Strategic Information System

This document discusses the importance of strategic planning for a company entering the real estate sector. It explores the reasons why strategic planning is necessary, such as analyzing the internal and external environment, improving communication and coordination, and controlling and managing overall operations. Additionally, it provides an analysis of Porter's 5 Force Model in relation to the company's entry into the real estate sector, including the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and the rivalry among existing firms.

Strategic information system

Strategic information system
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Strategic information system
Dhamas Company Pvt. Ltd
A.) Strategic planning
Strategic planning is considered as the process of planning in which the future strategies
of the company are considered and also the strategy is documented at the time of
implementation plan. The process of strategic planning focuses on interaction with the
people. It is important for the company to consider strategic planning as it helps to
respond to the changes in relation to the external environment and also it emphasizes on
deploying the internal resources which can help the company to maintain its competitive
position in the market (Cassidy, 2016).
In my opinion, Dhamas require strategic planning as it can help the company to grow in
the competitive market. With effective Strategic planning the company can make day to
day decisions in a proper manner and also it will help to focus on the progress related to
the changes which are taking in the market. Dhamas focused on entering into the real
estate business, so in this context it is important for the company to emphasize on internal
and external environment so that right decisions can be considered for achieving large
market share in the market. In the real estate business, it is necessary for the company to
focus on making the strategic plans in which the factors related to external and
environment should be considered as it can help in accomplishing the set targets in the
competitive market. So, one of the important reason is related with analyzing the internal
and external factor. The company requires strategic planning so that proper evaluation
can be made of external and internal environment.
The second reason is related with communication in which it has been stated that if there
is strategic planning, then it can be easy for the top management to focus on the process
of communication and also it will improve the coordination in the company. The
company entered into the real estate business so there is risk of growth, so strategic
planning can help the company to focus on security and future reference which can
safeguard from the loss (Wolf & Floyd, 2017).
Third reason is related with controlling. The company requires strategic planning as it can
offer a way of controlling and managing the overall operation of the business. By
offering a realistic model of the future outcome, the company can utilize the resources in
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Strategic information system
an effective manner. Strategic planning helps in proper utilization of the resources which
can enhance the profit of the business in the highly competitive market.
So, it is important for the company to focus on strategic planning and by referring to the
reasons it can help the company in enhancing the large market share.
B.) PORTER 5 FORCE MODEL
Figure 1
(Source: Research Methodology, 2018).
 Bargaining power of the buyers
The bargaining power of the buyer is high as there are many companies who are
offering the products in food and beverage sector, furniture sector, office supplies
and medical sector. In the food and beverage sector, the company offers the
products related to mineral water, bottled water, rice, flour and juices. So, in this
reference it is important for the company to offer quality products and services so
that growth can be attained in the competitive market (Damas, 2018b). So, it is
recommended that as the company is entering into the real estate sector so that it
is important to focus on the overall demand of the customers and also the prices
should be set according to the market price.
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Strategic information system
 Bargaining power of suppliers
The bargaining power of the supplier is low as there are many suppliers who
offers product in the market in the food and beverage sector, construction sector
and furniture sector. The company is also not dependent on the suppliers. Like in
office automation and supplies sector, the company emphasizes on offering quick
and efficient delivery installation services for the products. The products are
installed by the company like projectors, duplicators and copiers so the
requirement of the supplier is less (Damas, 2018c).So, it is recommended that
company should focus on minimizing the cost of installation so that customer
avail the services from the company.
 Threat of new entrants
The threat of new entrants in this sector is low, as there is high capital
requirement. It is not possible to enter into the sector as the capital needed and
risk is high. So, it is recommended that company should that company should
enhance its investment in the real estate sector so that large market share can be
grabbed. It will also help in enhancing the profits and brand image in the
competitive market (Damas, 2018a).
 Threat of substitutes
The threat of substitute is high as the customers have the chance to substitute the
products or the services if the quality is not maintained. It is necessary to maintain
the quality of the products so that customers give priority to the products and
services of Damas Company. It can be recommended that to attain the large
market share, the company should focus on training the employees so that they
can perform their activities with efficiency and dedication. Training boosts the
knowledge of the employees which can also maintain the culture of the company
(Haff & Triplett, 2015).
 Rivalry among the existing firms
There are many companies in Maldives who are offering similar products and
services in the market. The rivalries that exist in the market are Tesco and Wal
mart. These are the competitors who are offering similar products of the company
in the food and beverage sector so that it is important for the company to maintain
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Strategic information system
image in the market. So, it has been recommended that company should focus on
offering unique services and offers to the customers so that they get attracted
towards the company. Like in real estate sector the company should select the best
location in Maldives so that growth can be attained. For office units, the location
should be in the office area so that preference can be given by the buyers (Damas,
2018c).
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Strategic information system
References
Cassidy, A. (2016). A practical guide to information systems strategic planning. Auerbach
Publications.
Damas.(2018a). Real estate development. Retrieved from:
http://www.damas.com.mv/Real-Estate.php
Damas.(2018b).Food and beverage. Retrieved from: http://www.damas.com.mv/Food-
Beverages.php
Damas.(2018c).Office automation and supplies. Retrieved from:
http://www.damas.com.mv/Office.php
Haff, G. G., & Triplett, N. T. (Eds.). (2015). Essentials of strength training and
conditioning 4th edition. Human kinetics.
Research Methodology.(2018). Five force analysis. Retrieved from:https://research-
methodology.net/apple-porters-five-forces-analysis-3/.
Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven
agenda. Journal of Management, 43(6), 1754-1788.
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