Informations Management

Systems and Management Contents executive Summary The reports sets ab bug out assessing HA Loges current demarcation operation dickens in the UK and India, this d star by utilizing three analysis tools, SOOT analysis, cast analysis and Porters Fiver Forces analysis. From the SOOT analysis the reports upliftedlights several key points, which accommodates the possible of oerseas sales in emerging economies and the returnss of having manufacturing faculties in India.The lack of certain e-commerce and the poor utilization of cultivation engine room advances perk up been highlighted as one of the biggest weakness of HA Loges. The PESTLE analysis has come onn t eyelid while traditional consumer ( local anaesthetic councils) have less money to spend and sales whitethorn decline In the short name, the opportunities from a tonic Affluent Achievers foodstuff holds great promise. The proneness for going green In two social attitudes and giganticr surroundingsal laws is as strong an hazard that potentiometer be ill- utilise for HA Loges turn overs.Porters Five Forces has highlighted that panic of clean entrants is high because the En depict barrier is high as m each an(prenominal) competitors try to earn securities industry sh ar in the agate line of lane furniture. The negotiate power of buyers mains high collectable to councils act to get the lowest worth possible and high number companies who atomic number 18 sharing / or laborious to bow the same grocery storeplace. Threat of interfere outputs remains low because of the high saturation of competitors producing similar products. Bargaining power of suppliers is also low give thanks to the adduce of manufacturers plying highly competitive prices and low specialization at bottom the market.A immature IT portfolio has also been recommend for HA Loges to implement, this includes a accomplished extend of the current ageing IT dusts and immature website as long as an ale rt social media engagement. A impudent ERP is indispensable for HA Loges future and it has been recommended that gull be implemented across the participation and a innovative website that lead help enlarge sale within the Affluent Achievers market. The risks of implementing practic aloney(prenominal) changes has also been factored in and explored in details, with the potential of possible have it offs occurring, such as cater training and skills.The effect that the new portfolio leave have on both the suppliers and nodes of HA Loges has also been explored and in conjunction with the implementation timesh atomic number 18, has highlighted the need for a well organized and structured phasing to the new systems. The recommendation is that HA Loges c in all for a multi phased approach to implementing the new systems that includes a pre-stage of evaluation of staff and their cleverness to use the new systems and a comprehensive training program .This provideing be foll owed by a trial run of the new systems, a soft and partial changeover and then finally a collar switch to the new system, whilst keeping the old systems for 2-3 months as a backup. undermentioned the situational analysis of HA Loges current business and the assessment of its IT requirements, our recommendations on what HA Loges requires for the future will cede it to succeed ND grow into new markets and remain profitable for the following eld. 1 . Situational Analysis and Strategic worry 1. 1 . SOOT Analysts 1. . 1 Strengths As it quite a little be holdn from the supra table, H. A Logon &038 Sons, atomic number 18 in an favourous situation comp atomic number 18d to other(a) companies, peculiarly in the United Kingdom. The fact that the order was open since 1952 and has shown stability scotchally by means of time allows the opportunity to create a very all told and powerful name. The stag potential preciselyt joint allow immediate intricacy and consequenceover of the U. K market rely due to its relationship with the local councils and the existing top of tone product range they have.The market is growing and the low competition may allow the come with to become market leaders. The Polls group have conducted a market analysis which shows that a lot of the street furniture companies argon under immediate riskiness (Pillions, 2014). The possession of the Indian factory reduces the make up and provides a better advantage on the pricing of the products since they jakes be offered at lower prices. The weaknesses set forth in the SOOT analysis nates be fully exploited and used to the companys advantage.The creation of a website and use of social networking will allow easier market penetration and provide easier and make up effective means to pee-pee the target segmentations. It is however noneworthy that the relationship in the midst of the H. Q. In India and U. K should be worked on, as this can be beneficial to the client. Better organisational behavior would effectively mean a better working environment and consequently oft efficient production. The operations management could be well benefited from such a change. . 1. 3 Opportunities The opportunities created since the budget for immediate reformation came into world ar extensive in various agencys. By creating a fast(a) slogan, it will modify the enhancement of the companys image, thus gaining an advantage over other competitors, especially since the major clients of the investigating market atomic number 18 the councils. One can argue that here is no better focal point to spend the app bring up payers money to a native company with a lot of business relationship of consistent quality and relations.The Lugubrious University can be funded in PhD to offer extensive query on lead Lighting. Especially since LED discharge market is about to increase by 20% McKinney&038Company, 2012) and surpass 20 billion USED by 2020 (Technology, 2014). Biding may be done in the Chinese projects ready to be released in 2017. This is due to the fact that the Chinese government had a problem with the already installed LED Lighting and are expected to replace the visible radiation introduced. 0-15 to street lighting companies will be able to bid on the project (Magazine, 2007-2014). in that location is the chance to show the Chinese market with an upgraded and much than headmaster image. A to a greater extent environmental friendly approach will attract attention. 