As a consultant for this business I have put together a report that will demonstrate the use of Information Systems within MBL in order to develop and enhance processes within the production chain of the business.

To begin with I will analyze the current workings of each department within MBL using General System Thinking concepts. Systems theory was first proposed in the 1940's by the biologist Ludwig von Bertalanffy who defined a system as a complex of interacting elements. Bertalanffy also noted that systems are open to, and interact with their environments. In addition, they can acquire qualitatively new properties through emergence, thus they are in a continual evolution. (Bertalanffy, 1976)

A consistent, combined set of components working together as a single unit working towards a common goal or purpose is classed as a system (Ratzan, 2004 pg 1) furthermore; systems normally have five common characteristics that differentiate them from an inanimate object.

My Briefcase Ltd has a number of departments that work together as a system. The characteristics of a system are explained below:

Each department (or you could call it a system) has its own function and these functions are interlinked together to reach a common goal. I will illustrate how each department plays an integral role as a subsystem within the larger system (MBL as a whole) by defining the:

1) Inputs; changes which are inserted into a system2) Processes; the procedure that is executed in order to transform the inputs3) Outputs; the transformed resources that exit the system4) Feedback; the process that is looped back to control a system within itself

1.Inputs and Outputs:In the case of the manufacturing dept of MBL the inputs are raw materials and the output is the

finished briefcase. The output of one system often forms the input for

another system.

2.Goals or Objectives:The activites and processes of a

system are determined by its goals. For example one of the main goals

for the Accounting dept of MBL would be to provide accurate

financial data for the company.

3.Systems Boundary:The boundary of a system is what

lies within the scope of the system and interacts with it. The

boundary of the warehousing dept would be the building in

which it stores its stock

4.Feedback and Control:Regulatory controls allow systems

to maintain and pursue its objectives and goals & feedback

enables system processes to modify themselves to meet goals.

5.Interrelated Parts:A system is made up of

interrelated parts and for it to be a system must assume some form of activity eg the sales dept data is

used within accounts dept to draw up the balance sheets.

Input Process Output

Feedback

DEPT INPUT PROCESS OUTPUT FEEDBACKAccounting Information from other

departments such as sales figures, marketing expenses, production costs etc

The financial info is processed by keeping general ledgers and having audits to check stock levels

Major financial statements; balance sheets, income statement and cash flow statement

Shareholders; they buy more shares if the company does well or sell their shares during difficult periods

Marketing Information about the popularity of products from sales figures

Marketing dept studies the data and looks at the best way to enhance the service/product

Advice to the engineering and design dept, adverts for MBL

Competitors; controls are put into place if competitors try to undercut

HRM Details of working hours of employees from different departments

Training and development programmes put together

Wages/salaries to employees, trained staff, well being of employees

Employees; the HRM department makes sure workers are safe, motivated etc

Engineering & Design

Engineering and design resources eg workstations and ideas from marketing dept

Research &conceptualization, feasibility assessment, preliminary design

Prototype of product/plan to convert resources optimally

Customers; design is controlled if customers complain of faults etc

Sales Supply of briefcases from the manufacturing dept and forecast of breakeven sales from accounts dept

Training the sales team, client identification, sales volume figures

Figures for production schedule for manufacturing dept, development of new business

Returns from customers, and annual sales figures

Purchasing & Warehousing

Raw materials from suppliers Storage of materials and stock control

Accurate stock details for both accounts and manufacturing dept

Quality control and stock system

Manufacturing Tools, raw materials, labour Production of briefcase, maintenance and repairs, quality control

Finished briefcase to send to warehousing

TQM and returns

Logistics & Dispatch

Schedule of deliveries from sales dept and finished stock

Dispatch of orders Delivery to customer Customer feedback on delivery

The flow of information throughout the departments is used at different levels of decision making within MBL. Decision making is an integral part of MBL this is because a majority of operations in this organization revolve around decisions made by the management and other key stakeholders in the organization. By using transaction processing systems we are able to collect the initial information used for decision making such as the number of orders that have been placed within a month or the amount of stock that is still left at the end of it. This information is then relayed for use within management information systems; these systems provide a fitting platform for good decision making (Kumar 2006 pg 1) such as planning the amount of briefcases to produce for the next month. At the very top are executive information systems which receive the reports etc from the management level and make strategic decisions such as relocating the manufacturing base to a cheaper location.

