One of my University Assignment and in this project, I analysis the Assignment Scenarios using SWOT Analysis and also discuss some impact.

1. COMP 1647 : Information Technology Planning
Due Date : 2/11/2017
School Name : KMD (Yangon, Myanmar)
Word Count : 3088

2. Table of Content
1. Introduction 4
1.1 Background and current issue of Continent 6 cafe 4
2. Strategic Evaluation 5
2.1 SWOT Analysis 5
2.1.1 Strengths 6
2.1.1.1 Global Purchasing 6
2.1.1.2 Regional Office develop its own processes and IT system 6
2.1.1.3 HO get good quality 6
2.1.2 Weaknesses 6
2.1.2.1 Regional officer are not skillful in purchasing 6
2.1.2.2 All staff are not proficient in English 6
2.1.2.3 Reporting is Weak 6
2.1.3 Opportunities 7
2.1.3.1 Good rating in quality 7
2.1.3.2 A lot of people switch drinking tea to coffee 7
2.1.3.3 Brazil produced largest tonnage of coffee 7
2.1.3.4 Damaged production of coffee 7
2.1.4 Threads 7
2.1.4.1 Bad rating in price 7
3. Impact of IS 8
3.1 Major System of Continent 6 Cafe 8
3.1.1 Continent 6 Global Purchasing Management System 8
3.1.2 Brief Description of the System 8
3.1.3 15 Major Functional Requirement 9
3.1.3.1 Register Item Info 9
3.1.3.2 Register Supplier Info 9
3.1.3.3 Register Bank Info 9
3.1.3.4 Register Stock 9
3.1.3.5 Confirm Stock Arrive to Regional Office 9
3.1.3.6 Receive Confirmation Stock Arrive from Cafe and Confirm Stock Arrive to
Head Office 10
3.1.3.7 Receive Confirmation Stock Arrive from RO and Cash Payment 10
3.1.3.8 Check Stock 10
3.1.3.9 Order Item to Regional Office 10
3.1.3.10 Receive Order Request from Cafe 10
3.1.3.11 Order Item to Head Office 10

3. 3.1.3.12 Search Supplier 10
3.1.3.13 Report Stock to Regional Office 10
3.1.3.14 Report Stock to Head Office 10
3.1.3.15 Management Stock 11
3.1.4 Reporting Requirement from the System 11
3.2 Communicate Between Regional Office and Head Office with IT 12
3.2.1 Usage of G Suite to communicate between RO and HO 12
3.3 Biggest Changes and Suggestion of using new systems 13
3.4 Affordable to use the new systems 14
4. References 16

4. 1. Introduction
1.1 Background and current issue of Continent 6 cafe
Continent 6 Cafe is a coffee shop that has outstanding rating on websites about their
quality. It based in Recife, Brazil and consists of 12, 000 cafes and 40 regional offices over the
six main continents of the world. Currently, CEO allowed regional office to develop theirs own
processes and IT systems and he believe that approach can make the number one cafe group
in the world. Cafe group already has good rating in quality on websites but it also describe the
one of more expensive cafes to visit. The main reason of so expensive is that the regional
officers are not skillful in purchasing and the company moving forward with global purchasing.
According to current business workflow, there have several issues in business. Among
them, the group is remarking too expensive to visit that is because of insufficient skill in
purchasing and the Head Office did not have the mention for that issues. That is another issue
in reporting. Currently the regional office only report financial to Head Office. Now, the group is
planning to move forward with global purchasing but it have the other issues, staff in regional
office are not skillful in universal language, English. Anyway the group shall use global
purchasing because many coffee production countries have seen to damage the producing of
coffee course of changing the world weather patterns. If the group will not use global
purchasing, the cost of purchasing will be more expensive.

