This report is a result of combined effort put forward by the students of Lahore School of Economics ( Pakistan), BBA-IV.
Faisal Zafar Khan Farooq Haider Quresh M.Ali Mamdot Rehan Alam Khan Waleed Maqsood
Acknowledgments We would like to acknowledge and extend our heartfelt gratitude to our course instructor Ms. Sehr Zarin. It was due to her guidance and assistance at every step that we are able to formulate and compile the report. We are also thankful to the management of Gloria Jean’s who were very welcoming. Their cooperation was really helpful. Our Special thanks to Mr.Omer Rafique (Senior IT Officer).
This report is about Gloria Jeans. In this report we are focusing toward the Information System being used in the organization and how are they facilitated through its use. What are the objectives being achieve and what ease is provided through the usage of Information System in the company. We have tried to apply all our knowledge we have gained in our M.I.S course. The Business Intelligence tools being used by Gloria Jeans, the Internet and how these tools are helping them in achieving their Strategic Objectives are also analyzed.
Table Of Contents Part
Introduction of GJC
Products & Production at GJC
Strategic Objectives of I.S
Software & Hardware at GJC
Data Marts & Warehouses
Business Intelligence Tools
Enterprise Application System
E-Commerce & Ethical Issues
Introduction Company Background Building on emergence of coffee culture nearly 30 years ago, Gloria Jean Kvetko and her husband Ed saw the opportunity to offer much needed high quality specialty coffees in a warm and friendly place in their small town just north of Chicago. Since the opening of the first Gloria Jean’s Coffees store the concept has been an instant success and in 1996 attracted NabiSaleh, an Australian businessman, internationally regarded for his coffee knowledge and expertise, to bring Gloria Jean’s Coffees to Australia with his business partner Peter Irvine.
So successful was the brand in Australia, Nabi and Peter then set their sights on achieving their vision to make Gloria Jean’s Coffees the most loved and respected coffee company, not just in Australia, but in the world, and in 2005 they purchased the brand and development rights for all countries outside of the USA. Gloria Jean’s Coffees reached Pakistani shores in 2007 when Gloria Jean’s Coffees (GJC), Pakistan opened its flag ship coffee house on Mehmud Ali Kasuri Road in Gulberg, Lahore. Under the global umbrella, GJC Pakistan has brought a revolutionary coffee house experience in Lahore. GJC Pakistan being pioneers in gourmet coffee makers, have no doubt set the bar high for all competitors. Vision Statement: To be the most loved and respected coffee company in the world Mission Statement: To build a unified family who consistently serve the highest quality coffee and provides
Products of Gloria jeans’ Coffees Cold Drinks
Production Production is done at the spot. Their business is recipe based so they have to follow it. They have a calibrated process of production for coffee. Coffee machine grinds 7 grams of coffee at a time and at a time there are two shots. So in totality the machine grinds 14 grams of coffee every time it runs. Machine is programmed to drop the shot between 21-27 seconds. They are prohibited to have hot kitchen in the store so they provide food which is manufactured outside the store and could serve it cold outstanding and personalized service in a vibrant store atmosphere
GJC started its operation in Pakistan in 2007. In the 21st Century developing country like Pakistan had realized the importance of Information Technology. Information System was seen as the foundation for business. GJC like other Restaurants is facilitated by Effective Information System. Following are the certain Strategic Objectives that are achieved through the use of Information System: Operational Excellence: The Aloha Software used by GJC helps it in managing its inventory and records efficiently. As a result of this it is able to manage its supplies and keep a well tracked record that helps it in achieving Operational Excellence. Supplier Intimacy: Aloha Software helps GJC achieve Supplier Intimacy. The sale is recorded in the computer that is then transferred to the Head Office. The senior management than take note of the transactions and sales done. Based on the sales data and keeping record of the inventory the supplier are informed about the new supplies delivery. Improved Decision Making: The use of the Information system has facilitated GJC Pakistan in better decision making in different aspects of Operations. Decision regarding the inventory, it helps in customer relationship.
