SystemX Inc. Withdraws Rs. 1 Billion SoftGuide Acquisition offer the following is an excerpt from a news article in the Daily Update, March 07, 2010 “SystemX Inc., called off its acquisition of SoftGuide Knowledge Consultants, Friday, saying that 1 Billion was too high a price.” (SoftGuide has a considerable market share in Training and development services and would therefore help SystemX to diversify and expand its range of services to customers.) “Although SystemX officials would not comment further, several observers said that problems discovered at SoftGuide probably lay behind the decision…. The article said that SystemX feared that SoftGuide’s data-processing system was inadequate to handle the new products planned for the SoftGuide sales staff. SystemX officials were also concerned about the 30 percent annual turnover among sales personnel… Tabrez A., SoftGuide CEO, responded that the SoftGuide’s data-processing was quite competent and has absorbed at least one new product a month for two years.”
a.Why should SystemX be so concerned about the capabilities of SoftGuide’s data-processing? - Because SystemX need an enough data processing system to ensure high quality service. It would not be able to cater to the needs of the SofGuide sales staff which would then result to loss of profits. b.What competitive advantages to a Training and Consultancy services company may be provided by an information system? -Information system is an combination of information technology and people's activities that support operations, management and decision making so the Information System enhance or empower the user of system do their task fast, efficiency and effectively.