Convenience

Complete
Information must tell a complete story for it to be useful to a manager. If it
is less than
complete information
, the manager is likely to get an inaccurate or dis-
torted picture of reality. For example, managers at Kroger used to think that house-
brand products were more profitable than national brands because they yielded higher
unit profits. On the basis of this information, they gave house brands a great deal of
shelf space and centered promotional activities around them. As Kroger’s managers
became more sophisticated in understanding their information, however, they realized
that national brands were actually more profitable over time because they sold many
more units than house brands during any given period of time. Hence, although a
store might sell 10 cans of Kroger coffee in a day, with a profit of 50 cents per can
(total profit of $5), it would sell 15 cans of Maxwell House with a profit of 40 cents
per can (total profit of $6) and 10 vacuum bags of Starbucks coffee with a profit of
$1 per bag (total profit of $10). With this more complete picture, managers could do
a better job of selecting the right mix of Kroger, Maxwell House, and Starbucks coffee
to display and promote.
timely information
Available in time for
appropriate
managerial action
accurate
information
Provides a valid and
reliable reflection of
reality
complete
information
Provides the
manager with all the
information that he
or she needs
Chapter 12:
Communication in Organizations
3 6 5
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