Issue Raised from the Carlson SAN Mixing Equipment Free Essay Example, 750 words

The issues related to multiple vendor purchases are many such as the cost related issue. Purchasing from multiple vendors will lead to weak relations with the vendor and non-assurance of quality goods. This will lead to the damage of the SAN efficiency regarding providing proper control of data and security. Carlson SAN might face the other issue related to quality and assurance of security due to the lack of reliable raw material purchase from the multiple vendors. This will also, in turn, affect the supply chain management system of the SAN owing to the mixing of equipment from multiple vendors (Tate et al. , 2012). The prudent option for the management to address the probable issues can be to purchase the raw material from a single trusted vendor. This will facilitate to form a strong relationship with the vendor in the long run and hence aid to provide a quality product. This will further enable SAN to build greater efficiency regarding the storage of data in a risk-free manner. Besides, the cost will be lowered as the vendor might provide discounts. A single vendor can also be trusted to provide the best quality product. We will write a custom essay sample on Issue Raised from the Carlson SAN Mixing Equipment or any topic specifically for you Only $17.96 $11.86/page The cost regarding the IP SAN is less as compared to the performance provided. Without incurring the infrastructure hassle, the IP SAN can assist by providing better services regarding the storage and security of data (Bhagat, n.d. ).

Crazy Eddie Case Analysis Essay - 722 Words

In Crazy Eddie Case, a former CPA, Sam E. Antar, was a key individual who helped Eddie Antar mastermind one of the largest securities frauds uncovered during the 1980s. Sam admitted that he had no empathy whatsoever for investors because he never concerned about morality or the suffering of those victims. Next I’ll analysis Crazy Eddie Case from ethical perspective and use Ethical Decision Making Model to evaluate Sam’s possible behaviors. 1. Frame the ethical issue: Should Sam join his cousin and become a willing participant in the massive fraud? 2. Gather all the facts: (1)Eddie had financed Sam’s college degree in accounting and hired him to serve as the CFO. (2)Eddie kept skimming cash from his private business to avoid†¦show more content†¦No in this case, because the company was closely held and collusion of top management can always circumvent internal controls. 6. Identify the accounting and auditing issue: (1) Crazy Eddie’s behavior of overstating year-end inventory is against GAAP requirements. (2)Management has the responsibility to fairly present financial statements in accordance with GAAP. 7. List all the possible alternatives that you can or cannot do: (1)Keep going along with Eddie and fooling those investors. (2) Refuse to cooperate anymore and consider resigning from CFO’s position. (3) Successfully persuading Eddie to stop committing fraud and to restate prior year statements. (4)Eddie refuses to stop the series of fraud, so Sam fully discloses the information to public. 8. Compare and weigh the alter natives: (1)It’s against the SEC laws and inconsistent with GAAP standards; unfair to stockholders; uncertainty about how long the company can cover up the deficiencies which keep growing with the company; honesty and integrity are challenged. (2)Loyalty to Eddie and the company is challenged. No more personal financial benefit can be generated from the rising stock price and the CFO position any more. Investors are still kept in the dark. (3) The company’s stock price may drop significantly when investors learn about the truth; company may face bankruptcy due to loss of public confidence. The wealth of Eddie’s whole family will shrink seriously. (4) While Eddie mayShow MoreRelatedCrazy Eddie Case1455 Words   |  6 Pagescrazy eddiCase 1.8 Crazy Eddie, Inc. Term A2/Spring 2013 March 19, 2013 Table of Contents Issues†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...3 Facts†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 Analysis and Conclusions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.6 Conclusions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.9 Issues 1. Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987. Identify and briefly explain the red flags in Crazy Eddie’s financial statements that suggested the firm possess a higher-than-normalRead MoreThe Case Study Analyzes Crazy Eddie2010 Words   |  9 PagesThe case study analyzes Crazy Eddie. Crazy Eddie was convicted of white collar crime through fraud triangle. Crazy Eddie involved in fraud through incentives, opportunity and rationalization. Crazy Eddie reported lacking rationalization but confirmed that incentives and opportunity were working. The company also reported lacking morality and excuses. Crazy Eddie executed its business without taking into account moral implications of doing business. Crazy Eddie illegally adjusted returns to avoidRead MoreCrazy Eddie1931 Words   |  8 PagesCrazy Eddie, Inc. Common Size Balance Sheets March 1, 1987 March 1, 1986 March 1, 1985 May 31, 1984 Cash 3.17% 10.47% 33.99% 3.76% Short-term investments 41.36% 21.14% 0.00% 0.00% Receivables 3.68% 1.77% 4.18% 7.12% Merchandise inventories 36.99% 47.16% 40.51% 63.83% Prepaid expenses 3.61% 1.86% 0.98% 1.41% Total current assets 88.81% 82.40% 79.66% 76.12% Restricted cash 0.00% 2.64% 10.77% 0.00% Due from affiliates 0.00% 0.00% 0.00% 15.69% Property, plant and equipmentRead MoreCrazy Eddie Essay2255 Words   |  10 PagesCrazy Eddie Case Questions 1. Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987. Identify and briefly explain the red flags in Crazy Eddie’s financial statements that suggested the firm posed a higher-than-normal level of audit risk. There were several red flags in Crazy Eddie’s financial statements. The company’s higher-than-normal level of audit risk can be determined by completing a ratio analysis of the financial statements. An analysis of key ratiosRead MoreAuditing Cases22626 Words   |  91 PagesAdditional Cases for the Course The case readings have been developed solely as a basis for class discussion. The case readings are not intended to serve as a source of primary data or as an illustration of effective or ineffective auditing. Reprinted by permission from Jay C. Thibodeau and Deborah Freier. Copyright  © Jay C. Thibodeau and Deborah Freier; all rights reserved. 1†¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢ ( Case 61  ® Enron Enrori’s First Few Years hi~ 1985 Enron had assets along the three major stages of the supplyRead MoreYouth Sports Are Not Becoming Too Intense Essay1894 Words   |  8 PagesAnalysis: The purpose of this paper is to argue the fact that youth sports are not becoming too intense. After reading the New York Times article I decided to pick this topic and argue against this theory because as a division one athlete I have my own opinions. I picked three sources which can back up and prove that sports being too intense is very much your own opinion. Introduction: Being a professional athlete is one of the most commonly heard dreams of a young boy or girl who currently elementaryRead MoreThe Issues of Race and Ethnicity in Hollywood Cinema2881 Words   |  12 Pagescharacters did not really begin until the 1920s, but even then they were almost exclusively cast to play the very same stock characters popularized in the previous decades by white actors in black-face, such as the high-stepping and high-falutin and crazy as all get-out [ ¦] black jester (Bogle 19). Thus, one can quite reasonably say that at least at the beginning, the lack of roles for black and biracial actors was clearly the result of blatant, unabashed racism, because practically all non-whiteRead MoreWaste Management33554 Words   |  135 PagesThe case was prepared by Mark S. Beasley, Ph.D. and Frank A. Buckless, Ph.D. of North Carolina State University and Steven M. Glover, Ph.D. and Douglas F. Prawitt, Ph.D. of Brigham Young University, as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of an administrative situation. copyright  © 2009 by Pearson education, inc., upper saddle river, nJ 07458 89 section 4: accounting fraud and auditor legal liability USE OF CASE ThisRead MoreRetail Store Design and Layout15254 Words   |  62 PagesVirtual store |38 | |14. |Virtual store |45 | |15. |Case study |50 | |16. |Bibliography |60 | INDEX Read MoreRastafarian79520 Words   |  319 PagesJamaicans regard as their cultural contribution to the world. Later I will return to these issues and will demonstrate how they contribute to the routinization of Rastafari in Jamaica. The nature of this book dictates a heavy reliance on documentary analysis. My focus is interpretation not ethnography. Therefore, I have not sought to generate primary data on the movement but to analyze and re-analyze the growing body of scholarly and popular literature on the movement, including sociological and anthropological

The path way to teaching and studying free essay sample

Unlike Piaget’s view that children’s development must necessarily come first their learning, Lev Vygotsky argues that social learning comes before development. Vygotsky’s theories stressed the fundamental role of social interaction in the development of cognition, as he placed more emphasis†¢ on culture affecting cognitive development, he believed that cognitive development varies across cultures. In contrast, Piaget states that cognitive development is mostly universal across cultures;†¢ on social factor contributing to the cognitive development, in other words, the environment in which children grow up will influence how they think and what they think about;†¢ on the role of language in cognitive development, as cognitive development results from an internalization of language;†¢ adults are an important source of cognitive development, as adults pass on their cultures tools of intellectual adaptation that children internalize.Sigmund Freud d eveloped a topographical model of the mind; he used the analogy of an iceberg to describe the three levels of the mind. We will write a custom essay sample on The path way to teaching and studying or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page On the surface of the iceberg is