Merck Swot Analysis Stakeholder Evaluation free essay sample

Merck and Company, Inc. : SWOT Analysis and Stakeholder Evaluation Merck and Company, Inc. , a. k. a. Merck, is a leading worldwide pharmaceutical company that engages in manufacturing and marketing medicines, animal products, vaccines, and consumer health products. As most companies, Merck desires to continue their success as one of the top health care innovators in the world. Conducting a SWOT analysis can give them insight into internal strengths and weaknesses as well as external opportunities and threats. By way of the analysis, the company can obtain a clearer understanding of where it needs to improve and grow, and anticipate future threats to react effectively. Further, this valuable information is used by managers within the organization to satisfy needs of stakeholders as well as provide investors with sound information to help make informed decisions regarding their willingness to invest in the company. Ranking as the second largest healthcare company in the world, after the merger with Schering-Plough, Merck has set the standard for what it means to be an industry leader. We will write a custom essay sample on Merck Swot Analysis Stakeholder Evaluation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Deriving from their company website, their vision is to â€Å"make a difference in the lives of people globally through†¦innovative medicines, vaccines, and consumer health and animal products† (â€Å"The New Merck,† 2010). Merck’s mission is to create distinctive products and services that will save and improve lives and satisfy customer needs. They seek to gain recognition as possessing an exceptional working environment, and offer investors a superior rate of return (â€Å"The New Merck,† 2010). Finally, they stand for â€Å"excellence in science and healthcare innovation, with an emphasis on addressing unmet medical needs; focus[ing] on patients and anticipating customers’ needs; and commitment to expand access to [their] medicines and vaccines, and to improve global health† (â€Å"The New Merck,† 2010). A SWOT analysis is a useful tool to stay committed to the vision and mission prescribed above. This analysis evaluates an organizations strengths, weaknesses, opportunities, and threats as it pertains to a specific objective. Strengths and weaknesses are typically internal factors which are more easily fixed, whereas opportunities and threats are external factors that cannot always be anticipated (Robbins Judge, 2011, p. 183). Conducting a SWOT analysis on Merck will shed light on its position within the pharmaceutical manufacturing industry. After the merger with Schering-Plough in November 2009, Merck became the second largest drug manufacturing company in the world generating $45,987. 00 million in revenue for December 31, 2010 fiscal year, according to Business Company database. The merger also expands Merck’s product portfolio, including areas of research and development in which Merck is lacking (â€Å"Merck and Schering-Plough mega-merger will create a company greater than the sum of its parts,† 2009). Gains in sales growth will occur with its new product launches such as Cozaar and Hyzaar for cardiovascular treatment, Dulera for respiratory therapy, and Simponi as an immunology drug. In addition, Merck’s already active product line such as Januvia for diabetes, Gardasil for the human papillomavirus, and Isentress for HIV will also add to Merck’s long-term sales growth (Hoover’s Inc. 2011). According to Hoover’s Inc. in-depth analysis of Merck Co. Inc. , â€Å"The acquisition of Schering enables Merck to potentially achieve $3. 5 billion in annual cost-saving synergies by 2011† (Hoover’s Inc. , 2011). Merck has also decided to expand its market outreach to India, and hope to encompass other countrie s such as China, South Korea, Russia, Brazil, Mexico, and Turkey. By expanding to global emerging markets, Merck can expect to obtain a growth in pharmaceutical sales over the next few years (â€Å"Closing the Gap,† 2010). With an immense competitive environment success is not without its drawbacks. Merck was forced to pull their blockbuster arthritis medication, Vioxx, off the market because of its high risk to stroke or heart attack after continued use. Merck spent millions of dollars on the marketing campaign for Vioxx, which paid off in its $2. 5 billion worldwide sale, all of which is at a loss to the company now (Gorman Kher, 2004). In 2012, Merck stands to lose patents on popular asthma medication, Singulair, which accounts for 10% of the combined sales of Merck and Schering-Plough (Hoover’s Inc. 2011). Finally, competition over generic products will hurt sales for Merck’s brand named products (Hoover’s Inc. , 2011). Competition with pharmaceutical company Pfizer will create looming threats toward Merck. Pfizer recently merged with Wyeth making them largest pharmaceutical company. This merger allowed Pfizer to gain a new product line and increase sales (Marino, 2009). Merck will need to be more vigilant in creating new products; however, they also must worry about the FDA approval on new products. Finally, government regulation on product pricing can affect Merck ecause it forces them reduce prices (Hoover’s Inc. , 2011). To better meet the needs of stakeholders, the company must understand its pros and cons, and conducting the SWOT analysis sheds light on those pros and cons. Stakeholders are entitled to know what is going on within the business because choices that the business makes effects stakeholders and vice versa. For example, suppliers of an organization share a common interest in the growth and prosperity of the organization their supplying to because they stand to gain or lose business from them. Therefore, it is the responsibility of the organization to meet the needs of the suppliers by making sound business decisions to increase the growth of the organization. Merck identifies five stakeholders for which it needs to satisfy, who are customers, employees, shareholders, community and society, and suppliers. According to â€Å"Code of Conduct,† 2011, customers include patients, consumers, health care professionals, health