ANALYSIS OF IS/IT AT GULF DISTRIBUTORS   Term Paper ID:36409 Click to get this paper

Essay Subject: Considers the current situation at Gulf Distributors in terms of IS and IT and ...... More...

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Paper Abstract: Considers the current situation at Gulf Distributors in terms of IS and IT and makes recommendations for improving the business processes. Includes an executive summary and SWOT analysis. Paper Introduction: Analysis of IS IT at Gulf Distributors Executive Summary A successful family-run company Gulf Distributors is in a uniqueposition to use technology to advance its already successful businessstrategy The company deals with a variety of customers and supplierslocated around the world and it is in a unique position to enhance itsposition by using the Internet By implementing a system that bringstogether customer relationship management and supply chain management thecompany can take into account the different world views that are associatedwith its business Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. The company is recognized as a reliablepartner able to meet the needs of diverse companies in a number ofdifferent countries. The company is an import-exportorganization with customers and suppliers in the Middle East, Europe andAsia. To some degree, this is the result of the long-termpersonal relationships that have developed over the years with the variousfamily members. This can be done with little human intervention. The owners of the company have a different world view, and seethe order as input, but see revenue and profit as the output (Couprie et al1). Because the company is family-owned and operated, and has been in thefamily for generations, it is not surprising that there has been a generalreluctance to modernize. By implementing a system that bringstogether customer relationship management and supply chain management, thecompany can take into account the different world views that are associatedwith its business and incorporate those into technology. It has more than enough capital to fund asignificant investment in IT and IS, and has a workforce that is willing tolearn and able to do so. Cosmopolitan in education and in background, thecompany is well-positioned to take on additional international marketingduties without impacting its current customer and supplier base. Already, Gulf Distributors has been able to work with some ofthe European contractors doing business in Iraq, and there are moreopportunities as contracts continued to be filled in that country. The company faces strong opportunities because of the situation in theMiddle East. The companycould pass to his three sons, or to a combination of the sons and thenephews. Other threats include the political environment both in the MiddleEast and in the countries where Gulf Distributors conducts its business.Although the political climate has favored the company thus far, politicalbacklash could render the situation more tenuous, particularly with regardto the pressure exerted by the United States on import-export companies inthe region in light of that country's focus on reducing internationalterrorism. From the world view of theaccounting manager, who is an actor, the order prompts an invoice to begenerated and the invoice is the output in a separate root definition.Environmental constraints would involve the customs issues, logistics andproduction parameters that must be met in order for the transaction to becompleted. Thus any additional IT/IS investment must not serve to isolatethe customer from the company, but continue to reinforce the closerelationship between customers, actors and owners in the businessprocesses. Retrieved 1 Sep from: <>.Dahmash, Mohammad. Primarily, the company imports goods from Europe and Asia for resalein the Middle East; however, there are also some goods which flow fromKuwait to Europe, as well. The ownerstake pride in a personal relationship with their key customers, and inknowing all of their customers by name, if not by face. At thispoint, Gulf Distributors does not work with the American military directly,and there is resistance among the owner and his sons to do so. The company has been in business in one form oranother for several generations, and has grown from a local trading companyto the international company that it is today. Asa result, difficulties arise when the company needs to trace a particulartransaction, and there is a feeling among the principals that the level ofcustomer service is deteriorating. Of course, Gulf Distributors is not the only company that is poised tobenefit from the increased economic activity in the region. Otherdistribution companies are also aware of these trends, and some have Websites and more advanced marketing processes in place to take advantage ofthese opportunities. The business was entirely domestic until the197 s when several family members were educated in Europe and the UnitedStates and recognized opportunities to expand their business overseas.Armed with their education and the contacts they made through theireducation, these family members extended the company into the internationalmarket and did so successfully. University of Calgary, 2 5. In addition, family members who arefamiliar with IT capabilities in other organizations are of the opinionthat an integrated IT strategy could help the company generate morebusiness and improve its profitability. In addition, several of the company's own principalshave spoken of starting their own company similar to Gulf Distributors.This is not an unusual strategy in the Middle East where sons and cousinsmay all work in the same industry, although rarely as direct competitors. More time can be dedicated tosubstantive matters rather than on routine administration. In addition, the company has good relations with both Dubai and AbuDhabi, and has benefited from the increase in tourism that hascharacterized the United Arab Emirates in recent years. Organizational Culture and IS/IT Several key root definitions are associated with the system. Soft Systems Methodology. Because of the nature ofthe business, the company was slow to automate with most transactionsconducted on a "handshake." This was particularly true when the companyoperated only in Kuwait. New hardware and software, perhaps SAP, will be required to facilitatethe changeover. Analysis of IS/IT at Gulf Distributors Executive Summary A successful family-run company, Gulf Distributors is in a uniqueposition to use technology to advance its already successful businessstrategy. This puts some time pressure on thedecisions that are to be made. Although theowners recognize that as they expand their business they will not be ableto maintain such close personal relationships with all of their customers,they intend to maintain good relationships and have customer relationshipsas a priority in their strategy. High-Level Business Strategies The current owners of Gulf Distributors have indicated that customerrelationships and customer satisfaction are paramount to the company's long-term goals. 