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Aenergy Company Strategic Solutions

Essay by   •  April 14, 2013  •  Case Study  •  1,946 Words (8 Pages)  •  1,699 Views

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Strengths:

* AEnergy has an extremely skilled and experienced research and development team to bring about the new technology initiative and implementation. They can use these skills and experience to expand in the other markets to their advantage.

* Lean production system has been used to increase energy efficiency and labor productivity and minimizing defection rate.

* The company has strong brand value recognition which is a strong point for them to be able to capture more market share in other markets.

* It specializes in the design, development, and production of the highest quality components for diverse energy efficiency and energy generation customers.

* Strong supply-chain management helps build competitive advances in the energy efficiency.

* Functional efficiency that enables employees to integrate technology into their design, development, and production of component parts.

* The company has a very highly secured network and servers which has been in use in

Weaknesses:

* The company is currently operating its business in one region with limited number of staff, 30 members to be precise, thus it is limited to expand business to new region with the existing staff.

* Current infrastructure has numerous redundancies to maintain usability in the event

of a crisis and also increases the cost significantly due to redundancy.

* Currently the company has a single Internet Service Provider, which may turn out to be an issue in case of outages at their end.

Opportunities:

* Currently there are only a few competitors for this innovative technique due to the variability in change of part size from the tool mold to the finished product, which is a huge advantage for the company and it should build up on this to get a good lead of its competition to stay ahead in the market.

* Continual research and innovation of new technology by the research and development team would help the company develop new products and stay ahead of the competition.

* Since the company is planning to hire new employees in the expanded market, the new staff would bring in various new ideas and possibilities which the company should utilize appropriately to grow.

Threats:

* New sales team members will have to establish healthy relationships with clients in the new regions and for that they would have to share proprietary information with the. This would make the company vulnerable of its proprietary information being leaked.

* Competitors can reverse engineering our specialized products and then manufacture similar products at cheaper rates and try to capture the markets. This can lead to a huge loss of market share and financial losses.

* The limited staffs that we have currently have huge experience and knowledge about the products developed by the company. Any one person or more leaving the company would be a huge loss of knowledge for the company. This could lead to knowledge drain and also sharing of knowledge with rival companies as the person leaving the company could join rival companies and thus provide them with valuable information about our products.

B. SWOT Result Analysis:

B1. Ways to enhance strengths

AEnergy Company has several strengths in their current IT infrastructure that is identified by analyzing SWOT. The company has got a skilled and experienced research and development team that enables innovating new technology for energy generation and energy efficiency. However, the other strength is functional efficiency that enables employees to integrate technology into design, development and production of component parts for energy efficiency. But with the advent of new technologies, everything is changing rapidly in the world of IT and energy sector. So, continually updating the system is immensely necessary to survive in the power industry as obsolete technology never provides an opportunity to reap profit from the fierce competitive edge. Thus, to maintain 20% projected growth of the server and system use and storage, the company must innovate and/or obtain unique parts for energy generation which are environment friendly along with being cost effective. For this purpose, investment in technology which was at 46.643% of total company general budget in the current year, should be increased to allow for research and development to increase the gap with the rival company's and stay ahead in the race.

B2. Prioritize deficiencies

There are some deficiencies found in the IT infrastructure based on SWOT analysis such as the limited number of staff, 30 members to expand business to new region, etc. Current infrastructure provides numerous redundancies to maintain usability in the event of a crisis which also increases the cost significantly due to being redundant. However, redundancy often provides inefficiency in the functionality of the organization particularly in the IT infrastructure. It is also costly to maintain and repair the redundant parts that lead to higher operating cost. So, the redundancies has to be the highest priority in the current IT infrastructure

Below is the prioritized list of deficiencies:

* Security of the company's IT infrastructure

* Planned shutdown of the old plant

* Visits to customer premises meaning that new technology initiatives can be visited by the prospective vendors.

3. Discuss the deficiency with the greatest potential for impact on the IT infrastructure.

The company needs to do more to increase efficiency with the same resources. For instance, remove unnecessary cost like using fewer IT resources; it can reduce energy consumption, further lowering costs and carbon footprint. Another potential point is automated processes that can create repeatable practices within IT organization, eliminating the need for staff to begin again each time they perform an IT management operation. By following standard, automated best practices, this IT infrastructure becomes more predictable, delivering projects on time and maintaining service levels and quality to add more strategic value to

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