bisproject2.files.wordpress.com€¦ · Web view3 = no sure; 4=agree; 5 = strongly agree In question 3, the respondents require to show the number from their last experience. After

BSc Hons Information Technology and

Business Information SystemsBIS3324

Strategic Management and Information Systems Group Project

Private and Confidential

CMT3324 - Group Project(Group 2)

2 of 41

Information System in

Traditional Chinese Herbal Tea Industry

Private and Confidential


Team No. 2

Student Name Student No.

Leader Name: Raymond M00501669

Team Member’s Name: Alan M00501672

Jemy M00501665

Samuel M00501664

3 of 41


Table of Contents

1. Project Objectives...................................................................6

2. Company background...........................................................7

3. Methodology.............................................................................9

4. Analysis the Strategic Environment................................10

5. Newly Implemented I.T. Systems......................................18

6. Description of strategic IT system(s) to be used.........20Instant Order@E-coupon..............................................................................................20Smart E-order............................................................................................................... 21

Strategic Management View on New I.T.Systems.............21

Implementation of I.T. System (Physical View)..................22

Implementation of I.T. System (Logical View)....................22

7. Information Requirement....................................................23

8. Cost and Benefit Analysis..................................................25

9. Management Inspirations of Information Management........................................................................................................26

Business Case Studies...................................................................................................26i) Restaurant Industry................................................................................................26ii) YAMATOYA Chef Restaurant............................................................................27

10. Conclusion............................................................................28

11. Self-Evaluation / Reflection..............................................29

12. Reference..............................................................................30Major Milestones..........................................................................................................31Interview Letter for Hung Fook Tung Executive Director............................................32Interview Dialog...........................................................................................................33Consumer Survey Result Summary Report...................................................................37Study Plan.....................................................................................................................38Minutes.........................................................................................................................39

4 of 41


1. Project Objectives

Nowadays, business decision makers should adopt progressive way to overcome the

business competition, understanding customer favors and keep customers’ loyalty is the

important mission. Meanwhile, reducing the business cost is another significant key to

make the business win and success. Therefore, business operation models have to

integrate with appropriate Information System (I.S.) in competitive business environment

so that the company will be able to increase market share.

Strategy Information System (I.S.) is defined as crucial system that helps company

or organization improves their business model strategy and organizational operations. It is

used to stimulate the reaction time to company environmental changes such as CRM,

POS, ERP system …etc. They help in production low cost quality products. Information

systems have traditionally been considered primarily in terms of their effects on

individual organizations. (Blake and Gerard THE INFORMATION SYSTEM AS A

COMPETITIVE WEAPON, page 1)

The objective of our investigation will focus on local traditional herbal tea company

“Hung Fook Tong Holding Ltd”. Based on our observations and interviews to the

company, our project team had explored significant findings from this company. These

findings included the company’s strategic approaches; this led the understanding

outcomes from the information in the strategic environment that was believed to be

significant to strategic manager.

5 of 41


2. Company background

Hung Fook Tong Holding Ltd.’ (refer to ‘Hung Fook Tong’ thereafter) is a famous

local Chinese Herbal Tea manufacturer. With its biggest selling network covered with

multiples store areas, the company dominant Hong Kong retails market in selling

traditional herbal tea. Hung Fook Tong is the biggest herbal tea group in Hong Kong and

their Holdings started in 1980s. They have more than 700 staff members, 70 herbal tea

houses and self-invested factories in Hong Kong, a sales network with extensive coverage

in Hong Kong and overseas. The main products of Hung Fook Tong are Bottled Herbal

Beverage Series, Home-made Herbal Jelly Series and Home-made Soup Series. The

Group has become one of the largest herbal tea enterprises in Hong Kong with over 80

retail points, a central kitchen for producing freshly-made health products, a factory for

bottled herbal tea drinks. Hung Fook Tong also operates the first herbal chain store

"Health Express" in MTR stations. In 2007, it launched a new concept store "Herbal Tea

& Soup Square" to provide herbal tea drink and soup, and also set up its first herbal tea

outlet in Shenzhen. In 2008, Hung Fook Tong has further enhanced its "feel-like-home"

concept by the grand opening of "HFT Mall Square" in Paradise Mall. It is a 1,000 square

feet concept store conveying leisure, culture, arts, healthy diet and life style which brings

people a comfortable and healthy home.

In 2002, Hung Fook Tong was awarded "Hong Kong Top Brand" and "Superbrands".

According to Nielsen, Hung Fook Tong was ranked the first in terms of sales volume and

sales value in the wellness drink market for six consecutive years from 2003 to 2008. And

it has been certified by the "Hong Kong Q-Mark Service Scheme" and "Quality Tourism

Services Scheme" since 2004 and 2005 respectively. Besides, Hung Fook Tong has been

awarded "Caring Company" for 3 consecutive years since 2006. In 2007, it became the

6 of 41


first herbal tea brand in the region of Hong Kong and Macau to receive the honour of

"National Intangible Cultural Heritage" certification by the State Council of China. In

2008, Hung Fook Tong was awarded "2008 The Best Brand Enterprise Award (Greater

China)".

