Management Information Systems

Free Analysis Essay Sample on Management Information Systems


Companies undergo various changes and development stages that require them to be more aggressive and stick to their principles about governance. Small companies take the examples of larger corporations in order for them to develop and become giants in the world of business. However, before succeeding and getting the worth of the organization in the market and acquiring the required market share, these companies face a lot of challenges. There are both internal and external challenges that affect the growth of an organization and which the management needs to address very fast before the situations become worse. After proper setting and arrangement on the span of activities, the company flows well and achieves growth year after year, and this case makes it achieve its goals.

Each company with a mission and vision to grow needs to have well designed and arranged Management Information Services that enable it to achieve its goals. These services and features require proper communication between them so that in the implementation of the set goals and objectives, the enterprise will not experience hiccups, and everything will flow smoothly (Chang, 2006). The MIS formulated and designed by the company management make sure that they fit in the organization schedule, and their effect makes the company progress smoothly. Any mistake within an organization and its MIS communication ruin everything about the progress and achievements of this company (Wright & Wright, 2002). This paper assesses the Management Information Systems of a company and the way they communicate in order to help the company achieve its objectives. The paper also focuses on the internal and external forces that affect the company making it hard for it to conduct its mandates. The paper focuses on Fuhu Company in Miami that deals with children and adult cosmetics products that it intends to sell all over the world.

Company Background

Fuhu Company started its operations in 2008, when it started as a tiny company producing consumable goods. These consumables included the cosmetic products for adults as it was not able to diversify among various demographics. The company management comprised of only the CEO and a manager who oversaw the whole enterprise activities and managed all the employees to work maximally towards the achievements of the objectives of the firm. Since the management was tiny, the enterprise did not require much of the Management Information Systems, and the manager and the Managing Director had a smooth time taking the company to the next level.

At inception, the organization had only twenty employees who worked a lot. However, by the 2010, the enterprise broadened its activities where it started producing the kids cosmetics and other consumables. This measure and improvements called for the company to hire more workers and expand the span of control and management. Such posts as the resource manager, finance manager, supervisors and many more were created to enable the CEO to have ample information from specific people about the progress of the company. In this particular year, the company had more than one hundred employees working in various departments. Therefore, the company divided its management into senior managers, middle managers and the knowledge or data managers. These groups needed effected communication to enable the company make better decisions and proper implementation of these decisions. Currently, the company serves in more than ten states in the United States and has a total of 227 employees. This growth is profitable, and the company is on the right track to achieve more than it had planned to at the inception or in the strategic plans. Its intention is to be the leading company in cosmetics production and distribution in the whole. With the current progress, the company will for sure achieve this goal.

Diagram Showing the Information System in Fuhu Company Limited

Diagram Showing the Information System in Fuhu Company Limited

Kind of major system Information systems serving
Strategic level There are systems called decision support and Executive Support Systems that enhance the mandates of the personnel working at this level (Laudon & Laudon, 2004). These systems attach and provide the information to the strategic management of the external environment requirements.
Management level At the management level, the managers are concerned with the internal affairs of the organization. They collect information from the lower levels that help the strategic management in making and implementing decisions. Decision, transaction and expert information systems help this level to communicate with other levels and get faster and more accurate feedbacks. Departments like the human resources, accounting, sales and others belong to this level, and their information affects both the lower levels and the strategic level (Chang, 2006). Proper accurate communication is the most effective and that will give the company better progress.
Knowledge level This level is concerned with resourcing information regarding the company’s various activities and feeding it to the management and strategic management. Decision support and the expert support systems are the key systems used to deliver and communicate from this level to the other levels (Wright & Wright, 2002). Decisions made at the operational level pass through knowledge level and vice versa. Fuhu’s systems are updated from time to time in order to make sure that they operate well and effectively.
Operational level managers These managers relate to the subordinate staff and the ones who implement the decisions made by the top managements. Transaction processing systems and the decision support systems helps in effective communication with other levels. The sales that Fuhu makes daily reflect in the transaction systems where the top management can see them. The same case applies to the decision support system that the subordinates make to reach the top management, and implementation takes effect immediately.

Internal and External Forces Affecting Fuhu Company Limited

There are a lot of issues that affect Fuhu Company and its undertakings. These forces arise from inside the company while there are others that arise from outside the organization. The issues that the company can control are the internal forces that include the products, customers, suppliers’ employees and much more. The inside forces and the ones that are very difficult to control include the governments rules and regulations, competition and much more.

Internal Forces

Products. There are many different products with the high quality offered in the market. This fact calls for the company to put more effort and produce goods with higher quality than the ones in the market. This scenario affects the firm in that it dedicates a lot of capital and investors’ money to meet these objectives ( Hornsby et al., 2002). Sometimes the systems do not work effectively because of the fluctuations in the spending sphere.

Customers. Sometimes, customers do not understand the procedure of the company and mistake it for some defectives. They accuse the company management of delay in the production while they do not know that it is the decision process that causes the delay. Therefore, sometimes the company loses clients but upon the implementation of new strategies, it gets new clients.

Employees. Some employees do not dedicate their time and resources to the company fully. These cases cause the company to under-produce and not meet the clients’ demands. Some of the new employees do not understand how to use the systems and this slows down making the appropriate, effective and efficient decisions. This slow decision-making makes the company lose some key markets and some serious stakeholders (Hornsby et al., 2002). However, as training goes by, these employees get the concept of the organization and assist in making proper decisions.

External Forces

Government's rules and regulations. As Fuhu operates in major cities and states in the United States, it faces some tough rules and regulations from the governments of these states. However, the company cannot control these features and has to comply with them (David, 2007). The rules that favor the company help it achieve more while the ones that do not favor it make its economic scale worse.

Competition. Fuhu faces a lot of competition from other companies who produce cosmetic products in abundance and which are of high quality. Producing these types of cosmetics requires a lot of capital which sometimes Fuhu cannot afford. Trying to compete with these types of organizations makes the company neglect its strategic plan, which is very dangerous.

Technology growth. Technology defines the types of systems the company adopts and puts into usage. Technology experiences massive growth daily and big corporations put more efficient and effective types of systems to operate with them (David, 2007). Fuhu fails to go with this pace and sometimes it finds itself in a position not to give the best in the market.


The Management Information System level of the company defines its success in today’s highly competitive markets. Fuhu Company does not have any other option rather than employing highly qualified technicians and specialists to upgrade their systems. In order to have a smooth running organization that matches with the level of growth of the company, Fuhu must implement training for all employees on how to use and apply the systems. With time, these employees will attain the gist on how to use them and perfect their capabilities. The management of Fuhu should focus on a continuous growth of the organization by not duplicating what other companies do (Laudon & Laudon, 2004). Rather, the company should perfect its products and services and furthermore, its Information systems.

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