Case 1
SystemX Inc. Withdraws Rs. 1 Billion SoftGuide Acquisition Offer
The following is an excerpt from a news article in the Daily Update, March 07, 2010 “SystemX Inc., called off its acquisition of SoftGuide Knowledge Consultants, Friday, saying that 1 Billion was too high a price.” (SoftGuide has a considerable market share in Training and Development services and would therefore help SystemX to diversify and expand its range of services to customers.) “Although SystemX officials would not comment further, several observers said that problems discovered at SoftGuide probably lay behind the decision…. The article said that SystemX feared that SoftGuide’s data-processing system was inadequate to handle the new products planned for the SoftGuide sales staff. SystemX officials were also concerned about the 30 percent annual turnover among sales personnel… Tabrez A., SoftGuide CEO, responded that the SoftGuide’s data-processing was quite competent and has absorbed at least one new product a month for two years.” Questions: a. Why should SystemX be so concerned about the capabilities of SoftGuide’s data-processing? b. What competitive advantages to a Training and Consultancy services company may be provided by an information system?
Case 2
Professor Challenges Basic Assumption about Planning and Control
Professor A. Van Cauwenbergh of Antwerp University, in a paper presented at the Tenth Anniversary Conference of the European Institute for Advanced Studies in Management, presented four revisions to traditional Management Theory. In summary, the revisions are: (1) The initiative for the renewal and adjustment of the activities of a firm should come from the different levels in the management hierarchy. “Strategy is not a privilege of top management”. (2) Firms, especially big firms, are incoherent systems (goals of the different component systems are not simply subdivisions of an overall goal; there are individual, conflicting goals as well). Some
References: 1. Management Information Systems – Managing the Digital Firm, 9th Edition, K C Laudon, J P Laudon, PHI / Pearson 2. Management Information Systems – Conceptual Foundations, Structure and Development, 2nd Edition, G B Davis, M H Olson, Tata McGraw Hill 3. Secrets and Lies – Digital Security in a Networked World, B Schneir, John Wiley and Sons 4. Management Information Systems, 1st Edition, L M Prasad, Usha Prasad, Sultan Chand & Sons 5. PCQuest, April 2002 Issue 6. PCQuest, January 2003 Issue Downloaded from http://himadri.cmsdu.org 8