Decision Support System (MIS 31.05.2021)

Decision Support System

Decision support systems (DSS) are interactive software-based systems intended to help managers in decision-making by accessing large volumes of information generated from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.

 

DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself. The decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

 

A decision support system is that system which helps the management in taking the business decisions.

 

It is a system which allow human-machine interface whereby, the decision-maker possess control throughout the decision-making process.

 

It has one primary objective that is to provide the managers with the necessary information for making intelligent decisions. This approach not only helps in bringing decision-making information directly to the executives, but also goes one step further than typical management information systems by allowing decision-maker to interact with the computer.

 

In this way, the computer is simply a tool, which helps the executives in evaluation of the alternatives so that they may reach on an effective decision. The ability of an individual to retail control over the decision-making process is not only useful to solve well-structured problems but also helps in solving semi structured and unstructured problems.

 

Thus, Decision Support System (DSS) is a specialized MIS designed to support an executives’ skills at all stages of decision making i.e. problem identification, selecting relevant data, picking the approach to be used in decision making and evaluating the alternative courses of action.

 

A decision support system must generate information in such a form that executives may understand and at a time when such an information is needed and place the information under the direct control of the executives. Thus, the DSS enables the business executives to take the efficient, effective and economic decisions.

 

Decision making is an important part managing organizations successfully. Decision support systems (DSS) is a computer-based software application system where the business data is analysed in the form of information and presents it to the user so that the user can take meaningful business decisions more easily. It is intended to help managers in decision-making by accessing large volumes of information produced from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.

 

DSS uses the summary information, exceptions, patterns, and trends using the models analytically. A decision support system helps in decision-making it doesn’t mean that it does necessarily give a proper decision itself. The decision makers or managers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make right decisions.

 

Programmed and Non-programmed Decisions

There are two types of decisions - programmed and non-programmed decisions.

Programmed decisions are basically automated processes, general routine work, where −

·      These decisions have been taken several times.

·      These decisions follow some guidelines or rules.

For example, selecting a reorder level for inventories, is a programmed decision.

 

 

Non-programmed decisions occur in unusual and non-addressed situations, so −

·      It would be a new decision.

·      There will not be any rules to follow.

·      These decisions are made based on the available information.

·      These decisions are based on the manager's discretion, instinct, perception and judgment.

For example, investing in a new technology is a non-programmed decision.

 

Decision support systems generally involve non-programmed decisions. Therefore, there will be no exact report, content, or format for these systems. Reports are generated on the fly.

 

Attributes of a DSS

·      Adaptability and flexibility

·      High level of Interactivity

·      Ease of use

·      Efficiency and effectiveness

·      Complete control by decision-makers

·      Ease of development

·      Extendibility

·      Support for modelling and analysis

·      Support for data access

·      Standalone, integrated, and Web-based

 

Characteristics of a DSS

·      Support for decision-makers in semi-structured and unstructured problems.

·      Support for managers at various managerial levels, ranging from top executive to line managers.

·      Support for individuals and groups. Less structured problems often requires the involvement of several individuals from different departments and organization level.

·      Support for interdependent or sequential decisions.

·      Support for intelligence, design, choice, and implementation.

·      Support for variety of decision processes and styles.

·      DSSs are adaptive over time.

Features of Decision Support System:

(a) It is a way to organize information intended for use in decision-making. It envelope the use of a database for a specific decision making process. A decision support system does not automate transformation performed on data nor simply provide output in the form of report rather it supports the decision makers problem solving approach.

 

(b) A DSS allow the decision-maker to interact in a natural manner due to the careful design of the user interface.

 

(c) Decision support systems are designed to help support decisions that are formulated as semi structured, complex problem. These problems remain resistant to complete computerization.

 

(d) A DSS may be constructed to support one-time decision, those that are infrequent; however, the type of problem or opportunity best addressed through use of a DSS is one that requires human judgment.

 

(e) A decision support system is typically designed for either a particular decision-maker or a group of decision-makers. This allows the system designer to customize important system features to adapt to the type of representations.

 

(f) Rather than building a specific DSS from scratch, a system analyst can use a package of interrelated hardware and software called a DSS generator.

 

(g) A decision support system is best conceptualized as a process instead of a product.

