The Key Aspects of Managing Information Systems - Essay Example

Management Information Systems (Mis 601) Name Tutor Institution Date Definition business -type Angelo coffee enterprises major on the production of coffee brands on varying quality to the market. The luxury availed and the tastes vary in the same way. The business has identified very typical scenario in the marketing arena which has entailed locating itself definitely in the marketing sphere (Hax, 2010). Fig. 1 Angelo coffee trade brand With regards to Porter’s three generic strategies the business focuses on implementation of an outlined three generic strategies including cost leadership, notable differentiation, and eventual focus are emphatically included along with the recompenses and risks inherent with each premeditated option. Competitive strategies focal point on ways in which the enterprise would achieve ultimate advantageous position is perhaps in its industry. The realization of profit for the enterprise company is essentially based on the disparity between its income revenues and costs. Consequently high profitability is achieved through facilitating and achieving the lowest costs or the uppermost prices vis-à-vis the rivalry. Application Porter entailed the specific terms ‘cost leadership’ plus ‘differentiation’, in which the latter is the technique in which assorted companies earn a price premium. This company has the ability to achieve competitive advantages fundamentally by differentiating its products and services from those of close competitors and through low costs. This firm is hence placed to target its products by a wide target, thereby creating and covering most of the marketplace, or even facilitated a focus on a slim target in the market (Siegemund, 2008). Consistent with porter, the three generic strategies that any company can assume to attain competitive benefits are cost leadership, differentiation, and eventual focus. With regards to Cost leadership, the company has aimed and attempted to become the least-cost producers in a business industry that can be referred to as typically following a cost leadership scheme. The corporation adopts a policy of lowest costs and thus would earn the maximum profits in the happening when the competing products are basically undifferentiated, and trading at a benchmark market price. Ritualistically companies adherently following this strategy position emphasis on cost diminution and reduction in every activity in the value entailed chain. It is imperative to note that the company could opt be a cost leader but that this does not unavoidably imply that the enterprise’s products would have a low expected price. In convinced instances, this company has even rethought on charging an average price whilst fervently following the low cost leadership entailed strategy and plough back the extra profits into the production. We have adopted the cost leadership strategy and associated with other companies attached to the idea thus creating essential emphasis on eventual data gathering from other companies that have adopted the policy. The menace of adhering to the cost leadership strategy felt is that the company’s spotlight on reducing costs, even occasionally at the expense of other critical factors, may become so prevailing that the company may even lose vision of why it typically embarked on one such approaches in the first place. This firm also acknowledges the essence of differentiation and its regards in the business atmosphere. When this company undertakes a differentiation of its products, it is habitually able to charge a quality price for its ascertained products or entailed services in the local market. The enterprise has incorporated critical subsectors including superior service stratums to customers, enhanced product presentation and many other factors in comparison with the regionally existing competitors. Porter has inherently argued that for a corporation undertaking a differentiation approach, there would be expected extra costs that the company typically would have to acquire. Similar to the business enterprise, such scenarios have been encountered due to the elevated advertising expenses to support a differentiated brand representation for the product, which in fact is considered as a cost and an entailed investment. The business entity similar to the McDonalds, for instance, is differentiated by it’s exceptionally brand name and its consequent brand images of white cup and saucer plate. Differentiation has presented many advantages for this business organisation which makes entails the strategy. The commonest problematic areas as notable include the complicatedness on part of the firm to approximate if the extra costs included in differentiation can truly be recovered from the purchaser through finest pricing. Notably, triumphant differentiation strategy of the firm has attracted competitors to penetrate the company’s market section and duplicate the differentiated product. While noting the essence of focus, the company identifies the roles of Porter originally presented focus as an entity of the three nonspecific strategies, but later acknowledged focus as a moderator of the sectional two strategies. This company utilize this strategy by directing focus on the regions in a market where there is the