I. Background
Weight Watchers intends to be the main weight reduction specialist organization by helping people to get thinner and support a sound way of life. Their items and administrations are focusing on people, in a global scale, that have an objective of enhancing their life through solid living.

II. Statement of the Problem
Weight Watchers is confronting the issue of expanded rivalry and cost worries with an extensive larger part of the populace affected in some mold by the monetary downturn. Likewise they need to defeat the disgrace of being seen as the earlier age’s response to weight reduction.
The organization is battling with the need to reposition the organization to make a forward-centered eating regimen program for the following century while remaining consistent with their main goal. There is an expanded measure of rivalry and a monetary downturn that affects the normal shopper’s capacity to buy trivial projects and items. These issues have constrained the Weight Watchers Company to re-examine their program to position themselves for an effective future.

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III. Analysis
The technique of Weight Watchers is to reposition and rehash themselves for item advancement in the US and abroad. Utilizing SWOT Analysis, the accompanying points of interest were thought about:
? For Marketing
o Strong Brand — viewed as credible and effective
o Consumer Reports — best staying power and proof of long-term success through clinical trials
? For Finance
o Company’s low variable expenses
o Low Capital expenditure requirements
? For Operations
o Lean organizational structure
o Flexible business model
? For Human Resources
o Part-time staff paid on commission
o Using staff that have lost weight through the Weight Watchers program
? For Information
o WeightWatchers.com – leading internet-based weight management program
o Weight Watchers E-Tools supported its mission to help support people to lose weight
? For Research ; Development
o Awareness of their rivals
o Opportunities for new markets (e.g. men, new countries, etc.)
? For Marketing
o Misperceptions about what Weight Watchers was
o Differentiate themselves from fad diets
? For Finance
o Economic downturn — less $ to be spent on non-essentials
o Inflexibility in program
? For Operations
o Being able to address members that did not speak English
o Need to evolve operations to meet new and changing customer needs
? For Human Resources
o Difficult to recruit instructors if the requirements to become instructors are so rigid
o Leadership that could evolve with an ever-changing environment
? For Information
o Lack of consumer knowledge about web-based services
o Evolve online tools and resources to better serve consumers that are unable or uninterested in attending meetings
? For Research ; Development
o Need to better understand potential consumers — men, Spanish speaking consumers, young adults, etc.
o Develop tools and programs to keep fresh programs that will attract a variety of consumers
? Men
? Spanish-speaking Consumers
? Young Adults
? Competitors like Jenny Craig
? Fad Diets
? Pharmaceutical options

IV. Decisions – Formulation
The best option for Weight Watchers is to cooperate with an extensive national wellness focus tie to position them as a full answer for meet the objective of weight reduction achievement. By banding together with a national wellness focus chain, Weight Watchers will be effective in expanding income, expanding piece of the overall industry, and holding current purchasers. This association tends to their shortcomings as separating themselves from craze consumes less calories (critical blend of activity and practicing good eating habits). This permits Weight Watchers to advance their activities to meet another and changing shopper need and offer an invigorated programming that will bring about expanded individuals and income.
This option plays into their methodology of their image and adequacy. With the correct organization they can keep up their low factor costs and low capital necessities. The program keeps on giving an adaptable activity and separates them promote from their adversaries and opens them to new open doors in the market.

V. Actions – Implementation
It is recommended that Weight Watchers should collaborate with a contender to recognize how they can cooperate to expand incomes to additionally separate themselves as a weight reduction arrangement. On the off chance that Weight Watchers were to collaborate with a gathering like Jenny Craig, they could recognize a supper supplanting program that furnished purchasers with a careless answer for achieve their weight reduction objectives.
Weight Watchers ought to likewise join forces with a national wellness focus bind to demonstrate the significance in organization between both wellness and dietary patterns to accomplish weight reduction. Offer the open door for individuals to pay one charge that permits them the participation advantages of both Weight Watchers and the wellness focus.
Likewise, Weight Watchers should collaborate with a portion of the biggest medical coverage intends to build up a particular program through Weight Watchers to be offered to individuals. Weight Watchers has the chance to expand incomes that might be paid by the medical coverage organizations consequently the individuals weight reduction ought to give a ROI to the medical coverage organization through diminished health care coverage costs.