care organizations, government agencies, wholesalers, and distributors. The wants and needs of customers are generally quality products and services, and to be treated with the integrity by having the customers best interest at heart. Information regarding products and services should be clear and informative, and by no means ambiguous. Merck maintains that â€Å"Information furnished to our customers about our products and services, including the availability and delivery, must be useful, accurate, supported by scientific evidence where relevant and presented honestly, fairly and by proper means† (â€Å"Code of Conduct,† 2011, p. 7). Merck believes in fair competition and tries to keep prices of products and services at a competitive rate. They do not believe distorting the image of their competitor products (â€Å"Code of Conduct,† 2011, p. 8). Although Merck follows a specific code of conduct, it is impossible to please every customer. The drug Vioxx had to be pulled off the market because of unforeseen side effects. Merck should have disclosed every side effect clearly to its customers as prescribed by their code of conduct; however, it did not happen in reality. Anyone who took the drug for more than 18 months had doubled the risk of stroke or heart attack. In an effort to correct their mistake, Merck pulled the drug off the market (Gormon Kher, 2004). An employees needs are fair compensation, a safe work environment, and fair treatment. Merck believes that compensation is based on the employees’ merit, experience, and other work-related criteria. They seek to gain a diverse workforce recruiting those from a variety of different backgrounds. By complying with safety and health regulations, and keeping their businesses up to code, Merck provides a safe working environment for employees. When accidents occur, they follow through with appropriate channels alleviate the situation. Merck follows an open communication policy among employees to encourage them to speak freely and voice opinions. They respect the rights of colleagues and realize employees will disagree. They wish to promote an environment open communication; however, each employee must be willing to â€Å"agree to disagree† (â€Å"Code of Conduct,† 2011, p. 16). Shareholders invest money into organizations in hopes of more valuable returns. Shareholders also have the power to make decisions within the company. Balancing the needs of shareholders and the company can be difficult. Merck makes decisions in the best interest of the company, and avoids conflicts of interest; however, shareholders are not always satisfied. For example, Merck’s decision to pull Vioxx off the market had a significant impact on shareholder investments, and also led to lawsuits against Merck further forcing them to make payouts to investors (Holland, 2009). Merck is focused on helping organizations that benefit society. Through the Merck Company Foundation, Merck â€Å"donates products and other in-kind services to qualified organizations and programs that address the needs of society†¦Ã¢â‚¬  (â€Å"Code of Conduct,† 2011, p. 27). They also believe it is their responsibility to protect the environment in any country they are in. In an effort to handle their products in the most environmentally responsible way, Merck provides their consumers with information to educate them on proper disposal methods and rules and regulations that must be abided (â€Å"Code of Conduct,† 2011, p. 28). In addition, they advocate for the welfare of animals, and plan studies that limit the amount of research conducted on animals wherever possible (â€Å"Code of Conduct,† 2011, p. 29). As a mutual fund manager, the decision on whether to invest in Merck Co. , Inc. is a difficult decision. Weighing the pros and cons from the SWOT analysis can help make decisions easier. Merck has benefited people throughout the world with products that have saved lives. Ongoing research and development will create newer medicines and vaccines that will continue to help people in years to come. They have experienced drawbacks through patent losses, and have come across litigation issues that negatively affected Merck; however, it did not ruin their reputation as one of leading pharmaceutical marketing and manufacturing companies in the world. Their values are incorporated in every aspect of business such meeting the needs of their customers, employees, shareholders, and community. Merging with the Pfizer Plough strengthened their hold in the pharmaceutical industry by adding a new product portfolio that will add to areas of research and development in which Merck is lacking. In addition, Pfizer Plough’s products add to Merck’s sales and increases profits each year. The potential for Merck to grow within the pharmaceutical industry is high; therefore, investing would be a good business decision. Why not be a part of a company who has a corporate responsibility of â€Å"Helping the World Be Well? † References Closing the gap. (2010). Country Monitor, 18(44), 5. Retrieved from EBSCOhost. Gormon, C. , Kher. U. (2004). A Painful Mistake. Time Inernational (Canada Edition), 164(15), 30. Retrieved from EBSCOhost. Holland, J. (2009, December 3). Court hears arguments in Mercks Vioxx appeal. Buffalo Law Journal. p. 11. Retrieved from EBSCOhost.. Hoover’s Inc. (2011, August 17). Merck Co. , Inc. Hoover’s Company Records – In – Depth Records. Retrieved August 19, 2011 from Hoover’s Academic database. Marino, J. (2009). Big Pharma’s Mid-Market Influence. Mergers Acquisitions Report, 22(18), 12. Retrieved from EBSCOhost. Merck. (2011). The new merck. Retrieved from http://www. merck. com/about/home. html Merck. 2011). Code of conduct: Our values and standards. Retrieved from http://www. merck. com/about/code_of_conduct. pdf Merck and Company, Inc. Company Profile. d. n. DC305661. Retrieved August 19, 2011 from Business Company database. Merck and Schering-Plough mega-merger will create a company greater than the sum of its parts. (2009). PharmaWatch: Monthly Review, 8(4), 25-27. Retreived from EBSCOhost. Robbins, S. P. , Judge, T. A. (2011). Organizational Behavior (14th ed. ). Upper Saddle River, NJ: Prentice Hall, 176-199.