Social Marketing (Service Marketing 31.05.2021)

Social Marketing

Social marketing is an approach used to develop activities aimed at changing or maintaining people’s behaviour for the benefit of individuals and society as a whole.

 

Meaning:

Social marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioural goals for a social good. For example, this may include asking people not to smoke in public areas, asking them to use seat belts or prompting to make them follow speed limits.

 

The primary aim of social marketing is ‘social good’, whereas in commercial marketing the aim is primarily ‘financial’. This does not mean that commercial marketers cannot contribute to achievement of social good.

 

Applications of Social Marketing:

1. Health promotion campaigns in India and AIDS awareness programmes are largely using social marketing, and social workers are largely working for it. Most of the social workers are professionally trained for this particular task.

2. Anti-tobacco campaigns.

3. Anti-drug campaigns.

4. Anti-pollution campaigns.

5. Road safety campaigns.

6. Anti-dowry campaigns.

7. Protection of girl child campaign.

8. Campaign against the use of plastic bags.

9. Green marketing campaign.

 

Social marketing applies a customer-oriented approach, and uses the concepts and tools used by com­mercial marketers in pursuit of social goals such as anti-smoking campaigns or fund raising for NGOs.

 

Advantages of Social Marketing:

Social marketing—a new marketing tool—can be a great asset if used properly. The beneficial effects of social marketing for a business can be tremendous, but one must remember that it must be used in the most efficient possible way.

 

Social marketing allows businesses and web sites to gain popularity over the Internet by using different types of social media available, such as blogs, video and photo sharing sites, social networking sites and social bookmarking web sites.

 

There are six distinct advantages of social marketing that make it a vital tool to any marketing campaign:

 

1. Promotes consumption of socially desirable products.

2. Promotes health consciousness in people and helps them adopt a healthier lifestyle.

3. It helps in green marketing initiatives.

4. It helps to eradicate social evils that affect the society and quality of life.

5. Social marketing is one of the cheapest ways of marketing.

6. One of the best advantages of social marketing is that anyone can take advantage of it, even from their own home.

 

Social marketing is commonly used for causes like:

 

Health and safety, including:

·      Anti-smoking

·      Anti-drug

·      Promoting exercise and healthy eating

·      Safe driving

·      Railroad station safety

 

 

Environmental causes, including:

·      Anti-deforestation

·      Anti-littering

·      Endangered species awareness

 

Social activism, including:

·      Illuminating struggles that people of color, people with disabilities, etc. face, then inspiring people to fight against mechanisms that create inequality

·      Anti-bullying

·      Fighting gender stereotypes

 

Who initiates these social marketing campaigns?

Non-profit organizations and charities run the majority of social marketing campaigns. Government organizations, highway safety coalitions, and emergency services (police, fire, ambulance) run them as well. But social marketing is not out of the question if you’re a commercial business. Commercial brands will sometimes run social marketing campaigns for causes they are passionate about.

 

What is NOT social marketing?

Often, people get confused about what social marketing is and isn’t. So, before we keep going, let’s break down 3 types of marketing that do NOT count as social marketing.

 

1. Social Media Marketing: Many people think social marketing is the same thing as social media marketing (marketing on social networks like Facebook, Twitter, Instagram, and YouTube). Well, that’s not true. Sometimes, social media will be used to spread, and generate buzz around, social marketing campaigns. However, most marketing on social media is oriented towards promoting a product or service. Those viral tweets by Wendy’s, and that influencer’s promotion of Fashion Nova on Instagram, are definitely not social marketing.

 

2. Self-Serving Donations: If a company publicizes a donation they make to a charity or cause, that isn’t social marketing, because their aim is partially to boost their own reputation.

 

3. Marketing “green” or “charity tie-in” products: If a company is marketing its own line of eco-friendly water bottles, hybrid cars, reusable lunch containers, or other “green” products, this doesn’t count as social marketing. The marketing of products with a charitable donation tie-in (such as TOMS) doesn’t count either. In both of these examples, the primary focus is on selling a product. Meanwhile, with social marketing, the focus is solely on changing behaviors for the public good.

 

Here’s an example:

1. An ad with alarming stats on the number of disposable water bottles thrown out per year, which promotes Hydro Flask reusable bottles as environmentally friendly, and that is made by Hydro Flask to sell its own bottles, is not social marketing.