consciousness, which consists of those thoughts that are focused on our attention now. The preconscious consists of all which can be retrieved from memory. The third level is the unconscious, primitive impulse and wishes, as the real cause of the most behavior. He used the similarity of the iceberg because the most important part of the mind is the part you cannot see. So a primary assumption of the Freudian theory is that the unconscious mind governs behavior to a greater degree than people suspect. And the main task of psychoanalyzing is to make the unconscious conscious.According to S. Freud theory of Psychosexual Development and the Oedipus complex, children are born with a libido. There are a number of stages of childhood, during which the child seeks pleasure from a different object – a particular body part. Freud outlined these stages as an oral and anal when Ego develops, and a phallic, latency and genital, when the Superego develops. The mind is having three aspects, such as the Id, the conscious mind, basic needs and feelings, the pleasure principles; Ego and Superego, the unconscious mind, need to be well balanced to have a good mental health. Superego is a moral part of the mind, and Ego is the reality principle. As an example, when a child hurt another child. So the aggressor can tell a lie and deny it or start to cry because they know what they have done wrong. Sigmund Freud believed, that each stage of child’s development directly related to a specific needs and requirements. He suggested that if the child doesn’t successfully complete the stage, they rather develop a fixation, and fixation will influence to adult’s personality and behavior later.

Information Technology Changes in Business Strategic IT analysis

Introduction The need to adopt strong strategic initiatives is the natural follow-up to the analysis undertaken on Medical Devices Contract Manufacturing (MDCM), to unearth systemic failures in the company’s operations. The need for the development of strategic measures to solve the supply chain bottlenecks come from the desire to turn around the financial performance of MDCM.Advertising We will write a custom case study sample on Information Technology Changes in Business: Strategic IT analysis specifically for you for only $16.05 $11/page Learn More The process for doing this requires the identification of relevant IT projects that have the best chance of solving MDCM’s problems, followed by an evaluation of the projects to assess their suitability to the company in terms of the impact they will have as solutions to the problem, and whether the company can implement them within its resources. A sequenced list showing the most optimal proj ect will be the output of the evaluation process after the identification of the relevant projects. IT Projects Appropriate for MDCM The previous report contained a number of strategic and tactical initiatives required to turn around the operations of the company. The basic elements in these measures focused on improvements in the supply chain, improvement in information sharing between departments and consolidation of operations in various sections of the company. The most significant element of the strategies that came out in the analysis was the need to utilize IT systems to smooth out the operations of the company. The specific tasks identified included the use of an information platform to streamline marketing by making it possible to develop and execute a consistent marketing strategy across different subsidiaries operating in different markets. Secondly, the report identified the need to streamline the supply chain to ensure that there was an effective procurement regime to r educe productions costs and to reduce the turnaround time. Thirdly, the report identified the need to increase the innovative edge of the company by increasing the number and the quality of new products. In addition, the company needs to find ways of raising the entry barriers for the fresh and upcoming competition. Another need the report identified was the need to revamp RD activities at the company to bolster its product range and to improve its standing among competitors. A number of specific IT based projects that can help the company to achieve its strategic objectives. The projects include the implementation of an enterprise resource planning system, creation of a company intranet, consolidation of datacenters and networks, standardization of server hardware, improvement of group support systems, creation of a customer self service portal, and the implementation of a new supply chain management software.Advertising Looking for case study on it? Let's see if we can help y ou! Get your first paper with 15% OFF Learn More In order to decide on the most appropriate set of projects to work on, there is need to revisit the basic problems bedeviling the company and their impact on the business. The first problem in the company is the high cost of production in most of its manufacturing plants because of a poor supply chain. There is a very weak order processing system, both for inputs to the company’s plants and outputs to clients. Secondly, there is need to