Firm Performance and Profitablity †Free Samples to Students

Question: Discuss about the Firm Performance and Profitablity. Answer: Introduction: The company wants to involve new operating model within the curriculum of the enterprise. The operating model should be capable of performing processes of advanced analytics and merchandizing system. The Wools Worth wants to resolve the issues related with the supplier of the company. The growth of the company depends on the availability of resources and goods for the development of project ad products on time (Hartmann, 2008). The business strategy should be developed for exploring the IT and IS techniques within the curriculum of the enterprise. The IS and IT strategy helps in developing strong relationship with suppliers and employees which helps in enhancing the performance of the enterprise. The following diagram shows the strategy which should be adopted by the wools worth organisation: The operational model of the IS and IT system should be more dependent on value and cost of the project (Matthew, 2010). The project should focus on accelerating the innovation in the development of partnership, standardized approach of the company, reducing the sustainable sourcing, and others (Korpelainen, 2016). Factors responsible for strategic decision: The factors which are responsible for taking strategic decision are categorised as leveraging the capabilities of the associated suppliers, reduction in the cost, improving the security associated with the supply of raw materials, choice provided to the customers, managing the profile of the supply risks, enhancing the relationship with the supplier, guarantee provided to the sustainability of the sources, increasing the supply chain responsiveness, anticipating the prices of volatile commodity, and others. The following the list of factors affecting the strategic decision: The porters five force model is used to enlighten the impact of competitive rivalry, power of the supplier, power of the buyer, threats of substitution, and threat of new entry on the working of the organization. Competitive rivalry: The competitive rivalry helps in identifying the strength and weaknesses of the competitors in the global market. It helps in identifying the quality of the product provided by the competitors. The analysis of the competitors helps in increasing the profit of the organization. Power of the supplier: It helps in determining the fluctuation seen in the prices of the raw material provided by the suppliers. The examination of the services and quality of the raw material helps in getting the raw material of best quality at minimum price. Power of the Buyer: The quality of the product helps in driving the attraction of the customers towards the enterprise which helps in optimising the profit of the enterprise. Threat of substitution: The changes in the process and outsourcing of the supply effects the functioning of the entire system. The profitability of the organization can be threatened. The counter measures should be taken to overcome the problem of substitution. Threats of the new entry: The innovation of tools and technologies results into the development of skills of the competitors. The new entry of the competitor with the implementation of tools and technologies can affect the profitability of the organization. The countermeasures should be taken to improve the functioning of the existing organization by making use of innovative technology of information system. The deployment of the innovation system helps in the systematic arrangement of the processes and activities. During the planning of the information system for the Wools worth Organization, we analyse that the balancing of power occurs in managing the supplier of the raw material to the associated demand. The examination of service and quality is the key step for supplier management program to get the best services for the proper functioning of the wools worth organization. Pros and Cons of IT / IS strategic decision: Short term: The deployment of the IT/IS strategic decision helps in increasing the innovative power, reducing the working capital, preventing the good will of the organization, and others. Long Term: Management of the closed loop for enhancing supply chain, shortening the time strategy, increases the services of the supplier, and helps in improving the quality of the product. Cons: The strategic decision associated with the information system and technology are associated with the number of issues (Hoek, 2010). Short Term: It focuses more on cost than the associated values, the competencies and skills are not well specified, lack of compatibility with the strategic objective, lack of alignment between procurement and business, difficulty in performing open communication, Long term: It can affect the collaboration, ignorance to the business relationship, lack of engagement with top management, and limited mutual understanding. The IS and IT strategy helps in developing strong relationship with suppliers and employees which helps in enhancing the performance of the enterprise (Ridhwan, 2016). The current working structure underestimates the role of IT because it does not make use of IT in carrying over their working tactics. The implementation of the IT in Woolworth can completely transforms the working structure of the organization. Decision of new management: The deployment of the new system helps in gaining advantage of developing