Posted at 11.19.2018
Infosys is one of the leading software company comes from India. It is widely spread all over the world with lots of branches in different countries. Infosys technologies ltd is founded in 1981 with Bangalore as its head quarters. It developed little by little and became one of the leading software industries. It offers consulting and IT services to clients worldwide. The annual income of Infosys is rolling out steadily and achieved $500 billion in 2002. The primary reason of the company could it be mainly focused on structuring applications which made the business to reach the greatest heights in the program industry. It employs about 17, 000 employees worldwide where 10, 000 are software professionals. Airbus, Cisco, Nordstrom, Boeing are some of the prestigious companies which are in the set of 116 clients of Infosys in the entire year 2002. It recruits new talent every year by conducting campus interviews in engineering colleges all over India. With this research paper, we will discuss about the topics like organisational strategy aims, objectives, their vision, mission, changes to be produced, stakeholders, their variations and stakeholder's effects on the organisations. We will draw a framework for strategic stakeholder management. we will also discuss about the organisational environment, porter's five force model, PESTLE analysis, SWOT analysis etc and we will explore the key issues of every force of porter's force. We will discuss about the internal strengths and weaknesses of SWOT analysis within an organisation and also its external opportunities and threats.
ORGANISATIONAL STRATEGY AIMS AND OBJECTIVES:
Infosys follows the TCoE technique to cater its testing needs and also to improve its IT operations. TCoE is nothing but testing centre of excellence. To focus on the testing, it is separated from the development and business teams to a centralised testing team. The TCoE strategy will help the organisations in achieving working excellence. The organisations can provide great competition to the other organisations in developing new products within small amount of time.
The TCoE model proposed by Infosys can cover all the following points.
It can provide better customer satisfaction due to increased quality of software.
More return of investment kept on software testing
The production support cost can be decreased.
Marketing the new functionality could be achieved in less time
It can guarantee better performance culture and even more job satisfaction
Vision of Infosys:
The vision of Infosys is to grow globally and be the best commercially and morally.
It mainly aims to gain honour in all top features of its business conduct. It developed a C-life principle to clarify this.
Lead by example
Integrity and Transparency
Source: www. infy. com
The TCoE strategy should help the organisation to create the amount of commitment to testing and must be mounted on the functions through projects, rewards, actions.
To develop and keep your hands on organisational commitment to the TCoE initiative, small deliverables revealing the business enterprise value are essential. The staff which plays main role in developing a product must be rewarded to encourage them and make them more indulged in the organisation's development. The staff must be rewarded predicated on their work and dedication towards the company. Though there are a great number of factors which are necessary in manufacturing a product, employee is the most crucial factor. So, the organisation must be careful while choosing the employees. The organisation must be careful while providing customer services. The organisation which gives customer services to field consultants and clients with a good control will be ahead in reaching its product in to the market and people. Infosys is one such company which gives the best customer services through which it gained good name on the market as well as in the minds of the people.
The strategic values are extremely very important to an organisation in the present competitive world. A corporation should have a unique strategies to survive in the market. The organisational values will be the beliefs and ideas that an organisation will have in reaching its goals. Organisational values guide the employees, staff and organisation's board in performing their work. Though the organisational culture and corporate culture are explained separately, they will be the same concepts. Strategic values are those which are being used to compete with the other organisations. Strategic values will be the strategies that are used to attain the goals and objectives of the organisation also to compete and survive with the other organisations.
Infosys technologies ltd is a company who's extremely popular among the marketplace and the folks. There are so many stakeholders in the business. These stakeholders include employees, customers, organisations and government. The internal stakeholders will be the employees, managers who work in the Infosys organisation and owners or shareholders. Employees will be influenced by wages and managers will get bonuses. The external stakeholders include customers, suppliers and government [miller and lewis, 1991]. The external shareholders are involved in the company but are not employed in the company. Stakeholders are extremely important because they not only exist in the company however they demand the company.
Employees, customers, investors and shareholders come under the primary stakeholders. These stakeholders involve in the survival and development of the organisation. Everybody will have their own roles and works to do in the organisation.
Media, non-governmental organisations along with some other groups come under secondary stakeholders. These stakeholders does not involve in the organisation's development or survival.
These primary and secondary stakeholders will apply a lot of pressures on the organisation [Waddock et al. , 2002]. The customers who are unhappy with the organisation won't show any urgency for the merchandise than the negative stories will damage the business (Thomas et al. , 2004). The stakeholders are also classified as active and passive stakeholders, narrow and wide stakeholders, legitimate and illegitimate stakeholders, recognised and unrecognised stakeholders. The key expectations of stake holders will be the success criterion, whether their interests and thoughts are me and constant delivery etc.
The primary and secondary stakeholders will have a lot of misunderstandings in several regions of the organisation. They may have conflicts while going for a decision about the project. The stakeholders with high influence will affect the project in lots of ways. The organisation needs the support of such stakeholders. There may be conflicts between your stakeholders about the grade of the product, cost of the merchandise. If the quality of the merchandise is bad, the customers will not be happy who primary stakeholders are. The conflicts can arise between
Different stakeholder groups: The conflict of interest is one of main conflicts between your stakeholder groups. It's very difficult to make these both groups interact.
Having client as a stakeholder in the groups: there may be conflicts between the client who is a stakeholder and the stakeholders group. The interests of client may well not be well-liked by the stakeholders group. Here, the conflicts may rise between the client and the stakeholder.