improve information flow to all employees to ensure that they can make decision quick enough. Currently, information flow is a major impediment to the work of section managers. Thirdly, the company is under increasing threat from new entrants to the market, and smaller operators with better efficiencies in their operations. Most of these problems have brought greater internal costs that hamper the efficient operations of the company. The appropriate set of solutions, based on the compan y’s strategic objectives, should solve as many of these problems as possible. The solution needs to be easy to deploy and maintain in the long term. The perfect solution will also rely on existing technologies, or will require minimum investment in proprietary technologies. Table 1 below shows how the specific projects discussed above measure up against this criterion. Project Name Reducing the cost of production Improving information flow to all employees Ease of deployment and maintenance Total Enterprise resource planning 5 1 3 9 Creation of a company intranet 4 5 3 12 Consolidation of data centers and networks 4 5 4 13 Standardization of server hardware 2 4 2 8 Improvement of group support systems 4 4 3 11 Creations of a customer self service portal 4 1 4 9 Implementation of a supply chain management software 5 4 2 11 Scale: 1-least impact, 5 most impact Table 1: Analysis of the projects based on their impact on the strategic objectives The analysis above shows that the most beneficial projects in an overall sense are creation of a company intranet, consolidation of data centers and networks, improvement of group support systems and the implementation of a supply chain management software. However, the best portfolio of projects will be the ones that create the most value for the company across various criteria. This means that the best way to approach this problem is to identify the best collection of projects that answer the problems of the company in the most effective and complete fashion, and which at the same time ranks well under ease of deployment and maintenance.Advertising We will write a custom case study sample on Information Technology Changes in Business: Strategic IT analysis specifically for you for only $16.05 $11/page Learn More There are two optimum options for reducing the cost of production in the company. The first one is the use of enterprise resource planning while the secon d one is the implementation of supply chain management software. The two options promise to increase the efficiency of the supply chain. They are both capable of improving the business processes at the company by providing a way to approach the bottlenecks in the supply chain. The important issue to determine is the overall benefits that the company will derive if it implements either of the systems. The enterprise resource-planning project will allocate the resources of the firm in the most efficient manner while the supply chain management project, will ensure that there is a smooth flow of supplies leading to reduced production prices. In the matter of improving information flow to the employees, the highest ranked projects are the creation of a company intranet and the consolidation of data centers. An intranet will ensure that there is a proprietary link in the entire company such that managers and decision makers can access information they need from another part of the compan y without undue delay. This can improve the quality of decisions and the speed of implementation of business projects. Consolidation of data centers on the other hand will also centralize information. This will make it possible for managers to access the information they need using the legacy systems in use now. The advantage of this system is that it will use most of the current infrastructure thereby reducing the need for fresh IT investments. In the long term, there would be need to improve the methods of access but as things stand, it is the best solution for making information available. Evaluation of Projects The above analysis notwithstanding, there is further need to analyze the projects using the portfolio application matrix. The matrix features two main criteria. The first criterion is the ability to succeed or the degree of risk inherent in the project while the second one is the value the project brings to the business. Each of the two scales goes from zero to one hundre d. Table 2 below shows that values obtained from analyzing these two criteria against the projects listed for this strategic initiative. Likelihood of success Value to business A Enterprise resource planning 60 69 B Creation of a company intranet 77 64 C Consolidation of data centers and networks 75 59 D Standardization of server hardware 49 45 E Improvement of group support systems 67 73 F Creation of a customer self service portal 69 87 G Implementation of a supply chain management software 53 87 Table 2: Estimated values for the different projects in the product matrixAdvertising Looking for case study on it? Let's see if we can help you! Get your first paper with 15% OFF Learn More The next step after determining the percentage of each of the variables for