Software’s and hardware used by Gloria Jean’s Coffees. The software that is used by Gloria Jean’s coffees is Aloha technology. It is a Point of Sale Software being used by many retailers and restaurants. It has helped create custom software solutions for medium scale restaurants and retailers.that cover the key manufacturing management aspects, including planning, execution & control and process industries. The ALOHA software is designed for the restaurant owner or manager that wants the two major tools that help with food cost. First is the inventory where you can keep and maintain your inventory of food, paper, chemicals and supplies. This easy to use restaurant inventory software lets you download your prices from your food vendors to automatically update your inventory prices and products. Costing out recipes and menu items is easy and updating prices is automatic The use of software starts at the store end of the Gloria Jean’s coffees where it is used for the inventory management system. The inventory management system of Aloha is geared towards maintaining a large sized warehouse with the help of bar coding. The system enables receiving equipment workers to unload shipments and check in products into the system using packing links to count Stock Keeping Units (SKUs). The system also generates best-fit put away lists and directs the operators to a preferred put-away location, as described by the rules for the particular SKUs. For Gloria Jean’s this inventory management is important especially because they need to keep a check on the expiry dates of the products. The stock inventory list however is made on MS word and MS excel. Aloha is also used by the Gloria Jean’s coffees to calculate the sales transactions, cash receipts, how many items have been sold out. It also helps them in calculating the average of sales transaction per day, per month or per week or even at the hourly base. The data collected from this average is very beneficial for Gloria Jean’s as it helps them in making the forecast budgets, which is also done with the help of Aloha. This feature of Aloha is known as the purchase and sales order management system. The objective of this system is to maintain stockiest purchase and sales order. The system also maintains information about the customers, vendors, stocks and orders. According to the IT manager of Gloria Jean’s Mr. Rafique “management is not concerned with the reporting system provided by any software”. Since they are not using any software at the
management level, they believe that the only responsibility of the management is to extract or bring out the results from the data provided by the software. Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. The overall goals of the customer relation management are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Aloha also has a feature for the customer relation management, but it is not widely used by Gloria Jean’s coffees and they only interact with the customers through the comment cards. Moreover, they are using PTCL’s DSL internet in order to be connected with the world. For aloha technology, the computers needed are not that hi-tech. And for aloha to function properly, Gloria Jean’s coffees is using core i3 processor with a 3gb RAM and 500gb hard drive. Moreover, Gloria Jean’s coffees are using Italian brands of coffee making machines such as cafejo single cup pod tea and coffee brewer and an espresso machine to make their coffees.
Communication networks An intranet is a private computer network that uses Internet Protocol technologies to securely share any part of an organization's information or network operating system within that organization. Gloria Jeans Pakistan Ltd has an intranet network which basically is connected remotely via internet. Gloria jeans Pakistan Ltd are currently using DSL connection of PTCL and the minimum requirement of building up their intranet network is 1mb DSL connection. Through intranet it connects all the Gloria jean’s outlets in Lahore and Islamabad along with this the head office in Australia. The data of any outlet is accessible at any time to Australasia but in Pakistan all the branches can access each other data. . The good feature about this network is that accessing the data of any outlet does not interrupt the workings of that particular outlet. Another advantage of this network is that Gloria Jeans can easily change prices throughout all its branches within 5 minutes. CREMA - Franchise Partner Intranet:
Online Stock Orders Sales Reporting Social Network News & Communication
An extranet is a computer network that allows controlled access from the outside, for specific business or educational purposes. An extranet can be viewed as an extension of a company's intranet that is extended to users outside the company, usually partners, vendors, and suppliers. Gloria jean’s Pakistan ltd connects to its suppliers in a traditional manner that is by telephone and email if any of the suppliers has the facility of email. According to the IT officer of GJC Pakistan Ltd, suppliers in Pakistan are not yet equipped with the technology which is why extranets couldn’t be developed up till now in GJC Pakistan Ltd.
Backup plans, Data warehouses and Data marts In information technology, a backup or the process of backing up refers to making copies of data so that these additional copies may be used to restore the original after a data loss event. Backups are useful primarily for two purposes. The first is to restore a state following a disaster (called disaster recovery). The second is to restore small numbers of files after they have been accidentally deleted or corrupted. The software “ALOHA” that GJC is using has a feature of creating backup of data after every hour. A data warehouse is a database that stores current and historical data of potential interest to decision makers throughout the company. The data originates in many core operational transactions systems, such as systems for sales, customer accounts, and manufacturing, and may include data from Web site transactions. GJC has a data warehouse where all the data from different operations such as reports regarding sales and inventory generated by ALOHA used by GJC and the financial data reports generated in excel sheets are extracted and merged with the budget reports generated by the head office in Australia by the data warehouse which is then used by different departments to make decisions for e.g. marketers to make strategies. Data mart is a small data warehouse containing only a portion of the organizations data for specified function or population of users. In GJC it is used by operations management to keep a record of their efficient barista’s so that they can be given important duties in time of need. Along with this Gloria jeans keep a record of products that have slow sale and can give discount offers.