Here you can see that the information is input to the TPS, where it is processed and then the output is then used within MIS to provide input to SIS which then sends down the “controls” or decisions to both MIS and TPS levels.

I will now demonstrate how information passes through each department using a DFD (data flow diagram) which shows an overall map of organisational workings.

Key

Data process

External data entity

Data flows

Data store

Figure 1: Data Flow Diagram- Overall Organisational Workings

Figure 2: Data Flow Diagram- Departmental Workings

Strategic level of decision makingDecisions to support the business in long termProvides information to senior executives to aid strategic decision makingDecisions made at the Executive level then come down to both Management and Operational levels

Executive

Information SystemsLevel 0

Management level of decision makingLonger decision timeframe than operational level Used to plan and coordinate resources of business organisationOutput from this level used as input to Executive level

Management Information Systems

Level 1

Operational level of decision makingInfo systems such as scanners usedOutput from these systems such as stock control, production schedule and payroll is then used as input to the Management level

Transaction Processing Systems Level 2

Account-ing

Purchas-ing

HRM LogisticsEng & Design

Market-ing

Manufacturing

Sales

ACCOUNTING

MARKETING

LOGISTICSHRM

PURCHASING &

WAREHOUSIN

MANUFACTURING

ENGINEERING

CUSTOMER

SUPPLIER

Process customer order

Add customer data to records

MARKETING RECORDS

SALESUpdate sales schedule

Analyse purchasing data

Advert generation

Develop marketing mix

Customer details

Order instructions

Rece

ipt

Final design

Briefcase order

SALES ORDER FILE

Design advice to engineers

Process payment from customer

Validate order Production schedule

Briefcase design

PAYMENTS RECIEVED

Develop prototype of briefcase

Marketing offers and promotions

CAD plan

Image simulation

Manufacturing process plan

DESIGN DATA

Daily sales info

Request raw materials/toolsOrder instructionSales

ledger

Brea

k ev

en a

naly

sis

FINANCIAL ACCS

PRODUCTION FILE

Purchase requestOrder materials

Goods sold

PURCHASE ORDER FILE

Raw

mat

eria

ls

Quality control

Receipts for purchases

Record of profit or loss

Salary Payments

Check product availability

Payment note

Finished goods to storage

Budgeting for all departments

Sala

ry n

otes

Recruitment and training

Hire

or l

ayoff

sta

ff as

requ

ired

Send finished goods to despatch

Del

iver

y no

te

Despatch to customer

CUSTOME

SALES DEPARTMENT

Process order Update sales figures

Receive customer details

Sales order

Inst

ructi

ons

Daily sales figures

Forecast SalesRe

ciep

t

CUSTOMER DETAILS

PaymentBANK

SALES ORDERS

PURCHASING DEPARTMENT

Receive materials request

Catalogue parts and materials

SUPPLIER

INVENTORY

Ord

er m

ater

ials

Del

iver

y no

tes

Goods sold

Check stock levels Send materials to manufacturing dept

Update inventory levels

The nature of MBL’s organisation systems is shaped and governed by four main forces that are part of its environment. In order to operate successfully MBL must integrate its processes and systems into its internal and external environment.

A SWOT analysis has been completed so that thought can be given to how to turn weaknesses into strengths and threats into opportunities.

Legal and Political EnvironmentConsists of government laws and business legislation.International trade regulationsEmployment lawsConsumer protection

Economic EnvironmentElements such as growth, interest rates, inflation, exchange rates and other macroeconomic elements that affect MBL's business operationsConsumer confidenceImport/Export taxes

Cultural and Global EnvironmentCultural factors include the latest fashion trends, cultural behaviour and change in tastes and preferencesVarious factors such as environmental and ethical considerations will affect the demand for MBL's products.