1. Using the Web as aportal, Gulf Distributors can implement a system through which customerscan enter orders directly and have those orders automatically triggersubsequent events, whether ordering supplies from vendors or generatinginvoices. "Pleasing the Visitors." MEED Middle East Economic Digest, 49, p. As that nationcontinues to market itself as a destination for Asian and European leisuretravelers, there are likely to be additional opportunities for GulfDistributors (Dahmash 8). As sons and nephews have come into the firm, they havecome to know the long-term customers. Environmental considerations, including printing customs forms, can beautomated as well. In this way,customers can interact with Gulf Distributors on those orders which are outof the ordinary, or when they need special attention. At the same time,the technology will not replace the personal relationships that the companyhas with its suppliers and customers, but make those relationships morevaluable by enabling Gulf Distributor personnel to focus on the out-of-the-ordinary and the unusual request. The primary owner is73 years old; his sons and nephews are principals in the company, but theowner continues to make the major decisions. Works CitedCouprie, Dale, et al. More importantly, however, will be a shift in the internalculture, but not a radical departure from the company's current focus onpersonal service. It is recommended that the Internet be used to build a bridge fromGulf Distributors to its customers and suppliers. Introduction Gulf Distributors is a family-owned and operated company based inKuwait and serving the Middle East. However, the company does not have a Web site, andrecognizes that with some investment in the IT infrastructure, there couldbe considerable expansion opportunities (Scott 1). There is no clear succession plan in place, and it remains unclear howthe company will be run once the current owner steps aside. In this way, the company can let machineshandle routine administrative tasks, and let the people focus on marketing,customer service and managing suppliers. The other key strength is the company's financial position. Not surprisingly, the company is organized along family patriarchallines, and this may be its most significant weakness. While he is open to newideas, he is not familiar with all of the intricacies of the Internet, forexample, and believes that while technology can help build the company,personal relationships will make the company successful in the long-run. At the same time, the environmental constraints of an import-export company can be significant and must be taken into account in thetransformation process. However,the opportunity to work with contractors has proved successful. Instead, the technology will help the companydo what it does best-meet the needs of its customers through extensive andcustomized personal service-but do it with the advantages that twenty-firstcentury technology has to offer. Forexample, a customer places an order with Gulf Distributors, and laterreceives the goods at his location. "Plastics Firm Grows by Modernizing." Fairfield County Business Journal 44, p. Privatelyowned, Gulf Distributors has no outstanding debt, owns three facilities,and has a strong cash flow. As new customers and suppliers arefound, they get to know the principals at Gulf Distribution. 8.Scott, Andrew. The company deals with a variety of customers and supplierslocated around the world, and it is in a unique position to enhance itsposition by using the Internet. Decisions such as investing inIT or IS infrastructure are thus probably best made now, while the owner isstill actively involved in the company, or well after he retires when theownership structure is made clear. The "personal touch"that has made the company successful to this point in time will not belost, but the company can greatly reduce the amount of time it takes toenter and process an order. The world view is that of thecustomer, the customer is also the actor (as well as a customer, from theCATWOE point of view), and the transformation is the process of changingthe input (order) to output (shipment). Computers were introduced to the businessin the 198 s, when Lotus was used to track orders, and the company has usede-mail to receive orders and communicate with customers and suppliers sincethe mid-199 s. SWOT Analysis Gulf Distributors has as its primary strength its relationship withits customers and suppliers. Again, this strategy will free the personnel at GulfDistributors to focus on customer relationships and on building bettersupplier relationships, as well. The new system will use technology to a far greaterextent than it has been used in the past, but the goal of the technologywill not be to replace the human contact between Gulf Distributors and itscustomers or its suppliers. There is not likely to be a power struggle in the traditionalsense, but there may be an unsettled time during the transition which mightmake day-to-day operations more difficult. Today, because of the international nature of thebusiness and the increased complexity of transactions, it is necessary forthe company to use computers and the Internet to conduct its business.However, no formal IT organization has been put into place and the ITfunction has not been integrated into the company's overall operations. 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