CASE No. 1 Name of the Business Studied: Munsterific La Salle Bacolod Branch Type of Business: Retail/Franchise Business 1.

. What types of information systems does the company have? What subsystems does it have? Describe each information system and explain its purpose. Munsterific - La Salle has transaction processing systems that are computer-based. Transaction processing systems (TPS) keeps track of daily business transactions. It provides a way to collect, process, store, display modify or cancel transactions. This includes retail management systems that is used to record point-of-sale business transactions since the business is a convenience store business. Another one is the payroll processing system. This TPS subsystem is responsible for the payment of employees and filling of employment taxes. This includes keeping track of hours, calculating wages, withholding taxes and other deductions, printing and delivering checks and paying employment taxes to the government. The business also has a system that is responsible for receiving consigned goods that are endorsed to the the franchise. This system is a partly manual and partly computer-based. 2. Who are the major external users of company information? The major internal users? What information is produced for each set of users? The major external users of Munsterific La Salle are its franchisor or suppliers, consignor, its customers, creditors and the government, while its major internal users are the operators or the franchisee, the management and its employees. The information produced for each set of users suits their needs. The information needed by internal users is that information which is helpful in making economic decisions. For example, the franchisee needs to know the financial position of the business in order for him to make a decision. While the manager wants a summary of business transactions in order to know how much sale was made and make decisions that will improve the operation of the business. The employees also need to know how much they paid through paychecks and how much are deducted from their salaries for benefits and other dues. The information needed by the external users may greatly affect the decisions of the internal users. For example, Munsterific La Salle is engaged in many consigning activities. As a consignee, the business needs to provide to the consignors information on how much consigned goods were sold and how much were unsold due to damage or spoilage. As for the government, it needs information to determine the credibility of tax returns filed in behalf of the company while the creditors need to see company information to know if the company is credit-worthy or not. The supplier/franchisor, on the other hand, wants information that pertains to how much sale the company is making so that they will continue to supply the franchise. Lastly, the customers are in need of information that will help them assess the stability of the supplies of the business. 3. For two systems outputs, identify the decisions that are made with that information, the data collected to produce the information, how the data are stored and processed to produce the information, and how instructions and procedures are given to the system and its users. Use the characteristics of

information (reliable, timely, etc.) to evaluate the usefulness of the information provided. The retail management system of the business generates information to see how well the business is doing like how much sales were made or even the effectiveness of the inventory management. This information will help create decisions like planning strategies to maximize sale and more efficient management of inventories. In other words, the business can make economic decisions that are better for the company out of the information generated. To generate the information that will help users make decisions, data from the transactions are collected. These data pertains to the items sold, cost, amount paid, etc. These data are recognized through a POS scanner which is connected to the PC that runs the RMS software (Munsterific uses MYOB Retail Manager). Data are then transferred to the computer which will process these data through summarizing sales transaction or even alerting you if stocks are running low. This will then produce information, from stock levels and sales to GST and profits, for the users needs. And since it is a computer -based system, instructions and procedures are given through designated computer command and controls in the system while users are presumed to have knowledge of the information. Meanwhile, the company also generates information from system that is responsible for the consigned inventories that are endorsed in the business. This information helps the business, being a consignee, to decide whether to accept the endorsements or not. But before that, data like the endorsed items received and sold, the quantity, the cost and even the unsold items are manually recorded in ledger or a log book which are then encoded in Excel to summarize the entire transactions pertaining to the consigned goods. The information generated is immediately sent to the consignor, complete with all the details including the information about inventories sold, unsold and damaged. So in general, information generated from the systems mentioned above are essential to the business and its users. 4. What strategy is the company pursuing? How do its AIS help to achieve that strategy? Based on our interview, Munsterific La Salle is planning to maximize sales through effective inventory management. With the help of its AIS, specifically the Retail Management System, the business can have substantial information about its inventories and how they are turned over. In that way, they can sell items in their inventories and replenish it on time. Thus, sales are maximized and high profits are earned.

Submitted by: GROUP 5 Abalajon, Laila Marie Allado, Nile Alric Belonio, April Mar Claracay, Josie Pearl