1.1 Background of the Study
Information Technology (IT) is where an organization uses technology to acquire, store, process and organize data (Rajaraman, 2004)…….Best Information Technology As graham et.al,(2013) states, IT involves software, hardware, Firmware and middleware as well as network infrastructures, platforms, operating systems and the worldwide web.New technologies, global competition, and increased customer demands are forcing organizations to reconsider how they can take advantage of Information Technology (IT) capabilities to better manage their supply chains.
Supply chain is a network that consists of suppliers, manufacturers, warehouses, distributors and retailers who coordinate their plans and activates in order to convert raw material to finished goods (Chandra and Grabis, 2007) ….Impact of it on dvt of SC where as Supply chain management (SCM) links a firm with its customers, suppliers and other members of the supply chain system, including transportation, freight forwarding and warehousing service providing companies. The management of the supply chain is basically management of the relationships and activities among the members of organizations (system) in the supply chain.
In today’s world, the business environment is fast and complex and there must be an efficient and effective supply chain. Firms keep on procuring materials for manufacturing and some to deliver to customers at the right place and the right cost. In order to improve their operations, companies must find ways of improving their flexibility and responsiveness. This will be done by changing the strategy on operations, methods and technologies that include implementing the supply chain paradigm and IT.
According to Boone and Ganeshan (2007)…Best, use of internet and related technologies has enabled companies to do business with other firms outside their scope as efficiently and effectively as they conduct business within themselves. Companies use Information technology in various ways. IT is usually one of the best ways to cut costs and also improve the performance of the firm. Most large firms use Information Technology to synchronize processes along their supply chain. These processes include upstream procurement internal production, downstream sales, customer service as well as information sharing along the supply chain.
According to Chopra ; Meindl (2001) ….Best Intel company Implemented an online ordering application that saw hundreds of clerks being laid off their jobs. With E-business technologies, companies are able to conduct business transaction online. This includes transfer of document like orders, invoices, and payments. Enterprises Resource systems such as CRM and Inventory management systems are being used by companies to integrate activities in the supply chain. Da Silveria and Cagliano (2006) ….Best mention that the invention of internet business and business applications has created new innovation opportunites for supply chain management. Organizations in the supply chain use Information Technology for their supply chain activities.

1.2 Statement of the Problem
Organizations are reexamining how to conduct business due to new technologies and the increasing intensity of competition (Graham et.al, 2013)….Best Thus, companies are reinventing their supply chains in order to succeed and meet the new customer driven challenges. This is in order to gain and keep competitive advantage by attracting more customers and defending against the competitive forces.
Reducing inventory cost is a major advantage and companies are seeking ways to please customer demand for fast and efficient service and also searching ways for managing the entire supply chain from raw materials to delivery of finished products to the customers.
Information Technology has a very big impact on the supply chain. It has significant influence in cutting costs. Small and medium firms in Ethiopia that have manual systems in their supply chain activities incur a lot of costs. The main problem of a manual system is the time spent in searching records, data redundancy, and no updated records. This hinders the performance of the firms in their supply chain activities. IT will help in reducing these problems and they will be able to focus on getting new markets for their products, sourcing new suppliers, responding faster to customer demands and gain competitive edge in the market.
For companies to achieve a competitive edge, they must maximize the use of Information Technology. This will enable organizations to come up with ways of reducing inventory cost, improving the lead time for products and integrate supply chain with the various functions of an organization (Austin ; Nolan, 1999). .Best Managers need to be up to date on information such as inventory, customer demand and supply lead time.

