LCBO model answer Hudyma PDF

Preview

Summary

class note for this assignment that is very important...

Description



LCBO Model Answer.

Author: Hudyma

1. Describe the business of the LCBO considering the following aspects of the business, of which you must choose three. (15 marks) The LCBO (Liquor Control Board of Ontario), is responsible for the sale of alcoholic beverages throughout the Province of Ontario. With the exception of Beer (sold through the Brewers Retail) and select Ontario wines the LCBO has an effective monopoly of the sale of alcoholic beverages in the Province. a) What are the products and /or services? The LCBO sells all types of: Beer, Wine, and Spirits in over 500 retail stores throughout the Province of Ontario and sells wholesale imported beer products to Brewers retail (ie: The Beer Store), and delivers retail products to restaurants, Banquet halls and catering establishments. Some of the services that they offer include locating stores, checking availability of stock, and ordering rare-wines and other premium products through their “Vintages” store-within-a-store. These services are provided through their Internet webpages and mobile applications. The LCBO is active in promoting social responsibility for the use of its products through education, awareness and advertising. b) Describe the supply chain The LCBO purchases its products directly from the manufacturers located both domestically and internationally. The wholesale products arrive in bulk to the LCBO’s warehouse and distribution centers. Both incoming and outgoing products are tracked by an SCM (Supply Chain Management) system. Products are sorted and packed for shipment to each individual retail store such that sufficient inventory is shipped to each store to replenish depleted stock before all units of a particular product is depleted. A similar system is used for its commercial customers (ie restaurants). Stores automatically track individual sales through the Point-of-Sale Terminals in the retail store. The raw data from each sale updates the 11 



store inventory and triggers stock replenishment when inventory levels fall below a set threshold. Once the products have been consumed, the empty bottles can be returned to the Beer store, for a deposit refund, where the empty bottles are recycled in an environmentally responsible way. c) What, if any, topics are there regarding privacy and security? The LCBO is required to conform to Canadian Privacy laws (both Federal and Provincial i.e: “The Privacy Act” and PIPEDA), and protects customer sensitive information such as credit and debit card information. The in-store security is high and they have extensive loss-prevention measures in place: including video cameras, security personnel and on some occasions uniformed police officer’s in the stores. Additional physical protection during closing hours are present including physical measures and security alarms. The supply chain management systems track products throughout the supply chain and any product discrepancies become known in near real-time.

d) Describe any ethical topics The “C” in LCBO stands for “Control”, and that responsibility is taken seriously. The LCBO checks the photo-identification of any individual who appears to be under the age of 25 to ensure that liquor is not sold to any individual who is under the legal drinking age. Also, any individual who appears to be intoxicated will not be able to purchase any products in the store and repeat offenders are banned permanently from the stores. Furthermore, the LCBO promotes responsible drinking and has beverage suggestions for those who choose not to consume alcohol.

12 



2. Describe how information and communications technology (ICT) has been used to improve the business of the LCBO. In your answer demonstrate how ICT tools and components have been used in this business. Choose three of the following technologies for your answer. (15 marks) a) e-Commerce, The POS (point of sale) terminals at customer checkout use bar-code readers to track sales and have a small payment terminal that accepts credit and debit cards for payment. Credit and debit card purchases are approved in real-time by the respective Banks through a computer network. Additionally the customers can be tracked with the “Air Miles” customer loyalty cards. Customers can make Internet purchases through the “Vintages” website and pay through their credit cards. The products are shipped to the store of choice so that the age of the purchaser can be verified in-person. a) Database, Several databases would be required to support the activities of the LCBO. The ones that come to mind would be the Vintages customer database (containing customer identity and orders), various inventory and tracking databases which would be associated with the SCM, a Human Resources database for payroll and time reporting, as well as a large financial database that would record and report sales in the individual stores and consolidate that information at the corporate level.

a) CRM, The POS system tracks individual customers (where they shop, what they buy, and how often) so that collectively the LCBO can forecast customer demands (using BI system and Analytics), and trends to better serve the customer’s needs at each of the stores. 13 



Similar methods and procedures also used for the Internet customers making purchases through the Vintages website. b) SCM, A computer based SCM is in place. Products are tracked at every point in the supply chain beginning from the time they are received at the warehouse to the time the product is paid for at the customer checkout. Accuracy is maintained by using bar-code scanners so that accurate counts are achieved. The SCM tracks and serves to maintain the flow of goods though the entire system so that proper stock levels are maintained in each store even through there are different seasonal demands for product. c) Internet and telecommunications technologies. These are widely used throughout the LCBO. Internally the LCBO has established an intranet (an internal company network using IP technologies) to dramatically reduce the amount of paper used in the organization. The LCBO and Vintages has an Internet site that provides up-to-date information on stores, products within the stores, special offerings and promotions. Products can be purchased through the Vintages website. Anyone with Internet connectivity can access these pages. Today, many of the features that are offered on the Internet site are offered on Smartphone devices using the cell-phone provider’s network. The LCBO has custom “apps” to make this information easily accessible. (Clarity and quality of writing for questions 1 and 2 above: 10 marks) 

14 ...