This report analyzes the IT strategy of Mac electronic store and how It has contributed positively to the management of businesses. The management of businesses using IT helps in achieving efficiency and adding value to the organization. The report discusses an E-commerce business that ensures that the business is able to operate more efficiently. The report discusses the SWOT analyses of the business to determine strengths and weaknesses of the business by assessing the internal business environment. The business report also analyzes the organizational strategy, business strategy and IS strategy to determine the organization structure of the business and the model of business that the company is using. The report also evaluates a suitable social business strategy that will be used by the company to interact with the customers socially and the impact of social commerce on the business enterprise. The competitive strategies that Mac electronics will use in order to gin competitive advantage over its competitors are also analyzed and recommendations made on suitable strategies that should be applied. The business processes that will be followed in the website of this company are also analyzed together with the Business process Notation.
Mac electronic has highly qualified, talented and experienced workforce. This helps the company to be innovative and progressive in terms of technology. The young and talented workers help to bring, energy, creativity and hard work to the team of employees which helps in ensuring high rate of productivity in the company.
The business also enjoys a niche market which makes it easy for the company to market its products. The company controls niche market in development of software and electronics devices. Its advertising is made easy since the geographical coverage is very limited (Bien & Strous, 2010).
The company has good marketing strategies and marketing team. This has helped the Mac Electronic to grow rapidly over the years and becoming the electronic brand of choice among consumers.
Limited resources. The company’s resources are limited, both financial and materials. This makes it is difficult to execute growth plans and to implement all the strategies by the business.
The market for the company is small. This therefore means that the sales revenues for the company are little and as a result the company is financially unstable.
Absence of a wide product portfolio. Mac Electronic has only three products in its product portfolio and therefore, it becomes difficult for the company to compete in the market.
There is an opportunity for Mac Electronic to expand its market and market its products in all parts of Australia and even in surrounding countries.
0Mac should expand its product portfolio through innovation. The company should develop products such as TV, sets and mobile phones.
There is great opportunity for growth in the developing countries where the demand is increasing and the consumers are not so keen on brand value.
Established competing businesses are a threat to Mac Electronic since they have many competitive advantages that favor them in the industry.
Threat of fast changing technology which may make the products offered by the company obsolete so easily hence driving the company out of the market.
The IS triangle is a framework that explains the working of three different aspects of strategy in an organization. The IS strategy triangle explains that business strategy drives all other strategies in an organization. The organizational and Information system strategy depend upon the business strategy so that they can work effectively (Lytras, 2008). The changes in any of the above strategies will therefore affect the other two strategies and if any of them changes, adjustments have to be made to the others in order to maintain balance in the organization.
A strategy is defined as a coordinated set of actions that are aimed at achieving predetermined objectives. The mission of an organization is important when designing strategy so as to give the business a meaning and set the long term objective of the business. The mission statement of Mac Electronics is: To become the consumer brand of choice on consumer electronics globally while at the same time focusing on technological advancement and offering customers great value for their money. The vision of Mac Electronic is to grow rapidly and expand its product portfolio to cater for the needs of the consumer.
For Mac Electronics to compete effectively in the market, it needs to build a sustainable competitive advantage. The competition in the electronics industry is very intense and therefore the company needs to position itself in such away that it will be able to survive and grow in the market. Mac Electronics will use the differentiation strategy in order to gain a competitive advantage over its rivals. Since the company does not have huge financial resources, it will use this strategy to make unique products which will be attractive to the consumers. The differentiation will be in terms of both design and product features and specifications (John, 2012). The products by Mac Electronic will be superior in terms of both quality and appearance and therefore the company will gain a good reputation among consumers over time. The strategy is suitable for Mac Electronics since the company has talented and experienced staff that can create new product designs. The cost of implementing this strategy is also very low than other strategies. Mac Electronics should also use the strategy of consumer focus. The company should focus on the needs of the consumers and make sure that it fulfills the needs of consumers both in terms of products offered and services. The products have to meet the needs of consumers in terms of quality, ease of use, technology advancement as well as durability. By concentrating on the needs of the consumers, the company will be able to develop products that consumers need rather than develop then create demand (Hossler, 2007)
Mac Electronic should keep up with market trends and changes in terms of technology, pricing and designs. This strategy will help to ensure that the company adapts technology at an early stage so that it can maintain it market follower position in the market.
