AB Hi-Fi has adopted a cost leadership strategy. Its overall plan is to undercut competitors on pricing and so gain market share.

(a) How well does its current revenue cycle align with this business strategy?

(b) Are there any opportunities to improve the degree of alignment between the revenue cycle and the business strategy? Explain what you would change and how this would improve the strategic alignment.

(a) Identify and describe the technologies that AB Hi-Fi uses in its revenue cycle activities.

(b) For each of those technologies you identified in part (a), how well does AB Hi-Fi use the technology? Could you suggest a way to improve the business benefit obtained by use of any of these existing technologies?

(c) Are there other suitable technologies available that AB Hi-Fi could be using for the revenue cycle activities? What additional technologies could AB Hi-Fi implement? What business benefit would these additional technologies provide?

During process 2.0 Pick, pack and ship the goods at AB Hi-Fi, a shipping clerk has to decide whether to complete the shipment of goods to a customer. Take a moment to review this section of the narrative before you complete the following questions.

Required

(a) What data does the shipping clerk draw on when making the decision?

(b) Where do the data you identified in part

(a) come from?

(c) Are these data reliable, that is, is there any possibility that there could be errors in the data?

(d) Are these data sufficient to make the decision, or can you Identify additional data that the clerk should consider when making the decision?

(e) What would be the consequences of an incorrect decision?