Swot Analysis In Action Skoda Strategic Information Management Marketing Essay
Information Technology and Information System is the fundamental tool for conducting a business as it is the necessary part of the modern world. Not only in the business world but also in the other particular circumstances like medicine, teaching, travelling and also to conduct a war this may cause as a main part by giving all relevant information. The basic definition of Information System is; “as one the collects, processes, stores, analyzes and disseminates data and information for specific purpose” (Turban et al. /2008). Information System refers to the communication or collaboration between business process and technology. The definition of Information Technology is “the technological side of information system” (Turban, et.al /2008). Information Technology includes hardware, software, databases, networks and other electronic devices. In this report I am going to give a brief description about how IS/IT strategies can help to the success of an organization. As well as describe an analyse about the Barclays Bank PLC and the primary internal, external influences. In addition to that in few world’s leading companies will be taking in to consideration in order to study how they use CRM in their organization to make sure high satisfaction of their customer as well as how they get benefits from CRM (Customer Relationship Management).
When we considering about the modern world there is a huge competition between organizations. Therefore all organizations should have to use there IS/IT Strategies because of the competition between these organizations. So that the competitors of organizations should be efficient and should have a large view about how to use these strategies accurately to succeed with goals and objectives of their organization. The way which they can achieve their objectives because they have competitive advantage like cost leadership and the product differentiation. According to the Gregory Persons (1983) IS strategies can be divided to 6 parts; such as centrally planned, leading edge, free market, monopoly, scarce resource, necessary evil (Robson W. /1997). An organization can be succeeded by completing the above 6 strategies which I have mentioned.
According the success of a business; internal and external influences are mainly cause as creative factors in an organization. Internal factors are controllable and variable. Such as; strength of an organization’s weaknesses, opportunities and threats (named SWOT). Swot analyse is scheduled to know how acts the internal factors for a business. Because internal influences are some factors which preceded a business for llthe success. Wendy Robson stated that “A SWOT analyse is a reminder of the need for balance and attempt to judge the options available” (Robson W. /1997). The Information System (IS) is affected by SWOT techniques to aware from the risks involved. As I early mentioned in this report is briefly described about Barclays Bank PLC and their SWOT analyse.
ABOUT BARCLAYS BANK PLC
Barclays sports more than 1,700 branches in the UK and some 2,000 more in Europe, Africa, Asia, and the US. The bank's offerings include personal financial services (savings, checking, and consumer loans); corporate banking; insurance; mortgage lending (Woolwich); and credit cards (Barclaycard). (Answers.com/ Barclays/ online/ 14 /01/2010).
According to the research so far I had done I found some important SWOT factor Barclays Bank PLC get through using efficient IS/IT strategy .
Barclays is highly combined with new technology. It brought out their first credit card in 1966. Since that time they always try to develop their service through technology. As a result of that most recently they introduced the one plus card combing oyster, cashless and credit functions for London – based customers. In addition to that they maintain online banking (e- banking) and phone banking for their customers. (Business Teacher/ online/ 20-01-10).
Barclays has a widespread global presence, it allow spreading risk and gat comparative advantages through economies of scale. Such as global retail banking, corporate and investment banking, group centre, Absa.
The Barclays brand is well-established historically and continually promoted, for instant sponsorship of Premier League football.
The maintaining several flagship branches and keep continues refurbishment programme increase customer demands and attraction. (Business Teacher/ online/ 20-01-10)(The Times 100/ online/20-01-10)
Large bonuses for Directors have attracted unwanted attention from commentators, UK government and stakeholders.
Some of their service provided activates generated controversy and raised questions about their ethical position.
Barclay’s dividends paying policy also less attractive to investors. (Business Teacher/ online/ 20-01-10)(The Times 100/ online/20-01-10)
The Barclay’s acquire policy was gain advantage for them. It allowed them to move any kind of business areas. For examples Barclays acquire some of Lehman’s assets after that company collapse.
The Barclay’s strategy is capable to provide worldwide services through wide range of cross selling opportunities.
Asia is considered an opportunity for Barclay’s investment and starts their operation in several locations. (Business Teacher/ online/ 20-01-10)(The Times 100/ online/20-01-10)
The current economic downturn is badly effect for the banking sector. Barclays bank also get some bad affect through that. Such as acquisition of Lehman’s assets could prove to be mistake.
