MANAGEMENT INFORMATION SYSTEM (MIS)

Pantaloon

Submitted to:
Prof. H.K. Mishra

Submitted by:
Amit Goel (29007)
Anand Prakash (29008)

Institute of Rural Management, Anand

2009
Contents
Contents........................................................................................................................................... 2
CASE SUMMARY............................................................................................................................ 4
1. MISSION OF THE ORGANIZATION............................................................................................4
2. MISSION OF THE MIS................................................................................................................. 5
3. ORGANIZATION STRUCTURE...................................................................................................5
5. ARCHITECTURAL APPROACH...................................................................................................7
6. FORM OF MIS.............................................................................................................................. 7
7. FAYOL’S MODEL......................................................................................................................... 7
7.1 Planning: ................................................................................................................................ 7
7.2 Organizing............................................................................................................................... 7
7.3 Staffing: .................................................................................................................................. 8
7.4 Directing:................................................................................................................................. 8
7.5 Coordinate and Controls:........................................................................................................8
8. OMNIS MODEL............................................................................................................................ 8
8.1 Why does the organization need information?........................................................................8
8.2 Who are the key stakeholders?...............................................................................................9
8.3 Identification of Information System........................................................................................9
9. APPLYING MINTZBERG’S MODEL.............................................................................................9
9.1Organization Pyramid...............................................................................................................9
9.2 Transaction processing System (TPS)..................................................................................10
9.3 Management Reporting System (MRS).................................................................................11
9.4 Executive Support System (ESS)..........................................................................................12
9.5 Information system Event Cycle............................................................................................12
10. DATA AND INFORMATION MANAGEMENT...........................................................................12
10.1 Data Sources...................................................................................................................... 12
10.2 Data Matrix.......................................................................................................................... 13
10.3 Cardinality Matrix................................................................................................................ 13
10.4 Process Details................................................................................................................... 14
10.5 Process Matrix: ............................................................................................................. 15
10.6 E-R DIAGRAM.................................................................................................................... 15
10.7 Information Matrix............................................................................................................... 16
10.7.1 For Sales Team- operational level................................................................................16
 10.7.2 For Area Manager - Tactical level.................................................................................16
10.7.3 For the CEO- Pantaloon- Strategic level.......................................................................17
11. IMPLEMENTATION OF MIS PLAN..........................................................................................17

List of Figures

Figure 1: Organization Structure.......................................................................................................5

Figure 2: Organizational Pyramid.....................................................................................................9
CASE SUMMARY
Pantaloon group is a large Indian conglomerate with diversified business interest and and have been
promoted by Kishore Biyani.. The company aimed at providing total satisfaction to the customers
through wide variety of items, right pricing, pleasurable ambience, excellent service, best quality
and convenient visual merchandising.
Its business has grown from one store in Kolkota in 1997 occupying an area of 8,000 Sq. ft. to 72
stores, apart from our 22 factory outlets located in multiple cities occupying an aggregate area of
21,07,608 Sq. ft. Pantaloon has been a pioneer in introducing the concept of mega retail stores in
India called ‘Pantaloons’ for the entire family. In an extremely price-sensitive market like India, the
Pantaloons chain of stores has been successful in maintaining the equilibrium between quality and
price. Pantaloon outlets have been positioned as a complete family destination providing value-for-
money goods.
Each region has a Regional hub. Under their control is several Distribution Collection Centers. The
primary function of these DCC is to distribute the products across the PANTALOON retail stores.
They believe that their most valuable assets are their people, young in spirit, adventurous in action,
with an average age of 27 years; they are skilled & qualified professionals.
Pantaloon has its marketing strategy to stay ahead in the competition like Pantaloon is the title
sponsor of the event Femina Miss India 2007. Pantaloon is buying prime areas, instead of taking
rentals as rentals are now fifty per cent higher compared to what it used to be. Pantaloon's own
stores will also stock non-apparel related merchandise such as stationary, pens, gifts and toys for the
film.
The company that has grown at a tremendous pace is now faced with the challenge of keeping the
ball rolling, with competitors starting to get their act together. While Pantaloon has consistently
managed to execute its expansion projects, forays into new categories will have to be equally
successful for it to be able to deliver the kind of growth it has managed in the past. Given its
ambitious expansion plans, Pantaloon is likely to sustain its first mover advantage. While new
stores would drive revenue growth, sustaining customer attention once the novelty of a format
wears off is a challenge.
Pantaloon operates in a competitive environment. The company has integrated backwards into
garments manufacturing even as it expanded its retail presence at the front end, well before any
other retail company attempted this. It was the first to introduce retail departmental store for the
entire family through Pantaloon in 1997. Today Pantaloon is the fastest growing retail company in
India.
In our assignment we have focused only on the retail chain of Pantaloons and not on the complete
Pantaloon retail Pvt Ltd. which includes stores under the name of Pantaloons, Big Bazaar, Central,
Food Bazaar etc.