1. 1. 4 Threats Even though threats may not be originated from the immediate environment, a company that is trying to expand orbiculately needs to evaluate any potential threat worldwide. The growing expertise of U. S and China on LED lighting may be proven difficult to reach.However with effective research, the k directledge can be obtained and surpass the existing threats. There is growing competition in the Far East and these companies may be favored and correctly encoun tered. In conclusion, H. A Logon &038 Sons can expand in other markets such as the Chinese market. They can reach the market segmentation cockeyed achievers through proper(a) merchandise and anally they can even expand in the direction of street advertising with minimum costs notwithstanding great profits.This can be achieved because street furniture is already sold in the local councils. Advertising is a very powerful tool for expansion as it can provide instant change in profits and progress of the company. This idea is already exploited by Caduceus, a French company Caduceus, 2014) and the market is suspected to reach 35. 5 billion USED by 2016 (Edition, 2014). Key factors for this increase are arbitration, meliorating global economy and digital out of home advertising. 1. 2. PESTLE AnalysisTechnological Technological Improvements Companys disbursement on R (PhD) vex to newest technology Social Media ( reading &038 Usage) Socio-cultural Educational Level CEO friendly habit s crook into Charity Organizations 0 Corporate Social Responsibility (Eunice or other corporations) in the buff market Different culture faceal Culture (India Manufacture) nation growth Attitudes towards saving and investing Affluent Achievers Attitudes towards product quality and client service Political Government regulations Economic policies Tax policy sell restrictions Economic Inflation rateI-J is growing economically so more spending to normal products. (Business Economics) China ready to offer projects (LED lights? ) Exchange rates (entering global market) Fiscal policies (India) Growth rates Labor cost minimized employment flows and patterns (PhD) Environmental Recycling Waste management Attitude toward green or bionomical products Legal Law that affects the business environment in Asia Vs. law in the UK Industry specific regulations e-commerce From deducting a PESTLE analysis three major points can be derived and should be exploited. Firstly, countries nowadays are trying to be as CEO-friendly as possible.The CEO-friendly awareness is increasingly more popular, therefore the company should follow an environmental approach. By producing street furniture or more products in particular street lighting that indeed are environmental friendly, the company can attract buyers. Entering an CEO-friendly mode will show sensitivity company. Thus the councils will be more attracted to the companys products since they will benefit from the CEO-friendly approach. Secondly, the current recession is fading away and the coming years will be marked with an economic boom since England is recovering effectively from the economic crisis (Oxalate, 2013).The increase in income will provide increase in petition as there is a positive relationship between the two variables. This would inevitably mean that the market of the affluent achievers will also increase and this is the market that Loges should concentrate on. A report by the ALGA shows that between 2011 and 201 5 spending cuts will amount to 33% in current terms. It is clear to see that the previous strong consumer base in local councils may falter and as a source of revenue may not be growing, least not in the short term. thereof Loges should be more aggressive with contract bidding.This also leads to a auxiliary point that out cash flow in the short term maybe less and more opportunities must be sought out, as well as a better financing (Association, 2013). Thirdly, political factors are defined as political issues which can occur in the company, in the areas where the company is run, both nationwide and worldwide. The effect on business and legislation can be done by political changes and globalization. Government regulations, task policy and trade restrictions are the main factors that should be taken into notice.Finally, technology is rapidly developing, especially in countries as USA and China hat are more advanced in markets of LED lighting or even street advertising. By inve sting in technology and creating search and Development support teams, the company may expertise in LED Lighting sector and can increase its product range such as including interactive panels, which allow advertising to occur. The company may not be directly involved with the advertising but they can very sell or rent the panels to the local councils.The councils can choose whether to notify events or other companies for personal profit. The PESTLE analysis did not raise any flags to any legal concerns or any other offspring of the type. 1. 3. Porter five top executives The threat of new entrants is high. The company is a market leader in I-J and competitors abroad, bigger companies that have better technological equipment and are trying to earn market share in the business of street furniture. They also have better relationships with councils abroad, since Loges company has relationships mainly in UK and isnt established long enough abroad.Furthermore, these companies can take advantage of their bigger brand awareness and make agreements more easily than Lagans company. However, Supply -Side economies of scale are exploited for Loges since they own their supply factory. This spreads the fixed costs over more units. This deters entry by forcing the aspired entrant to come in the industry on a large scale production or accept a cost disadvantage. Finally incumbency advantages are independent of size. This effectively means that H. A. Loges are not easily threatened by potential entrants due to their geographical location Cobber, 2010).The bargaining power of suppliers is low. The company has the opportunity to collaborate with many manufacturers as suppliers, which allows the company to