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Northern Caribbean UniversityDepartment of Business and Hospitality ManagementMGMT485: Management Information SystemsCase StudyAssignment # 2Instructor: Merlene Senior, MBAName: Roxanne Quailo- 28090150 Date: February 11, 2013Instructions: Read the Interactive Session: Organizations: How Much Do Credit CardCompanies Know about You? Then answer the Case Study Questions. Thisassignment may be done individually or in group. (Where done in groupsclearly type all the gr oup members’ name.) 1. What competitive strategy are the credit card companies pursuing? How doinformation systems support that strategy? (10 marks)
The competitive strategy that is used is Customer and Supplier Intimacy. Credit card companiescollect data every time a holder makes a purchase. This allows the company to get to know its customers at a glance. By recording and tracking all of the credit card holder’s purchases, thecompany is better equipped to learn its user’s behavior and having this infor mation can, in turn,help the company with factors such as future promotions for additional products or guard againstcredit card fraud and identity theft. Information systems support this strategy by allowing thecredit card companies to collect, process and store this data in a way that will be easy to use andaccess by employees. It also helps them to keep track of their records and allows them to spotand react faster to discrepancies.
2.

What are the business benefits of analyzing customer purchase data and constructingbehavioral profiles? (10 marks)
The benefits of analyzing customer purchase data and constructing behavioral profiles is that,you, as a business owner can get to know your customers. With the information that is collected,a business person can learn the habits, likes and dislikes, preferences and behavior of it