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Despite the role of IT in supply chain management as a competitive tool, the supply chain operational excellence in the brewery in Ethiopia is under researched and there is knowledge gap how well IT can be used in supply chain management practice in Ethiopia. As a result, there was little insight about the role of IT in Supply Chain Management in the brewery companies Ethiopia. This knowledge gap in the subject of this thesis in this competitive industry make a reasonable sense for conducting this research study.

Consequently, this thesis will focus on investigating the role of IT in supply chain management practice in the case brewery companies (Brewery Company X and Brewery Company Y) located in Addis Ababa.
1.3 Research Questions
The study is going to be guided by the following research questions:
? What is the relation between Information Technology and Supply Chain Management in beer industry?
? How are beer manufacturing firms use Information Technology in their Supply Chain?
? What roles do IT play in affecting the knowledge performance of firms in Supply Chain?
? What are the benefits of IT on management of supply chain?
? What are the effects of IT system on supply chain management?
1.4 Research Objective
1.4.1 General objective
The overall aim of the study will be to investigate and measure The Role of Information Technology in supply chain management/process of brewery production; the case of 2 beer factories in Addis Ababa and identify gaps based on the literatures reviewed to get better insight about the role of IT in supply chain operations in the case brewery companies.

1.4.2 Specific Objectives
Specifically the study tries to address the following key research objectives:
? To determine the benefits of IT in the case Organization.
? To identify the various IT applications used in the organization ; how they have been deployed in the company for it to maintain its competitive position.
? To determine how IT role has contributed to efficiency and effectiveness of a supply chain.

1.5 Significance of the Study
This study will benefit the professionals in the supply chain. This is because they will be able to appreciate the value that Information Technology has on the Supply Chain and how they can improve their services in the supply chain in order to attain a competitive edge. Small and medium firms that practice supply chain in their daily activities will also benefit from the study.
The finding will also give an insight to other supply chain partners (the suppliers, distributors, Retail outlets, transporters, etc…) about Information Technology in the chain of the case breweries industry. It is noted that most of the firms in Ethiopia do not have improved Information Technology system that help them improve the activities.
Academicians will also benefit from the study. They need to put more emphasis on the importance of Information Technology in the supply chain field. As this research study has its own scope limitation, other researchers can also use it as starting point to further capitalize on IT’s Role in Supply Chain which have not been addressed in this study.
1.6 Scope of the Study (Delimitation of the Study)
The study will focus on the role of Information Technology on Supply Chain Management. The geographic scope of this study is limited to two case brewery companies located in Addis Ababa.
The duration in which data will be collected is in the month of Aug 2018.
1.7 Limitations of the Study
Since this study is a multiple case study, it lacks external validity or generalizability of the findings to the rest of the brewery companies in the industry.
1.8 Organization of The Research Report
The paper is organized in three chapters. The first chapter constitutes the information of the study. It includes background statement, statement of the problem, research questions, and objectives of the study, significance of the study and the scope & limitation of the study.
The second chapter reviews the related literature. It contains other studies & writings on IT, SCM and their application on business. The third chapter shows the method of study that is going to be addressed during the study.

Industry 4.0 is a vision of tomorrow’s manufacturing products finding their way independently through the production process. In intelligent factories machines and products communicates with each other cooperatively driving production raw materials and machines are interconnected with each other using Internet of things. The Objective of this system is to have highly flexible individualized and resource friendly mass production.
The Fourth Industrial Revolution urges us to think creatively about the manufacturing process, value chain, distribution and customer service processes. In the meanwhile, the future of education emphasizes the immense need to look beyond these areas and strategically utilize the “Internet of Things” to prepare the coming workforce for the challenges ahead.
For manufacturing companies Industry 4.0 means improved efficiency and flexibility – even the advent of previously unattainable capabilities. The ability to economically produce small-batch “one-off” production runs without regard to the economies of scale is just one of the benefits that will accrue from the new order.
As approaches like Industry 4.0 gain popularity, the characteristics of data to be analyzed change. Some processes require high-speed data whose value diminishes over time. Heterogeneous IoT devices and sensors produce unstandardized and unstructured data. IT industry continuously comes up with new models which can use distributed architectures to process data more quickly and efficiently. However, available analysis methods are insufficient to use high-speed data flowing from various sources due to their lower level complexities and shortcomings 1
At the end of 18th century, the first steam engines and the intelligent use of hydropower revolutionized production. The late 19th century saw the rise of electrical engineering and mass production. The 1st moving belt conveyor was used as long as 1870 and slaughterhouse. In the mid-1970’s electronics and information technology began to expand rapidly into an industry. Siemens develop 1st production that was based on computer-assisted controls. 4th industrial revolution is still vision experts believe that it will become reality within next 20 years. In intelligent factories, everything is interconnected wirelessly.

