Title: ASSESSMENT 1- CASE STUDIES DC202 CASE STUDY 1

DateDC202 Strategic Implementation for Information System

Lawton Hakaraia

DC202 STRATEGIC IMPLEMENTATION FOR INFORMATION

SYSTEMS ASSESSMENT 1
MARKING SCHEDULE
Student Name:

Case Study 1

Possible

Question Number:

Marks:

3a

3b

12

18

16

Sub-Total:

60

Case Study 2

Possible

Question Number:

Marks:

11

4a

4b

4c

Sub-Total:

40

OVERALL TOTAL:

100 = 60%

Student Marks:

Student Marks:

CONTENTS
1) Introduction
2) Hierarchy levels of strategy
3) The confusion over where the power lies in the organization
3A) the pyramid of the organization structure with the appropriate levels
of strategy
B) The most INFLUENCE level of the pyramid
4) SWOT analysis for Asdith Health Services
5) PESTEL analysis based on the information outlined
6) Strategic Implementation solutions to each of issues that AHS is facing
Case Study 2:
1) Porters competitive forces
2) Porters Five Forces helps company develop competitive strategy
using information systems
3) Competitive advantage and sustainable competitive advantage at JJ
4) Information system strategies to implement
A) Reasons using these 4 strategies
B) Example from company around the world with selected strategies
5) 7 benefits of technology that helped JJ compete in the Juice market
Conclusion
References

CASE STUDY-1
Introduction
ASDITH HEALTHCARE SERVICE (AHS) is a community hospital in san
Francisco (USA) with a huge number of staff i.e. 1300 member. It has
200 beds. It has a wide range of information system which are either
reaching the end of their useful life or coming up for contract renewal. it
operates under the health trust board who are member of local
community of the services offered by AHS
The company was established in 1995 and one of the first of its kind in
San Francisco. Today there is a proliferation of healthcare provider spread
to the outskirts of the los Angelos. Last estimate, there were 225
healthcare provider, essentially giving the same services as AHS.

Hierarchy level of strategy

Corporate Level
Bussiness Level
Operational Level

Corporate Level
This is first level in the hierarchy level of strategies which includes the
overall scope of the organisational structure and also include how the
different types value added in different parts of the function.
In AHS, it include the wide range of information system which include the
reaching ill the end and renewal of contract. Under this level it also
include the staff from local community like doctor, lawyer, educator, etc.
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Business Level
Under this level the organisation should have successful in particular
marketing. Under this the main aim here is to increase the value of the
business for the stakeholder by increasing brand awareness and value
perceived by the customer.
In AHS, the company was mainly established in 1995 and was the one the
first kind in San Francisco. And today they have proliferation of healthcare
provider already spread through the outskirts of the Los Angeles and they
all are doing the same kind of services across 225 healthcare.
Operational Level
Operational level is the third level in strategic level which is primarily
concern with the successfully implementation the strategic decision made
in above two level that is corporate and business level management. This
level considered to be the most significant level as it changes the strategy
decision into the strategy action with the impact on human resources and
network.

2 where the power lies in the organisation is always a topic of doubt and a
debate is always there as in this the departmental head of this company
the departmental head of the company are taking the decision cause
more problem and hence the discussion could solve this problem . This
has done with the strategic decision that will affect the decision and the
expectation of the stakeholder.
This is only be solved by the strategic implementation that are:
1) Managing include the change in the requirement as the strategy of
the company is to take decision without the senior .
2) Structuring the company base to achieve the success.
3) Enabling the success rate that the different resource srea in the
strategy.

3(a) pyramid of organisational structure using the appropriate level of

strategy.

3(b) The U.S. health care system is the subject of much polarizing
debate. At one extreme are
Those who argue that Americans have the best health care system in the
world, pointing to the freely available medical technology and state-ofthe-art facilities that have become so highly symbolic of the system. At
the other extreme are those who berate the
American system as being fragmented and inefficient, pointing to the fact
that America spends more on health care than any other country in the
world yet still suffers from massive uninsurance, uneven quality, and
administrative waste.

4 SWOT analysis technique:

This analysis typically create alternate strategic methods that help
the organisation to achieve their best match business objective for the
future forecast as it relates to the organisation and to formulate the
strategies and objective that best match the business with its
environment.

SWOT analysis simply summarises the key issue from the business
environment and the strategic capabilities of an organisation that are
most likely to impact on strategic choice.
Under this SWOT analysis consist of four thing i.e.
1)
2)
3)
4)

S=strengths
W=weakness
T=threat
O=opportunity

Whereas strength and weakness focuses on the internal source of

business at what it can do. And skills and expertise of the management
and staff.it current market position. Access to resources e.g. availability
of capital
Secondly, threats and opportunity are external factors focusing on the
condition of the real-world. As such, they often the result of environment
factor and change in e.g. are
1)
2)
3)
4)

The political landscape the organisation is operating within.

