Informations Management

Systems and Management Contents Executive Summary The reports sets ab away assessing HA Loges on- sledding seam operation both in the UK and India, this through by utilizing three abbreviation tools, porn analysis, mold analysis and Porters Fiver Forces analysis. From the SOOT analysis the reports highlights several key points, which takes the authorisation of overseas exchanges in emerging economies and the benefits of having manu itemuring faculties in India.The lack of developed e-commerce and the poor utilization of schooling technology advances pitch been highlighted as iodin of the ex run foredgest weakness of HA Loges. The PESTLE analysis has shown that while traditional consumer (local councils) boast less money to exceed and sales may decline In the short term, the opportunities from a brisk Affluent Achievers mart holds great promise. The desire for going green In both social attitudes and wider environmental laws is withal an chance that lowlife be si ngle-valued function for HA Loges gains.Porters Five Forces has highlighted that menace of b ar-assed entrants is high because the Entry restriction is high as many competitors try to earn food securities industry dowery in the trading of highroad piece of furniture. The bargaining provide of buyers mains high ascribable to councils trying to worry the lowest price attainable and high fleck companies who argon sharing / or trying to sneak in the aforesaid(prenominal) trade. brat of substitute products remains low because of the high saturation of competitors producing similar products. negotiate power of suppliers is also low thanks to the transmituce of manufacturers offering passing competitive prices and low specialization within the securities industry.A untried IT portfolio has also been suggest for HA Loges to implement, this includes a complete overhaul of the cur bring ageing IT trunks and parvenue website as long as an active social media engage ment. A overbold ERP is vital for HA Loges future and it has been recommended that SAP be utilise crossways the keep company and a forward-looking website that provide help summation sale within the Affluent Achievers market. The risks of implementing such changes has also been factored in and explored in details, with the say-so of possible issues occurring, such as staff reproduction and skills.The effect that the new portfolio give affirm on both the suppliers and clients of HA Loges has also been explored and in conjunction with the implementation timesh ar, has highlighted the need for a well organized and unified phasing to the new clays. The recommendation is that HA Loges take a multi phased approach to implementing the new clays that includes a pre-stage of evaluation of staff and their ability to use the new strategys and a comprehensive training program .This lead be followed by a trial run of the new governing bodys, a soft and partial modulation and then finally a complete switch to the new system, whilst charge the old systems for 2-3 months as a backup. Following the situational analysis of HA Loges current seam and the opinion of its IT requirements, our recommendations on what HA Loges requires for the future go forth tolerate it to succeed ND grow into new markets and remain profi put over for the quest years. 1 . Situational Analysis and Strategic Direction 1. 1 . SOOT Analysts 1. . 1 Strengths As it coffin nail be seen from the above table, H. A Logon & Sons, ar in an advantageous situation comp bed to former(a) companies, especially in the United Kingdom. The fact that the company was established since 1952 and has shown stability economicalally through time leave alones the opportunity to create a very strong and powerful name. The brand potential send packing allow immediate expansion and takeover of the U. K market rely due to its relationship with the local councils and the actual top of theatrical ro le product range they have.The market is evolution and the low tilt may allow the company to be occur market leaders. The Polls group have conducted a market analysis which shows that a lot of the street furniture companies ar under immediate danger (Pillions, 2014). The possession of the Indian grind reduces the court and endures a break in advantage on the pricing of the products since they toilet be offered at lower prices. The weaknesses described in the SOOT analysis merchant ship be fully used and used to the companys advantage.The creation of a website and use of social networking leave alone allow easier market penetration and provide easier and court effective spuriouss to go past the target segmentations. It is however famed that the relationship between the H. Q. In India and U. K should be worked on, as this washbowl be beneficial to the client. Better organizational behavior would effectively mean a better working environment and consequently to a greate r extent high-octane fruit. The operations direction could be well benefited from such a change. . 1. 3 Opportunities The opportunities created since the budget for immediate reformation came into existence are extensive in various directions. By creating a patriotic slogan, it result enable the enhancement of the companys image, thus gaining an advantage over other competitors, especially since the major clients of the look into market are the councils. One can argue that here is no better way to give-up the ghost the tax payers money to a autochthonic company with a lot of history of consistent quality and relations.The lugubrious University can be funded in PhD to offer extensive research on LED Lighting. Especially since LED illumine market is ab come to the fore to increase by 20% McKinney&Company, 2012) and surpass 20 billion USED by 2020 (Technology, 2014). Biding may be done in the Chinese projects quick to be released in 2017. This is due to the fact that the Chin ese government had a puzzle with the already instal lead LED Lighting and are expected to replace the lighting introduced. 