Based on the business annual return, it indicated that the current market status is

growing upwards. And, this company understands their selling networks are the biggest

and robust within the same industry in nowadays market. However, ‘Hung Fook Tong’ is

market sensitive so that the company invited our project team to conduct market strategy

review.

With rapid growth of market competitions in the industry, the research studies in this

project is to analyzes the possible ways to integrate new system to ‘Hung Fook Tong’ to

enhance its existing I.T. systems. Hence, the new installable system will be delivered to

strengthen its customer relationship management in order to secure the future market

shares.

Business Model – Hung Fook Tong

7 of 41


3. Methodology

In order to overcome the business competition, the company understood the

customer favors and let them appreciate the products. Another significant key was to

reduce the business cost for maximization of business’s market share. In order to

accomplish our object, we take an advantage to interview with company staff and street

customer survey to obtain useful results. With the references of I.T. Department’s

interview, customers’ survey, collections of company’s information; these are the

methodologies used to find out how the strategic manager could utilize for ongoing

market strategy. In addition, the results of findings could indicate whether information

system is a crucial adaptive approach to enhance the business strategy.

The methodologies listed below were being processed:

i) Interview with I.T. Department;

ii) Consumer Survey

Consumer Survey for Hong Fook Tong membership members

Street Level Survey

Interview with I . T . Department

Regarding the information gathering purposes, we request 4 days on-site workshop

with company’s Information Technology department to understand their company’s

operation.

Consumer Survey

This survey was designed by the google surveys web tools in generating the actual

questionnaires and distribute the consumer survey to all Hung Fook Tong members’

8 of 41


contact email. Meanwhile the survey will also publish on some Hong Kong popular

Internet discuss forum for any visitors fill up and return the feedback. On the other hand,

some survey forms will distribute on the streets in Hong Kong that obtains the useful

results.

4. Analysis the Strategic Environment

This project is to explore the business model adopted by a Chinese Traditional

Herbal Tea Manufacturer ‘Hung Fook Tong Holding Ltd’ in Hong Kong. ‘Porter Five

Force’ is the analytical tool to be used in analysis of current business environment with

this company. As such, crucial information revealed from the results of findings could

bring out the situation signals to this company. The analytical results also reflect the

company status in current business environment.

Porter Five Force

We are using the analysis tools “Porter Five Force” to analysis this industry’s

current situation in market status, analysis the company’s products in market share, the

company competitors and the degree of customers’ loyalty. By adopting ‘Porter Five

Forces’ analytical methods, the company’s strengths, weaknesses, opportunities, and

threats can be revealed from its results of findings, for more detailed analytical results will

be described in next session.

Interview with Executive Director

In order to effectively recognize the role of strategic manager, we invited the

company strategic manager Dr Ricky Szeto (also known as Executive Director of Hung

Fook Tong Holdings Limited since 1999) to attend an interview session. Through the

interview with the company’s Executive Director “Mr Ricky Szeto” who is willing to

9 of 41


provide useful and important information, we would discuss the company’s business

strategy plan and cost benefit for coming five years.

Within the 20 minutes, he shared some information about the company vision and

their business strategy from Ricky Szeto. Moreover, he also introduced two innovative

projects which involved IT technology namely, “Instant Order@ e-coupon” and “Smart e-

order”.

Questions were prepared for this interview and mainly focused on the company

vision and currently used business strategy. More important, we tried to find out what

newly implemented projects involved with I.T. technology that can helps to achieve their

business goal and mission.

According the conversation from Ricky, he was very confident on business forecast

in terms of business benefit and he is looking forward to implementing similar project to

enhance the market share in the nearest future. After the interview session, we have

gathered and have consolidated all information to generate comprehensive analytical

results from two IT systems and such concrete results will show in the coming

paragraphs.

** Interview letter and dialog are enclosed on “Appendix III”

Recognition on Consumer Needs

We distributed the survey start from March 2014 in two weeks. A total 808 returned

survey were collected from Hung Fook Tong members, via google consumer survey and

on street collection points.

