MGMT 3020 - Case Group Part 1 PDF

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MGMT*3020 -- Group 32 Case Group Assessment Part #1: Analysis Huiyi Wu (1055133) Ben Bradshaw (1000061) Georgio Elkhass (1071700) Mitchell Taylor (0980126) Kaitlyn Reaume（1016536）

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Table of Contents

Executive Summary ….

Page 3

Introduction ….

Page 4

Impetus ….

Page 4 – 7

Description of CSR Issues ….

Page 7 - 12

Analysis of Fresche CSR Strategy ….

Page 12 - 13

Conclusion ….

Page 13 - 14

Bibliography ….

Page 15 - 17

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Executive Summary: Fresche Solutions Inc. is a Canadian-owned Montréal-based tech services corporation with offices across the globe, including the United States, the United Kingdom, and India. Fresche Solutions Inc. was listed as being one of Montreal's Top Employers in 2020 which is proved by the excellent attempts they have taken to implement the right steps to achieve corporate social responsibility. Fresche Solutions moves further than just fiscal, ethical, and moral obligations to actively carry out humanitarian efforts to gain Social responsibility. One of the advantages of being hired under Fresche Solutions would be that it covers 65 percent of every health plan cost towards the end of every year. Above that, it encourages workers to manage their time as well as their private life with adjustable work arrangements, which include flexible schedules, telecommunications, and shorter workweek alternatives, with a vacation allowance enabling employees to receive 3 weeks paid vacation days. In addition, they enable training development projects including an annual limit of $1000 for related to work courses. Their new Corporate responsibility approach guarantees that all stakeholders' expectations are addressed through engaging in their neighborhoods and staff, thereby separating oneself among their competition with a dedication to CSR. Fresche Solutions does this by endorsing a number of voluntary organizations annually allowing staff to contribute voluntarily and effectively contributing workplace contributions to the society on a compensated break from work basis. The latest CSR approaches of Fresche solutions will also be built then improved by an objective SWOT analysis in this case study. The models proposed involve Corporate activism as well as Product Sustainability, which are analyzed to illustrate the indispensable power they wield throughout the organization’s status as a Sustainability-abiding organization.

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Introduction: Fresche solution is almost the only destination where users could turn for IBM development and management needs. Their approaches aid in adapting to new programming techniques and technology, like cloud, smartphone, and open-source to enhance market operations and build customer-based profit-generating software. With the fastest growing holdings of IBM application technology and consultancy services currently available, users offer analytics, operational efficiency, automated software transformation, web server revitalization, internet, and software development as well as divulging document allocation. Clients increase the productivity obtained for more than 40 years of serving a cumulative consumer base of 22,000 international corporations, which include household branded products such as Adidas, Avon, CVS, Royal Caribbean Cruise Lines, Staples, Universal Music Group, among others(viatec,2020). They operate along to integrate IT with strategic goals, as well as assist in building a better future for someone’s IT. They aim to create relations, ongoing improvement, contentment, and clarity.

Context Fresche Solutions is a part of the international business machines corporation (IBM i business) where they focus on assistance for your current IBM modernization and management needs. Fresche Solutions assists you with your IT goals that correspond with your particular business and makes it possible for you to obtain the future you want in IT and reach those goals thanks to their well expertise at Fresche Solutions. To do this they utilize current computer practices and technologies. Examples include the web, mobile and open-source to improve business processes and develop customer-facing and

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revenue-generating applications. They pride themselves in their excessive experience of 40 years and their created system of “referenceability” which means “that you can pick up the phone and call any one of our clients, and you will get an exceptional reference.” This is a big incentive for them to always give their one hundred percent to ensure that reference from a prior client results in a one hundred percent. Fresche Solutions sense of achievement explained by President & CEO, Andy Kulakowski, is when they uphold their three main values of client success, caring and trust.

Major trends in industry Right now, the importance of CSR seems to be accelerated a lot and commonly acknowledged in the IBM industry. To give some short examples, there are firstly data scientists that are keeping Europe's offshore wind turbines running and an automotive executive envisioning supply chain transformation. There also is agriculture farmers tapping into these analytics to better produce for the world, produce according to weather / battle of climate change and utilize IBM platforms to reduce overhead costs (Sethi, 2019, pg. 3-5). The trends that we essentially are seeing is enhanced education regarding the purpose and benefit of CSR along with the increased participation in these activities. To specifically outline the trends for the IBM industry, Gary Shapiro Ceo of the Consumer Technology Association stated “there is a growing trend of R&D investment led by small countries, strong digital and physical infrastructure among European nations; and transformative self-driving technology in countries; across the world.” which displays to us that in the digital community worldwide it is increasing in the initiatives for innovation and CSR (Shapiro, 2019, pg. 44).