5. 2. Strategic Evaluation
2.1 SWOT Analysis
SWOT stand for Strengths, Weaknesses, Opportunities and Threads and it can be used
to understand Strengths and Weaknesses, and to identify the Opportunities open and Threats
that facing.
The following are the SWOT Analysis of current Continent 6 Cafe’s system.

6. 2.1.1 Strengths
2.1.1.1 Global Purchasing
The group is planning to moving forward with global purchasing. The company face the
issue that is too expensive to visit coffee shop. The main reason of that issue regional buyers
are not enough skill in purchasing and the group start consider to purchase for whole chain.
2.1.1.2 Regional Office develop its own processes and IT system
Currently, each regional office run its own processes and IT system. That can help to
reduce general cost because if all regional office and all cafe shop will use same IT system,
there must research to catch all requirement and need to consider for UI/UX for all position staff.
Without using same processes and IT system is saving the cost annually.
2.1.1.3 HO get good quality
Head Office currently get the good quality of coffee from local producers in Brazil. That is
one of the reason of getting good rating in quality on websites.
2.1.2 Weaknesses
2.1.2.1 Regional officer are not skillful in purchasing
That is the main reason of why too expensive for customer to visit coffee shop. The cost
of purchasing is higher than necessary because of regional buyers are not enough skill in
purchasing.
2.1.2.2 All staff are not proficient in English
Most of staff in senior management of the office cannot be proficient in English. That is
the major issue if the group moving forward with global purchasing. So, the training will require
and will delay to use of global purchasing.
2.1.2.3 Reporting is Weak
Currently, only financial reporting between regional office and head office. That’s not
sufficient to control the whole group. The regional office did not mention requirement of
purchasing and did not report the detail information of purchasing. So, the Head Office cannot
easily know the reason of why too expensive to visit coffee shop. That is the biggest example
for weakness of reporting system.

7. 2.1.3 Opportunities
2.1.3.1 Good rating in quality
The group has the good rating on a lot of websites about coffee shop. That can attract
customer to visit coffee shop.
2.1.3.2 A lot of people switch drinking tea to coffee
According to a new medical research, significant switch drinking tea to drinking coffee.
That is the opportunity to make more customer to visit group’s coffee shop. The group has
already got the good rating in quality if the group will change the cost, the group will be number
one cafe group in the world.
2.1.3.3 Brazil produced largest tonnage of coffee
The Head Office only purchase for whole chain is coffee and currently get good quality of
coffee from local producers. Brazil produced largest tonnage of coffee over 40 years and then
Head Office will fine more good quality and less cost of coffee.
2.1.3.4 Damaged production of coffee
While Brazil produced largest tonnage of coffee over 40 years, many coffee producing
countries have seen harvests ravaged due to change of weather patterns. That is the
opportunity to fight the cost with other group.
2.1.4 Threads
2.1.4.1 Bad rating in price
The company is facing the issue of too expensive to visit coffee shop. That will be the
reason of why cannot get the target amount of customer to visit coffee shop even got great
rating in a lot of websites.
Citation
"SWOT Analysis (Strengths, Weaknesses ...."
https://www.mindtools.com/pages/article/newTMC_05.htm​.
Accessed 2 Nov. 2017.