Personal Selling And Sales Objectives Example

Personal Selling And Sales Objectives Example Personal Selling And Sales Objectives – Coursework Example Personal Selling and Sales Objectives Advertisement and selling of good have always the interest of a marketer to achieve the focussed target at the end of the month. There are several ways of selling a product or a service to customer. Recently, online retailers have gained a lot of attention in selling goods. Today one can buy anything over the web. As a seller, I personally think that online selling has many advantages. An online retailer does not need a physical shop to display his or her products. So, he or she saves on the physical stores. Secondly, while selling a product to a client in physical store, they might not be able to give the complete information for the product that might influence the customer to purchase the product. Whereas, in the case of an online retailer, he or she can give all the information of the product online which will be necessary for the customer. However, it is up to the customer whether he or she wants to go through each and every information abou t the product.While selling online, the sales objectives are easy to achieve. For example, recently a new trend has been seen when it comes to a launch of a mobile. The seller of the mobile gives the launch date and announces of a limited number of availability of the mobile. This creates a rush in the market and the customers become excited to buy the mobile on a priority basis. In this way, the company is able to sell of its mobile in the fastest way possible.Work CitedCant, M. C, and Neels Van Heerden.  Personal Selling. 1st ed. Lansdowne, South Africa: Juta, 2004. Print.

