The Needs and Requirements of Big Building Constructions - Case Study Example

Follow Up Memorandum: Business Closure Name Course Name and Code Date In the last 20 years, Big Building Constructions (BBC) has been present in numerous building sites in most major cities around the country. BBC is a prominent player through contributing and providing numerous services based on the requirements of the contractors and clients. When BBC opened 20 years ago, there were only three employees, and currently, there are more than 150 employees addressing the requirements of more than 2000 trades. The growth is attributed to the strategic directions and experiences of the employees. You, as the employees have supported and guided the business throughout and ensure the goals and aims are achieved. In addition, the employees have witnessed numerous challenges and benefits throughout the development period. BBC management has continued to provide resources and environment to advance the requirements of the company, and fulfil the motivational needs of the employers. Generally, the relationship can be seen as symbiotic in that the management addresses the needs of the employees while the employees accomplish the needs and requirements of BBC. The business has grown, and the growth has reflected positively on the revenue generation and the larger impact on the society and economy. Throughout the major cities, BBC has provided products and services to complete the requirements of the building sites (Zeithaml, Bitner and Gremler, 2010). The customisation of the services and products has been possible through the support from the employees (Giovannetti, Ricchiuti and Velucchi, 2011). The experiences and techniques of the employees have guided the business on the appropriate strategies and allocation of resources to address the requirements of the business/clients. Generally, in the last 20 years, the employees have contributed to the numerous successes of the business. Without the employees, the revenues generated, and the existence of the business would not be possible (Ong et al. 2011). Therefore, BBC is grateful and appreciates the continuous support from employees to advance the requirements of the business. These numerous successes would not have been possible without the contribution of you, the employees. Each of you has contributed your diverse skills differently but through teamwork towards achieving the goals and objectives of BBC (Zeithaml, Bitner and Gremler, 2010). However, changes and competition are inherent in any business. The building and construction environment is very competitive because of the advancement of technology and the changing needs and requirements of consumers/clients. The economic changes also affect the entire business operation because it manipulates and keeps adjusting the interests and other monetary policies that have a wider impact on BBC operations (Giovannetti, Ricchiuti and Velucchi, 2011). Therefore, numerous components from the competitive perspective have influenced the way BBC operates and the challenges BBC has to address. BBC has continued strategizing against these challenges it is among the numerous reasons why the business has continued to operate effectively for the last twenty years. In the last two years, heavy investment in areas that were initially seen as too risky because the risks were too high paced. The developer(s) of these risky areas realised taking risks is one of the strategies that may result in more profits within the shortest time possible. Taking risks is also another important strategic approach to advance the requirements of the business. However, taking risks should be premised on a strong footing and understanding the business dynamics (Zeithaml, Bitner and Gremler, 2010). The revenues that other businesses generated from investing in risk businesses and environments were tempting, and BBC was analysing the situation. BBC did numerous technical and market research to determine whether the business would operate in future in risky investments (Giovannetti, Ricchiuti and Velucchi, 2011). The studies and research were ongoing when the financial and economic situation changed across the world. Within the same period, the Global Financial Crisis occurred, and the business was not doing well. The GFC brought numerous challenges in fulfilling the objectives and aims of BBC (Zeithaml, Bitner and Gremler, 2010). The requests from the customers decreased while the needs of the clients also changed in terms of quality and quantity. To worsen the situation, BBC had financial and other creditors’ obligations, which were maturing. The management decided to employ a different strategy in ensuring the obligations and requirements are addressed and fulfilled accordingly. The management of BBC decided to explore and venture in high-risk ventures to make up for the losses in the recent years (Giovannetti, Ricchiuti and Velucchi, 2011). The decision was premised on the positive returns from competitors. The general successes in the last 20 years were attributed to positioning BBC in areas that were less risk, and the management had extensive experiences in such areas. The high-risk investment was the only right