1. 4 organizational information cultures are information-functional culture, information-sharing culture, information-inquiring culture and lastly information-discovery culture. For Information-Functional Culture the employees use the information as a means of exercising influence or power over others. As an example the sales manager does not want to share the information that they had with marketing department, As a results the marketing department need the sales manager's information each time a new sales strategies is developed. Next, Information-Sharing Culture the employees across departments trust each other to use information especially about problem and failures in order to improve the company performance. Then, for Information-Inquiring Culture the employees across the departments search for information to better understand the future and align themselves with current trends and new direction. Lastly, Information-Discovery Culture the employees across the departments are open to new insights about crisis and radical changes and ways to create competitive advantages.
2a. 3 Porter Generic Strategies are cost leadership, differentiation and focused strategy. For cost leadership, becoming a low-cost producer in the industry allows the company to lower their prices to customers. Competitors with higher costs cannot afford to compete with the low-cost leader on price. Meanwhile in differentiation, create competitive advantage by distinguishing their products on one or more features important to their customers. Unique features or benefits may justify price differences and/ or stimulate demand. For example Proton I-Care. Lastly, for the focused strategy, it will target to a niche market and concentrates on either cost leadership or differentiation.
MAR 2012
QUESTION 2.
5 forces in Porter's Five Forces Model are :
- Buyer Power
- High = When buyers have many choices from whom they want to buy
- Low = When their choices are few.
In order to reduce buyer power and create a competitive advantage, an organization must make it to be more attractive in order to attract customer to buy from them and not from their competitors.
The best practices of IT- based is through the loyalty program in travel industry. As an example a reward on free airline tickets or hotel stays.
- Low = When their choices are few.
In order to reduce buyer power and create a competitive advantage, an organization must make it to be more attractive in order to attract customer to buy from them and not from their competitors.
The best practices of IT- based is through the loyalty program in travel industry. As an example a reward on free airline tickets or hotel stays.
- Supplier Power
- High = when buyers have few choices of whom to buy from.
- Low = when their choices are many.
The best practices IT to create a competitive advantage is :
- B2B Marketplace = a private exchange allow a single buyer to posts it needs and then open the bidding to any supplier who would care to bid.
- Reverse Auction = an auction format in which increasingly lower bids will win.
- Low = when their choices are many.
The best practices IT to create a competitive advantage is :
- B2B Marketplace = a private exchange allow a single buyer to posts it needs and then open the bidding to any supplier who would care to bid.
- Reverse Auction = an auction format in which increasingly lower bids will win.
- Threat of Substitute Products and Services
- High = when there are many alternatives to a product or services
- Low = when there are a few alternatives from which to choose.
Usually, an organization would like to be on a market in which there are a few substitutes of their product or services. As an example is an electronic product that has the same function but they come from different brands. In order to overcome this obstacles is by implementing the switching cost that is a costs that can make the customer to feel reluctant to switch to another product or service.
- Low = when there are a few alternatives from which to choose.
Usually, an organization would like to be on a market in which there are a few substitutes of their product or services. As an example is an electronic product that has the same function but they come from different brands. In order to overcome this obstacles is by implementing the switching cost that is a costs that can make the customer to feel reluctant to switch to another product or service.
- Threat of New Entrants
- High = when it is easy for new competitors to enter a market.
- Low = when there are significant entry barrier ( a product or service feature that the customers have come to expect from an organization and it must be offered by entering organization in order to compete and survive ) to entering a market. As an example a new bank must offers online paying bills, account monitoring in order to compete with the other existing bank.
- Low = when there are significant entry barrier ( a product or service feature that the customers have come to expect from an organization and it must be offered by entering organization in order to compete and survive ) to entering a market. As an example a new bank must offers online paying bills, account monitoring in order to compete with the other existing bank.
- Rivalry among existence competitors
- High = when competition is fierce in a market
- Low = when competition is more com placement
Existing competitors are not much of the threat as each of them has found their "niche". However , if there is changes in management,ownership, or " the rules of the game " it can give a serious threat to long term survival from existing firms.
- Example : the airline industry faces serious threat from airlines operating in bankruptcy, who do not pay on the debts while slashing fares against those healthy airlines who do pay on debt.
- Low = when competition is more com placement
Existing competitors are not much of the threat as each of them has found their "niche". However , if there is changes in management,ownership, or " the rules of the game " it can give a serious threat to long term survival from existing firms.
- Example : the airline industry faces serious threat from airlines operating in bankruptcy, who do not pay on the debts while slashing fares against those healthy airlines who do pay on debt.
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