The strategic management of information - MyAssignmenthelp.com

Question: Discuss aboutThe strategic management of information. Answer: SWOT Analysis SWOT ANALYSIS DELL STRENGTHS WEAKNESSES The company has a direct business model which focuses on creation of value customer relation with the help of technical support and added services. Dell has the resource that ensures high quality and performance. Dell offers the customers opportunity to get the PCs customized which in turn adds a personal feel. The price of the products and services offered by the company is much lower than the competitors (Grant 2016) Instead of focusing on the needs of the customers on a global basis the company focused the requirements on the home country The research and development department of the company is lagging in terms of its contemporaries The brand has a low differentiation value. OPPORTUNITIES THREATS Increased services to small and medium business entities. Expansion in location where there is lack of technical support in order to help in the growth and development of those places. To make changes in the product and service as per the criticism received directly from the customers. Diversification of products Some of the direct threats to the company are the competitors not only from the home brands also from the brands that are available globally. The market in which dell operates have a very slow growth and a large investment process (Bull et al. 2016). PEST analysis PEST ANALYSIS CHINA POLITICAL ECONOMIC To settle with the political forces of China is one of the critical and most important factor for a company Leader of the 21st century China focuses on market-oriented economic development which is helpful for companies to expand their business in China. There is a change in the living standards among the people yet there are still strict political rules and regulations (Zhu et al. 2015). Per capita incomes of the people are low yet the economy is one of the leading in the world, which makes it advantageous for multinational company to expand in china. China has encouraged the private sector to grow exponentially and become a notable industry in the international market. Fiscal decentralization, Liberalization of prices foreign trade and investment. Increased autonomy for state enterprises as well as improved condition of the stock markets. SOCIAL TECHNOLOGICAL Improved standard of living Acceptance of modern technology Involvement of improved technology in the daily lives Improved knowledge regarding the dynamics of modernization among the people Reduced incidents of corruption China is known to welcome new and innovative ideas in the market Though there are several home grown as well as multinational e-commerce websites operating in the country the procedure of online payment is still regarded as unsafe (Ho, 2014). Relevant legislation Foreign Trade Law of The People's Republic of China (2004), this legislation was formulated in order to liberalize the trade and connect the country with the dynamics of the global scenario. This law also protects the interest of foreign traders from exploitation. Code of Practice Code of practice is the document which a company maintains the principles and values of the organisation on a daily basis. The codes of practices are guidelines more than being rules and regulations depending on the principles and ethics maintained by the company. All companies must abide by the global ethical standards which are mostly stated in the code of practice. It is related to organisational value as the code of practice maintained by the company is a direct reflection of the values that are practiced within the organisation. Porters Competitive Forces model There are various factors that impact the operation of a business entity and to analyze one of the most important factor competitors a Porters Competitive Forces model is used. This theory is developed by M. Porter in 1979. Five instruments help a company analyze the business environment in terms of the competitive advantage or challenges it has. The theory also explains the profitability of the strategies that are employed by the company. Threat of New Entrants: This phase analyses the possibility of new business entering the industry. Investment, capital, resources are some of the aspects that are analyzed (Zhao et al. 2016). New entry in the industry means new competition who can take a part of the profit. In the computer industry threat to new entrant is limited because of the huge capital and initial investment requirement. Rivalry Intensity: The industry in which a company operates has a number of competitors who deal and so business in the same product or service with varied a mount of resources and capabilities. If the intensity of rivalry is high the chances of a consumer opting for the other companies are more hence impacting the sales and profit of the organisation (Indiatsy et al. 2014). Threat of substitution: There is a substitute of all products, for example laptops and tablets, in the global industry the substitute item pose a major threat to the business as the customer may change the product to use the substitute instead and this will cause customer churn which in turn has a negative impact on the profitability of the company. Sometimes there are duplicate items found in the market for big brands, this is also a substitute. Bargaining power of consumers and bargaining power of the suppliers: Switching cost is the main phrase in this aspect depending on this the consumers and the supplier of the company can chose to use or not to use the product or service. The bargaining power of the buyers is the ability of the consumers to change the company and avail the product from a rival company or can opt for a substitute as well (Indiatsy et al. 2014). For example: if a medicine