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 basic knowledge and understanding of how to use a computer effectively. It involves skills such as navigating software, using word processing programs, and understanding basic computer functions. On the other hand, information literacy is the ability to find, evaluate, and effectively use information. This includes knowing how to search for information online, analyze the credibility of sources, and use information ethically.
In the context of Thabo's bakery, improving computer literacy can help employees efficiently input and access data related to inventory, sales, and customer orders. This can streamline operations and help address the issue of egg scarcity by allowing for quick adjustments to recipes and inventory levels. Information literacy, on the other hand, can help Thabo and his employees make informed decisions based on data and research, enabling them to better manage supply shortages and anticipate customer demands.
Q.1.2
Data refers to raw facts and figures, such as the number of eggs in stock or the daily sales figures. Information, on the other hand, is processed data that has context, relevance, and meaning, such as a report showing trends in egg consumption or a forecast of future sales based on past data.
A clearer understanding of this distinction can help enhance daily operations at Thabo's bakery by enabling better decision-making. For example, by analyzing sales data and customer feedback, Thabo can gain insights into which products are most popular and adjust production accordingly. Understanding the difference between data and information can also help in identifying trends, such as seasonal fluctuations in demand, and preparing for them in advance.
Q.1.3
A transaction processing system (TPS) is a type of information system that processes transactions, such as sales, orders, and payments, in real-time. Implementing a TPS at Thabo's bakery could streamline sales and order processing by automating routine tasks, reducing errors, and providing real-time updates on inventory levels.
For example, when a customer places an order online through the TPS, the system can automatically deduct the items from inventory, update sales records, and generate a receipt for the customer. This eliminates the need for manual data entry and ensures accurate and efficient order fulfillment.
Q.1.4
Two major components of an information system are hardware and software. Hardware includes physical devices such as computers, servers, and printers, while software includes programs and applications that are used to process data and perform specific tasks.
By integrating hardware and software, Thabo's bakery can benefit from increased efficiency and productivity. For example, using a computer (hardware) with inventory management software (software) can automate inventory tracking, generate reports on stock levels, and streamline ordering processes. This integration can help Thabo make informed decisions about purchasing ingredients and managing inventory, ultimately improving overall operations.
Q.1.5
Competitive advantage refers to the unique strengths and advantages that a business has over its competitors, allowing it to outperform them in the market. Three strategies that businesses use to seek and achieve a competitive edge include cost leadership, differentiation, and focus.
Cost leadership involves being the low-cost provider in the market, offering products at a lower price than competitors. Differentiation involves offering unique products or services that set the business apart from competitors. Focus involves targeting a specific niche market and tailoring products or services to meet their needs.
In the scenario of Thabo's bakery, he could achieve competitive advantage by focusing on differentiation, offering unique and high-quality baked goods that stand out from competitors. Additionally, by implementing a cost-effective online ordering system and focusing on customer service, Thabo could also pursue a cost leadership strategy to attract price-conscious customers.
Q.1.6
Apart from a transaction processing system (TPS), Thabo can employ a customer relationship management (CRM) system and an inventory management system.
A CRM system can help Thabo track customer preferences, manage loyalty programs, and improve customer interactions. For example, Thabo can use a CRM system to send personalized offers to frequent customers, gather feedback on products, and track customer orders and preferences.
An inventory management system can help Thabo track stock levels, monitor ingredient usage, and optimize ordering processes. For example, by using an inventory management system, Thabo can set up automatic reorder points for ingredients, track expiration dates, and generate reports on usage and wastage.
Q.1.7
Two examples of bakeries leveraging social media to promote their business include Magnolia Bakery, which uses Instagram to showcase its products and engage with customers, and Dominique Ansel Bakery, which uses Twitter to announce new products and promotions.
For Thabo's bakery, two social media platforms that could be adopted for promoting its services include Facebook and Instagram. Facebook can be used to share updates, promotions, and customer reviews, while Instagram can be used to showcase visually appealing images of Thabo's baked goods and engage with followers through stories and live videos. Utilizing these platforms can help Thabo reach a wider audience, attract new customers, and build brand loyalty.