slightest amount of antagonism. The organisation has applied focus strategy by imparting focus on a precise niche in the market and availing specialised merchandise for that niche. This is borrowed with regards to essence that focus strategy is also referable to as niche strategy. Therefore focus strategy has been influential in attaining competitive advantage for this company. Due to historical and inherent challenge encountered before, a company applying the cost focus strategy aims for a cost advantage in its target subdivision only which is the same consideration the company has applied. In case this company would apply the differentiation focus approach, it would ultimately aim for differentiation in its objective segment only, and not the total market. This scheme provides the company the likelihood to charge a premium price for better-quality quality (differentiation focus) or by creating low price product to a diminutive and specialised cluster of buyers (cost focus). Other companies have adopted niche playing in the industry including Ferrari and Rolls-Royce who are the best examples in the contemporary society and the entire automobile industry. Similar to these companies who have niche of premium products obtainable at a premium price the enterprise has imparted control over the external market. Moreover, it has a small percentage of the global market, which is attribute characteristic of niche- oriented players. The drawback of the focus strategy in this case however, is that the niche routinely is miniature and may not be note worthily or large enough to validate a company’s consideration. The company also realizes that focus on costs is thorny in industries where there is consideration on economies of scale play an imperative role. The business realizes the contemporary and evident danger that the niche vanish over time, as the business atmosphere and customer preferences transform over time. The company has essentially realized that company’s letdown to make a option between cost leadership and differentiation fundamentally implies that the corporation is stuck in the core. There is no notable competitive advantage for the company that is stuck in the centre and the result is often unfortunate financial performance (Miller, Brutigam & Gerlach, 2006). The major and main divisions in Angelo coffee organization Angelo coffee has a list of professional and personalities forming the skeleton that operates and operates it. The g managing director (MD) inspects all the sector of the company expressing critical attention to the well and deliberate structures well placed in control of the company (Hax, 2010). The companies’ Technical manager has a grave and interesting responsibility, without considering the type of company he conducts his work for and what extent of group he manages. Recurrently, a technical manager has two main segmented roles as technical and management leader. The accomplishment of his squad depends on how he undertakes balances on two and keenly keeps up with the elevated demands of the fast-rated atmosphere that his team members’ supports. Classically, Angelo coffee technical manager lead technical development actions. He tends to possess a towering degree of knowledge in a given various technical area, for instance software advances or electronics manufacturing. He is well backed up by a collection of members who sit and write software codes, for example, but he is always the leader to the team developing various computer codes. Broadly, Angelo coffee technical manager fill both executive and technical specialist roles. He further looks at providing support to having computer or other technological difficulties, Hiring and training staff or facilitate in making hiring decisions , supervision of information technology (IT) team, evaluate project proposals and appraise feasibility, create up ideas for strategically improving technical products of the company. The company has a position for supply Chain Manager who holds a tremendous role in creating impact on the accomplishment of an association. These managers are occupied with thoughts in every facet of the industry process – planning, acquiring, purchasing, manufacture, transportation, storage process & distribution, aligned customer service, and many more functions. For Angelo coffee, the supply manager is“glue” that links the different parts of the group. His or her performance aids organizations control expenses, enhance sales, and capitalize on profits. Two extra roles focus on facilitation and partnership. Since the supply chain manager contacts so many dissimilar parts of the enterprise, he is in a unique location to help other functions, operate and execute their strategies. The supply manger is also called upon to make a diagnosis and support the needs of outside supply chain partner’s members. Here is a list of other examples of his cross-functional roles in Angelo coffee. Effectual selection and administration of suppliers sustain lean manufacturing processes. Resourceful transportation & allocation practices bolster selling campaigns. Appropriate customer communication and aligned technology-enabled visibility appropriately allows companies to supervise product flows and collaboratively react to potential delivery predicaments. The roles of the Angelo