Strategic Business Analysis - Clear View Ltd - Assignment Example

A strategy for Clear View Limited Name: Tutor: Institution: Date: A strategy for Clear View Limited Introduction Clear view Ltd manufactures is a business organization that undertakes its activities in fitting double glazed windows and building conservatories. The current owner Mr. Joe has never developed a mission or a vision statement for his company. He also has got no management background but has been successful in the business thus far. Happily, Joe tiredness with the business management has taken a toll on him and intends to transfer the management to his two children Jane and Ben. In a strange inadvertence, Jane has a degree in management and Ben has also graduated with a degree in Environment and technology degree. The two children also get along together and have the aspirations of expanding the business to the next level. Against this backdrop, this essay analyses the possible activities that the two children can adopt to realize their dream of expanding the business. The first part elucidates the appropriate mission and vision statements that would be germane to the Company operations. The external and internal audit of the business environment then follows. Thirdly, the analysis and selection options are described followed by the management and monitoring strategies that Clear view manufactures can adopt. Finally, a conclusion regarding the entire process is offered. Mission Clear view manufacturers partake in the business of fitting double glazed window services and conservatories works. The company mission is to provide a total and a complete array of more fitting and repair of double glazed window services with unmatched quality. The company uses experienced staff and equipment in providing its services to clients. Clear view also promises to seek a cost effective way to double glazed window fitting activities to all its clients. Vision The vision of the company is to incorporate advanced state of the art technologies in offering window fitting services and produce quality work. Six years hence, the Clear view manufacturers will expand and become the leading company in window fitting services as well as production of other quality conservatory products across the Bloggstown and the neighboring cities. External Audit Opportunities In performing the external audit for Clear view manufacturers, a lot of opportunities are revealed that the business can grasp. For starters, the demand for window fitting and allied services and products are still in excellent demand all over Bloggstown. The company will utilize its resources to expand the services and produce more window products. The income of the people around Bloggstown is average. This is an intimation that the company will get value for the services and products offered. The exceptional transport links within the town will also aid in the facilitation of the business activities. Consequently, Clear view manufacturers will be able to expand its business operations across Bloggstown and beyond with ease. Production of goods and delivery of services will also be hastened thus improving the image of the business in the town. Communication processes within Bloggstown is enhanced. The Company will exploit the available communication networks to aid in disseminating the company products and services. Communication is crucial in the development of any business organization. Clear view Manufactures name is already an institution around Bloggstown. The Company will take advantage of this fact to compete with the other business in the identical line. This will also help the company to produce more unrivalled services and products to clients around Bloggstown and the neighboring towns. The customer loyalty that is already established will help the business in its expansion quest. The government taxations on window materials are favorable. The company will thus benefit from investing more in these activities as taxation issues will not impact on the business negatively. There are also available workers in the glass fitting industry that the company can incorporate to the existing staff at affordable wages. This will ensure that the business does not suffer too much operational costs. Besides, the Company will continue to use the services of the casual staff that are readily available in situations when workload will be excessive. Threats Competition The external audit of the Company environment has some considerable threats with the principal one being competition. Clear view manufacturer’s faces stiff competition from 7 other companies dealing in the same line of business operations. However, the biggest threat emanates from three companies with one registering a greater turnover than Clear view limited. The other two have the same turnover as clear view while the rest are smaller. This could be a tremendous challenge in that these companies may also opt to expand and even introduce price wars. Rented premises In its endeavuor to expand, the company will have to buy or rent business premises in other locations so as to bring the services and products closer to the clients. This will imply extra costs in the business operations. The cost of transportation services will also increase the business operational budget hence this will be a vital consideration during the expansion process. Technological and skills The other threat in the external business environment of Clear View manufactures is the technological and skill considerations. In a quickly evolving world of technology, the company will have to retrain some of the staff members in order to compete with rival companies. This will mean additional expenses in the management of the entity. The demand for modern equipment is also evident hence the organization will have to go for cost effective technologies. Internal audit Stable financial status The company current financial status bodes well for expansion considering that there are no debts bedeviling it. Seeking more capital from banks will not be difficult as the credit rating of the institution is much better than most of the competitors. Credit rating can also be used to attract funding from other financial organizations. Clear view can seek revenue from banks in Bloggstown and other financial institutions that could be of much assistance. The company pre-tax profit was £ 120,000. They also have £ 1 million in the reserves which can be utilized in the expansion process of the business. Accordingly, the company can seek to borrow £500,000 in the initial stages of expansion and monitor how the expansion proceeds. Competent workers In spite, the few number of workers the competency is unquestionable. The current workers will aid in training the new recruits to help in cutting the retraining costs of new staff with inadequate skills. In the event that additional skills will be necessary, only few relevant areas can be introduced as the current employees have the key skills needed in double glaze window fitting and conservatories techniques. The number of employees to be added will be 20 to help the current twelve employees who can be overburdened