Sources of Information

Information A company needs information to make any decisions, whether these are long term or day to day. If a company decides to increase a product price they would need information about product sales, competitors prices, customer response and country economics. The quality of information used is very important as is the timeliness of the information. It needs to be on-time, up-to- date and accurate.

Forms of Information Information can be: Verbal i.e. telephone, meetings, video conferencing. Verbal is usually either face to face contact or telephone, verbal information is usually documented at a later stage. Documentary i.e. order form, letters, memos, minutes of meetings, reports, documentary is usually a physical piece of paper, more formal than verbal and can form a legally binding contract. Electronic i.e. , LAN, WAN, WAP, reports stored on computer systems.

Characteristics of Information Action - receipt action is immediately required, e.g. order request i.e. it triggers an information flow. Non Action - information from books/confirming information from previous action, e.g. order confirmation. Recurring - at least once a year, e.g. end of year report. one-off information for studies. Non Recurring – one off.

Internal - concerning events within the organisation, e.g. promotions. External - policies, plan of government, status of orders on suppliers, e.g. rise in interest rates. Historical - data on events that have occurred, e.g. sales analysis. Future Projection - prediction of future events based on projections made from historical information, e.g. sales forecast. Characteristics of Information cont.

From the information given the following general statements are made:­ action, recurring, documentary, internal, historic information usually is automated and forms the ‘database’. timing and accuracy of action information is important. non-action information is usually eliminated. non-documentary i.e. verbal information is impossible to control. non-recurring information is not subjected to automation. the higher the management decisions, the more important the external and future projection information becomes.

Internal Requirements of an Organisation Marketing information needs Market trends Competitor information Analysing marketing campaigns Special offers New products Sales information needs Customer information ie name, address, credit limit Order details

Internal Requirements Finance information needs Sales and purchase information Payroll Payments in and out Receipts or invoice production Research & design information needs Product design Marketing predictions Available products Design specification

Internal Requirements Purchasing information needs Purchase orders Check delivery notes and goods

Strategic Planning Planning for the future, usually by senior management, need information on: Past performance Current and future market Competitors – current and future Product design plans

Operational Control Day to day running of the company, relates to the way in which the organisation works, need information on: Manufacturing amount of raw materials stock amount of finished product stock customer orders employee details (sickness, holidays etc) machinery details manufacturing information from previous days/weeks etc

External Influences Other than the functions internally within an organisation, there are several external influences the organisation may need to exchange information with: 1. Competitors – their products, prices, marketing etc 2. Customers – their preferences, their financial circumstances, the market 3. Government – any legislation, grants, inland revenue, customs and excise etc 4. Environment – population shifts, economic and social factors. 5. Trading partners, shareholders, lenders, accountants, insurance.

External Organisations Who? Why? How?

Communications Equally important is the relationship and communications between external organisations and individuals. Internally between departments

Main External Organisations. Customers Suppliers Bank Government

Customers Required to purchase products or services No customers, non existence of organisation

Suppliers Needed for purchase of raw materials, components, equipment, goods etc Providers of external services such as accountants, employment services and lawyers.

Banks Provide the banking services for the organisation. Provides collateral for future expansion programs

Government Taxes set, required by law to pay Value Added Tax Various regulations and laws created by the government, requires compliance by the organisation for the benefit of the employee.