International Business Strategy Literature review

International Business Strategy - Literature review Example Yet many managers view it to be more theoretical than practical. Most of the time, when this theory in use it is often misused to provide a single answers which is overly precise (Lindstadt, 2010). The work on the European passenger rail deregulation is evidence to prove that game theory provides appropriate guidance to managers as they handle unprecedented and difficult situations. The key to achieve the best results is to use this theory to generate a range of results based on decisions made by reasonable players. Then use them analyze the merits and demerits of each decision. It is clear from the reading, that the authors’ model changes game theory from a tool that gives a single answer to a discipline that gives knowledgeable support to managerial decisions (Lindstadt, 2010). We observe that factors in the economic environment propel game theory to a prominent place in strategy. The global economic crisis and the uncertain recovery, have called for shifts in industrial capacity, market price and demand. These uncertainties paralyze corporate decision-making and worse they compel managers to make less informed decisions. Game theory contributes to a clear decision

A Micro and Macro Analysis of the Mobile Industry Environment Using Essay

A Micro and Macro Analysis of the Mobile Industry Environment Using the Pestel Analysis. A Case Study of Blackberry - Essay Example This research will begin with the statement that Blackberry is one of the multinational electronic product suppliers in the world that has managed to dominate the mobile industry market for a long time now in the history of the mobile industry. The organization is a major supplier of wireless devices including mobile phones and pagers and currently working on the launch of more products. Commonly known as Research in Motion, the company started in 1984 and took the world by storm in 1999 with the introduction of blackberry solutions. It continued to produce advanced models of blackberry solutions while partnering with technological and telecommunication companies such as MTN, Yahoo, AOL among others. Blackberry has proved a superior communication device especially during the 9/11 crisis, in which it was able to send messages where other devices had failed. In addition, during the anthrax scare, blackberry also emerged a superior means of wireless communication, and the two incidences earned it a reputation for security and reliability. BlackBerry recorded a revenue of $18.435 billion and profit of $ 1.164 billion in 2012. The company’s main competitors are Google Inc., Nokia OYJ, Apple Inc., and Samsung Electronics Co., Ltd. However, the mobile industry environment has considerably changed, and the intensity of competition has greatly put the supplier at a lower bargaining end. As Husso points out in his research, scholars have taken a keynote of the change in the dynamic mobile environment that has threatened to push most organizations out of the market. Despite the fact that the company is performing well financially, it is not immune to the pressures of external forces. Currently, most researchers have established that new market entrants, change of technology, and development of new government regulations have all heightened the competition. Consequently, the organization has engaged in research-driven strategic management to react to the changes in the market force and to remain profitable in this industry. The mobile industry is one of the market environments that have garnered a wide range of research from scholars across the world. Ryan expressed the competition that exists within the mobile industry and recommended that all mobile industries switch to modest business strategies to survive in the competitive market. This scholar pointed out that competition has reduced the cost mobile products so much that business priced-market strategies have become obsolete in this market. The research of Ryan has been followed by numerous researchers seeking to evaluate various aspects of the mobile industry environment. Researchers such as Kim and Tallberg have paid particular attention to the mobile handset market and the competition that has emerged in the recent past.

