Entrepreneurship Strategies for EHG Corporation Ltd - Case Study Example

Entrepreneurship Strategic Plan for EHG Corporation Ltd, listed in ASX Name: Tutor: Course: Date: Entrepreneurship Strategic Plan for EHG Corporation Ltd Introduction EHG Corporation Ltd is a development of technology dynamics that has seen it influence the social networking phenomena, management software and computer programming. The company is based in Sydney, New South Wales. EHG Corporation Limited was initially called Ellect Holdings Limited. The entity engages in the distribution and development of payment products electronically. The corporation runs with one hundred percent ownership by Intellect Australia Pty Ltd, an Australian subsidiary. It has 83 employees. Success in business entrepreneurship is showcased by transformative changes that borrow a new business idea to the stratosphere. Entrepreneurship Subcommittee Members Steve Nicols (Chair) Adam Blumenthal Greg Cornelsen Ian Morgan Warren McClelland Allan C. Sullivan Jane Howard Hellen Moore Vision: Participate in creating a strong, flexible, IT infrastructure in Sydney, while sustaining an infrastructure that will support business entrepreneurs and new start-up businesses in information technology. Mission: Provide flexible and unique value-added software solutions that meet client needs and customized to their expectations. Strategy: The Australian economy especially in Sydney is set to grow in the direction of small businesses, especially in the software development discourse. The company is essential in supporting the creation, attraction and enhancement of software business consuming its products and services. The purpose of setting up an entrepreneurship initiative is to enable EHG Corporation; 1. Provide hardware and software solutions for all users in the city that will aid them in honing the skills crucial for fundamental entrepreneurial activities. The key issues will be identification and recognition of opportunities that leads the firm into an entrepreneurial entity. The plan will be developed and implemented to generate products and/or services. 2. The corporation will be able to manage risks through effective financial management and skilled market analysis. 3. The company will share wealth with its employees, thus extending economic advantages to the company Work with the present companies and support institutions like the Small Business Development Centers, Community Information Centers, e-government, e-learning and software merchants to develop relationships between the information technology and real-life application. This serves the company in various ways: 1. Employees will get hands-on experience working with a company and analysis of markets. The firm will be able to closely examine its financial information. In a way, it will be able to solve problems it faces which becomes a way for them to gain experience on entrepreneurial challenges and its process. The employees will be prepared to experience growth in activities and functions of the company. 2. Local firms dealing with IT products already has the support of Australian Government thus their capabilities, revenues, and new job creation is a reality 3. The company will offer a powerful interaction among employees, business operations, and suppliers in creating a climate that is favorable for new business attraction and creation especially in Web-design, Web-based advertising, programming, Hardware development and distribution Tactics: The company will support sales activities by knowing the customers’ needs better. It will be able to qualify prospective suppliers and partners. Ensure up to date on its competitors’ business strategy, structure, and prospects. Provide the most up to date available company information. The tactics will include; 1. Becoming a link between technology design and development and the market consuming software products 2. Resource integration of designers, suppliers, customers and management to satisfy the needs that attribute to the financial growth of the company. 3. One-on-one acquisition of technical assistance in management business and development so as to grow as a formidable entrepreneur. 4. Provide expertise and training to its employees on the need for EHG to advance as an entrepreneur. 5. Maximize Australian technology equity. 6. Raise competencies of the designers, marketers and system administrators so that it becomes productively engaged with key influencers and the venture capitalists in the economic development in the city of Perth. 7. The principal competency in inculcating business entrepreneurship will improve the company’s competitive advantage and core competencies in providing essential optimized IT products. 8. The company shares knowledge and experiences among software development experts in Australia so that the available resources are utilized in an economic manner, through dynamical scheduling of activities. It will consider the required resources by those activities with regard to the projects time and resource availability which minimizes the idling time. Sharing and unifying most of the software creation environments When applicable, software development procedure, processes, and methodologies are unified. 9. Common software development management areas like quality and configuration management are integrated. Strengths: 1. EHG Corporation has established a strong brand name for itself in the Australian sub continent. This makes it to be a well ranked web design, business solutions, considered to be the number one search engine on the web design, programming, business solutions, information architects and analysis. 2. The speed, suitability and simplicity of its hardware and software solutions make it user friendly and quite reliable. 3. The firm is considered to be among the top 5 technology companies in Australia 4. It enjoys good reputation by its popularity which goes around by word of mouth publicity. It has patented its products which have quality impact to its name. 5. The company provides diverse services and products such as Mobile products, Desktop products, Hardware products, and Web products. 