Fig. 1 Evolution of industrial automation. A Graphics source is DFKI

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The birth of the fourth industrial revolution, namely Industry 4.0, is assumed to coincide with the Industry 4.0 initiative 2. Industry 4.0 is a strategic initiative included by the German government as part of its High-Tech Strategy 2020 Action Plan, according to which the Internet-based technologies are used to improve all industrial processes, from manufacturing to distribution, from sales to post-sales. In the same period, similar initiatives were undertaken by other countries, such as Internet + in China 3 and Industrial Internet in the USA 4. All of them moved from the consideration that new paradigms such as Internet of Things (IoT), Cyber-Physical Systems (CPS), crowd sensing, crowdsourcing, cloud computing and Big data, which were already being used to turn “normal” environments into smart environments (e.g., Smart Homes, Smart Cities), could be integrated with industry-related processes to enhance their performance.
Intelligence had been already introduced in industries thanks to embedded systems, i.e., systems made of devices where sensors and actuators are embedded and connected to a control unit via field buses 5. However, traditional embedded systems are conceived as stand-alone systems. The technologies introduced by Industry 4.0 enable communication and cooperation among devices and stand-alone systems so that a higher level of intelligence can be provided to industrial processes 5,6. More specifically, there are two ways in which communication can provide intelligence to objects: (i) less capable objects can leverage the resources of smarter objects, whether they are located nearby or remotely (e.g., cloud computing). Accordingly, less powerful objects typical of the industrial scenario, such as sensors and RFID (Radio Frequency Identification) tags, can cooperate with other more powerful objects to perform smarter applications; (ii) communication can be used by objects that are already smart, such as smartphones, to “augment” their intelligence thanks to information collected by distributed objects, whether it is objective, coming from measures collected by sensors, or subjective, provided by humans. This is the concept on the basis of crowdsensing and crowdsourcing, where big amounts of data gathered by multiple nodes are processed to get more complex information.
According to these considerations, seamless ubiquitous Internet access, communication between intelligent machines and advanced analytics methods are to be considered the pillars of Industry 4.0 Future Internet 2018, 10, 24 3 of 14 revolutions 3, fostered by the IIoT 7,5 and CPPS 8 paradigms.

1. Simulation- Ideal for machinery and scenario planning
2. Autonomous system- program machinery and robots to CT autonomously
3. Cloud computing- user’s remote servers to store, manage and process data for faster access
4. Additive manufacturing- digital 3D design data builds in layers by depositing materials
5. Big data- It can determine the action and improve the process
6. Cybersecurity- It protects manufacturer’s most valuable data
7. IoT- It connects the Internet to a machine to send and receive process data.
8. Horizontal and vertical system integration- It enables truly automated value chains.

1. Interoperability- machines, devices, and people connect and communicate with each other.
2. Information transparency- system create a virtual copy of physical world through sensor data.
3. Decentralized decision making- cyber-physical system make simple decisions to become as autonomous as
4. Technical assistance- System to support humans in making decisions and solving problems and assist with the

i. The concept of systematic risk and how it is related to other types of risk such as common risk, idiosyncratic risk or independent risks.