coffee human resource manager entails a changing position as deemed fit the needs of today's contemporary, fast shifting organizations. As compared to earlier roles of the HR where they majored on accounting, the HR role was highly focused on administrative duties such as paying company employees, administering reimbursement, and keeping trail of sick and private days off. More complete approach to the administration of people in the organization is well looked by the human resource manager. Programs and entailed processes that methodically hire employees, retains talented employees, and subsequently deal with all region as touching on aspects of talent and skill management evolved and produced in this unsurpassed organization. The role of the Angelo Coffee HR’s position holder has since evolved again. Still accountable for the managerial tasks and the entailed programs and processes linked to people, the finest HR professional is typically now principal and in-charge. The HR is currently concerned with mounting systems and processes inside the organization that concentrate on the premeditated needs of the entire business. Typically, what was once the job of ensuring and hiring employees is now the role of team-based hiring of the preeminent possible gifted employees who are well recruited via methods that changes from worker referrals to wide social media sourcing process (Miller, Brutigam & Gerlach, 2006). These workers are also harmonious with the company's established culture. This is pretty a different voyage, one that perpetually continues to strategically evolve. On the other hand, the company has a financial controller that is also referred to as "comptroller who is the lead accounting manager in the company. The controller’s duties can fluctuate depending upon the projects undertaken in the company, the intricacy of accounting and fiscal operations and the numeral figure of people working in the accounting section. The companies’ controller presents financial leadership and is influential in forming well established accounting strategies. A controller's responsibility, especially in lesser companies, can comprise broad farsighted responsibilities and hands-on management. The role of the marketing manager for most businesses, there are several different organizational approaches to marketing. The duty may lie with a single member of the team, or it could be a group responsibility. The great thing about a small team is the ability to quickly instill a marketing financial manager for Angelo coffee has additional roles varying with budget availability and the notional skills of the team he heads, he may desire to outsource some elements of the marketing oriented process (like market research) or settle on to undertake these jobs in-house. Notable marketing manager key roles vary consistent with business or project but can includes instilling a well defined marketing led ethos all through the business, undertaking researching and proper reporting on the external opportunities, comprehending current and possible customers, administration of the customer expedition (customer connection management), increasing the marketing policy and plan, organization of the market mix, running agencies, undertaking measurement of success, overseeing the management budgets, undertaking and ensuring timely delivery, facilitating writing copy, entailing Approving images, making developing guidelines and eventual making customer focused decisions (Miller, Brutigam & Gerlach, 2006). MIS division is helping similar organizations to generate business intelligence and achieve competitive advantage. Angelo coffee benefits extensively from MIS in generation of the intelligence and achieving of competitive advantage through business intelligence (BI), maximum technology infrastructure for obtaining maximum information from existing data for the rationale of respectively improving business processes. Emblematic BI infrastructure mechanisms are as mainly follows: software entailed solution for gathering, heightened cleansing, integrating, and facilitation of analysis and well sharing of data. Angelo coffee opts for Business Intelligence superiority since it produces elaborate analysis and provides plausible information to aid in making effective and lofty quality business entailed decisions. With regards to analysis of the essence of the business intelligence, critical representations, tools and corresponding systems play principle role in the strategic preparation process of the business. These systems permit the company to gather, amass, access and examine corporate data to assist in decision-making. normally these systems illustrates business intelligence in the regions of purchaser profiling, customer sustenance, market research, market aligned segmentation, product- oriented profitability, elaborate statistical analysis, and corresponding inventory and delivery analysis to name a few. Various companies gather a large amount of data from their corresponding business operations. To directly maintain track of that entailed information, the business typically need to use a extensive range of software programs, for instance Excel, Access and dissimilar database applications for a variety of departments throughout their association. Using manifold software programs