Case

There is a slew of bakery businesses set up across Singapore. While some bakery businesses have physical stalls, others only have a digital storefront. Still others have a mix of physical stalls and digital storefronts. The government has also permitted home bakeries and has made setting up home bakeries straightforward. Moreover, obtaining the ingredients required to make pastries, cakes, muffins, and other bakery products is easy.

A couple (John and Mary) also joined the bakery business bandwagon. Their bakery business— DelicieuxBakery—is an online baking business established during COVID-19. The couple acquired their baking skills by watching YouTube videos. Moreover, various places (e.g., community centres) offer baking lessons, and John has attended some. John and Mary took turns delivering the orders to their customers. The business of DelicieuxBakery was quite good during the pandemic period.

However, DelicieuxBakery’s business has been relatively poor post-pandemic. This is not surprising, given that individuals can move around freely. Moreover, many bubble tea shops are set up across the island, and Singapore residents love bubble tea.

The couple came up with a new direction for their business by allowing customers to customise the bakery ingredients used in the bakes through their website. Given that the Singapore government encourages a healthy lifestyle, the couple believed the new business concept would work. For example, customers can reduce the sugar in the pastries or add blueberries and other fruits to their pastries. In addition, they allow customers to add special ingredients, such as rare wine imported from France. The prices of these pastries and other customised bakery products are significantly higher than pastries and bakery products of other bakeries. They tested the
new business concept with a small set of customers.

The business concept was well-received by customers. The couple was considering expanding their business. However, it is difficult to recruit workers in F&B, including bakeries, due to the working conditions. In addition, bakery business expansion requires expensive equipment such as ovens and refrigerators and significant capital. Some of this capital goes into the salary
payment of workers, the high rental costs, and online services employed by bakeries. However, the couple decided to go ahead with their expansion plans. The couple further rented a physical stall for their bakery business.

DelicieuxBakery managed to attain significant success eventually. Three years have passed. Confident in their business concept, the couple expands their bakery business to Southeast Asia. DelicieuxBakery has set up several bakery shops in various Southeast Asian countries. The workers at each shop report to the shop supervisor and the supervisor managing the operations in that country. Further, it is possible that workers of a shop report to other
supervisors of another shop due to the unique skills that these workers have. DelicieuxBakery’s customers in these countries can also order online. The couple plans to employ more technologies to increase their digital business footprint and to attract and retain customers.

Question 1
(a) Formulate the IT triangle of the business by determining whether the IS strategy is aligned with the business strategy of DelicieuxBakery. Explain your answers with case facts.

(b) Appraise the application of business, organizational and information system strategies by using Michael Porter’s Five Competitive Forces framework to analyze the competition of the industry associated with DelicieuxBakery in Singapore. Indicate in your answer if the
competitive force is low, medium, or high. Support your answers with case facts.

(c) Analyse business environments, strategies, and the use of IS associated with DelicieuxBakery by:

(i) Identifying the formal reporting structure in its overseas expansion. Explain your answers with case facts.

(ii) Providing an example of data that DelicieuxBakery can capture and explain how it can be useful to DelicieuxBakery.
(iii) Discussing one (1) way in which national culture will impact IT (Given that IT
systems will change as DelicieuxBakery expands to Southeast Asia).