Employee Benefit Programs In The Information Technology Industry

1915 words - 8 pages

Individual Case Study

Develop a case study that analyzes the competitive position of a business organization in a technologically-oriented industry. This case study should demonstrate an understanding of competitive forces and principles applicable to competitive environments, including Sun Tzu’s “Art of War” axioms. The case study should be 5-7 pages in length.

“All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved. Sun Tzu

“Can you imagine what I would do if I could do all I can?” Sun Tzu

I work for Electronic Data Systems (EDS). "EDS is a global business and technology services company headquartered in Plano, Texas."

Hewlett-Packard Co. reached a deal with EDS to acquire the company for $13.9 billion . On August 26, 2008, the deal was sealed and EDS was renamed EDS, an HP Company.

After the normal paranoid questions were raised (possible layoffs, transfers, loss of pensions, etc.), everyone had questions about HP and Compaq computers. The first questions were, “What are we going to do with all of the Dell servers and computers? Are we going to get new HP workstations? And how can we get free computers, or at least reduced?

These questions got me to research Employee Computer Purchase Plans with several other companies.

Siemens AG is Europe's largest engineering conglomerate; it is one of the world’s largest communications, electronics and electrical engineering companies. Siemens' headquarters are located in Berlin and Munich, Germany. Siemens employs over 480,000 people in nearly 190 countries; their revenues were over 72.448 billion Euros in fiscal year 2007.

The company has three main business sectors. These sectors are:

• Industry

• Energy

• Healthcare

The business situation is that Siemens wanted to enhance the benefits package it offers to employees while increasing computing skills within the organization. The plan is called the Home Computing Initiative (HCI). Siemens saves 900,000 Pounds while boosting workplace skills through this initiative. “The demand far outstripped our expectations in the first round of the scheme. We expected 1,000 applications, but we got nearly 4,000, a 38% take-up from eligible employees at that time.” [www.fujitsu-siemens.co.uk/Resources/20/1027280194.pdf] recalled Ben Debnath, Head of Policies and Processes, Siemens.

Employer-provided Home Computing Initiatives (HCI) enables companies to loan computers to their employees as a tax-free benefit. In many cases, companies implement salary sacrifice arrangements where employees accept a reduction in gross salary in return for this benefit.

The benefits are numerous:

• Increases IT literacy

• Enhances employee benefit packages

• Attracts and retains staff

• Potentially reduces training costs

• Provides high-value desktop computers and laptops for employees

Employees without daily computer access...

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