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Introduction - Systems Analysis And Modelling
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Additional Research and Assumptions
L-Mart is a business organisation of national level which mainly deals with physical retail stores and currently they are expanding their horizon in growing online marketing. It sells all kinds of goods directly to the consumers both physically and virtually.
L-Mart is looking forward to improving and upgrading its internal management system as it is currently operating with those old, slow and outdated methods which are hampering the rapid increase in online sales.
- Additions and expansions
- Accessibility: Supporting geographic and socio-economic access of supermarkets may lead to an extraordinary solution in upgrading poor health and nutritional requirements. People with disabilities prefer to use an online mode of ordering ensuring their delivery on time.
- Availability: Enough supply of goods and services to meet the growing demand , to remove shortages of a stockpile, stores need to be contented with abundant commodities.
- Feature: Attractable features include offers, buy one get one free, discounts and neat displays of goods and services to fascinate customers from a wide range (Djørup et al. 2018).
- Price information: Clear-cut display of supermarket shelf labels printed on the body of the commodity and the method of using a barcode to give assistance about the product's assurity to interpret all information regarding that commodity (Soteropoulos et al.2019).
- Product quality: To compete with the same product of different company domains, quality must be ensure to remain as the best so that it can captivate the customers.
- Cleanliness: In physical retail stores, decent appearance and proper arrangement of the products create attentiveness to visit that store successively.
- Variety: A wide range of products to meet the market demands is requisite in maintaining the growing trend of the ultimate stipulation of the customers (Kurniati et al. 2019).
- Sources and Explanations
- Assumption 1: Evolving marketing trends refers to those innovations and ideas which the business have gone through as they are seeking to maintain, achieve and increase revenue by improving customer sales relationship.
- Assumption 2: Boosting storage and delivery cost of goods and services owing to ineffective maintenance of shipping management, shortages of raw products, rise and fall in the3 market demand.
- Assumption 3: Fluctuation in sales due to recent pandemic faced huge loss in physical retail stores. An increase in maintenance cost during any pandemic or other global issue causes huge loss and some falls to bankruptcy. Investors face loss leading to effects the progress of the company.
- Assumption 4: Large retail companies create huge competition in both online and offline modes across a wide range of products in a sector (Saeed, 2019). The elements of the competition comprise discounts, quality, mode of advertisements, marketing strategy, sales methods etc. of the allied products. As a result the revenue which is generated at the end of the financial year is quite similar to its competitive company's position in the same market.
- Assumption 5: Higher operational cost operates in the internal management system of the store. Maintenance of the machineries, higher electricity cost, labour wages, shipping charges, repairing costs etc. all these components lead to the stable condition of bottom profit line and above profit line of the company's balance sheet.
2. Rich picture
- Entities
In any business identification of major entities are important to measure all the functions within an organisation. It considers a business as the informative structure rather than what the business does. In a corporation business, an entity is created by one or more individuals for maintaining a separate legal existence for tax purposes as well as to carry out different functions within a business. A business consists of different types of entities and by visualising the workplace structure of L-Mart it has seen it is a small business orgasonisation which is conducted with 5 types of entities (Fischer, 2019). Partnership corporation, individual or sole partnership, sole corporation, c corporation and limited liability company is important entities. For business owners, it is very important to decide how to categorize their business from these entities.
Links between entities
Main Entity Type |
Role within an organisation |
Impact of entity on organisation |
Partnership corporation |
? Do not require formal registration with the state government ? All founders are personally liable |
Easier for business |
Sole proprietorship |
? Take all financial responsibility and legal liability for a business ? Does not require any formal paperwork or registration |
This entity type has its lows or highs |
C corporation |
? The business itself liable for legal action ? The business holds a perpetual |
Government take a major role in these entities and can be crucial for the business |
Sole corporation |
? Take all the advantages of personal reduced liability ? It is limited and legally allowed to operate in the specified sector (Melnyk et al. 2019) |
It is limited within an organisation |
Limited liability |
? It provides freedom and flexibility in the business ? It is a separated legal entity from the owner side and profit flows through the owners |
It is very impactful for customise the business structure |
Table 1: Relationship and link between all the entities
(Source: Self-Developed)
Concerns
In a workplace, concerns include all the workflow activities that have taken place. Observed entities in the workplace are one of the major eventful conditions that businesses can take into consideration. As L-Mart is a national business which sells different kinds of products directly to consumers through its retail stores as well as growing its online presence. In order to all the activities in a workplace company needs to keep a record of all the systems. Operating cash flow is one of the major things for observing the concerns that are going on in the workplace. Financial performance indicators are one of the important qualified metrics that are used to measure how a company can consider whether the sales in the company are well maintained or not. L-Mart includes warehouse management in their workplace by which all the orders and selling are handled also all about the active and inactive products delta activity are taken into consideration.
