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Transcript of Cuthbert - Business Analysis Project
7/31/2019 Cuthbert - Business Analysis Project
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CUTHBERT
CHINJI JNR
207014329
2010 ©
A COMPREHENSIVE CASE STUDY
FOR
ZENGANI BUILDING PROJECTS
(22nd
April 2010)
INTEGRATING
BUSINESS PROCESSES AND ACTIVITIES
PREPARED BY
CUTHBERT CHINJI JNR
207014329
FOR
MRS F. MPOSULA
(BUSINESS ANALYSIS)
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za
CUTHBERT
CHINJI JNR
207014329
2010 ©
7/31/2019 Cuthbert - Business Analysis Project
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Page 2 of 10
Table of Contents
Page
1. Background...........................................................................................3
2. Vision.....................................................................................................3
3. Mission ..................................................................................................3
4. Firm Analysis........................................................................................3
5. Types of organisational Activities.......................................................3
6. Life stages of the company..................................................................4
7. Porter five forces..................................................................................5
8. Swot analysis........................................................................................5
9. Factors that cause a firm to decline....................................................6
10. Successful organisations......................................................................7
11. Analytical process................................................................................7
12. Strategic choices at the top level........................................................8
13. The resource based perspective.........................................................9
14. Strategic Position and Action Evaluation (SPACE)........................9
15. References...........................................................................................10
CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za
7/31/2019 Cuthbert - Business Analysis Project
http://slidepdf.com/reader/full/cuthbert-business-analysis-project 3/10
Page 3 of 10
1. BACKGROUND
Zengani Building Projects (ZBP) is a small privately BEE owned company that
was conceived in July 2008. It is one of the few companies that has managed to
withstand the harsh realities of global economic recession which has forced many
small businesses out of the business. As the name suggests, we specialise in
waterproofing projects.
2. VISION
We aim to be one of leading construction companies around Gauteng in terms of
service delivery while empowering the society at hand through job creation.
3. MISSION
Our mission is to provide the best services to our clients at competitive prices
without exhausting the cash flow of our company.
4. FIRM ANALYSIS
In our case study, we have used Firm Analysis to evaluate and identify strategic
options available that we will implement to enhance and streamline our business
activities.
We identified that our clients need waterproofing related services such as building,
painting, renovations and plastering which are not currently supplied. We have
decided to offer such activities not currently supplied. This fits in our current
activities since we are already dealing with close related activities. This will not
only, satisfy our clients’ needs but also enable us to generate more revenue for
company growth.
Offering this new service will have a positive impact not only in terms of our cash
inflow but as well as increasing our market share since we will be offering a wide
range of services.
The company does not have enough operating capital to fund acquisitions of raw
materials as well as extra labour skills, and that poses a major challenge for us to
extend our services to clients. Having already projected a positive cash inflow as a
result of extending our services, we will raise funds through bank loans at
affordable rates.Offering of our new services to our clients is seen as growthCUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za
CUTHBERT
CHINJI JNR
207014329
2010 ©
7/31/2019 Cuthbert - Business Analysis Project
http://slidepdf.com/reader/full/cuthbert-business-analysis-project 4/10
Page 4 of 10
Manager
Salesperson Supervisor Accountant
General Workers General WorkersAgents Book Keeper
within our company which will need to be managed. Unfortunately our top
management is not well equipped with leadership skills due to previously held
positions. In the best interest of our staff members as well as for sake of the
company growth, our top management will constantly go on monthly basis for
workshops to acquire leadership and managerial skills.
5. TYPES OF ORGANSATIONAL ACTIVITIES
Innovation activities: We are predominantly charged with Sales and Marketing,
Product research and development. We are doing this through local newspapers,
sales agents, text messaging technology as well as through our newly launchedweb site. This has enabled us to reach new customers that are geographically
dispersed.
6. LIFE STAGES OF A COMPANY
Direction: Our Company’s power still resides in the hands of the top management
which are also the co-founder of the business. They take charge of the direction of
the company. Functional tasks such as production, distribution and marketing are
the responsibility of supervisors. The functional organisation structure of our
organisational structure can best be depicted with the following histogram.
Figure 1. Functional Organisational Structure of Zengani Building Projects.
CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za
7/31/2019 Cuthbert - Business Analysis Project
http://slidepdf.com/reader/full/cuthbert-business-analysis-project 5/10
Page 5 of 10
7. PORTER’S FIVE FORCES
i. The threat of new substitute Products:
ZBP being a newly formed company has not fully gained a market share for its
services. We therefore face threats from competitors that have been in the business
industry for decades with similar products and services. This is true especially
when customers do not incur switching costs between providers.
ii. The threat of new entrants:
The rate of South African young entrepreneurs is growing in the constructionindustry. This brings another threat to Zengani Building Projects as many young
entrepreneur enthusiasts are entering the construction industry with similar
services and product features.
iii. The power of buyers:
When buyers have information about the costs of production, they can negotiate
prices down and reduce our industry profitability. To avoid this, we will insure that
price acquisitions and costs of our resources are kept as confidential as possible.
iv. The power of suppliers:
This is high when there no substitutes for the supplied products. As a result of this,
such products can command high prices.
v. Rivalry among industry members:
Competition tends to be high when demand growing slowly or declining. This
causes greater rivalry when it is difficult to leave the industry due to costs incurred
or failure to sell off fixed assets.
8. SWOT ANALYIS
i. Strength:
The strength of our company lies in its distinctive and quality services it offers to
its clients at competitive prices. Any work performed is assessed to ensure that it
has met quality standards set by its top management. The launch of our new
website has not gone unnoticed – it has improved customer liaison and acquired
new customers on the go. Customers are able reached the company at their
convenience.
CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za
7/31/2019 Cuthbert - Business Analysis Project
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Page 6 of 10
ii. Weaknesses:
Despite the company’s strengths, it acknowledges the challenges that it currentlyfaces within the management. The top managing members that sit with
organisation’s power come from a diverse culture with little previous managerial
experience. This has made them difficult to secure many tenders.
Another concern is the presence of their website. Initially the website was
launched to enhance and integrate the business processes with its clients. The
website has so many flaws, first being static in nature which does not rely on user
input as opposed to modern dynamic websites that have captured the hearts of
many internet users. The website has very basic content that lacks an element of
marketing. This reduces its new potential customers.
iii. Opportunities:
The coming of soccer world cup has seen an economic boom in the construction
industry and we view this as an opportunity. We therefore intend to extend our
services on a wider platform to meet the growing needs of our clients.
iv. Threats:
The global economic meltdown poses the biggest threat by far in any industry and
our organisation is not exceptional to that. Customers’ spending power is reduced
and this slows down the economic growth of our business and we might eventually
find unbearable to meet our obligations and be forced out of the business.
9. FACTORS THAT CAUSE A FIRM TO DECLINE
Poor Management: The role of top management cannot be overlooked in the
success of any organisation and its failure equally is attributed to top management.
To curb this problem, our managers will undergo training to acquire necessaryskills from recognised institutions as well as attend workshops and seminars that
equip people with leadership skills and managerial skills.
Another approach is to have an open decentralised management leadership style
where staff members’ opinions in decision making would be valued. This creates a
free and open atmosphere between managers and staff members which in turn
promotes harmony in the organisation.
Lack marketing effort: Our marketing effort is constrained due to financial
hurdles. As a result, we do not have a strong client base. We have identified that by
CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za
7/31/2019 Cuthbert - Business Analysis Project
http://slidepdf.com/reader/full/cuthbert-business-analysis-project 7/10
Page 7 of 10
enhancing our website we could use it as our core marketing tool to reach new as
well existing customers.
10. SUCCESSFUL ORGANISATIONS
i. Strategic planning relationships:
These are relationships whereby the centre actively participates in strategy
development and implementation.
This does not necessary apply to ZBP since it is a single business unit. However, it
has partnered with SafeGuard as its core supplier for ZBP. This could see the twoorganisations develop long term perspectives and lead to business sharing ideas.
ii. Financial control relationships:
These relationships are defined on the basis of the main centre setting financial
targets and delegates strategy development to business units. This not only is
appropriate for urelatedly diversified corpaorations, but also helps motivate
managers to focus on short term performance and identify short-term weaknesses
in strategy.
iii. Strategic control planning:
These are intermediary relationships that lie between financial control relationships
and strategic planning relationships developed by the business units often
approved by the centre.
11. ANALYTICAL PROCESS
i. Preliminary Corporate analysis:
ZBP is a neatly structured and identifiable business that operates mostly aroundGauteng area, but also stretches its operations as far as Pretoria. It deals with
building, painting, renovations, and waterproofing of houses.
The organisation structure of Zengani is small. As a result communication between
the top management and staff members is quick and efficient.
