What is a POS System? A system has 5 main components, what are Who are the primary stakeholders in the project? What steps would you take to evaluate this as a system change requests? How would you undertake a preliminary investigation for this project?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 17E
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  1. What is a POS System? A system has 5 main components, what are
  2. Who are the primary stakeholders in the project?
  3. What steps would you take to evaluate this as a system change requests?
  4. How would you undertake a preliminary investigation for this project?
Part 2: Mario's Coffee Expands
Pauline very much enjoyed working in the shops. When she was a teenager, she had worked with her Grandfather
learning how to make the various coffee drinks. Most of the many cousins in the family had worked at Mario's at some
point - several still worked here part-time. Mario had instilled into all of them his goal to serve only a perfect coffee
(several had also picked up his love of telling good stories!). Most of her time had been spent working closely with new
baristas, ensuring product quality, and with learning the other aspects of the busy cafés. There were a few problems,
service was sometimes slow, and they would periodically run out of supplies, but business was still good.
After a few weeks, she was feeling more confident in her role, so Pauline started focusing on growing the business. Her
first business opportunity came when she had lunch with a high-school friend, Daisy Mathes. Daisy owned a catering
company. Pauline, remembering her grandfather had started out providing a coffee service at weddings, saw an
opportunity. After much discussion, they decided to work together. Daisy would offer a coffee service as part of an
event package and Pauline would sub-contract when the service was requested.
Another opportunity presented itself when her leasing agent found a perfect location for her to expand. The location
was close to a local college and was large enough that she could provide a lounge space for customers. Working with her
agent, she negotiated a long-term lease and started working on renovations and hiring staff. Pauline was elated that all
her strategies were coming together, but at the same time was overwhelmed with the amount of work that she was
doing. She needed help.
She decided to hire for some key positions:
1.
General Manager (Mona): responsible for overall daily
operations, and the coordination of facilities and equipment,
and their related suppliers. The GM will consistently travel
between the different locations, ensuring that things are
working well.
2. Café Managers (Daisy, Morton): responsible for the day-to-day
operation of each of the coffee shops, the Manager would work
on all front-line operations, ensuring proper staffing, training,
and product quality was maintained.
3. Coordinator (Isabella): the coordinator would manage catering
event bookings and ensuring supplies for catering events are
ready and shipped to and from events. They also manage event
payments, collecting supplier invoices, and ensuring that they
are distributed for authorization of payment, or sent to the
accountant for payment.
4. Accountant (Yoshi): The coordinator would also collect sales
receipts from each store, ensure invoices were collected,
prepare payments for bills, enter all transactions in a spreadsheet.
General
Manager
MARTO
Cafe
Managers
Baristas
Customer
Service Reps
Pauline
(CEO)
Coordinator Accountant
Catering Co.
Transcribed Image Text:Part 2: Mario's Coffee Expands Pauline very much enjoyed working in the shops. When she was a teenager, she had worked with her Grandfather learning how to make the various coffee drinks. Most of the many cousins in the family had worked at Mario's at some point - several still worked here part-time. Mario had instilled into all of them his goal to serve only a perfect coffee (several had also picked up his love of telling good stories!). Most of her time had been spent working closely with new baristas, ensuring product quality, and with learning the other aspects of the busy cafés. There were a few problems, service was sometimes slow, and they would periodically run out of supplies, but business was still good. After a few weeks, she was feeling more confident in her role, so Pauline started focusing on growing the business. Her first business opportunity came when she had lunch with a high-school friend, Daisy Mathes. Daisy owned a catering company. Pauline, remembering her grandfather had started out providing a coffee service at weddings, saw an opportunity. After much discussion, they decided to work together. Daisy would offer a coffee service as part of an event package and Pauline would sub-contract when the service was requested. Another opportunity presented itself when her leasing agent found a perfect location for her to expand. The location was close to a local college and was large enough that she could provide a lounge space for customers. Working with her agent, she negotiated a long-term lease and started working on renovations and hiring staff. Pauline was elated that all her strategies were coming together, but at the same time was overwhelmed with the amount of work that she was doing. She needed help. She decided to hire for some key positions: 1. General Manager (Mona): responsible for overall daily operations, and the coordination of facilities and equipment, and their related suppliers. The GM will consistently travel between the different locations, ensuring that things are working well. 2. Café Managers (Daisy, Morton): responsible for the day-to-day operation of each of the coffee shops, the Manager would work on all front-line operations, ensuring proper staffing, training, and product quality was maintained. 3. Coordinator (Isabella): the coordinator would manage catering event bookings and ensuring supplies for catering events are ready and shipped to and from events. They also manage event payments, collecting supplier invoices, and ensuring that they are distributed for authorization of payment, or sent to the accountant for payment. 4. Accountant (Yoshi): The coordinator would also collect sales receipts from each store, ensure invoices were collected, prepare payments for bills, enter all transactions in a spreadsheet. General Manager MARTO Cafe Managers Baristas Customer Service Reps Pauline (CEO) Coordinator Accountant Catering Co.
Part 3: Mario's Place is Growing
Mario's Place has been growing at a very fast pace over the last two years. Three
new stores have opened (all near local College campuses), one closed, a new office
has been set up (unintentionally), new catering services have been added, and
several new staff members have joined the senior management team, including
Rosalina as their Marketing Manager. Through many changes Pauline has never lost
sight of the goal to serve only the best coffee, but she has had some challenges.
Main
Street
UBC
Campus
Gastown/
Vcc
Langara
/HQ
Downtown
(original)
Robson/
Career
Colleges
Currently, each store has a cash register and a credit/debit card terminal. The
amount of each product purchased is entered into the cash register. The cashier is
responsible to ensure that taxable transaction is entered in properly, separate keys are provided to enter each item that
is taxable or non-taxable. If the transaction is a cash transaction, the cash transaction total is entered, and the cash
drawer will open. If the transaction is using credit or debit, the credit transaction button is pushed, and the transaction
is finalized. The cashier enters the amount of the transaction into the credit card terminal and the customer pays the
transaction. This is a confusing and error-prone process.
In a meeting with Yoshi, Pauline started seeing problems in their revenue collection. Yoshi told her that often he cannot
read the daily cash deposits, and the bank has been sending deposit correction notices on deposits. The bank is only
sending him summarized transaction reports for the credit and debit machines, so store managers have not been able to
balance store sales. He is feeling a sense of growing frustration because he's being asked to confirm information which
he truly can't accurately confirm. Pauline recognizes that the current system is not sufficient for the future. She has
asked Yoshi to start a project to purchase a Point of Sale (POS) system that will move Mario's Coffee into the future.
Yoshi knew that eventually any new system would have to integrate with an accounting system, his first priority was to
ensure that he was getting accurate transaction data from each location. He was hoping that the new terminals would
be accessible remotely, but felt it was more critical that the system provided complete and accurate daily transactions
and summary information. It was also his hope that he would be able to confirm that each location sales and incoming
cash and card transactions balanced each day.
Yoshi visited each of the café locations to meet with café managers, each expresses similar requests of the new system.
Inventory continued to be problem; they often weren't certain what products were selling. They insisted the system be
able to track individual products sold and whether the transaction is cash or bank card. It was also important that the
system identified which cashier was responsible for each transaction. They wanted to be able to quickly balance at the
end of the day.
The coordinator, Isabella, indicated it would be great if the system could manage the event transactions as well. They
are almost always by credit card, but periodically, are paid for by cheque. The transactions are complicated though as
there are generally 10-15 products and services that make up an event invoice.
Rosalina insisted the system be able to automatically apply discounts and promotional pricing to ensure consistent
product pricing and it would be nice for it to be able to allow cashiers to sign up customers into a customer loyalty
program.
Transcribed Image Text:Part 3: Mario's Place is Growing Mario's Place has been growing at a very fast pace over the last two years. Three new stores have opened (all near local College campuses), one closed, a new office has been set up (unintentionally), new catering services have been added, and several new staff members have joined the senior management team, including Rosalina as their Marketing Manager. Through many changes Pauline has never lost sight of the goal to serve only the best coffee, but she has had some challenges. Main Street UBC Campus Gastown/ Vcc Langara /HQ Downtown (original) Robson/ Career Colleges Currently, each store has a cash register and a credit/debit card terminal. The amount of each product purchased is entered into the cash register. The cashier is responsible to ensure that taxable transaction is entered in properly, separate keys are provided to enter each item that is taxable or non-taxable. If the transaction is a cash transaction, the cash transaction total is entered, and the cash drawer will open. If the transaction is using credit or debit, the credit transaction button is pushed, and the transaction is finalized. The cashier enters the amount of the transaction into the credit card terminal and the customer pays the transaction. This is a confusing and error-prone process. In a meeting with Yoshi, Pauline started seeing problems in their revenue collection. Yoshi told her that often he cannot read the daily cash deposits, and the bank has been sending deposit correction notices on deposits. The bank is only sending him summarized transaction reports for the credit and debit machines, so store managers have not been able to balance store sales. He is feeling a sense of growing frustration because he's being asked to confirm information which he truly can't accurately confirm. Pauline recognizes that the current system is not sufficient for the future. She has asked Yoshi to start a project to purchase a Point of Sale (POS) system that will move Mario's Coffee into the future. Yoshi knew that eventually any new system would have to integrate with an accounting system, his first priority was to ensure that he was getting accurate transaction data from each location. He was hoping that the new terminals would be accessible remotely, but felt it was more critical that the system provided complete and accurate daily transactions and summary information. It was also his hope that he would be able to confirm that each location sales and incoming cash and card transactions balanced each day. Yoshi visited each of the café locations to meet with café managers, each expresses similar requests of the new system. Inventory continued to be problem; they often weren't certain what products were selling. They insisted the system be able to track individual products sold and whether the transaction is cash or bank card. It was also important that the system identified which cashier was responsible for each transaction. They wanted to be able to quickly balance at the end of the day. The coordinator, Isabella, indicated it would be great if the system could manage the event transactions as well. They are almost always by credit card, but periodically, are paid for by cheque. The transactions are complicated though as there are generally 10-15 products and services that make up an event invoice. Rosalina insisted the system be able to automatically apply discounts and promotional pricing to ensure consistent product pricing and it would be nice for it to be able to allow cashiers to sign up customers into a customer loyalty program.
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