Lanacorp Swot Analysis

Over the last few years LanaCorp’s profits have been down while IT expenditures have significantly increased. Recently, some concerns have arisen regarding the company’s expenditures. I was tasked to determine the total cost of ownership per PC. Should the total cost of ownership exceed the breaking point, a decision must be made regarding employee and budget cuts. Per our CEO, the company’s break point is $5,300. I have created a Total Cost of Ownership spreadsheet that takes into account general organization information, direct, and indirect costs to calculate the total cost of ownership per PC. This calculator will provide a more accurate cost analysis. It has been set up in such a way that any data changes will automatically update the
We considered hardware and software cost, management and staff salaries, other expenses, development cost, communication cost, annual cost of end user activity, and cost of downtime. The hardware and software direct costs included expenses, annual computer supplies, minus the annual depreciation on hardware and software capital purchases. This amounted to a total of $761,325. Management and staff salaries plus 30% of overhead that accounted for salary increases was also taken into consideration, which amounted to $1,122,177. Other expenses included traveling costs, consulting and professional service fees related to infrastructure, training costs for infrastructure personnel, maintenance contracts, and outsourcing costs which totaled to $227,500. Development costs, which consisted of the design, development, testing, documentation, maintenance for existing applications, and consulting and professional services, added up to $287,500. Communication costs included leased lines, remote access communications, and annual WAN costs and equaled to $434,000. After adding all of these costs, total direct costs came out to $2,832,502. Indirect costs included end user activity and downtime. Total indirect costs amounted to $1,725,394. By dividing the total annual infrastructure costs by the total number of personal computers, we concluded that the total cost of ownership per PC is
LanaCorp spends a total of $1,369,187 a year on end user IT activity. About 62% of that cost goes directly to PC user training. Rather than train everyone, we can reduce training cost by only training those who absolutely need it. Another option is to incorporate e-training where the staff can go at their own pace. This will streamline the training process, reduce training costs, any additional costs associated with setting up training sessions, and possibly travel