The financial performance of ZBP is just above the average. However, it heavily
relies on a substantial upfront payment when a certain tender has been secured.CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 BridgetownAgulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za
7/31/2019 Cuthbert - Business Analysis Project
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Page 8 of 10
The suppliers as well as customers in conjunction with the employees are the
major stakeholders. Suppliers need to know our track credit record so that they
could be able to supply the organisation with resources on credit.
The customers need to know if they will get the best value for their money in
relation to the organisation’s services provided.
Similarly with employees as stakeholders, they would not work for a company that
has financial crisis.
Individual business analysis: ZBP generally consumers are those who own
houses including private institutions. Given its low cost of services/products
offered to its clients without compromising quality, this has made the consumers astheir number one priority.
The organisation as an independent entity has some setbacks – financially it cannot
fund or acquire big projects. However, given its size, it is easily manageable.
Summative Corporate analysis:
ZBP is heavily affected by the global economic down turn. The cost of raw
materials has substantially increased. To combat this phenomenon, we will acquire
resources in bucks during promotions to reduce costs.
Our management vision is to nurture the business so that it becomes a big empire
that will not only confine its operations to Gauteng Province but also to all South
African corridors.
12. STRATEGIC CHOICES AT THE TOP LEVELS
Business Disposal: Currently the organisation is in financial crisis. It does not
generate enough funds to meet its obligations. We are looking at selling the
business so that we can pay our out debts.
Business Acquisition: Another option that we had in mind is to extend our
services by offering related services as previously indicated.
Recommendation: In the interest of our clients and our society at large, we have
decided to look at other ways of raising money to meet our obligations. We will
sell out shares to the public at competitive prices instead of constantly borrowing
money from private institutions that charge us a lot of money.CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas RoadBloubosrand
Randburg 2188ww.zenganibp.co.z
a
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Page 9 of 10
13. THE RESOURCE-BASED PERSPECTIVES
Heterogeneity of resources across the firm: We use unique resources that are
uniform across its firms. Employees and company vehicles have emblems that bear
the company logo. This helps them to be easily identified across the industry as
well as to its our clients. It is also part of the marketing strategy since the company
contact details are embedded on the emblem.
The acquisition price of assets: We will keep at least a considerable amount of
operating capital to take advantage of buying goods in bucks as well as those
running on promotions so that we could make more profits.
14. SPACE:
The financial strength of the business: Our Company does not have financial
strength. We cannot meet most of clients’ needs. We will raise money by selling
out shares to the general public so that we can remain in the industry. We will also
merge with a more cash-rich business in some form of conglomerate or concentric
merger to increase our financial muscle.
The strength of the industry: We operate in some sought of high competitive
market that involve high cost of production. So there is a striking balance between
cost and profitability levels. To gain competitiveness in the market, we will be
acquiring resources in bucks and offer our services at competitive prices to retain
as well as reach customers.
Factors that determine the strength of the industry include:
i. Growth potential
ii. Profit potential
iii. Financial stability
iv. Technology know-how
The degree of environmental stability: We have already implemented an online
web site to reflect the current trend in business environment which is inclined to
using technology in conducting business. We are reaching new customers with low
costs incurred that are geographically dispersed.
Giving Solutions & Quality to Buildings
CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 Bridgetown
Agulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.z
a
7/31/2019 Cuthbert - Business Analysis Project
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Page 10 of 10
Factors that determine the degree of stability with the organisation compared to its
rivals include:
i) Technological changes
ii) Rate of inflation,
iii) Price range – competitive advantages
iv) Demand variability
The level of competitive advantage: We operate around Gauteng that has many
competitors. We are focusing on entering on the same market segment with new
services and by delivering high quality products and services at competitive prices.We believe this will give us some level of economic boom.
Factors that determine the level of competitive advantage of the business include:
i) Market share
ii) Product quality
iii) Customer loyalty
15. REFERENCES:
Williamson, D. (2004) ‘Strategic Management and Business Analysis’. UK:
Elsevier td..
Nelson, R . ( 1982) ‘ An Evolutionary Theory of Economic Change’ . Harvard
University.
Zengani Building Projects: ‘ Company Profile’ . www.zenganibp.co.za. Accessed:
20 th
April, 2010.
CUTHBERT
CHINJI JNR
207014329
2010 ©
Zengani Building Projects
Giving Solutions & Quality to Buildings
73 BridgetownAgulhas Road
Bloubosrand
Randburg 2188
ww.zenganibp.co.za