each project the next task is comparing the values obtained for each of these projects against the portfolio application matrix. Table 3: Portfolio application matrix The matrix assigns the projects to four possible areas as shown in figure three below. Most of the projects lay in the top left section of the graph. The table shows that most of the projects have a high-risk status but they also promise the highest value for the business. There is only one project in the first quadrant that has moderate risk and moderate returns for the company. This is the standardization of the hardware server. The implementation of supply chain management software will yield the highest level of reward from among the projects, with a matrix score of 87%. This, on the other hand, has a success rate of just 53% showing that it is among the riskiest projects proposed. In this sense, the company has to make a decision on wheth er this is the best project to implement based on these characteristics. The company’s supply chain is the weakest link in the entire business systems. There are delays in delivery of raw materials, and significant delays in the supply of finished products to the clients. These facts support the findings on the matrix. The opportunity available to reduce the risks associated with implementing new supply chain management software is breakdown of the project into smaller parts to reduce the risk of implementing a whole system. The second significant project from the portfolio examined is the development of a customer service portal. The project scored highly on customer service. It can help the company to reduce the losses it takes because of poor customer service. It means that both old and new customers will have a better experience with the company, making it a key element of the projects. The case study revealed the likelihood that the company’s loss of clients came about because of poor customer service among other factors. It is interesting to note that element did not make it to the final list of projects proposed for further development in the initial analysis. It however came through as one that would be easy to implement hence it can form part of the projects that build momentum for the exercise. However, failure to implement it will not be a significant setback provided the rest of the issues that constitute customer service receive attention. Enterprise resource planning is also an important project given that it has a relatively high reward ratio as per the project matrix. This is a project with some risk to it because of its scope. It can also benefit from risk reduction measures such as breaking it down into phases to reduce the risk elements. If there is a glaring lack of institutional systems at the company, then it is the lack of an enterprise resource planning system. The presence of this system would have reduced the probability of making losses by a large margin. Enterprise resource planning systems help an enterprise to allocate its resources, human, financial, and technical, in the most efficient way. It has a real potential of reducing the problems currently affecting the performance of the company. The issue of standardization of server hardware is an opportunity to develop a robust system and can be the source of competitive advantages in the future. Currently, it is possible to use the existing hardware but it will call for the development of different software solutions for each unique platform that runs the common protocols. Standard hardware should make it easy to implement new protocols in all the servers hence it will give the company an increased opportunity to adapt to changes. Sequence of Executing the Initiatives In the end analysis, the projects that should make it to the final list include the supply chain management software. Since the value of this system reduces the overall new benefit s that the company can derive from instituting an enterprise resource planning system, its implementation should be on priority basis at the expense of the enterprise resource planning system. Secondly, the implementation of group support systems will improve the cooperation between departments, which is also the same effect that creation of a company intranet will yield. Since there are systems that can support this initiative, it makes sense to develop those systems as part of the first efforts aiming to deal with the strategic issues. There is some potential benefit in implementing a customer service portal, but its significance reduces with the implementation of the two systems above. Conclusion The role of management in the planning and investing in IT products is critical. However, there is a significant risk of failure to respond to issue in time leading to the nature of problems discussed in the case study. IT has a special place in supporting the strategic goals of any orga nization. It is imperative to align IT resources with the overall strategy of the company. Furthermore, IT has the capacity to enhance the competitive advantage of a company that invests in systems that increase the efficiency of operations. That said it is important to determine IT priorities