1. MISSION OF THE ORGANIZATION

• We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.
• We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segments – for classes and for masses.
• We shall infuse Indian brands with confidence and renewed ambition.
• We shall be efficient, cost- conscious and committed to quality in whatever we do.

2. MISSION OF THE MIS

To strengthen the current supply chain of Pantaloon by improving the distribution/ procurement
strategy of the company and help retain its share in the competitive retail sector and there by
increasing sales and profitability.

3. ORGANIZATION STRUCTURE
Pantaloons come under ‘Divisional Bureaucracy’ type of organizations. Decisions are taken
centrally as well as locally at the regional level.

Figure 1: Organization Structure

 Head,
Pantaloons
Head, Regional Profit
Center

Operation Merchandisin Warehouse/DCC Marketing HR

s g

Area Area Category Picking Dispatch

Inward
Manager Manager Managers

outlet
Produce
Managers

Packaged
Outlet Procureme
Products
nt Team

Dispatch

Manufacturers
Customers

Material Flow

Source: Company records

4. VIEWS OF ARCHITECTURE
4.1 Architectural View
The overall aim of Pantaloon is to increase its market share in the booming Indian retail industry. It
is customer oriented company.
4.2 Structural View
It relates to functions and relations among them. Production, Procurement, finance and Marketing
are very critical functions for the Pantaloon.
4.3 Behavioural View
Behavioral views include state of systems in place. Inventory holding costs of production units and
outlets are parts of the “states” of the systems to be monitored. Pricing policies are market driven
and are governed by “what-if” analyses for applying them across the organization.
4.4 Execution view
Explicitly nothing much is written about this aspect in the case.
5. ARCHITECTURAL APPROACH
The MIS will be used by the head of the organization as well as the staff at different Regional hubs
for taking localized decisions as well as keeping in tune with the central decision-making body. So,
establishing architecture will help in getting uniformity across users. The organization structure
shows that a Clustered Architecture approach will be suitable for developing MIS.
It manages heterogeneous products and services and it has production units. Organization is
divisionalised but many decisions are centralized.

6. FORM OF MIS
Pantaloon will have to opt for a Decision Support System which will help them in capturing the
customer data and further combine this data with back office applications for the fulfilment of their
objectives. This DSS will help them to take decisions pertaining to various aspects like pricing,
supply chain management and would further help the organization to be customer centric. It deals
with the unstructured problems; a model for decision making is required.

7. FAYOL’S MODEL
7.1 Planning:
The organization’s long term goal is to capture a major pie in the market share and earn good
profits. For this purpose the organization has:
• A Procurement plan where it procures its finished goods (apparels) from various brand
manufacturers.
• A outlet site selection plan (to open at convenient and profitable location)
• A marketing plan where (Collect apparels, footwear etc from companies and allocate store
space etc., Advertising.)
• A finance plan on revenues and expenditure and how many stores to open, how many brands to
keep. Reducing inventory levels.