Green Tree City Case Study (Question 3 only) Assignment

Green Tree City Case Study (Question 3 only) - Assignment Example This entails ensuring good packing and entry for clients and all other users of the building. The accessibility of the building also ensures easy and quick evacuation and rescue operations in time of attacks as well as other disaster like fire and floods (National Research Council, 2001). This makes the accessibility of a building a main concern for owners as it forms a factor in elevating the number of people rescued during rescue operations and increases the building’s safety. The other concern for a building owner is ensuring the building is leased to known parties as a means of reducing chances of leasing arts of the building to terrorists who can cause bombings like in the case study. The person renting, therefore, has to provide documentation and a stated use for the building or art of the building leased. The main reason for this is that the owner has the authority in deciding the lease agreement, hence has the responsibility. The other concern of the owner entails limiting the points of entry to a building as a way to limit unauthorized access to the building. The measures for this include use of not less than eight feet fence along the perimeter, slowing of incoming vehicles through design of the road, use of high security lights protected by wire, to avoid tampering and improve lighting, and the use of anti-ram devices (U.S. Department Security & Federal Emergency Agency, 2013). The importance of these measures includes increased standoff protection against driving in with unwanted materials including bombs and explosives. Limiting access to ventilation system to only authorized personnel also reduces instances of using ventilation systems as channels to spread explosives by terrorists. The erection of electronic security detection devices in all doors and entrances to the building forms the other concern of the owner. Use of glass break censors and closed-circuit cameras surveillance is another securi ty

401(k) Plans :: Finance Financial Money Retirement Essays

401(k) Plans   Ã‚  Ã‚  Ã‚  Ã‚  There are many economic issues facing the nation today. While some are extremely important in determining how the economy is balanced, others are not. Although this is true, that does not necessarily make these lesser important issues obsolete. Take, for example, the recent issue of corporate leaders matching contributors to the 401(k) plan with company stock, instead of with cash. Though this is a relatively National issue, it still greatly affects a large number of people in foreign areas as well as you and me. Because of this effect on such a large number of people, it is necessary that this issue be discussed, as will happen within the next few paragraphs.   Ã‚  Ã‚  Ã‚  Ã‚  In the way that a 401(k) stock matching plan is set up; timing is everything. In a basic 401(k) plan employees put forth a set amount of dollars (usually pre-determined personally by the employee) before taxes are withheld This portion of the employee's paycheck is put toward his or her retirement. What some companies prefer to do in order to make the 401(k) plan more attractive for employees, is to match each employee's investment in the plan by a certain percent. Here is where the problem comes in. Though some companies match contributors either with cash or with a direct credit to the plan, other companies match with corporate stock. According to Richard Sasanow, a former assistant of public communications at Ernst and Young, "many experts consider this to be one of the riskiest investments for a 401 (k)-but may be worth it if you think your company has a great future." (Sasanow, 45) A recent survey shows that 18 percent of all companies made their matching contributions this way. Now for small, fast-growing businesses this would not seem as much of a risk since these companies' stock are generally on the increase. But for some large corporations, this is a great risk for employees since a lot of their retirement money is now based on how well the company does.   Ã‚  Ã‚  Ã‚  Ã‚  Some say that because contribution matching is now based on how well the company does, then employees will strive to do a more efficient job in order to increase the overall stock price of the company, which, in turn, will increase the amount of retirement they will receive. Now the problem of timing comes in again. Mr. Jim Davenport, a Staff Writer for The State Newspaper uses a good example: "An imaginary worker for an oil company was looking forward to retiring at the end of the week. His 401(k) is fat and has been getting fatter thanks to company stock.

Competing with Information Technology Essay

Chapter 2 introduces fundamental concepts of competitive advantage through information technology and illustrates major strategic applications of information systems. Information Technology (IT) professionals must understand how to use IT systems and technology to deliver a competitive advantage to the organization. Information systems and technology should provide more than a cost savings benefit to organizations. Today, IT solutions are expected to provide the means to surpass a competitor’s performance. As discussed in Chapter 1, the role of IT professionals is changing. Currently, there is an evolving term, business technology, which is used to describe the emerging role in IT. IT professionals are becoming more and more integrated with the business operations of an organizations. The Real World Case Study 4, â€Å"IT Leaders: Reinventing IT as a Strategic Business Partner,† describes how one organization is reorganizing to better utilize IT to increase business benefits and contribute to a competitive advantage. It is important for an IT organization to utilize IT to reduce the cost of running the business, grow the business, or develop new services to change the business. To position an organization to better provide its products and services, an understanding of the competitive forces is needed. Michael Porter identifies five threats that require business strategies ensure that an organization can out-perform other competitors. They are: 1. Rivalry of competitors within its industry 2. Threat of new entrants 3. Threat posed by substitute products that might capture its market share 4. The bargaining power of customers 5. The bargaining power of suppliers To counteract these threats, competitive strategies must be developed to address the potential risks an organization may encounter as it strives to maintain its position on the market place. The competitive strategies are: 1. Cost Leadership Strategy 2. Differentiation Strategy 3. Innovation Strategy 4. Growth Strategies 5. Alliance Strategies 6. Other Strategies These strategies can be used either individually or in a combination to position an organization to better compete for the future. An example of an organization that is utilizing IT to change how it does business and remain economically viable in the future is the online magazine Cross Talk. In the 1990’s, Cross Talk was printing and mailing the magazine to subscribers. With a decrease in funding, this organization had to develop ways to reduce costs, deliver its services to its subscribers, grow its subscriber base, demonstrate its value above other on-line content providers, and justify why it should not be eliminated. Cross Talk is now available at its new website in either an online digital flipbook format or PDF version—CrossTalk is now completely electronic. This change reduces their carbon footprint and allows them to bring the journal to their readers in their preferred and most convenient format. This is also CrossTalk’s first step towards reaching new reader devices and enhancing the suitability of the journal for our increasing electronic readership. Customer Value Customer value has become a driving force in the world economy. A key success factor for many organizations is developing customer value by increasing customer loyalty, anticipate their future needs, respond to customer concerns, and provide top-quality customer service. One example is Southwest Airlines. Not only have they automated ticket sales via the Internet, Southwest also sends special offers regarding discounts available at my destination, emails to remind customers that the trip is â€Å"around the corner,† text alerts if a flight is delayed, and offers incentives to fly with them. It seems that Southwest Airlines provides a personal assistant to help make the travel experience more enjoyable. Think about how some of your favorite businesses are creating customer value for you. Internet Technologies Many organizations use Internet technologies to create a strategy to offer fast, responsive, high-quality products and services tailored to a customer’s individual preferences. Internet technologies make customers the focal point of customer relationship management (CRM) and other e-business applications. New technologies such as wikis and blogs are also being incorporated as a means to provide enhanced customer experience. Such communications enable continual interaction with customers by creating a cross-functional collaboration with customers in product development, marketing, delivery, service, and technical support. Television is taking advantage of this capability. TV news shows are reading and answering emails and some reality TV shows allow views to vote for their favorite contestant, preferred ending, or favorite commercial. Using the Internet technologies, business units are better able to shape and offer products and services. Value Chain The value chain is another concept that helps to identify opportunities for strategic information systems. It views an organization as a series of basic activities that add value to its products and services. In this framework, activities are organized into primary and support processes. From the business understanding gained by analyzing an organization’s value chain, the IT organization can determine where to best apply IT systems and technology. The following value chain graphic provides an example of how and where information technologies can be applied to specific business processes to gain a competitive advantage in the market place. Value chain offered by information technologies. Business Reengineering Often times, to remain competitive, an organization must consider more than just where and what IT systems and technology solutions should applied. An organization must look at how it actually does business and then reengineer its business processes. Business reengineering requires an organization to re-design how it does business by eliminating stove-piped, silo organizations and functions, develop an improved understanding for opportunities for information sharing, and instituting enhanced stewardship regarding an organizations data and business processes. Agile Companies The rate of change is increasing and organizations must be able to quickly respond to changing market trends. Standardized, long-lived products and services are giving way to globalized, niche markets which offer products that are individualized and short-lived. To become an agile organization, an organization must consider the following strategies. 