enterprise system recommendation-sugar squared, inc. case study
DESCRIPTION
The type of enterprise that best suits the situation is ERP (enterprise resource planning) for SugarSquared, Inc. A medium-sized production unit intends to increase its business in the coming years.TRANSCRIPT
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Enterprise System Recommendation-SugarSquared, Inc. Case study
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Enterprise System Recommendation-Sugar Squared
Sugar Squared, Inc. manufactures candy in Riyadh and distributes its products throughoutthe KSA. The organization has over 300 employees in three locations. Its functionalbusiness units currently work in silos, with data pertaining to their various departments heldin separate, legacy systems. The company’s revenues are growing, and it has an online retailsite.
You have been tasked with recommending an enterprise system to senior management.Address the following:
Which type of enterprise system would you recommend? Why? What are the benefits of implementing such a system?
What challenges do you foresee in implementing this system? How would you addressthese?
What are some of the vendors that offer such systems? Is there one that’s preferable giventhe organization’s needs? Why? What business factors should be addressed in order to makethis determination? Explain.
Your well-written report should be 4-5 pages in length, not including the cover andreference pages. Use academic writing standards and APA style guidelines, citation must beat each paragraph, using at least 8 scholarly references, as appropriate.
Use extra analysis when you explain.
Introduction to the case
Sugar Squared, Inc. is a renowned candy manufacturer in KSA. The firm has more than
300 employees, and it operates from three different locations in KSA with its
headquarters in Riyadh, KSA. Sugar Squared, Inc. uses silos for its production units but
the company has separate data centers, and the department collects, organizes, and keeps
a record of organizational data. Sugar Squared, Inc. supplies its candies in the entire
country three these three locations.
One of the most exciting things about Sugar Squared, Inc. is that it has online marketing
and advertisement services along with a retail website even though it is a medium-sized
organization. The performance of the company is satisfactory, and its profit is increasing
along with its revenue and sales.
The study seeks to provide an efficient enterprise system for senior management of
Sugar Squared, Inc.
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The recommended type of enterprise for Sugar Squared, Inc.
The type of enterprise that best suits the situation is ERP (enterprise resource planning)
for SugarSquared, Inc. A medium-sized production unit intends to increase its business in
the coming years. Therefore, the ERP (enterprise resource planning) is a good option for
SugarSquared, Inc.
The primary reason behind the selection of ERP (enterprise resource planning) type
enterprise for SugarSquared, Inc. is that Sugar Squared, Inc. will be able to make
coordinate among a different unit of the enterprise in real-time. It has just three locations
in the current scenario, and it is distributing candies to the entire nation through these
locations. ERP (enterprise resource planning) will make it easier for the enterprise to
supply information among different departments by coordinating and integration specific
processes and as a result, better decision-making can be done at a specific time.(Akhavan,
2015).
In the same manner, the ERP (enterprise resource planning) would improve the financial
condition and brand name of SugarSquared, Inc. in terms of resources and expansion.
The primary advantage of the ERP (enterprise resource planning) is that it protects the
personal property and assets of the owner from lawsuits. However, SugarSquared, Inc.
would require paying a little more filing fees for ERP (enterprise resource planning)
(Crispim, 2015).
Benefits of Implementing ERP (enterprise resource planning)system
Some of the potential benefits Sugar Squared, Inc. can enjoy through ERP (enterprise
resource planning) include:
Easy to Initiate
The ERP (enterprise resource planning) is easy to initiate. There are fewer legal
requirements for Sugar Squared, Inc. to form an ERP (enterprise resource planning)
enterprise. Likewise, the parties forming ERP (enterprise resource planning) need to
register their ERP (enterprise resource planning) for taxation, and it is a straightforward
process. Sugar Squared, Inc. and its partners can easily do these using online forms
(Johanson, 2015).
The share of burden or workload
Sugar Squared, Inc. can form an ERP (enterprise resource planning) to share its
workload. Because in ERP system work is distributed among departments and each
department carry out and integrate it can use the resources and links of its partners to
expand its business. The major issue for Sugar Squared, Inc. is that it has just three
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locations and it has to distribute candies to the entire country from this location. Forming
ERP (enterprise resource planning) would make it easy for Sugar Squared, Inc. to
increase its number of locations and in the business expansion (Su, 2015).
Improved-decision making
Another advantage of an ERP (enterprise resource planning) is that it would help Sugar
Squared, Inc. to improve its decision-making process. The exchange of ideas and debates
from different departments often results in useful and innovative ideas. Therefore, Sugar
Squared, Inc. can improve its decision-making process through an ERP (enterprise
resource planning) enterprise (Kamalahmadi, 2016).