easily make an agreement with another supplier. There is sufficiency f raw materials, which doesnt allow suppliers to have monopoly on them. multitude buying can be used and this will solving in having discount in price during purchasing. The bargaining power of buyers i s high due to the large volume of business agreements between the company and the councils for a wide range of products. Failing at the negotiations with the councils can result in losing a wide range of business projects.Their high power gives them the allowance to force big money prices and the Loges company shall accept it since there is the threat of their competitors. The threat of substitute products is low. All companies in the street furniture business manufacture roughly the same products and there are no known substitutes. LED lights and panels could be characterized as substitute products, but there arent brought in the East Midlands market yet (assumption). In the case that the substitutes are considered high, Loges should distance itself from substitutes through product instruction execution and marketing.The threat of intense segment rivalry is high. In UK during the stick out years many companies were obliged to exit the street furniture market because of the econ omic crisis. The companies that survived Loges company), managed to dominate in the I-J market, but as it seems lately there is an increasing number of big companies from abroad that are trying to enter and invest in this market. Rivalry is especially destructive to profitability if it gravitates altogether to price because price competition transfers profits directly from an industry to its customers.The new market of affluent achievers will likely draw new entrants due to the chance of exploitation. Care should be considered to avoid the above statement. Although H. A Loges will be the first to enter they should do so in a manner that will allow them to establish their network with brand recognition, righteousness in customer service and price stability (E. Porter, 2008). 2. prosody,Kip At H Logan, attention has always been paid roughlyly to their financial poetic rhythm as opposed to the inputs that drive the numbers.In this section, other possible procedure prosody will be discussed according to the new proposed strategy plan. Financial metrics are like descriptive statistics and says just aboutthing unique about a characteristic of the whole body of data that might not be obvious from neertheless reviewing individual finance figures (Tax, 2009). Firms and management require an objective way to step performance so more lots than not, its easier to go straight into the result and forgetting to measure also what led to those results.Financial metrics are useful but shouldnt be used on its own because financial performance is a result or consequence of something else (Tax, 2009). Operating metrics are the inputs that gibe or drive the desired outcome, if more attention is paid to the operating metrics then financial outputs wouldnt be a big issue for the face. Examples of these operating metrics include customer satisfaction, customer repetition, customer referral rate, quality of product etc. This is the aspect of metrics this report will taper on (Tax, 2009). 2. 1 . New Proposed Strategy for H.Logan More friendly environmental products(CEO-friendly products) Exploitation of the Affluent Achievers market Investment in research and development team Extension/Reduction in product line comme il faut HER staff to deal with staff issues/concerns especially the issue between the Indian function and the WHQL Set clear goals and objectives Encourage customer and staff feedback executable reduction in staff from both branches(the I-J and India) and training the Taft removed from the office to become call centre staff where they can deal with customer enquiries, queries, complaints and orders (e-commerce) Pro fantasy of services, e. . Offering delivery and installation services etc. Website, proper marketing strategy Introduction of new IT software (SAP software) 2. 2. Potential New Metrics for H. Logan Metrics are used for a variety of reasons. Metrics such as market share, sales increases, margins, and customer satisfaction su rveys enable firms to take stock of where they are now and where they want to be in the future (Houses &038 Katz, 1998). Hauser and Katz, 1998 suggest that every metric will affect actions and decisions whether used mainly to influence behavior, to evaluate future strategies, or to take stock.An exalted metrics system should be tied to overall profit, apply to all employees and be designed to encourage extra effort, however if stretched to the limit can result in counter-productive actions. Relating these metrics back to H. Logan, below is an ideal nominate of what metrics should be measured in their company. Measurement of how their products and services are perceived in the market- this an be done by market research to limit if people view their products as high end sumptuousness or affordable but quality products etc.Measure how much these affluent achievers are willing to spend on lighting and how lots they purchase kinsfolk goods. Organization views it as well. Find out wh at the customers want- by measuring how often they repeat orders, refer the organizations products to their friends and family, or how often they cancel orders, and how many customers neer return to H. Logan to buy goods. The Voice of the Employee- this can be measured by finding out what the employees ant, what they value. This can lead to enabling employees make decisions and take actions that they know are going to be necessary to achieve their metrics-establish goals.A match score card system will be implemented in the next part to get fair balance of the new metrics to be measured. 2. 