The economic situation.
The demographic profile.
Technological advances.

In AHS, the same SWOT factors are applied on this business. This is
because to run the business successfully and in a most effective manner
so as to obtain the profit in future.
Under the AHS information that is appropriate is:
1) Strength
a) Cost effective by most of the consumer who use its services.
b) Feedback from the customer who gave them very high rate for
satisfaction i.e. 85%.
c) Facilities and amenities with the high percentage i.e. 92%.
2) Weakness
a) Staff feedback on management practices has been disconnecting.
b) The information system, project timelines budgeting is missing,
and budget are mostly over spend.
c) IT and Technical resources that are not working up to the mark.
3) Opportunity
a) New digital system would increase efficiency and reduce
documentation errors by streamlining the process.
b) The organisation is trying to upgrade the system and taking the
step to remove the possibilities of error.
c) New technology is being developed daily which can help AHS to
improve.
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4) Threat
a) Technology system were failing to meet the ongoing needs of the
medical facility.
b) Many of the staff including the clinician were not happy with their
lack of involvement in the decision.
c) Decisions on the investment is made by the departmental head
without senior manager or governance consultation.

Q5) PESTEL analysis

Organisation do not exist in the vacuum but in an environment that
it interact with. Such interaction are necessarily two-way, while it is easy
for us to understand how the environment can impact on business.
PESTEL framework is design to provide managers with an analytical tool
to identify different macro-environment factor that may affect business
strategies. Factor such as technology advances may probably affect the
social and economic condition in different market.
1) Political Factor:
These refer to the government factor such as degree of invention in
the economy. What goods and services does a government what to
provide? To what extend does it believe in subsiding firms.
a) The great person that is bill Clinton has passed the law as the
result of children health insurance programme.
b) As AHS was the first of its kind that it has to take many of the
government approval for starting of the new work.
2) Economic Factor:
These include interest rate, taxation changes, economic growth,
inflation and exchange rate. Economic changes can have a major
impact on a firms behaviour, for example, higher interest rate may
deter investment because it cost more to borrow; a strong currency
may make exporting more difficult because it may raise the price in
term of foreign currency; inflation may provoke higher wage
demands from employee and raise costs.
a) As it over spend the budget every time the budget planning is
not good in AHS.
b) As AHS is making good profit in every coming year.
c)
3) Social Factors
Change in social trends can impact on the demand for a firms
products and availability and willingness of individual to work.

a)

hrdynamics@xtra.co.nzAHS work under the local health

services including community of the lawyer and doctor.

b) With the development of new technology consumer are more
aware of their services
c) The health services are working together with the people about
health care and sanitation prevention.
4) Technological Factors
New technology create new products and new processes MP3
players, computer games, online gambling and 3D LED/LCD high
definition TVs are all new market created by technological
advances. Technology can reduce cost, improve quality and lead to
innovation. These benefits consumers as well as the organisations
providing the products. Technology factors include:
a) The company has implemented a new system for their record
keeping i.e. EMR.
b) AHS staff is not educated and donot know how to operate the
the EMR system
c) Only 11% of satisfaction is their in technology department.
5) Environment Factors
These comprises mainly issues of weather and climate changes.
Changes in temperature can impact on many industries including
farming, insurance. With major change occurring due to global
warming and with greater environment awareness this external
factor is becoming a significant issue for firm to consider.
a) It is one of the most user of the energy resource.
b) Waste to the environment caused by this.
c) They are trying to use the reusable product that can be
sterilized.
6) legal factors
These are related to the legal environment in which firm operate. In
recent years there have been many significant legal changes that
have effected firm behaviour around the world. The introduction of
age discrimination and disability legislation, an increase in the
minimum wage and greater requirement for the firm to recycle.
a) A new health system care bill has been passed by US
government.
b) An insurance rule has been passed to buy the better quality
services.
c) Affordable care act has been passed and become the federal law
on 23 march.

CASE STUDY 2
Porters competitive forces
The five forces analysis model is a tool created by Harvard
business school professor, Michael porter, to analyse the
attractiveness and likely-profitability of an industry. Since
publication, it has become one of the most important business
strategy tools. The five forces analysis model assesses the
balance of power in a business situation. It assume that are the
five important forces that determine competitive power in the
business situation.
1) Supplier power
2) Buyer power
3) Competitive rivalry
4) Threat of new entries
5) Threat of substitute

JJ juice implementation of five forces

Supplier Power10

This force assesses how easy it is for suppliers to drive up prices. This is
driven by the number of supplier of each key input, the uniqueness of
their product or services, their strength and control over the business, the
cost of switching from one to another, and so on. The fewer the supplier
choices there are, and the more needed the supplier help is, and
therefore the more powerful the supplier is. The bargaining power of
supplier is determined by:

The business switching costs

The degree of differentiation of input
The presence of substitute inputs
The threat of forward integration by supplier relative to backward
integration by firms.

