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Critique about information system - Article Example

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LPL Financial in its quest for success and expansion has adopted few strategies that have seen it experience a dramatic growth over a small period of time. Though these strategies may have worked in the short run, the institution is treading on the very dangerous grounds and the…
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Critique about information system

Download file to see previous pages... For a business entity to be successful, there are many elements that come into play. They range from political, economic, social and technological factors. LPL Financial is mostly concentrating on the latter while it has entirely neglected the other equally important elements that are classified as the macro environment. This is the wrong approach that it adopted.
First of all, the company has too many advisers. 13500 advisers is a huge number for one business no matter how big it may be. The argument that may be brought forth is that the more advisers for a company the more it is likely to achieve its goals, because with many experts nothing can go wrong. However, what this business does not know is that a huge chunk of their revenue is used in servicing the salaries of these professionals. Expert advice does not come cheap and for a company that is in the process of expansion, this is a very bad move.
Secondly, the company is also relying on 700 institutions’ opinions before it can make a decision. This is a clear contradiction because the business claims to be a leader in discovering new trends. Successful businesses do not rely on others, others rely on them. The business should concentrate on coming up with new inventions and the 700 institutions that it relies on will start relying on it. Being a slave for other institutions will result to bullying. Take for instance, several institutions decide to change from one line of product to another. LPL Financial will respond by restructuring its business to suit these institutions, but this is an expensive venture and may take a long time to recover the finances used.
Lastly, the business has designated too much power to the employees. Allowing workers to come up with different inventions and thrive is not a bad thing, is it? The problem is the management does not come into the picture. What is their role in all these? Do they even have work? Allowing different ...Download file to see next pagesRead More
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