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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name John-Carlo Favier
NetID jfav252
Group Number: 501
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Claris Monday 1pm
Time Spent on
Assignment:
12 hours Word Count: 1645

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FOODFORTHOUGHT.COM
INTRODUCTION
Foodforthought.com is an online collaborative training service that is designed to increase
staff product knowledge and to increase customer awareness for craft beer. This is achieved
through the use of bitesized training modules. With the increase in popularity of craft beer,
and the ever-growing number of local Craft Breweries around the country (Mathers, 2013),
our service is aimed to help aid their growth in this competitive sector of the market.
However, understanding the world of craft beer is a science in itself, and ensuring that
individuals who sell and consume the products have understanding of the meaning of craft
beer is important.
3. BUSINESS SECTION
3.1 Vision
To educate and to entice consumers interest in the world of craft beer.
3.2 Industry Analysis: Hospitality Training Industry
Industry: Hospitality Training Industry. Foodforthought.com is in the Hospitality Training
Industry as it aims to increase hospitality staff knowledge and productivity in order to
achieve greater awareness for craft beer.
Force: High/Low: Justification:
Buyer power: High Buyer power is high as there are plenty of
choices in their own development in the
hospitality industry. (careers.govt.nz, 2012)
Supplier power: Low Supplier power is low as there are plenty of
hospitallity training providers around the
country. The qualifications they provide are also

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very similar to one another. (careers.govt.nz,
2012)
Threat of new entrants: Low Low as there are plenty of established training
institutes in NZ. Gaining a reputable status will
be difficult to obtain. (careers.govt.nz, 2012)
Threat of substitutes: High Threat of substitute is high, as there are plenty
of alternatives to training in the hospitality
industry. These range from certificates to
courses, alternatively on-job training is popular
(careers.govt.nz, 2012).
Rivalry among existing
competitors:
High Rivalry among existing competitors is high, as
there are plenty of training providers currently
in the market. Providing different levels of
training and competitive pricing are they main
ways they try to gain competitive advantage
over one another. (careers.govt.nz, 2012)
Overall attractiveness of the industry: Overall a not so attractive industry due to the high
levels of competition.
3.3 Customers and Thei r Needs
Our target customer for our service are New Zealand (NZ) Craft Breweries (CB). Companies
within the beverage and beer industry are strongly reliant on sales volume, mainly due to
high elasticity of their products. As for the NZ beer industry itself, only 2 % total industry
sales volume are made up by CB, with 90% of sales are made up between the duopoly of
Lions and DB (Adams, 2013). The high sales volume of these two companies in particular are
the result of strong brand recognition and awarness of their products, which many new CB
often lack.

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As the numbers of CB are continuing to increase every year, competition within this small
section of the industry is often very high (The New Zealand Herald, 2012). Attaining
awarness and brand recognition for their products is often very difficult due to not being
able to achieve economies of scale. This will therefore inhibit their growth, as they lack the
necessary funding to help aid any forms of marketing effort.
3.4 The Service
Our service therefore aims to help local CB in their marketing efforts, through the creation
of bitesized training modules (TM) to indirectly affect sales. They are designed to be cost-
effective to the brewers and to retailers (in particular, bars and restaurants). As CB often
distribute to retailers, high quality service from knowledgable staff at the point of sale is
often vital to completing the customers purchase.
The TM are created with the information received from the CB. It is then analysed by our
team and only the important information that will help increase staff knowledge and
engagement with the customer is included. Through the increase in engagement with the
customer, product awareness and brand recognition is achieved at the personal level. This is
vital for word-of-mouth marketing.
These modules are then made available online for free, where the end user (the staff
members from participating retailers) can use them to help increase their understanding of
the products. It will also give them further confidence to up-sell and cross-sell with other
products, resulting in better sales not only for the retailers, but the CB as well. The modules
are designed to take a minimal amount of time to get the same amount of information from
already existing product training manuals.
3.5 Suppliers and Partners
Our primary supplier are the CB themselves. CB provide the necessary data that is required
to create the TM. At the same time, we are working with the CB to ensure that there is
greater awarness for craft beer throughout the country. By working closely with them, and
ensuring that people understand the value of craft beer, this will help us to achieve our
vision.

