Case Study Essay

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Impcorp Food Discussion Executive Summary: The key issue faced by Impcorp Foods is that the existing accounting system is time-consuming and error-prone. It blocks the firm achieving its “Profitable Growth” strategy. There are two ways to deal with the problem: improve current system or buy the new ERP system. Compared to the existing system, which could not meet the industry standards and takes a lot of time, the advantages of the new ERP system will be shown. First, it meets the suppliers’ and the industry requirements. Secondly, the financial benefits outweigh the costs in a long run. Finally, employees seem positive about the new ERP system. Therefore, I recommend use the proposed ERP software and will explain further in the…show more content…
With the help of the new ERP system, cost of storage inventory would be decreased by 10%, about $4570 based on the most recent year’s balance sheet. Cost of penalties from retailers will be reduced by 10%, about $1500. Also 10% saving in employee administration salaries may occur, about $67347 in the most recent year. The cost of the interest and bank charges cost would be reduced by 15% ($2386.5). The total cost may be saved in the first year is $75,804, which is less than the cost of the new ERP system. But starts from the second year, the firm only need to pay $2,000 more than the current system, and the benefits are similar to the first year. So the benefits outweigh the cost in the second year, and as the year goes, the benefit will increase more and more. Employee Practice Human resource issues of switching to the new ERP system is also a factor. Some employees are not confident that they have the knowledge and skills necessary for the proposed system. The reason maybe that they are not qualified for this job. The systematic work can be easily replaced by automation and machines. Without the ability of analysis the data and information needed by the managers, the employee is not the one that the company need. Although higher salaries maybe paid to hire employees who have strong capabilities, s/he will donate much more to help the firm achieve its goal. Technical Analysis: By using the new ERP system, the

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