Nestle Struggles with Enterprise Systems

1. A&P had lots of problems with its business which made it fail the company had the wrong business plan, it was facing a number of serious problems in addition to its stagnant sales, Its obsolete information technology infrastructure was composed of a complex web of stitched-together old legacy systems. The company was primarily using 12- to 20-year old software running on two large mainframe computers, while all of the other companies which are A&P’s competitors were upgrading and using the latest technology for having a successful business plan. The company also had outdated, ineffective business processes, such as not having systems to analyze data from either customers or suppliers.

2. The A&P Company was expecting a lot from the Great renewal plan, but A&P was losing market share to new types of stores, such as Wal-Mart. The company was also facing a challenge from discount club stores, such as Sam's Club, and from convenience stores such as 7-Elevens. The company made its changes too late, yet they were losing a lot of money. System modernization could have solved the company by making it more efficient but because of the competitors that were around no customers would come back to A;P for they were too late, they could have liquidate the company and exited the market.

3. Implementing new systems would change the way A;P ran its business by increasing work efficiency by seeing what their customers want and also increasing the efficiency of their information system and of course by giving them more knowledge of how they should be working with sales, also they can help by improving the customers experience in shopping on the web.

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4. The great renewal project wasn’t successful at all, the company lost a lot of money, their sales had dropped, and losses increased, they were too late in finishing their project, plus that their costs were expensive. A;P should have took into consideration its competitors by reducing its costs and maybe starting earlier with the project. A;P should have worked more professionally for its one of the biggest companies, they could have also decrease the number of employees and getting much more skilled and professional ones to complete their work and succeed.

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