Контрольная работа: Strategic Planning

Computacenter achieved a turnover of £500 mln, and employs approx. 1500 people and won one of the largest desktop contract with British Telecom.

Computacenter France became a wholly owned subsidiary of Computacenter.

Despite a partial slow-down in the UK economy, demand for IT systems and services remained strong in 90’s.

The Comptacenter 's success is the direct result of a strategy of sustained high investment in the development of the services capability. The state-of-the-art facility was intended to be the source of significant competitive advantage.

Computacenter commercial success depends on the quality of the service and that, in turn, depends on the quality, training, and motivation of the staff.

Computacenter continued to invest across all of its businesses, consolidating its position as the leading supplier of distributed IT and related services to the European corporate and public sector marketplace. During 15 years Computacenter won a number of different contracts with major players if IT industry in Europe.

I want to point out that there were a big number of different acquisitions due to Computacenter became the most significant provider of IT infrastructure products and services in the United Kingdom and in Europe. The focus clearly was and remains on investing for growth in Computacenter existing businesses. Much of Computacenter’s growth was due to expanding relationships with existing long-term corporate customers. The quality of service that they deliver to both new and existing customers is the overriding factor in the success of the business.

Computacenter’s ability to deliver value through its entire range of services, combined with e-commerce capability, constitutes a significant competitive advantage. All things considered, it can be concluded that Computacenter followed the same strategy during the 15 years. During this period Computacenter made further progress in strategic initiatives aimed at ensuring long-term earnings growth.

2. Current Strategic situation

Information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth.[7]

Market figures show that in Western Europe in 2009, IT infrastructure outsourcing increased by 3 per cent and is expected to increase by 4 per cent in 2010.[8]

IT is one of the most rapidly evolving, widely used, and pervasive high technologies in the world today. Understanding the general trends in the IT industry is important when giving advice on which technology to invest in. The invention, creation and widespread application of IT effectively spurs the integration of hardware manufacturing with software development, goods production with service management, and the real with virtual economy.

Although the IT industry has been faring better than others sectors, it is by no means immune to the current downturn.[9] See Appendix 1 worldwide spending on IT.

IT-industry analysis (Porter’s Five Forces)

Porter’s Five Forces can be used to understand how profitable a target industry might be and to understand the forces impacting upon the current industry’s profitability.[10]

Appendix 2 shows us the main power of suppliers and buyers, threat of substitute, new entrant threats and supply market rivalry. Comprehending the forces that shape IT-industry competition is the starting point for creating strategy. Every organization should know what the average income of its industry is and how that may change over time.

The key to growth and survival, according to Porter, is to use your knowledge of these five forces to «stake out a position that is less vulnerable to attack from head – to – head opponents, whether established or new, and less vulnerable to erosion from the direction of buyers, suppliers, and substitute goods.»[11]

External macro-environment analysis (PEST analysis)

To analyze current situation we can use PEST analysis. The PEST analysis is a framework that strategy consultants use to scan the external-macro-environment in which a firm operates.

PEST is an acronym for the following factors: Political, Economic, Social, Technological. PEST factors play an important role in the value creation opportunities of a strategy. However they are usually outside the control of the corporation and must normally be considered as both threats and opportunities. We should take in mind that macro-economical factors can be differ per continent, country or even region, so normally a PEST analysis should be performed per country.

- Political

International regulations

Concerns about environmental issues

Concerns about energy utilization

The government view the IT sector as an important engine of economic growth

The market may be impacted by lower Government spending on new infrastructure

- Economic

Currency Fluctuation

Unemployment Rates

Increase of Interest rates