Role of Business Intelligence in Gloria Jeans Business intelligence is necessary for Gloria Jeans as it uses technologies, processes and applications to collect and analyze internal information which can then be converted to actionable form. It can help a company greatly in the decision making process as it gives the users a chance to analyze the data and see new patterns and relationships. Gloria Jeans has been using the software Aloha which provides data regarding the various processes which take place at a specific franchise. It provides data such as
calculates total number of sales transaction on a daily, monthly or a yearly basis
the total number of items which have been sold
which items have been sold
calculates average number of transactions daily, weekly , monthly or yearly
total number of consumption in terms of hot drinks , cold drinks or eatables
spending patterns of consumers
Number of customers at a certain time of the day, year or month.
The stock to inventory list is meanwhile made on MS word and MS excel. Therefore all this information is used in the following ways: Cost Analysis: The cost of various food commodities is analyzed in comparison to the profit or loss incurred and new strategies can be formulated to decrease cost or any leakages if present or to improve the training of the employees. Customer spending pattern: The information can be used to determine the commodities which are most popular among the customer and therefore allows Gloria jeans to raise the standards of these products in order to increase sales and revenue. Prediction of rise /fall in sales: The data is used to determine the products which are famous in a specific season i.e summer/ winter or a holiday season. Improve organizational functions: from the data provided the functions of the HR , marketing and financial department are improved.
Enterprise Application –At each level of Hierarchy The software that is being used by Gloria jean’s Coffees is ALOHA.
Chief Executive Officer
Manager Operations & Training
Manager Supply Chain & Logistics
Head of Marketing
Asst Store Manager
Sr. IT Officer
Shift/Tr.S hift Managers Store Team
In GJC software starts working from the operational level that is from the store. When a sale is done, it is entered by the barista (Waiter) and is recorded by the software. At the tactical level; Management uses inventory management system, to check when to order, what to order and how much to order. This is done by analyzing the past trend of sales in all the branches of Lahore and Islamabad. Along with this the head office in Lahore gets to know when they have to deliver the raw material to other branches in Lahore and Islamabad. The marketing head of GJC and the manager operations and training work together and they use staff management system. It is so because their guests (Customers) have a direct contact with the staff in the store so it is important for both operations and marketing to keep a close eye on their staff.
For Customer relationship a traditional method of comment cards is used. The data is then entered in Microsoft Access and Excel. Then different queries are asked. At strategic level, i.e. the CEO, analyze the performance with the help of ALHOA. The feature he uses is online reports i.e. The reports are created with the purpose of giving an overall view on the health of your business with the ability to look at the finer things that could be improved. Common Question/Queries asked: Questions/Queries are asked at the tactical and strategic level. They are as following
Forecast for the sales of upcoming month.
Forecast for the stock required for the upcoming 4 months ( As 95% of the raw material are imported so they need minimum 4 months to order)
What will be minimum sales in the upcoming events like Eid or valentines
Monthly/ Hourly sales of other branches in Pakistan
Which product has the highest sales
How much raw material is being used in store (it helps in identifying if wastage is taking place as they can compare it with recipe quickly)
Enterprise applications Gloria Jeans Pakistan is using Aloha Point of Sale system and World Manager. Currently they have license for three features that are intouchlink reporting system, Staff Management System and World Manager.. inTouchLink Reporting System inTouchLink is the premium reporting system of the popular Aloha Point Of Sale system. With this online service, they are able to see how the establishment performs through in depth sales reports. It calculates sales transactions on hourly basis, employee sales, revenues etc. Some of the features of inTouchLink are
-Simple Interface - Profile based security - Sales figures imported automatically from your POS - Online Reports - Easy data browsing through the Data Browser - Easily browse latest reports through shortcuts - Easy printing of reports for offline viewing - Graphs for easy visual comparison The inTouchLink reporting system generates the following reports: Sales Summary Report This report gives a good overview of the totals regarding : Gross Sales,Nett Sales,Banking Sales,Comps,Vat,Voids,Head Count,Ave Per Head (excl Vat),Ave Per Head (incl Vat). It also gives the sales by category and the Payments Breakdown. Total Summary Report The Total Summary Report covers the main totals, GROSS, NETT and Banking Sales and lists them accross the date selection range.
