Question

Part #1: The Caribbean Club The Caribbean Club is one of the Virgin’s Islands/ hottest night spots. It’s a great place for locals to meet after work and relax with friends. It’s a popular destination for tourists why stay on the island, and it’s always on the list of fun entertainment choices for the crowds from the cruise ships that dock in the harbor. The reason the Club is so popular with such a variety of customers is because the founder of the club, Ross Stewart, always has such innovative and visionary ideas that delight the patrons. For example, every night of the week the Club features different activities or shows, including beach volleyball, Caribbean shows with calypso singers, would-class musicians who play steel drums, and other island entertainment. Since Ross was a former accountant and auditor with one of the largest public accounting firms in New Zealand, he is very accustomed to brainstorming sessions to generate ideas and surface concerns. He bought this practice with him to the Caribbean and holds brainstorming sessions with his “club associates” (Which is what he called all of the employees at the club) once every month to identify new and novel ideas to increase the popularity and profitability of the club. As you might imagine, the patrons of a night club are there to relax and enjoy themselves. So, the associates thought it would be great idea to somehow be able to recognize their regular patrons so that they wouldn’t have to trouble them with a bill every time a server came to their table with another round of drinks. After all, if the club wanted these people to “feel like they were at home with friends”, the patrons shouldn’t have to bother with trying to decide who owed what to pay the bill. So, Ross and his associated came up with the idea to implant their regular customers with an implantable microchip. The idea was to make the chip “fun”- to give an elite status so that their regular patrons would want to be implanted. To dramatize the elite status of the chip, Ross decided that the Club would have a special area where only those with chips. The “VIPs”, would be admitted. And of course, this area would have various exclusive services for these members. The chip would allow the VIPs to be recognized and to be able to pay for their food and drinks without any ID-they would simply pass by a reader and the Club would know who they are and their credit balance. Ross also wanted the information system supporting the chip to be a customer relationship management tool. Answer the following questions: 1. What do you think of this idea? What are the advantages and disadvantages of this idea for the Caribbean Club? 2. What are the advantages and disadvantages for the patrons? 3. If you were a passenger on a cruise ship, or staying at a resort on the island, would you get the chip implanted? Why or why not?

Part #2: Vertical Markets and Accounting Information Needs • There are many vertical markets industries apart from industries discussed in chapter 11. Identify two additional vertical markets industries and explain what are the unique characteristics of these industries that affect their AISs?

Answer 1

PART 1

1) Idea for information supporting chip is better than simply pass by a reader and know about only credit information. club is a social and public palace at which people get feel confortable, so more inquiries and genual bill payments may bother and disturb them. this is a good way to establish a microchip system in club.

merits of micro chip system

a) custumers don't feel get bored from regular paterns

b) fastest to recognise persons

c) payments should also be speedy with chip system.

d)Manage a large amount of data

e) No need of any kind of paper work

f) wastage of paper is reduced. less manpower is required to manage the physical payment calculations. Complexity with calculations can also be reduced.

Demerits of micro- chip idea

a) technical drawbacks and failures may arise.

b) simply pass reader having credit balance without id may be harmful for club.

c) microchips are harmful for health.

2)Advantages of patrons

a)differentiation is a quality of patrons. different kind of drinks is severed for take care about taste of customers and think that customers never get bored by differentiation.

b)Payments are received immediately, cash in hand format.

c) Patrons strenthen relationship between club employees and customers.

Disadvantages of patrons

a) Regular customers get feel bored because of regular patrons.

b) Payment can be done through bills. Paper work is required for that. paper is also wasted during bil preparations.

c)Time consuming process.

3. If i am a Passenger on cruise ship, or staying at a resort on the island, i don't get chip implanted. microchips may put negative impacts on health and body. it can also stoles porivacy and anyone's freedom, so i will never want to chip implated.

PART 2

Vertical markets- vertical markets are those markets which are based on vertical channels, One is regulatory of central body, others branches are spread over the entire country in vertical format. examples of vertical markets are

a)Banks

b) Educational institutes

Characteristics

1. In vertical markets top to bottom policy is implemented. lower authorities are liable to give response to top authorities.

2. Segmentation in vertical structure can divide work according to divisions.

3. Structure is more complex to understand in case of vertical markets than horizontal markets, because these spread over the entire country.

4. large amount of profit is generated by vertical markets.

5. vertical markets are establish for direct, nearest approach for customers and end users.

6. vertical industries are reputed and well known industries by its strong spreading architecture.

7. Plays a vital role in economy of a country.

8. vertical industries are more suitable when they are related with unique products.

9. veritical industries providing services are more gainable than production industries.

10. These kind of industries run by cooperartion and proper control.