Management of Information and Technology - Assignment Example

?Management of Information and Technology Assignment Table of Contents Table of Contents 2 A.SME: New Era Furniture Mart 3 B.Products and/or Servicesand Business Processes of NEFM 3 C.Porters Competitive Five Forces Model 6 The Barriers of New Entrants 6 Bargaining Power of the Suppliers 7 Bargaining Power of the Customers 7 The Threat of Substitute Products or Services 8 Competitive Rivalry 8 D.Business Value Chain 9 Designers 9 Manufacturers 10 Customers 11 E.Cloud Computing 13 References 14 A. SME: New Era Furniture Mart The Small and Medium Enterprise (SME) selected for this assignment is New Era Furniture Mart (NEFM). NEFM is a producer and exporter of varied types of workplace and household furniture’s based on the taste and preferences of its target customers, in order to retain in the market for long run. Moreover, NEFM also includes a team of proficient designers, engineers and inventors to develop diverse range of products in order to satisfy the constantly alternating demands of the consumers. The prime objective of NEFM is to offer cost efficient and value added products to its customers in varied markets in order to enhance loyalty and dependency as it is quite essential for NEFM to maintain its corporate image and brand portfolio in the market (New Era Furniture Mart, 2010). B. Products and/or Services and Business Processes of NEFM NEFM is a reputed manufacturer, which is highly dedicated towards satisfying the varied desires and requirements of the customers, both for commercial or domestic purposes. It includes a wide range of imported products such as customised readymade assembled tables, reception tables, executive chairs, shelves and conference tables. Apart from this, it also includes various stylish office chairs, with wide-ranging features such as wooden base, hydrolic equipments, push back, high back, revolving chairs, and knee tilt with wooden armrest among others at reasonable prices. It also presents numerous types of office sofas as well, such as visitor sofa, slalom sofa, two seater sofa, sofa nat, sofa vivi, taco two -seater sofa and eye-q-eye sofa among others. NEFM also presents diverse office interior facilities such as floorings and false ceilings along with wooden and aluminium partitions as well (New Era Furniture Mart, 2010). Other than this, it also offers a variety of domestic furnitures, such as bed and dining tables, storage units along with assorted sofa sets. Moreover, it also presents numerous customised furnitures in order to satisfy the customer needs with the intention to differentiate in the market. NEFM also presents an array of services to its customers including space planning and designing as well as varied furniture installations (Global Manufacturers, 2012). Thus, in order to present innovative products and/or services to the customers, NEFM attempts to offer high concentration on its business processes. Business process is referred as the assortment of activities which focuses on developing a specific product and /or service in order to gratify the end-users. It includes sequences of activities that are included to present the end-products and /or services to its target consumers which begins with a particular objective and ends with an achievement. There are mainly three types of business processes which are related with managing, supporting and operating (Farid, 2007). In this regards, the prime operations of NEFM are concentrated on manufacturing and circulation of varied office and domestic furnitures being entirely dependent on labourers (New Era Furniture Mart, 2010). Before instigating the manufacturing process of any furniture, a specific design is selected by the customer. It is extremely essential in order to receive a striking finished product as per the desire of the customer. Another important fact is that the process of manufacturing commences only after the order is placed by a customer (Farid, 2007). The manufacturing process of furniture includes variety of raw materials namely teak wood, walnut wood or keekar wood along with nails, textiles, leathers, buttons, studs and screws. Other than these, spirit, lacquer, thinner, hardener and sealer are also utilised in the manufacturing process of furnitures. At the initial stage of the entire process of production of furnitures of NEFM, the wooden frames are properly shaped in varied sizes with the help of supreme and excellent quality of seasoned beech wood, as it is the backbone of any furniture. Later, in order to increase the strength of the frames, all joints are dowelled and fastened with screws and nails (Portal UEA, n.d.). In the next phase, the frames are polished according to the choice of the customers. After that the cloths or leather are properly cut into several