Here is sample of “Management and Strategy MOD007671”
Introduction to the organisation and current challenge
Overview of the organisation
Infosys can be recognised as one of the global leaders in digital services and consulting. The company has reinforced the company’s commitment in order to support the economical growth of the country UK. The company has been enabling the consumers within 46 countries in order to navigate the digital transformation within the workforce of the company. As per the research, the digital revenues of the company are 48.5 % of 31.3% growth (Infosys.com, 2022). The number of consumers of the company is more than US $100 million. The return equity of the company is 27.4 % which is almost improved by 1.6% from the last financial year (Infosys annual report, 2021).
The purpose statement of the organisation
The purpose statement of the company, Infosys, UK is to provide the best solution, leveraging technologies among the best classes of people within the global corporate world.
Challenges of the selected organisation
The Covid-19 pandemic has left a huge impact on the workforce of the company. Due to the Covid-19 pandemic, the overall organisational structure of the company has been changed. In addition to this, the company starts a remote working process. It also affects the economical growth of the company. It seems that the company needs to take steps; in order, to bring changes in the supply chain system, economical growth, and business operation including the financial resources of the company. In addition to this, it’s become challenging for the CEO of the company to manage overall business operations even in the post-pandemic days. Currently, the pandemic has been facing both financial and operational challenges currently at the workforce of the company (Mishra and Joshi, 2022). Besides it, product innovation and digital transformation both become challenging issues to manage the business organisation of the company. Therefore, the company has been reshaping its organisation structure and business operation in order to mitigate the current challenges in the workforce of the organisation. The executives of the company also state that their business structure is moreover agile and effective in order to accept the circumstances and certain changes. Moreover, the company has been taking the initiative to bring changes in the process of digital transformation, customer reach, product innovation and others. In addition to this, to cope with the current challenges the company has been taking the initiative to reshape the remote working model including taking steps against the global threats through accelerating digitalisation within the value chain system of the company Infosys.
In addition to this, the company is also facing challenges in the digital skill gap of the employees (Mitev and Dimitrov, 2021). It seems that due to the Covid-19 pandemic and national lockdown the company has been taking the initiatives to continue with the business operation remotely therefore, the employees of the company have been facing a digital skill gap. Also, the impact of the Covid-19 has also impacted the expectations of the clients and stakeholders of the company. Currently, the company has been suffering from issues related to mitigating the expectations of the stakeholders. In addition to this, one of the most significant issues of the company is issues related to supply chain services (Infosys.com, 2022). Due to the Covid-19 pandemic, it’s become so challenging for the company to deal with the supply chain disruption. In this current stage, the company has been rethinking implementing the digital supply chain in order to mitigate the issues related to supply chain disruption. The company has been taking the initiative of implementing the Infosys digital solution within the workforce in order to mitigate the issues related to supply chain disruption. Additionally, the company now wants to implement workforce transformation within the workplace of the company. Workforce transformation can be recognised as one of the strategic approaches taken by the business organisation to drive out the employee’s capabilities. Therefore, the ensues related to ineffective communication, skilled workforce, lack of collaboration between the employees, and lack of employees strategy will be mitigated by implementing digital workforce transformation at the workplace of the company.
Figure 1: Current and future state of company
(Source: Lund et al. 2021)
Environmental analysis
PESTLE Analysis
The political, technological and economic impact of the country has been chosen in order to represent the three key drivers of changes within the business organisation. It seems that the country UK is politically stable, therefore it helps the business organisation cope with such global challenges as Covid-19 pandemic (Lund et al. 2021). Besides it, the UK government has been providing several benefits to most of the business organisations in the country and maintain the employment act of the UK High popularity of the country always helps the business industry to enhance its business entity. In the post-pandemic days, the company is developing three significant models in order to mitigate the current organisational challenges. In contradiction to this factor, the Brexit impact has left a huge negative impact on the supply chain process of the company. Due to the Brexit effect, it’s become challenging for the company Infosys to maintain its supply chain disruption. On the other hand, the UK is a technologically advanced country and the UK will help the company to become digitally transformed (Christodoulou and Cullinane, 2019). The technological factors of the country have left a positive impact on the workforce of the company, as in this current situation one of the main aims of this country is to provide the best technological solution to the consumers of the corporate world globally. It also helps the company to become the global IT solution leader company (Grassi and Vallati, 2019). In contradiction to this fact, due to the pandemic situation the country has been facing financial challenges in the post-pandemic days which left a relatively negative impact on the sales rate, cash flow and overall financial statement of the company,
SWOT Analysis
The company provides a large array of It solutions for their B2b consumers. It is one of the main strengths of the company, as it helps in increasing the sales rate of the company (Capobianco et al. 2021). The company is also associating the strategic alliances with several companies as it helps the company to serve leading technology as well as business solutions. It provides a good partnership and collaboration which provides productive and innovative solutions. A well trained and skilled workforce will always help the company to transform more digitally (Walsh et al. 2021). On the other hand, currently, the market development of the company is moreover 80% dependent on the foreign country which can be recognised as one of the weaknesses of Infosys (Infosys.com, 2022). The lack of financial stability becomes a barrier for the company to develop its identity in the emerging markets. Similarly, due to the high attrition rate of the company it has become challenging for the company to maintain employee engagement. On the other hand, one of the main opportunities for the company is digital transformation at the workplace. The workforce transformation of the company now attracts most the others companies. It will help the company in the global investment; also the company is using cloud-based computing which attracts most of the tech savvy consumers. Additionally, the high intense competition of the company is one of the rivalry threats to the company. Also, changes in the US immigration laws have adversely changed the rules of the company which worked as a threat to the company.
Porter’s five forces analysis of Infosys
Figure 2: Porter’s five forces
(Source: Bruijl, 2018 )
Threats of new entrants
Due to the rapid changes in technology the company has been facing high threats of new entrants. It developed pressure on the company’s low pricing strategy and customer reach approach (Hole et al. 2019). However, the company is able to tackle the impact of new entrants by developing new innovative products. Also, the company has been developing a high economical scale furthermore which helps the company to deal with a fixed pricing strategy.
Bargaining power of the suppliers
In this technical field, the bargaining power of the suppliers is always high, in the other words it can be said that the software and technical field can be dominated by the suppliers. The high supplier’s power can leave a huge negative impact on the profitability of the company. However, the company Infosys has been developing efficient supply chain services to mitigate the supply chain disruption issues. After the Covid-19 pandemic, currently, the company is using digital supply chain solutions.
Bargaining power of the consumers
The company has the high bargaining power of its loyal customers, also most of the customers want a lot of offers at low cost which leaves an impact on the pricing strategy of the company. However, the company Infosys has been avoiding these issues by developing a large customer base (Appiah et al. 2021). This strategy will help the company in avoiding the high bargaining power of the customer along with streaming the production line of the company
Threats of the substitute products
In this new generation it becomes easier for the companies to use the same strategic or technological approach. Therefore, customers are getting confused about buying similar kinds of products. However, the company is article this situation by focusing on service-oriented rather than the product-oriented
Rivalry threats
According to Hole et al. (2021), the company has been avoiding this situation by developing different sustainable products. The high increase rate of the revival threats of the company has directly impacted the pricing strategy of the company. I will force the company to deceased the prices of the products. However, by differentiating their products the company has been taking this situation.
Capability analysis
Figure 3: VRIO framework
(Source: Kaul, 2018)
Analysis of VRIO
It seems that the VRIO analysis of the company is moreover reflecting the impact of competitive advantage of the company for the several significant factors of the company.
Valuable
This process helps to justify if the main process of the company has been valuable for the company or not. However, this can provide several benefits to the business organisation in order to understand the actual benefits of the resources factor. In the case of the company, Flexibility of the network of supply chain services, Position in the market research, leadership impacts, Brand Awareness, and Financial terms are included within the valuable resources (Kaul, 2018). All the resources left a huge impact on the organisational structure of the company. However, it is necessary for the company to maintain all the sources of the company in order to mitigate the post-pandemic challenges. As per the VRIO analysis of the company, it can seem that the financial resources have left a huge impact and are highly valuable for the betterment of the business practices. In addition to this, the company is highly dependent on the customer values and local food market.
Rare
Most of the important resources of the company are unusual. The rare resources are able to carry a high impact on the competitive advantage of the company. In addition to this, it becomes easier for the rivals of the company to get back in competition after receiving the rare resources of the company. In the other words, the financial resources of the company can be recognised as a rare fact. A strong financial analysis can be used by the employees of the company (Joshi, 2021). In addition to this, the digitally skilled employees are also the array of resources of the company. the employees will help the company to achieve a better working environment. In addition to this, the distribution network of the company can also be recognised as the array factor as per the VRIO analysis of Infosys.
