Essentials of management information system - Myassignmenthelp.Com

Question: Discuss about the Essentials of management information system. Answer: Introduction In the modern times it has become essential for the companies to make sure that they conduct their operations by evaluating the environment in which they do business. It is also essential for the companies to make their plans and policies accordingly so that they can achieve a long term growth. It is also to be understood that competition within the industries have gone cut-throat, hence companies need to develop their strategies accordingly. It is also necessary for the firm to make sure that they formulate a clear vision and mission, and set their objectives smartly. It helps companies in a particular direction. There are several factors that are effecting the internal and external environment of the company. This report highlights the external environment for the two companies, namely Toyota Global and Digi telecommunication. It also includes the comparison between the external environment and the mission and vision of both the firms. Digi Telecommunications Digi Telecommunications is a Malaysian public company which was founded in the year 1995 by Morton Karlsen headquartered in D'House, Subang Hi-Tech Industrial Park, Shah Alam, and Selangor. The major products of Digi telecommunication are Telecommunication Services, Mobile Services and Cable Television (Bloomberg, 2018). Mission of the Company Digi communications deliversInternet for allas part of our commitment to building a connected Malaysia - enabling access to mobile internet services and applications by offering customers the right combination of devices and value pricing, supported by an efficient operation that brings best usage experience (Digi, 2016). Vision of the Company The vision of Digi Telecommunication is to be the No.1 mobile internet provider for the mass market. We desire to be the source of inspiring internet content that is infectious and engaging. Keep Promises We take ownership for delivering on our goals and responsibilities, and pride ourselves on driving quality into everything we do. Make it easy We aim for simplicity in the way we work, and in offering products and services that are easy to understand and easy to use. Be respectful We are open-minded and professional in our conduct, and appreciate differences in cultures, opinions, and outlook. Be Inspiring We bring passion, energy, and creativity into everything we do, and make every effort to constantly drive change and continuous improvement (Digi, 2016). Business Strategy of the Company Our response to the fast growing digital world is a clear strategy to transform our business and take the necessary digital leaps to innovate and evolve around what our customers increasingly want. In other words, to become our customers favourite partner in digital life. We believe our well-defined strategy for long-term profitable growth will create new opportunities in digital as we continue to deliver the fundamentals on which our business is built on. Our clear future-forward actions positions Digi well to compete, grow and outpace this new data-centric digital world, and keep us ahead of our industry. (Digi, 2016). On the same web page Digi Telecommunications specifies the 4 components of its strategy: Becoming ourCustomers favorite partner Being aMost efficient operator PracticingResponsible business conduct Building aWinning Team Toyota Global Toyota Global is a Private Motor company which was established in the year 1937. Its headquarter is in Japan and was founded by Takeshi Uchiyamada. The main products of this company are Automobiles, luxury vehicles, commercial vehicles and engines. Mission of the Company Honour the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities. Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities. Create and develop advanced technologies and provide outstanding products and services that fulfil the needs of customers worldwide. Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honouring mutual trust and respect between labour and management. Pursue growth through harmony with the global community via innovative management. Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships (Toyota, 2018). Sakichi Toyoda, the Founder of Toyota mentioned the major principles. Always be faithful to your duties, thereby contributing to the company and to the overall good. Always be studious and creative, striving to stay ahead of the times. Always be practical and avoid frivolousness. Always strive to build a homelike atmosphere at work that is warm and friendly. Always have respect for spiritual matters, and remember to be grateful at all times. Vision of the Company On its Website, Toyota elaborates about its vision. We can read the following statement: Striving to create outstanding earth-friendly products for sustainable growth, Toyota honors the laws, customs and cultures of all nations. Toyota willlead the wayto thefuture of mobility,enriching lives around the worldwith the safest and most responsible ways of moving people. Through ourcommitment to quality,constant innovationandrespect for the planet,we aim toexceed expectationsand berewarded with a smile. We will meet ourchallenging goalsby engaging the talent and passion of people,who believe there isalways a better way. Toyota uses the tree metaphor to explain to its stakeholders how it conducts its business in todays context. The image of a tree has been used to symbolize the Toyota Vision from roots to fruits. The tree is a symbol of natural strength. It