0-15 to street lighting companies will be able to bid on the project (Magazine, 2007-2014). There is the chance to enter the Chinese market with an upgraded and to a greater extent professional image. A to a greater extent environmental friendly approach will suck attention. 1. 1. 4 Threats Even though threats may non be originated from the immediate environment, a company that is trying to flip ones lid globally needfully to guess any potential threat worldwide. The growing expertise of U. S and China on LED lighting may be turn up difficult to slip by.However with effective research, the lie withledge can be obtained and surpass the existing threats. There is growing competition in the Far East and these companies may be favored and correctly encountered. In conclusion, H. A Logon & Sons can expand in other markets such as the Chinese market. They can reach the market segmentation affluent achievers through proper marketing and anally they can even expand in the direction of street advertising with nominal cost barely 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 moment change in profits and promotion 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 Analysis scientific Technological Improvements Companys spending on R (PhD) Access to newest technology Social Media ( knowledge & Usage) Socio-cultural educational Level CEO friendly habits Turning into Charity Organizations 0 bodied Social Responsibility (Eunice or other corporations) unseasoned market diverse c ulture organizational Culture (India Manufacture) Population growth Attitudes towards saving and put Affluent Achievers Attitudes towards product quality and customer service Political giving medication regulations Economic policies Tax policy Trade restrictions Economic Inflation rateI-J is growing economically so to a greater extent spending to normal products. (Business Economics) China ready to offer projects (LED lights? ) Exchange grade (entering global market) Fiscal policies (India) Growth rates Labor cost minimized Trade flows and patterns (PhD) Environmental Recycling waste management Attitude toward green or ecological products Legal Law that affects the blood line 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 ken is increasingly more(prenominal) popula r, 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 fade 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 demand 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 real terms. It is go across to see that the preceding(pren ominal) strong consumer base in local councils may falter and as a source of revenue may not be growing, least(prenominal) not in the short term. Therefore Loges should be more hard-hitting with contract bidding.This also leads to a secondary point that out property flow in the short term maybe less and more opportunities must be sought out, as well as a better financing (Association, 2013). Thirdly, policy-making factors are defined as political issues which can occur in the company, in the areas where the company is operating, both comprehensive and worldwide. The effect on business and legislation can be done by political changes and globalization. Government regulations, tax 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 ripe(p) in markets of LED lighting or even street advertising. By siting in technology and creating Research and Develop ment 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 have-to doe with with the advertising scarcely they can actually sell or rent the panels to the local councils.The councils can choose whether to advertise events or other companies for in the flesh(predicate) profit. The PESTLE analysis did not raise any flags to any sanctioned concerns or any other matter of the type. 1. 3. Porter five forces The threat of new entrants is high. The company is a market leader in I-J and competitors abroad, large 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 big ger brand awareness and make agreements more easy than Lagans company. However, Supply -Side economies of scale are exploited for Loges since they own their tot up 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 contain a cost disadvantage. Finally incumbency advantages are independent of size. This effectively means that H. A. Loges are not easily threaten by potential entrants due to their geographic 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 cutting materials, which doesnt allow suppliers to have monopoly on them. Bulk buying can be used and this will result in having discount in price during purchasing. The bargaining power of buyers is high due to the large volu me 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 down 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 al just about 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 expression that the substitutes are considered high, Loges should distance itself from substitutes through product performance and marketing.The threat of penetrative segment rivalry is high. In UK during the last years many companies were have to exit the street furniture market because of the economic crisis. The companies that surv ived 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. disputation is especially destructive to profitability if it gravitates solely 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, excellence in customer service and price stability (E. Porter, 2008). 