...KEL170 MARK JEFFERY AND JOSEPH F. NORTON MDCM, Inc. (A): IT Strategy Synchronization Introduction MDCM, Inc., one of the world’s largest contract manufacturers for medical devices, had just announced its fifth consecutive quarterly loss. The firm posted revenues of $1.12 billion with net losses of $33 million for the second quarter of 2002. For Max McMullen, this was yet another agonizing episode since he took over as CEO two years earlier. Despite major company reorganizations, his promises to the shareholders for operational and cost improvements had not been realized. Given the company’s lackluster record, the next twelve months were critical in proving that these promises could indeed be kept. Concerned, McMullen called a meeting of MDCM’s senior executives to discuss the situation. “Our jobs depend on what happens the next few quarters. I know we have a good strategy, but we need to get our implementation right,” he explained. CFO Sharon Leis responded, “Well, our margins have been shrinking for eight consecutive quarters. We’ve got too much in working capital, not to mention one of the least efficient cost structures in the industry. I can’t fix any of these things, though, because by the time I get any information, it’s often more than forty-five days old! In my mind, we need to continue to cut costs.” Pat Perry, the vice president of marketing and sales, argued, “Our marketing and sales staff is actually really productive, maybe the best in...
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...MDCM, Inc. (A): IT Synchronization Strategy Question no 1: Articulate a Corporate Strategy based on evidence from the case Answer: MDCM used following corporate strategies to carry out its business globally: Consolidation Strategy MDCM Inc. used the consolidation strategy primarily by growing into the geographical areas such as US, France, UK etc. The company was aimed to serve the customers in a best way delivering quality products with absolute commitment. They made several acquisitions targeting the non US based companies that had competencies especially in contract manufacturing to help serve the local customers. Moreover, the company became more efficient by outsourcing all the inbound and outbound logistics, thus saving the cost and serving the customers in a better way. McMullen ensured that all the outsourcers hired were the ex-MDCM employees and had been a part of the logistics group for ensuring sincerity and efficiency at the same time. Global Strategy MDCM Inc. being a US based company globalized by acquiring firms in all the major regions of world other than US and started using the global strategy by making its first acquisition of a UK based company in 1987, and made more than 20 acquisitions till mid 1990’s. E-Business Strategy Keeping pace with the emerging global economy and the e-business trends MDCM felt serious flaws in its IT system. And to overcome the inaccurate forecasting, scheduling, inventory and supply chain problems and to make its business...
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...BCom (Hons) IT Management Management of Information Technologies Projects ------------------------------------------------- Assignment 1 ------------------------------------------------- Case Studies MDCM A & B University of Johannesburg MDCM Inc. (A): IT Strategy Synchronization As a member of the MDCM executive team, given the information in the case study we as a team were tasked to define the overall company strategy, business goals and high level IT objectives. MDCM Inc. corporate strategy is to run the company under one single brand across all its subsidiaries geographically based. The company needs to boosts it profits by increasing productivity, to solve this requirement IT Systems and the implementation thereof needs to be addressed. This is due to current lack in forecasting, scheduling, inventory and supply chain problems. We need to match/ align the IT objectives with the company strategy. We wants to be a market leader in the medical product manufacturing industry and we want to increase our market share. We need to reduce internal costs by identifying functional areas where IT can be applied to assist in reducing costs, i.e. IT systems will replace some of the workforce. The risk here is that currently we have so many different / complex systems in place that that also leads to higher admin costs. Not all of the staff understands all the systems. This leads to previously mentioned lack in forecasting, scheduling, inventory and supply chain...
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...MDCM, Inc. (A): IT Synchronization Strategy Question no 1: Articulate a Corporate Strategy based on evidence from the case Answer: MDCM used following corporate strategies to carry out its business globally: Consolidation Strategy MDCM Inc. used the consolidation strategy primarily by growing into the geographical areas such as US, France, UK etc. The company was aimed to serve the customers in a best way delivering quality products with absolute commitment. They made several acquisitions targeting the non US based companies that had competencies especially in contract manufacturing to help serve the local customers. Moreover, the company became more efficient by outsourcing all the inbound and outbound logistics, thus saving the cost and serving the customers in a better way. McMullen ensured that all the outsourcers hired were the ex-MDCM employees and had been a part of the logistics group for ensuring sincerity and efficiency at the same time. Global Strategy MDCM Inc. being a US based company globalized by acquiring firms in all the major regions of world other than US and started using the global strategy by making its first acquisition of a UK based company in 1987, and made more than 20 acquisitions till mid 1990’s. E-Business Strategy Keeping pace with the emerging global economy and the e-business trends MDCM felt serious flaws in its IT system. And to overcome the inaccurate forecasting, scheduling, inventory and supply chain problems and to make its business...