Boundaries
Fostering the specific patterns of behaviour by one set of individuals to the different sets of individually constructed boundaries plays a major role. These boundaries are completely linked with the observed entities. In a business, these boundaries have double-edged values such as positive and negative. On the positive side, boundaries are always important for measuring the workplace entities, all the links between entities and measuring concerns as well (Ogbonnaya and Valizade, 2018). Creating a positive boundary allows a business analyst to focus on and specialise in different types of knowledge as well as activities. The negative side of boundaries is also important to foster all the weaknesses within the organisation that can be mitigated as soon as possible. It refers to and assesses where management needs to allow all the agility for cross-checking the products. This is why business holds an inventory management system for keeping all the records of all sales about the active and inactive products.
Significance of boundaries
This way, boundaries come in many forms which are conceptual and structural and play a significant role in growing the business in different markets. In a small business like L-Mart, structural boundaries consist of four types of implications for which language and communication play a key role. Vertical, geographical, horizontal and external are four important factors for structural boundaries which are flexible for the business. These four structural boundaries are particularly relevant for communication. Vertical boundaries in this firm are very important as it functions inventory management in their workplace and creates levels of control within the organisation. For instance, horizontal boundaries play an important role to provide a focus within a common function. Geographical boundaries are important for a business as they can affect culture and identities. Lastly, external boundaries separate all the members within an organisation from the other observed entities.
Conceptual boundaries also consist of four major factors that can take a major role in the communication process of a business. The first factor is efficiency-based boundaries which refer to the cost control in a workplace and always focus on the cost in the workplace. Power-based boundaries are the second component in measuring the organisational entities which influence other firms (Bibby, and Dehe, 2018). Competence-based boundaries identify all the useful resources that can be beneficial for completing the mission. The last factor is identity-based boundaries which are important in maintaining a common way.
3. System Vision
Description of problems in a business system
The root cause of problems in business are caused by non-specific business strategies by compiling those data which are unmanageable and not getting proper reviews and products from time to time.
- Labour quality, retention of employees and recruitment: Unskilled labour hampers the efficient management of the organisation leading to loss hencer after attaining certain aptitude and ability tests t6hey should be employed (Hamoud et al. 2021). Reservation for employees owing to maternal and paternal relations obstacles the recruitments of desirable workers. also, sufficient employees are not recruited creating an overpressure on the remaining workers
- Fluctuations in their internal regulating system with market inflation: With the rise in inflation , prices of commodities also increase which sometimes becomes unaffordable (Rakhshani et al. ). A rise in transport cost, raw materials cost, labour cost, fuel cost, taxes and shipping charges are all the components of market inflation.
- A dearth of capital or cash flow: Lack of investment and blockages of shares adversely affect the growth line of the company (Gomez et al. 2018). As a result, the buying capacity of the business decreases and it cannot spend in business developing in order to progress for development.
- Administration: Lack of proper internal management causes inability to keep a track of budget, overall performance record, portfolios, and annual expenditure and the reason is running innumerable activities without proper strategy.
- Marketing and advertising: Sometimes improper generation of marketing leads, unsatisfied customers, negative feedback, inappropriate time management and competitiveness with the market demand raises a dilemma in the marketing and advertising strategy of the company.
- Managing and providing benefits: All the beneficiaries of any company which are being enjoyed by the employees including promotions, increment and hikes need a smooth way to run so that it can add value to the organisation.
Capabilities of the business system
It is a network comprising the capability of the enterprise system which operates in complexity to comprehend the capability of a business. It is indicated by six major components:
- Mission: The main purpose of the business based on which enterprise capability is determined. The role of investors in building the company contributes to its growth.
- Markets: Markets are determined by the process capability of the advertising agency of the concern; their strategies, implementations and procedures.
- Portfolio; The amount of information being put on the database by the management operational authority.
- Talent: Technological advancement by the IT department in the regulation of the sector and their proper usage.
- Operations: Functioning system of any department or sub department, their inputs process and outputs.
- Business management: It is determined by the types of services which are offered by the company to its employees and the variety of products they make viable in the market.
Succeeding benefits in business
Inception of a structured financial plan or order to stay focussed and to keep a track as the company rises allows benefits to enter.
