes or flavors to differentiate from other bakeries, and targeting online marketing efforts towards customers who value convenience and quality.
Q.1.6
Apart from a Transaction Processing System (TPS), Thabo can employ a Customer Relationship Management (CRM) system and a Business Intelligence (BI) system in the bakery's operations. A CRM system can help Thabo track customer preferences, manage loyalty programs, and personalize customer interactions. For example, Thabo can use a CRM system to create a database of customer preferences for egg-based products, sending targeted promotions or discounts to loyal customers. A BI system can analyze sales data, trends, and customer feedback to provide insights for strategic decision-making. Thabo could use a BI system to analyze sales performance of egg-based products, identify opportunities for product innovation, and forecast demand based on historical data.
Q.1.7
Social media has become a powerful marketing tool for bakeries to connect with customers and promote their businesses. Two examples of bakeries leveraging social media include Magnolia Bakery, which uses Instagram to showcase their signature cupcakes and engage with followers, and Tartine Bakery, which uses Twitter for real-time updates on daily specials and events. For Thabo's bakery, adopting social media platforms like Facebook for customer engagement and Instagram for visually showcasing products could be beneficial. Facebook can be used to share promotions, updates, and customer reviews, while Instagram can showcase mouthwatering images of Thabo's baked goods, attracting new customers and enhancing brand visibility. By leveraging social media effectively, Thabo can reach a wider audience, build brand loyalty, and drive online orders and foot traffic to the bakery.