Managing Information Systems And Challenges In Multinational Corporate Evolution
Sensitivity Issues, Opportunity/Threat, Rating
|
Element |
Particulars |
Sensitivity Issues |
Opportunity/ Threat |
Rating |
|
P |
The coca cola products are maintained based on the rules and the standards that are being laid by the legislations. |
The change in the established rules and legislations of the nations where the company operates and distributes affects the functioning of the organization in the market |
It acts as a threat for the company’s growth |
2 |
|
E |
The huge financial and economic resources have helped the company in entering the construction industry. |
Acquiring the plots and the spaces from the people through the implementation of huge financial resources without proper negotiation |
It acts as an opportunity |
7 |
|
S |
The company is facing competency in the international markets based on the preference and the tastes of the customers. |
The lack of awareness among the people due to the evolving industrial background of the organization |
It acts as a threat for the organization |
5 |
|
T |
Machinery that is being used by the company ensured the productivity of the organization in the market. It has helped in increasing the productivity with a keen eye on redeeming the quality of the Construction. |
Obsolete machinery might affect the structure of the buildings which might affect the wellbeing of the customers of the organization. |
It can be taken as a threat |
2 |
|
E |
Water accessibility is one of the major aspects that affect the productivity of the organization in the market. On the other hand, the proper supply of the raw materials that are required for construction is to be managed in order to ensure the smooth functioning. |
The abrupt functioning of the organization will be affecting the trust and the loyalty of the customers. |
It is a threat for the organization |
4 |
|
L |
The company reserves all rights relating to the constructions undertaken by the same. The patent and the legislation of the company are based on the strict adherence to the decisions that are taken by the management of the organization. |
The rights and the patents that are held by the organization might bring in discontent among the other builders and the society. |
It is again a threat for the organization |
6 |
|
Risk |
Effect on the company |
Mitigating factors through PRAM |
Rating |
|
Sourcing of the raw materials |
Lower productivity |
Immediate response– In order to facilitate the smooth functioning of the organization, the company might undertake a survey and thereby collect the responses from the suppliers relating to the inconvenience. |
5 |
|
Indirect competitors in the market |
Tough competition |
Forming a contingency report and evaluation of the competitive and the capability analysis of the organization for sustaining in the market |
3 |
|
Financial capabilities |
The lag in the financial capabilities might drown the cause of the project in the market |
Undertaking internal and the external audits helps in determining the costs that might be incurred by the organization while undertaking the change |
7 |
|
Power of outsourcing |
The lack in the power of outsourcing of the functions affects the smooth functioning of the organization in the market |
Determining the different scopes of getting the processes outsourced in the market and the different channels of getting the task outsourced helps in determining the change that is being undertaken by the organization in the market. |
6 |
|
Risk due to malfunctioning of the processes |
Functionality risk and improper functioning of the business |
The proper determination of the different aspects of the change that is being undertaken by the organization must be synchronized with the capabilities of the organization to bring in the transition. |
9 |
|
Creating brand awareness |
Quality management |
Customer service |
JUSTIFICATION |
||
|
Protection |
4 |
0 |
0 |
0 |
It helps in maintaining the sustainability of the organization in the market |
|
Effective Financial Structure
|
0 |
0 |
7 |
0 |
Financial structure of the organization facilitates it in providing the best services to the clients |
|
Asset Quality
|
0 |
8 |
0 |
0 |
The quality of the asset helps in determining the quality of the products and their management that is being undertaken by the organization. |
|
Rates of Return and Cost
|
0 |
5 |
0 |
0 |
The profitability of the organization is based on the proper management of the quality of the constructions and the customer satisfaction. |
|
Liquidity |
0 |
0 |
6 |
0 |
The liquidity of the assets and the other elements helps the organization in providing the customers with the desired services. |
|
Sings of Growth
|
0 |
0 |
0 |
9 |
The growth of the organization is based on the customer feedbacks through which the company can bring in improvements in the structure and the functioning of the organization. |
The selected option is Customer feedback.
