Decision Support Systems of DSS for Coca-Cola in Australia
In any business organization, planning takes the center stage for the organization to achieve its goals. Different business organizations have long-term, short term and medium term plans. Coca Cola Company spends a lot of money in marketing with the aim of increasing its sales; hence marketing to the company is taken seriously. Marketers spend time and money investigating some of the factors that influence consumers and their patterns of purchasing goods. For these business organizations to achieve their goals, decision making becomes crucial. Organizations have now realized the value of decision support systems in making organizational decisions. This paper will look at the application of DSS for Coca cola in Australia.
Coca cola Business Goals in Australia
Business goals can be defined as the things that a company wants to achieve. Every company has its own goals that are different from the goals of other companies. Company goals depend on the ownership of the company, the period the company has been in the market and its size. Large business organizations work out their goals carefully in order to maximize their profits. For small businesses, their idea of being in business might only be making money. Coca Cola Company is one of the largest companies in the world and its operations in Australia are aimed at achieving financial, social and personal goals.
One of the fundamental reasons of establishing a business is to make money and that is what coca cola aims at achieving in Australia. For the company to make money, the implication is that profit must be made. Profit is the amount of money that remains for the company after deductions on expenses are made. Making high profits for Coca cola leads to good returns on investment for the customers (Horsley, Anderson, & Biddle, n.d).
Coca cola Company in Australia also has a financial aim of increasing the market share. Market share refers to the proportion of a product that a company is able to sell in relation to the overall market of the product. If a company has a large market share, this places it in a good position of making remarkable profits. By selling a large number of products a business organization makes profits regardless of the prices. Coca cola Company in Australia has the achievement of greater market share as one of its goals.
As a reputable company, coca cola finds it necessary to improve its performance and expand the operations. The company is approximated to be serving more than six million customers who consume its products. As a result, the company has to make available the right products to its customers at the right time. The company also aims at maximizing the profits hence the need to expand its operations to different places (Horsley, Anderson, & Biddle, n.d).
Since Coca cola is a big company, the work load in the company is usually large and challenging. For the employees to be proficient in their work and increase the profits of the company, it is important for them to have additional training. This training is aided by various computer programs. Employee training is one area that requires use of computerized systems to ensure that employees cope with the challenges of undertaking training while performing their duties. The information center of the company also requires computerized systems. The nature of the organization compels it to have excellent communication strategies in order to respond to customer and product issues in the most appropriate way.
Coca Cola Japan and DSS model
Before designing a decision support system, Coca cola Company in Japan was using oracle database and business intelligent software when dealing with systems of analyzing sales information (Schwartz, 2005). As the company continued expanding its business, it realized the importance of developing a DSS. Coca cola Company in Japan uses Teradata system which is centralized to improve the productivity of the company. The DSS for coca cola in Japan is a model-based DSS where vending machines are used to gather market information for managers to make decisions. It is located at the main data center of the company. The program assists the managers to know the products selling highly and the ones selling lowly for them to adjust their marketing strategies. Unlike traditional systems where employees did manual assortment, the computerized system relieves employees of the problems of doing manual assortment. The system is also speedy enough to constantly update vending machines and respond to customer needs swiftly (Schwartz, 2005).
DSS for Coca cola Japan is beneficial because it has increased the sales and reduced overtime costs. There are a number of decision problems that can be solved by DSS in Japan. For example, the system will solve the difficulty of knowing the number of machines a single employee can serve. Decisions of knowing how to improve the sales could also be solved through DSS since the company can monitor how the sales are increasing.
When a company manufactures a new product, one of the most difficult parts is making a decision on how to attract the targeted customers. The manager will have to adopt the procedure of making a decision using the DSS structure. The first stage of the decision making process is the intelligence section. The manager will first identify the objectives of the DSS. The first objective of this system is to attract market for a product which is targeting young energetic people especially athletes. The other objective of the system is to know the particular vending machines that will be targeted and whether the customers will accept the new product. After the manager identifies the objectives, the other step will be to collect data regarding the targeted young people. The data relates to the purchasing habits of the targeted group and assessing the viability of the move. Once enough data is collected, the manager will be in a position of identifying the problem to be solved through DSS. The problem identification is followed by owning the problem and strategizing on how to solve it (Horsley, Anderson, & Biddle, n.d).
After the manager states the problem to be solved through DSS, the next step is to choose a design model that will be used. There are different types of models and many techniques are used in designing the models. Application of models in DSS is an important step towards saving money or coming up with strategies that generate money for companies. In our case, the manager can use a demand forecasting model. With this model, it is possible to determine the demand of the new product that the company intends to bring into the market.