- Increase in clarification: Efficiency in technological operations needs to be increased with respect to the adoption of artificial intelligence, doubts regarding the date of manufacturing and date of expiry can be determined by using bar code technology.(Shaqrah, 2018)
- Implementation of a marketing road map: Without proper marketing management strategies, it is impossible to run a business and to meet the ongoing market demands.
- Monetary support: Investments need to be increased and shares should be handled carefully for the development of the organisation.
- Structural records: All the data including the expenses of the company should be in a proper database and auditing should be done regularly.
- Procuring talent: Skilled labourers should be hired globally in order to expand the horizon of the business.
4. Stakeholder analysis
- Evaluation of stakeholders
Identified stakeholders from the case study |
Identified stakeholders from additional research |
Inventory manager |
Investors |
Employees |
Suppliers |
Warehouse Manager |
The local and national government |
Customers |
Independent retailer |
Figure 4.1: Evaluation of stakeholders within an organisation
(Source: Self-developed)
From the case study, it has been revealed that the company directly connects with customers and improves its inventory management function by rapidly increasing online sales. From the case, it has been cleared that the main stakeholder involved within the firm are Inventory manager who looks for and upgrades all of the products that are sold at L-Mart. Other employees who are working in the workplace for maintaining workplace activities are important to know all the thing (Piroozfar et al. 2019). The warehouse manager is involved in logistics and delivering different products. At last customers are the main responsible stakeholders in the organisation by which the company can be well managed and thrive long-term success. From the additional research, it is demonstrated that the company can include some investors, suppliers, state and local government and independent retailers for growing the company. As this company exists with delivering products by both physical and digital mediums and from this aspect they need a supplier who can assess all the workflow within a firm.
Classification of all identified stakeholders
Stakeholders play an important role in delivering profitability within a workplace. In any business, stakeholders play a key role as an individual or team that has a good interest in the organisation as well as the outcomes of their actions. In the organisation, stakeholders can work in the organisation both internally as well as externally and share individual shares in a workplace. In this workplace government that consists of both local and national plays an important role in delivering success in the organisation. They might be considered the main stakeholders as they collect all the taxes from the company as well as from the community and the employees involved within it (Nayak, and Waterson, 2019). Government can benefit from the overall GDP that companies contribute and from that aspect companies can also spread their reachability in different sectors. Communities also can come into this company as they have implicated a wide range of things in their workplace which include job creation, health and safety.
Justification of identified stakeholders and their role
There are majorly four stakeholders who are identified from the case study and they are the main responsible people who are running the company in a better way. From these identified four stakeholders Customers are the main responsible stakeholders who can deliver success to the business. Customers fall in the hands of external stakeholders and they are the responsible person who decides whether the business will succeed or not for a long time. It is very important for a company to get a long-term profit in the business. They are the only ones who can deliver their valuable feedback and getting those feedback companies can work in those sectors. Customers are important people who consume the end products and also use all the services which are delivered by the firm. Using the products and services customers are liable to know whether products will be impactful or not and if they will not like it they can switch to the other firm as well.
Stakeholder justification and explanation based on assumption
Based on assumption or research it is identified that all those assumed stakeholders are beneficial for the organisation. Moreover, Investors are beneficial external stakeholders who are always interested in minimising the operational costs of the company and for serving long term profitability. In their strategies, marketing companies can include some medium sized investors who fulfill all the aims and objectives of the company and serve long term profitability in a workplace. Beside investors, suppliers are other important benificuial stakeholders who can deliver a good profit in a workplace.
