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Draper IT(case study) - Assignment Example

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Draper IT(case study)

Company is investing heavily to remain competitive in the market but the current business needs to revive. The out sourced IT division has been sold to Hardy media solutions eighteen months ago. Hardy's performance and poor services also dissatisfied the previous customers. Due to the problems faced by Drapes, it started developing its ERP system with the view that in future company has to remain competitive in the market place. It has to improve its services, launch new products, which should be cost effective as well as technologically best in the market. Recently company has more business options, which could be explored by the company and to motivate its managers to grab the opportunities, so that performance of the company could be improved.
As we already know that the said company draper is medium sized IT company. The company is in the business of providing technological solutions to its clients. It is a fast moving technologically complex and innovative industry dominated by lots of firms with well-developed communication and technological innovations. The firms which cannot be able to keep pace with innovations forced out of the business. So industry has been affected by external environment as well as internal changes. So any analysis or strategy, which could be formed in and around company, must follow the various strategic management paths. Companies must not only developed new businesses, but also carefully prune, harvest or divest tired, old businesses in order to release needed resources and reduce costs. The overall evaluation of a business's strength, weaknesses, opportunities and threats is called SWOT Analysis. SWOT analysis consists of an analysis of the external and internal environment. A SWOT analysis summarizes the key issues from the business environment and the strategic capabilities of an organization that are most likely to impact on strategy development. In general, a business unit has to monitor key macro-environment forces (demographic-economic, technological, political-legal and socio-cultural) and microenvironment actors (Customers, Competitors, distributors and suppliers) that affect its ability to earn profit (Johnson, & Scholes, 2002).
Then, for each trend or development, management needs to identify the associated marketing opportunities and threats. Each business needs to evaluate its internal strengths and weaknesses in marketing, finance, manufacturing and organizational capabilities. In applying the SWOT Analysis it is necessary to minimize or avoid both weaknesses and threats. Weaknesses should be looked at in order to convert them into strengths. Likewise, threats should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the potential of a firm. So applying SWOT analysis on draper engineering Ltd. as discussed above as follows:
Strength: Draper Engineering Ltd. is an industry, which is growing and progressing all around world. In present circumstances, IT is an industry, which is an integral part of almost every industry, and human life cannot be thinking of without information technology. So being in an industry, which is growing, and progressing Draper Engineering Ltd. have an inherent strength of the industry as a whole. Draper has sufficient number of clients and market. It is a medium sized company and already has four ...Show more


Draper engineering ltd. is a medium sized IT company providing business solutions to 4 European car manufactures and 2 American truck manufactures. Most of the workforce of Draper is older than normal and working for last 20 years. The core group of technical and middle management staff comes under above category…
Author : fay56
Draper IT(case study) essay example
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