1. Provide a solution that customers perceive as a solution to an individual problem. This allows the product to be priced based on value rather than cost to produce. 2. Cooperate with customers suppliers, and other companies to quickly bring the product to market. 3. Thrive on change and uncertainty. 4. Leverage the individuals and knowledge of the processes. Become entrepreneurial in spirit. Knowledge as a Competitive Advantage To remain competitive, organization must become a learning organization. Organizations must be able to capture the knowledge of the organization, learn from this knowledge, and then use it to enhance its offerings. Knowledge Management Systems facilitates an organization’s ability to capture and then utilize its knowledge. Understanding and being able to utilize this â€Å"unstructured date† is key to developing and maintain a competitive advantage. Information capture includes processes, procedures, patents, reference works, best practices, etc. This integration of knowledge helps an organization become an innovative and agile provider of high-quality products and customer services, and potentially a more formidable competitor in the market place. Leaders in information technology are expected to be not only a technology professional but also a business professional. Many are tasked with finding emerging business opportunities, driving growth, encouraging innovation, and engaging customers. This provides a tremendous opportunity for you to step up and co-create and ultimately shape the future business vision. Collaborating with the business will not be enough—you don’t just provide the technology but jointly own the success and failure of business initiatives. IT Portfolio Management and Governance An emerging trend is enhanced IT Portfolio Management and Governance as a means to effectively apply IT systems and technology to business needs. According to Richard Spires, DHS CIO, in his blog post entitled Getting Program Governance Right Helps Ensure Success on the federal CIO Council Web site: Complex IT systems encompass at least a half-dozen stakeholder organizations that must be synchronized, including the strategy organization, the business or mission owner of the system, IT, finance, procurement, security, and privacy. Ensuring all key stakeholders are involved in key decisions is an essential element to assuring genuine alignment. Program Governance Boards provide guidance, decision-making, and oversight of one or more programs. The function of the Program Governance Board is not to usurp the authorities of the Program Manager (PM), but rather to provide a forum by which the PM can bring key issues and trade-off decisions to an informed, empowered body that has a vested interest in that program’s success and views the PM as a trusted advisor and true subject matter specialist. IT organizations must determine where to invest time, people, and money in current and new IT systems and services in order to enhance the value of products and services. To do this, many organizations are categorizing offerings into individual portfolios and establishing a strong governance structure to guide the selection and investment into solutions. Enterprise Architecture Organizations are establishing an Enterprise Architecture (EA) to inform, guide and constrain the investment decisions made by governance boards regarding IT systems. The Federal CIO Council defines EA as: Enterprise Architecture is a strategic information asset base, which defines the mission, the information necessary to perform the mission and the technologies necessary to perform the mission, and the transitional processes for implementing new technologies in response to changing mission needs. An enterprise architecture includes a baseline architecture, target architecture (sometimes referred to an as-is and to-be), and a sequencing plan. An EA identifies which processes and IT systems to standardize and integrate. The benefits of an EA are reduction in IT Costs, improved IT responsiveness, guides the proper selection of IT solutions to ensure the accomplishment strategic business outcomes. The components of an enterprise architecture is described in the figure below: Various layers of an enterprise architecture. (Source: NIST) Conclusion How does your organization determine how to invest in IT? You might see if one of your organization’s senior executives is available for a 30 minute meeting to discuss how the organization determines what technologies to invest in as a corporation. Think about questions to ask. Some examples might be: how is an business need identified? How are IT investments justified? Who are your competitors? If you work for an IT consulting firm, you might as how the company decides what contracts it will bid on. It can be said that our use of IT systems and technology is equivalent to when we were using rotary telephones. As you complete your Masters Program at UMUC, remain watchful of emerging trends in the IT industry, how it will be utilized to gain a competitive advantage, and what impact it will have on the skills needed by an IT professional and the organization structure required to take advantage of the advancements in technology. Trends currently occurring that may be worth watching are: cloud computing, software as a service, virtualization, social networks, and mobile computing. It is through developing learning as a life-long habit, remaining aware of trends in the industry, and understanding the impact that technology has on a company’s ability to compete that you, as an individual, will be able to keep your skills current, agile, and competitive.