5. Event table
Event names and types |
Events identified |
Event source |
Event triggers and conditions |
Event actions |
Event outputs |
Corporate events |
Identify by analysing old traditional business issues |
Internal and external meetings, sales conferences and training convocation |
Company initiatives, revenue analysis, business reports and policies |
Meeting with different stakeholders and practice of statistical measurements to find out business strategy |
Provide support for business products and services, support in collaboration activities with different stakeholders |
Product events |
Recognising market needs |
Surveying of retailers and wholesalers |
Workflows, recruitment, production line, capacity |
Consider developing strategies along with the business capacity to construct a different product line. In addition, HR management needs to complete the recruitment process to increase the workflow rate. |
Launch a new product and develop a construction framework. New products identification |
Charity events |
Data collection for needed persons, Community involvement |
Visiting remote areas and identifying the growth rate of the people |
Benefits in people lifestyles, the brand value of organisation, organisational activities and financial activities |
Considering survey in remote areas, market analysis in remote areas |
Brand value development, organisational advertisement and business promotion |
Association events |
Analysing the lack in business process, lack in supply chain and issues in digital business |
Trade meetings and business tour |
Networking activities, meeting arrangements and invitations |
Analysis of networking details, Find out issues in the supply chain process and provide solutions to develop the supply and networking process |
Develop in business trade and market share, support to develop business process. |
Mega events |
Verifying business advertisements, Analysing the impact of sponsorship in the business process |
Sports events, cultural programs and international events |
Code of conduct, visitors attractiveness, Financial chart |
Analysing business importance, collaborating with events, dealing with business advertisements |
Business popularity will increase, market sales expansion, and market size development |
Community events |
Including individual analysis of market needs, identifying business issues due to communal engagement |
Domestic convocation centre, Poster about meetings and people's direct engagement with business |
Digital facilities, volunteering, events and portal verification |
Discussing issues in the community, delivering strategies to provide facility |
Community support, continuous development, development in business revenue |
Tradeshow events |
Discussing innovative products, displaying marketing advertisement |
Different business persons, anchor and display advertiser |
Identification of suitable business, an invitation to relevant person and advertisement rules and regulations |
Delivering new business proposals, providing ideas for substitutes products and services and analysing market share |
Opening new business market, launching new products and developing business market |
Travelling events |
Discussing with a group of employees and planning a market tour |
Market analysis, analysis of effective countries and analysis of business needs |
Countries' policy, business norms and market rules and regulations |
Meeting with managers, identifying business needs and analysing market conditions for selected countries and branding business in new locations |
Developing business market, gathering customer interest, creating a new business model and developing productivity |
Conference events |
Considering meeting with different business giants and analysing market competitions |
Online advertisement and business meetings |
Formalities, collaboration, policy and procedures of meetings and limitation |
Discussing market ideas, debating about market analysis and delivering market ideas for development |
Getting new business ideas, find out business solutions and developing in supply chain process |
Sponsorship events |
Analysing financial support, findings of imported cost and analysing of customer engagement in the business process |
Advertisements, Relationship management and event management |
Business policy and procedures and sponsorship contract |
Analysing business needs and covering collaboration accordingly. |
Financial support in the organisational process and development of business revenue |
Table 1: Event table
(Source: Self-developed)
The above-mentioned table shows the event table for a developing organisation. This table shows 10 different types of events in the event management part and includes five adjacent factors for those 10 events (Nayak and Waterson, 2019). The mentioned ten events are corporate events, charity events, community events, sponsorship events, conference events, association events, mega-events, travelling events, product events and tradeshow events. Corporate events consider discussion of corporate activities such as revenue cover, taxation system, and traditional business process and issues identifications in the business process. This process includes an internal and external meeting to identify the issues and the above-mentioned discussion in the business process. This also can include sales conferences and training convocations by following an analysis of business reports and policies to determine any business gaps and to gain corporate support from others (Mackenzie, 2018). This event will help this organisation to develop business products and services and will help to find the new business process in the organisation.
Product event is also an event for the business process and this event will come by analysing the market needs of the product and the lack of varieties of products in the business process. This will consider a survey process of retailers and wholesalers in the business process and this will require workflow analysis, recruitment management and capacity analysis in the organisational process (Ruben et al. 2018). This will provide benefits for the organisation by providing ideas for new products and will deliver new ways of development in the business process. Another event is a charity event and this will collect data from remote areas and will compare its business market expansion in the remote areas. This event will consider financial support and market subsidies in the business process (Dreyer et al. 2018). This will help to earn the brand value of the organisation and will help to develop customer engagement in the business process.
Association events will consider business meetings of trade and analysis of networking activities such as supply chain process in the organisation. This event will help to develop business networks and market share in the business process (Tonkin et al. 2019). The mega event will include advertisement and sponsorship activities to provide support in the business process and this will develop business popularity and provide support in the business expansion. The community event will identify business issues and consider communal engagement in the business process to enhancement in community support and development in the business revenue. The tradeshow event will discuss marketing advertisements and will help to launch a new business market (Nicholson et al. 2019). Travelling, conferences and sponsorship events will consider business collaboration, sponsorship activities and business contracts with other market giants to develop customer zones in the business process (Xue et al. 2018). Therefore, this high engagement of customers in the business process will grow business revenue and will help to develop the business market.
References
Books
Fischer, M.M. ed., 2019. UK: Spatial analytical. UK: Routledge.
Gomez-Exposito, A., Conejo, A.J. and Cañizares, C. eds., 2018. Electric energy systems: analysis and operation. US: CRC press.
Saeed, K., 2019. Towards sustainable development: Essays on system analysis of national policy. UK: Routledge.
