Case of MDCM Inc. Harvard Case Solution & Analysis

Operations shall Remain Globally Focused

IT systems could be used in integration between the local and the global customers. The company would be able to serve better if it applies strategies that are synchronized with the behaviors of local and the global customers. The IT system could also be used in minimizing the cost and increasing the demand of a product and generate error free delivering of products(Swensen(, 2009).

Forecasting to be Performed Efficiently

The trends and behaviors of customers could effectively be utilized in future forecasting of the performance through the use of IT system. Similarly, through the use of graphs and charts the company would show the decreasing or increasing trends of the organization regarding their performance.

Highly Customized Products for the need of their Customers

Customize products could be delivered to customers through e-commerce and can fulfill the demand of local and global customers. IT systems could effectively be used in maintaining the website and to transact efficiently. As the company would also send its shipments of the products through online system, therefore the company could provide a tracking service for their shipments and other different approaches so that their customers would find these facilities appreciable enough to stick with MDCM’s products.

Porter’s Five Forces Model

Bargaining Power of the Supplier

The bargaining power of a supplier has shifted from lower to moderate as since MDCM were strong in its customer satisfaction, there would be little or no power of its suppliers as MDCM were in full control of the contract price. However, since the company has failed to create an impression for consecutive 5 months, the suppliers would feel the differnce in the performance of MDSM and that would raise their reputation.

Bargaining Power of the Buyer

The bargaining power of a buyer is also increasing because in the previous five quarters the institutional customers would have little chance to switch the product due to high level contracts, however as the performance of the company fails, the medical institutions would claim their powersof developing contracts and have their say regarding price.

Threat of a New Entrant

There is a high to moderate threat of a new entrant in the industry as MDCM is failing to target its customers which provides a significant gap for any company to tap that market and gain the particular advantage. The poor performance of the company can lead to many competitors as they seek opportunity to satisfy their customers and maximize their wealth.

Threat of a New Substitute

There are many substitute for the models and alternatives regarding the particular model applied by MDCM. There has been no proper integration between departments and subsidiaries of the companies, therefore a competitor can come up with an exclusive substitute or an alternative plan that could increase their satisfaction of customers and thus could result in achieving profitability.

Case B

IT Projects Appropriate for MDCM

There are twelve IT projects that have been identified by the IT team of the company which would be appropriate in resolving the current issues of the company. The first project was to globalize the IT standards and make a single IT methodology throughout the organization. The second project includes to unify and merge all the data centers that the company had, and to consolidate them in three locations. The third project was to focus on outsourcing those projects which were non IT related. The fourth IT project identified by the company includes standardizing their server and hardware platform which would eliminate their cost of having many different standards and combining them in to a single standard. Furthermore, the fifth IT project was to embed ERP throughout the organization which would normally take twelve months to complete.

The sixth IT project included the development program for employees in providing them benefits so that it increases their productivity. The seventh IT project was to manage the supply chain of the company which was considered as an important task. The company aimed at reducing the number of suppliers from thousands to hundreds. The eight IT project was aimed at stream lining the design system which allowed the company to reduce the cycle time and improving the overall process of the product. Another IT project was focused on improving the collaboration system of the company and increasing ways of interaction between inter-departments and subsidiaries. The IT project also included in maintaining a strong customer data in the data warehouse, where the company would store the useful data of customers to decipher new trends and settings. Moreover, the company would implement e-procurement system which would increase savings for the organization. Lastly, the IT project included a customer portal where customers would be very likely to help themselves in placing the orders and managing their operations.................................

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