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Strategic Management - Functional Strategy

HR and Information systems Strategies - Finance Marketing, Human Resource, Management Information Systems and logistics

   Posted On :  26.06.2018 10:48 pm

The HR strategy of many multinational companies to take part time temporary employees or leasing temporary employees from learing companies.

HR Strategies

 
The HR strategy of many multinational companies to take part time temporary employees or leasing temporary employees from learing companies. Employees specially working in IT firms in India are working on one to five year projects and re experiencing ‘Pink – slip syndrome’ as to what to do after the project is completed. The worst hit are those employees who are sacked from their jobs after September, 11 2002 attack of world trade centre.
 
The number of employees who work only part – time is steadily increasing. Part-timers are attractive to a company because the firm does not need to pay fringe benefits, such as health insurance and pension plans.
 
Telecommuting, office at home, flexi time and career breaks are the order of the day firms also resort for employing from diverse cultures. Pharma companies like Hoechst and cosmetic firms like Avon could turnaround unprofitable inner city markets by taking local persons to manage local markets

Information systems strategy

 
Corporations are increasingly adopting information system strategies in that they are turning to information systems technology to provide business units with competitive advantage.
 
In 1989, Wal-Mart started building a huge database of customer information in its data warehouse systems located at its headquarters at Bentonville, Arkansas. The company collected sales and customer related information for each store and fed that information into the warehouse systems.

In the early 1990s, Wal-Mart continued to employ new technologies to facilitate better analysis of customer data as they became available. Wal-mart’s IT experts used 3-D visualization tools to make accurate estimates of products most likely to be bought by customers on the basis of parameters such as ethnicity, geographic location, weather patterns, local sports affiliations, and around 10,000 other varied parameters. Wal-Mart made around 90% of its stock replenishments every month, based on the analysis of customer data generated through the data warehouse.
 
To make shopping at Wal-Mart a pleasant experience, Wal-Mart installed customer information kiosks in its stores in 1996. The kiosks helped customers find out the price of any product and get a brief description of it. In 1996, Wal-Mart launched its website – www.walmart. com - to provide information to its customers on all the products it stocked and to enable online sales.
 
IT played an important role in improving the efficiency of operations at Wal-Mart. The benefits which accrued were passed on to customers, as per Wal-Mart’s policy. Wal-Mart’s annual report 1999 said, “The first and the most important thing about Wal-Mart’s information systems is precisely that the customer’s needs come first. By using technology to reduce inventory, expenses and shrinkage, we can create lower prices for our customers and better returns for our shareholders”.
 
At the dawn of the new millennium, Wal-Mart was one of the world’s largest companies, with revenues of $165 bn in fiscal 2000. Wal-Mart’s ‘store of the community’ program made effective use of bar code technology and advanced data mining techniques. The ‘store of the community’ program was a very successful initiative by Wal-Mart, which contributed to increased customer loyalty. By 2003, Wal-Mart was the world’s largest company, with revenues in fiscal 2002 amounting to $244.5 bn. Multinational corporations are finding that the use of a sophisticated intranet for the use of its employees allows them to practice follow – the –sun management, in which project team members living in 1 country can pass their work to team members in another country in which the work day is just beginning. Thus, night shifts are no longer needed. The development of instant translation software is also enabling workers to have online communication with coworkers in other countries who use a different language. Lotus Translation Services for Same time is a Java –based application that can deliver translated text during a chart session or an instant in 17 languages. Software, e-lingo (www.e-lingo.com) offers a multilingual search function and Web surfing as well as text and e-mail translation.
Tags : Strategic Management - Functional Strategy
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