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Resources and capabilities |
Financial, technological assets and human resource |
Suitable |
6 |
|
Importance of resources |
It helps in ensuring the proper functioning of the organization |
Suitable |
7 |
|
Importance of the resources in the strategy formation |
The resources helps in understanding the capabilities of the organization |
Suitable |
5 |
|
Improvement in the competitive advantage |
The proper allocation of the resources helps in determining the progress of the organization |
Suitable |
3 |
|
Other company resources |
An evaluation of the resources of the other companies helps the concerned company in bringing in modifications in the usage of the resources |
Suitable |
7 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Innovative capability |
Huge financial resources |
Suitable |
2 |
|
Truly competitive |
Huge competitors in the market |
Not Suitable |
7 |
|
Substitutability |
Substitute constructors are available in the market |
Suitable |
6 |
|
Appropriability |
Based on the needs of the people |
Suitable |
8 |
|
Durability |
The quality of the construction helps in determining the durable nature |
Suitable |
3 |
|
Imitability |
The competitors might imitate the product |
Suitable |
9 |
|
Prior or acquired resources |
Huge acquisition of the resources |
Suitable |
7 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Stories |
People are made aware of the new venture that the coca cola company is undertaking |
Suitable |
5 |
|
Symbols |
The logo of the organization and the other possible symbols for making the people aware of their venture |
Suitable |
6 |
|
Power structures |
Management board and the CEO of the company undertakes the decision for growth of the organization |
Suitable |
3 |
|
Organizational structure |
The hierarchy of the corporate culture is being followed by the organization for maintaining the proper functions |
Suitable |
8 |
|
Control systems |
Autocratic governance in the systems |
Suitable |
7 |
|
Routines and rituals |
Sales achievement and the prolonged customer service adhering to the feedbacks |
Suitable |
9 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Providing low budget buildings |
Helps in attracting the attention of the customers |
Suitable |
6 |
|
Ensuring the quality of the constructions |
Retention of the customers |
Suitable |
5 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Employees |
Motivated workforce of the organization and retention |
Suitable |
5 |
|
Shareholders |
Returns on the investments |
Suitable |
7 |
|
Banks |
Increase in the financial activities |
Suitable |
10 |
|
Customers |
Proper services |
Suitable |
8 |
|
Suppliers |
Engagement of the huge supplies |
Suitable |
9 |
|
Government |
Improvement in the standard of living |
Suitable |
6 |
|
Managers |
Financial and non-financial rewards |
Suitable |
2 |
The steps that are being take by the organization has helped in the understanding of the various aspects of the improvements in the culture and the functioning of the organization. In terms of capabilities the company can always afford the change with a financial capital of US$ 60.7 billion. The change in the line of product that is being manufactured by the organization will be supported by the return on the investments.
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Customer driven strategy of the organization |
The customer driven strategy of the organization has helped in the understanding the needs of the customers and thereby frame the policies of the organization (Schiederig, Tietze and Herstatt 2012) |
Suitable |
5 |
|
Market positioning |
The market positioning of the organization has helped in improving their brand equity |
Suitable |
4 |
|
Customer relationships |
Creating good customer relationship while marketing their new product launch will be helping the organization in enhancing the scope of their business |
Suitable |
7 |
|
Company reputation and branding |
The company reputation is based on the customer satisfaction and the retention of the same |
Suitable |
6 |
|
Organizational culture |
The organizational culture helps the organization in maintaining the market orientation. |
Suitable |
3 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Green approach |
The company undertakes the eco-friendly approach in order to facilitate their undertakings based on the legislations |
Suitable |
2 |
|
Customer considerations |
Satisfaction of the customers through the determination of the demands and the monitoring over the quality of the product and the services offered by the organization |
Suitable |
5 |
|
Considerations of the society |
Uplifting the social standard of living through their activities |
Suitable |
8 |
|
Creation of employment |
The expansion of the company in the international markets and the huge financial resources of the same has helped in ensuring the creation of employment by the organization |
Suitable |
10 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Human capital |
The proper management of the human capital has helped the organization in maintaining the position in the market. On the other hand, the proper assessment and monitoring over the functions of the human capital has helped the organization in enhancing their productivity. |
Suitable |
5 |
|
Structural capital |
The internal structural capital of the organization has helped the same in maintaining the balance in the customer expectations and the result or the output. The balance has helped the organization in maintaining the proper understanding of the different aspects of the change that is being undertaken by the organization. |
Suitable |
4 |
|
Consumer capital |
The consumers are the major capital of the organization, which helps the organization in bringing forth the change in the systems and the functioning of the organization through the feedbacks (Hill, Jones Schilling 2014). On the other hand, the company being customer centric in nature, the customers form the most important part of the system of change. |