strategy and governance model, inclusion of the relevant processes, development of the structure, distribution of roles and responsibilities among people, use of technological support, inclusion of the performance management system, and inclusion of the risk management approach. The companys like Tata consultancy and engineering has completely transform their working structure from manual to the automatic by making use of Information system. The deployment of the information system helps in changing the traditional working curriculum with the systematic working culture (Karim, 2011). The integration of information system provides the systematic view to the product lifecycle management, advanced planning and scheduling system, supplier relationship management program, and enterprise resource planning system. The following diagram shows the deployment of the Supplier management information system: The information system helps in resolving the risks associated with the organization. The use of information system helps in successfully handling the fluctuation in the management of raw material, changes in the marketing strategies, volatility in the environmental catastrophes, and other. The new system is capable of providing flexibility and redundancy to the management of supplier and products (Heeks, 2012). The strategic objective of the enterprise aligned with the demand of suppliers. The visibility and information sharing can be improved with the implementation of information system. The complexity of the process and products can be reduced to the large extents (Salanvo, 2016). The new system helps in identifying the supply risks associated with the system. The development of the IT/IS system helps in measuring the benefits of the enterprise, development of the strategic coherence with the supplier, support provided by the top management, use of governance structure, standardization in control and compliance techniques, development of the employees, and etc. The Wools worth is capable to deal with the inclusion of activities between budget and resources and use of tools and technologies to innovate the working culture of the enterprise to change the working structure of the organization. Stakeholder analysis: The stakeholders which are associated with the supplier management information system are project sponsor, project manager, key account manager, key relationship manager, research and development director, sales and marketing director, supply chain director, cross functional team associated with procurement, research and development, marketing, supply chain, and operations. The functional requirement of the project is to resolve the quality issues, deals with the management of scarcity of the materials, controlling the fluctuation of the prices, involvement of disruptive events in managing the supply chain, and controlling the reputational damage. Conclusion: The deployment of the information system helps in changing the traditional working curriculum with the systematic working culture. The IS and IT strategy helps in developing strong relationship with suppliers and employees which helps in enhancing the performance of the enterprise. References: Salanvo, J. (2016). Exploration of success factors of information system. 1st ed. [ebook]. https://www.sciencedirect.com/science/article/pii/S1877042811014005 [Accessed 24 Aug. 2016]. Korpelainen, E. (2016). Theories of ICT system implementation and adoption- A critical review. 1st ed. [ebook]. https://lib.tkk.fi/SCIENCE_TECHNOLOGY/2011/isbn9789526041506.pdf [Accessed 24 Aug. 2016]. Hartmann, T. (2008). Implementing information system with project team. 1st ed. [ebook]. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.163.1684rep=rep1type=pdf [Accessed 24 Aug. 2016]. Heeks, R. (2012). Development informatics: Failure, success, and improvisation, of information system project in developing countries. 1st ed. [ebook]. https://unpan1.un.org/intradoc/groups/public/documents/NISPAcee/UNPAN015601.pdf [Accessed 24 Aug. 2016]. Salanvo, J. (2016). Inter-Organizational information system and business management. 1st ed. [ebook]. https://books.google.co.in/books?id=lcvALypOWE8Cpg=PA328lpg=PA328dq=Research+paper+pdf+on+implementing+the+information+system+in+the+current+working+of+the+industrysource=blots=ABcTL-Kuw5sig=4ANdmRe39AcGmcthW4QWdFVwlnAhl=ensa=Xved=0ahUKEwjKo9e4oPDVAhXJYo8KHZ0DDWk4ChDoAQgxMAI#v=onepageq=Research%20paper%20pdf%20on%20implementing%20the%20information%20system%20in%20the%20current%20working%20of%20the%20industryf=false [Accessed 24 Aug. 2016]. Ridhwan, M. (2016). Implementing management information system for enhancing strategic and tactical planning. 1st ed. [ebook]. https://www.researchgate.net/publication/257812324_IMPLEMENTING_MANAGEMENT_INFORMATION_SYSTEM_IN_LIBYAN_ISLAMIC_FINANCIAL_INSTITUTIONS [Accessed 24 Aug. 2016]. Karim, A. (2011). The significance of management information system. 1st ed. [ebook]. https://www.scielo.br/scielo.php?script=sci_arttextpid=S1807-17752011000200011 [Accessed 24 Aug. 2016]. Matthew, S. (2010). The effect of information system on firm performance and profitablity. 1st ed. [ebook]. https://www.sciencedirect.com/science/article/pii/S1877042811014005 [Accessed 24 Aug. 2016]. Hoek, R. (2010). Supplier relationship management: How key drivers your companys competitive advantage. 1st ed. [ebook]. https://www.pwc.nl/nl/assets/documents/pwc-supplier-relationship-management.pdf [Accessed 28 Aug. 2016].