Imitation
In the context of the imitation process it can be recognised as one of the most expensive processes for the competition of the company to build a branding like Infosys. Thus, the process of doing this process is to follow up on the process of product development shared by the company Infosys, the developed the product and sell the product at low prices. In the other words, the financial resource of the company can be recognised as one of the costliest resource factors (Nzongi, 2018). In addition to this, the local food market of the company is not included in this section as it is not costlier. Also, the employees of the company are not included in this section. In addition to this, the patent of the company is very difficult to initiate.
Organisation
In the context of the organisation, the financial resources of the company are well organised. Therefore, the organised factors should be implemented within the perfect place in order to get opportunities from the other resource. It will help the company to achieve the main purpose of the company. In addition to this, the distribution network of the company also needs to become organised to achieve a digital supply chain network. Furthermore, it has been helping the company to enhance the productivity of the business as well as the built organisation w2ill also help the company in developing innovative products (Nzongi, 2018).
Proposed strategy and conclusion
- The strategic option for remote working is staying connected with technological advancement. It will help the management and employees to make the communication feasible. It will improve the skills of the employees and make the work process more feasible. The management should prioritise team building which will increase the employee retention rate of Infosys. It has been chosen as a strategic option because it will help to mitigate the organisational challenges regarding employees (Weston and Nnadi, 2021). The process will streamline the communication method. The management should ask for feedback and monitor the performance of the employee continuously.
- The operational challenge in the workforce should be solved by hiring skilled employees. The company should focus on the manufacturing and productivity of the company. Bowman’s clock should be followed to mitigate the operational risk. The management should focus on the market share by lowering the price (Arshad and Yazdanifard, 2017). They should conduct detailed market research and development to set the monopoly price. Low added value and lower price of the materials will contribute to the brand name of the company and will maximise the profit margin. The strategy is applicable for the company because it will lower the weakness of depending on the foreign market.
- Digital transformation and product innovation are at risk and hybridization are required for Infosys as a strategic option. The application of Bowman’s clock will guide the cony in the hybridization and differentiation of products. It will mitigate the risk of losing market share. The organisational structure should be improved which will contribute to the manufacturing process. The company should design software applications as per customer demand (Islami et al. 2020). Implementation of advanced technology such as Blockchain and AI will help them to improve the product styling. The strategy is applicable to this company as it will contribute to its competitive advantage. Application of Porters’ better off test will help the company to identify the issue in competitive advantage. It will suggest diversification related to the product innovation which will mitigate the organisational risk of Infosys.
- In terms of solving the issue of the digital skill gap of employees, the company should arrange a training and development scheme for the employees. The business-level strategy will help them to gain employee trust. It is appropriate for Infosys as it will contribute to the efficiency of the employees. The company can improve its productivity and profit margin by implementing Porter’s generic strategy.
- Stakeholder dissatisfaction has become an issue for the company. The strategic option for this issue is the application of an appropriate value chain for this company. Porter’s essential test would be applicable to mitigate the risk of the value chain. It has been suggested that the company should create value for their stakeholders to keep them satisfied. Value creation should be used for increasing long-term profitability (Omsa et al. 2017). It will be an appropriate strategic option for the company as it will increase the stakeholder retention rate and maximise stakeholder trust.
- In terms of generating the most appropriate value chain, Porter’s Essential Test should be food. The attractiveness test will help the company to investigate if the products are attractive and have the capability of gaining more customers. The “cost-entry test” will help the company in setting a competitive price and to outweigh the future profit. It will help the company to understand the resources of the business (Omsa et al. 2017). On the other hand, the “better off test” will guide the company to get a competitive advantage. The strategy is applicable for the company as it will minimise the dependency of the company on foreign products and generate more revenue.
Conclusion
It has been concluded from the above that Infosys is a software development company that is facing several issues due to Covid-19. They want to mitigate the challenges to increase the brand value of the company. It will increase brand recognition and solve the issue of stakeholder satisfaction. There is a lack of digital innovation and product manufacturing which is affecting the profit margin of Infosys. The application of Porter’s Generic model will help them to solve the issues. As per the SWOT analysis, they have a strong network but they are too dependent on foreign products. The immigration law is increasing their organisational challenge. On the other hand, the PESTLE analysis is suggesting that political stability has a positive effect on their business. The increasing tax rate has affected their business negatively. As per the VRIO analysis, they have strong leadership accessibility and a flexible network which is popularising their brand name. A lack of skilled labour has created an issue for the company. Strategic options have been given to them to mitigate the organisational challenges. It has been expected that the application of advanced technology will solve their issues. Bowman’s clock and Porter’s three tests will help them to gain a competitive advantage.
