Current Strategies In MDCM

Current Strategies In MDCM

MDCM is currently facing institutional problems and accordingly, the company has to change most if not all of its strategies. Entry of multinationals in the market proved a challenge to the company given that it could not match the globalization advantage of the new entrants. In order to counter the problem MDCM management sought to spread into new markets through the art of acquisitions. For that reason, the company acquired a score of many out of the country companies that according to its view were capable of offering products similar those of the corporation. Though the company became the largest medical devices organization as a result, it registered losses due to lack of good strategies to manage oversees companies. Currently, the organization’s strategy is harmonizing the operations oversees with those at the headquarters. Lack of proper information flow is costing the company a lot resources prompting urgent intervention by the information technology experts to better the condition.

In the light of this, the company made a new appointment to the bulkpost of Chief Information Officer. He has to develop IT strategies that are in line with the current organization strategy of achieving a competitive advantage against competitors and turning around the company’s fortunes from losses into profits. Studies indicate that the current contributor to the disaster that the company is facing is lack of proper information flow and weak financial systems. The new CIO has the mandate of ensuring that the current sophisticated system achieves its intended objective without compromising the quality of services and products offered by the company. Accordingly, IT department has to streamline the operations all the systems and avoid having numerous systems that negatively affect the operations within the company. Overall, the company’s current strategy majors on turning around the fortunes of the company into a profit-making venture. However, correct procedures need following if the organization is to achieve set objectives.

The competitive environment

Analyzing the competitive environment surrounding the company the most notable is the entry of new players into the industry. Initially, MCDM was not receiving considerable competition from players in the industry. However, multinationals entrance into the market became a new threat to the existence of the company. Before their entry, players from other companies could not match up to the competitive advantage enjoyed by the company. New entrants had a competitive advantage over the company given their globalization experience. In order to curb this problem, the company did seek entry into new markets but since starting from scratch is difficult, they resorted to acquisitions. Consequently, another issue emerged acquisitions came with new organizational cultures needing harmonization. As a result, though the company thought that acquisitions would give the organization a competitive advantage. Hence, competition is still persistent and the company has to harmonize the cultures of different companies from different countries.

Entrant of new players led to customers gaining pricing powers. Customer power of pricing is another way of defining competition in the environment that the company is operating. The result of entry of new players in the industry is that more options are available for the customers. An example is that when multinationals entered the industry the consequence was a loss of three of the key customers of the company. Due to increased choices, customers became sensitive to price changes introduced hence and time the company sought to increase prices it would end up being too expensive for the company. This is because customers would resort to other cheaper products from competitors. For the company to overcome this challenge the only remedy is to offer differentiated products to the customers in order to set apart their products from those of rival companies. However, improving technology in order to produce quality products at affordable prices is another way of ensuring the company remains competitive.

Finally, the third of the porter five threats is the suppliers. MDCM seems to have had thousands suppliers that were unnecessary. Consequently, the company did make pacts with the remaining suppliers, which might work to their advantages. The threat posed here is the likelihood of suppliers ceasing to supply products to the company over prices conflict or even more paying customer that are potential competitors. Previously, the company had the challenge coordinating the supplier since they were too many. Nevertheless, lately the company’s strategy of cutting down the number of suppliers might work to their advantage. Now, it is easy to monitor operations of the suppliers from the headquarters regardless of the location of the company they supply. Although the dangers posed by suppliers are difficult to predict, the presence of better mechanisms of monitoring them gives MDCM a competitive advantage over other players of the industry.

IT Objectives

IT is very essential in any company if systems in that company are to remain effective. Appointment of a new Chief Information Officer in the company is not sufficient solve the current predicament. In addition to the new CIO, the company requires more resources channeled towards the sector. Among the required resources in the company, include computing hardware and software, messaging system, a website, data warehouses, and networking facilitators. The need of having newer and up to date networking software is for ensuring that communication between the company and its subsidiaries flows effectively. Resulting from such an endeavor is that there will be value addition to the organization’s products. Good networking ensures that the organization caters for the changing customer preferences first hand since various branches are able to communicate in time. Accordingly, cost of operation will reduce drastically enabling the company to pass on the reduction to its customer.

MDCM Inc currently uses numerous systems across different branches. This condition is unfavorable to the cost effectiveness of IT technologies. Because of having different operating systems, the company incurs system support cost that is avoidable. Furthermore, various operating systems results into increased cost of maintenance as evident in company. According to the report, maintenance uses up to 80% of the funds allocated to the IT department. Hence, the company needs to standardize the operating system in order to have one functional operating system in all its departments. Investment towards software and hardware will also ensure that the company buys hardware that finds application in many areas. Having the appropriate hardware compatible with a number of operating system ensures cost effectiveness since some departments require sophisticated software for good results. Consequently, the company should purchase additional hardware to complement the existing hardware. Furthermore, adoption of a single operating system will ensure such as Microsoft Windows improve networking while at the same time reducing its cost.

Given any organization, data storage plays an effective role in decision-making and reflections of the past in any company. However, it is evident that MCDM way of storing data is manual leading to complain by the company’s COO. Manual mode of data storage is expensive and ineffective hence the need of a data warehouse within the organizations databases. Creation of a data warehouse will ensure that there is easy storage and retrieval of data. Moreover, there will be improvement in the customer service delivery through the increase of its efficiency. However, this alone cannot be useful without implementation of a new messaging system. Currently, the organization uses a number of messaging services without harmony the results of this is that communication with subsidiaries is poor. To improve communication and efficiency in the customer service delivery the company has to harmonize its messaging system. Using a standard system such as POP3 will curb the problem experienced by its subsidiaries because of outdated different systems.

The company currently lacks an appropriate website of transacting business successfully. Customers are not able to place orders online without necessarily having to visit its branches. Developing a website will add value to the company’s products since customers will find it faster and cost effective to transact business online. Those not aware about the company will get information of the organization from its website and evaluate the possibilities of engaging in business with the company. MCDM will as a result gain competitive advantage over all the other players in the industry, which is the desire of the company currently. The above name IT objectives of the company will need surveillance and to that effect there is need for a scorecard to monitor the progress each of the changes brings into the company. This will assist evaluate the effectiveness of the various projects undertaken by the organization.