Analysis of New Dawn Drilling Company Essay

New Dawn Drilling ( NDD ) is a company focused on identifying, geting and researching gold and Pt sedimentations. It is besides a major participant in belowground boring operations on South African land. The company presently has its operation spread over 6 towns in South Africa.

This study is produced by transporting out fact-finding concern analysis on NDD and its external environment to find company place and ability to last in the competitory excavation sector of SA. The analysis will assist in developing a long term strategic program to better the concern of the NDD Company.

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The good repute that NDD has developed in the market is used to develop a concern scheme to do it a trade name for boring operations and developing a niche market for its boring operations. The function of an information system in a concern and how it can be used to organize the paper work, development procedure and efficient working of the regional offices is evaluated. Use instance, activity and category diagrams are techniques used for patterning the information system. The premises made can be used to construe the system in a figure of different ways.

1.1 Introduction to Strategic Analysis tools

NDD can utilize several TPI can utilize several analysis techniques to detect the authority of its concern theoretical account, while analyzing the properties of the concern environment in which it operates. The techniques discussed below include SWOT, PESTEL and Porters Five Forces.

SWOT ( Strengths, weaknesses, chances, menaces ) analysis

SWOT analysis is a concern tool used to measure the company ‘s place in the market and its ability to last. It helps to foretell the capableness of the organisation. The strengths and failings trade with the internal facts and factors of the concern. The chances and menaces deal with the external factors of the organisation. Exploiting the right chance and safeguarding against the analyzed menaces can put a company apart from their competition.

Plague analysis ( Political, Economic, Socio-Cultural, and Technological )

The PESTEL analyses are used to scan the external environment. The Pestle analysis factors are out of the concerns control as they are ever capable to alter. Still, they have a important affect they have on company ‘s public presentation. They help the concerns to take a pro-active attack and be in front of these alterations alternatively of hurriedly altering the merchandises and procedures. ( Robert Mark Brown )

Porter ‘s Five forces

Porter ‘s 5 Forces can be best described by the undermentioned figure:

Figure: Conventional diagram of Porters 5 forces. ( Robert Mark Brown )

They are used determine the, “ expected degree of competitory strength ” ( Grunig and Kuhn, 2008, chap 11.1 ) . They analysis aid to observe which are the dominant forces which can command the concern. “ Using Porter ‘s five forces at the same time with SWOT analysis will add more depth to the analysis ” ( Mind tools, 2010 )

1.2 PESTle Analysis:

PESTLE Analysis factors

How does it impact NDD

Potential Impact:

Importance

Political:

1.There is an increasing black unionism which has caused a important alteration in South African political relations taking to reforms in statute law.

2. The Government has employed policy reforms which allow foreign direct investing in Africa ensuing in transportation of new engineerings for geographic expedition and boring services, accomplishments and production methods for efficient usage of the mineral resource.

3. The authorities has introduced ABET ( Adult basic instruction and Training ) to better the accomplishments and literacy of the people.

4.The Management of Health and Safety at Work Regulations ( 1999 ) is been continuously updated by implementing more rigorous regulations doing it more hard for companies to adhere to them. ( Rapidbi,2010 )

Employees of NDD are benefitted.

NDD can reach foreign companies for partnerships.

More skilled labor to engage from.

Extra costs might hold to be incurred

Medium

Medium

Low

High

Important

Critical

Unknown

Critical

Economic

1. South Africa is in a recession taking to moo long term involvement rates. The economic crisis had led to cut down duty, revenue enhancements and financial shortage.

2. The production of many large excavation companies was halted due to accidents on site owing to reduced activity on the excavation forepart. The gold and other monetary values besides dropped owing to cut down growing.

3.Global recession has weakened the rand has led to South Africa going a competitory topographic point to execute boring operations for excavation industry. ( Robert Mark Brown )

4.The excavation employers are puting and passing less as the Bankss have reduced the loaning tightened their budgets because Bankss are commanding imparting more purely.

5. Soon, the boring, geographic expedition and any excavation company for that affair has been faced to pass the 5 to 10 % of their paysheet in the accomplishment and development programmes required for their perspective operations. ( Rapidbi.,2010 )

Capital crunch

Less Business to make.

Increased competition

Ca n’t borrow Money for enlargement.

Reduced net incomes

High

High

High

Medium

Medium

Important

Unknown

Critical

Important

Important

Socio-cultural

1.South African excavation sector has lower degrees of skilled employees than other sectors in the economic system. But still they have strong excavation civilization which helps them bring forth new thoughts.

2. South Africa has a big presence of HIV/Aids epidemic and is high amongst immature SA population. The excavation sector is the deeply hit industry as the labour required by them is largely immature as the work required is physically burdensome and unsafe.

3.NDD has to maintain in head that when they expand their concern locally or internationally they have to see the local preferable manner of life and making things.

4.South Africa has turning cultural, cultural and gender diverseness taking to new chances every bit good as challenges. ( Rapidbi,2010 )

Labor with Strong excavation background.

Deal with favoritism which is bound to go on.

Transporting out extended research of demographic where they enter.

Management Challenges

Medium

High

High

Medium

Important

Critical

Important

Critical

Technological

1. Alternate cheaper and cheap sample retrieval techniques other than diamond boring can be used ex.RVC Drilling

2. The execution of information systems to the excavation companies has helped them to mine site production coverage and accounting. It besides helps them to cipher their natural stuff demands and helps in making wok purchase orders.

3. South Africa has a immense scientific discipline base invested in bettering Mining operations. They are continuously forcing the boundaries to automatize most of the procedures involved. It would assist the companies to cut down labour cost.

4. The deficiency of investing in Research and invention in the Mining sector has by and large contributed to lower degrees of operational productiveness compared to its strong planetary rivals like China and Australia. ( Robert Mark Brown )

Well cut down operation costs.

Help pull off Paper work expeditiously.

This can assist cut down the labor costs

Due to this NDD can non vie with the inter-national & A ; local large participants

High

High

High

Medium

Critical

Important

Unknown

Unknown

1.3 Porter ‘s Five Forces:

Menace of New Entry

It is improbable that there is a menace of new entry as the capital required to put up a concern similar to NDD is rather high. This can merely be afforded by companies with immense balance sheets and strong set of contacts. The industry is extremely regulated which makes it hard to come in. Few, but non all, geographic expedition and boring companies have established co-operation with excavation companies to stay in concern and these contracts are non easy awarded

Competitive Competition:

There are 25 local rivals of which few have thrice the turnover of NDD. This shows that NDD is a small/medium participant in a concentrated market. As the South African rand has weakened the excavation operation have been slowed down ensuing in increased competition to set down the bing few undertakings. and will non be able to profit from the economic systems of graduated table of the larger excavation sector. Some local challengers have partnerships and acquisitions with the larger excavation groups based locally or internationally. The companies can non win the contracts by maintaining their monetary values low as the cost of stuffs is traveling to increase due to recession.

Dickering power of Buyer:

The dialogue strength of the clients is high because, for illustration, a gold excavation company will seek to unify with its larger opposite number involved in gold, diamond, Pt, etc and this may offer us to hold a larger portion of the market. Though exchanging from one purchaser to another is hard NDD can be able to exert its market power.

Menace of Substitution

The menace of permutation is a rough world NDD has to confront. But the organisations out at that place which might execute operations similar to that of NDD are significant but limited. There are no new companies come ining so the menace of permutation tends to be low.

Dickering power of Supplier:

The bargaining power of the provider will be high. Boring operations are traveling to stay consistent and they are traveling to necessitate stuffs from providers. Due to the current economic conditions it has lead to monetary values lift and rising prices which have made monetary values of the trade goods required a spot unaffordable ( oils, lubricating oil ) .This has threatened the supply-chain relationship.

1.4 SWOT Analysis ( Intelligence Phase )

Strengths

1. NDD is a company aiming Cu, gold and Pt metal ores in Orkney, Randoftein, etc which the rich mineral belts of South Africa are.

2. It has a consistent belowground boring concern which will go on to be as the companies are obliged to transport out nucleus trying for safety grounds. ( New Dawn Drilling, 2010 )

3. Their direction squad is good competent, experienced and have set of proficient expertness. ( New Dawn Drilling, 2010 )

4. Surface geographic expedition lends itself good to a high grade of mechanization which can assist cut down labour cost and better production rates.

5. South Africa is a low hazard crowned head country.NDD has focused its geographic expedition and boring operations merely in South Africa which is justified by the past economic planetary events.

6. Amalgamation of the orders at the cardinal offices enables the company to purchase at cheaper rates from providers. ( New Dawn Drilling, 2010 )

Failings

1 The geographic expedition concern is highly sensitive so it requires a strategic concern program to last and flourish.NDD does non hold any kind of program if they were traveling to lose a important sum of concern.

2. In the current state of affairs, NDD can non track whether inordinate replacings of parts are taking topographic point at certain undertaking sites.

3. NDD has hapless communicating channels. The absence of centralised direction system restricts the chief office from accessing information in existent clip. They have to wait for the regional sites to roll up the information and mail it to them.

4. NDD is dependent wholly on its belowground boring operations for net income as surface boring concern is simply doing a net income.

5. NDD has non yet ventured into the excavation sectors internationally. ( Helix Resources Limited, 2010 )

Opportunities

1. South Africa has been long involved in excavation and it has a promising geological scene for other minerals. They can get down using for undertakings which include researching and boring for minerals like Ni, Rare Earth elements ( Ree ‘s ) , etc.

2. To come in into international markets sooner get downing from the African neighbours.

3. The current deficit of high quality sedimentations has caused a immense market involvement in new geographic expedition activities. This can be a great chance to lasso in a few excess undertakings from companies.

4. Opportunity to unify with other companies in the excavation industry, to profit from shared cognition, economic systems of graduated table and offer more services like rivals.

5. NDD ‘s major opportunities of success prevarication in turn outing a modesty. This can be achieved by implementing latest or jump boring and geographic expedition techniques.

7. NDD can utilize farm-in-opportunities in parts which they think have possible for Cu, gold or any other mineral.

8. A new employee displacement system can be implanted to guarantee boring operations at non- extremum times. ( New Dawn Drilling, 2010 )

Menaces

1. Exploration is inherently a hazardous concern as it is really hard to foretell and merely smattering of geographic expedition operations turn into production.

2. Regulative risk- If any alterations happen to the wellness and safety regulations or environmental Torahs and ordinances, it would ensue in company bearing extra costs.

3. Challenges from local and foreign companies executing the similar services are high.

4. Over trust on engineering – The Personal computers at the undertaking sites will be linked to the waiter at Johannesburg for entree to the application package and database. So if the system is down it can convey the working of the concern to arrest. It is critical that the waiters are running for the activity based bing system to work expeditiously since the concern is based in two geographical locations. ( New Dawn Drilling, 2010 )

1.5 Decision of the strategic analysis techniques

The strategic analysis from the SWOT, PEST and Porters five forces indicate that the strengths of the company are outweighed by its failings and menaces. The concern which the company is runing is really sensitive and strategic analysis of NDD helps us to reason that the bing concern policy will non assist it to last in the long term. The chances presented to NDD through the SWOT analysis suggest how the concern could aim a specific section in the market, instead than the mass market which is saturated as abroad makers enter the industry in the UK.

A major strength of NDD is the repute and a little but strong bridgehead in the gold and Pt ore organic structures of excavation industry. This chance can be exploited to the fullest by branding itself and utilizing a the bing undertakings as a leeway to obtain new undertakings in the other mineral ore organic structures like Ni or even the rare Earth metals ( REEs ) .NDD has a good working relationship with its excavation employers and it is possible that the company can utilize this strength to transport out Research & A ; Development to implement new and latest boring and geographic expedition engineerings. This might besides assist in happening and functioning a spread in the current boring services provided by the companies if it exists. ( Helix Resources Limited, 2010 ) ( Fin Metal Mining Ltd, 2010 )

The greatest failing of NDD is a fact that it is a little participant in a competitory South African excavation industry dominated by larger organisations and besides will non be able to vie on cost with their Asiatic counterparts.NDD demands to implement a direction information system and streamline its operations so that it can track the cost of boring, maintain a record of inordinate replacing of dearly-won parts and place operations where costs are transcending the income. The Management information system being implemented in the signifier of an activity based bing system can assist to transport out the monetary value repairing exercising with the excavation companies.

1.6 Five twelvemonth Business program:

The bill of exchange of the five twelvemonth concern program for NDD is developed on the footing of the decision of the strategic analysis of NDD utilizing PESTEL, Porters Five Forces and SWOT.

In the current state of affairs NDD does non hold any Strategic program and their concern is enormously sensitive depending upon the local and planetary market events. If NDD were to lose their current portion of concern they would hold no manner frontward. Therefore, NDD needs to weigh its options locally every bit good every bit internationally as there are other states excessively those are involved in excavation. Branding, though rather seldom used in excavation industry it is going an approaching tendency for companies to distinguish themselves from their challengers. They can concentrate on a peculiar market ; do alterations to their employee work form and their concern program for the hereafter

1.6.1 SWOT-Design Phase:

Failings

1. They do n’t hold a system in topographic point to gauge right contract rates. Even if little alterations occur in the contract rates they earnestly impact the income watercourse.

2. NDD is comparatively a small/medium participant with a turnover of up to 20 million dollars. NDD can non hold the same degree of resources that are available to their large rivals

Strengths

They can maintain concentrating on gold as it is a booming concern.

2. The company has a healthy grapevine of undertakings in manus with in minerals runing from gold, Cu and Pt spread over six geographically different countries.

3. The one-year monetary value repair of the contract enables the company to measure its variable costs in relation to the bing economic conditions.

Opportunities

NDD can trade name itself for operations they are presently executing.

They can implement Management information system to track stuffs and calculate contract pricing.

They can come in the stock market doing the private concern populace.

. A new employee displacement system can be implanted to guarantee boring operations at non- extremum times.

Menaces

1. Economic Factors: involvement rates, political determinations, rising prices Als affect the excavation industry really severely.

2. Lack of Skilled workers – Although the figure of people come ining the excavation sector is high in SA, many lack the specializer accomplishments required to transport out specific operations.

1.6.2 Using Branding as Business Strategy:

NDD already has a reputed name as it is involved in undertakings spread over six geographically different towns in SA. This means that company can utilize some signifier of marketing schemes to set up itself as a trade name in the services and operations they are executing.

For branding NDD needs to see two basic schemes. The first is to be different from the others and emphasis on the typical characteristic that NDD offers when it is employed by the organisation. Every employer is willing to see something different which is profitable for them. This can be a different work roll or an advanced system to execute operations required. The 2nd will be to set through the NDD ‘s vision, values and civilization. While making this if we stumble upon that a certain facet of the company is non deserving publicising so we can ever concentrate on the strengths we have derived from the SWOT analysis. This is a long term solution which will do the Company competitory as it will take some clip for mining employers to develop assurance in them. Besides, an of import advantage is the fact that the sum of resources required for branding an organisation go on diminishing with clip as more and more Companies start detecting. ( Helix Resources Limited,2010 ) ( Fin Metal Mining Ltd,2010 )

1.6.3 Targeting a Niche Sector in Mining Sector ;

NDD is presently working on 9 shafts related to gold. This can utilize as an advantage by NDD by aiming all the gold shaft related undertakings. Most of the companies are focused on Pt markets which can assist NDD cut down some of the sensed menaces to its concern by aiming the gold market. The excavation sector is going progressively competitory and there any many large multi-nationals out at that place ready to set small/medium industries out of business.NDD can utilize the contacts from the bing gold excavation employers to farther there aspiration. They can even come in into partnerships with their current employers and mark future gold shaft contracts and guaranting a stableness of income to their concern. Due to NDD ‘s old and present path record the companies might see come ining into partnership. Even though there have been planetary recession, the gold production and excavation has n’t been affected severely. They can besides venture into international markets for gold related undertakings. They can get down with using for contracts in Zimbabwe and Tanzania which are besides rich for gold sedimentations and less competitory than South Africa.NDD compared to other companies in these states can be termed as Medium/Big participant which help give them an advantage. The labour and operating costs will besides be low compared to SA. Thus aiming gold related operations can turn out to be a immense safety cyberspace in these unsure times. Though it ca n’t be neglected that the Pestle analysis are traveling to order the income and pricing for the contracts. ( Fin Metal Mining Ltd. 2010 ) ( Otjihase and Matchless Mines ) .

1.6.4 Operating Strategic program For NDD:

NDD can concentrate their bing scheme on the happening out near surface marks for gold ( niche ) or the other two minerals they are runing. This will let them to execute belowground boring operations on surfaces which are suited for unfastened cut excavation operations. This focal point on countries which have a rich history for old success, for illustration, aiming undertakings in countries of Kimberley Reef group will maintain the income hard currency flow invariable in these current economic conditions. ( Otjihase and Matchless Mines ) .

NDD can besides come in into boring undertakings for minerals other than gold, Pt, Cu.NDD can seek U, Ni or the Rare Earth elements ( Ree ‘s ) .For U they can concentrate on researching countries like Gauteng in Witwatersrand basin which are rich in content guaranting belowground boring operations to be performed on them for the excavation employers to get down their excavation production. Similarly for Nickel which is even easier as Phalborawa where they are presently runing are rich in Nickel sedimentations. They can get undertakings related to them as they are already well-known in that country. They can NDD can prioritise their accepting of surface geographic expedition undertakings in the undermentioned sequence:

In countries necessitating near surface geographic expedition with mineralization marks non more than 70 m below which are highly high potency for Mining operations.

Targeting countries which have a excavation history

Areas which have non been mined antecedently but seem to hold possible for belowground excavation

They can besides set about undertakings from companies which require renovation for their shafts. The renovation for the shafts will include an belowground drill plan to take stone sample from the shafts and perform trials on them. This will let the excavation companies to assist gauge the sum of mineralization left in the pess or hanging walls of these shafts. These contracts will non necessitate any new engineerings and investing from NDD as it is already making it for its current employers in some manner. This can be a manner to spread out their concern. ( Exploration Strategy, 2010 ) ( Otjihase and Matchless Mines ) .

1.6.5 Alternate operating technique:

NDD can besides seek out a different operating scheme for belowground Drilling. At present, Diamond boring is used for recovering nucleus samples which is expensive and clip devouring. Alternatively of this, NDD can implement RVC boring which give little stone samples alternatively of a solid nucleus which are easier to look under microscope.

Figure: Rvc Drilliing ( Delta Mine preparation centre, 2010 )

RVC boring requires a spot larger equipment but it has high rate of incursion and low cost per pes. This makes it faster and cheap than diamond boring. This can assist NDD cut down its operational costs. ( Trevor Fletcher ) ( Otjihase and Matchless Mines ) .

1.6.6 Traveling Public:

The other scheme NDD can follow is doing the private company go public. This will assist it come in the South African stock exchange where people can purchase NDD ‘s Shares. This will besides automatically serve as a intent of branding as it will assist the company acquire noticed. This will besides assist them to acquire international recognizition.They can come in into partnerships with the foreign companies which are looking to put in Africa due to new FDI Policy implemented by South African authorities. This can function as an chance for NDD to acquire undertakings locally every bit good as internationally.

1.6.7 Employee displacement system:

At present the company operations on site are carried out 7 yearss a hebdomad and 3 tens 8 hr displacement footing. This can be replaced by be 2 ten 10 hr displacement on a uninterrupted footing. Often the drill started on one displacement ends on another ‘s displacement. This can sometimes do holds. New displacements will minimise these opportunities and besides save clip. The overtime will be calculated above the set 10 hours cut downing the costs incurred by the company. This will besides assist in diminishing the non-productive hours. ( Shift Schedules, 2010 ) ( Otjihase and Matchless Mines )

1.6.7 Role of the manager pull offing the hereafter:

NDD can non alter its operating schemes overnight. It will necessitate a bit-by-bit procedure organize the direction personality ( 1 manager ) which is experienced and has a proved field experience. He will besides play a major function in measuring pricing for stamps, contracts and geting the undertakings. The employees are traveling to confront a batch of societal troubles while seeking to run with new information systems at offices and besides new runing techniques on site. Therefore, the direction has to work out the jobs on site or the bugs in the information systems by naming people for that intents. Subsequently, when the programs work he has to give financess for their care and uninterrupted betterments. He will hold to unite the top functionaries from NDD ‘s regional offices and work together for better hereafter of the company.

1.6.8 Legal Factors to be considered:

The rigorous wellness and safety regulations mean that NDD will confront legal challenges to do certain the company and staff have been vetted by the authorities and have obtained a degree of safety clearance deemed fit to transport out its boring operations.. The company must follow “ The Management of Health and Safety at Work Regulations ( 1999 ) ” which stated that the work equipment should follow with the rigorous and complex safety control procedures necessary for mine related operations. They must besides hold emptying methods in topographic point in instance a calamity occurs. The concern of the NDD is susceptible to a figure of hazards and jeopardies which involve labour differences, on-site accidents, unanticipated geological and environmental conditions, cave-ins or even temblors for that affair. This can do harm to the company equipments, belongingss or even decease of the employees which can acquire the company into a legal muss. Therefore, NDD must hold an insurance policy to cover itself if these catastrophes were to occur.. Companies supplying insurances for excavation industry by and large at high premium costs. Losingss from these events might be hard to retrieve from for NDD so they need to hold them even though it is non on their footings.

Chapter 2

2 a ) Use instance Diagram:

2 B ) Class Diagram:

Class Diagrams:

Activity Diagram:

2 degree Celsiuss ) Activity Diagram:

2 vitamin D ) Architecture of the Information System:

The Johannesburg office has a waiter and 2 computing machines which are connected utilizing a switch. This switch is used to make 2 subnets of which 1 contains the waiter while the other contains 2 personal computer. This will help in direction and care of the information systems and besides aid in future enlargement. The switch is connected to the router which is in bend connected to the cyberspace through a firewall. This firewall will protect the internal web and besides manage the VPN connexions from the regional offices.The regional offices will utilize local cyberspace suppliers to link to the cyberspace. This will be much cheaper and flexible than holding private dedicated lines from the regional offices to the chief office.

Network connexions:

An Ethernet overseas telegram is used to connexion between the Personal computer ‘s and the router and the router and the waiter is carried out utilizing an Ethernet overseas telegram.

All personal computer at the regional offices will hold internet connexion so that they are connected to the waiter in Johannesburg. As a security step firewall will be placed between the cyberspace connexion and the waiter. Barcode readers will be made nomadic by linking them to the personal computer utilizing a radio connection.. Virtual private webs ( VPN ) will be used over the web connexion for the personal computer ‘s to pass on with the waiter in Johannesburg ( Beynon-Davies )

Software required

Windows NT is used as the operating system and waiter package. The package will hold applications such as buying, word processing, activity based costing system, and stock control.The personal computer ‘s at regional offices will hold installed the Windowss runing system and must log in to the waiter to utilize the applications. Personal computer ‘s will be equipped with package linked to the waiter for barcode reading processs. ( Beynon-Davies )

Security

A firewall is in topographic point to halt any unauthorised entree. There is log in system available on each personal computer to curtail it to merely employees of the company.VPN ‘s are used by the regional offices to link to the Johannesburg waiter over any other unbarred web connexion. ( Beynon-Davies )

Chapter 3 Decision

The study gives a broad position by transporting out analysis of NDD and how underdeveloped and implementing a strategic concern program can assist the NDD ‘s concern to last and turn in a competitory environment.

It is highly critical to understand that determinations made utilizing the strategic analysis techniques are based on premises for, e.g. will the investing be made by the company venture into international markets, or will they put in the equipments necessary for researching minerals ore bodies other than gold, Cu and Pt, develop its employees for this intent and besides happening and supplying boring services which are yet non out at that place in the maket.NDD must besides be willing to pass to purchase new machine-controlled boring machines if they are available or invest in automatizing their existing machines

NDD must understand that the analysis techniques have their restrictions and recognize that perpetrating itself to sudden alteration by set abouting undertakings for different minerals or REE ‘s might be hazardous, although the hazard can be good afforded as it is likely that if the concern continues to work as it is of now it would be pushed out of the excavation sector by local and abroad rivals come ining the South African excavation industry.

Traveling into researching and boring for other mineral ores such as Ni, REE ‘s, etc or spread outing into foreign markets can hold their portion of menaces as it is likely that there are specific companies who will hold built a great trade of experience in the field and have long term strategic contracts with their clients. New participants like NDD, may be ignored by clients in the international or local unseasoned mineral markets because they may be perceived to non hold the necessary accomplishments to function the industry.

The determination to utilize stigmatization can assist clients notice NDD, but this can merely work if the clients can anticipate something different from them in footings of services, grants and if they have good record on old or on-going undertakings. While it is been expected that the NDD will be able to develop a strong trade name in a speedy period of clip, in world, it could take far longer if they do n’t acquire more undertakings locally or globally.

A scheme based on come ining unknown markets can be bad as success is non guaranteed. NDD can take fiscal hazard up to a certain bound when development or purchasing new, advanced machines to execute their require operations. The best manner they can make is by come ining into partnership with their excavation employers.

Another cardinal premise is that NDD has a big sum of finance available to the concern, whereas it can be seen that they are wholly dependent on belowground boring as their income beginning. They can non even use for loans as the recession has reduced the degree of loaning from Bankss. Therefore, if the hard currency flow of the company is non managed expeditiously so the investing in branding and new operating machines and techniques can go forth them with no working capital to go on runing. In the current tech-savvy environment, it is really hard for a little to medium sized concerns to stay competitory without holding some signifier of information system. The Management information system implemented may or may non give immediate consequences but surely it will assist to better efficiency and will take clip to put in and will necessitate changeless betterment and perchance even redesign before it can truly better the efficiency of TPI and the estimating procedure for stamps.

The design of the information system can go forth the concern vulnerable to menaces from hackers from outside the concern. If NDD enters into other subdivisions of excavation industry or into the international market it will surely necessitate to better security because of the sensitive information of the company contained in the system. The societal effects of the information bing system must besides be considered because employees of the company will find the success of the system. As most of our employees are natural to hold less IT background they need to be trained and this all depend on the employees willingness to accept alteration. They might happen it uncomfortable and unsettling to see that their work has been tracked by the system. It is of import to retrieve that concerns are susceptible to alterations in external environment. Developing a five twelvemonth program based on the external environment today can hold black effects if major alterations are supposed to go on in the environment. after the strategic analysis techniques are used. Peoples be aftering the future way for the New Dawn Drilling Company should non merely see strategic analysis techniques but use their intuition and experience to do the right determination. ( RIO TINTO ILMENITE,2010 ) .A