Technological EnvironmentInformation and communications technology influences the nature of MBL.Changes in mobile technology, internet usage and IT usage all contribute to making MBL a more efficient and profitable business.

In order to work on turning weaknesses into strengths we must focus on replacing the old CAD systems with a new one. This can enhance both the speed and accuracy within the manufacturing department as well as assist the marketing department with revising final designs for the briefcase (H S Bawa 2004 pg 299)

Below is a comparative analysis of two different computer aides that are used within the manufacturing and design process.

Name AdvantagesCAD (Computer Aided Design) CAD is the use of computer technology for the process of design and design-

documentation.CAD is much faster and more accurate than conventional methods of designUnder CAD you will never have to repeat a design of any component. Once a component has been made it can be copied in all further other works within seconds, including any geometric transformation needed.Several professional CAD packages provide 3D visualization capabilities so designers can see the product from several different angles

CAM ( Computer Aided Manufacturing) CAM is is the use of computer software to control machine tools and related machinery within manufacturingWith CAM the total manufacturing activity is organized through the computer, which increases productivity greatlyCAM provides improved reliability since a better manufacturing method and better controls at the manufacturing stage makes the manufactured product much more reliableMost components of a CAM system would include integrated and diagnostic facilities which would require less maintenance than conventional manufacturing methods (P N Rao 2004 pg 9)

STRENGTHS1. Reliable products2. Competitive prices3. Tightly focused on a niche market4. Brand equity

WEAKNESSES 1. Production limited to 200 briefcases per week2. Outdated information systems and CAD systems3. Only distributed in the UK

OPPORTUNITIES1. Untapped market potential in Europe2. Could start producing laptop carriers 3. New manufacturing facility to raise production levels and incorporate modern production methods

THREATS1. Volume manufacturers could target MBL's niche market2. European legislation could restrict MBL's B2B sales

There are many different types of CAD systems to choose from, each offering a different design experience, which I will now describe in detail:

SpeedProduced much more quicklyModified very quickly

Flexibility

Allows designer to try out different colours and texturesEasily sent to remote locations (e.g. email)

CreativityRealistically renderedUsed to create realistic images and simulations

2D

Orthographic projection in which each view shows only two dimensions.The designs are made up of lines, circles, ovals, slots and curves. There is no "depth" to the design.Prices are cheap- TurboCAD 19 Deluxe 2D available for £81.69 and in some cases are available free (DRAFT IT V3 available to download for free at cadlogic.com)

2.5 D

Isometric, planometric, oblique and perspective views which show all 3 dimensions (L, B, H) in form of a drawing.This costs a little more than the 2D CAD software, you can purchase a 2.5D CAD software package from tensorcad.com for £163

3D

3D computer generated model which can be rotated 360 degrees on screen to be viewed at any angleTypes of 3D modelsWireframe model: object made up of series of connected linesSurface model: 3D model built up by drawing surfaces of an objectSolid model: 3D model built up of geometric shapes such as cone, cylinder, prisms and cuboidsA professional 3D CAD software package from solidworks.com could cost around £3,400

Advantages of CAD over traditional built design

The best CAD system to use for MBL would be the 3D CAD software since stylish /complex products can be designed using 3D surfacing, this is important because each briefcase design must be generated according to the marketing department specifications. Another feature of 3D CAD is parametric modeling. Parametric modeling allows many design iterations to be generated & evaluated quickly. 3D CAD data can also be imported directly in to CAM software, further reducing timescales and mistakes from interpretation of 2D drawings. It is also a long term investment for MBL since it can use the 3D CAD system to develop and design new briefcases.

The next step to acquiring a new CAD system would be to focus on undertaking an information system development process that would meet the needs of MBL. There are many approaches to ISD which all aim to build business information systems that meet the needs of and deliver business benefits to its end users (Z Hussain, 2009)

To begin with we will look at the SDLC (System Development Life Cycle) which is a conceptual model that depicts the phases that an information system goes through. These are: Planning, Analysis, Design, Implementation and Maintenance.