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Retailers, ranging from stores to bars and restaurants are also another key partner. By
offering the modules to them for free, we are helping to lack of training of their staff due to
the low profit margins experienced by the hospitality industry (Restaurant Association of
New Zealand, 2013). Our other supplier are Website Hosting Service providers. As a web-
based service it is important that our website is properly maintained and operated.
3.6 Strategy: Focused Low Cost
Our service is aimed at independent CB, as opposed to CB that are subsidiaries of large
companies like DB and Lions. This service therefore, targets a narrow proportion of the
industry in terms of sales volume.
Our service is also designed to be low cost solution to marketing for our target customer.
Our aim by making it a low cost solution, is to get more independent CB using our service
which will increase the amount of training in our databases. In doing so it will help us to
achieve our vision of educating customers about craft beer through staff product
knowledge.
The overall strategy is therefore Focused Low Cost.
3.7 Value Chain Activity: Human Resource Management
The most important value chain activity for this business is Human Resource Management.
As a service based business, having the right people is vital in providing our service to CB.
Hiring the right people is the first step in creating our TM and ensuring they have the
necessary experience is key. Due to the ever-changing environment of both the beer and
hospitality industry, it is also important that our staff gain the necessary training, to ensure
future modules are up-to-date.
3.8 Business Processes
3.8.1. CLIENT AND DATA ACQUI SI TI ON PROCESS This process is vital to our service, as we
create TM from the data supplied by our clients. Retaining and maintaining our relationship
with our clients is equally important as with acquiring clients to increase our database of
TM.

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3.8.2. TRAINING MODULE CREATION AND UPDATING PROCESS This process is the heart of
our business. With the use of our highly experienced and skilled team, we carefull create
and update our TM to meet the expectations of our clients. Receiving feedback from our
clients before we upload them to the website is important to ensure we met not only our
standard but also theirs.

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3.9 Functionalities
3.9.1. CLIENT AND DATA ACQUI SI TI ON PROCESS
Search for new clients and products.
Acquistion/Retrieval of data from clients.
3.9.2. TRAINING MODULE CREATION AND UPDATING PROCESS
Creation/Updating of TM.
Uploading new modules or changes to modules to website.
3.10 Systems

3.10. 1. CONTENT MANAGEMENT SYSTEM The use of content management systems enables
our company to share, create, store and edit our data and TM with our partners. This is
effective as it is all done in real time, and our partners are able to get updates as soon as
possible.
3.10. 2. CUSTOMER RELATIONSHI P MANAGEMENT SYSTEM As we are working with a narrow
sector of the beer industry, it is important to retain and maintain a strong relationship with
the CB. Keeping track of our relationship with retailers is also important to ensure optimal
use of our TM.
3.10. 3. HUMAN RESOURCES MANAGEMENT SYSTEM The creation of our TM strongly relies
on the tacit knowledge of our team. Ensuring that future applicants and current employees
have met the required standards and have completed the necessary training is important in
creating and updating high quality TM.

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3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Bavarian
bergkase
fromage
queso
1. Client and
data
acquisition
process
1. Search for new clients and products.

2. Acquisition/Retrieval of data from clients.
Market Analysis System

Content Management
System
Customer Relationship
Management

Collaboration Systems
2. Training
module
creation/upd
ating process.
1. Creating/Updating of TM.

2. Uploading new modules or changes to
modules to the website.
Human Resource
Management System

Content Management
System
Enterprise Resource
Planning

Collabortation Systems

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CONCLUSION
Foodforthought.com is an online collaborative effort that creates TM to educate and entice
consumers awareness for craft beer. By working closely with CB, we carefully design TM to
help increase retail staff product knowledge, at minimal cost to the CB. As an online service,
TM are readily available as soon as they are completed. In doing so, the TM are available to
retailers as soon as possible. Not only to help them increase their sales, but also the
products of our CB.
REFERENCES
Adams, C. (2013, August 16). Boutique beer hard market to crack. Retrieved from The New
Zealand Herald:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10912970
careers.govt.nz. (2012, November 21). Hospitality Industry. Retrieved from careers.govt.nz:
http://www.careers.govt.nz/jobs/hospitality/
Mathers, J. (2013, March 17). Are we drinking less beer? Retrieved from The New Zealand
Herald:
http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=10871672
Restaurant Association of New Zealand. (2013). Outlook for Hospitality Industry Improves.
Retrieved from Outlook for Hospitality Industry Improves:
https://www.restaurantnz.co.nz/Story?Action=View&Story_id=1614
The New Zealand Herald. (2012, August 2). Craft beers spur breweries boom. Retrieved from
The New Zealand Herald:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10824086