Total Comparison Report The Total Comparison Report follows the basic principle of the Total Summary Report, but allows different stores within a store group to be compared in sales. The graph that is generated gives a good visual indication on how the stores compare from day to day.
Comps Report The Comps Reports shows what type of complimentary product was allocated, the quantity of items as well as the total product price and the grand total for all products in that query range. Voids Report The Voids Report allows you to see the history of voided items for your query range. The report shows which check(receipt) it came from, what the menu item was, the reason, the manager's name, the time of the void, the server and the amount. Product Mix Report The Product Mix report is split up into category, showing the Item PLU, item name, number sold, price sold at and the total amount for that product. Revenue Center Sales The Revenue Center Sales report split includes Sales By Category, Sales By Day Part, Number Of Guests, Number of Checks, Tax, Comps, Payments and Tips. Hourly Sales & Labour The Hourly Sales & Labour report splits up the figures by hour. The figures include Gross Sales, Guests, Guests Average, Checks, Check Average, Labour Hours and Labour Gross / Hour Payments The Payments Report gives a detailed breakdown of the payment types made such as Mastercard, Cash, VISA, Maestro etc. Employee Sales The Employee Sales Report gives a breakdown of sales by one or more employees for a specific day. The information is split by item category and shows the Net Sales, Comps, Promos, Taxes and Gross Sales. World Manager Gloria jeans is using World Manager system which is powered by Superior Service. This system enables managers to track human resources World Manager has the following features:
Provides latest online recruitment system including online application process and online case studies. Managers can monitor and control the application process nationally.
Managers can conduct orientations before new recruits start their first shift.
Area managers store review can be conducted and tracked live. Also store reviews can be viewed according to the region.
Real time customer feedback by using customer survey feature.
Staff Management System Staff Management System provides comprehensive functionality to manage Gloria Jean's employees, the purpose of this system is to maintain individual information of every employee for managing and evaluating and training purposes. This system used by Gloria Jean’s keeps staff's profile, staff's schedule and evaluates and train the staff most effectively. For training it has built in Interactive flash training in which managers can design their own training courses as per their staff requirement; it has the feature of full video training and Built in tutorials. Staff profiles manage various aspects of the staff’s records including staff leave details, reporting staff, schedule conditions and staff schedule From that information, administrators can also assign course of action and duties and also reassign the staff other duties same day or the next. Staff profile also includes personal contact information, ethnic and linguistic profile, education etc. Through staff schedules Administrators can manage staff availability, assign duties to employees and view their schedule. staff management system also helps in evaluation as it can be fed administrator's defined staff goals then a check can be kept against it if those are being achieved or not. It also enters supervisor comments, Define performance criteria for employees and can compare the staff’s performance with previous years and with other employees.
E-Commerce It provides information to customers online on www.gloriajeanscoffees.com/pk, however all transactions take place in person, from their office. The consumer can see the products being offered by them, their merchandise, they can access certain Coffee recipe which they can try at home.
consent. We may use, sell, disclose, or otherwise dispose of Personal Information we collect in the following circumstances: Internal Analysis and Promotions - We may use information about you for our own internal purposes such as to estimate our audience size; measure aggregate traffic patterns; and understand demographic, customer interest and other trends among our guests and customers. Marketing - We may contact you with special offers or promotional information. If you do not wish to receive any further communications from us, please let us know and we will take steps to ensure that you do not receive such further communications. Trade Secret - Information collected through our Site is considered a trade secret of Gloria Jean’s Coffees. As the owner of such information, we may disclose or sell such information as an asset of the company in conjunction with the sale to a third party of our company or a portion of our assets. Any Personal Information that is disclosed to such a third party will remain subject to the protections in the National Privacy Principles. Application Forms Any Application Forms sent to us by you shall be used for the express purpose described on the form. Gloria Jean’s Coffees may also retain the Personal Information supplied by you for a reasonable period thereafter in order to notify you of any similar opportunities that may become available. Any Personal Information collected by Gloria Jean’s Coffees will be stored in its internal databases. Where required or authorised by law - In rare instances, Gloria Jean’s Coffees may be required or authorised by law to provide Personal Information relating to guests to a third party such as a law enforcement agency. Service Providers Gloria Jean’s Coffees uses a range of service providers to help us to achieve the highest quality and efficiency in our business operations. This means that sometimes, other organisations may have access to Personal Information that we hold in order to provide specific services. Our service providers remain subject to the restrictions of the National Privacy Principles in handling this information. Gloria Jean’s Coffees may share Personal Information with any of its group companies. Access to Your Personal Information In the event that Gloria Jean’s Coffees holds any Personal Information about you, you can request to access this Personal Information by emailing us at [email protected]
Gloria Jean’s Coffees may charge a reasonable fee for providing you with access to this information. Aggregate Information We collect Aggregate Information about you and your use of our Site whenever you visit us online. This Aggregate Information generally will not personally identify you or be correlated to Page 19
Vulnerabilities: Software Vulnerability: Gloria Jean’s have only license of the operational package of the Aloha software although licenses for staff and recipe management are also available which should be bought by the firm in order to completely manage their business through management information systems. While using Aloha they just refrain from using Flash Drive without scanning or the use of external hard disks since Aloha is connected to windows directly so it might be a risk that windows gets corrupted and they lose all their respected data.