The questionnaire was designed by the project team and the aims was tried to

understand the customers’ choices in relation to traditional herbal tea product. The results

10 of 41


of findings aim at understanding the effective rates on using e-coupon promotion linking

to traditional herbal tea products. Thus, five survey questions were developed for this

purpose, all questions except question 3 the respondents just select their own answer by 1

to 5 stars (on a 5-point scale):

i) 1 is strongly disagree;

ii) 2 = disagree;

iii) 3 = no sure;

iv) 4=agree;

v) 5 = strongly agree

In question 3, the respondents require to show the number from their last

experience. After collecting all survey data, we divided into four ranges’ group based on

the survey results. The group sets are: (group 1 = [0], group 2 = [1 to 5]; group 3 = [6 to

9], group 4 = [over 10])). The respondent took only average 5 minutes to complete and

they also needed to fill up their age group before survey is being started.

The questionnaires set of 5 designed to this Consumer Survey are as follows:

Q1 Do you always online shopping by using smart phone or other mobile devices?Q2 When you consider buying a product, is the shopping coupon can help for making the

decision?Q3 How many times to use the e-coupon for shopping in last 12 months?Q4 When you choose a traditional Chinese habit tea, Hung Fook Tong will be your first choose?Q5 Do you feel satisfy on Hung Fook Tong herbal tea drink products?

According to the results of questionnaires, only 48 (6%) people in this sample have

accessed to online shopping through their smart phone or handheld computer. The results

of findings also revealed that over 61% agree the shopping coupon can affect them to

make the decision. And, we know 544 (67%) people in sample group have already gained

experience in using e-coupon for shopping in past 12 months and 264 (33%) have never

been using the e-coupon for shopping yet.

11 of 41


The results of findings also reflected more then 78% in sample group will buy the

traditional Chinese herbal tea with choices of Hung Fook Tong brand. And, 70% people

agreed they are feeling comfortable with satisfaction in selecting Hung Fook Tong

products. (BioMedCentral 2007)

Nowadays, using smart phones and mobile devices to searching information is very

common in Hong Kong. Especially, in young-age-group, mobile phones become

significant social communication tools and information source. Through the results of this

survey, it showed more then half people in sample already knew using the e-coupon in

shopping, thus it will becomes a trend for sale promotion and selling the product. Because

of this, Hung Fook Tong has driven the business in right way to developed the e-coupon

system to increase their profit and market share. Summary of survey results are as

follows:

Table 1 Answers Result

1(disagree) 2 3 4 5(Agree)

Q1 120 65 335 240 48

Q2 56 86 168 301 197

Q4 4 9 164 264 367

Q5 4 32 204 228 340

0 1 ~5 6 ~ 10 Over 10

Q3 264 375 157 12

Table 2. Pie chart

12 of 41


Recognition on Consumer Needs

With the references revealed from the results of customer survey, we are able to

understand on what the products a they appreciate and suit for daily consumptions and in

what ways they used to purchase the products. Hence, we also develop a diagram below

for easy reference.

13 of 41


Diagram – Recognition on Consumer Needs

Summary of Findings

With the newly implemented I.T. system, it will increase extra budget to “Hung Fook

Tong”. However, the new system brings the advantage to cover the new market trend (i.e.

social network of Internet’s population). This led a successful understanding in certain

extend; we are able to collection crucial information regarding role and value in the

strategic environment.

Furthermore, survey results also point out the differential elements in terms of

information requirements to different levels and functions of management. These are the

project objectives which provided analytical skills to understand whether ‘Information

System’ could make significant improvement on its market share.

After we used the porter five force method to analyze traditional Chinese herbal tea

market (Hung Fook Tong), we found that three area forces includes “Rivalry among

competing firms in industry”, “Threat of new entrants” and “Bargaining power of supply”

are less and low pressure. The forces of “Threat of substitute products” were found by

middle pressure caused by other competitors are not too difficult to produce similar kinds

14 of 41


of habit drink products. At last, the force of “Bargaining power of buyers” we found that

is belong to high pressure level, because nowadays consumer quality requirement is

become more high and higher, plus the consumer favors change very fast, they expected

more and more different new products launch in market, therefore the habit drink

producer need to keep understand their customer and produces more favor choice for

them, meanwhile they must keep their product quality in good level all the time.

Analytical Results of Porter Five Force

Rivalry Among Competing Firms in Industry

Pressure Rate: Low

1. Hung Fook Tong Holdings Company was established since 1986, they have 28

Years’ experience on developed their products line and also have a large number of percentage market share.

2. Hung Fook Tong have strong product sale distribute network, such as MTR, KCR,

Supermarket, and its department store, therefore competitors not easy to replace it.

3. In past 10 years, Hung Fook Tong were investing large money on TV advertising and various promotional activities, thus consumer already have deep impression on

Hung Fook Tong and their products.

Threat of New Entrants

Pressure Rate: Low

1. New entrant still needs to spend a lot of time and investment on develop

their distribution network and customer base, they can’t replace current competitors (Hung Fook Tong) quickly.

2. Hong Fook Tong have well developed business model and strategy, they

can take faster responses on market competitor actions, new entrant will not easy to affect their market share.