7.2 Organizing
ORGANIZATION MIS
Level of
Level of
organizati Functions Actors Reports Actors
MIS
on
Daily revenue
Board of collection, Board of
Production, Finance, Directors Daily production and Directors
STRATE STRATE
Procurement, Chairman, inventory sold, daily Chairman,
GIC GIC
Marketing Managing outstanding reports, Managing
Director decisions to open Director
new outlets
 Sale and supply
reports, Inventory
Production, Finance, General status report General
TACTIC TACTIC
Procurement, Managers, Daily product wise Managers,
AL AL
Marketing Managers demand, Managers
Outlet wise, reorder
point, EOQ level,
Supervisors Supervisors,
Production, Production,
Product-type,
Marketing, Marketing,
Production, Finance, Daily Procurement,
OPERAT Distributors OPERAT Distributors,
Procurement, Expenses, Inventories
IONAL Store in IONAL Store in
Marketing stock, Finished
charge, charge, floor
goods,
floor staff staff
outlets, outlets,

7.3 Staffing:
The staff includes area manager, store manager, category managers, sales team etc.
• Helping employees to realize their potential through innovative HR practices
• Performance improvement of employees by regular in-house and external training

7.4 Directing:
• New products/ designs to be introduced (Quantity-wise and variety-wise).
• Identification of proper stores location
• Continuous supply of inventories from suppliers (Preparation of procurement schedule)
• Inventory planning, monitoring, and tracking of work in process.

7.5 Coordinate and Controls:

• Inventory control to keep the cost at optimum level. Monitoring WIP
• Orders placed to the suppliers for inventories.
• Volumes of the orders from the customers that the company can handle
• Organized reports at all levels.
• Competitors

8. OMNIS MODEL
8.1 Why does the organization need information?
The organization needs information to coordinate its flow of materials smoothly and reduce
transaction costs which may increase due to information asymmetry among various functional
departments.
E.g. the marketing department needs to coordinate with the procurement department to handle the
inventory and prevent stock-outs.

8.2 Who are the key stakeholders?

The key stakeholders are the company, employees, shareholders and customers.

8.3 Identification of Information System

Description Processes Related Controls
functions
Procurement - Procure from wholesalers - Marketing - Surplus management
Information - Providing technical know- - Accounting - Demand
system how
Finance and - Manage Accounts -Planning & -A/C standards
Accounting construction -Organization Policy
Information -HR, Finance
System
Marketing - Stock maintenance - Distribution - Forecast demands
Information - Merchandising - Accounting - Customer complaints
System - Selling - Competition
- Customer service
Production - Products - HR, - Production has to be as per
Information - Manage Demand - Marketing, the specified quality
System - Get raw material - Distribution
- Manage production - Finance
Human - Recruitment of employees - HR -Planning and Budget
Resource - Training provided - Finance -Organizational Policy
Information - Promotion
System - appraisal

9. APPLYING MINTZBERG’S MODEL

9.1 Organization Pyramid
Figure 2: Organizational Pyramid
 Where to
Sales Personnel
establish
Profitability Projectio Planning
production Operational Level
projection n
unit
per store
Strategic Level

Inventory Contracting &

Control Relocating
control
Tactical Level
Sales
Establish linkages region
with suppliers for
Raw Material Analysis

Establishing Manage Employee

Employee
How to
produce market Stores
linkages Recordkeepin
Recordkeepin
g
g
Production Marketing Operations Human
Resource
Source: Based on Case Study

9.2 Transaction processing System (TPS)

It estimates number of transactions with indications on mode and medium in an organization and it
provides a scope to identify areas of automation in the organization to optimize transaction cost and
time.
Transaction Mode of Processes Goal/Purpose Remarks
Description Transaction
Dispatch of Products to Batch/Offlin Collect demand notes To collect demand notes Can be automated
stores e from city stores in time for OLTP
 environment
Quality checking of Offline Quality control Reject products not -
products. meeting quality
standards
Sourced Buying from Offline Giving orders to To get timely delivery Can be automated
different companies. various companies from companies online for OLTP
enviroment

Inform regional centre Offline/batch Prepare daily schedule Different requirement of Can be automated
about the level of mode for city store different products online for OLTP
inventory schedule enviroment
Selling of products via Online Receiving Order via Promptly attend the -
website Website order