There is different type of risk in evaluating an investment that are commonly used by decision makers in both private corporations and public agencies. Each of these types when used properly, a manager can increase portfolio returns or reduce risk to optimize an investment portfolio. However, it is important to define these types of risk precisely.

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Systematic Risk
Systematic risk, This type of risk is also called common risk, undiversifiable risk, or market risk. This risk is associated with market returns, which can be attributed to broad factors. It is risk to your investment portfolio that cannot be attributed to the specific risk of individual investments.
Fluctuations of a stock’s return that are due to market-wide news represent common
risk. As with earthquakes, all stocks are affected simultaneously by the news.

Sources of systematic risk is due to market wide news which could be macroeconomic factors such as changes in interest rates, inflation, fluctuations in currencies, wars, recessions, etc.
Macro factors which influence the direction and volatility of the entire market would be systematic risk. An individual organization cannot control systematic risk.
Systematic risk can be partially mitigated by asset allocation. Owning different asset classes with low correlation can smooth portfolio volatility because asset classes react differently to macroeconomic factors. When some asset categories (i.e. domestic equities, international stocks, bonds, cash, etc.) are increasing others may be falling and vice versa.
To further reduce risk, asset allocation investment decisions should be based on valuation. I want to adjust my asset allocation target according to valuations. I want to overweight those asset classes that are bargains and own less or avoid investments which are overpriced. When mitigating systematic risk within a diversified portfolio, cash may be the most important and under appreciated asset category.

Unsystematic Risk
Unsystematic risk, This type of risk is also called idiosyncratic risk or independent risk. This is risk attributable or specific to the individual investment or small group of investments. It is uncorrelated with stock market returns. Other names used to describe unsystematic risk are specific risk, diversifiable risk, idiosyncratic risk, and residual risk.
Examples of risk that might be specific to individual companies or industries are business risk, financing risk, credit risk, product risk, legal risk, liquidity risk, political risk, operational risk, etc. Unsystematic risks are considered governable by the company or industry.
Proper diversification can nearly eliminate unsystematic risk. If an investor owns just one stock or bond and something negative happens to that company the investor suffers great harm. But if an investor owns a diversified portfolio of 20, 30, or 40 individual investments, the damage done to the portfolio is minimized.
The important concept of unsystematic risk is that it is not correlated to market risk and can be nearly eliminated by diversification.

Intuitively, the key difference between them
is that an earthquake affects all houses simultaneously, so the risk is perfectly correlated
across homes. We call risk that is perfectly correlated common risk. In contrast, because
thefts in different houses are not related to each other, the risk of theft is uncorrelated
and independent across homes. We call risks that share no correlation independent risks.
When risks are independent, some individual homeowners are unlucky and others are
lucky, but overall the number of claims is quite predictable. The averaging out of independent
risks in a large portfolio is called diversification.

Independent risks
are diversified in a large portfolio, whereas common risks are not.

What causes dividends or stock prices, and therefore returns, to be higher or lower than we
expect? Usually, stock prices and dividends fluctuate due to two types of news:
1. Firm-specific news is good or bad news about the company itself. For example, a
firm might announce that it has been successful in gaining market share within its
2. Market-wide news is news about the economy as a whole and therefore affects all
stocks. For instance, the Federal Reserve might announce that it will lower interest
rates to boost the economy.

Fluctuations of a stock’s return that are due to firm-specific news are independent risks.
Like theft across homes, these risks are unrelated across stocks. This type of risk is also
referred to as firm-specific, idiosyncratic, unique, or diversifiable risk.
Fluctuations of a stock’s return that are due to market-wide news represent common
risk. As with earthquakes, all stocks are affected simultaneously by the news. This type of
risk is also called systematic, undiversifiable, or market risk.

When we combine many stocks in a large portfolio, the firm-specific risks for each stock
will average out and be diversified. Good news will affect some stocks, and bad news will
affect others, but the amount of good or bad news overall will be relatively constant. The
systematic risk, however, will affect all firms-and therefore the entire portfolio-and will
not be diversified.


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