shapes and sizes by skilled and expert workers. Then, the textile or leather is placed on the frames with the help of stitching and proficient needlework. Finally, in order to make it attractive and modern, craftsmen intend to perform advanced upholstering techniques. At the final stage, hand studding and hand antiquing operations are performed in order to give an antique finish to the furnitures (Farid, 2007). Thus, it can be affirmed from the above discussion that NEFM offers high importance over the quality of the raw materials in order to offer inventive products to its customers. In addition, the business process operations also include proper distribution of the products to its destinations with the help of various liveried vehicles, in order to enhance customer satisfaction and dependency. Moreover, NEFM also includes varied marketing channels such as company websites, billboards, newspapers and televisions in order to augment the awareness of the customers (Farid, 2007). The activities of promotion are also very essential as it would amplify total sales along with revenue of the organisation. C. Porters Competitive Five Forces Model In this era of globalisation and industrialisation, the intensity of competition is increasing at an extreme rate along with the profitability of any industry as well. This can be analysed and evaluated with the help of Michael Porter’s, competitive forces model. This model helps in recognising the competitiveness of any market, which might prove beneficial for future assessments of NEFM’s operations. Thus, it can be affirmed that Porter’s five forces model would help to obtain a detailed view about the varied features of any industry. Moreover, the model of Porter’s five forces would also help in determining the strength and weaknesses of a company along with industry trends, which includes opportunities and threats (Ahlstrom & Bruton, 2009). The Barriers of New Entrants Due to globalisation, competition has enhanced to a large extent leading to higher profit margins. This can be regarded as one of the significant causes which might attract new players to enter into the furniture market. Moreover, as the demand of furniture is increasing at a rapid pace, many new companies are getting attracted towards this industry. Furthermore, due to limited number of major suppliers, the opportunities for new entrants are increasing rapidly in the Indian furniture industry. However, due to low capital requirement and easier import facilities, also make this segment of the industry more vulnerable to the new players (International Master of Science in Rural development, 2009). Thus, NEFM should attempt to offer inventive products and /or services to its customers in order to retain its market share and brand equity. Bargaining Power of the Suppliers Indian furniture industry operates on large number of raw material suppliers from the national as well as from the international markets. Thus, not only domestic availability of raw materials, but also the easier import amenities play a major role in confining the bargaining power of the suppliers. In recent days, varied categories of raw materials can be easily obtained such as rubber wood from Malaysia, synthetic cane from Indonesia and many others. This is because of the fact that excellent quality of wood can be obtained from these areas which might help in development of trendy and designer furnitures, even though the process is quite likely to encourage higher cost as well as socio-economic challenges (International Master of Science in Rural development, 2009). Thus, it can be avowed that the bargaining power of the suppliers is quite lower, which can be regarded as quite beneficial for NEFM. Bargaining Power of the Customers Due to rapid growth of industrialisation, the economic condition of India has changed significantly. Industrialisation enhanced the purchasing behaviour and standard of living of the Indian citizens, which proved beneficial for the Indian furniture industry (Mahmood & et. al., 2006). Besides, due to the presence of limited branded players in the furniture market in structured sector, customers fail to procure high quality and reliable products. In the similar context, due to the presence of IT, customers can easily obtain the best price deal by searching varied types of information. Hence, there are higher possibilities within the customers to switch towards unstructured sector in order to avail the more options in accordance to style or price (International Master of Science in Rural development, 2009). The Threat of Substitute Products or Services In recent days, certain new ideas such as plastic and metal furnitures are also increasing at a rapid pace, which might hinder the prospects of wooden furnitures in its future prospects. Certain factors such