makes it complicated to retrieve information in a appropriate manner and to execute analysis of the data (Färe, Grosskopf & Lovell, 1985). The company has also recognized the essence of the MIS in extracting imperative data from it wide range of raw data to reveal insights to assist a business make earlier and more precise decisions. The software classically integrates data from transverse enterprise and ensures critical provision to the end-users with self-service coverage and analysis. BI software applies a number of analytics and essential features including elaborate statistics, data and proper text mining and all predictive analytics to expose and reveal patterns or turn information into proper insights. Typically business Intelligence systems entailed by Angelo coffee are: Executive Information Systems also abbreviated (EIS), Decision Support and Systems (DSS), Management Information Systems (MIS), Geographic Information Systems (GIS), online assertive Analytical Processing & multidimensional analysis (OAPM) and Customer Relationship Management (CRM). The company invests in well defined and elaborate business Intelligence systems basing on contemporary Data Warehouse technology (Färe, Grosskopf & Lovell, 1985). Angelo coffee Value Chain and Porter’s Five Forces analysis Borrowing from Five forces representation created by M. Porter in 1979 to appreciate how five key spirited forces are distressing an industry. The five forces recognized by Angelo coffee includes. Efficiency and effectiveness of business in your organization and recommendations Efficiency and effectiveness of business in this organization and recommendations entailed are notable. The consideration for liquidity, solvency, profitability and efficiency are the most crucial tools aimed at arriving on the most deliberate effectiveness on this business and entirely rolling out the extensive and well elaborate details and recommendations on the business plan. The typical and common liquidity ratio is conventionally the current ratio, which stands for ratio of outlined current assets to the corresponding current liabilities. This notable ratio avails a company's aptitude to pay its short-term aligned bills. It is recommended that a ratio of larger than one is frequently a minimum because things less than one read that the company has larger liabilities than assets. A towering ratio indicates extra safety cushion, which elevates flexibility because segments of the inventory items and entailed receivable balances is not easily convertible to cash. Another measuring tool for the Angelo coffee business outcome is solvency. Solvency ratios specify financial steadiness because they determine a company's debt comparative to its assets and entailed equity. A company with too a lot debt may not have the elasticity to supervise its cash flow if related interest rates ascend or if business conditions depreciate. The widespread solvency ratios are typically debt-to-asset and related debt-to-equity. Related profitability ratios specify management's capability to convert sales accrued dollars into outlined profits and corresponding cash flow. The ordinary ratios are notable gross margin, normal operating margin and total net income margin. The whole gross margin is notational ratio of desirable gross profits to comparative sales. The entire gross profit is equivalent to sales less cost of goods well sold. The notable operating margin is the fraction of operating income to sales and corresponding net income noted margin is the ratio of expected net income to the eventual sales. The sufficient operating profit is normally equal to the entire gross profit less operating expenses, whilst the net income is equivalent to the entire operating profit less interest and taxes. Other notational regards for the business plan measurement is the outlined return-on-asset notational ratio, which normally is the ratio of accumulated net income to total assets and outlined the company's elaborate effectiveness in process of deploying the assets for generation of profits. Efficiency tool is the last method of measuring success of Angelo coffee two ordinary efficiency ratios are notably inventory turnover and appropriate receivables turnover. Notably Inventory turnover is conveniently ratio of cost of all goods sold to the entailed inventory. An elevated inventory turnover ratio indicates that the company is triumphant in finally converting its inventory into corresponding sales. Conventional receivables turnover ratio is equivalent ratio for credit sales to entire accounts receivable, which normally tracks exceptional credit sales. A towering accounts receivable turnover exposes that the company is flourishing in collecting its exceptional credit balances. References Färe, R., Grosskopf, S., & Lovell, C. A. K. (1985). The measurement of efficiency of production. Boston: Kluwer-Nijhoff Pub. Siegemund, C. (2008). Blue ocean strategy for small and mid-sized companies in Germany: Development of a consulting approach. Hamburg: Diplomica-Verl. Hax, A. C. (2010). The delta model: Reinventing your business strategy. New York: Springer. Miller, G. J., Brutigam, D., & Gerlach, S. V. (2006). Business Intelligence Competency Centers: A Team Approach to Maximizing Competitive Advantage. Hoboken: John Wiley & Sons. Read More