Journals
- Bibby, L. and Dehe, B., 2018. Defining and assessing industry 4.0 maturity levels–case of the defence sector. Production Planning & Control, 29(12), pp.1030-1043.
- Djørup, S., Thellufsen, J.Z. and Sorknæs, P., 2018. The electricity market in a renewable energy system. Energy, 162, pp.148-157.
- Dreyer, H.C., Kiil, K., Dukovska-Popovska, I. and Kaipia, R., 2018. Proposals for enhancing tactical planning in grocery retailing with S&OP. International Journal of Physical Distribution & Logistics Management.
- Elliott, M., Borja, Á. and Cormier, R., 2020. Managing marine resources sustainably: A proposed integrated systems analysis approach. Ocean & Coastal Management, 197, p.105315.
- Hamoud, A.K., Marwah, K.H., Alhilfi, Z. and Sabr, R.H., 2021. Implementing data-driven decision support system based on independent educational data mart. International Journal of Electrical and Computer Engineering, 11(6), p.5301.
- Hilpert, S., Kaldemeyer, C., Krien, U., Günther, S., Wingenbach, C. and Plessmann, G., 2018. The Open Energy Modelling Framework (oemof)-A new approach to facilitate open science in energy system modelling. Energy strategy reviews, 22, pp.16-25.
- Kurniati, A.P., Rojas, E., Hogg, D., Hall, G. and Johnson, O.A., 2019. The assessment of data quality issues for process mining in healthcare using Medical Information Mart for Intensive Care III, a freely available e-health record database. Health informatics journal, 25(4), pp.1878-1893.
- Mackenzie, A., 2018. Personalization and probabilities: Impersonal propensities in online grocery shopping. Big Data & Society, 5(1), p.2053951718778310.
- Melnyk, N., Bidyuk, N., Kalenskyi, A., Maksymchuk, B., Bakhmat, N., Matviienko, O., Matviichuk, T., Solovyov, V., Golub, N. and Maksymchuk, I., 2019. Models and organisational characteristics of preschool teachers’ professional training in some EU countries and Ukraine. Zbornik Instituta za pedagoska istrazivanja, 51(1), pp.46-93.
- Nayak, R. and Waterson, P., 2019. Global food safety as a complex adaptive system: key concepts and future prospects. Trends in Food Science & Technology, 91, pp.409-425.
- Nayak, R. and Waterson, P., 2019. Global food safety as a complex adaptive system: key concepts and future prospects. Trends in Food Science & Technology, 91, pp.409-425.
- Nicholson, C.F., Stephens, E., Jones, A.D., Kopainsky, B., Parsons, D. and Garrett, J.H., 2019. Setting priorities to address the research gaps between agricultural systems analysis and food security outcomes in low-and middle-income countries.
- Ogbonnaya, C. and Valizade, D., 2018. High performance work practices, employee outcomes and organizational performance: a 2-1-2 multilevel mediation analysis. The International Journal of Human Resource Management, 29(2), pp.239-259.
- Piroozfar, P., Farr, E.R., Zadeh, A.H., Inacio, S.T., Kilgallon, S. and Jin, R., 2019. Facilitating building information modelling (BIM) using integrated project delivery (IPD): A UK perspective. Journal of Building Engineering, 26, p.100907.
- Rakhshani, E., Gusain, D., Sewdien, V., Torres, J.L.R. and Van Der Meijden, M.A., 2019. A key performance indicator to assess the frequency stability of wind generation dominated power system. IEEE Access, 7, pp.130957-130969.
- Ruben, R., Verhagen, J. and Plaisier, C., 2018. The challenge of food systems research: What difference does it make?. Towards Sustainable Global Food Systems, 11(1), p.171.
- Shaqrah, A.A., 2018. Analyzing business intelligence systems based on 7S model of McKinsey. International Journal of Business Intelligence Research (IJBIR), 9(1), pp.53-63.
- Soteropoulos, A., Berger, M. and Ciari, F., 2019. Impacts of automated vehicles on travel behaviour and land use: an international review of modelling studies. Transport reviews, 39(1), pp.29-49.
- Tonkin, E., Wilson, A.M., Coveney, J., Meyer, S.B., Henderson, J., McCullum, D., Webb, T. and Ward, P.R., 2019. Consumers respond to a model for (re) building consumer trust in the food system. Food Control, 101, pp.112-120.
- Xue, H., Slivka, L., Igusa, T., Huang, T.T. and Wang, Y., 2018. Applications of systems modelling in obesity research. Obesity reviews, 19(9), pp.1293-1308.