...themselves by pricing the products low which means that large quantities need to be sold. In order to make that possible, Hershey needed a top notch logistic and supply change systems as well as prepare for Y2K in a project labeled Enterprise 21. As part of that project in 1996, Hershey’s decided to upgrade its patchwork of legacy IT systems into an integrated ERP environment. Hershey’s chose SAP’s R/3 ERP software, Manugistic for supply chain management (SCM) software, and Seibel for customer relationship management software. Hershey’s decided to implement new software so that they could share product data with retailers. They went with SAP for the ERP and Siebel and Manugistic for the other portions because they were all considered some of the best in their areas. Manugistic had been used previously with the existing mainframes so that prior relationship probably entered into the decision making. Schedule Feasibility The decision was made at the initial timeline of the project that this would be a 30 month timeline even though the average and suggested time for the project would be four years. Although that shorter timeline was caused by the impending Y2K software issue, it set the stage for more faulty decisions. This condensed timeline caused Hershey’s to not take time to fully assess the systems as well as leading...
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...sales since then by selling around 3,000 different candy items in various shapes, sizes, and flavors. Their peak sales occur in the 4th quarter covering the Halloween and Christmas seasons. The company has over a dozen plants internationally and domestically, employing over 14,000 people. Hershey’s plan, named Enterprise 21, was to modernize their software and hardware in the beginning of 1996. The plan was scheduled to take up to four years to complete. The plan’s goals were to upgrade and standardize the company’s hardware and move from a mainframe-based network to a client-server environment. During this plan, Hershey replaced 5,000 desktop computers and moved to TCP/IP networking based on newly installed network hardware. They did this because it was determined that Hershey needed to be able to use and share its data more efficiently due to industry demands. Upgrading their system would give them the ability to increase production and customer satisfaction and service. Enterprise 21 would replace the company’s current system with a more up-to-date resource planning software called SAP. The SAP software would be paired with software from Manugistics Group Inc. and from Siebel Systems Inc. The software from Manugistics would provide support for production forecasting and scheduling, and for transportation management. The software from Siebel would assist Hershey in managing customer relations and in tracking the effectiveness of its marketing activities. The management believed...
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...this memo I hope to highlight certain issues pertaining to the cutover that was called “Enterprise 21”. There was an enormous amount of information that needed to be incorporated together in an enterprise resource planning endeavor. This cutover caused many issues at your company from logistics to customer satisfaction. With this memo I hope to convey a detailed assessment to prevent this from happening again. As the year 2000 was approaching Hershey’s saw that there was a need to update their information technology. Hershey was similar to other food distributors and did not spend much more than was needed on their information technology. As the year 2000 was impending Hershey saw the need to replace there current legacy system for a new ERP system that would integrate all areas of Hershey’s. Your vice president of information systems Rick Bentz began to modernize and update software and hardware in the early months of 1996. This project was named “Enterprise 21”. The goals of this project were to upgrade and standardizing the company's hardware, and moving from a mainframe-based network to a client-server environment. Bentz noted benchmark studies that show Hershey’s trailed industry peers spending on information technology. Bentz also noted that Hershey’s needed to be able to share its data more efficiently. Hershey's information systems management set the goal a move to an ERP system using software from SAP AG of Walldorf, Germany. SAP was to be complemented with software...
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...stumbled while rushing to complete an enterprise systems overhaul, with a new SAP implementation at its core. Basic order management and fulfillment processes broke down, causing the company to fail to meet many retailers' orders. The immediate impact was about $150 million in lost sales for the year. The damage to sales and retailer confidence lingered into early 2000. Hershey is still reluctant to discuss what happened and what caused it; the company declined repeated requests for interviews from Baseline over the past year, and asked SAP and Accenture (which helped with the mySAP implementation) not to talk, either. But we gathered insight from insiders and former employees, and from some public statements Hershey has made about its supply-chain improvements. Here's a look at three things that went wrong at Hershey—and the subsequent lessons learned. #1: The Big Bang"> What Went Wrong #1: The Big Bang The overriding problem appears clear: Hershey was simply trying to do too much at once. In cosmology, the Big Bang theory tells us the universe sprang into being in an instant, wiping out everything that went before. In Hershey's case, it was the old logistics systems that had allowed it to do business for years that were wiped out in a flash. In late 1996, Hershey's management approved what came to be known as the Enterprise 21 project, which would largely replace legacy mainframe systems with new enterprise client/server software. Enterprise 21 was partly a Year 2000 project, allowing...