Personal interests and stakeholders interests: The non-public interests of the organisation may conflict with the stakeholders groups along with the clients. These conflicts may rise because of the difference in the moral values or because of the financial values.
These conflicts between the stakeholders will affect the organisation in different ways. The organisation will face problems in attaining its goals and objectives. The conflicts between the clients and stakeholders provides bad name to the organisation as well concerning its products. The organisation cannot concentrate on its goals due to these conflicts and it cannot implement its strategic activities due to these conflicts. Infosys which really is a leading software company makes sure that these kinds of conflicts will not rise in the organisation. It requires necessary steps to include the stakeholders in the strategic decision makings of the organisation and also in various types of activities that occurs in the organisation. By this kind of conflicts, the performance of your organisation will be affected.
We know that suppliers are one of quite stakeholders of any organisation. If these stakeholders raise the cost of supply, it will have a huge affect on the organisation. To be able to sustain the high cost of supply, the organisation will improve the cost of the products that may affect the customers, who are other important stakeholders of the organisation. This results in the loss of the clients.
Stake holder mapping is one of the strategic business tool which helps in identifying and measuring the result of stakeholders within an organisation. It will examine the power of the stakeholders have in the organisation and their likeliness to utilize that power. In addition, it examines the amount of interest they had in the organisation's activities.
Framework for stakeholder management in Infosys:
The above figure is a little framework which ultimately shows the stakeholder management of Infosys. From the above figure, we can say that the stakeholders must be engaged in the organisation's technique to boost the performance of the organisation.
Process of identifying key stakeholders:
While identifying the key stakeholders we have to concentrate on different aspects. The organisation must be able to identify the beneficiaries, who are adversely impacted, locating the supporters and opponents of the project, relationships among the list of stakeholders. By identifying the aforementioned attributes it'll be no problem finding the main element stakeholders. These key stakeholders will be very thinking about the organisation's events and are useful in the development of the organisation.
The following figure will explain the energy and interests of the main element stakeholders.
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Source: G. Johnson & K. Scholes, Exploring Corporate Strategy, Financial Times/Prentice Hall, 2002.
The above figure represents one of the stakeholders mapping which involves four main groups. They are
Less effort is necessary by the organisation
This band of stakeholders have high fascination with the organisation's activities but little capacity to control.
This group of people have less curiosity about the organisation's interests and they don't recognize the amount of effect that they had on the organisation. Because they have less interest, there won't be any disruption by them.
This band of stakeholders have a great affinity for the organisation's activities and they even have the power to affect the business, so these stakeholders must be satisfied first.
Structure evaluation of the organisational strategic position:
The above figure shows the organisational strategy and the factors that influence in analysing, choosing and implementing a technique within an organisation.
The current strategy followed by the Infosys organisation can mostly cover the areas like competitive environment, external climate and globalisation. By following current strategies the organisation will be able to compete with the other organisations to attain their goals. It will be able to cope up with the external climate and may have the ability to survive in this world of globalisation. Nonetheless it is extremely hard going deep to cover up all the areas as the organisations are huge and vast. The existing strategy i. e. , TCoE strategy followed by Infosys can meet the porter's five forces, components of PESTLE analysis.
PORTER'S five forces:
The five forces are threat of new entrants, threat of substitute products, bargaining power of buyers, bargaining power of suppliers and rivalry among existing competitors.
The risk of new organisations on the organisation is less unless it is set up with great investments:
The threat of new entrants to Infosys is very less because Infosys has already been a well established organisation with a number of branches. It is not possible to any new organisation to contend with Infosys starightaway unless it is established with huge investments.
If the new entry costs more i. e. , the expense of latest technology is more:
The risk of cost of technology is also less on Infosys because as it is a large company with lot of financial assets and income, with the ability to capture any latest technology with no problem.
If new laws are introduced:
The risk of new laws may affect Infosys because if the new laws introduced are able to weaken their competitive position then this may help other organisations to attract customers and this will affect the organisation's growth.
If opponents are strong:
If the competition are strong and have excellent staff with them then your threat of new opponents is high on Infosys.
buy in huge amounts:
if the buyers can buy the products or products in large amounts they can demand the organisation as they need. Thus, the bargaining power of buyers is high on Infosys.
Undifferentiated small suppliers:
If the buyers have got more small suppliers then the buyers will have significantly more options to buy the product and it will affect our organisation making the buyer's power high.
Switching cost is less:
If the switching cost between your suppliers is low then your buyers can shift from one supplier to another supplier if their demands are not met.
The power of suppliers is reverse to the power of the buyers
Switching costs are high:
If the switching costs are high then the buyers cannot shift from one supplier to some other supplier easily making the supplier more powerful.
The power of suppliers will be high if their brand value is excellent and got good name on the market.
The power of suppliers will be high if their products are unique and if it's difficult to have them from other suppliers.
Product to product substitute: The risk of substitutes will be high if product to product substitutes are available in the market. This can be on top of Infosys if there are substitute products for the organisation's products available.
Cost of switching to substitutes:
The risk of substitutes will be high if the price tag on switching to substitutes is less. This will make the buyers think of opting to substitutes which is not good.
Structure of competition: the competitive rivalry will be high if there will be more competitors who are equally strong.
Exit barriers: if obstructions for leaving an industry are high then competitive rivalry will be less.