is useful and long-lasting, something that continues to grow and flourish year after year. The Toyota principles are represented as the roots because everything we do as a company must grow from the foundation of our beliefs. These roots support the trunk of the tree, which signifies the strength and stability of our operations. From the trunk, the branches lead to the 12 tenets that make up the Toyota vision - the fruits of the tree. The tree allows all of this imagery to be connected together, a metaphor for how closely we at Toyota work together to achieve success. Finally, the tree is set in a human environment, to remind us of who we work for - our customers. The backdrop is universal, to represent our customers across the globe (Toyota, 2018 ). The twelve tenets are: Lead the way: Toyota will be a frontrunner. We will seize opportunities and invest in the future. Future of mobility: Toyota will develop new forms of transportation and pursue new ways to connect technology with people. Enriching lives: Through the concept of monozukuri, Toyota will create jobs, develop people and contribute to society Safest and most responsible ways of moving people: Safety is Toyotas number one priority for our employees and our customers. Nothing is more important. Constant innovation: Toyotas goal: Always better cars. We continually reinvent ourselves, introduce new technologies and stay ahead of our competition. Exceed expectations: Toyotas attitude is to anticipate and deliver to the needs of those we serve. Rewarded with a smile: Customer satisfaction is best expressed with a smile. It promotes a behaviour of gratitude and appreciation in all that we do. Challenging goals: Waved aim high and work together... thats who we are. Engaging the talent and passion of people: The power of the organization comes from the skill and diversity of our team members and business partners... solving problems and creating new ideas. There is always a better way: The spirit of kaizen... reaching higher and challenging ourselves to find a better way in everything we do... every single day ((Toyota, 2018). Business Strategy of the Company Toyota is a Japanese based automobile company. The main business strategy of the company is to design cars, involving more innovative techniques. Toyota has already captured the market and people love its core product. They aim at introducing vehicles with great quality with the process that can easily be affordable by the customers. They have low prices as compared to other vehicles. They believe that one must buy vehicle for long term and to focus on such belief, they provide the best quality services (Pratap, 2017). Generally, it happens that the company follow the general rule for the profit i.e. Cost Price + Profit = Selling price But Toyota aims at focusing on the thumb rule i.e. Selling price Cost price = Profit. This represents the best business strategy that Toyota follows. They have also made a strategy to create their training centres across the world where they can train their employee and workers about the innovations and the techniques involved to design a new car (Laudon Laudon). Both these firms have different kind of mission and Visions for themselves. Digi telecommunication has their mission and Vision lined up in the form of a firm that expresses to achieve much and become a market leader. On the other hand Toyota being a larger firm aims to continue with its success trajectory which it has achieved in the past. Mission and Vision of both the firms illustrates about their positions in the market and what they targets to achieve from their operations. Macro Environment and Porters Five Force Analysis of DIGI Telecommunication Digi telecommunication is one of the biggest mobile service providers in Malaysia. It is the largest shareholder of Telenor ASA (Digi, 2016). It is essential for the company to evaluate its market attractiveness and to understand its external environment. This will help in developing their strategies as well as managing their operations. Their long term growth and their sustainability in the environment will also benefit from it. In order to understand the external environment of the company, a PESTLE analysis can be highly useful. It helps to analyse the various factors that are prevalent in the external environment of the company which is directly affecting the performance. Macro Environment Analysis Political: All over the world political scenarios are changing and its not different in Malaysia. This country is also experiences so many changes in the political condition of the country (Nikbin, Ismail, Marimuthu Armesh, 2012). There are many rules and regulations which have been made by the government of Malaysia and it is directly affecting the performance of the Digi telecommunication. The increased taxes, e.g. production and service tax, has put extra burden on the company. The government imposed a lot of regulatory rules in the last decade. These are affecting the productivity of the firm as well as its potential profit. Economic: While evaluating this factor it is to be understood that Malaysia is a developing nation and hence it is facing a whole lot of challenges in terms of ensuring their economic development. In a last decade there have been lots of hiccups in the economic condition in different parts of the world (Loke, Taiwo, Salim, Downe PETRONAS, 2011). This has affected the business of Digi telecommunication. The slowdown in the American economy and the bad condition of European market has direct effect on the business of the cited company. It is also to be