Preview

Case Study :Xero and Mcdonald's

Powerful Essays
Open Document
Open Document
3386 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study :Xero and Mcdonald's
Introduction

Xero and McDonald’s are two objects that will be analyzed in this essay. In terms of Xero, an online accounting software company, the essay will focus on Xero’s business strategy by using Porter’s five forces model and Xero’s sources of competitive advantages by using Porter’s value chain model. Also, the roles and competencies of CIO, CTO and CPO will be discussed in the case of Macdonald’s Australia. Finally, based on Macdonald’s, it will analyze the importance of information system and information technology.

1. Competitive Forces Model

With rapid development and increasing acceptance of the internet, Drury established Xero, an accounting software company that listed on the NZ stock exchange within a year. To analyze Xero’s business strategy and the impact that external factors have on internet industry attractiveness, Michael Porter’s five forces model can be used as follows:

1.1Threat of new entrants

Indeed, there are a few barriers that impede entry to the industry. Two significant barriers are switching costs (e.g. Offering multi functional services, such as training services for both customers and partners and facilities for banking contacts , than usual accounting services) and capital requirements (e.g. extensive knowledge of small businesses and advanced information technology).

In reality, however, threat of new entrants is still high in view of the facts following:

1) establishment of relationships between firms and clients is temporary and the high knowledge requirement of the defense industry can be meet basically by learning and imitation, 2) licensing and permit requirements of internet industry are not as restricted as those of the power generation industry and the airline industry, which allows more firms to enter, 3) Locating market niches not being served allows the new entrant to avoid entry barriers. It is an opportunity for small entrepreneurial firms to identify and serve neglected market segments due to



Bibliography: Australian school of business school of accounting, “Strategic Management Accounting - Course Material and Readings”, 2011 Berray, T and Raj, S Lane, Michael S. and Koronios, Andy (2007) Critical competencies required for the role of the modern CIO http://eprints.usq.edu.au/3410/1/Lane_Koronios.pdf (Accessed April 27 2013) Michael E Nina, M. (2013). Growing a software start-up in the UK. http://blog.xero.com/ (Accessed May 1 2013) Pagie, B Roger D, Smith. and Titan, C. (2003). The Chief Technology Officer: Strategic Responsibilities and Relationships, Research Technology Management http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.157.9508&rep=rep1&type=pdf (Accessed April 28 2013)

You May Also Find These Documents Helpful

  • Good Essays

    References: Horngren, C., Sundem, G., Stratton, W., Burgstahler, D., and Schatzberg, J. (2008). Introduction to Management Accounting; Chapters 1-17, Fourteenth Edition. Upper Saddle River, NJ: Pearson/Prentice Hall…

    • 553 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    This course provides a hands-on experience in entrepreneurship and will teach you specific methods to assess and understand the industry, customers, and competitors for a new venture. And you will then learn how to translate those insights into a venture idea, a business model, and set of distinctive new products and services. With this venture strategy in hand, you will then learn how to best raise venture financing, how to write a powerful business plan, and create a compelling pitch for investors. This course will also show how these methods can be applied for corporate ventures as well as startups.…

    • 1726 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    • Two forces in particular: risk of entry by potential competitors & rivalry among existing firms…

    • 1897 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Threat of new entry is said to be low; due to the capital requirements needed to establish and manufacture, and other financial obligations associated, presenting high barriers for a new market entrance.…

    • 257 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    ECOM320 Assign2

    • 2801 Words
    • 8 Pages

    The Internet and e-commerce has affected the strategic planning process by how Porter’s 5 forces show us that the competitive forces model identifies five major forces of competition which determines an industry’s structural attractiveness. Porter has identified several ways that the Internet impacts each of the five forces of competitiveness: bargaining power of consumers and suppliers, threats from substitutes and new entrants, and rivalry among existing…

    • 2801 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    DSW Balanced Scorecard

    • 1478 Words
    • 6 Pages

    With the shift of business moving from the industrial age to the information/technology age, the importance of a company’s…

    • 1478 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Lululemon Case Study

    • 948 Words
    • 4 Pages

    Threat of New Entrants: is low because of high hurdles of entry. The industry is categorized by large capital requests, access to distribution channels, large economies of scale and product distinction. New entrants will require spending a lot of time and money to come in to the market, increase cost advantage, and establish loyal customer base.…

    • 948 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    There was many new inventions and technology during the civil war like railroads, balloons, and the civil war photography and a couple more .A lot of the new technology helped like the railroads, they would us them to move troops and supplies from one place to another . Another important technology was the telegraph, the telegraph was a system for transmitting messages from a long distance along a wire using braking and electrical connections. They could use the telegraph to send more than a million messages to and from the battlefield. They also had stuff like submarines and balloons, which were both used in war. They also invented a gun called the repeater, they were so fast it could shot seven bullets in 30 seconds. And they didn’t just…

    • 167 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Throughout history, people have been oppressed and ruled by unfair governments. Rebellions, sparked by Enlightenment thinkers and philosophers, have caused changes in governments around the world. Several of which include the American Revolution, French Revolution, and the Latin American Revolution. However, only the American Revolution truly established a working form of government that lasted centuries.…

    • 454 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    | Threats * Competition * Economic slowdown and crises * External changes * Lower cost competitors * Price wars and revolution * Oil Price growth * Terrorism…

    • 875 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    CHIPOTLE

    • 1060 Words
    • 5 Pages

    Threat of new entrants are favourable because the general industry requires high capital and experience. New…

    • 1060 Words
    • 5 Pages
    Good Essays
  • Best Essays

    A Balance Scorecard

    • 3346 Words
    • 14 Pages

    In current upsurge in economic condition globally brought on by competition and uncertainty, all organisations are impacted with need for changes to remain viable in…

    • 3346 Words
    • 14 Pages
    Best Essays
  • Better Essays

    Performance Management

    • 2142 Words
    • 9 Pages

    Performance measures are particular values or characteristics used to measure/examine a result or performance criteria. It may be expressed in a qualitative or quantitative way which helps institution to understand, manage and improve what they do. Performance measures inform the institution:…

    • 2142 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    or passing on profits to customers in the form of lower prices. These five forces model show how it could endanger a company position in an industry. The Internet has changed the Porter’s competitive forces model, and this research paper will show now the impact of Information technology on the model of competition.…

    • 2514 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Entry Barriers

    • 1539 Words
    • 7 Pages

    Barriers to market entry include a number of different factors that restrict the ability of new competitors to enter and begin operating in a given industry. For example, an industry may require new entrants to make large investments in capital equipment, or existing firms may have earned strong customer loyalties that may be difficult for new entrants to overcome. The ease of entry into an industry in just one aspect of an industry analysis; the others include the power held by suppliers and buyers, the existing competitors and the nature of competition, and the degree to which similar products or services can act as substitutes for those provided by the industry. It is important for small business owners to understand all of these critical industry factors in order to compete effectively and make good strategic decisions.…

    • 1539 Words
    • 7 Pages
    Good Essays