The traditional approach to building a new system follows the classical SDLC (systems development life cycle) model which is known as the waterfall approach.

The advantage of using the waterfall approach is that “each phase of the development process produces a clear and detailed documentation for the next phase. Because system requirements are accurately documented major mistakes can be minimized” (S Wang, H Wang 2012 pg 30)

However, a major disadvantage of using the waterfall approach is that the development process is a lengthy one. This can have be a hindrance since systems requirements can change in response to a change in the business environment and it would be expensive and time consuming to backtrack and make those relevant changes to the affected phases. The waterfall approach is also rigid since it requires the systems development team to complete each stage before moving on to the next.

Planning:The process of identifying and

understanding why a new information system

should be created

Analysis:Investigate what the new information system will do, look at the current system and investigate specific business needs

for the new system

Design:Design phase determines how new system will be

created and what the system specifications will

be

Implementation:Building the new

system based on the specifications of the

design phase. The new system replaces the old

one.

Maintenance:Improving the information

system to keep up with the innovation of

information technology. Eventually replacingthis system with a new one

will be inevitable

Below: Waterfall approach to constructing a new information system

There are other faster and more flexible approaches to systems development, two of which are JAD (Joint applications development) are and RAD (Rapid applications development)

RAD is a systems development approach that employs tools, techniques and methodologies designed to speed application development (G. W Reynolds et al 2009 pg 500) JAD is a group based tool for collecting user requirements and creating systems designs; users and stakeholders work together to analyse existing systems and define requirements for new ones(R. K. Rainer, E. Turban 2008)

Many organisations that rely on quick development of information systems are UK banks and building societies, since they need to process information and customers quickly and efficiently.

PLANNING

ANALYSIS

DESIGN

IMPLEMENTATION

NEW SYSTEM

After looking at both of these approaches it is clear that the best development process to choose is RAD, considering the current size of MBL and the need to have a new information system within the organisation quickly. This will also speed up the operations within MBL and increase the business’s effectiveness within the market.

The development of systems within MBL will require an information systems methodology. Information system methodologies have been developed to encourage a systematic approach to information systems planning, analysis and design. There are a number of methodologies that are categorized as either hard or soft.

Below is a table that shows the difference between hard and soft methodologies.

Advantages: The time required to develop the software is greatly reduced due to reduced requirement analysis and planning stage.All software prototypes produced can be kept for future use. This can save costs and increase speediness of process of software development.Client works with software as it's being developed, this way client can produce better feedback working with a live system as opposed to working with just documentation

Disadvantages:This method may not be useful for large complex , unique or highly complex projects.Success depends on the techinical skills of the developer.

RAD

Advantages:Involves group meeting with all users who jointly define system requirements. This makes is much more effective to use since system requirements are written through the cooperation of future users and development teams.This involvement reduces training costs.JAD is a rapid information gathering technique, which reduces the time it takes to develop an IS

Disadvantages: In a large organisation stakeholders can be in different parts of the country. It can be difficult to organise the group meeting.After the meeting many follow ups can be necessary, adding to the expense of development.This process faces all the problems that normal group work experiences e.g. one person may be more dominant in the planning and others are not able to put forward their ideas.

JAD

Hard methods Soft methods

SSADM

STRADIS

JSD

YSM

UML SSM ETHICSMultiview

KeySSADM- Soft systems analysis and design method STRADIS- Structured analysis and design of information systemsJSD- Jackson systems development YSM- Yourdon systems method UML-Unified Modelling Language SSM-Soft systems methodology ETHICS-Effective technical and human implementation of computer-based systems

Hard Systems Approach Soft Systems ApproachRigid techniques and procedures to provide unambiguous solutions to well-defined data and processing problems. Focused oncomputer implementationsLikely to have defined parameters

Loose framework of tools to be used at the discretion of the analyst.Focused on improvements to organizational problems.Creative, intuitive approach to problem-solving.

The illustration below is the spectrum of methodologies that are used within systems development.