understood that this industry is growing at much faster rate and it is to be expected that it will expand even more in the coming years. Social: Society is changing as so is its requirements. People in the country are demanding for the higher connectivity from the telecommunication company. Their demands can also be understood in terms of extra data at lower rates (Arokiasamy Abdullah, 2013). In such a competitive environment, it is difficult for the company to meet those demands while ensuring higher profits. It is also to be taken into consideration that there has been gradual shift in the amount of people that is demanding for voice calls and the people that is demanding for high speed data. On the other hand the Malaysian society is mix of both very rich and a growing group of middle class families, hence cited company has to make sure that they offer products as per the consumers. Technological: Digi telecommunication is part of the technology industry. They have to make sure that they are up to date in terms of the technology they are using or developing. Almost every six month the technological advancements gets twice of what is today (Rahman, Haque Ahmad, 2011). This is a serious challenge for the company as they have to make sure they generate higher amounts of profits while investing a lot in technological innovation. Legal: Telecomm regulatory authority in the Malaysia has made many strict laws in terms of the use of spectrums and privacy of the consumers. Digi Telecommunication has to abide by this in order to ensure that they do not face any kind of legal consequences. Environmental: It is a challenge for the company to invest in the technology that reduces the amount of radiations caused by the operations of this firm (Amin, Ahmad Hui, 2012). Government has been very strict over not installing mobile towers in the areas that is heavily populated. Digi telecommunication has to make sure that there is low usage of high frequency emitting devices. Porters Five Force Analysis It is essential for Digi telecommunication to know and understand the condition of the industry as well as the impact of the various factors present inside the nation (Ramayah, Samat Lo, 2011). In order to understand the market attractiveness of the industry, Porters five forces can be highly beneficial. Bargaining power of consumers: There are many mobile service providers inside Malaysia. Consumers have many options to choose from (Gibson Dibble, 2013). This has considerably increased their bargaining power. It is also to be understood that people in Malaysia is looking into the options provided in terms of services at lower cost. It creates high expectations and Digi telecommunication has to live up to it. Bargaining power of Suppliers: Digi telecommunication has a close relation with its suppliers. Since there are larger numbers of suppliers, both national as international, and the stiff competition between them, their bargaining power has reduced considerably. They are forced to sell their services and products at lower cost. Competitors: This Company is facing very stiff competition from both large as well as smaller firms. Some of competitors are multinational firms and causing higher damage to the profit margins of the company (Ghorban Tahernejad, 2012). In the telecommunication industry the competition has already become cut-throat and more likely to increase in the coming years. This is a serious challenge for the firm as they have to make sure that they have higher growth margins. Threat of new entrants: Since starting a company in this industry does not require a huge amount of investment, many new companies have entered the business. However it is challenging for any new comer to gain market share, especially with big players already present. Threat of new entrants is average but has to be tactically handled. Threat of substitute: There is no other mode of communication that is more successful than the mobile communication, hence this threat is on the lower side. The company can easily expand its business because of the lack of parallel communication medium on its way. Macro environment and Porters Five Forces Analysis of Toyota Global Macro Environment Analysis (PESTLE) Political: There a wide range of political factors which influence the performance of Toyota Global such as major geopolitical tendencies, political stability, and change is regulation and others. For example, the poor relationship between China and Japan negatively affects the business of the enterprise since Chinese government did not support Japanese products in the country. Another example is the controversy of royal commission in Australia which resulted in closing all the manufacturing plants of Toyota in the country (Taylor, Chan Jabour, 2014). Economic: Different factors such as currency exchange rate, macro-economic climate, cost of labour, rate of inflation, and tax rates have either direct or indirect influence on Toyotas profitability. For example, due to the weakening of Japanese yen against US dollar in 2009, profits of the firm increased with 900 billion Yen (Naughton Trudell, 2013). Social: The growing rate of customer awareness regarding environmental implication due to high emission vehicles required to be addressed by the automotive firms. Toyota started focusing on manufacturing hybrid and electric cars for its customers such as Toyota Prius. The aging demographic of the corporation is another key factor which influences the companys sales (James, Samples Kalik, 2013). Various other factors are required to be analysed by the management of Toyota in