 

2. Meanwhile, a general campaign to promote reusable water bottles, made by an environmental organization, that does not promote a specific brand of reusable bottle, is social marketing.

 

Internal Retail Strategy Analysis (SWOT Analysis) (Retail Strategy 31.05.2021)

Internal Retail Strategy Analysis (SWOT Analysis)

What Is Internal Analysis?

Internal Analysis focuses on evaluating all aspects of the organization itself. Although internal analysis can sometimes take into account the actions of external organizations or market-wide shifts, it is largely related to the inherent traits of the organization at hand.

 

For example, internal analysis can allow you to identify both strong and weak aspects of your organization, without taking into account the performance of external organizations.

 

Here’s another way to think about internal analysis: if your organization was the only one that existed — meaning your organization had no competition — and your business environment was entirely neutral — meaning it didn’t in any way affect your organization — then what factors would you consider when analysing your organization?

 

Why Is Internal Analysis Important?

In the context of strategic management, internal analysis is crucial for a few reasons. Your organization might be spending too much in some areas due to internal inefficiencies, or, alternatively, your organization could be leaving money on the table. The only way to reveal these things and get a true understanding of how resources are being used in your organization is by means of internal analysis.

 

SWOT Analysis

Definition: SWOT Analysis is a strategic management tool that assists an enterprise in discerning their internal Strengths, and Weaknesses, and external Opportunities, and Threats, to determine its competitive position in the market.

 

The SWOT Analysis helps in ascertaining the factors that influences the efficiency and effectiveness of any product, project, or business entity. These are explained as under:

 

  

 

1. Strengths: The strengths of a company are the core competencies, in which the business has an edge over its competitors. It covers aspects such as:

o  Strong financial condition

o  A large customer base.

o  Strong brand name or a unique product

o  Latest technology or patents

o  Influential advertising and promotion.

o  Cost Advantage

o  Quality in product and customer service.

 

2. Weaknesses: Weaknesses can be described as the areas of limitations of the business, that hinders the growth of the company and even leads to a strategic disadvantage. These are the areas which need improvement to perform competitively. It encompasses:

o  Obsolete facilities and outdated technology.

o  The unit cost of a product is higher than the competitors.

o  No or less internal control.

o  Less quality in products and services offered.

o  Weak brand image.

o  Financial condition is not very sound.

o  Underutilization of plant capacity.

o  Lack of major skills or competencies, and intellectual capital.

 

3. Opportunities: Opportunities can be understood as the condition, which is favourable or beneficial to the organization in the business environment, that the business could exploit to gain an advantage. These are:

o  Looking for areas of development, by utilizing skills and technology to enter new markets

o  Adding new products to the existing product line to increase customer base.

o  Forward and backward integration.

o  Acquiring rivals businesses.

o  Joint ventures, mergers and alliances to increase market coverage.

 

4. Threats: Threat implies an adverse condition which can lead the business enterprise to losses, and can also harm the overall position and reputation of the enterprise. It entails:

o  A downtrend in market growth.

o  A new entrant to the market.

o  Substitute products that can decrease sales.

o  Increasing the bargaining power of customers and suppliers.

o  New regulatory requirements

o  Changes in a demographic environment that will decrease demand for firm’s product.

 

 

 

Importance of SWOT Analysis

 

1. Logical framework of analysis: SWOT Analysis equips the management with an insightful framework for eliminating issues in a systematic manner, that can influence the condition of business, formulation of various strategies and their selection.

 

2. Presents a comparative report: The analysis facilitates in presenting systematic information about the internal and external environment. This helps in making a comparison of external opportunities and threats with internal strengths and weaknesses, as well as reconciling the internal and external business environment, to help the managers in choosing the best strategy, by considering various patterns.

 

3. Strategy Identification: Every organization has its strengths weakness, opportunities and threats. So, the SWOT Analysis acts as a guide to the strategist to reckon the exact position, i.e., where the business stands, so as to identify the primary objective of the strategy under consideration.

 

SWOT Analysis helps the company’s management in designing a business model specific to the firm. The model perfectly suits or aligns the company’s resources or competencies, as per the needs of the business environment, wherein the organization operates and helps in gaining a competitive advantage over the rivals. This will increase the profitability, market share and the chances to survive in the dynamic competitive business environment.