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Exercises Marketing Information Systems and the Sales Order Process
1. Assume you are Fitter Snacker’s new marketing manager, hired to clean up some of the
company’s problems, as outlined in the beginning of this chapter. You just started this job,
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and you are getting to know your sales team and the company’s processes. Describe all
the problems you observe about the way Fitter’s sales force currently takes and fills an
order. Now convince upper management of the need to improve the existing system and
put an ERP system in place.
2. If Fitter installs an ERP system, how could they reorganize their sales division to be more
efficient? Be specific about how you would rearrange divisions, or consolidate them.
3. Fitter’s current sales order accounting processes involves recording sales in each division
and then periodically sending certain sales data to Accounting for invoicing and financial
reporting. Complete sales order data are retained in each sales division for business
analysis purposes.
Assume that different divisions of the Yummy Foods Company buy NRG-A and NRG-B
bars from each of Fitter’s sales divisions. To complicate matters, some divisions of Yummy
buy store-brand bars from Fitter. (Yummy owns convenience store outlets.) Fitter
management has asked for an analysis of the Yummy Foods account. They want to
determine if there are opportunities to expand the company’s relationship with Yummy;
however, they want to assess the profitability of the relationship before proceeding. The
management team wants to see what products each division sells to Yummy, how much is
sold, and on what terms. Assume that in Fitter’s current system, all the required data are
available only at the sales division level. What steps will be needed to pull this company-
wide analysis together? (Review how each division sells its products.) Do you think a sales
division manager will be enthusiastic about sharing all data with his or her counterpart in
the other division? Do you think there might be some reluctance? Why?
4. Continuing the Yummy Foods example, now assume that Fitter has an SAP ERP system
installed. Each sales division records sales in the same way. Sales records exist in real
time and are kept in the company’s common database. What steps will be needed to pull
this company-wide analysis together? Do you expect that the divisions will meet the new
system with enthusiasm or reluctance?
5. Assume you are a new summer intern at Fitter Snacker, working directly under the CIO.
Your first job is to write a memo describing the poor information flow between three
functional areas in the company: Marketing and Sales, Accounting and Finance, and
Supply Chain Management. Focus on the lack of information flow to and from Marketing
and Sales, in particular.
6. How does an ERP system like SAP simplify looking up customer numbers, setting a
delivery date, and charging a unique price to a given customer? Include a discussion of
master data.
7. What is document flow? Why is it important for auditors of a company?
8. A CIO of a major pharmaceutical company once stated that the reason the corporation
used ERP systems could be summed up in one word: control. How does an ERP system
give management control?
9. How can a business better serve its customers using the APO tool in SAP ERP?

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