8. 3. Impact of IS
3.1 Major System of Continent 6 Cafe
If the group move forward with global purchasing, there is need to use to communicate
between Head Office and each regional offices.
3.1.1 Continent 6 Global Purchasing Management System
Continent 6 Global Purchasing Management System is the Information System Software
for global purchasing between Head Office and their supplier and receive order from each
Regional Offices to Head Office. The system has three vertical that are Head Office, each
Regional Office and each cafe shop.
In Head Office vertical, there have some major functions in software, they are Register
Item Info, Register Supplier Info, Register Bank Info, search supplier, receive confirmation stock
arrive from Regional Office, cash payment and manage stock.
In Regional Office vertical, there have also some major functions in software, they are
receive order request from cafe, order item to HO, receive stock report from cafe, report stock to
HO, receive confirmation stock arrive from cafe and confirm stock arrive to HO.
In Cafe Shop vertical, there have also some major functions in software, they are
register stock, check stock, order item to RO (Regional Office), report stock to RO and confirm
stock arrive to RO.
3.1.2 Brief Description of the System
(Register Item Info) All of the item require for the whole chain, ​(Register Supplier Info)
all of the Supplier Information including available for which item, can free deliver from
somewhere to somewhere and how much cost for deliver from somewhere to somewhere and
(Register Bank Info)​ all bank informations, are register in HO.
(Register Stock) when arrive order item to each Cafe Shop, the Cafe’s staff register the
item and ​(Confirm Stock Arrive to Regional Office) send the confirmation letter to Regional
Office to get ordered item. ​(Receive Confirmation Stock Arrive from Cafe) In the Regional
Office, receive the confirmation letter for Cafe, save and then ​(Confirm Stock Arrive to Head
Office) generate confirmation letter for each supplier (this letter will include which Cafe have
already which item, total quantity for each item and total price) to Head Office via using system.
(Receive Confirmation Stock Arrive from Regional Office) ​Check order sheet and ​(Cash
Payment)​ cash the payment for order via using system.
(Check Stock) Each cafe shop check the stock everyday and check which item need to
start order and if the stock will need to order, ​(Order Item to Regional Office) start make the
order ( including which item is need, how many item want to order and which item need to arrive
at least some time that is very important in this system because Head Office does not borrow

9. warehouse) to Regional Office. ​(Receive Order Request from Cafe) If receive order from each
cafe, the Regional Office collect all order from each cafe and summarize order and ​(Order Item
to Head Office) ​produce order request and send to Head Office via using system. If order
request arrive from regional office to head office, collect and summarize from each order of
each Regional Office and ​(Search Supplier) search which supplier can delivery within the time
limit that are defined each shop and start order the Item.
(Report Stock to Regional Office) Each cafe daily report the stock status to regional
Office and ​(Report Stock to Head Office) each regional office collect and summarize the stock
status and report to head office. ​(Management Stock) Head Office receive and summarize the
stock status from Regional Office and they will decide which stock will be needed within some
time period and they can preview contact the supplier and check available to order or not. If not,
they can think another way to get the order.
3.1.3 15 Major Functional Requirement
There are a lot of function in the system. Among them, the following 15 functions are the
most important in the system. Some functions necessary for using the system and some are
functions that to catch the main purpose of group target. The group has not use warehouse
system because the group want to reduce cost.
3.1.3.1 Register Item Info
Register the each item and this function only do in Head Office. This function is
necessary function for the system because the system is built on item.
3.1.3.2 Register Supplier Info
Register Information of supplier and this function also do in Head Office. This function is
necessary function because the main function of this system is to purchase the item and if any
supplier info have not, purchasing process will not make.
3.1.3.3 Register Bank Info
All of order will cash online via using system because the HO is based in Brazil and it will
order for all cafe around the world and the supplier may have around the world. So, this function
is necessary function.
3.1.3.4 Register Stock
Each cafe need to register stock when order is arrived. This function is necessary
function because if stock info is not update, the system cannot know which items are need to
order.
3.1.3.5 Confirm Stock Arrive to Regional Office
Each cafe confirm arrival of stock from order to Regional Office. This function is
necessary function because this function is related to payment.

