Checkers Hyper uses Information Systems to become South Africa’s Leading Retailer
Checkers Hyper is the South African’s largest retailer, earning billions of Rands on sales in the recent fiscal years. Checkers currently serves millions of South African customers every week. Checkers Hyper’s rise to prominence is due in no small part to their use of information systems.
One of the keys to this success was the implementation of Retail Link, a supply-chain management system. This system, unique when initially implemented in the mid-1980s, allowed Checkers Hyper’s suppliers to directly access the inventory levels and sales information of their products at any of Checkers Hyper’s more than ten thousand stores. Using Retail Link, suppliers can analyse how well their products are selling at one or more Checkers Hyper stores, with a range of reporting options. Further, Checkers Hyper requires the suppliers to use Retail Link to manage their own inventory levels. If a supplier feels that their products are selling out too quickly, they can use Retail Link to petition Checkers to raise the levels of inventory for their products. This has essentially allowed Checkers Hyper to “hire” thousands of product managers, all of whom have a vested interest in the products they are managing. This revolutionary approach to managing inventory has allowed Checkers Hyper to continue to drive prices down and respond to market forces quickly.
Today, Checkers Hyper continues to innovate with information technology. Using its tremendous market presence, any technology that Checkers Hyper requires its suppliers to implement immediately becomes a business standard.
Case study adapted from Fowler, J., Smith B., and Bourgeois, D. (2022). “Information Systems for Business and Beyond, Fanshawe College Pressbooks, London, Ontario.
| Q.1.1. | Of the various types of Management Information Systems available to many organisations, write a half-page report advising on two potential information systems that could be recommended to Checker’s Hyper for its operations. | (20 Marks) | ||
| Q.1.2. | Checkers Hyper discussed how the company used information technology to become South Africa’s leading retailer. Checkers Hyper has continued to improve and remain a leader in the use of technology. Do some original research and write a half-page report detailing a technology that Checkers Hyper has recently implemented or is pioneering. Discuss the features of the technology, as well as its limitations and advantages. | (20 Marks) |
| Assignment Topic 2 (Marks: 40) | ||||
| Referring to the Case study provided in Q1, read the questions below and answer all the questions that follow. | ||||
| Q.2.1. | Do some research and identify possible readings on potential technologies that Checkers Hyper could have used to address some of the issues the organisation experienced. | (20 Marks) | ||
| Q.2.2. | Write a half-a-page report detailing how ‘buyer power’ and ‘supplier power’ may have influenced Checker’s Hyper’s choice of competitive advantage strategy. | (20 Marks) | ||
| Assignment Topic 3 (Marks: 20) | ||||
| Answer all the questions that follow. | ||||
| Q.3.1. | Of the following primary components of an information system (data, information, databases, and processes), which do you think are the most important to the success of a business organisation? Write a half-page answer to this question supporting your argument(s). | (20 Marks) | ||
Answers to Above Case Study on Information Systems
Answer 1: Information systems are crucial to an organisation’s performance and the two potential information systems that could be recommended to Checker’s Hyper for its operations are
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