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...made 1 million dollars. This was the name before it was Hershey. Soon the Lancaster Caramel Company was shipping all over the U.S. and Europe. As time progressed on, Mr. Hershey opened a school for orphan boys called the Milton Hershey School; it has since opened its doors to girls as well. In 1918, Hershey transferred the bulk of his considerable wealth, including his ownership in the Hershey Chocolate Company and other enterprises, to the Hershey Trust to be held for the Hershey Industrial School. The Hershey’s Company many products to choose from such as Hershey’s milk chocolate bar, Reese’s peanut butter cups, Kit Kat wafer bars, Hershey’s Kisses, Jolly Ranchers, Ice Breakers, and many more. These products are only, to name a few. Hershey does not only offer sweets to eat also offer job opportunities, or if one would like to be an investor in the company. Mission Statement Hershey’s considers their mission as an Undisputed Marketplace Leadership. • Top-tier value creation, driven by superior performance across the business system. • Organizational capabilities and passion that compete in the present and build for the future. • Commitment to enabling and encouraging balanced, healthy lives. • Portfolio of brands that: delights consumer across...
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...Failed Strategic Information Systems By Grace Ceniza A report submitted in partial fulfillment of the requirements For CIS370-05 In Computer Information Systems School of Business and Public Administration California State University, Dominguez Hills Spring 2012 Table of Contents I. Hershey Food Corporation o Background 3 o Implementing ERP 3 o Expected benefits 3-4 o What went wrong? 4 II. Denver Airport Baggage System o Background 4-5 o Expected benefits 5 o What went wrong? 5 III. United Kingdom Passport Agency o Background 6 o What went wrong? 6 IV. FBI’s Trilogy Terminated o Background 7 o What went wrong? 7-8 V. Reference 10 Hershey Food Corporation Background Milton Hershey founded Hershey Food Corporation in 1894. Hershey was famous for a lot of innovations and was credited for several chocolate variants like chocolate syrup, chocolate chips, Krackle Bar, ice cream toppings, hot fudge and a lot more. By 1895, Hershey Corporation was manufacturing more than 114 different varieties of chocolates. Their most popular products are Hershey’s kisses, Kit Kat, Reese’s Peanut butter cups and more. Their sales went up from US$334 million in 1969 to $4.94 billion in 2006. Most of their sales that was 40% of their profit came from sales...
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...Strayer University HRM 500 Hershey’s Sweet Mission Human Resource Management Foundations PROFESSOR GEORGE OJIE-AHAMIOJIE JANET A. ROBBINS October 21, 2011 Introduction The Hershey Company mission involves as they stated, “winning with an aligned and empowered organization…while having fun.” (Noe, 2011) Everyone wants to have fun as you can see by my title page; I am one of those people. Milton Hershey has left his legacy in the company’s core values for many years to come. The four values identified in the mission statement are instilled in their human resource management they are as follows: * We are Opening to Possibilities by embracing diversity, seeking new approaches and striving for continuous improvement. * We are Growing Together by sharing knowledge and unwrapping human potential in an environment of mutual respect. * We are Making Difference by leading with integrity and determination to have a positive impact on everything we do. * We are One Hershey, winning together while accepting individual responsibility for our results. (Noe, 2011) (The Hershey company, 2011) . At Hershey, they have a unique heritage, iconic brands, talented employees and a company culture founded on the principles of giving back to our global community. Recommend the redesign of Hershey’s performance management system to appeal to the diverse groups that it employs Hershey’s employs many diverse groups who need to understand in-depth knowledge of the...
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...Enterprise Systems for Management Instructor’s Manual – Motiwalla & Thompson CHAPTER 1: INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT CHAPTER OBJECTIVES: • • • • Understand the information systems evolution and its historical role in organizations leading to systems integration and eventually Enterprise Resource Planning (ERP). Learn about ERP systems and their evolution, components and architecture. Understand the benefits and drawbacks of implementing ERP systems and how they can help an organization improve its efficiency and worker productivity. Have an overview of the implementation process (e.g., the ERP life cycle, business process reengineering, project management, and change management). Understand the role of staff, vendors, consultants, and the organization in making the ERP implementation process successful. Comprehend the ethical, global and security challenges while implementing an ERP system, as well as get an overview of ERP vendors and industry trends. CHAPTER OUTLINE: I. II. III. IV. V. Opening Case: Hershey’s Enterprise 21 Project Preview a) Enterprise Systems in Organizations b) Information Silos and Systems Integration c) Enterprise Resource Planning (ERP) Systems Enterprise Resource Planning Systems a) What is an ERP? b) Evolution of ERP c) Business Process and ERP d) ERP System Components e)...
