Project #3

Jake Mulder

Quinn Baker

Melita Cioe

Ha Van

TR 8:00 am

Table of Contents

1. Table of Contents 2

2. Introduction 3

3. Systems Project 4-5

4. Information Systems Project 6

5. Self Evaluations 7

6. References 8

Introduction

Systems have become the driving force in the business world. A system is defined as a goal-driven set of elements and their purposely-oriented, structured relations that produce measurable results outside the system, despite obstacles. The following report applies each part of this definition to the soft drink giant Pepsi. The different systems that may be used by Pepsi are highlighted, as are ways to measure those systems. Obstacles that arise in these systems are discussed as well. Using these and other systems, Pepsi will work to cut costs, improve productivity, and increase the wealth of its stock holders.

Systems Project

1. The business modeled here is PepsiCo.

Information Systems

Data

Water Bottling Bottled water

Plastic Molding plastic to make bottles Soft Drinks

Input Processing Output

2. The goal of this business system is to use information provided by information systems to cut the costs of its material inputs and processing. This goal was chosen because PepsiCo needs to reduce its costs in order to increase its bottom line. Without a tight hold on the costs of inputs, Pepsi will not be able to compete with Coke.

3. A measurable result of this business system is that the costs of inputs and processing should decrease by 3% over the next year. This shows that the information level is functioning correctly and being applied.

4. The economic view is important to companies. The performance of the business is based on how well the company can sell their product and how well they can produce the product. If the company can find ways to produce their product at a low cost while still making a product that the public wants to buy their profits will go through the roof.

The marketing view is another important approach. If a company has a good marketing program, selling the product should be easy. In the case of Pepsi the marketing department must try to get people to recognize the blue, red, and white symbols of Pepsi over the red and white symbols of Coke.

The product view is the most important view of the approach. If a company does not have a product or service then there can not be a company. The product has to be something that the public wants or needs and it has to be something that sells well to be a good product.

5. The marketing view is a big part of the business process. The marketing department has to determine whether or not there is even a demand for the product at hand. Then after deciding that there is a demand then a marketing plan needs to be developed. Once there is a plan that works then they need to continue to maintain a good marketing plan to help sell the product.

6. There are obstacles with any of the business views. With the ones listed above, companies must find ways to sell their products to the public. The marketing department must find out who their target market is and then find a way to successfully sell the product and continue doing so. With other business views companies must figure out how each view will work for their specific company and product.

7. With the marketing view there are a few different elements one can look at. A good marketing plan is essential for a business to sell their product. It is also essential to finding a target market. The marketing team must also find a way to continuously keep the consumer coming back to buy the product or possibly new products over competitors products.

There are 3 elements to this: e=3

There are 3 relationships to this: r = ((3-1)*3)/2 = 3

There are 8 states to this: s = 2^3 = 8

Information Systems Project

1. Pepsi Corporation relies on the marketing information system to create customers and brand name recognition. With a deep understanding of the market information system and competitive environment, Pepsi’s strategy will determine the overall focus, impact, and result of their marketing program. The core components of the marketing information system are:

§ Advertising- Identifying how to reach and build relationships with all potential and existing participants. This component helps produce more productive for Pepsi by enhancing brand name awareness.

§ Sales promotion- Target specific market segments and clearly meeting the needs better than other alternatives such as Coke. Sales promotion works as another form of advertising for Pepsi by using contests, coupons, and taste samples as a way to lure consumers.

§ Distribution- Offering incentives or purchase discounts for organizations to utilize Pepsi products making it convenient to customers all around the world.

§ Marketing Management- Concentrating on the market mix (product, price, promotion and place). Pepsi uses the 4 P’s of marketing to craft a marketing plan, which must reflect the wants and desire of target market. Marketing management depends greatly on market research.

§ Forecasting- Marketing research is important for their inbound and outbound logistic, adding values to the company. Data such as product surveys and sales analysis enable Pepsi to predict future activities, goals and improvements.

2. The marketing information system first emerged in late 1950 and was called sale orientation with the intention of selling what was produced. In 1970 it was realized that consumer needs and wants drove the whole process of a business and thus the birth of the market orientation surfaced. The future of the marketing information system is aimed on a personal marketing orientation or a one-to-one basis. Articles such as Tourism Management are saying that MIS is the framework for industry (Ritchie 439). Mark Colgate states that marketing information systems is sophisticated in retail banking (Colgate 139). Marketing will remain an essentially important aspect of operating a business effectively and functionally.

3.

Self Evaluations

Since I am an advertising and promotional major, using the marketing system to analyze Pepsi Co. strategies was very beneficial. It allowed me to see a little piece of what my future may hold. I think a major concern many face is graduating without enough experience in your field. And I know this wasn’t "a large experience" but every little bit helps. The more I am able to step into the world of advertising/marketing and see the different dynamics each hold in different businesses the more I will be able to effectively apply it to real life years later. So overall, I felt this project was a great learning tool and felt my group did a great job putting it all together. 

-Quinn Baker

BIS strength would be the motivation that each and everyone has to accomplish the assignment and cooperation. My greatest strength would be cooperation and dedication. We did really good and coordinated well with each other's busy schedule. It's hard to say if we needed improvement because it's impossible with our inconvenient schedule. More knowledge in the area of BIS. I've got a lot of insight on other perception, knowledge, and thoughts of others.

- Ha Van

I found this to be a valuable project. I’m a management major, and it interesting to look deeper into business information systems and see how they work. No doubt I will be using these systems when I get a job, so it is important to understand them now. The teamwork that we learned through this project is valuable as well. Finally, it was valuable to me to do drawing on Microsoft word. I am not familiar with drawing on this program and it expanded my knowledge.

- Jake Mulder

This project was fairly easy although some of the wording was a bit confusing on what you actually wanted. I still do not understand what the number of elements or states has to do with anything. I do not think that that I would ever be asked to do something like that. That could be changed to something more useful.

- Melita Cioe

References

1. Ritchie, RJB
 Tourism Management, Oct 2002, v23
 
2. Colgate, Mark
 The Sevice Industries Journal, Jan 2000, v20