as light weight, handiness, easy maintenance of plastic furnitures might motivate the young Indian homemakers to get attracted towards plastic and metal furnitures resulting in downfall of wooden furniture industry. This is due to the fact that in the current trend, most of the Indian families have to shift from one place to another to attain professional opportunities; hence, enhancing the passion for plastic and metal furnitures. In addition, the availability of small living spaces is another vital reason for increasing craze for the plastic as well as metal furnitures (International Master of Science in Rural development, 2009). Thus, in order to retain its position, NEFM should introduce varied innovative products with the purpose of attracting the customers. This can facilitate NEFM to retain its position in the market. Competitive Rivalry In order to substantiate the alternating changes in designs and fashions, maximum proportion of Indian customers are shifting towards the unstructured sector. This is due to the fact that it includes large number of players, which might prove beneficial for the customers in obtaining value added products at cost-efficient prices. Hence, due to limited number of the market players in the organised wooden furniture industry, the extent of competition is also meagre as compared to unstructured sector. Thus, competitive rivalry is quite less (International Master of Science in Rural Development, 2009). Therefore, from the above discussion, it can be revealed that NEFM can become the leader in this industry if it offers high concentration on above described facts. However, it can be possible only by offering convenient, modern and price efficient products to its customers. D. Business Value Chain The value chain is a technique which is utilised by an organisation to enhance the values perceived by the customers with the intention to improve the image of the company along with its profit margin. The value of Indian furniture industry is quite structured, but it is entirely related to the altering inclination and lifestyles of the customers. In the similar context, type and availability of raw materials, professional designers and production capacities are certain factors which help in designing the value chain of the furniture industry. NEFM also offers more concentration towards the quality and design in order to satisfy customer needs and demands which is quite essential for NEFM to sustain in long term. Hence, NEFM principally concentrates on designers, manufacturers and customers. Designers Designers are the most vital components of NEFM’s business value chain, as it attempts to offer inventive products and/or services to its customers. For this reason, it includes an efficient and skilled team of designers and workers. Designers are essential as they are mainly responsible for envisaging and crafting varied product architectures. Besides, NEFM also includes varied designers in order to offer the customers with attractive and stylish furnitures. This is done in order to attract more customers and to retain its brand equity in the market among other competitive market players (New Era Furniture Mart, 2010). Hence, designers play a significant role in the entire process of value chain in NEFM. Manufacturers Manufacturing companies of furniture industry are mainly responsible for sourcing and alternating raw materials into finished products. Manufacturers also attempt to develop the products according to the specifications of the customers in order to increase their perceived reliability. In recent era, manufacturing firms such as NEFM offer more concentration on the quality along with trends of the products. It is essential to enhance customer dependency and consistency over NEFM. In addition, it is quite likely to augment uniqueness of NEFM in the market. Moreover, in recent period, manufacturing firms including NEFM tends to prepare both domestic and commercial products in order to increase its competitiveness. NEFM also offers various other services as well such as wooden partitions, flooring and ceilings in commercial places, which positions itself as a unique manufacturer of wooden furnitures (New Era Furniture Mart, 2010). Customers Customers play a significant role in every modern industry. For this reason, NEFM provides deep concentration on the needs and preferences of the customers in order to present them with quality products. NEFM also promotes its wide variety of products through its websites in order to attract larger customer bases, which is the ultimate objective of NEFM (New Era Furniture Mart, 2010). It would also increase the total sales along with the profitability of NEFM leading to the overall enhancement of its corporate identity and brand value, as can be observed from the figure below (Business Victoria, n.d). Figure 1: Value Chain Model (Source: Business Victoria, n.d.) Hence, from the above discussion, it can be avowed that NEFM should recruit more experienced and skilled designers in its companies in order to provide inventive products to its customers. This can reduce the risk of substitute products. It would also reduce the bargaining power of the customers and suppliers resulting in enhancement of its total sales. Moreover, the barriers for the new players would also increase thereby augmenting total revenue of NEFM. This type of value chain would also enhance the distinctiveness and individuality of the brand. E. Cloud Computing Cloud computing is a technology that utilises the internet and central remote server to preserve vital data and information of an organisation. Cloud computing also permits the customers and businesses to utilise the application by devoiding the access of the personal files in the computer along with internet. Hence, cloud computing can be regarded as a process, in which software or server is not required; only an internet connection is necessary to receive varied information (Information Analysis Centres, 2010). Thus, all the customers can easily access various types of information and facts regarding products and/or services rendered by the organisation, according to their choices, which is quite significant for them. Cloud computing is also similar to grid computing, which entirely relies on the contribution of internet resources rather than personal devices. The prime objective of cloud computing is to offer numerous data and facts in a time efficient way (Information Analysis Centres, 2010). Therefore, the technology of cloud computing might prove extremely beneficial if it is implemented in NEFM. With the help of cloud computing, various information regarding the products and/or services of NEFM such as price, size, colour can be accessed by several customers from diverse locations. Besides, the technology of cloud computing might also enhance the efficiency of NEFM. The management of the company can obtain the rates of various skilled designers and engineers of diverse areas as well, without travelling to that place. NEFM can also gather the information regarding the cost of the raw materials through this technology implementation. Thus, due to the above described reasons, the technique of cloud computing should be introduced in NEFM for the enhancement of its overall business operations. References Ahlstrom, D. & Bruton, G. D., 2009. International Management: Strategy and Culture in the Emerging World. Cengage Learning. Business Victoria, No Date. Schiavello – A Case Study in Furniture Design. The Furniture Production Value Chain. [Online] Available at: http://www.business.vic.gov.au/busvicwr/_assets/main/lib60040/10_schiavello_casestudy.pdf [Accessed April 11, 2012]. Farid, S. S., 2007. Community Based Livelihoods Recovery Program (CBLRP) For Earthquake Affected Areas of Azad Jammu and Kashmir and NWFP. Investment Opportunity Profile For Wooden Furniture Manufacturing In NWFP. [Online] Available at: http://www.unido.org/fileadmin/user_media/UNIDO_Worldwide/Offices/UNIDO_Offices/Pakistan/Wooden_Furniture_Manufacturing_Unit.pdf [Accessed April 11, 2012]. Global Manufacturers, 2012. New Era Furniture Mart. Services Provided. [Online] Available at: http://www.gmdu.net/corp-496953.html [Accessed April 11, 2012]. International Master of Science in Rural Development, 2009. Market Strategy of Home Furniture in India. Investment Potential Study Indian Home Utility & Furniture Industry. [Online] Available at: http://www.docstoc.com/docs/76079233/Market-Strategy-of-Home-Furnishing-in-India [Accessed April 11, 2012]. Information Analysis Centres, 2010. Cloud Computing: Silver Lining or Storm Ahead? IAnewsletter. Vol 13.No. 2. Mahmood, Q. S. & et. al., 2006. Furniture market in India: Evaluating a potential market. Malardalen International Master Academy (MIMA). [Online] Available at: http://www.eki.mdh.se/uppsatser/foretagsekonomi/VT2006-FEK-D-1397.pdf [Accessed April 11, 2012]. New Era Furniture Mart, 2010. New Era Furniture Mart. Office Furnitures. [Online] Available at: http://www.nefm.co.in/office-table.php [Accessed April 11, 2012]. New Era Furniture Mart, 2010. New Era Furniture Mart. Office Interiors. [Online] Available at: http://www.nefm.co.in/flooring.php [Accessed April 11, 2012]. New Era Furniture Mart, 2010. New Era Furniture Mart. About Us. [Online] Available at: http://www.nefm.co.in/aboutus.html [Accessed April 11, 2012]. Portal UEA, No Date. Furniture Industry in Restructuring: Systems & Tools. Guidelines on Managing the Process of Change of the Furniture Manufacturer. [Online] Available at: http://www.ueanet.com/first/guidelines/first_managing_process.pdf [Accessed April 11, 2012]. Read More