Mac Electronic should apply the competitive dynamics model by Jack Welsh. The destroy your business and Grow Your Business strategies will help Mac electronics to disrupt all the current processes and procedures in the organization and come up with new ways of reaching new customers and retaining existing customers.
This involves the design of the organization in terms of organizational structure and task allocation. The main objective of designing organizational strategies is to determine ways in which the goals can be achieved. Mac Electronics will apply the Diamond model which explains that an organizational plan composes of information, people, structure and Task (Chowa, 2010). The information/control aspect involves the communication within the organization. Mac electronics will have clear channels of communication to ensure effective communication in the organization. The people include the coordination of employees in an organization to maximize productivity. Tasks within the company will be assigned by supervisor and each department will have clearly defined roles and to ensure proper execution of task within the company. The following is a figure showing the diamond model.
This is the plan Mac Electronics will use to provide information services to customers. It is part of the process of implementing the Business strategy. The information systems strategy helps an organization to become efficient. The information system can be seen in four dimensions. These include;
Hardware. This are the physical component needed in an information system. They may include computers, routers, transmitters, smartphones and storage disks. The system of Mac Electronics consists of computer, laptops, routers, and information storage devices. The hardware used in the IS of Mac Electronic are modern and highly effective in execution of command.
Software. This is the list of programs, applications and utilities that help the hardware components to function. Mac Electronic has unique tailor made application that helps the company to manage its production system and inventory. The software of the company also helps to detect fault and errors during the manufacturing process to ensure quality and safety of products (Bharati, lee & chaudhury,2010). Mac also has a website to interact with consumers and market its products. Other software for the company includes social media application like Facebook.
Networking. This is an illustration of interconnection between hardware and software components of an information system. The networking of Mac Electronics connects the offices to the factory and the IT room. This helps in effective communication within the company.
Data. This is raw information that is collected in the system and processed to become useful information.
Mac Electronic will interact with consumers through social media sites. This will help to drive consumption for its products by marketing the company’s products to the masses. The social media sites such as Facebook and Twitter will be used by Mac Electronics to collect the views of consumers concerning products offered and recommendations for improvement (Burn, 2017). This will help the company to meet the needs of the consumer and to create customer loyalty.
Mac enterprises strategy on social issues and business involves collaboration with social IT companies such as Facebook, Twitter and Snapchat. This collaboration will help the company to market its product on a global scale. This will in turn help the company to increase sales and to increase brand value.
The use of social media technology will help the company to create a suitable environment for the employees. Through social media, the employees and other stakeholders of the company will be able to interact with one another and build a better understanding among themselves. This will build a culture of harmony and togetherness on matters concerning work and also other social issues outside workplace. This will help in increased productivity of the organization hence boasting performance.
Mac Electronics will involve its customers in making important decisions regarding products. The company will create a social platform where the customers of the company will be able to interact with one another and suggest ideas that would help improve products and improve services they receive from the company. The ideas generated will be considered during product re-development phase to ensure that the
Michael Porter competitive strategies include the Focus strategy, differentiation strategy and cost leadership strategy. Use of information technology can be used by an organization to achieve the cost leadership strategy since technology reduces cost for a company. The differentiation strategy can be made possible since information systems helps in developing new product designs and features (Murer, Bonati&Furrer, 2011).
The four primary components of a value chain can be made more efficient and effective through information resources. Technology in information systems in procurement of raw material for the business and in marketing and sales of products (Burn, 2017). Information resources are also important in operations of a company since they ensure proper coordination of tasks and activities.
This model emphasizes on using the resources available to a firm to gain competitive advantage. Information system resources are very important since they help an organization to maximize quality of goods produced and therefore providing competitive advantage.
The business process for Mac Electronics will begins with ordering of raw materials which are used for manufacturing the products. The procurement of materials required for manufacturing begins with identifying the need for raw materials in the organization.The second process is the manufacturing of products to come up with finished goods ready for consumption by the consumer.This involves quality assurance, blending and introducing the materials to the factory so that they can be manufactured. The process ends at the point where the finished goods are transferred to the finished goods inventory. This is followed by marketing and selling the finished product to the consumers. The selling and marketing involves activities and events such as sales promotion, offering free gifts to consumers,advertising and delivering the goods to the final consumer. Another important process in this company is that of human resource management. This involves events and activities such as identifying need for labor,advertising for vacant positions, recruitment,interviewing qualified candidates and hiring of employees. The process also involves compensation of employees,motivating employees, promotion and employee professional development as well as hiring and retiring the employees of the company.
The aim of developing a website for Mac Electronics is to enable the company to interact easily with customers. The website is also aiming at helping to provide existing and new consumers about the products offered by the company and all the other necessary information concerning the company. The website is targeting existing and prospective customers in all parts of the world since the website can be accessed from any area with a network coverage (Mellor,2011). The website will also help the consumers to buy goods on the website and give feedback on products consumed. The website will have features indicating the information about the company, products offered, mission, and vision and core values of the organization and the prices of various products by the company. The website uses the colors used in by the trademark and logo of the company and it is very attractive and easy to use.
Conclusion
Implementation of this information system plan for Mac Electronic will contribute to increased efficiency within the organization. The information systems will make processes easier and the execution of task by the employees will become simpler. The plan will help the company to design marketing and competitive strategies that fits the needs of the organization. The information system strategy is in line with the organizational strategy and this will ensure proper coordination of activities and processes in Mac Electronic. This plan contains an evaluation of the business processes. The plan will result to increased value for the organization and improved financial performance of the company.
References
Biene-hershey, m. E., & strous, l. (2010). Integrity and internal control in information systems: Strategic views on the need for control. Boston, ma, springer us. Http://dx.doi.org/10.1007/978-0-387-35501-6.
Burn, j. (2017). Information systems strategies and the management of organisational change: A study of… Interdependencies. [s.l.], open dissertation press.
Bharati, p., lee, i., & chaudhury, a. (2010). Global perspectives on small and medium enterprises and strategic information systems: International approaches. Hershey, pa, business science reference.
Chowa, c. K. (2010). Strategic information systems alignment: A longitudinal investigation. St. Louis, mo, university of missouri–st. Louis. Http://etd.umsl.edu/r4982.
Hossler, d. (2007). Building a student information system. San francisco, calif, jossey-bass. Http://rave.ohiolink.edu/ejournals/issn/02710560.
Italian association for information systems, d’atri, a., & sacca?, d. (2010). Information systems: People, organizations, institutions, and technologies. Heidelberg, physica-verlag. Http://public.eblib.com/choice/publicfullrecord.aspx?P=510611.
John l. Ward, j. P. (2012). Strategic planning for information systems. [place of publication not identified], john wiley & sons.
Mellor, r. (2011). Knowledge management and information systems. Palgrave macmillan. Http://www.myilibrary.com?Id=976863.
Murer, s., bonati, b., & furrer, f. J. (2011). Managed evolution: A strategy for very large information systems. Berlin, springer. Http://public.eblib.com/choice/publicfullrecord.aspx?P=645457.
Lytras, m. D. (2008). Emerging technologies and information systems for the knowledge society: First world summit on the knowledge society, wsks 2008, athens, greece, september 24-26, 2008 : Proceedings. Berlin [etc.], springer. Http://dx.doi.org/10.1007/978-3-540-87781-3.
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