15 of 41


Threat of Substitute Products

Pressure Rate: Middle

1. Making Chinese herbal drink does not need any secret formula, the

martial of herbal drink is not too hard to find it in the market, and therefore substitute product is not hard to reproduce for another competitor.

2. One of the most important business strategies of Hung Fook Tong is

recognition on consumer needs. Hung Fook Tong care about customer need and always extend their product category to fulfill different time customer expectation;

this is the strength point of HFT to against the threat of substitute products.

3. Nowadays, people likes emphasize to have healthful food and drink, therefore Traditional Chinese herbal drink is become more and more popular and

because one significant drink category which cannot be replaced.

Bargaining Power of Suppliers

Pressure Rate: Low

1. Hung Fook Tong is making and selling large number of products each

month, they need huge number of material resource for produce goods, and therefore they will have better bargaining power with suppliers.

2. This is the stronger requirement of manufacturing needs of Traditional

Chinese herbal drink. Always, the suppliers will keep pace with good deal to the giant buyers like ‘Hung Fook Tong’.

Bargaining Power of Buyers

Pressure Rate: High

1. Today, consumer favorite is always charging, it’s not easy to make consumer stick in same product with very long time. Consumer favorite changing

will base on different time and market trend, therefore company always needs to

16 of 41


know the customer thinking and expectation.

2. Currently it has few Chinese traditional Herbal drink brands products

selling in the Hong Kong market, therefore consumer can have some choose to make.

3. Consumer is very concern the product quality, if the product quality not

consistency and stable, consumer may change to select another competitors’ product.

4. Hung Fook Tong have a good distribute network in Hong Kong, specially some rental shop location can have exclusive selling the herbal drink; For

example inside MTR & KCR station, people not too much choose to buy a drink, sometime HFT is only choose they can have.

5. New ly Implemented I.T. System s

Executive Director Ricky Szeto have used his strong sense to analysis the current

market situation. Therefore, he can adopt progressive market strategy to absorb customers

from the local consumers. Starting from 2010, the company offered discount coupons to

various online ‘Groupon’ websites. This market strategy led its market share increased to

16% average from year 2011 to 2013. For the offering of online discount, they had used

the below format set paper coupons offered from the ‘Groupon’ partners’ websites:

In mid October 2013, with the successful reference from the applicable sale

method, the company under his supervision implemented two innovative I.T. systems in

17 of 41


parallel operating with ‘Groupon’ sales network. Sale automation system (SAS) has been

integrated into various I.T. systems and has gained wide range of reputations in I.T.

system development industry. With the technological advancement, new enhancement on

I.T. system has been created success opportunities and provides I.T. system solution to

business retails environment. Especially, the products’ strength is to integrated solutions in

connection with customer relationship management (CRM).

The innovation designs and deliverable solutions benefits to its business partners

with highest usability and scalability. The newly implemented I.T. system included:

i. Stock balance management;

ii. Selling patterns console (analytical software);

iii. Implement a new system to facilitate the sells orders from ‘Instant Order@E-

coupon’;

18 of 41

Whenever you spend HK$100 or retrieve the promotion E-coupons from mobile apps

You may use the downloaded e-coupons to redeem another set of discount coupon in shops


iv. Enhancement on ‘CRM System’; and

v. New ‘Smart E-order’ will be integrated in existing ‘CRM System’.

(sales managers can select the ‘best buy’ products and focus on the market trends on

specific items)

6. Description of strategic IT system(s) to be used

The new methods will be enabled by the new proposed I.T. system in i) Instant

Order@ E-coupon, ii) Smart E-order.

Instant Order@E-coupon

Instant E-coupon is a strategy planning to absorb the potential market from social

media networks. Social media networks have become a dominant force of almost

every aspect of a person’s communication strategy. Businesses are remaining

competitive by reaching their customers through social media networking. With

effective management practices and low cost social media marketing, businesses have

been able to use inexpensive ways to increase their visibility online. The extreme

growth of social media has also assisted businesses in tapping into previously

19 of 41


unknown markets.

QR code facilitation in cellar phone

Smart E-order

Smart E-order is one another strategy planning in ‘CRM system’ to increase

interactive relationship between customers and the company. CRM systems give

businesses the ability to personalize and customize relationships with their customers

regardless of which employee deals directly with them at any given time.

Touch pad device interactive with customers

Strategic Management View on New I.T.Systems

Before making decision on these newly planned I.T. systems, we have to

understand the existing infrastructure of I.T. System in Hung Fook Tong

CRM System

Customer relationship management (CRM) system allow the company to identify

its target customer, it is a complicate system and cost of implementation is very

expensive. In our case, “Hung Fuk Tong” get the following benefit from the CRM system.