strategy to addressing the diminishing capacity of BBC (Kristal, Huang and Roth, 2010). The management knew that if BBC succeeded in the risky business environment, the revenues would be generated resulting in the accomplishment of different obligations. Thus, BBC decided to invest in numerous high-risk ventures. However, in the last six months, three of the high-risk projects have gone bad. BBC has managed to wrinkle through, but the future is not viable. Today in the morning, I received the worst news; two more high-risk projects are about to go bad. Based on the preview of the business operations in the last few months, numerous shortcomings and approaches were identified as reasons contributing to worsening of the business environment. Some of the problems were associated with technical requirements and specific human capacity required (Giovannetti, Ricchiuti and Velucchi, 2011). Furthermore, the strategic direction was inappropriate contributing to the huge losses. The management takes the responsibility of the failure of these numerous projects, and the failure has affected the financial position of the business (Zeithaml, Bitner and Gremler, 2010). Finances are important to the success of the business but the absence of success projects results in numerous financial crises. Based on the financial situation, the business will not be able to pay the wages within the next four weeks and the possibility of business recovery absent. The review of the financial situation is difficult and also communicating the business situation is painful (Zeithaml, Bitner and Gremler, 2010). I have the lead and managed the business for the last twenty years and did not know that a day would come that I will present such news. It is really painful and difficult to me as an individual and as a leader/manager in the company. Based on the analyses, it is evident that the business will not be able to foot your wages and salaries in the next four weeks. Effectively, BBC is broke and within the next few weeks, the business will become insolvent. The solution to these numerous problems is winding the business, but the management will be meeting to analyse the situation from a wider angle (Giovannetti, Ricchiuti and Velucchi, 2011). However, since you are the important asset to the business, the management had to inform on the business condition before taking the next step. The entirety of the news is weakening and depressing; please, understand the situation and circumstances. Therefore, I will be engaging the administrators within the next 24 hours to commence proceeding to wind up the business. Alternatives to address the financial situation does not exist because the management has reviewed numerous strategies including looking for an investor and seeking additional funds from financial situations, which have all failed (Ucbasaran et al., 2010). The investors and financial institution need a strong strategic approach to advance the requirements of the business, but the BBC management are unable to come up with new strategy/strategies to obtain the funds (Giovannetti, Ricchiuti and Velucchi, 2011). The current solution is to wind up the business based on the regulatory and legal requirements (Kristal, Huang and Roth, 2010). However, you are requested, if possible, to present a solution or a direction within the next 20 hours because a meeting will be held with other managers to start the winding process. In a nutshell, the business is not viable and will be bankrupt within the next four weeks because the business will not manage financial obligations for both the employees and the clients (contractors). I have decided to inform you before you hear the situation from other sources, and the management will be meeting within the next 24 hours to start the winding process. However, your views and perspectives will be appreciated if presented within the next 20 hours on the way forward or personal view of the situation. I take the responsibility of the failure of the business because of poor strategic direction to counter the financial challenges and competitive environment situation. References Giovannetti, G., Ricchiuti, G. and Velucchi, M., 2011. Size, innovation and internationalization: a survival analysis of Italian firms. Applied Economics, 43(12), pp. 1511-1520. Kristal, M.M., Huang, X. and Roth, A.V., 2010. The effect of an ambidextrous supply chain strategy on combinative competitive capabilities and business performance. Journal of Operations Management, 28(5), pp. 415-429. Ong, S.W., Choong Yap, V. and Khong, R.W., 2011. Corporate failure prediction: a study of public listed companies in Malaysia. Managerial Finance, 37(6), pp. 553-564. Ucbasaran, D., Shepherd, D.A., Lockett, A. and Lyon, S.J., 2013. Life after business failure the process and consequences of business failure for entrepreneurs. Journal of Management, 39(1), pp. 163-202. Ucbasaran, D., Westhead, P., Wright, M. and Flores, M., 2010. The nature of entrepreneurial experience, business failure and comparative optimism. Journal of Business Venturing, 25(6), pp. 541-555. Zeithaml, V.A., Bitner, M.J. and Gremler, D.D., 2010. Services marketing strategy. 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