Course: ‘Management Information Systems’for Undergraduate 2004
Case for Discussion
CASE: Mr. Wang’s Pottery Company
Eight years ago, Mr. Wang started to run his pottery production and sales business. The company had one supplier of clay, located in the outskirts of Shanghai city. Mr. Wang has been selling his products through his own shop. He had made great successful business. After a period, customer demand had increased largely because many travelers were interested in Mr. Wang’s products very much. Even other shops ordered Mr. Wang’s product. Mr. Wang also started to do wholesale business. So Mr. Wang employed many people to produce and sell these pottery products.
One day, another clay supplier contacted Mr. Wang and said they can provider better clay and hoped Mr. Wang try to use them. Since then, many suppliers contacted Mr. Wang. The company has many of suppliers who provide with clay and transportation service.
At beginning, Mr. Wang recorded the information about products, customers and suppliers by his notebook. Afterward he employed an IT professional people to built a simple database system. This database, operated in PC system, kept the records on customers (Customer ID, Name, Address, etc), products (Product ID, Color, Process, Specification, etc). Mr. Wang himself still took charge to buy materials from suppliers and to do transaction about purchase by manual.
One year after the database was built, the company made a great progress in business and produced many creative products. The company also employed many excellent people who can solve company’s management and production planning.
Mr. Wang intends to extend his business further. He has contacted businessmen from Japan and America, who want to import the company’s products. Mr. Wang also wants to export pottery products to these businessmen.
Some materials about Mr. Wang’s company
Mission
To make and sell pots of clay and other ceramic productions to people, who are looking for something better than the ordinary. The product should have a distinctive character and be of high quality.
Competitive Strategy
The company should go for differentiation instead of cost leadership. It should find its market in the upper layers of society (the customers looking for something special) and sell only through retailers who are known for carrying the more exclusive goods.
Production
The products should be handmade by clever craftsmen and artists. They should be made out of high quality clay. They should have an ethnic design, based on Shanghai traditions.
Distribution
Professional transportation companies will bring the goods to the retailers. The company will not do the transportation itself.
Human Resource Policy
The company will employ people with an artistic or craft education/training. They should have good knowledge of Shanghai tradition. An employee will be given royalty payment on the special product he/she develops for the sale.
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