CRM can decrease cost of customer gain, CRM report can correct the company to identify their target client and to focus of the marketing efforts;

CRM can increase the sales amount, analyzes the customer service behaviors and can be used to point out the shortcomings and areas that need to improvement. Good customer service will affect the results in a higher sales amount.

20 of 41


The management can align the sales marketing and customer service team to work

together to execute the business strategy according to analytics report.

POS System

The Point of Sale system is for managing the business operations including stock

control, consumer and supplier management. Monitoring all shops and stocks status, now

is become more easer for the management. The management can know retails turnover

and overhead from the Point of Sale System.

Implementation of I.T. System (Physical View)

The newly installed systems could have sufficient interaction with on existing CRM

and POS systems. The system diagram is illustrated as follows:

Physical View on Newly Implemented I.T. Systems

Implementation of I.T. System (Logical View)

The new systems integrated with the company’s systems (i.e. existing I.T. systems)

21 of 41


to provide more useful information to the company. These information will enhance the

data sets retrieved for business strategy, daily operational strategy, administrative

aspects, warehouse management, and extend to supply chain involved in Hung Fook

Tong.

Logical View on Newly Implemented I.T. Systems

7. Information Requirement

The success of business organizations depends on the strategic decision to made

progressive align with the business organizations, and especially that part of chain affects

the actual production. Information is one of the important element use in strategy decision

making. Decision maker use different information modes to learn about the environment

which separate Strategy level, Tactical level and Operational level. In such view, “Hung

Fook Tong” strategic management to make a decision to deploy new IS in the company

which is accepting the purpose from CEO “Mr Ricky Szeto”.

Strategy information

22 of 41


Strategic management provides overall direction to the enterprise. As executive

director, Ricky Szeto needs to make sure organization alignment, that capacity needs are

addressed and available to make things happen. How does he obtain the strategy

information to make decision? He gather the strategy information from various parties

such as marketing report from marketing research company which to assess the marketing

environment and competitiveness, customer report from CRM system which to help a

business gain a better understanding of who their customers are, what they are buying and

also see how loyal the customer really is. Financial information collected from account

department which to help Ricky Szeto to spot opportunities, and know how to read

markets and match products and services with customer needs.

Tactical information

Tactical need to involve the actual steps needed to achieve that vision, Tactical

management need to aligning the resource and monitoring schedule to the project to

achieve company goals. IT manger need to execute the IT project which according to the

project plan provided from project manager and Sales management need to meeting with

strategy management to obtain the direction of company.

Operational information

Operational control serves to regulate the day-to-day output relative to schedules,

specifications, and costs. The operation Sales staff is to optimize the organization return

on human resource cost. They need to meeting with sales manager to obtain the sales

policy of the company.

The below table is showing the information needs of the company:

23 of 41


Role Description Source

CEO CEO makes sure organization

alignment and that capacity needs are

addressed and available to make things

happen.

Marketing report from Marketing Research Company.

Customer report from CRM system

Financial information from Account department

IT/Sales

manager

Aligning the resource and monitoring

schedule to the project to achieve

company goals.

Project plan from project manger

Company Strategy meeting with CEO

Operation

Sales staff

To optimize the organization return on

human resource cost.

Meeting with Sales manager

8. Cost and Benefit Analysis

After the budget planning, the total cost of these new systems will be expected to

simulate the rise of market share to 10 – 15 % as a whole. In calculation of profit margin,

10% increase is equivalent to HK$ 1 million dollars. And, the expenditure on this project

will be broken even in beginning of year 2015 after 1½ years of system implementation.

24 of 41


9. Management Inspirations of Information ManagementBusiness Case Studies

i) Restaurant Industry

A leading nation restaurant chain wanted to increase their customer base and try a

25 of 41


different ways to make the advertising instead of traditional media methods. They

used an existing appetizer promotion to created campaign that the customer can

download the e-coupon via official company’s Facebook web site. When a customer

show up their e-coupon from smart phone or print out cope, they will have a free

appetizer. The result shows in the first 14 days, the company have more than

200,000 coupons were distributed and generated 426,949 new Facebook fans and

also found it have 15% business profit increase on at end of first month. (AccuData

2010)

ii) YAMATOYA Chef Restaurant

The Japanese chef restaurant YAMATOYA is one of the favorite traditional Japanese

cuisines in Japan. In September 2012, the restaurant owners agreed to have a pilot

test on using eMenu (company’s iPad eMenu) for six months. The purpose of this

test was to test whether this new technology and model can help for increases the

customer per order, when used on an eMenu.

Ultimately, after two months experiment, the result was that the table used the iPad

eMenu which was higher at 6% average spent per customer than which using the

traditional orders method. The restaurant owners were very satisfied on this result,

not only increases the average check per customer, they also can easily to achieve

the information of customer favorites and practices. (MiHormiga 2011)

10. Conclusion To cope with the competition of the market, Hung Fook Tong had taken progressive

26 of 41


steps to review its business environment from time to time. They recognized that it does

not only reduce the retail price of products to attract customer but also need to enhance its

existing I.T. systems. Based on our observations and findings of Hung Fook Tong, our

project team had explored significant findings from Hung Fook Tong. During the survey,

by using qualitative research approach in evaluating consumers' feedbacks on new

products, it provides the company with realistic, accurate and immediate check on

innovative product ideas. These findings included the company’s strategic approaches;

this leads the understanding outcomes from the information in the strategic environment

that was believed to be significant to strategic manager.

The new proposed I.T. system in Instant Order@ E-coupon and Smart E-order are

able to use inexpensive ways to increase their visibility online. The extreme growth of

social network also assists businesses in tapping into previously unreachable market share

and provides the business in capable of personalizing and customizing relationships with

their customers regardless of which employee deals directly with them at any given time.

The new system will increase extra budget to “Hung Fook Tong” and cost of

implementation planned have been estimated in the cost and benefit. For the new system,

product details including descriptions of products, quantities, and individual unit price

will be quoted before the implementation stage. In view of the system stability, the

ongoing maintenance cost and staff training fund have also been estimated as well.

However, after the company had adopted new Information System with creative

methodology to overcome the market competition, it is noticed that after the budget

planning, the total cost of these new systems will be expected to simulate the rise of

market share to 10 – 15 % as a whole and the expenditure on this project will be broken

even after 1½ years of system implementation.

27 of 41


11. Self-Evaluation / Reflection

At the beginning of this report, we mentioned “Hung Fook Tong” faced with the

rapid competitive of market share, and the business become more challenging and

strategy since the competitiveness of the company is complicated. This report let us

understand the company’s strategic approaches, the outcomes from the information in the

strategic environment that was believed to be significant to strategic management.

Although this report may not totally reflect overall business issues in “Hung Fook Tong”,

but we believe this report can help the company to analyze the current market

environment to improve their IT system to reach the new market strategy. Nowadays,

people connected to Internet purchasing platform becomes more popular, the company

should take a chance to build up a 7 x 24 online shop system to increase the marketing

share, which benefit can save the cost of rental and staff expenditures. And, the purpose is

to find out the new potential customer and better chance to increase the company sales

revenue. Value of the business strategic can be reflected in the system how to bring the

benefit or profit to the company.

28 of 41


12. Reference

AccuData (2010) ‘Industry Solutions Restaurant’ http://www.accudata.com/casestudy/restaurant-case-study-casual-dining-3[Available on 8 March, 2014]Blake and Gerard (1984 ) ‘THE INFORMATION SYSTEM AS A COMPETITIVE WEAPON’, page 1Benchmark analysis project in Hung Fook Tong: http://www.benchmark.org.hk/eng/3.2_hungfooktong.htm[Available on 5 March, 2014]Hong Kong Institute of Marketing(HKIM) field visits essay, page23: http://www.hkim.org.hk/image/data/7_Press%20Room_Publications/Members_Communicati

on_ME/ME-AUTUMN-2012-FINAL.pdf

[Available on 5 March, 2014]

Federation of HK industries interview with Executive Director of Hung Fook Tong: https://www.industryhk.org/english/fp/fp_hki/files/HKI1209_HFT_e.pdf[Available on 12 March, 2014]Hong Kong Institute of Marketing(HKIM) field visits essay, page23: http://www.hkim.org.hk/image/data/7_Press%20Room_Publications/Members_Communication_ME/ME-AUTUMN-2012-FINAL.pdf[Available on 5 March, 2014]MiHormiga (2011) ‘Yamatoya Chef restaurant’http://www.mihormiga.com/wp-content/uploads/Informe-ventas-emenu-ipad-mi-

hormiga-ingles.pdf[Available on 8 March, 2014]The Chinese General Chamber of Commerce bulletin: http://www.cgcc.org.hk/b5/chamber/bulletin/files/Bulletin_1281344424.87828_26-

33.pdf[Available on 5 March, 2014]

29 of 41

http://www.cgcc.org.hk/b5/chamber/bulletin/files/Bulletin_1281344424.87828_26-33.pdf

http://www.cgcc.org.hk/b5/chamber/bulletin/files/Bulletin_1281344424.87828_26-33.pdf

http://www.mihormiga.com/wp-content/uploads/Informe-ventas-emenu-ipad-mi-hormiga-ingles.pdf

http://www.mihormiga.com/wp-content/uploads/Informe-ventas-emenu-ipad-mi-hormiga-ingles.pdf

http://www.hkim.org.hk/image/data/7_Press%20Room_Publications/Members_Communication_ME/ME-AUTUMN-2012-FINAL.pdf


https://www.industryhk.org/english/fp/fp_hki/files/HKI1209_HFT_e.pdf



http://www.benchmark.org.hk/eng/3.2_hungfooktong.htm

http://www.accudata.com/casestudy/restaurant-case-study-casual-dining-3


Appendix I

Major Milestones

Milestones Planned Schedule

Completion Date

Start the “Porter Five Forces” analytical methods and define the

strengths and weakness.

20 Feb 2014 –

26 Feb 2014

Review and analyze the different aspect of the background of

“Hung Fook Tong”. Define which I.T application or system is

adopted by “Hung Fook Tong” currently.

27 Feb 2014 –

05 Mar 2014

Adopt “Porter Five Forces” to analyze “Hung Fook Tong” 06 Mar 2014 –

12 Mar 2014

Design and distribute consumer survey 06 Mar 2014 –

19 Mar 2014

Interview with Hung Fook Tong and on-site visit for their I.T.

department.

13 Mar 2014 –

19 Mar 2014

Sort out all of the information and interim review the whole

project.

19 Mar 2014

Analyze the risk and advantages of Implementation of new I.T.

system and the related technical feasibility

27 Mar 2014 –

02 Apr 2014

Final discuss and review of all the information. (e.g. interview,

on-site visit, research)

03 Apr 2014 –

09 Apr 2014

Check of all content, reference and finalize the project for

presentation and report submission

10 Apr 2014 –

16 Apr 2014

Appendix II

30 of 41


Interview Letter for Hung Fook Tung Executive Director

28th February, 2014

Mr. Szeto12/F., ADP Pentagon Centre, 98 Texaco Road, Tsuen Wan, N.T., HK

Request for an Interview with getting the use of IS with business strategy

Dear Mr. Szeto,

We are student (Group 2 members) at Middlesex University of BIS, since we are studying the subject BIS3342 -Strategic Management and Information Systems, we need to submit a group project assignment about the use of IS with business strategy . Your company has an outstanding reputation in that field of practice. We would appreciate the opportunity to meet with you briefly and discuss the topic. Any further insights you have would be greatly appreciated. I will contact your office the week of March 2 to set up a mutually convenient time for this informational interview.

Yours Sincerely,XXXStudent MDX UniversityPhone: Email:

Appendix III

31 of 41


Interview Dialog

Interview

Date: March 5 2014 2:40pm – 3:00pm (20 Minutes)

Location: Hung Fook Tong office Guest Room

Interview Person: Mr Ricky Szeto Executive Director of Hung Fook Tong Holdings Ltd

Visitor: Raymond, Alan

Us: Good afternoon, Mr Ricky Szeto. IT’s pleasure to have chance to meet you today.

May I say you some questions about Hung Fook Tong business strategy in

Information technology?

Ricky: Yes, of course.

Us: What is the vision of Hung Fook Tong Holdings Ltd?

Ricky: We would like to popularize our traditional Chinese habit drink culture to global

by every means.

Us: What is your business strategy to achieve your company’s vision?

Ricky: Starting from long time ago, we had tried various methods to introduce our

products to the customers in different countries such as TV media, advertising and

charity…..etc.

Us: Among your strategy and future planning, is there any project involve new

information technology?

Ricky: Yes, we do. In the past year, we started two IT projects. One of them is called

“Instant Order@ E-coupon”. Another on is “Smart E-order”. We have established

“Instant Order @ E-coupon” mobile application to deliver e-coupon through the

most popular internet social media network. The main purpose of this software is

to increase the market share and selling value.

32 of 41


Regarding “Smart E-order”, it is very convenient for the customers to place their

orders through iPad inside our retail stores. All the data collected by the system

which will be analyzed by CRM system. This will help our top management to

understand more the trend and the needs of our existing customer.

Us: Do you satisfy with the result of those 2 project development?

Ricky: So far, both of projects are very successful. According to our last sales report, we

have 20% more in sales. And based on “Smart E-order” result, we will soon

launch 2 new products in the markets and we estimate there will be positive

feedback from the market.

Us: Thank you for your valuable time and your information.

33 of 41


Appendix IV

1. Do you always online shopping by using smart phone or other mobile devices?

Rating out of 5 stars

2. When You consider buying a product , is the shopping coupon can help you to make the decision?


3. How many times to use the e-coupon for shopping in last 12 months?

Open-ended text

34 of 41

http://www.google.com/insights/consumersurveys/create/questions/edit?survey=32hpne4iohfaw&question=3





4. What do you think on Hung Fook Tong herbal tea drink?


Finish Thanks for your opinion and time.