by work. Sound administration Clear view has not experienced any extreme management issue hence this a clear indication that there is harmony between the employees and the administration. Jane with a management degree can provide more valuable insights into the business management especially during this expansion period than his father did. Internal weakness Limited number of employees The main limitation with regards to the internal audit of clear view company is the number of employees that are inadequate. The company will have to absorb around 20 more employees in the initial phase of expansion so as to carry out its services appropriately. Dearth in machinery and skills The workers at Clear view have competent skills. However, technology is invariably evolving hence the workers skills will have to be upgraded. This will require additional capital to be in place. Objectives The first objective is to expand the Clear view manufactures activities to capture Bloggstown market and other neighbouring towns. Secondly, Clear View manufacturers plan introduce other services and products allied to window glass fitting and conservatories. Another objective is to recruit additional workers to help in the expansion programme of the business. The use Use modern inventions and innovations in the generation of window products as well as quality services is also an objective. Analysis and selection options Clear view manufacturer’s aspirations revolve around and improving its competitive advantage by utilizing the existing business opportunities. After the external and internal audit of the business environment, the gaps can be filled by the options described hereafter. Incorporation of service and product diversity Analysis of the business environment shows that Clear view needs to introduce more diversity to the products and services offered in order to compete with its adversaries. To this end, the business can introduce window cleaning, eye bolt installation, and safety latch way and general maintenance to augment the services currently provided. The organization can also undertake the distribution of retail and wholesale glass window products in Bloggstown and the neighbouring cities. Market expansion Clear view will expand first to cover the whole of Bloggstown. Subsequently, the expansion process will commence to the neighbouring towns if the returns will be promising. The organization should also consider cutting operational expenses. Clear view should first expand its activities around Bloggstown. This should take a round the first two years of the business expansion process. Thereafter, the expansion will continue to the nearby towns so as to cover a wider area. Skills and technology The business can invest in the state of art technologies. Modern skills to improve the efficacy of employees in delivering services should also be addressed. This will involve training employees in certain areas that are critical in service and product delivery. The business should also add additional workers to the current ones. The newly recruited employees will originate from the casual workers normally employed during peak times. This will be beneficial to the company as these cadres of workers already know how the organization operates. Capital input The firm can take advantage of its current credit rating with the Bank and other institutions offering financial aid to borrow £500,000 to help in the expansion process. This amount is adequate considering that the company has £ 1,000,000 in reserves. The business will expect to repay the loan in the next two years. Strategic alliances The enterprise should also consider forming strategic alliances to reduce expenses. Strategic alliances can be pivotal in the expansion process. The business can opt to form alliances with other companies dealing in similar businesses. This will be appropriate in the other towns bordering Bloggstown. This will obviate the need for the company to be physically present in every town and reduce expenses into the bargain. Through strategic alliances, the company can also distribute window products easily within Bloggstown and beyond. The business can also use franchising in the expansion process. Implementation The implementation process should involve a lucid delineated structure so that the objectives of the business are kept in check. The expansion programme should first be implemented in Bloggstown. This will enable the management to assess the outcome and predict changes that can take place. The first two years should be devoted to expanding the business in Bloggstown then if successful the expansion should proceed to the other towns. Jane and Ben should oversee the overall implementation process with the help of other experts as implementation is crucial in ensuring success or its lack thereof. Management The management of Clear View should be headed by Jane as the top officer owing to her sound management background followed by her brother Ben. They should appoint a general director or vice president who to coordinate all the operations of Clear view enterprises in Bloggstown and beyond. Such a person would be responsible for the entire financial activities of the firm. He should also be a person with experience in the line of conservatoire and window glaze fitting. The management should also ensure that workers needs are met to avoid conflicts in the organizations. The top management should also shepherd all the activities in other centres of the Company. Sound management is crucial in the management of any business organization. Clear View should use the best approaches in managing the business. Conflict issues surrounding shares and ownership should also be addressed amicably. Monitoring The objective of the monitoring process will be to get insight and maximize the results and reduce the risks of the business expansion process failing. Religious monitoring should be undertaken to see through the expansion process and lend a hand in the success of the process. The expansion process will be considered a success if the business will be achieving or going beyond the initial objectives. The monitoring process will include accurate reporting of stocks, completed works and other related data to the business. These data will be analyzed to reveal the true picture of the organization. Conclusion Clear view manufactures current status is stable and can be considered a success. The timing by Joe to hand over the ownership to his two children can be said to be anything but inopportune. Firstly, Jane has a management degree that can improve the business operations substantially since their father lacked management skills but was successful. Ben is also knowledgeable and can be valuable to the management team. Even though expansion is a challenging process, with the business present financial status the expansion process is possible with monumental prospects. Jane and Ben can adopt the above procedures and with a strong monitoring process there is no doubt the expansion process will be fruitful. The two children should proceed with the expansion plan and expand the business as the potential is promising. Read More