10. 3.1.3.6 Receive Confirmation Stock Arrive from Cafe and Confirm Stock
Arrive to Head Office
Regional Office receive the confirmation arrival of stock from each cafe and collect and
summarize the data and send confirmation letter to head office via system. This function is also
related to payment.
3.1.3.7 Receive Confirmation Stock Arrive from RO and Cash Payment
Head Office receive the confirmation arrival of stock from each RO and collect and
summarize the data and then cash the money to each supplier with online payment using
system. This function is also related to payment.
3.1.3.8 Check Stock
Each cafe need to check the stock daily and they will know which items are need to
order and need to arrive within some period of time. This function is necessary because there
have no warehouse in group and the items need to arrive right time.
3.1.3.9 Order Item to Regional Office
This function is order the items from each shop to their regional office. Each order must
be included the end date to deliver. This function is necessary because this is related to order.
3.1.3.10 Receive Order Request from Cafe
Regional Office receive the order from each shop and collect and summarize the order
data. This function is related to order.
3.1.3.11 Order Item to Head Office
Generate the order sheet for all shop and send it to head office when complete to collect
of order data from each shop. This function is related to order.
3.1.3.12 Search Supplier
Head Office receive the order sheet from each regional office and collect and summarize
all order sheet. And then, search supplier to make the order. This function is related to order.
3.1.3.13 Report Stock to Regional Office
Each cafe daily report the stock status to regional Office. This function is necessary to
catch the requirement of group.
3.1.3.14 Report Stock to Head Office
Each regional office collect and summarize the stock status and report to head office.
This function is necessary to catch the requirement of group.

11. 3.1.3.15 Management Stock
Head Office receive order from RO and summarize the order and decide which item will
need to require and preview contact to supplier and check the stock of supplier. This function is
necessary to catch the requirement of group.
3.1.4 Reporting Requirement from the System
Reporting of Stock from each cafe and each regional office. That reports are very
important is the main requirement of this system. The group want to save cost of warehouse.
There have two stock report in this system. One is stock report from each cafe manager to
commercial director of Regional Office and the other is from commercial director of regional
office to buyer of head office.

12. 3.2 Communicate Between Regional Office and Head Office
with IT
Currently, the communication between regional office and head office is very weak. Only
have one financial report from RO to HO. The HO does not know the information of every issues
that each regional office and each cafe. The HO does not know the issue, the RO staff are not
sufficient purchasing skill and the shops are too expensive to visit. This is point to use same
software and communicate between RO and HO. So, the group should be use cloud based
productivity and collaboration tools like G Suite.
3.2.1 Usage of G Suite to communicate between RO and HO
G Suit is cloud based productivity and collaboration tool, produce of Google and it has a
lot of service and it cost only $5/user/month. The management level of staff in Regional Office
and Head Office shall use this tools. If you use G Suit, you is the package of all google product
such as Gmail, Google Drive, Google Docs, Sheets, Slides and Forms, Google Sites, Google
Calendar, etc. G Suit also have enterprise features like custom email addresses at a domain
(eg. domain@companyname.com) , unlimited cloud storage, additional administrative tools and
advanced setting. Custom email addresses domain is necessary for group image. If the group
will use G Suit, the staff will freely collaborate working between RO and HO. The high level of
management staff can easily see the status of work. So, the reporting between RO and HO will
be synchronized. The group will reduce a lot of workload to communicate between RO and HO.
Citizion
​"G Suite – Gmail, Drive, Docs and More ...."
https://gsuite.google.com/​.
Accessed 2 Nov. 2017.
"4 Benefits of using G Suite - Wisnet.Com." 2 Mar. 2017,
https://www.wisnet.com/4-benefits-of-using-g-suite/​.
Accessed 2 Nov. 2017.

13. 3.3 Biggest Changes and Suggestion of using new systems
The biggest changes of using new systems is that staff will face language problem and
some position are not necessary. Most of staff in Contient 6 are not proficient in English and the
system will use English for whole system. If the staff cannot use computer, it will be the another
problem of using new systems.
There have need to hire one staff in each cafe shop to check stock, order item and
report Stock to Regional Office. And no need 2 buyers in each Regional Office because all of
the purchasing will be made in Head Office. In Head Office, there will need to appoint 40 buyers
for 40 Regional Offices. And no need to 4 buyers at old systems at Head Office.
And also need to training of English language who are difficult to use English and also
provide the training for usage of new systems.

