Case There is a slew of bakery businesses set up across Singapore. While some bakery businesses have physical stalls, others only have a digital storefront. Still others have a mix of physical stalls and digital storefronts. The government has also permitted home bakeries and has made setting up home bakeries straightforward. Moreover, obtaining the ingredients required to make pastries, cakes, muffins, and other bakery products is easy. A couple (John and Mary) also joined the bakery business bandwagon. Their bakery business— DelicieuxBakery—is an online baking business established during COVID-19. The couple acquired their baking skills by watching YouTube videos. Moreover, various places (e.g., community centres) offer baking lessons, and John has attended some. John and Mary took turns delivering the orders to their customers. The business of DelicieuxBakery was quite good during the pandemic period. However, DelicieuxBakery’s business has been relatively poor post-pandemic. This is not surprising, given that individuals can move around freely. Moreover, many bubble tea shops are set up across the island, and Singapore residents love bubble tea. The couple came up with a new direction for their business by allowing customers to customise the bakery ingredients used in the bakes through their website. Given that the Singapore government encourages a healthy lifestyle, the couple believed the new business concept would work. For example, customers can reduce the sugar in the pastries or add blueberries and other fruits to their pastries. In addition, they allow customers to add special ingredients, such as rare wine imported from France. The prices of these pastries and other customised bakery products are significantly higher than pastries and bakery products of other bakeries. They tested the new business concept with a small set of customers. The business concept was well-received by customers. The couple was considering expanding their business. However, it is difficult to recruit workers in F&B, including bakeries, due to the working conditions. In addition, bakery business expansion requires expensive equipment such as ovens and refrigerators and significant capital. Some of this capital goes into the salary payment of workers, the high rental costs, and online services employed by bakeries. However, the couple decided to go ahead with their expansion plans. The couple further rented a physical stall for their bakery business. DelicieuxBakery managed to attain significant success eventually. Three years have passed. Confident in their business concept, the couple expands their bakery business to Southeast Asia. DelicieuxBakery has set up several bakery shops in various Southeast Asian countries. The workers at each shop report to the shop supervisor and the supervisor managing the operations in that country. Further, it is possible that workers of a shop report to other supervisors of another shop due to the unique skills that these workers have. DelicieuxBakery’s customers in these countries can also order online. The couple plans to employ more technologies to increase their digital business footprint and to attract and retain customers. [This is a fictitious case.]
(c) Analyse business environments, strategies, and the use of IS associated with DelicieuxBakery by:
(i) Identifying the formal reporting structure in its overseas expansion. Explain your answers with case facts.
(ii) Providing an example of data that DelicieuxBakery can capture and explain how it can be useful to DelicieuxBakery.
(iii) Discussing one (1) way in which national culture will impact IT (Given that IT systems will change as DelicieuxBakery expands to Southeast Asia).
DelicieuxBakery’s expansion into Southeast Asia marks a significant milestone in its journey from a small online bakery business in Singapore to a regional player in the bakery industry. This expansion has necessitated changes in its business environment, strategies, and the use of Information Systems (IS). Let’s analyze these aspects in detail:
Formal Reporting Structure in Overseas Expansion: DelicieuxBakery’s overseas expansion has led to the establishment of multiple bakery shops in various Southeast Asian countries. To effectively manage these operations, a formal reporting structure has been put in place. The case mentions that workers at each shop report to the shop supervisor, who, in turn, reports to the supervisor managing the operations in that specific country.
This hierarchical reporting structure ensures clear lines of communication and accountability. It allows for efficient management and supervision of daily operations at each shop while also providing a centralized oversight mechanism through country-level supervisors. Additionally, the case suggests that workers with unique skills might report to supervisors from different shops, highlighting flexibility within the reporting structure to accommodate specialized expertise.
Data Capture and Utilization: In today’s digital age, data is a valuable asset for businesses. DelicieuxBakery can capture various types of data to enhance its operations and customer experience. One example of data that can be collected is customer preferences and order history. By tracking what customers customize in their bakery products through the website (e.g., reduced sugar, added fruits, special ingredients), DelicieuxBakery can build a comprehensive customer profile.
This data can be useful in several ways:
Personalized Marketing: DelicieuxBakery can use customer preferences to personalize marketing efforts. For instance, sending targeted promotions or product recommendations based on past orders.
Inventory Management: Analyzing which customizations are most popular can help in optimizing inventory levels and ingredient procurement.
Product Development: Identifying trends in customer customizations can inform product development and innovation, ensuring that the bakery offers items aligned with customer preferences.
Impact of National Culture on IT: As DelicieuxBakery expands into Southeast Asia, it must consider the impact of national culture on its Information Technology (IT) systems. National culture influences how people perceive and interact with technology. One way in which this may manifest is in user interface design and user experience.
For instance, different countries may have varying preferences for the layout, language, and aesthetics of websites and mobile apps. DelicieuxBakery will need to adapt its digital platforms to align with local cultural norms and preferences. This might involve offering multilingual interfaces, incorporating culturally relevant visuals and content, and ensuring that the user experience is intuitive and familiar to the local audience.
Furthermore, payment preferences can vary widely across cultures. DelicieuxBakery will need to integrate payment gateways that are commonly used and trusted in each Southeast Asian country it operates in. This may include accepting a diverse range of payment methods, such as digital wallets, local bank transfers, and credit cards, to cater to the preferences of customers in each market.
In conclusion, DelicieuxBakery’s expansion into Southeast Asia represents a significant business venture that requires careful consideration of formal reporting structures, data utilization, and the impact of national culture on its IT systems. By effectively managing these aspects, DelicieuxBakery can position itself for success in the dynamic and diverse Southeast Asian bakery market.
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