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...Assignment 1 (Case Studies MDCM A & B) | | | | 2/17/2014 | | Question 1: You are a member of the MDCM executive team. Use the information give in case MDCM (A) to help solve the management crisis. You should define the overall corporate strategy, the business goals and the high-level IT objectives. Answer 1: Corporate Strategy: A strategy is a high level plan to achieve one or more goals and MDCM’s corporate strategy is as follows: * To reduce operating costs through better coordination of the manufacturing process and the introduction of efficiencies to the manner in which the organization operates * To achieve profitable growth through the acquisition of subsidiaries. * To deliver quality parts and assemblies on time through the alignment of the organizational structure to the strategy. Business Goals: Business goals are broad statements of intent and MDCM’s business goals are as follows: Business Goal ID | Business Goal Description | BG01 | Reduce operating costs. | BG02 | Increase operational efficiency. | BG03 | Improve the flow of information within the organization and the supply chain. | BG04 | To have one brand for the company across the globe. | BG05 | To improve manufacturing efficiency and quality. | IT Objectives: According to the business dictionary an objectives is a specific result that a person or system aims to achieve within a time frame and with available resources, MDCM’s IT objectives are as follows: IT Objective ID | IT Objective...
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...KEL170 MARK JEFFERY AND JOSEPH F. NORTON MDCM, Inc. (A): IT Strategy Synchronization Introduction MDCM, Inc., one of the world’s largest contract manufacturers for medical devices, had just announced its fifth consecutive quarterly loss. The firm posted revenues of $1.12 billion with net losses of $33 million for the second quarter of 2002. For Max McMullen, this was yet another agonizing episode since he took over as CEO two years earlier. Despite major company reorganizations, his promises to the shareholders for operational and cost improvements had not been realized. Given the company’s lackluster record, the next twelve months were critical in proving that these promises could indeed be kept. Concerned, McMullen called a meeting of MDCM’s senior executives to discuss the situation. “Our jobs depend on what happens the next few quarters. I know we have a good strategy, but we need to get our implementation right,” he explained. CFO Sharon Leis responded, “Well, our margins have been shrinking for eight consecutive quarters. We’ve got too much in working capital, not to mention one of the least efficient cost structures in the industry. I can’t fix any of these things, though, because by the time I get any information, it’s often more than forty-five days old! In my mind, we need to continue to cut costs.” Pat Perry, the vice president of marketing and sales, argued, “Our marketing and sales staff is actually really productive, maybe the best in...
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...Information technology are evaluated using a score card which will be used to establish a portfolio Application Model Matrix which will be used in comparing the projects, some of the proposed infrastructure projects for MDSCM include standard computing hardware and software, website and data warehousing. The website is the project with the highest likelihood to succeed and also will add value to the business. Introduction: The following is a summary of the information technology projects appropriate for the MDCM Company, IT infrastructure required include networking, standard computing hardware and software, data warehousing, messaging system and a website. A score card is also established in order evaluate each project and these scores are represented in a Portfolio Application Model Matrix. IT infrastructure: Networking: This project involves the use of internet and networking resources available to enable the sharing of information across the subsidiaries and also within the subsidiaries, networking will improve quality of products given that it will enable sharing of information with the various departments and subsidiaries and therefore add value to products. Computing hardware and software: According to the case study the company different hardware platform systems including AIX, UNIX, Windows NT, windows 2000, adoption of a standardized operating system will help reduce both support costs and maintenance costs. This will enable the company gain competitive advantage...
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...[pic] Resolution of the World Health Organization After meeting in Geneva in May 2003 for the Fifty-Sixth World Health Assembly, the WHO outlined its Global Initiative for the Elimination of Avoidable Blindness, or VISION 2020 plan. The WHO urges national governments to: • Set up, not later than 2005, a national VISION 2020 plan, in partnership with the WHO and in collaboration with NGOs and the private sector. • Establish a national coordinating committee for VISION 2020 or a national blindness prevention committee, which may include consumer or patient groups, to develop and implement the plan. • Commence implementation of such plans by 2007 at the latest. • Include effective information systems with standardized indicators and periodic monitoring and evaluation, with the aim of showing a reduction in the magnitude of avoidable blindness by 2010. • Mobilize resources for eliminating avoidable blindness. In turn, the WHO agrees to: • Maintain and strengthen the WHO’s collaboration with governments and all partners of the initiative. • Ensure coordination of the implementation of the VISION 2020 plan, by setting up a monitoring committee grouping all those involved, including national government representatives. • Provide support for strengthening national capability, especially through development of human resources, to coordinate, assess, and prevent avoidable blindness...
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