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. FAYOLS 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 MINTZBERGS 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-formoney 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
s
Area
Manager

Merchandisin
g

Warehouse/DCC

Category
Managers

Area
Manager

outlet
Managers

Inward

Marketing

Picking

HR

Dispatch

Produce
Packaged
Products

Outlet

Procureme
nt Team

Dispatch

Customers

Manufacturers

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. FAYOLS MODEL
7.1 Planning:
The organizations 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
Level of
organizati
on

STRATE
GIC

Functions

Production, Finance,
Procurement,
Marketing

MIS
Actors

Board of
Directors
Chairman,
Managing
Director

Level of
MIS

Reports

Actors

STRATE
GIC

Daily revenue
collection,
Daily production and
inventory sold, daily
outstanding reports,
decisions to open
new outlets

Board of
Directors
Chairman,
Managing
Director

TACTIC
AL

Production, Finance,
Procurement,
Marketing

General
Managers,
Managers

OPERAT
IONAL

Supervisors
Production,
Marketing,
Production, Finance,
Distributors
Procurement,
Store in
Marketing
charge,
floor staff
outlets,

TACTIC
AL

OPERAT
IONAL

Sale and supply

reports, Inventory
status report
Daily product wise
demand,
Outlet wise, reorder
point, EOQ level,

General
Managers,
Managers

Product-type,
Daily Procurement,
Expenses, Inventories
stock, Finished
goods,

Supervisors,
Production,
Marketing,
Distributors,
Store in
charge, floor
staff
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
Procurement
Information
system
Finance
and
Accounting
Information
System
Marketing
Information
System
Production
Information
System
Human
Resource
Information
System

Processes
-

Procure from wholesalers

Providing technical knowhow
- Manage Accounts

Related
functions
- Marketing
- Accounting

Stock maintenance
Merchandising
Selling
Customer service
Products
Manage Demand
Get raw material
Manage production
Recruitment of employees
Training provided
Promotion
appraisal

9. APPLYING MINTZBERGS MODEL

9.1 Organization Pyramid
Figure 2: Organizational Pyramid

-Planning
construction
-HR, Finance

Controls
- Surplus management
- Demand
& -A/C standards
-Organization Policy

Distribution
Accounting

- Forecast demands
- Customer complaints
- Competition

HR,
Marketing,
Distribution
Finance
HR
Finance

- Production has to be as per

the specified quality

-Planning and Budget

-Organizational Policy

Where to
establish
production
unit

Profitability
projection
per store

Sales
Projectio
n

Personnel
Planning

Operational Level

Strategic Level

Inventory
Control

Contracting &
Relocating
control

Tactical Level

Sales
region

Establish linkages
with suppliers for
Raw Material

Analysis
How to
produce

Production

Establishing
market
linkages

Manage
Stores

Marketing

Operations

Employee
Employee
Recordkeepin
Recordkeepin
g
g
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
Processes
Goal/Purpose
Remarks
Mode of
Description
Transaction
Dispatch of Products to Batch/Offlin Collect demand notes To collect demand notes Can be automated
from city stores
in time
for OLTP
stores
e

Quality checking of
products.

Offline

Quality control

Sourced Buying from

different companies.

Offline

Giving orders to
various companies

Reject products not

meeting quality
standards
To get timely delivery
from companies

Inform regional centre

about the level of
inventory schedule

Offline/batch
mode

Prepare daily schedule

for city store

Different requirement of
different products

Selling of products via

website

Online

Receiving Order via

Website

Promptly attend the

order

environment
-

Can be automated
online for OLTP
enviroment
Can be automated
online for OLTP
enviroment
-

9.3 Management Reporting System (MRS)

Place/Source

Report Description

Stores

Area Manager
- Daily, Weekly, Monthly sales figure
- Daily, weekly, Monthly customers visit
- Daily Inventory of stores
- Items below 95% service stock
- Complaints of customer
DCC
- Requirements from stores
- Replenishment scheduling of stores
- Procurement Scheduling
- Inventory level item wise in warehouse
Sales Team
- Items and quantity to be procured
- Price to be paid
Commercial
- Total profit and revenue from stores
- 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
- Requirement for new stores
- Average inventory of stores

Distribution
Collection Center

Regional Hub

Processed/Report
ed
Processed
Processed
Reported
Processed
Reported
Reported
Processed
Processed
Processed
Reported
Processed
Processed

Processed

Regional Head

- Average replenishment time for stores

Merchandizing
- Total packaging cost
Distribution collection center performance
Stores performance report
Profitability of stores

Processed
Reported

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)

Events in function

(Middle Management Layer

Experiences turnover)
updating in information base

Change in events
(More Salary by competitors)

Management & Control

(Employee Dissatisfaction)

10. DATA AND INFORMATION MANAGEMENT

10.1 Data Sources
S. No.
1.
2.
3.
4.

Data Source
Regional hubs
Stores
Products
Employees

Data Associated
Hub_Id, City_ Name, State_Name , Address
Store_ Id, Location_ Name, Size_ Area,
Store_ Format, No_of_Items, Hub_Id
Product_Name , Variety, Stock_ of_ Product, Product_Price, Store_Id
Employee_ ID, Employee_ Name,
Employee_ Department, Employee_ Designation, Hub_ Id, DCC_ Id,

5.
6.
7.
8.

