University Of New Brunswick Information Technology & E-Business MBA 6106 Case Study report On Value Chain and IT Transformation at Desko Submitted By Sharath Chandra Maddur Instructor Dr. Rebecca Angeles Winter 2013 April 18, 2013 1 a) Business Strategy and IT Strategy: Recommend an improved or new business strategy and its supporting IT strategy to Desko Business Strategy: A Business strategy is a plan articulating where a business seeks to go and how it expects to get there. It is the means by which the business communicates its goals [1]. Desko’s business strategy, at the moment, seems to be impaired by a lack of proper understanding of current market scenario and an unpreparedness of the firm in dealing …show more content…
Differentiation, in which the firm tries to make a unique product and gain an advantage. Recommended Business Strategy: We recommend Cost Leadership strategy for major portion of the business units in Desko. However, we also recommend that a Differentiation Focus strategy be applied to the business unit that deals with the customer segment which involves large enterprises and institutions. The cost leadership strategy would address the key issues mentioned in Five Forces Model in the following ways: The cost leadership strategy gives Desko an ability to offer the products at low prices to the buyers. Since the buyers are powerful, it is in best interest of Desko to comply with buyers’ requests. This strategy gives a competitive advantage over Desko’s rivals in the industry. One of the reasons of Desko’s loss is due to the advent of Asian products in Canadian market at cheaper prices. Sensible thing for the firm to overcome this problem is to compete with its rivals on lower prices. Desko can use the lower prices to defend itself against the threats of the substitutes. Lower prices would keep the threat of substitution low. Being the cost leader in the industry, Desko can gain customer loyalty to its products. This will act as an entry barrier for the new entrants. In addition, we recommend that Desko treat the business segment that deals with serving large enterprises with customized
Organisations today find themselves operating in an environment that is changing rapidly. The process of analysing the implications of these changes and modifying the way that the organisation reacts to them is known as business strategy.
b.What are the amounts and timing of the acquisition investment’s free cash flow from 2013 through 2022?
Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.
cheaper product and giving some of it away, it would be necessary to make sure stockholders are satisfied
Operational excellence. Many industry players are facing strong competitive pressure, so cost leadership is another key to success.
The costs of the company has to be minimized so as to minimize the cost for the customer without deceasing the profits. The company has applied
All segments are critical for the implementation of our company’s strategy because we chose to be broad cost leaders. Cost leaders maintain a presence in all market segments by focusing on low production costs and competitive pricing. With that in mind, one segment is considered to be slightly more important than the others: the low end segment. We will compete in every market segment, but this is one of the most important due to the fact that price is the main consideration of the buying criteria at 53% importance. Our costs will be much lower than our competitors which translates into a lower market price for this product, which is ideal for our customers.
The convenience that this division offer customers should give the organization a profitable and popularity boost, allow them to expand globally, and make the company a leader in innovation in its industry.
Giuseppe is a 14-year-10 month-old, Latino male in the 8th grade referred for counseling through AB3632 from Hollywood Senior high School under the Los Angeles Unified School District. Giuseppe’s school counselor indicates Giuseppe has difficulty controlling his anger towards peers. She also shares that Giuseppe fights with his peers leading to a suspension from school for three days due to fighting. Giuseppe’s mother reports that at home he is very oppositional especially with his father. Giuseppe’s mother has made multiple threats to call the police and have him spend time at Juvenile Hall if the behaviors persist. The counselor and mother, both report that Giuseppe has an attitude problem and frequently
Analyze the business-level strategies for the corporation you chose to determine the businesslevel strategy you think is most important to the long-term success of the firm and whether or
Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).
The last alternative could be to create a better marketing about their products, to compare their brand with the competition so the market can understand that the differences between prices is because of the good quality, the brand name, the knowledge, and that they are the only ones, the expert ones on those kind of products.
A business plan is a road map for a team or business and it can be used, as an eternal tool for potential customers and partners. The business plan should describe in details the entire business venture, technology behind it, the size of the target market, customers, competition, business model, team, financial needs and exit strategy. The business plan gives a company insight and allows them to think things through early enough in the process to ensure they have a well defined venture goals and objectives. It also gives the business direction to a clear path for the team to follow and implement on their venture.
Economic forces. According to Hill et al., (2015) “macroeconomic forces affect the general health and well-being of a nation or the regional economy of an organization, which in turn affect companies’ and industries’ ability to earn adequate rate of return” (p. 69). The foreign exchange rates are important factors in regards to Staples international relationships, currently the U.S dollar is seemingly weak against