Internt Vulnerability: Gloria Jeans’ intra and extra nets are connected through DSL. In country like Pakistan this is an extreme problem as Gloria Jeans was first using Wateen but they had connectivity issues. Then they switched to PTCL; which was going good before breaking of the strike which lasted for 3 months and they had to face problems during that period. This is a variable that can’t be influenced by the firm as the internet is provided by the PTA regulatory body of the country. DSL lines are more open to penetration by outsiders as they used fixed internet address. Hardware Vulnerability: GJC has faced the system malfunctioning or breakdown many times. The main reason is the errors in programming.
Security: For security purposes they use normal windows firewalls and anti viruses. It seems enough for the firm for the time being but they need to keep a thorough check on the anti-virus market to see if anything new and better comes up that they could use. First they were using the antivirus known as Kasper sky but now they are using Avira as they think it is more efficient than the previous antivirus. The officials are currently satisfied with the security system and the options it is providing for their networks.. Security Features of Aloha Security refers to two different things: 1 - The ability to limit access to information or program functions. This is used to make sure that staff cannot make unauthorized transactions or see confidential information. Each employee is assigned a password to determine their access level. Some of the Aloha password features are: o
Passwords determine the functions a person can use.
All sales transactions are logged with the date, time and name of the sales person.
Optional requirement for a manager's password before the system will void a sale.
A training mode, in which all POS functions can be used but no data is saved.
Password prompts that can be turned off.
2 - The ability to roll back (restore) your data to a previously saved version. This is used to undo the results of serious errors. For example, say you delete twenty invoices and then discover that they were the wrong twenty. Everyone who works with computers has days like that (bar none). An easy way out can avoid big headaches.
There is room for improvement and the flexibility provided by Aloha, for Gloria Jeans to start using financial solutions in their current business or when the firm decides to expand its operations.
Aloha also provide a solution for customer relationship management system which is essential for businesses like Gloria Jeans. Therefore it is recommended to use a CRM solution in order to enhance operations which might also assist to gain competitive advantage.
As Gloria Jeans is currently using an Intranet, it can easily flag an extranet out of their current network for effective supplier management and could use a supplier profile management system like the one being used by P&G.
It is highly recommended to use a licensed anti-virus system rather than a free software to protect the data specially when using the intranet as a network in operations.
Currently Gloria Jeans are not using any tool to identify the expiration dates of their supplies. As most of the supplies are perishable, they need to install some sort of solution to keep a check on expiry to ensure quality control.
Gloria Jeans is using the intranet which requires the internet for connectivity. The internet connections in Pakistan are really unreliable therefore it is essential to have a backup internet at all times in case one source collapses.
Aloha Technology has helped create custom software solutions for both large and medium scale manufacturing companies that cover the key manufacturing management aspects, including planning, execution & control and process industries. The solutions include the use of Internet and Wireless technologies that are all aimed towards creating end to end solutions. The tools that they provide for businesses are basic and simple which makes life easier for the operators and contributes to efficient and cost-effective operations.
Gloria Jeans ltd uses the franchise ordering system of this solution. According to the officials, the system is performing according to their expectations and they see a bright future for the firm going down the path laid down by Aloha in enterprise solutions industry.
References: www.gloriajeanscoffees.com.pk www.alohasoftware.net