Suitable |
7 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Supplier dominated firms |
The technical change is being undertaken and facilitated by the suppliers of the company. The proper understanding of the different aspects of the change that is being undertaken by the organization has helped in the understanding of the different aspects of the development |
Suitable |
6 |
|
Information technology |
The proper integration of the company with the IT has helped the organization in making themselves available to the consumers. On the other hand, it will be helping the organization in making the people aware of the change that is being planned by the organization in the market (Birkinshaw 2016). |
Suitable |
5 |
|
Involvement of modern technologies |
The involvement of the modern technologies like the application of the robots where human labour seemingly fails to be perfect has helped the organization in making its progress in the markets based on the quality of the constructions |
Suitable |
7 |
|
Elements |
Observations |
Suitable/ Not suitable |
Rating |
|
Elimination |
The facilities that are being offered by the company might not be at par with the requirements of the customers and therefore, the company is required to eliminate the factors that are not required by their clients. |
Suitable |
6 |
|
Reduction |
The reduction of the discrepancies that are associated with the functioning of the organization in the market. |
Not Suitable |
5 |
|
Raising |
The company must take steps for raising the understanding of the needs of the customers and thereby adhere to the changes that are desired by the customers of the organization. |
Suitable |
3 |
|
Creation |
The strategies that are being undertaken by the organization has helped the organization in making its expansion in the global markets. |
Suitable |
5 |
The return on the investments that would be undertaken by the organization will be twice over the other investments that are being undertaken by the organization. The understanding of the profitability of the organization with the change in the offerings is being assessed in this part of the analysis.
Capital Investment Required
The huge financial funds of the organization have helped the same in undertaking the venture based on its objectives of expanding its line of business in the international markets.
Projection of cumulative profits (based on strategic choices)
The cumulative profits of the organization and the high return on the investments have helped the organization in maintaining a steady standard in the international markets. The profitability of the organization ion its line of business is evident through a study of their earnings in the balance sheet, which reflects an amount of $ 8.6 billion.
Working Capital Requirements
The company requires working capital for the proper undertaking of the steps and the procedures for the joint venture. The working capital of the organization will be helping the organization in making a growth through the smooth functioning of the same.
Tax Liabilities and Dividend Payments
The company is paying off their regular tax and that could be assessed through a thorough evaluation of their balance sheet data. On the other hand, the company pays off a high rate of dividend which portrays the situation of the company in its market.
Number of current employees? Redundancy? Is the company over-staffed?
The number of employees in the organization is 123,200 according to a report published in the year 2016. The proper utilization of the workforce has helped in the growth and the expansion of the business in the market.
New technical skills; new plants, etc
The efficiency in the technical skills will be helping the organization in making its fast progress. The new technologies include, the new machineries and a skilled workforce for achieving their objective. On the other hand,. The company will be requiring a new plant for undertaking the change in their systems.
The Coca-Cola Products Maintained Based on Legislations
New products and how they are to be developed (Ansoff Matrix)
In the second quadrant of the Ansoff Matrix a diversity of the products that are being manufactured by the organization can be related. In this context, the company has undertaken a joint venture with the Home depot for constructing low cost houses for the people based on their requirements. However, the coca cola company is known for its beverages but the new venture that the company is undertaking is based on the financial strength of the company to enter into the construction industry.
Amount and timing of market investment
The amount that might be required by the company while undertaking the venture is based on the part of its functionality. The investments that are being made by the organization is determined by the various aspects of the change that the company aims at attaining through the joint venture. On the other hand, the time that will be required while undertaking the procedure is based on the effectiveness of the steps taken for the venture.
Possibility of acquisition, merger, joint venture, etc
The company has undertaken a joint venture with the Home Depot for undertaking their new expansion of business into the construction industry.
Communication of ideas to all those involved
The company has taken steps to communicate the ideas of the joint venture and their change in the undertakings through handouts and emails for making the employees aware. On the other hand, the company has taken steps to upgrade their social media appearance in order to make the customers and the people aware of the change in the undertakings of the organization.
4-point checklist on external feasibility
How will the customers respond to the strategies being proposed?