Appendix V

35 of 41



Consumer Survey Result Summary Report

Appendix VI

36 of 41


Date Study and Presentation Schedule

Jan-22 (Week

1)Studying Strategic Management

Feb-05 (Week

2)Reading Course Materials and prepare for project proposal

Feb-12 (Week

3)review the draft copy of project proposal

Feb-19 (Week

4)submit project proposal

Feb-26 (Week

5)Reading Course Materials

Mar-05 (Week

6)Reading Course Materials

Mar-12 No Class (self-preparation for project work )

Mar-19 (Week

8)Group Project - Interim Presentation

Mar-26 No Class (self-preparation for project work )

Apr-02 (Week

10)Reading Course Materials and prepare project report

Apr-09 (Week

11)Reading Course Materials and prepare project report

Apr-16 (Week

12)

Group Project - Final presentation and report submissionParis Project - Submit Project Proposal (Final)

Study Plan

Appendix VII

37 of 41


Minutes

1st Project Group meetingBIS3324 2.23.2014 3:25pm – 3:35pm Location: G/F. HKMA Li Kwok Po Meeting Project Group MeetingType of FacilitatorNote taker JemyTimekeeperAttendees Jemy, Samuel, Alan, RaymondProject Proposal and Presentation[Time [Presenter]

Agenda1. Finalized the structures of project proposal - what are the structures finalized2. Preparation Works of project - how to start the preparation works3. Presentation of project proposal - when will the project present4. Allocations of tasks - members involved in individual tasks5. Consolidation of project works - when and what the individual works are

Conclusions

Action Items Person Responsible Deadline1. Introduction Completed2. Objective Completed3. Research Methodology of Study Raymond4. Data Gathering Samuel5. Strategic Model and Analysis Jemy6. Summary of Analysis Jemy7. Information Requirements Alan8. Project Implementation Strategy Samuel9. Global Successful Stories Raymond10. Conclusion Alan11. Appendixes

38 of 41


12. References

2nd Project Group Meeting

BIS3324 3.6.2014 9:40pm – 10:00pm Location: Venue (FC)Meeting Type of Assignment 1. Project MeetingFacilitatorNote taker RaymondTimekeeperAttendees Jemy, Samuel, Alan, RaymondProject Proposal and Presentation[Time [Presenter]Discussion What’s remaining works on group project at this stage?

6. We have to summarize the project proposal and the proposal should NOT over 7. Prepare a project PowerPoint for next class group presentation8. Complete the “Information Requirements” session 9. Build up to report format

Conclusions

Action Items Person Responsible DeadlineProject Objective (Academic) & Introduction Jemy & RaymondResearch Methodology & Porters’ Five Forces Samuel & AlanStrategic IT Systems and Conclusion Jemy & RaymondInterview Questions All Group MembersInformation Requirements All Group MembersPorters’ Five Forces first draft Raymond

3nd Project Group Meeting

BIS3324

4.2.2014 9:40pm – 10:00pm Location: Venue (FC)

Meeting called by

Type of meeting Group Project Meeting – Final FacilitatorNote taker RaymondTimekeeperAttendees Jemy, Samuel, Alan, Raymond

Project Proposal and Presentation

[Time allotted] [Presenter]Discussion Continues the final project report

39 of 41


1. Final project report task allocation

2. Decided using 4 different color (red, orange, yellow, green) to represent each

team members works.3.

Action Items Person Responsible Deadline

Project Objectives and Company AlanProposed New I.T. System JemyMethodology RaymondAnalysis of strategic environment RaymondInformation Requirement SamuelDescription of strategic IT system(s) to

be usedAlan

Cost and Benefit Analysis Jemy

Management inspirations of

information managementRaymond

Global Successful Stories Raymond

Conclusion Alan

Reference Raymond

Major Milestones Alan

4th Project Group Meeting

BIS3324 9.4.2014 9:20pm – 09:45pm Location: Venue (FC)Meeting Type of Group Project Meeting – Final Report processFacilitatorNote AlanTimekeepAttendees Jemy, Alan, RaymondProject Proposal and Presentation[Time [Presenter]Discussio Continues the final project report

1. Final project report powerpoint slide task allocation

Action Items Person DeadlineProject background – objective, methodology, company introduction (2

Alan, Raymond 13 April 2014Summary of strategic issues of the

company (1~2 slides) Raymond

40 of 41


Values of strategic IT system (~ 6 slides)

(1) Description of the IT system (what is it ? What are functions provided)

(2) System /solution diagram

Jemy (1-4)

Samuel (5)

(3) Information requirement of strategic/tactical/operational manager or users

(4) Summary of Cost & benefits (tangible/intangible benefits)

(5) Other strategic issues considered in this project

Appendix (Optional)- Project plan and task allocation- SWOT/Porter/Questionnaire/Interview

Alan (milestone), Raymond

~ End ~

41 of 41

Documents

bisproject2.files.wordpress.com€¦ · Web view3 = no sure; 4=agree; 5 = strongly agree In question 3, the respondents require to show the number from their last experience. After