3. Balanced Scorecard A balanced scorecard is a strategic management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals (Kaplan &038 Norton, 2007). The balanced scorecard is a management system that enables organizations to illuminate their vision and strategy and translate them into action.It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exploit into the nerve centre of an enterprise. The balanced scorecard suggests that we view the organization from four-spot perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives which include The learning and growth perspective- This entails employee training and corporate cultural attitudes related to both individual and corporate self- improvement.It is the most essential foundation for the conquest of any organization. The business process perspective- this allows the managers to know how well their business is performing and if it matches their customer requirements. This system should be implemented by those who know the system privileged and out. The customer perspective-customer focus and perspective is authorised in any organization and most organizations are beginning to realize the importance of their customers. If customers arent satisfied, it is likely that they will find those suppliers/ organizations that satisfy them.So measuring what customers want and like the type of customers they are and the processes that need to be followed is essential. The financial perspective- this is the traditional way of measuring metrics but still useful in measuring the additional financial-related data, such as risk assessment The learning and Growth perspective The business process Perspective The customer The financial goals. Measurement of how much the affluent achievers are willing to spend on lighting ND how often they purchase household goods.Measurement of how their products and services are perceived in the market place by carrying out a market research to determine if people view their products as high-end luxury or affordable but quality products etc. Do the consumers view the products attributes as the same attributes the organization views it as well. Find out what the customers want by measuring how often they repeat orders, refer the organizations products to their friends and family, or how often they cancel orders, and how many customers never return to H.A. Loges to buy goods. How much is available to spend on the new strategy and development. If there isnt adequate funding, how will the organization source for funds. How much profitability lies in the development of the new developments/ strategy/plan. Measurement of how much the new systems will cost and how to priorities the funding of the new system. Measurement of the cost of training staff, R costs and risk assessment. Measurement of the cost of marketing and developing new website. . Portfolio of Systems 3. 1 . Portfolio Enterprise Resource Planning can be crucial to a business, especially one as out- go out as this. As in any o ther business, processes essential to its success include inventory and order management, accounting, human resources and customer relationship management. At its most basic level ERP Software integrates these various functions into one complete system to streamline the process and information across the entire organization (Devonshire, 2014).First and world-class the company needs to invest in the current website as it is over 10 years old. In todays technological age, online content is more vital than ever so as not to fall behind. The Internet is the way most potential customers will search for H. A Logon &038 sons and if market emphasizes their greater need to invest in this part of the business. Loges finds itself under intensive mash from new competition abroad, so they must have some sort of product differentiation to really show prospective customers what they are all about.They should also look to add a separate section to the website specifically for the home solutions potential market. They are what kept the business going when their competitors disappeared and it fits in very well with the strategy to exploit the Affluent Achievers market. This is a new market opportunity and one that must be seized so H. A Logon &038 sons can progress to the next level. Due to the cost and long-term alimony of the website, it would be appropriate to outsource the website production and maintenance too professional company.The company will also need to invest in new IT systems because what exists has been running for over 35 years and has become increasingly unstable. It is important to realize that an ERP system that is not the right fit tends to weigh down the entire organization (lyre, 2012), this is why we have taken special care in narrowing down possible systems the company could use such as visionary, Sage and SAP. Oracle represents more of an integrated system, while Sage vainglory themselves on the ease of use but the most suitable system for H. A Lo gon &038 Sons is the SAP business objects solutions system.This we believe brings a far more holistic process to the table and helps solve some of the problems they have now and reduce the overall cost that comes with implementation. SAGE and Oracle might be better at certain aspects but the SAP system is more consistent across the board as the feature analysis (table 1 below) depicts. The evaluation of the ERP process must consider usability as a captious success factor (lyre, 2012) and this is what the SAP system ensures. It provides an intuitive means to unify the information that business users need for their daily activities.It eliminates the need to access multiple applications, providing applicable information form a central location. This as we can see will already eliminate the problem the company has had over the years where they have to input the same data several times because some systems arent integrated. It comes with Large Scale information distribution, which is v ery useful as the company has bases in both England and India. This helps because the platform supports distribution of content o up to 1 million recipients and allows the workers have all they need available to them.The most important integration this system brings is helping the company make decisions based on the whole picture. As mentioned earlier, ERP integrates many aspects such as HER, operations etc. The problem with this is that we tend to gain individual views based on these aspects but the SAP system gives a unified view of the businesses and enables its users to gain fresh new perspectives. Using the Package approach is beneficial as its cheaper and can be tailored to the needs of the company. Weightings SAP SAGE Oracle