The Diet Center: The SAP ERP Decision
(8 pages of text)
The Diet Center (DC) was Lebanon’s first nutritional company to offer food consultancy services and meal catering to the public. The company faced numerous challenges competing in an unstable local market. Despite her company’s growth in sales and product development, DC’s general manager was extremely frustrated with the operating results and the bottom line. In November 2014, she decided to consider migrating to an enterprise resource planning system that would integrate all of DC’s operations and deliver real-time relevant financial and operational data. The sales manager of System, Applications, and Products in Data Processing (SAP) for the Middle East and North Africa region suggested that DC should migrate to the gold standard SAP business management software to reap many benefits. Should DC implement the new SAP system? Would the benefits exceed the costs? What challenges would DC face if it chooses to adopt a SAP system?
This case is intended for senior undergraduate and graduate students. It can be used in various courses including management, information systems, finance, and accounting. The case provides a practical example for students to apply a comprehensive approach to business decision making, covering various concepts such as financial reporting, strategic assessment, problem identification, planning, and implementation. After completion of this case, students will be able to
- evaluate the firm’s growth strategy, mission, and vision;
- assess the need for and role of an appropriate enterprise resource planning (ERP) system in the operations of a firm;
- evaluate the costs and benefits of implementing an ERP system;
- assess the effects of an ERP system on the various activities within the firm; and
- discuss the future of the company by predicting the potential impact of an ERP system on the company’s operations and by assessing future financial results.
Lebanon, Medium, 2014
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