The strategies that are being proposed by the organization will be helping the organization in making their improvement in the market (Völter et al. 2013). On the other hand, the strategies will be serving the purpose of the customers. Therefore, they would rather be surprised and happy to receive the services that are being provided by the organization.
How will the competitors react? Do the company has the necessary resources to respond?
The competitors of the company would not be expecting a beverage company to enter the construction industry’s market and therefore they would be stunned by the company’s approach of expanding its business.
Does the company have the necessary support from our suppliers ?
Huge Financial and Economic Resources Helped the Company in Entering the Construction Industry
The suppliers of the company and the partner of the same have undertaken steps to participate and join hands with the company in undertaking their venture for growth and expansion of their business.
Does the company need government or regulatory approval? How likely is this?
The company will be requiring the approval of the government in order to work smooth on the venture that is being planned by the organization for its growth and expansion.
The cash flow analysis of the company has helped in the understanding of the profitability of the organization in the market. The proper understanding of the profitability of the organization is better determined through the cash flow analysis of the organization. the various channels through which the cash got into the system has helped in facilitating functions of the organization.
Coca Cola Construction company is deemed to attain break even at the end of two years. Break even analysis for the company is conducted under:
|
Break even analysis |
|
|
Monthly units in break even |
1222 |
|
Monthly sales break even |
$ 397, 262 |
|
Assumptions |
|
|
Average revenue per unit |
$ 325 |
|
Average variable cost per unit |
$ 248 |
|
Anticipated monthly fixed cost |
$ 94, 035 |
Cash flow of the Coca Cola Construction Company is deemed to attain profits from its operating activities, investing activities and financing activities. Net change in the cash and cash equivalents can also be observed in the company for profitable business operation in the upcoming years.
Consistent innovation that is being undertaken by the management has helped the same in outnumbering the competitors in the market. The cash flow and the determination of the financial capabilities of the organization is determined through the analysis of the feasibility.
|
Strengths · Customer loyalty · Vast global presence (Johnson 2016) · Distribution networks of the company |
Weaknesses · Competitors in the market · Low diversification of the products · Management of water |
The implementation of the e-commerce will be helping the organization in the proper management of the resources and thereby keeping the customers aware of the change that is being undertaken by the organization in the market.
The age and the environment of the company has helped the same in the expansion of the size of the enter price in the market (Galliers and Leidner 2014). It has helped the organization in maintaining the sustainability in the market.
The basic implementation process is based on the understanding of the strategy and the analysis of its fit in the organizational structure and situation (Baden-Fuller and Haefliger 2013). It helps in understanding the various aspects of the change that is being undertaken by the management of the organization in order to bring in its progression.
The company has taken steps to monitor over the achievement of the project objective and control their functioning through the formulation of the various policies (Zott and Amit 2013). It will be helping the organization in maintaining a balance in the inputs and the outputs and thereby maintain profitability of the same.
The company has undertaken the eco-friendly approach in order to make their functions more viable. It has helped in the understanding of the various aspects of the change that is being undertaken by the organization.
The change that is being undertaken by the organization is based on the effectiveness of the steps and the improvements that are being planned by the organization for its line of business.
The leadership that might be undertaken by the organization is authoritarian style, which has helped in the proper understanding of the steps required to be taken by the organization for planning and implementing the change.
The business plan that is being undertaken by the organization is based on their requirement of entering the construction industry. The shift in the industry has helped in determining the various aspects of the change that is required to be undertaken in the company structure
The implementation of the business plan is an important aspect of the change that the company is aiming to incorporate in its structure and functioning. It has helped the organization in bringing forth improvements in the systems of the organization.
References
Baden-Fuller, C. and Haefliger, S., 2013. Business models and technological innovation. Long range planning, 46(6), pp.419-426.
Birkinshaw, J., 2016. Multinational corporate evolution and subsidiary development. Springer.
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Schiederig, T., Tietze, F. and Herstatt, C., 2012. Green innovation in technology and innovation management–an exploratory literature review. R&d Management, 42(2), pp.180-192.
Völter, M., Stahl, T., Bettin, J., Haase, A. and Helsen, S., 2013. Model-driven software development: technology, engineering, management. John Wiley & Sons.
Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for strategic analysis. Strategic Organization, 11(4), pp.403-411.