Information Technology 101

* A) Identify and describe three business pressures that affect Honda Canada. For each business pressure explain how the company could respond to it using information technology.

* Strong Competition for Market Share in a Global Economy Strategic Information Systems

* Honda Canada faces pressure from strong competition for market share in a global economy. Honda’s competitiveness has recently diminished as a result of the disruptions to its supply chain, specifically to the delivery of parts. The latest disaster sheds light on just-in-time production’s (JIT) inherent risks in the automotive industry: maintenance of low inventory and overreliance on a limited number of suppliers, both of which have been exacerbated by the recent supplier disruptions.

* Honda Canada experienced lengthy and severe disruptions caused due to the March earthquake and tsunami in Japan’s effect on suppliers’ flow of parts to operations in North America. In addition, it has recently been forced to slash output by 50 percent because of flooding in Thailand. Supplier disruptions have halted JIT operations, placing exorbitant pressure on Honda to compete in an intensely competitive and mature market, where sales overall have increased 1.7%. Honda Canada’s sales have slumped 14.9 percent, while operating profit has plummeted by 68 percent.

* Honda Canada can use information technology to respond to the pressure by developing strategic information systems. Strategic information systems manage information and assist in strategic decision making, providing organizations with strategic advantages by: (1) increasing market share and/or profit, (2) allowing for better negotiations with suppliers, or (3) preventing competitors from entering the industry. Honda Canada can facilitate the flow of information among all the process or an organization’s supply chain using an enterprise resource planning (ERP) software. Honda can then use externally focused applications, such as a supply...