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Why incorporate CSR? Fresche Solutions needs to shift to more sustainable practices and more efforts to give back to the environment it's taking from. If incorporating CSR for Fresche Solutions isn't because of the positive benefits and duty to the environment it at least is because others in their industry are doing so. They as a company, in a competitive environment, require to keep up or they will be left behind and in specific terms of CSR, it is more beneficial to following along and to adapt to the constantly shifting needs of the stakeholders who keep this business world afloat then to not adapt (Chandler, 2017, pg. 63). Therefore Fresche Solutions should pursue CSR because firstly technology they embody leads to innovation. Secondly, digital technology and the internet is most influential at this time period and lastly, it is the future. Technology is the key holder for innovation and with that being said it is prominent to have these journeys of advancement for not short term goals but to be utilized and essential for the future, a tough journey but one worth travelling. This means that Fresche is fortunate enough to be a part of this sector to be a forefront to create their own journey as a company to implement greater effects for them as a company, their valued customers, to care for the environment and be a trustful place that wants to do good. All of those reasons align with their values as a company. Secondly, the internet and digital technology is more influential than ever right now with it being the main channel for entertainment, news and health tapping into its potential leads for innovation. Dr. Emma Norris stated “Computers can keep up in ways we can’t.” She elaborates that it isn't excitement over a database it is excitement about what we as people can do with these databases (Norris, 2019, pg. 41). To conclude CSR is the future as we know it, we are coming up to the age of authenticity and this requires these efforts to be intertwined with the company's purpose, brand and culture.

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Competitive analysis Fresche Solutions obtains 2 key competitors which are firstly, LANSA and secondly K2. Both these competitors are primary competition as they all are targeting a similar audience and a closely related service and product.

LANSA , co-founded by Peter Draney, as well as Fresche Solutions looks to assist you with your technology goals in the utmost efficient and convenient way where they are confident in modernization. They specialize in a low code development platform that focuses on high control, hitting every aspect of a perspective business. From managers, developers, CxO’s and independent software vendors / system integrators. K2 software enterprise, whose President & CEO is Evan Ellis prides his company in making the impossible possible with utilizing process automation as their cornerstone of the company. Along with Fresche they want to simplify and satisfy their customers, however, have only been around half the time as Fresche with half the consumer base.

Description of CSR Issues Fresche Solutions Inc specializes in the modernization and management of legacy environments. It accomplishes this by providing IT alignment services to increase financial performance, improve market competitiveness, remove risk, and add value (Bloomberg ,2020). Fresche Solutions has been operational for over 40 years and continues to serve its growing global clientele. A SWOT analysis is a great way to gain a better understanding of a business’s current standing by analyzing and understanding various factors that could potentially contribute towards or retract from the success of a business. SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats, all of which are important

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factors that relate to creating a general analysis of a business in order to allow for an assessment of themselves prior to making any drastic changes or implementing new strategies. Below is a SWOT analysis that defines the nature of the IT business:

Strengths; Focus on Innovation The prime factor behind Fresche's geometric growth is its specialization on the modernization of existing technologies as their primary service to businesses. Companies that choose to do business with Fresche assert that the latter is well versed and highly motivated to understand legacy systems, IT environments, and the process of transforming existing environments through modernization (GlobeNewswire, 2018, April 20). Skilled Management Team Fresche's entire team comprises skilled experts and entrepreneurs ranging from the directors down to the technicians who continuously research on the ways of modernizing old technology in this fast-paced era of technological advancement (GlobeNewswire, 2018, April 20). The company provides a wide range of benefits and career development programs to attract and retain such competent staff. Access to Capital Fresche Solutions is a widely recognized innovative and future-oriented IT business in North America and the world over. This positive image enables the firm to score highly with most financial and lending institutions availing a wide range of financial resources to fund the company's growth orientation. In 2018, for instance, Fresche Solutions secured $60 Million from the National Bank of Canada, Investissement Québec, and TD Bank

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(GlobeNewswire, 2018, May 24). Capital is a significant challenge for firms in the IT modernization business owing to the expensive operational costs incurred.

Weaknesses; High Pressure on Employees Despite the competitive benefits offered by the IT alignment service provider, the company insists on a high level of performance from its staff and with the risk of job loss from the underperforming employees. Many employees on the Glassdoor assert that the management at Fresche Solutions Inc sets high-performance targets for employees, making the work environment stressful and reducing job satisfaction among the staff (Glassdoor, 2020). Extreme Focus on Growth Fresche Solutions Inc's primary focus is on organizational growth with minimal attention on the personal growth and sense of fulfillment among its employees. Such an extreme focus on financial and operational growth makes it difficult for the company to retain staff who feel they are a means to an end as opposed to individuals (Glassdoor, 2020). High Level of Debt The comprehensive growth strategy Fresche Solutions Inc is undertaking is increasing the leverage ratio for this IT business xx. This business strategy is risky as it may render the company bankrupt. For instance, the current economic slowdown has curtailed the operations of many companies upon which Fresche depends on its B2B customers.

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Opportunities; Industry Outlook is Promising Over the past several years, there has been an increase in the importance of the successful use of IT solutions for many businesses. According to the Computing Technology Industry Association (CompTIA), the IT industry has steadily grown in each of the last eight years and is projected to grow by roughly 3.7% in the year 2020 (CompTIA, November 2019). This trend suggests that more companies are realizing the benefits of increases in IT implementation, and this trend will be no different heading into future years and will become even more crucial to making businesses the most successful they can be. This means that as long as Fresche continues its high standards of quality and service, they should continue to receive new potential clients and should generally expand their operations along with the growing trend associated with the increased importance surrounding IT solutions. The Need for Expertise As information technologies have grown to become more common, they have also grown to be more complex. According to a report from the BusinessWire website, a survey of roughly 800 Chief Information Officer’s (CIO’s) provided some insight on how truly complex information technology can be, even to the most established information officers. The survey results showed that about 76% of CIO’s believe that the complexity of IT will soon make it legitimately impossible to efficiently manage and oversee their company’s digital performance (BusinessWire, January 2018). Even though the survey was conducted over two years ago, the results of the survey accurately illustrate that IT is an area in which true, unparalleled expertise is extremely important as it ensures to customers that their IT needs will be more than satisfied both for now, and for years to come. As IT grows, there is also a growing opinion among many information related job holders that IT is becoming too

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complex to handle on the company’s own terms, without any external assistance. Fresche’s proven track record of successful projects in tandem with their experienced employees personifies what it means to be an expert in their respective field. With the increasing complexity of IT creating challenges for typical corporations, Fresche’s expertise should become more relied upon and will result in a greater opportunity to gain more customers.

Threats; Companies Avoiding IT Intermediaries As mentioned previously, with the growth the IT sector has experienced over the past several years, the introduction of a new or restructured IT division within a company’s ranks has become somewhat more commonplace, especially in large corporations with ample resources and funds. Fresche serves as an intermediary in the sense that companies approach Fresche with the hopes of improving upon some of their existing systems with the end result of achieving some sort of specific goal that would be discussed between the client corporation and Fresche. If businesses are deciding to avoid the use of intermediary IT solution companies such as Fresche, and instead use their own in-house operations for their IT solutions, that would have an effect on Fresche’s customer base which would ultimately affect their profitability in the form of a reduced number of clients. Sizeable Competition Like nearly every industry, the IT solution industry has its fair share of competitors and in Fresche’s case, their biggest competitor is arguably the company LANSA. One of the reasons why LANSA poses as a threat to Fresche is in regard to LANSA’s recent acquisition by software technology giant Idera (Woodie, January 2019). Idera has resources and tangible assets located across the globe and offers a vast array of services and products that are all

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generally geared towards either the computer or information technology sectors. By acquiring LANSA, Idera has illustrated a desire to own and operate the LANSA company alongside its many software companies that are found under the corporate umbrella. With the substantial amount of resources at Idera’s disposal, they could allocate their resources to enhance any aspect of the LANSA company, thereby making relatively fierce competition in the IT solutions sector, and ultimately posing as a serious potential threat to Fresche’s business.

CSR Strategy Fresche Solutions Inc primarily engages in corporate social responsibility by providing value to the stakeholders they have identified as the most important: clients and employees. The organization helps employees to modernize their skill sets and learn new technologies and provides feedback as to how to continue to improve and grow professionally (Fresche, 2019). Fresche also helps employees by providing “peer-to-peer recognition, long-service awards and the Fresche People’s Choice Awards” as well as benefits such as 3 weeks of paid vacation, annual tuition programs, and in-house training initiatives (Leung and Yerema, 2020). Fresche also engages in professional development initiatives by providing $1000 per year to employees “for coaching, classes on the technical aspects of the business, leadership skills and more.” (Leung and Yerema, 2020). Fresche also makes providing value to clients a top priority through the IT service they provide as a company. They accomplish this by utilizing their experienced workforce and 40 years of experience in the field of IBM Systems (Fresche, 2020). The importance of meeting the needs of both internal and external stakeholders are directly tied to the company’s core values, which states “Our distinct company culture makes us a top employer,

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as well as a premier choice for customers” (Fresche, 2020). For Fresche, satisfying the needs of their employees and clients is their telos. Through this shared sense of purpose that is ingrained into every part of the business, Fresche can be described as a purposeful enterprise, meaning they continually follow their telos (Houston, 2017). While Fresche’s CSR strategy is beneficial to those inside the organization and those who interact directly with it, the company does not focus their efforts on corporate social responsibility for external stakeholders. Fresche has seen great success helping companies with IT solutions such as helping Adidas to integrate their applications with the Microsoft Office Suite (Fresche, n.d.), but the organization is not focused on reaching out to provide CSR benefits to external societal or environmental stakeholders. In this sense, the firm is not achieving the triple bottom line. This does not mean the company fails its CSR objectives; on the contrary, Fresche does not fall into the trap of seeking profit maximization and is able to provide real value for its internal stakeholders by staying true to its telos.

Conclusion Fresche solution has become very effective in ensuring an equilibrium with both a well-operated business and its humanitarian efforts. Although they may be in a competitive environment, Fresche Solutions culture enables them to be a top employer and even a first selection for their clients. With a 7.6% full-time staff growth in recent years, they have managed to prove that its values pervade its corporation and thus are expressed in al...