H. A. LOGEN & Sons
Information Systems and Management
The reports sets about assessing HA Logens current business operation both in the UK and India, this done by utilising three analysis tools, SWOT analysis, PESTEL analysis and Porters Fiver Forces analysis. From the SWOT analysis the reports highlights several key points, which includes the potential of overseas sales in emerging economies and the benefits of having manufacturing faculties in India. The lack of developed e-commerce and the poor utilisation of information technology advances have been highlighted as one of the biggest weakness of HA Logens. The PESTEL analysis has shown that while traditional consumer (local councils) have less money to spend and sales may decline in the short term, the opportunities from a new ‘Affluent Achievers’ market holds great promise. The desire for going ‘green’ in both social attitudes and wider environmental laws is also an opportunity that can be exploited for HA Logens gains. Porters Five Forces has highlighted that threat of new entrants is high because the Entry barrier is high as many competitors try to earn market share in the business of street furniture. The bargaining power of buyers remains high due to councils trying to get the lowest price possible and high number of competitors. The threat of intense segment rivalry is also high because of rival companies who are sharing / or trying to enter the same market. Threat of substitute products remains low because of the high saturation of competitors producing similar products. Bargaining power of suppliers is also low thanks to the adduce of manufacturers offering highly competitive prices and low specialization within the market. A new IT portfolio has also been recommend for HA Logens to implement, this includes a complete overhaul of the current ageing IT systems and new website as long as an active social media engagement. A new ERP is vital for HA Logens future and it has been recommended that SAP be implemented across the company and a new website that will help increase sale within the ‘Affluent Achievers’ market. The risks of implementing such changes has also been factored in and explored in details, with the potential of possible issues occurring, such as staff training and skills. The effect that the new portfolio will have on both the suppliers and customers of HA Logens has also been explored and in conjunction with the implementation timeframe, has highlighted the need for a well organized and structured phasing to the new systems. The recommendation is that HA Logens take a multi phased approach to implementing the new systems that includes a pre-stage of evaluation of staff and their ability to use the new systems and a comprehensive training program . This will be followed by a trial run of the new systems, a soft and partial changeover and then finally a complete switch to the new system, whilst keeping the old systems for 2-3 months as a backup. Following the situational analysis of HA Logens current business and the assessment of its IT requirements, our recommendations on what HA Logens requires for the future will allow it to succeed and grow into new markets and remain profitable for the following years.
1. Situational Analysis and Strategic Direction
1.1. SWOT Analysis
As it can be seen from the above table, H.A Logen & Sons, are in an advantageous situation compared to other companies, especially in the United Kingdom. The fact that the company was established since 1952 and has shown stability economically through time allows the opportunity to create a very strong and powerful name. The brand potential can allow immediate expansion and takeover of the U.K market merely due to its relationship with the local councils and the existing top of quality product range they have. The market is growing and the low competition may allow the...
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