The growth of MahmoudCo has not been matched by growth in its software hence creating a disparity, which negatively affects the business operations. Before embarking into any purchase, different considerations have to be made in order to determine whether the company is operating optimally in the provision of goods and services.
Identification of the business need
Before management undertakes the purchase of a product, there is a need to conduct a review of all company needs in order to identify where weaknesses lie. The needs can either be presented by employees or identified by management while reviewing company goals and employee performances.
Sami, an accountant encounters problems and alerts the head accountant (Simsim T). Consequently, Mr Khalil who owns the company becomes aware of the problems.
Determining a budget
A budget is a critical tool that is constantly referred to as it is the blueprint to all company spending plans. In the case study above, Mr Khalil dislikes spending money and also underpays his staff as is evident with Sami. This portrays a business environment that has a rigid plan
Selecting the purchasing team
In this case, the marketing department has been given the responsibility by the company owner to come up with a viable option that will address all the problem areas as pointed out by Sami.
In doing so, they may as well consider other aspects arising from the software problems that may have not been pointed out by the complainant and have a possibility of occurring in the future.
The accounting software needed by MahmoudCo must first be able to read both Hirji and Gregorian calendars as this will make it easier to do accounts for the different branches in different countries. Secondly, the software should allow for different security levels to make sure that junior accountants do no have access work from their senior counterparts. Lastly, the software should be able to automatically convert currencies in its calculations making the accountants’ work easier.
Searching for options
In the specifications given, there are three choices that meet the criteria given. Different channels e.g. internet are used to come up with different options (Kotler, 2003, p. 47). The first option is OpenERP which is multi-business, multi-currency, has calendar options and can be customized by the user giving different security levels. It is also web based and can therefore be accessed in many places. The second is ApacheOFBiz which has many qualities similar to those of OpenERP, including currencies and security levels.
The difference is that this option does not have the option of different calendars but is however highly rated due to its track record and reliable use around the world. The third is PostBooks created by xTuple and which supports multi-currency and multi-language capabilities but without the option of a calendar too and is for small businesses. It is also can be customized by the client making it secure at different levels.
Evaluation of options
In this case, OpenERP is the best option because apart from having the basic qualities as outlined by the company, it has flexible workflows, can be used together with OpenOffice, has a dynamic Graphic User Interface and can be started with the basic components and others integrated as the company grows (Pinckaers & Gardiner, 2009, p.
490). It is also the best option because it can be purchased in bits. Therefore, the most basic components that are required by the company can first be purchased and additions later included.
Purchasing the product
Mr Khalil’s consent is paramount here, followed by contacting the vendor in order to acquire the software. As the software can be purchased in bits, the company will determine which components will be most basic and those that can later be added.
The mode of payment too is decided at this level.
Re-evaluation of the purchase
It is paramount to follow up on the purchase to determine whether it is serving the intended purpose by getting feedback from the employees who are using it (Finch, 2001, p. 18).
Finch, J. (2001). The essentials of marketing principles. New Jersey: Research & Education Association Kotler, P. (2003).
Marketing insights from A to Z: 80 concepts every manager needs to know. New Jersey: John Wiley & Sons, Inc Pinckaers, F. & Gardiner, G.
(2009). OpenERP for Retail and Industrial Management. (1st ed.). Open Object Press