Methodology How it worksSSADM This is a waterfall method and has a rigorous document led approach to system designSTRADIS Detailed stages approach to SD, concentrates on tools and techniques for a structured designJSD Structured SD method, emphasis on software rather than business requirementsYSM Structured approach that uses formal tools and techniques to build an information systemUML Focus on software system design that meets end users needs, flexibility to adapt to changing needsSSM Views systems in its holisitic context, flexible approach to it’s stages of developmentETHICS Socio-technological view on SD, focus on the interest of end user of the system

The recommended methodology for MBL is the ETHICS methodology. This is because the ETHICS model recognises the interaction between technology, people and the organisation. Integrating all of these entities within MBL is important since it is a growing business and needs to get the right balance to achieve its corporate goals. The benefits of using this method within MBL include:

End user participation within the system development process: this reduces the cost of training and reduces user resentment of the information systemJob development through end user suggested improvements: if the workers within MBL have job satisfaction this will enhance their efficiency and effectiveness within their roles.The ETHICS approach is relevant to the size of MBL, since it is a SME- this methodology is also useful in analysing and establishing the requirements of a business information system.There are 13 generic stages within ETHICS, which include organisational design, technical design and detailed design which examines

the technical side of the organisation.

Having a good computer network is equally as important as developing information systems. A computer network is a collection of computers or devices that are connected to share information and services. Many of the departments within MBL such as sales, engineering and design, HRM, manufacturing and accounting need to have a high functioning computer network so that data and information can be shared on a one-to-one and a one-to-many basis. For example, a good computer network has the potential to support applications such as teleconferencing, electronic commerce, distributed computing and digital libraries. Computer networks can either be restricted to the confines of MBL’s office buildings which are LAN’s (local area networks) or networks that are not physically confined which are WAN’s; these are networks for a very large geographical area, such as a country. WAN’s are made up of multiple LAN’s connected in different ways through the use of routers (K. C. Mansfield, 2009 pg 2)

A topology is the way in which individual computers or devices are connected. MBL currently has a basic token ring topology which often breaks down.

Ring Network-Used in LAN's (local area networks)-All computer nodes connected to one cable-This means if one computer node breaks down, the others will too.-This can disrupt communication between all computers.

Bus Network- One communication link where are computers are connected-Inexpensive to build and easy to add new node to the network by tapping into network link- Cable length is limited and therefore it limits the number of stations connected.

Star Network- Has a central hub (switch) as seen in the figure (left) information is transmitted from all the computers to the central hub- Information can pass through computers very quickly, - Whole network is reliant on central hub, which if it breaks down affects the rest of the network

The recommended network topology would be the hybrid network, since it can support MBL during its growth and the demand for flexibility; a well designed hybrid topology strengthens everything you want; speed, reliability, efficiency etc. As compared to most other topologies, this topology is reliable. It has better fault tolerance which is useful because fewer breakdowns mean less interruptions and more efficiency. The hybrid can also support a range of operating systems and protocols which makes it an ideal network for MBL as there will be many different devices such as printers, fax machines, scanners and software such as CAD etc used within the business that will be able to communicate with each other quickly and cheaply.

I would also suggest that once MBL has established itself within the global market in the future I would recommend the use of a hierarchical network, since it has a more structured setting and can handle a larger amount of users.

The area network that MBL could use is the LAN (local area network) because it is suited for a small business and is easy and cheap to set up. An advantage of having a LAN is that this can allow MBL to back up important files and databases and it is will be easy for wireless devices and external drivers to share files and information quickly and securely.

Mobile and wireless devices that can be used within the MBL are:

Device Uses to MBLLaptop Can link accounting and database system directly into office networkPDA Update customer details away from office, can be linked to office database system and used to store

customer dataSmart Phone Small compact and easy to carry, can access office network via Bluetooth and share data. Easy access to

emailWireless debit/credit card payment terminal

Enable customers to pay for goods securely

The growth of cloud computing has also impacted positively on the use of mobile devices, supporting more flexible working practices by providing services over the internet. This can help cut costs since many manufacturing companies decide to have virtual offices and use wireless devices (home based work) and web based storage which reduces overheads.

Hybrid Network- Uses a combination of two or more topologies, e.g. a combination of star, bus and ring topology - A hybrid network takes the most effective aspects of other topologies and brings them together - Chances of break down disruption are limited as it is connected to a main hub- hybrid network very flexible as it supports a range of protocols, hardware platforms and operating systems.

Heirachical - A hierarchical network consists of three layers; information is passed from top layer down to the relevant computer or device.- has the ability to handle many users- high maintenance costs compared to other topologies & its overall costs are much higher than others.

Below: illustration of how cloud computing works.

As you can see, the growth of the internet has had a huge impact on the way businesses run. This utilization of the internet has led to many start-up organizations becoming household names such as Amazon and EBay. Any transaction over the internet involving the transfer of goods, services or information is known as ecommerce (B C Satterlee, 2001 pg 1)

How it works:

There are many differences between ecommerce and traditional commerce, some of which we will examine:

Differences Traditional commerce E-commerceDisplay Physical retail stores allow customers to

touch and feel and in some cases interact with the merchandise.

Online retailers can only display items using pictures, graphics and text based product descriptions.

Expense Start up capital required to open a store is high, to rent property and other location expenses e.g. signs

Online retailing is much cheaper and does not require business owner to pay large overheads

Location Physical business can limit the amount of footfall from shoppers especially if they are not based in a major city, also retail businesses have a certain capacity limit can experience queues as well as have set opening/closing times.

Online retailers are not limited to one location and have no geographical boundaries and serve local national and international customers without queues and around the clock

Communication Face to face interaction and customer service is possible within a retail environment and retailers can resolve queries and complaints within minutes

Online retailers can find it difficult getting information across to the customer especially dealing with complaints via email, however, customers can interact with other customers and gain feedback about the merchant from other customers

Technology The technology used to run retail stores rarely needs to be changed

The technology used in ecommerce is constantly changing and there is a bigger need for them to keep up and adjust as it improves

Work processes Serving customer needs across all channels to drive repeat salesSelling products to drive revenueTargeted marketing of customers, eg, shop front displays, leaflets, vouchers, advertisingUpkeep of retail environment e.g. cleaning of displays and isles

Taking payment from customersPackaging goodsShipping the order to customer

There are many different business models that MBL could choose to sell their briefcases. These are:

The two feasible models for MBL would be the B2B and B2C e-commerce models simply because MBL is a manufacturer of briefcases and has the capacity to supply at wholesale level to wholesalers as well as retail level to individual customers whilst remaining profitable.

I will now look at the advantages and disadvantages of both of these models.

B2B:

Business models

B2BBusiness to business

commerce transactions

between businesses e.g. between

briefcase manufacturer and

wholesaler

C2CCustomer to

customerelectronically

facilitated transactions

between consumers e.g. online auction

site such as Ebay

GC2Government to

customerinvolves transactions between governent and consumers e.g. grants or loans to

SME

B2CBusiness to customer

selling the product directly to the

customer e.g. retail shop selling briefcases to

customers

MBL

MATERIALS SUPPLIER

COMPONENTS SUPPLIER

WHOLESALERBUY SIDE

WHOLESALER

WHOLESALER

SELL SIDE

B2B Business to Business model

Advantages:Fewer clients means better relationships with suppliers and buyersBuying raw materials and components direct from suppliers -without an intermediary- in large quantities means bigger discounts so MBL can reduce manufacturing costs and have a bigger profit margin when it sells finished briefcases to wholesalersB2B helps lower the cost of selling and marketing since the wholesalers/retailers that buy from MBL will cover those costsJIT methods can also enhance the efficiency of MBL since the company can have the track of good as to which place it has reached with the help of electronic commerce.