Buyer powerThe force establishes how easy it is for buyer to drive prices down. Again,
this is driven by the number of buyer, the importance of each individual
buyer to the cost to them of switching from one products and services
from one products and services to those of another and so on.

Buyer volume
Buyer information availability
Availability of existing substitute products
Buyer price sensitivity

Competitive RivalryWhat is important here is the number is the number and capability of
competitor to business. If there are many competitor, and they offer
equal power in the situation, because suppliers and buyers will go
elsewhere if they dont get a good deal.

The number of competitors

The rate if industry and/or market growth.
Exit barriers
The diversity of competitors
The informational complexity and asymmetry
The level of advertising expense

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Threat of substitution
This is affected by the ability of service being offered can do for
example, if the business supplier a unique software product that
automates an important process, people may substitute by doing the
process manually or by outsourcing it.

The
The
The
The
The

buyers propensity to substitute

relative price performance of substitute
buyers switching costs
buyer switching costs
perceived level of product differentiation

Threats of New Entry Power is also affected by the ability of people to enter the market. If it
costs little in time or money to enter the market and compete effectively,
If there are few economics of scale in place, or if there is little protection
for the key technologies, then new competitors can quickly enter the
market and the market and weaken the position.

The existence of barriers to entry (patents, right, etc.)

Brand equity
Capital requirements
Learning curve advantages

Q3)
Competitive Advantage
These process are the unique ting about the organisation which enhance
and keep it different from the other company like it unique flavour and
technology.
An also to attract more customer in their favour organisation can also
reduce prices of their product to beat the other product in the market.
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Sustainable competitive advantages

Under this advantage location for the company must matters like bus stop
or airport the customer are more as compared to the another place.
Which effect the sales of the company for the particular product that they
are offering.
Whereas in JJ juice has earned sustainable competitive advantage that is
its name and brand and it has made it name all over the world. Even the
price of the product is more but still they were selling in the market.

Q4)
A) 4 strategic information system strategies that we have
implemented which are not in the case study
1) Formalization
It is the extensive of structure, technique, written procedure,
and policies that guide the planning process
2) Comprehensiveness
Comprehensiveness is the extent to which an organisation
attempts to be exhaustive or inclusive in making and
integrating strategic decision.
3) Focus
Focus is the balance between creativity and control
orientation inherent within the strategic planning system. Na
innovation orientation emphasizes innovation solution to deal
with opportunity and threat.
4) Top-down flow
SISP should be initiated by top manager, with the aid of
support staff.
B) Reason for selecting this is:
1) Formularization, I choose this factor because this factor is used
for building up the new structure of the company or for building up
the profits for the company this will help for the planning process of
the company
2) Comprehensiveness, I choose this because this factors help the
company in making up the strategic decision for integrating and in
exhausted manner

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3) Focus, I choose this because this will help the company to create
a balance between creativity and control orientation inheretant for
the future
4) top-down flow, I choose this because this is the main part of the
company as it initiate the planning from the top manger to the
bottom with the help of staff.

C) Company who uses this strategies are:

1) Formularization = Microsoft
2) Comprehensiveness = McDonalds
3) Focus = Burger King
4) top-down flow = pack n save

5) Technology has helped JJ juice a lot to have some great

benefits in the market.
1 Public Wi-Fi can be used to give limited access to the customers hence
a competitive advantage.
2 District managers can do all work while sitting on the table.
3 Implementation of the Wi-Fi and the facility of the laptops to the
managers assisted them in their business operations.
4 Internet is helping the company to advertise all around the world
gaining international customers and orders.
5 The website allows the company to lunch the offers and to connect with
the customers.
6 A smartphone app allows the customer to pay from phone and ordering.
7 The Wi-Fi systems allowed the official to observe the employees if they
are working properly or not.

CONCLUSION
Using these techniques JJ juice can gain much more profit and also can
make their name much stronger in the market. They can again reach to
the point where they can charge the customers whatever they want and
customers will still buy their product.
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REFERANCES
1) HTTP://USCAREFACTS.COM/-HEALTH-CARE-BILL.PHP
2) HTTP://JUSTFACTS.COM/HEALTHCARE.ASP
3) http://bizniszajednica.com/business-level-strategycorporate-level-strategy-functional-level-strategy-andinternational-strategy/

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