9.3 Management Reporting System (MRS)

Place/Source Report Description Processed/Report
ed
Stores Area Manager
- Daily, Weekly, Monthly sales figure Processed
- Daily, weekly, Monthly customers visit Processed
- Daily Inventory of stores Reported
- Items below 95% service stock Processed
- Complaints of customer Reported
Distribution DCC
Collection Center - Requirements from stores Reported
- Replenishment scheduling of stores Processed
- Procurement Scheduling Processed
- Inventory level item wise in warehouse Processed
Sales Team
- Items and quantity to be procured Reported
- Price to be paid Processed
Regional Hub Commercial
- Total profit and revenue from stores Processed
- Total quantity handled by stores
- Investment required in stores
Marketing
- Demand projection for items in a stores
- Demand estimation at various location
- Average sales of stores and average procurement
Operations
- Average retail space acquired at each store Processed
- Requirement for new stores
- Average inventory of stores
 - Average replenishment time for stores
Merchandizing
- Total packaging cost Processed
Regional Head Distribution collection center performance Reported
Stores performance report
Profitability of stores

9.4 Executive Support System (ESS)

Various reports generated for the Strategic apex of the Pantaloon like CEO of the company.
Indicative list of such reports are listed in the 10.7.3.

9.5 Information system Event Cycle

Pantaloon is very much quality conscious company and stocks products of branded companies only.
It also has its own private labels which it either sources from third party manufacturer or through its
own production unit. In both cases quality is never compromised. It also wants to increase the
market share in organized Retailing. Due to sudden increase in the number of companies entering
into the organized retailing Pantaloon is experiencing the high turnover due to poaching by other
companies.

So we have prepared an event cycle based on Employee Turnover:

(High Employee Turnover) (Middle Management Layer

Experiences turnover)

Events in function updating in information base

Change in events Management & Control

(More Salary by competitors) (Employee Dissatisfaction)

10. DATA AND INFORMATION MANAGEMENT

10.1 Data Sources
S. No. Data Source Data Associated
1. Regional hubs Hub_Id, City_ Name, State_Name , Address
2. Stores Store_ Id, Location_ Name, Size_ Area,
Store_ Format, No_of_Items, Hub_Id
3. Products Product_Name , Variety, Stock_ of_ Product, Product_Price, Store_Id
4. Employees Employee_ ID, Employee_ Name,
Employee_ Department, Employee_ Designation, Hub_ Id, DCC_ Id,
 Employee_ function
5. Direct consolidation DCC_Id, Location_ Name, Hub_Id
centre (DCC)
6. Company(Pantaloon) Company_Id, Location_Name
7. Suppliers Name, ID, product supplying, volume of trade.
8. Customer Customer_Id, Customer_Name, Amount_Purhased,
Quantity_Purchased, Products_Purchased

10.2 Data Matrix

S. No. Data Description Owner Shared by
C HR D O M P
1. Regional hubs Pantaloon(C) X X X X X

2. Stores Operations(O) X X X X X

3. Products Marketing (M) X X X X

4. Employees Human X X X X
Resource(HR)
5. Direct consolidation Distribution(D) X X X X X
centre (DCC)
6. Company(Pantaloon) Pantaloon(C) X X X X X X

7. Suppliers Procurement(P) X X

8. Customer Operations(O) X

10.3 Cardinality Matrix

Sr Data Description Region Stores Produc Emplo DCC Compa Suppli Custome
. al Hubs ts yees ny ers rs
N
o
1. Regional hubs 1-m 1-m 1-m 1-1 1-m 1-m 1-m

2. Stores m-1 m-m m-m m-m m-m m-m m-m

3. Products m-1 m-m m-m m-m m-m m-m
4. Employees m-1 m-m m-m m-m
5. Direct consolidation m-1 m-m m-m m-m m-m
centre (DCC)
6. Company(Pantaloo m-1 1-m 1-m 1-m 1-m 1-m 1-m
n)
7. Suppliers m-1 m-m m-m m-m m-1
8. Customer m-1 m-m m-m m-m m-1