order to sustain its growth such as customer attitude and opinions towards travelling, media perception, health and welfare of target customers and others. Technological: The technological advancement provides different opportunities for automobile corporations such as Toyota. The growing popularity of e-commerce provides great opportunities to the enterprise for expanding its business into new markets. The firm is also investing in electric vehicles since their popularity is growing among customers in large markets such as the United Kingdom, United States and others (Shim Steers, 2012). Legal: Due to effective intellectual property laws to avoid infringement of intellectual rights, implemented by governments, the issues faced by Toyota regarding infringement of intellectual property rights have reduced. Toyota has the opportunity to provide safer vehicles to its customers by complying with consumer laws and improve their reputation by providing high-quality products that comply with environmental laws. Environmental: Toyota has established a positive brand image by offering environment-friendly products and fuel-efficient cars to its customers. As per Toyota Environmental Challenges Report 2050, the firm focuses on reducing its carbon footprint by introducing effective environment-friendly processes of manufacturing which also assist in sustaining its development (Toyota Global, 2018). Porters Five Force Analysis Competition Rivalry (Strong force) Toyota operates in the automotive industry, and it faces fierce competition from its other constructors in the industry. Few large automotive manufacturers are dominating the industry by continuously introducing new and innovative products to attract customers (Liker Convis, 2011). Toyota Global faces high aggressiveness from its competitors in markets in global markets. The firm also deals with wide variety of products that are different based on cost, fuel efficiency, brand image, style, technology and other variables. Bargaining Power of Customers (Strong force) There is considerably low switching cost which means the customers can easily change from Toyota to any other brand without investing extra cost. The change happens when customers purchase a new vehicle, and they can choose their best option since they have access to all the accurate information regarding products and their quality. Toyota has a brand image of providing convenience vehicle to its customers, however, customers who prefer something other than conveniences such as technology or style, they can easily choose any other brand (Nair, Narasimhan Bendoly, 2011). Threats of Substitutes (Moderate force) In case of Toyota, it is relatively easy for customers to shift to other substitutes which include bicycles, public transport, and other modes of transportation. However, these substitutes are moderately available, and in some areas, the substitutes are not available including suburban areas. Other substitutes are also less convenient than compared to Toyotas products; therefore, threats of substitutes are moderate for Toyota. Bargaining Power of Suppliers (Weak force) The bargaining power of Toyotas suppliers is weak since there is low forward integration of suppliers. There is a limited population of suppliers, and theoretically, their bargaining power should be higher when the suppliers are fewer. However, Toyota requires high availability of suppliers which weakens its suppliers bargaining power (Monden, 2011). Most of the suppliers did not have control over the distribution of supplies to corporations including Toyota. Threat of New Entrance (Weak force) The threat of new entrance is low since there is a requirement of high capital cost which creates barriers for new corporations to enter the automotive industry. The cost of brand development is also substantially high along with the supply chain costs which weaken the effects of new entrants on corporations such as Toyota (Liker Ogden, 2011). Analysis of Best Environment In case of Toyota Global and Digi Telecommunication, both corporations are dealing with different threats and opportunities such as changing political regulations, advancement of technology and constant change in the global economic environment. However, Toyota Global is best equipped for its environment as compared to Digi Telecommunications. Toyota can count on larger resources and a positive brand image worldwide. The political and economic environment creates various barriers in the business expansion of Digi Telecommunications and it has to deal with various locals laws. On the other hand, Toyota is an established global brand with operations in more than 170 countries. Small environmental changes did not adversely affects companys position in the global market, therefore, it has the best environment, compared to Digi Telecommunications. Conclusion In conclusion, the report analysed the mission, vision and business strategy of Toyota Global and Digi Telecommunication. Digi Telecommunication delivers internet, cable and mobile services to its customers. Its mission and vision is to become the most reputable company by providing prefect combination of products and services to its customers. Toyota Global operates in automotive sector and its mission and visions it to deliver innovative products to a large number of customers worldwide that are manufactured with high values and norms. Digi Telecommunication and Toyota both face risks due to changing political environment, and they focus on delivering products as per customers requirement. 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