6. Products and services operational costs are very low 7. The firm has hired the best designers and developers with PhDs to specifically work on programming, web creation, and more relevant and efficient operating systems. 8. It provides for durable and flexible hardware with interface of more than 10 languages which is indeed helpful for the neighboring countries like Indonesia, Malaysia and New Zealand. 9. It employs state-of-the-art technology in its hardware features to provide a highly updated outcome to its end users. 10. It reiterates in marking the in the differential scaling of results by separating any sponsored links and the regular links given. 11. The company enjoys one of the strongest development teams in Australia enabling it to provide passion and insight, consistent expertise, and development of a quality-driven code. 12. The company has heavily invested in solution design, information architecture, and user experience which easily manage implementation on behalf of, or with its clients. 13. The company provides premiums without a premium price tag. Employees enjoy what they are doing and it delivers on its promises. 14. It lays greater emphasis on comprehending customers' needs. Indeed, the project managers are graduates of Computer Science. 15. The team is fond of asking great questions, habitually challenging the rationale of business to assist customers in seeing prospects outside the brief. Weakness  1. It is difficult to attain effective coordination and communication among several interfaced projects / teams. The company in most cases experiences hardships in moving an entire team across project. These teams fail to develop a history of team work as over multiple software design and administration projects. 2. There is a challenge in mapping resources relationships and deciding to draw the fences in the right places. This has created coordination challenges that worsen many good opportunities. It makes it hard to find the right places to divide to ensure a consistent increase in happiness, focus, and productivity.  2. Some specialists’ employees become de-motivated by the culture and organizational structure making the bored and distracted as they wish to steer company products development into spheres they have specialty in  3. The company is still average on effective processes and management 4. Employees at times lose focus which is key, specialist when most of them are generalists. Some team members may not be aligned behind a unitary goal or milestone at the moment. 5. The management in some cases attack multiple battlefronts at one go which regularly backfires badly. This company could risk indigestion from excessive opportunity as opposed to starvation from meager operations.  6. The company has not adequately provided certain level of security regulations and classification since some knowledge may not be shared among staff hence requires greater security procedures. 7. The company has heavily invested in search based advertising which is not productive. 8. It faces a risk of knocking dead ends for the users, as they hop through citations without complete texts. 9. It fails to focus on servicing its distribution channels. 10. Hackers and spammers frequently take advantage of EHG Corporation Ltd ranking technology to generate sites that consists of many links by which eventually gets them higher ranks. 11. It charges a bit high on advertising charge based on cost-per-click. This ranking policy makes it hard for the clients to envisage the positioning of their costing as per se and ads. 12. Regarding sales generation, its contextual advertising is regarded as less effective, and the programming algorithms accompanying the search are erroneous. 13. At times, results in errors arise from localized searches 14. Staffing in this area is low at 83 in the entire sub continent 15. It stands on a weak platform based on the social-networking space 16. Integration of its services and products is quite heterogeneous 17. It cannot stand the strategy for contraction 19. There is a rising cost for the data-center growing higher and higher each month ­­ Opportunities­ 1. There are great opportunities for reaching new contents, new groups and segments 2. Integration using open-URL provides an easy expert search 3. Content on the web usage is of a higher value. 4. It can revive the trend like Dell and Apple and lead in mass market provision for hardware and software solutions. 5. On the localized searches, it can add localized vendors advertisements paid 6. The government of Australia has zero rated on taxes of computer appliances and software exported from the country 7. Regarding its users, the company can merge with an existing mass market hardware solutions provider to cover expansive ground. 8. More market going beyond the conventional internet can be captured by providing more services to the hand-held devices. 9. The overall advertisement spending online can be increased 10. New acquisitions can enhance the company’s financial status 11. Changing demographics provides customers to its products 12. Increased desire for information technology among the youth Threats 1. Regarding the indexing policy it can easily lose control 2. Many services will be less effective if the spammers and hackers invade 3. Brain drain of skilled workforce into the competition 4. Institutional subscription may not end up among users 5. Informational skills disappear 6. Competition from firms like Hewlett-Packard, Elysium Ltd e.tc. 7. Legal litigations are costly 8. Public perception is eroded by federal lawsuit regarding the collection of pirated software by consumers 9. There is a considerable lose of large amount of revenue if it come to stiff and unhealthy competition among system developers Assessment Matrix: Number of new clients and employees Percentage of increase of activities on information sharing Economic index in Australia Change in consumer behavior Count of new designs and innovativeness Priorities/Goals: 1. Develop capabilities between suppliers, employees, and other stakeholders in building expertise in the area of hardware and software solutions 2. Integrate capital and human resources between programming and design disciplines within computer science to leverage on prospective customers and diversification. 