10.4 Process Details

Proc Process Description Type of Goal Activities
ess # Process
1. Checking quality Support Better price -Quality Assessment
realization
2. Packaging and dispatch to Support Timely Delivery of - Packaging
retail stores Product to Stores - Transporting it to stores
3. Payment to wholesalers Support Simultaneous good - Cash purchase
realization to - Accounting for input
wholesalers supply
-Deduction of Transport
Cost
4. Acquisitions and adding Manage To increase market
Look for prime location
new retails spaces ment presence and take on
and suitable acquisitions.
big players
5. Sale and Marketing Core Maximizing revenues Investment in marketing,
and profits. new partners, maximizing
customer satisfaction.
6. Procuring produce from Support Meet the gap between -Procurement from
wholesalers Demand & Supply wholesale market
-Communicating with
DCC
7. Production Support As per demand Receive demand from
marketing/ produce in
time
 10.5 Process Matrix:
S Process Pro Pro Pro Pro Pro Pro Pro Pro
Process description
NO. owner #1 #2 #3 #4 #5 #6 #7 #8
1. Checking quality Procurement X

2. Packaging and Distribution X X X X

dispatch to retail
stores
3. Payment to Finance X X X
wholesalers
4. Acquisitions and Marketing X X
adding new retails
spaces
5. Sale and Marketing Sales X X X X

6. Procuring produce Procurement X X X

from wholesalers
7. Production Production X X X

Nam Nam
City_nam
10.6 E-R DIAGRAM e e
e

Pantaloons Regional Suppli Suppliers

h ed by
Hub
a
s

Compan Addre
y-id ss has

Location Name
_name

Hub_id Warehouse/DCC Products

Dispat
ch sel
Cust_id Cust_na Produc ls
me ts
customers Stores (retail
h h Employee
outlets)
as as s

Store_id
Location_na Emp_id Emp_na
me
Size_are me
a

10.7 Information Matrix

10.7.1 For Sales Team- operational level
Internal & Reported Internal & Processed
From DCC From DCC
- Items to be procured - Demand item wise
- Quantity to be procured - Monthly, weekly demand of items
- Quality parameters for produce
External & Reported External & Processed
From DCC From DCC
- Transportation scheduling for company - Price fluctuation in market
- Future requirement of Items - Transport routes for procurement
- Expected price for items

10.7.2 For Area Manager - Tactical level

Internal & Reported Internal & Processed
From Stores From Stores
- Total stock and sale value - Inventory item wise
- Total retail space occupied - Daily/weekly sales value
From DCC - Item wise sales value
- Stocks available From DCC
- Replenishment schedule - Stock available item wise
- Replenishment schedule item wise
- Time of replenishment
External & Reported External & Processed
From stores From Stores
- Total customer flow - Daily/Weekly customer flow
- Total discount offered to customers - Sales value per customer
 - Shelf life of items
From customers
- Future requirement of items

10.7.3 For the CEO- Pantaloon- Strategic level

Internal & Reported
- Centers with maximum sales and profit
- Centers with maximum customer visits
- Centers with maximum customer
complaints
- Stores with extra space requirement
External & Reported
- Return on investment realized
- Sales of competitors vis-à-vis Pantaloon
Internal & Processed
- Measures to improve performance
- Finance availability for expansion
- Item wise demand- supply analysis
- Items with highest value realization
External & Processed
- Increase in margins per item
- Increasing efficiency of supply chain
- Formulation of Competitor strategy
- Formulation of Expansion plans

11. IMPLEMENTATION OF MIS PLAN

We have developed the package in access around information matrix for Distribution Collection
Center (DCC). In this we have created the database table around data-sources for Procurement
Information system, and generated a report showing some of the information required by DCCs’.
We have created following four database tables:
1. Employees: Employee Id being primary key.
2. Regional_ Hub: Hub_ Id being primary key.
3. Distribution_ Collection_ Center: DCC Id being primary key
4. Suppliers: Supplier Id being primary key.
The tables are populated with some dummy data for testing purpose
The relationships between these tables are as per ER diagram we have made for the data sources.

The report generated:

DCC_Procured_Qty: