Example 22 shows how the stakeholder management

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Principles of Information Systems
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Chapter 7 / Exercise 1
Principles of Information Systems
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Example 2.2 shows how the stakeholder management process could be used by an online retail company. Example 2.2: Evaluating the information needs of stakeholders Distribution Resources Co. (DRC) is a large, nation-wide company that sells products sourced from hundreds of suppliers around the country. DRC has a large central warehouse where it holds its inventory of many thousands of individual products. Customers use an online portal to select and pay for goods that are then picked by warehouse staff and dispatched around the country using subcontracted transport companies. DRC has a board of directors comprising three independent members and three senior executives. The board has only ever been interested in monitoring financial results for reporting to shareholders. DRC has always been a sales and marketing-driven company with territory managers located in six different regions. While the business is profitable, sales growth has been lower than target. The central purchasing, warehousing and logistics function is expected to satisfy customer orders within 24 hours of receiving the order. The human resources (HR) department recruits and trains a large number of casual employees who are mainly unskilled. These staff take customer orders, pick the goods and assemble them for dispatch, awaiting transport to customers. However, absenteeism and staff turnover are problems.
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Principles of Information Systems
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Chapter 7 / Exercise 1
Principles of Information Systems
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R:\Workgroups\CPA-Production\CPA Course Material\CPA 104 SMA\SMA-Subject-outline\146873_sma_m02_2nd-edn_301018 DTP: Mira 1st pages 2nd edn 08-11-18 MODULE 2 STUDY GUIDE | 107 DRC’s business is suffering because of the emergence of Amazon, whose business model is more sophisticated than that of DRC. The sales and marketing director, who sits on the board with the CEO and chief financial officer (CFO) is constantly critical of the company’s ability to compete due to out-of-stock products, picking errors (incorrect goods dispatched) and delivery delays, all of which contribute to an NPS that has reduced over the last two years. Dingxiang, the management accountant at DRC, wants to provide the most relevant information for management to assist them in dealing with these issues. To do this, Dingxiang will: perform the stakeholder grid analysis use the grid as a tool to provide relevant information to different functional managers use the grid to make recommendations to management. The following stakeholder grid classifies DRC’s stakeholders into four groups. For each group, different information needs to be provided. Sales and marketing Geographic business unit managers (Keep satisfied: Protect) High Low Low High Interest Power Board of directors Senior management (Key players) Employees (Minimise effort) Purchasing, warehousing and logistics HR (Keep informed: Show consideration) The stakeholder grid categorises the four groups by their power and interest in the organisational problem. Further detail of this categorisation is shown in the following list.

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