They provide wide range of services. However sometimes customers may prefer to go suppliers who provide a more specialised approach.
The Barclays had bad reputation for closing branches rather than their competitors. (Business Teacher/ online/ 20-01-10)(The Times 100/ online/20-01-10)
If any organizations want know their internal/controllable factors strengths, weaknesses, opportunities, Threats, They prefer to conduct SWOT analyses. On the other hand if they want to know their external / uncontrollable factors how influences to their organization, they should conduct PEST/STEP analysis. PEST/STEP stands for social, technological, economic and political variables. Below I will explain PEST/STEP factors how influences for the Barclays Bank PLC. (Quick MBA, Strategic Management / online /22-01-10).
It define government regulations, legal issues and both formal and informal rules under which the firm must operate. Such as tax policy, employment low, environment regulations ... etc.
In this case Barclays should consider wide range of political issues. Because of their operation on going many more countries. As an organisation their political view is very flexible. It can adopt any kind of political environment. On the other hand they fallowing environmental friendly polices to. (Quick MBA, Strategic Management / online /22-01-10) (The Times 100/ online/20-01-10).
Manly it defines as the purchasing power of potential customers and the firms cost of capital in the macro economy. It includes economic growth, interest rate, exchange rates etc... ( Quick MBA, Strategic Management / online /22-01-10)
My Owen point of view is measuring this factors are very difficult. However briefly analysing organisation economical behaves in certain economical situation (upward, downturn, stable) any one can get idea of that. For instant most recently Barclays acquire some of Lehman’s assets after that company collapse. (Business Teacher/ online/ 20-01-10).
The social factors define as the demographic and cultural aspects of the external microenvironment. These factors affect customer needs and the size of potential markets. It includes health consciousness, population growth rate, age distribution etc...
As a success and responsible organization Barclays group always highly consider about social factors. It can identify through how they located their branches, their employees recruitment policy as well as their all operation.
The formal definition of technological factor is it “can lower barriers to entry, reduce minimum efficient productions levels and influence outsourcing decisions” (Quick MBA, Strategic Management / online /22-01-10). It taking to account R&D activity, automation, technology incentives, rate of technological change etc...
The technological factors are most important factors in modern business world. Without sufficient new technological techniques or items business can’t survive in existing market. Nowadays banking sector has highly competition not only local but also global as well. According to Barclay’s strategy they want to build best bank in UK. (Quick MBA, Strategic Management / online /22-01-10) For achieving that target they should bet another UK high street banks. Such as HSBC, LLOYDES TSB, RBS, NATIONWIDE, NET WEST etc... The above mentions Barclays competitors also well establish, historical, highly recognize organizations. So Barclays want to beat that organization they must adapt to new technology (IS/IT) rather than their competitors. Using IS/IT efficiently they can attract new customers and to surprise their existing customers.
The rapid development of IS/IT is the main reason for adding new business concept and systems to the modern business world. Such as CSR, CRM, ERP, EDI etc... In this report I will manly focus on about CRM concept how influences to making decision and policies for several organisations.
What is CRM (Customer Relationship Management)
It is an “information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way” (searchCRM.com/online/ 27-01-10). Basically it is system build in by organisation. It keeps company customers sufficient data’s. Through that management can analyse buyer behaviours and they can forecast future demand for their product. In addition to that through CRM company can provide superior service and support for their customers.
The world number one car manufacturer TOYOTA using CRM for make important decisions. For that they used several principals.
Understand what customers really value.
Conduct qualitative interviews and survey to find out what customers really value and how satisfied there are with company value delivery.
Map the delivery process
Once the company understand what customer value, company should fallow the value stream from the customer through company and map the value delivery process.
Let value flow direct to customers
After making above decisions company should restructure their CRM processes without interruption to customers.
Let customers pull value themselves.
Organization should allow customers to pull value directly. When they need it E.g. product information or even a configured product - from company, on demand.
Continuously improve valve delivery.
Company can simple structured step process that looks at potential improvements to their business, sets targets for their improvement and trials them. (MYCUSTOMER. Com/ online /28-01-10).
The TOYOTA using above principals for increase their responsiveness to customers, to decrease their costs and to increase their profitability. On the other hand they can use CRM for downstream business of marketing, selling and customer service.