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...Enterprise Resource Planning and Systems Integration Cesar Campana, MMIS0627 Graduate Student, Nova Southeastern University School of Computer and Information Sciences September, 2011 Author Note Cesar Campana, Graduate Student, School of Computer and Information Sciences, Nova Southeastern University. Correspondence concerning this paper should be addressed to Cesar Campana, 2240 SW 50 Av, Fort Lauderdale Fl 33317. E-mail: cc1604@nova.edu Background Enterprise Resource Planning integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application (Hossein, 2004). The ERP is “Web enabled”, meaning that they work using Web clients, making them accessible to all of the organization’s employees, clients, partners, and vendors from anytime and anyplace, thereby promoting the BU’s effectiveness (Motiwalla & Thompson, 2012). The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization (Vikki, 2010). The disadvantages comes from the tight budget organizations allocate to personnel training thus resulting inadequate use of ERP systems and poor testing and implementing of changes. The experience and skill of the...
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...Mission Statement 10 SWOT Analysis 11 Organizational Structure 14 Company’s Capabilities and Processes 14 Industry environment 15 Customers 15 Who are they 15 Any recent or expected changes in behavior, attitudes, composition of the customer base 16 What are they purchasing from your company 16 Why are they buying company’s product 16 Describe order qualifying and order winning characteristics of your company’s product(s) 17 Context 17 Industry 17 Economics 19 Technological 21 Societal 22 Legal 24 Competitors 25 Kind Healthy Snacks 25 Nature Valley 28 Kellogg’s 31 Financial Ratio 34 Collaborators 35 Growth Strategy 36 Detailed description of the growth strategy 37 Goals/Objectives 37 Segmentation 37 Targeting 38 Positioning 38 Strategy Execution 40 Product 41 Goals and Product Description 41 Process Description 42 Life Cycle Stage 43 Place 43 Goals and Market Exposure 43 Channels Used 44 Supply Chain System 45 Promotion 46 Goals 46 Promotional Blend 47 Price 50 Goals 50 Value Proposition and Price Sensitivity 50 Pricing Strategy (Short Term/Long Term) 51 Breakeven Analysis 52 Implementation and Control 53 Timing and Implementation Activities 54 Sales Estimates (Forecast) 54 Forecast/Estimates 56 Scenario Analysis and Discussion 57 Sensitivity Analysis and Discussion 59 Comprehensive Financial Analysis 64 Conclusions 65 Appendix 67 Citations 75 Executive Summary The...
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...HALL MA NAGEMENT INFORMATION SYSTEMS TITLES MIS: Brown/DeHayes/Hoffer /Martin/Perkins, Managing Information Technology 6/e © 2009 JessuplValacich, Information Systems Today 31e © 2008 Kr oenke, Using MIS 21e © 2009 Kr oenke, Experiencing MIS © 2008 Laudon/Laudon, Management Information Systems 10le © 2007 Laudon/Laudon, Essentials of Management Information Systems 81e © 2009 Luftman et aI., Managing the IT Resource © 2004 Malaga, Information Systems Technology © 2005 McKeen/Smith, IT Strategy in Action © 2009 McLeod/Schell, Management Information Systems 10le © 2007 McNurlin/Spr ague, Information Systems Management In Practice 7Ie © 2006 Miller, MIS Cases: Decision Making with Application Software 41e © 2009 Senn, Information Technology 31e © 2004 Database Management: BordoloilBock, Oracle SOL © 2004 Bordoloi/Bock, SOL for SOL Server © 2004 Fr ost/DaylVanSlyke, Database Design and Development: A Visual Approach © 2006 Hoffer/Prescott/Topi, Modern Database Management 91e © 2009 Kroenke/Auer, Database Concepts 31e © 2007 Kroenke, Database Processing 10Ie © 2006 Perry/Post, Introduction to Oracle10g, © 2007 Per ry/Post, Introduction to SOL Server 2005 © 2007 Systems Analysis and Design: Hoffer /GeorgelValacich, Modern Systems Analysis qnd Design 5'/e © 2008 Kendall/Kendall, Systems Analysis and Design 7Ie © 2008 Valacich/George/Hoffer, Essentials of Systems Analysis and Design 31e © 2006 Object-Oriented Systems Analysis and Design: Geor ge/Batr...
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...Review for ERP/Systems Integration & Administration Lec. Dr. Abdullatif Ghallab ghallab@gmail.com أسئلة للمراجعة قبل امتحان نصف الفصل الدراسي الثاني – للعام الجامعي 5102-6102م اسم المقرر: تخطيط موارد المؤسسة/تكامل وإدارة النظم TYPES OF QUESTIONS A. END-OF-CHAPTER QUESTIONS B. ESSAY QUESTIONS C. DISCUSSION QUESTIONS D. CASE QUESTIONS E. TRUE & FALSE QUESTIONS F. MULTIPLE CHOICES QUESTIONS CH1 X X √ CH3 X X √ √ CH4 √ √ √ X X X X X X √ √ √ 1 CH2 X √ X √ √ Review for ERP/Systems Integration & Administration Lec. Dr. Abdullatif Ghallab ghallab@gmail.com CH01- INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT A. DISCUSSION QUESTIONS 1. Refer to the Hershey case. What were the goals and details of the Enterprise 21 project? 1. 2. 3. 4. 5. 2. Establish a single supply chain across all divisions. Streamline all business processes by reengineering them across all functional areas. Increase the gross margin and maintain sales growth. Save $75 – 80 million through corporate restructuring and closing of older distribution sites. Fix their Y2K problem and replace existing mainframe environment. Refer to the Hershey case. What were some of the key problems that Hershey encountered when choosing, integrating and implementing their new ERP system? The implementation of the ERP for Hershey was beset with difficulties due to a number of failures: a. Project management issues...
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...------------------------------------------------- ------------------------------------------------- Student Registration Number: | 130198710 | | | Word Count: | 2230 | Marketing Audit of Nestlé Crunch Introduction: Nestlé Crunch is a famous chocolate confectionery in the US market, and take up almost 2% market share of the total (Barton 2014). This market audit will be split into three section, and separately analyze the business environment, marketing mix and STP (Segmentation, targeting and positioning). Finally, a conclusion will be drawn in the end of this assignment. Business environment analysis: In this part, it will analysis the business environment by using PEST model, Competitor analysis and consumer behavior theory. PEST Analysis - Political: In general, the political factors includes laws, regulations and taxation that may influence the decision of the company. As the industry of chocolate confectionery is a common goods for the consumers in the USA, so it is less possibility for Nestlé Crunch to be influenced by the political environment. Also, the most important things that Crunch should considered is the regulation about its food safety, which was regulated by U.S Food and Drug Administration (FDA). And Crunch should conform to the requirements of the safety law, such as origin, manufacture and designs. PEST Analysis - Economic: Economic factors have great effect on the operating of company, both on its supply and demand side. Nestlé should consider...
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...currency of the subsidiary is also its home currency. 4 a) If the functional currency is the home currency, 4 b) If the functional currency of the subsidiary is not its home currency, 5 III. Reasons for Translation 5 A. Recording direct business transactions 5 B. Reporting operations conducted through a foreign enterprise 6 C. Measuring the enterprise exposure to the effects of currency fluctuation 7 D. Communicating with foreign audiences-of-interest 7 IV. Financial statement effects of alternative translation rates 7 A. Exchange rates used in translation 7 1. Current rate: 7 2. Historical rate: 7 3. Average rate: 8 B. Risks associated with fluctuations of exchange rates 8 1. Currency transaction risk 9 2. Currency translation risk 9 V. Foreign Currency Translation Methods 9 A. Single rate method 10 1. Current rate method 10 B. Multiple rate method 11 1. Current/noncurrent method 11 2. Monetary/nonmonetary method 11 3. Temporal method 12 VI. Foreign Currency Transactions 13 A. Exchange rate mechanisms 13 1. Independent float: 13 2. Pegged to another currency: 13 3. European monetary system: 13 B. Foreign currency markets 13 1. Exchange Rate 13 2. Types of Exchange rates 14 a) Spot rate: 14 b) Forward rate: 15 c) Swap transaction: 15 C. Hedging foreign exchange risk 16 1. Definition 16 2. Techniques for hedging foreign exchange risk 17 VII. Conclusion 18 VIII. References 20 *...
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...thomas a . meyer How Great companies Get Started in terrible times Innovate! Innovate! How Great Companies Get Started in Terrible Times THOMAS A. MEYER John Wiley & Sons, Inc. Copyright © 2010 by Thomas A. Meyer. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose...
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