The manager will also require a distribution model which is solved using commercial software in conjunction with distribution center location models. As the manager identifies the models to be used, he will also consider possible alternatives after analyzing the market. Eventually, the manager will predict the outcomes of the system on whether the young people will embrace the new product or not. After this, the manager will validate the process to determine its reality.
Validation stage will be followed by choice among the different alternatives. The manager will select the best model and test it to see if it functions accordingly. The best model will be selected among the alternatives then it will be implemented in order to attract the targeted customers. The final procedure will be to test and verify the model to actually ensure that the company has achieved its objectives.
A DSS design is usually designed in order to solve a particular problem. We have seen that Coca cola is a large company that requires a decision support system in order to carry its operations properly. I will attempt to design a DSS for Coca Cola Company. The DSS will be comprised of different subsystems. The first subsystem of the DSS is the model Base which is comprised of different models such as the financial and special statistical models. The company is required to make various analyses on the progress of its sales. This model is beneficial to the company because it will be involved in making such analysis for the company. For instance, the company will need to analyze and compute the trends of its profits. This model will give the company the required capability to perform these functions (McDaniel & Gate, 1998).
Apart from the model subsystem, the DSS will be comprised of the user and knowledge subsystems. The user subsystem is designed for the users of DSS like the managers and other employees who use the system. The knowledge sub system is important when designing the DSS because it handles the technical parts of the design system. In addition, there should be a modeling component that is employed at higher levels to combine details from lower levels. For example, data from model building blocks is combined into higher levels. Model directory will also be important as it functions as catalogues for models and other software.
The DSS will require data pertaining to the purchasing styles of customers and how to maintain the customers. In the DSS, information on how to make good decisions that will influence customers positively will be available. Financial information of the company will be available in the DSS since one of the most important aspects that the company deals with is managing finances to make profits. Information on distribution will also be available for the company to monitor delivery of products to customers (Turban, Sharda, & Delen, 2010).
The users of the DSS are the senior employees and members of management of Coca cola Company. This is because they are the people involved in decision making processes and whose decisions have great impact on the company. The DSS is supposed to assist them make decisions that will impact the company positively. They are therefore supposed to be well versed with the DSS system for the system to be beneficial to the company.
In designing the user interface, it is important to take into consideration a number of factors to ensure that the interface is perfect. Interface is the communication between the users and the DSS system. There different issues such as security, accessibility, privacy and user friendliness associated with user interface. In the design of the interface, the designers should ensure they incorporate all the required access devices. Mechanisms should also be put in place to guarantee security and privacy by ensuring that outsiders do not gain access to the security data. It also covers phone communication to ensure that the DSS functions well without failure. User friendliness is also important to ensure that users have no problems. Designers make the interface user friendly by making user access easy. The user interface should also be designed in such a way that it will produce excellent results by providing accurate information (McDaniel & Gate, 1998).
Implementing DSS Component
The model that I have described in form of spreadsheets is referred to as variable growth model. The implementation of this model will be done using decision tables in excel. For this company, the variable growth model is used to indicate the growth of the company in terms of the sales it is making. This model shows the dividends and rate of return. The model shows the inputs where we have the rate of growth and outputs where we have dividends, price, cash coming in and current value.
In order for a company to make use of this model, a graph is usually plotted. This graph shows the prices of stock against the expected rate of return. This model plays an important role in decision making because it assists managers and the organization to make viable decisions. This model is one of the models that will be crucial in designing the DSS to be used by Coca cola Company in Australia.
The model will work on two assumptions the first one being that the organization will not make a loss. The other assumption that is made in using this model is that there will be differences between the actual rate of growth and the expected growth. This assumption is based on the notion that the model is aimed at measuring variable growth.
Decision support systems are important in business organizations since they improve decision making processes. Improvement in decision making processes in organizations has the impact of increasing the sales and profits of companies. Coca Cola Company embraced this system in Japan and attributed it with increased profits and many other benefits for the company. For instance, there was reduction in over time money paid to workers and increment in sales. As a result, the company has seen it important to adopt DSS in Australia. Generally, DSS has been beneficial to many business organizations that use it in their decision making processes.
Horsley, M., Anderson, S., & Biddle, I. (n.d). Business Studies. Web.
McDaniel, C., & Gate, R. (1998). Marketing research essentials. New York: Taylor and Francis.
Schwartz, d. (2005). Coca-cola Japan puts the fizz back in vending machine sales.
Turban, E., Sharda, R., & Delen, D. (2010). Decision Support and Business Intelligence Systems. California: Prentice Hall.