During my research I found one of the software TOYOTA using in their CRM department. It is TLI (Technology Leadership Innovation). That software very user friendly and provide some unique features for TOYOTA. Such as
Personal user name and password for CSRs and floor managers
Dispositions to capture the outcome of a call to a prospective Toyota customer.
Standard formatted e-mails for CSRs that can be send to a prospective customer with information on a Toyota proposal. Etc...(TLI SOFTWARE INC /online /28-01-10).
Tesco, the giant and most successful supermarket chain in the U.K. it using world one of the best CRM programme. Initially they start their CRM programme with club card in 1995. Offering points on purchases and giving a small rebate to loyal shoppers. It really helps to them for build powerful database about their loyal customers. Furthermore later they develop their CRM programme with adding full range of financial services and Tesco direct services. As same as now they provide online shopping services as well. (Branding ASIA.com/ online/ 28-01-10).
The main resins were Tesco lunched CRM programme.
Know and understand their customers on an individual basis.
Communicate with their customers in a relevant way.
“Manage offerings so that the customer’s shopping experience is enhanced compared to what they have ever had before--- with the client or with anyone else”. (Branding ASIA.com/ online/ 28-01-10).
As a result of their advances CRM programme they can delighted their customers. It is main resins for increase their profit and market share in world wide. (Branding ASIA.com/ online/ 28-01-10).
Lloyds TSB is one of the largest retail banks in the UK. The group, which includes Cheltenham & Gloucester and Scottish Widows, has more than 2,300 bank branches and employs more than 77,500 people worldwide. (Thorogood / online/ 30/01/10). The Lloyds TSB is one of the best banking service providers in UK using CRM in higher percentage. For example
Lloyds TSB has become the first bank in the UK to offer a range of banking services allowing customers to monitor and manage their money on a mobile phone. . Those new services are very unique in giving customers the ability to move money instantly between accounts through a Mobile Banking application and receive text messages about their finances. (Web Wire /online/30/01/10).
As a Lloyds TSB customer personally I’m delighted about their service. For instant through their ID Aware service I can manage my credit profile very efficiently. It provides for me regular text or email alerts, unlimited access to my credit report and personal risk assessment on request.
DELL COMPUTER CORPORATION.
Dell computer corporation start by Michael Dell in 1984. When he was attend university Texas. He’s main ambition was compete with IBM. Within very short time he was become very success in business world. Because of now Dell Computer Corporation is second largest computer manufacture in US market and one of the best computer maker in world wide. The reason was behind in Dell succeeds their CRM strategy. (Directmarketingturkiye.com/ online/ 30/01/10)
The Dell main CRM strategy is direct marketing. They don’t have any retail shops or intermediaries. Simply they selling personal computer systems directly to customers through online, over the phone or mail orders. Through that proceed they were identified and fulfilled customers need in delighted way. (Directmarketingturkiye.com/ online/ 30/01/10)
In addition to that the direct marketing is providing competitive advantage for the Dell. Such as its reason to minimise their supply chains cost as well as provide access in all over the world computer market. (Directmarketingturkiye.com/ online/ 30/01/10) (http://store.directmarketingturkiye.com/dellcomputers.html )
NEXT is a one of the latest fashion store in UK. Mainly they provide fashion wares and cosmetics. They use CRM concept very effectively. In the modern world they wanted to get some competitive advantages rather than their competitors. As a result of that they are using IS/IT as the main fact for the customer satisfaction. In the other hand they also get greater competitive advantages.
They are available 24/7 through the NEXT directory. They are getting the maximum use of the CRM policies to create a NEXT directory. Because by using this; they could able to increase their customer’s satisfaction and also the customers are persuaded to continue a close relationship. The NEXT directory was made an attractive vision to the customer for a convenient distributional service.
Apple is a one of the best IT Company who is using highest technology in field to full fill temptation of the customers. It’s the first successful personal computer maker in the world. It starts by Steven P. Jobs and Stephen G. Wozniak in 1976. As an IT company apple facing big competition. Because of Now days IT filed have many big players, such as DELL, SONY, HP, Microsoft etc... So that gain their market portion they using several effective strategies for their CRM programme. Those are
Innovation – I pad (2010), I phone , I pod, I tunes, I Mac.
A store just for apple product
Fully complete solution
Vast variety of production
Education support services
Attraction and consistency etc...
The above strategies fallowing strategies were help to make very loyalty customer based for the apple. (Inside CRM, 2010) (Answers.com, 2010).