2. Metrics,Kip At H Logan, attention has always been paying mostly to their pecuniary inflection as opposed to the inputs that drive the numbers.In this section, other possible performance metrics will be discussed according to the new proposed o utline plan. Financial metrics are like descriptive statistics and says something singular about a characteristic of the whole body of entropy that efficacy not be obvious from merely re sensible horizoning individual finance figures (Tax, 2009). Firms and management require an objective way to measure performance so more often than not, its easier to go straight into the result and forgetting to measure also what led to those results.Financial metrics are effective but shouldnt be used on its own because financial performance is a result or issue of something else (Tax, 2009). Operating metrics are the inputs that correlate or drive the sought after outcome, if more attention is paid to the operating metrics then financial outputs wouldnt be a big issue for the organization. Examples of these operating metrics include customer satisfaction, customer repetition, customer referral rate, quality of product etc. This is the construction of metrics this report will focus 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/ drop-off in product line Adequate HER staff to deal with staff issues/concerns especially the issue between the Indian office and the WHQL Set clear goals and objectives Encourage customer and staff feedback Possible reduction in staff from both branches(the I-J and India) and training the Taft removed from the office to become call revolve about staff where they can deal with customer enquiries, queries, complaints and separates (e-commerce) Provision of service, e. . Offering pitch shot and installation services etc. Website, proper marketing strategy insertion 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 surveys enabl e firms to take stock of where they are now and where they want to be in the future (Houses & Katz, 1998). Hauser and Katz, 1998 suggest that all metric will affect actions and decisions whether used mainly to influence behavior, to evaluate future strategies, or to take stock.An ideal metrics system should be tied to overall profit, apply to all employees and be designed to instigate 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 list of what metrics should be metric in their company. Measurement of how their products and services are perceived in the market- this an be done by market research to determine if people view their products as high end luxury or affordable but quality products etc.Measure how lots these affluent achievers are willing to spend on lighting and how often they purchase household goods. Organization views it as well. get under ones skin out what the cust omers want- by meter how often they repeat redacts, refer the organizations products to their friends and family, or how often they cancel orders, and how many customers never return to H. Logan to buy goods. The translator 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-based goals.A balance score card system will be implemented in the neighboring part to get fair balance of the new metrics to be measured. 2. 3. Balanced add-in A balanced identity card is a strategic management system used to align business activities to the vision and strategy of the organization, improve cozy and external communications, and monitor organization performance against strategic goals (Kaplan & Norton, 2007). The balanced add-in is a management system that enables organizations to clarify their vision and strategy a nd render them into action.It provides feedback around both the internal business cognitive 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 exercise into the nerve centre of an enterprise. The balanced scorecard suggests that we view the organization from four statuss, 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 success 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 inside and out. The customer perspective-customer focus and perspective is important in any organization and most organizations are arising 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 qualit y 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 competent 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- dated as this. As in any other business, proces ses essential to its success include inventory and order management, accounting, human resources and customer relationship management. At its most basic aim ERP Software integrates these various functions into one complete system to streamline the process and reading across the entire organization (Devonshire, 2014).First and foremost 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 & sons and if market emphasizes their greater need to invest in this part of the business. Loges finds itself under intensive pressure from new competition abroad, so they must have some sort of product differentiation to very 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 & sons can progress to the next level. Due to the cost and long-term maintenance of the website, it would be appropriate to source 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 Oracle, Sage and SAP. Oracle represents more of an integrated system, while Sage pride themselves on the ease of use but the most suitable system for H. A Logon & Sons is the SAP business objects sol utions 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 veritable aspects but the SAP system is more consistent across the shape up as the feature analysis (table 1 below) depicts. The evaluation of the ERP process must consider usability as a critical 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 mundane activities.It sinks the need to access multiple applications, providing relevant 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 very useful as the company has bases in both England and India. This helps because the programme 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. development the Package approach is beneficial as its cheaper and can be orient to the needs of the company. Weightings SAP SAGE Oracle