composition is made by only one company and is not available anywhere else then the bargaining power of the buyer is low. On the other hand the suppliers also have a certain amount of bargaining power based on the exclusivity of the materials supplied to the company. This theory is important in competitive analysis as it gives an in-depth idea about the industry in which the company operates thereby, helping the company cope with the changing dynamics of the business. Strategic plan Priority# Objective Timeframe Responsible parties KPIs 1. Reduction of customer churn by 75% 12 months Marketing department Customer retention rates 2. Profit maximization 20% 12 months Marketing department Return On Capital Employed 3. Skill development and training of medical and administrative resource 18 months Human resource department Employee retention rates 4. To achieve 99% customer satisfaction 5 years Customer service department Customer feedback and complaints Customer churn occurs when customers stop availing the products or services offered by the organisation. This is a situation that occurs for companies that have been operating for a long time. The marketing team has to deal with this objective. The strategy that has to be implemented here is to engage more contemporary methods of marketing such as exploration of the digital space. The focus should be on Facebook as it allows direct customer feedbacks. Trust is a major issue in this sector and the company should encourage existing consumers to post positive feedbacks which will ensure validity and trust (Dahiya and Bhatia 2015). In order to increase the profitability by 20 percent in the next 12 months it is important for the marketing team to push the sales of the company. Sales promotion is an easy option but it also takes away some part of the profit as well hence, sales promotion will be a part of the process but then it will be followed by backing up the strategy that has been discussed above as the two objectives are linked with each other. The skill development process will be taken place based on the departments and within the departments it will be based on the teams. The division of the teams is significant as the production and the operation of the business is not hampered in the process of skill development. The time period that has been allotted will ensure that the development process is holistic and efficient (Eden and Ackermann 2013). Regardless of the industry in which the organisation is operating in, gaining customer satisfaction is one of the major objectives of the company; hence Health Focus is also trying to build a valued relation with the consumers in the long run. Reliability and trust is imperative to the health care industry, consumers are apprehensive when it comes to the health sector, consumption of any kind of product or service is undertaken by an individual in a very calculative manner. Hence the company should be focused on using the feedbacks form the customers for the purpose of marketing because it will generate a sense of trust and credibility for the company. The comments on the Facebook strategy can be used for this purpose as well. The company should work upon the customer care service in order to develop skills in improving the communication process as the people who are reaching out or the customer care as usually agitated and already having a bad experience, the experts in the customer care first should deal with the clients tactfully and make sure that the client becomes a repeat customer in the future with high quality service and support (Peppard and Ward 2016). The feedbacks that are received from the customers are valuable inputs for the points that the company should focus on while making decisions and creating policies in the future as it gives an idea about the needs and requirements of the company. Every organization in order to grow and develop should be open to changes for the betterment of the company. Creation of value relation with the customer is very important as it provides the company with valuable information for development (Rothaermel 2015). Validation of mission and vision of Health Focus The mission and vision of the company is to improve the quality of life of the people and in order to validate that the company is at par with this the company can invest in an internal monitoring an investigation team the reports of the team should be issued on an annual basis to the relevant stakeholders like the consumers, suppliers, employees etc. The company should have a transparent monitoring procedure which is available to the relevant stakeholders of the company (Eden and Ackermann 2013). Core values of the organisation Values and principles of an organisation form the foundation of the ethics that are followed in the company. The values can be developed in the process of operation as well, because with experience and learning the organisation grows on the basis of the acceptance of changes and dynamics of the business environment. The competitors are the basis on which the review process can be held by the company (Eden and Ackermann 2013). Reference Bull, J.W., Jobstvogt, N., Bhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zhringer, J. and Carter-Silk, E., 2016. Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework.Ecosystem services,17, pp.99-111. Dahiya, K. and Bhatia, S., 2015, September. Customer churn analysis in telecom industry. InReliability, Infocom Technologies and Optimization (ICRITO)(Trends and Future Directions), 2015 4th International Conference on(pp. 1-6). IEEE. Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage. Grant, R.M., 2016.Contemporary Strategy Analysis Text Only. John Wiley Sons. Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), 6478-6492. 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