Improved knowledge, skills, and contacts
ERP (enterprise resource planning) will help Sugar Squared, Inc. to improve its skills,
knowledge through sharing of ideas and experience among partners. Likewise, it would
improve the links and create new contacts for Sugar Squared, Inc. Sugar Squared, Inc. can
improve the skills and talent of its employees by giving them combine training and
through an employee exchange program.
Less legal obligations and lawsuits
Need to form ERP (enterprise resource planning) to protect its assets and liabilities.
Moreover, it would help the organization to avoid various lawsuits (Kamalian, 2015).
Challenges in implementing an enterprise system
Some of the potential challenge Sugar Squared, Inc. can face during the implementation
of the ERP (enterprise resource planning) enterprise system include:
No legal status of the business
One of the potential challenges for Sugar Squared, Inc. undergoing ERP (enterprise
resource planning) enterprise is that an ERP (enterprise resource planning) enterprise
has no legal status of its own. The death of one of the partners of such enterprise type can
dissolve the legal status of Sugar Squared, Inc. Moreover, it has to face various legal
complications while undergoing an ERP (enterprise resource planning). Sugar Squared,
Inc. would need to hire legal experts or it can take services of various enterprise service
providers to understand the legal requirements and complications before moving towards
ERP (enterprise resource planning) enterprise style.
Limited capital access
Another challenge for Sugar Squared, Inc. undergoing into ERP (enterprise resource
planning) is limited access to capital as compared to a limited enterprise. The primary
reason is that banks and other monetary institutions would do more scrutiny for Sugar
Squared, Inc. before lending a loan to it (Mazur, 2016). In the same manner, the
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insurance companies would do more scrutiny for Sugar Squared, Inc. The firm has to
prepare various additional documents to get access to these funds. In the same manner,
SugarSquared, Inc. may need to hire more people in its finance department to deal with
its financial matters. It would increase its operational cost and reduce the scope and profit
margin of the business.
Some vendors offering ERP (enterprise resource planning) system
Some of the potential vendors that can offer ERP (enterprise resource planning)
enterprise system to Sugar Squared, Inc. in the Kingdom of Saudi Arabia include NEC
Saudi Arabia, ABANA Enterprise Group, Advanced-Data Systems, SAP Software
Solutions, SUSE, Ejada, Odoo, and Logicom Distribution (Kulińska, 2014). All these
vendors are providing consultancy and field services to organizations looking to go for
ERP (enterprise resource planning). Sugar Squared, Inc. can take services from any of
these vendors to understand the complete pattern of undergoing ERP (enterprise
resource planning). These vendors would help the organization to understand the pros of
cons of an ERP (enterprise resource planning) enterprise in detail.
Conclusion and Recommendations
To conclude, the report recommends the senior management at Sugar Squared, Inc.
undergo an ERP (enterprise resource planning) system to ensure its operational success
and to improve the growth and expansion of the organization. The proposed enterprise
system would help the organization to limit lawsuits and improve its distribution in the
KSA. Moreover, the company can open new branches in the country to enhance its
business.
Another option for Sugar Squared, Inc. is to find an international partner to become a
multinational organization. However, it would require numerous documentation and
surplus funds to move towards an international ERP (enterprise resource planning)
enterprise. ERP (enterprise resource planning) enterprise style would help Sugar
Squared, Inc. to improve the skills and abilities of its employees and it can use the skills
and experience of its partner’s employees to improve its performance. Nevertheless, it is
not an as simple a process as it seems because it includes numerous legal and financial
complications and challenges.
References
Akhavan, P. B. (2015). FQSPM-SWOT for strategic alliance planning and partner
selection; a case study in a holding car manufacturer company. . Technological and
Economic Development of Economy, 21(2), 165-185.
Crispim, J. R. (2015). Stochastic partner selection for virtual enterprises: a chance-
constrained approach. International Journal of Production Research, 53(12), 3661-3677.
Johanson, J. &. (2015). Internationalization in industrial systems—a network approach. .
In Knowledge, networks and power Palgrave Macmillan, London., 111-132.
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Kamalahmadi, M. &. (2016). A review of the literature on the principles of enterprise and
supply chain resilience: Major findings and directions for future research. . International
Journal of Production Economics, 171, 116-133.
Kamalian, A. R. (2015). Cooperation networks and innovation performance of small and
medium-sized enterprises (SMEs). International Journal of Management, Accounting
and Economics, 2(3), , 233-243.
Kulińska, E. (2014). CREATING THE NETWORKING ENTERPRISES-LOGISTICS
DETERMINANTS. LogForum, 10(2).
Mazur, V. V. (2016). Innovation clusters: Advantages and disadvantages. International
Journal of Economics and Financial Issues, 6(1S), 270-274.
Su, W. H. (2015). Integrated partner selection and production–distribution planning for
manufacturing chains. Computers & Industrial Engineering, 84, 32-42.