with the help of the IT department because of their capacity to weigh the relative weight of the investment decisions, and the potential impact of IT on the operations of the project. This case study on Information Technology Changes in Business: Strategic IT analysis was written and submitted by user Tiana Morris to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Information Technology changes in Business Strategic IT analysis Introduction The MCDM (medical device contract manufacturing) Inc was established in 1972. The firm is involved in â€Å"contract manufacturing and packaging services of the medical devices industry† (Jeffery and Norton 2).Advertising We will write a custom case study sample on Information Technology changes in Business: Strategic IT analysis specifically for you for only $16.05 $11/page Learn More The company has its headquarters in the United States, although it operates other 19 subsidiaries in 35 cities. The company â€Å"specializes in medical device contract and manufacturing and assembly, clean room medical injection molding, and design and fabrication of specialty assembly equipment for medical device manufactures† (Jeffery and Norton 2). In the 1980s, the firm was among the largest corporations in the industry owing to its success in manufacturing medical devices and customer satisfaction. The company promised to offer more to its target market in comparison with its competitors. In 1974, MDCM held 42 percent of the U.S market share and by 1985, it had grown to over 54 percent (Jeffery and Norton 3). The company’s success was boosted by small business acquisitions leading to consolidation and further expansion in the US market. Between 1989 and 1990, MDCM lost its major four out of ten consumers and as a result, the company witnessed a massive decline in profits and revenues. Profit margins began to fall as a result of buyers’ consolidation. The firm’s pricing power was lost as it could no longer compete with other players in the industry on pricing strategy. The company’s market share and profits continued to decline up to 2000 when the management decided to make modifications to reduce internal costs, increase the flow of information, and increase its efficiency. The adoption of information technology enables an organization to cut down its operational and internal costs. Consequ ently, opportunities are realized in three major ways which are business/organization portfolio, competitiveness, and internal costs. Briefly, competiveness means the extra advantage associated with the development of IT leading to a competitive advantage. Internal costs imply the process of improving effectiveness and efficiency of a company thus cutting down costs. Lastly, business portfolio refers to the adoption of IT and its influence on the decision making process of potential investors.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Strategic objectives of MDCM Based on the case study, the current strategic goals of MDCM are to cut down its operational costs, make information available to different departments in real-time, increase market share, be a market leader of the industry, and reduce internal costs (Jeffery and Norton 1-5). At the moment, the primary strategic objectiv e of MDCM Inc is to cut down the production costs incurred in the process of producing medical merchandise. The case study highlights that reduced costs could be achieved through internal costs as some of the problems noted result from internal environment. For example, the company lacks a proper network system which could be used to connect all the 19 subsidiaries in 35 countries. This has resulted in increased operational costs (Jeffery and Norton 3). The firm’s operating system is outdated and it causes delays in relaying information to the MDCM employees. Lastly, the company lacks a standardized and proper email system that can be used to communicate with its employees. The legacy of the current system increases administration costs such as duty, financial, custom sales, and inspection systems. The other noted strategic objective is to increase its market plan and go global through internationalization and globalization. It is important to note that at one point, the comp any was the largest market shareholder in the medical services industry (Jeffery and Norton 2), but this has since declined. The company once had a market share of 54 percent but due to a decline in its competitive advantage the share decreased (Jeffery and Norton 3). Due to the aforementioned reasons, the company is planning to increase its market share and going global in order to realize market diversification. The company has the strategic objective of becoming a market leader in a market that it once dominated. The company is therefore on a mission to realize the benefits associated with investing in the IT sector in order to add value, increase profits, and expand its market share (Jeffery and Norton 8). Competitive environment in which the firm operates (a competitive forces analysis) MDCM operates in a competitive industry whereby the company is involved in contract manufacturing and packaging services of medical devices (Jeffery and Norton 2). However, in the past four quar ters, the company has been reporting losses. In a competitive market like the medical devices industry, making such losses could be detrimental to a company in the long run. To better determine the competitive environment in which the DCM firm operates, Michael Porter’s 5 competitive forces of market analysis have been adopted. The five forces include presence of potential entrants, presence of perfect substitutes, traditional competitors, suppliers, and bargaining power of buyers/consumers (Porter 12). The forces are presented in the diagram below.Advertising We will write a custom case study sample on Information Technology changes in Business: Strategic IT analysis specifically for you for only $16.05 $11/page Learn More Figure 1: Porter’s 5-Forces Model (Source: Porter 2008) the medical service industry is a multi-million dollar industry with many competitors. Based on the case study, MDCM used to be the largest player in the industry with 42% market share in 1974. By 1985, the company’s market share had increased to 54% (Jeffery and Norton 3). However, since the 1990s, the company has witnessed a drastic decline in its market share and profitability, thanks in large part to new entrants in the industry. Based on the case study, the company was unable to compete with the prices set by new entrants and rivals. Threat of potential substitute’s products/services: because of the decline in market share and increased cost of producing merchandise, MDCM is prone to potential threat from substitute products and services. The threat has the potential of reducing the company’s competitive advantage relative to its competitors. Traditional rivals: MDCM operates in a competitive market made up of traditional rivals in the US market. These rivals are a real threat to the survival of the firm. Traditional rivals have the capacity of getting MDCM out of business if the company does not undertake a strateg ic response to counter their moves. It is important therefore for the organization to address this issue. The three threats discussed above have the highest potential of affecting MDCM although the bargaining power of both buyers and suppliers have potential effects as well.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The strategic response(s) MDCM should employ to address the most critical strategic threats identified above The three threats mentioned above (that is, traditional rivalry, threats from near entrants, and threats from potential products and services substitutes) need to be addressed if at all the organization wishes to achieve its organizational objectives. The strategic response for new entrants in the market could be addressed by raising the barriers to entry. For example, MDCM could get copyrights and patents for most of its invention and discoveries, thereby prohibiting new entrants in the market. In addition, the firm needs to invest more on information technology to ensure information flows freely from marketers in the field to the production departments. This would ensure that new entrants are discouraged from entering the market as there are no loopholes to take advantage of. The response to customers and suppliers bargaining power could be addressed by switching the costs for the consumer. Switching costs can be defined as the costs resulting from moving from one particular supplier to another supplier with quality services and at low costs. Through a value added IS the cost that would be used to identify a new supplier would be increased hence retaining the existing consumer and supplier. This would suppress the suppliers’ and consumers’ bargaining power. On the other hand, by reducing the switching costs, the organization would be in a position to attract new suppliers. The newly attracted supplier may have better supplier costs making them cost effective than the former suppliers. As a result, the low costs of suppliers would give the organization a competitive advantage in the market. Reduced costs and an increase in competitive advantage would enable the organization to start gaining strength and market share. To prevent the presence of substitute products and services in the market, the organization should consider investing in re search and development. For example, the adoption of the new IT would ensure that the company produces more competitive products thus gaining competitive advantage over its rivals and competitors. This will ensure that the organization is not threatened by the production of potential product substitutes from competitors. Critical tactical objectives for MDCM MDCM should also consider using tactical responses as they would assist the organization to achieve different strategic goals. At the moment, the major tactical objectives of MDCM are increase the switching costs for the consumer, reduce the switching cost of the consumer, produce innovative products, raise the entry barriers, and invest in IT, and R D. To start with, MDCM needs to work on its value chain and improve the value added chain. By adopting IT, the company will be able to improve on its supply chain management, and