Direct consolidation
centre (DCC)
Company(Pantaloon)
Suppliers
Customer

Employee_ function
DCC_Id, Location_ Name, Hub_Id
Company_Id, Location_Name
Name, ID, product supplying, volume of trade.
Customer_Id,
Customer_Name,
Quantity_Purchased, Products_Purchased

Amount_Purhased,

10.2 Data Matrix

S. No. Data Description
1.

Regional hubs

Pantaloon(C)

Shared by
C
HR
X
X

2.

Stores

Operations(O)

3.

Products

Marketing (M)

4.

Employees

6.

Human
Resource(HR)
Direct
consolidation Distribution(D)
centre (DCC)
Company(Pantaloon)
Pantaloon(C)

7.

Suppliers

Procurement(P)

8.

Customer

Operations(O)

5.

10.3 Cardinality Matrix

Owner

D
X

O
X

M
X

Sr
.
N
o
1.
2.
3.
4.
5.
6.
7.
8.

Data Description

Region
al Hubs

Regional hubs
Stores
Products
Employees
Direct consolidation
centre (DCC)
Company(Pantaloo
n)
Suppliers
Customer

Stores

Produc
ts

Emplo
yees

DCC

Compa
ny

Suppli
ers

Custome
rs

1-m

1-m

1-m

1-1

1-m

1-m

1-m

m-m

m-m

m-m

m-m

m-m

m-m

m-m

m-m

m-m

m-m

m-m

1-m

1-m

1-m

m-1
m-1

m-m

m-m

m-m

m-1

m-m

m-m

m-m

m-1

m-m

m-1

1-m

1-m

1-m

m-1

m-m

m-m

m-m

m-1

m-1

m-m

m-m

m-m

m-1

10.4 Process Details

Proc Process Description
ess #
1. Checking quality

Type of
Process
Support

2. Packaging and dispatch to

retail stores
3. Payment to wholesalers

Support

4. Acquisitions and adding

new retails spaces

Manage
ment

5. Sale and Marketing

Core

6. Procuring produce from

wholesalers

Support

7. Production

Support

Support

Goal

Activities

Better price
realization
Timely Delivery of
Product to Stores
Simultaneous good
realization to
wholesalers

-Quality Assessment

To increase market
presence and take on
big players
Maximizing revenues
and profits.

- Packaging
- Transporting it to stores
- Cash purchase
- Accounting for input
supply
-Deduction of Transport
Cost
Look for prime location
and suitable acquisitions.

Investment in marketing,
new partners, maximizing
customer satisfaction.
Meet the gap between -Procurement from
Demand & Supply
wholesale market
-Communicating with
DCC
As per demand
Receive demand from
marketing/ produce in
time

10.5 Process Matrix:

S
Process description
NO.
1. Checking quality

Process
owner
Procurement

2. Packaging and
dispatch to retail
stores
3. Payment to
wholesalers
4. Acquisitions and
adding new retails
spaces
5. Sale and Marketing

Distribution

6. Procuring produce
from wholesalers
7. Production

Procurement

Pro
#3

Sales

X
X

Addre
ss

Nam
e

Regional
Hub

Nam
e
Suppli
ed by

Suppliers

Name

Cust_na
me

Warehouse/DCC

Dispat
ch
Produc
ts

X
X

has

Hub_id

Pro
#8

City_nam
e

h
a
s

Pro
#7

Production

Pro
#6

Location
_name

Cust_id

Pro
#5

Marketing

Pantaloons

Pro
#4

Finance

10.6 E-R DIAGRAM

Compan
y-id

Pro Pro
#1 #2
X

Products

sel
ls

customers

Stores (retail
outlets)

h
as
Store_id

Location_na
me

Employee
s

h
as

Emp_id
Size_are
a

Emp_na
me

10.7 Information Matrix

10.7.1 For Sales Team- operational level

Internal & Reported

From DCC
- Items to be procured
- Quantity to be procured
- Quality parameters for produce
External & Reported
From DCC
- Transportation scheduling for company
- Future requirement of Items
- Expected price for items

Internal & Processed

From DCC
- Demand item wise
- Monthly, weekly demand of items
External & Processed
From DCC
- Price fluctuation in market
- Transport routes for procurement

10.7.2 For Area Manager - Tactical level

Internal & Reported

From Stores
- Total stock and sale value
- Total retail space occupied
From DCC
- Stocks available
- Replenishment schedule

External & Reported

From stores
- Total customer flow
- Total discount offered to customers

Internal & Processed

From Stores
- Inventory item wise
- Daily/weekly sales value
- Item wise sales value
From DCC
- Stock available item wise
- Replenishment schedule item wise
- Time of replenishment
External & Processed
From Stores
- Daily/Weekly customer flow
- 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--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: