Archway Cookies, a leading cookie producer, was founded in 1936. Archway's managers had difficulty obtaining cost information quickly because its business information systems were not integrated. Archway now employs a very sophisticated business information system that allows it to integrate its information packages and avoid manual recording of information. Archway's managers recognize the importance of timely and accurate information when making decisions. Higher-level executives need to have general information in a summary format and also need to be able to screen large amounts of data to identify exceptions to normal operations.
Archway's managers are now able to estimate the costs of specific operations. The managers anticipate that the new information system will generate great operating cost savings for the firm. Nevertheless, the managers understand that implementing the new system will present challenges; in particular, employees will have to learn how to use the integrated information system.
Questions
1. Why was Archway's management concerned about its old information system?
2. What kinds of problems was Archway having with coordinating information?
3. Why do Archway's higher-level managers need a global, summarized set of information rather than specific details about the company's production and stores?