3. Offer sound leadership and management in core competencies (Hardware and software) while leveraging partnerships with local and state firms 4. Design specialists and administrators to have similar accountability structure to extend the design areas with a mission of increasing the creativity space and innovativeness 5. Provide training programs to end users and technical assistance 6. Revenue from cost recovery and sales of hardware and software solutions to be used in provision of continuous programming and administration 7. The company has no time constraint on the business, hence the competitors will be kept on check if they emerge with new ideas and better interface regarding the design instrument that will render EHG Corporation lose its market share in the State. 8. The company to review and evaluate the cost-per-click policy which is discourages clients and scares them away. 9. The company prioritizes on making its interface simple and user-friendly as well as the compatibility of its software and hardware solutions. 10. The company will be sensitive to avoid getting stuck on issues regarding acquisition of information of its users. 11. Looking into the possibilities of merging with another already establish mass market hardware and software developer without losing its hard-earned brand name. 12. Network of members, referral and repeat sales will highly influence its service 13. Content ownership will be reviewed to influence privacy issues Respond to customers’ Needs This is a high priority the company as it positions itself for active involvement in revenue generation and reaching to more customers. The company will have to source, hire and train a formidable workforce through a consultation and no-cost training offered by the Australian department of entrepreneurship. Companies offering themselves for growth can rise up in levels of leadership and management. They can opt to provide customized services to schools and universities which have training module on computer programming. The customer segments are a result of a wider market study to know what packages can be provided for these functions. Company executives can gain from the programs where employees anticipate entrepreneurial enterprises. As well the needs of computer graduates who desire to have hands on experience can be enhanced by creating module training on programming and software technology. There is a value-added approach to entrepreneurship training among the strategic planners in the company to review existing hardware and software solutions. The company will have to engage financial advisers on how to undertake capital budgeting. Financial consultants offer on how investing in international markets can help balance the sheets and provide a happy return on investment. How the EHG Corporation can be enhanced by expansion The economic base of New South Wales and the extended service area of West Perth pivots heavily on educational entities and health care but with limited number of information technology enterprises. This has caused fluctuations in the available number of jobs in this basic component of the Australian economy. Information technology is touted as an area likely to bring radical changes in the development and prosperity of Western Australia. Besides, a case in point is the expected opening of a university in West Perth which will create demand for IT services. The city of West Perth and the neighboring towns and institutions are catered for by the common conglomeration of small businesses and services, spanning the chain of stores, automotive services, independent restaurants, supermarkets, universities, chain retailers, auto parts dealers and computer repairers. The government of Australia provides incentives for creativity and innovation in the IT sector which becomes easier to enter into a new market with minor challenges. The company will need to consider the mode of entry, financial capability, laws and legislations of the host country and also the market demand for IT products. Recommendations: Human resourcing 1. Increasing the bar for existing staff through training to offer new skill sets with greater business acumen and real world experience 2. Motivate and train staff through relevant IT discourse applicable in the current dispensation. EHG Corporation must have an action plan that incorporate training 3. Management and personnel training on entrepreneurship and responsibility Creativity and innovation: 1. Increasing the element of staff team work that encourages creativity. The company should be possessive and own any patents and copyrights as this will increase their ownership 2. Having priorities and assigning responsibilities to them Funding 1. Entrepreneurship grant from the government will assist in programming and incubation of diversification plans 2. Investing in capital budgeting processes 3. Sourcing from equities and bills that are redeemable within a shorter period 4. Finding out what are the best practices in advanced areas in entrepreneurship so as to customize programs with higher levels of success Partners: JP Morgan Chase Trust Company of Australia Limited ERG eBet Limited Siemens Building Technology References Abell, D. (2008). Strategic windows. Journal of Marketing, Vol 42, pg 21–28. Camp, R. (2009). Benchmarking: The search for industry best practices that lead to superior performance, American Society for Quality Control, Quality Press, Milwaukee, Wisconsin. Chandler, A. (2002). Strategy and Structure: Chapters in the history of industrial enterprise, Doubleday, New York Deming, W.E. (2002). Quality, Productivity, and Competitive Position, MIT Center for Advanced Engineering, Cambridge Mass. Gronroos, C. (2004). 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