14. 3.4 Affordable to use the new systems
In this section, I would like to show ROI (Return On Investment) with some financial
data. “ROI measures the gain or loss generated on an investment relative to the amount of
money invested. ROI is usually expressed as a percentage and is typically used for personal
financial decisions, to compare a company’s profitability or to compare the efficiency of different
investments.”
The formula of ROI is
ROI = (Annual Profit / Cost of Total Investment) * 100
The following graph is five year calculation of Continent 6 cafe using new systems.
Year 0 Year 1 Year 2 Year 3 Year 4
Development Fee of new
System
- $ 50000000 $ 0 $ 0 $ 0 $ 0
Maintenance and Modify
the System
$ 0 - $ 30000000 - $ 20000000 - $ 800000 $ 0
Annual Software License
Fee
- $ 10000000 - $ 10000000 - $ 10000000 - $ 10000000 - $ 10000000
Server Fee - $ 5000000 - $ 5000000 - $ 5000000 - $ 5000000 - $ 5000000
Training of usage
software and English
- $ 5000000 - $ 3000000 - $ 1000000 - $ 500000 - $ 500000
40 Warehouses in each
regional office does not
need to borrow when
using software.
$ 100000 * 40
= $ 4000000
$ 100000 * 40
= $ 4000000
$ 100000 * 40
= $ 4000000
$ 100000 * 40
= $ 4000000
$ 100000 * 40
= $ 4000000
Global Purchasing $ 20000000 $ 20000000 $ 20000000 $ 20000000 $ 20000000
Increase Sale Demand $ 10000000 $ 17000000 $ 24000000 $ 31000000 $ 38000000
Reduce 2 buyers in each
Regional Office
$ 80000 * 2 *
40 =
$6400000
$ 80000 * 2 *
40 =
$6400000
$ 80000 * 2 *
40 =
$6400000
$ 80000 * 2 *
40 =
$6400000
$ 80000 * 2 *
40 =
$6400000
Need to appoint 1 buyer
for each regional office
-$ 80000 * 40
= -$ 3200000
-$ 80000 * 40
= -$ 3200000
-$ 80000 * 40
= -$ 3200000
-$ 80000 * 40
= -$ 3200000
-$ 80000 * 40
= -$ 3200000
No need of 4 buyers in
Head Office because
there already have buyer
$ 80000 * 4 =
320000
$ 80000 * 4 =
320000
$ 80000 * 4 =
320000
$ 80000 * 4 =
320000
$ 80000 * 4 =
320000

15. for each Regional Office
Net Profit - $ 32480000 - $ 3480000 $ 15520000 $ 42220000 $ 50020000
ROI - - 7% 20% 24%
According to above graph, after 5 years the net profit is around $ 50 million and Return
On Investment is 24%.
Citation
"Return on Investment (ROI) Definition & Example | InvestingAnswers."
http://www.investinganswers.com/financial-dictionary/technical-analysis/return-investment-roi-1100​.
Accessed 2 Nov. 2017.

16. 4. References
"SWOT Analysis (Strengths, Weaknesses ...."
https://www.mindtools.com/pages/article/newTMC_05.htm​.
Accessed 2 Nov. 2017.
“Coursework of Information Technology Planning”
Accessed 2017
“Textbook of Information Technology Planning”
Accessed 2017
​"G Suite – Gmail, Drive, Docs and More ...."
https://gsuite.google.com/​.
Accessed 2 Nov. 2017.
"4 Benefits of using G Suite - Wisnet.Com." 2 Mar. 2017,
https://www.wisnet.com/4-benefits-of-using-g-suite/​.
Accessed 2 Nov. 2017.
"Return on Investment (ROI) Definition & Example | InvestingAnswers."
http://www.investinganswers.com/financial-dictionary/technical-analysis/return-investment-roi-1100​.
Accessed 2 Nov. 2017.