Disadvantages:Low barriers to entry to competition within B2B means that many manufacturers can end up taking your customersThe market is smaller than a B2C marketBeing dependent on a supplier for materials and components means that if any of the suppliers stop supplying or go out of business this can affect MBL’s businessThe same goes for its clients. Since the number of wholesalers is limited this would mean that during an economic downturn MBL could lose business.MBL would also be dependent on it’s wholesalers for business which would give the bargaining power to the wholesalers who could demand aggressive price reductions

B2C:

B2C Business to Customer model

Advantages:B2C is a larger market and unlike B2B does not require any bulk buying, an individual customer will have to pay the sticker price and will not bargainMBL has a target market across the globeB2C eliminates the middle man- MBL will sell directly to its customersAn individual, when compared to a business, is generally more likely to try a new product or service, especially if the cost and time commitment is lowWorkflow automation: MBL can ship, have a real time inventory accounting system which adjusts stock levels and site and location availability instantaneously

Disadvantages:A B2C firm has to spend money in many advertising channels, such as television, radio, Internet and newspapers, because it needs to attract a large number of clientsIndividual customers have a lower budgetNeed for customer support, since MBL will be trading with customers directly it will need well trained staff that can handle queries, returns, complaints etc

The business models that are chosen will be subject to a wider organisational environment, which I will now explain.

MBL

CUSTOMER

CUSTOMER

CUSTOMER

CUSTOMER

CUSTOMER

CUSTOMER

KeyMBL MBL has a physical boundary that it operates within which is classed as the internal environment e.g

the offices and manufacturing plant, the logical boundary is the rules and regulations that it follows e.g safety laws and working hours

Traditional commerce

Traditional commerce is also affected by the internal resources such as number of employees and the skill levels of managers and their ability to serve customers

Local environment

MBL must continuously monitor and adapt to the environment if it is to survive and prosper; being aware of environmental concerns and being eco friendly will help save costs and increase its credibility

National environment

Every organisation must not go beyond the laws of a country, which is why MBL must be aware of trading laws etc the national environment is not part of MBL’s physical boundary but it still falls under its logical boundary

Internet commerce

Once MBL starts trading via the internet the laws for each country(e,g VAT, import export charges) are different, it is important to know the trading regulations for the countries it does business with

International environment

As well as national impact on MBL, there are also international economic and social factors that can affect the business, if MBL is trading internationally it must keep up with the international trends as well as try to remain competitive within the global environment, in the future it could move its manufacturing base to Asia, where the cost of production is cheaper

MBL

To conclude, MBL will be able to gain a strategic advantage over its competitors by undertaking the changes that have been suggested; this will not only increase productivity but also increase its sales and profitability. Changing its inner structure such as its computer networks and information systems will make MBL more efficient and by continuously monitoring its environment for threats and opportunities MBL will continue to be successful.

References:

Bawa, H. S., 2004. Manufacturing Processes II. Tatanagar: McGraw- Hill Education, Pg 299

Hussain, Z., 2009. Organisational Information Systems. Pearson Education Limited

Kumar, P. K., 2006. Information system- Decision Making [web page] Available at: <http://www.indianmba.com/Faculty_Column/FC307/fc307.html> [Accessed: 16 March 2012]

Ludwig, V. B., 1976. General Systems Theory: Foundations, Developments, Applications. George Braziller

Mansfield,K. C. Antonakos J. L., 2009. Computer Networking from LAN's to WAN's: Hardware, Software and Security. Cengage Learning, Pg 2

Rainer, R. K., Turban E., 2008. Introduction to Information Systems: Supporting and Transforming Business. John Wiley and Sons, Pg 307

Rao, P. N., 2004. CAD/CAM Principles and Applications. Mc Graw Hill Education. Pg 9

Ratzan, L., 2004. Understanding Information Systems: What they do and why we need them. ALA Editions. Pg 1

Reynolds, G. W., 2009. Principles of Information Systems. Cengage Learning. Pg 500

Satterlee, B. C., 2001. E commerce: A Knowledge Base. iUniverse. Pg 1

Wang, S Wang, H., 2012. Information Systems Analysis and Design. Universal Publishers. Pg 30