hence added value chain. In order for the company to achieve competitive advantage over its competitors , it needs to add value to its chain and this would entail better customer care, improved order procession and enquiry, and increased efficiency of these processes. The switching costs can only be influenced through value addition to the company’s product by improving consumers’ and supplier links. The adoption of the anticipated IT would also enable the company to benefit from an increase in consumer switching cost and at the same time, reduce the firms’ supplier switching costs. For instance, the adoption on new IT system would enhance communication greatly. As a result, the company will gain a competitive edge in the market relative to its rivals. Moreover, by enhancing the link between suppliers and consumers, this would enable the company to reduce expenses incurred and at the same time, lower the cost of production. The five forces of Porter could be used to improve the competitive advantage. IT could be used contain the power of new entrants, substitution threat competition, power of supplier, and power of the buyer. The organization can also share data and information with the different subsidiaries and this would enable it to improve the services and products offered to consumers. To start with, this would make it easier to share and respond to inquiries. In addition, the quality of products would also be improved. Furthermore, it would also be easier to share information across different subsidiaries thereby reducing the production cost. By producing innovative products, the firm would gain a competitive advantage. The company can be able to achieve this goal by embracing R D as well as data technology. The innovative products would shield the organization from product substitution threats and decrease the level of rivalry from traditional competitors. By adopting new technology, MDCM will be in a position to identify new suppliers in the market with lower supply costs. The company will also realize a decrease in its expenses su ch as production and internal costs and as a result, the firm could gain a competitive advantage over its rivals in the industry. By switching costs through reduction of the firms’ expenses, the firm would in effect increase its competitive advantage. The organization can cooperate with its rivals though a shared IT system. This would encourage the company to gain price power over buyers thus reducing the buyers bargaining power and improve the price of selling its products. Through cooperation, the company will be able to enjoy high prices thus maximizing on its profits. The adoption of a value added information technology by MDCM will lead to an increase in consumer switching costs. With high consumer switching costs, consumers will be prohibited from switching from one supplier to another thus cutting down the purchasing power of its suppliers thus gaining a competitive advantage. As seen in the case study, the major strategic objective of MDCM is to cut down its productio n costs to manageable levels. Through the introduction of IT, the firm will be able to reduce its administration costs has the firm will not be required to hire more employees to carry out some of the tasks (Tetteh 984). Therefore, substitution of IT for labour will ensure that that production and labor costs are reduced to manageable levels. In addition, the work will be effectively performed and geared towards the realization of the organization strategic goals. Conclusion In conclusion, MDCM has been experiencing a decline in market share and profit margins, and this calls for the adoption of IT to cut down on its costs and increase production. Some of the major strategic objectives identified in the case include reducing operational costs, becoming a market leader, going global, and reducing its internal costs. An alignment of the corporate strategies with the IT objectives would help in the realization of these strategic objectives. In addition, the adoption of IT could lead to value added value chain, thereby helping the organization gain a competitive advantage. An analysis of Porter’s five forces reveals that MDCM is in a position to determine how to achieve a competitive advantage in the market. Some of the solutions identified include increasing and decreasing the supplier and consumer switching costs. Others include raising entry barriers, cooperating with rivals, producing product innovation, substituting labor for IT, and sharing information across the subsidiaries. Works Cited Jeffery, Mark and Joseph F. Norton. MDCM, Inc. (A): It Strategy Synchronization. Harvard Business, 2006, 1-9. Print. Porter, Michael. The Five Competitive Forces That Shape Strategy. Harvard Business  Review, 86.1(2008):78-93. Print. Tetteh, Emmanuel. From Business Networks to Virtual Organisation: A Strategic  Approach to Business Environment Transformation in Online Small and Medium  sized Enterprises. 1999. Web. This case study on Information Technology changes in Business: Strategic IT analysis was written and submitted by user Madelyn Miranda to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.