References
Website
Infosys annual report.(2021). Available at: https://www.infosys.com/investors/reports-filings/annual-report/annual/documents/infosys-ar-21.pdf [available at: 9th April, 2022]
Infosys.com (2022). Digital supply chain. Infosys Available at: https://www.infosys.com/services/digital-supply-chain.html [available at: 9th April, 2022]
Infosys.com (2022). Ensuring Employee Safety and Building Business Resilience in the time of COVID-19. Infosys Available at: https://www.infosys.com/newsroom/features/2020/covid-19-update.html [available at: 9th April, 2022]
Journals
Appiah, M.K., Possumah, B.T., Ahmat, N. and Sanusi, N.A., 2021. Do industry forces affect small and medium Enterprise’s investment in downstream oil and gas sector? Empirical evidence from Ghana. Journal of African Business, 22(1), pp.42-60.
Arshad, A. and Yazdanifard, R., 2017. Investigative synopsis of Sony Inc.’s strategic management issues/failures and how to overcome them. International Journal of Management, Accounting and Economics, 4(9), pp.917-936.
Bruijl, G.H.T., 2018. The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.
Capobianco, N., Basile, V., Loia, F. and Vona, R., 2021. Toward a Sustainable Decommissioning of Offshore Platforms in the Oil and Gas Industry: A PESTLE Analysis. Sustainability, 13(11), p.6266.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges from the implementation of a port energy management system: A SWOT/PESTLE analysis. Sustainability, 11(21), p.6046.
Grassi, A. and Vallati, M., 2019, May. AI to Facilitate Legal Analysis in the PESTLE Context. In Proceedings of the 2019 Emerging Technology Conference. University of Huddersfield.
Hole, Y., Hole, S.P. and Bendale, S., 2019. Corporate Social Responsibility (CSR) in India: a conceptual framework. GIS Business, 14(6), pp.330-340.
Islami, X., Mustafa, N. and Topuzovska Latkovikj, M., 2020. Linking Porter’s generic strategies to firm performance. Future Business Journal, 6(1), pp.1-15. https://link.springer.com/article/10.1186/s43093-020-0009-1
Joshi, Y.V., 2021. Digital Transformation, Ecosystem Design, and Platform Strategy: An IIoT Perspective (Doctoral dissertation, Massachusetts Institute of Technology).
Kaul, A., 2018. Culture vs strategy: which to precede, which to align?. Journal of Strategy and Management.
Lund, S., Madgavkar, A., Manyika, J., Smit, S., Ellingrud, K., Meaney, M. and Robinson, O., 2021. The postpandemic economy.
Miethlich, B. and Oldenburg, A.G., 2019. The Employment of Persons with Disabilities as a Strategic Asset: A Resource-Based-View using the Value-Rarity-Imitability-Organization (VRIO) Framework. Journal of Eastern Europe Research in Business and Economics, 1, pp.1-13.
Mishra, S. and Joshi, J., 2021. HR 2.0: Reinventing HR Management post COVID-19. Embracing change & Transformation: Vision 2025, p.78.
Mitev, Y.R. and Dimitrov, D.I., 2021, June. IT Service Management Challenges in Condition of Pandemic and Post-Pandemic Environment. In 2021 56th International Scientific Conference on Information, Communication and Energy Systems and Technologies (ICEST) (pp. 11-14). IEEE.
Nzongi, L.N., 2018. Effect of Knowledge Management on Competitive Advantage in the Real Estate Sector: The Case of Pam Golding Properties (Doctoral dissertation, United States International University-Africa).
Omsa, S., Abdullah, I.H. and Jamali, H., 2017. Five competitive forces model and the implementation of Porter’s generic strategies to gain firm performances.
Sharma, V. and Biyani, S., A STUDY ON FUNDAMENTAL ANALYSIS: EVIDENCE FROM SELECTED INDIAN IT STOCKS.
Walsh, K., Bhagavatheeswaran, L. and Roma, E., 2019. E-learning in healthcare professional education: an analysis of political, economic, social, technological, legal and environmental (PESTLE) factors. MedEdPublish, 8.
Weston, P. and Nnadi, M., 2021. Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate finance performance. Journal of Sustainable Finance & Investment, pp.1-17.
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