The Software Industry

1. Introduction

1.1 The Software Industry

The software industry was launched in the 1950’s where computers began to be used for business applications and it then it rapidly started creating a huge demand for people with experience in programming (Anon 2007). Over the years the industry went through a number of changes and innovations, with software products coming into the market for the first time in the 1960’s, to commercial laptops being developed in the 1980’s and 1990’s (Wikipedia/CRM 2008).

1.2 Ariel Systems and CSR

The UK based organization, Ariel Systems, is the market leading supplier of Customer Relationship Management system software. The firm is present in over 40 countries worldwide and employs 20,000 people. With an annual turnover in excess of 2 billion pounds, the company is very profitable and is in a very healthy financial state (Burns-Nurse 2008). The Board of Ariel Systems now wants to look at whether being Corporate Social Responsibility/Ethically Marketing oriented will move the company forward into the future.

Corporate Social Responsibility involves looking at the good of the wider communities, locally and globally and not only the company’s customers and profitability. Marketing and being Socially Responsible deals with ensuring that organizations handle marketing with utmost care and responsibility. This has to do with such issues as marketing to children and the environmental impact of the firm. One way to put it is the CSR organization should “strive to make a profit, obey the law, be ethical, and be a good citizen” (Brassington & Pettitt 2007: 13).

2. Internal Analysis

2.1 Functional Areas

The main internal functional areas of an organization include finance, human resources, research & development, production, and marketing (Brassington & Pettitt 2007: 19). These departments provide the foundation for an organization to develop and mature.

2.1.1 Finance:

The financial area of the organization typically provides the financial plan for the firm and oversees whether the objectives set out by the CEO are financially achievable. Such objectives can be anything from expanding the company to other countries by setting up branches and sister firms, to whether the company can afford to buy up smaller companies. The finance function also generally sets out budgets for the other departments early in the financial year and it insists on the other functions to stick to them. The financial function wants pricing to cover the organization’s costs and contribute towards its profits (Brassington & Pettitt 2007: 17-18). The financial sector must abide to corporate responsibility and ethical obligations when recording the firm’s financial health in regards to the financial reports given out to investors and the public in the end of the fiscal year. Being ethical and fair in its reporting standards is not only required by the law but it would make the organization look much more appealing to potential investors.

2.1.2 Human Resource Management:

This sector primarily deals with the management of an organization’s employees. It tries to use the human resources available in the most effective way in order to enhance the organizational performance. HRM deals with areas such as the recruitment, selection, training, and development of employees along with overseeing how employees are involved in decision making in a company and establishing reward systems to compensate them (Boddy 2005: 338-339) . These types of decisions are crucial to developing high job performance and innovation in the workplace. Corporate Social Responsibility must be set as a requirement in this department. Retaining employees and keeping them happy in the workplace boosts the image of the firm and makes it look much more attractive to potential applicants. Having thorough standards on Corporate Social Responsibility can only benefit the company here. Potential recruits often tend to inquire about a company's CSR policy during their interview and having a comprehensive policy can give an advantage from competitors (Wikipedia/CSR 2008).

2.1.3 Production:

The production element of the firm is where the products are finally made and eventually sold (Brassington & Pettitt 2007: 18). This area needs to deal with a lot of customized products since every buyer of CRM software will want something that is unique to their specifications and needs. The production function must not compromise quality of the product when having to meet customized needs. If all products are made with the exact requirements of the buyers