J&J company

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Assignment of 7thWeek 1

Assignment of 7thWeek

J&J Electrical Contractor, Inc

BUS 59 B!siness Strateg"

Bishn! #hamala

$$%$%$15

S!mitte' to( Prof. Raj K. Sharma



Assignment of 7thWeek $

Introduction

As from the case, the com)an" name' J&J Contractors case is consi'ere' as one of the

small regional famil" !siness% It has fo!n' that a *a" to com)etes from the igger an' m!ch

more com)rehensi+e electrical contracts *ithin its in'!str"% o* recentl" the organi-ation is

o)erate' " the h!san' an' the *ife%

.he case tries to 'escrie the electrical contracting in'!str"% .he case *ill tr" to challenge

st!'ents to integrate in'!str" as *ell as com)etiti+e '"namics *ith reg!lating an' on the other

han' market 'eman' to )lot some *orth" s!itale o)tion to hel) or assists re+i+e JJ/s flagging

)rofitailit"%

.he J&J is one of the organi-ations *hich is r!n " the h!san' an' *ife, an' consi'er

as the electrical contracting firm as *ell as 'e)en'ent on the general contractors for the *ork%

0ooking ao!t the market share, it has een ale to increase its market share as *ell as e)ansion

of the !siness% .he )rice foc!s of the com)an" is to satisf" the c!stomer *ants as )er their

re2!irement it is also one of the est reason to retain the cons!mers% 3rom the case, 'irectl" *e

can see that, the" *ere tr"ing to fin' o!t the est sol!tion for inc!rring the loss in the

organi-ation% 4ence, the organi-ation *as gi+en more em)hasis to*ar's maintaining the

c!stomer relationshi)% .he com)etition le+el is +er" high as other com)etitors )ro+i'ing same

le+el of ser+ice to c!stomer at lo*er costs%

ecentl" the )rofit of the organi-ation is 'ecreasing 'es)ite an increase in the +ol!me of

sales *hich *as the res!lt of increasing com)etition% 6ost of other com)etitors are *ell kno*

regar'ing to maintain the c!stomer relationshi)%




Synopsis

ormall", the com)an" co!l' i' in t*o t")es of *ork regar'ing the )ro8ect *hich *ere

)ri+ate as *ell as )!lic )ro8ect% All the com)an" foc!se' more to satisf" the c!stomer

satisfaction *hich is consi'ere' as the )!lic )ro8ect% ormall", !n'er the )!lic )ro8ect, the

relationshi) *ith the stakehol'er 'i'n/t consi'er *hereas in the )ri+ate )ro8ect, there is high

le+el of em)hasis is gi+en to the stakehol'er as *ell as )a"ment *as 'one% In the reg!lations in

the )ri+ate )ro8ect, there *as not an" t")e of com)!lsor" for the contracting organi-ation

eca!se s!ch t")e of the )ro8ect attracti+e in terms of the )rofit%

Core issues

3rom the case, the com)an" name' J&J Contractors, Inc *as o*ne' as *ell as o)erate'

" the team of h!san' an' *ife, name' John & Jean Aernath"% ormall" the com)an" *o!l'

like to )erform the resi'ential, in'!strial as *ell as )!lic electrical contracting *ork% With the

three electricians it *as ale to gro*n s!ccessf!ll" almost into em)lo"ees of 5 " the month of

6a" $:, from that time; it *as ale to increase its market share 'a" " the 'a"% Whene+er

looking ao!t the financial transaction, it *as ale to get re+en!e *ith 75 )ercent of gro*th in

the "ear of $1, increase' from < $%9= million to < 5%$$ million%

.ho!gh ha+ing s!ch t")e of gro*th, from last "ears, the income ha' 'ecline'

'ramaticall"% .he 'ecision relate' regar'ing the f!t!re 'irection an' short term 'ecision

regar'ing the increase in the efficienc" of firm *ere to make " the h!san' an' *ife, John &

Jean% As e+er" )eo)le ha+e o*n +ision an' mission, like*ise that, the" oth h!san' an' *ife

ha' 'ifferent t")es of +ision that J&J *o!l' )!rs!e as *ell as fa+ore' greater economic gro*th,

*hereas Jean fa+ore' controlle' gro*th *ith an em)hasis on increase the market share an'

increase the gro*th thro!gh im)ro+ing the sales an' margins%




Diagnosis

> #ifferent t")es of +ision> 3rom financiall", there is a stage of 'eclining net income> .he commercial as *ell as the in'!strial constr!ction ha' )ossiilit" to 'ecline '!e to the

recession in earl" stage of life $> #!e to increase the cost of factors of )ro'!ction also lea's to increase in the )ro'!ction

costs> #iffic!lt to f!lfill the greater 'eman' of market

Analysis and Evaluation

En+ironment

.he organi-ation r!n in the en+ironment makes )rofit from the en+ironment as *ell as

s!stain in the same en+ironment% It has h!ge n!mer of ig )la"ers as *ell as *as of 'oing

'i+ersifie' their *ork% .here *as also seen fierce com)etition in the local en+ironment% 6ost of

the times, organi-ation 'i' not com)ete *ith the ig )la"er in the com)etiti+e en+ironment%

SW?. Anal"sis

Strength

> .here is strong relationshi) *ithin the )ri+ate sector > .he re)!tation regar'ing integrit", res)onsiilit" as *ell as reliailit" *as so strong> .he gro*th in the re+en!e> @ossile to lea's the e)erience c!r+e

Weakness

> 0ess chances to e)ansion of !siness into 'ifferent market> 0ack of com)etiti+e en+ironment in the )ri+ate sector > ormall", the )ro8ect of )!lic to )ri+ate ha' high )ercentage of ratio

> .here is lo* +oltage, scarcit" regar'ing the energ"

?))ort!nities

> 3irst one is to e a general contractor > 4igh )ossiilit" to e)an' the !siness geogra)hicall"

.hreats



Assignment of 7thWeek 5

> .here is lo* le+el of s!))l"> .he )rice of factor of )ro'!ction like ra* material ha' increase 'ramaticall"> .here is lo* le+el of arriers to entr" into the in'!str"

Statement of the prolem

.he main )rolem on the case is 'ecreasing the sales of the organi-ation% Another is the

*a" to increase in the f!t!re as *ell as the *a" to 'ecrease their o)eration costs% 0ooking ao!t

the case there are 'ilemma *hether to e)an' the !siness or go for the controlle' gro*th% #!e

to com)etiti+e en+ironment, the" also *ere facing high le+el of com)etition from the igger or

h!ge organi-ation%

Recommendation and Conclusion

In or'er to e lea'er in the in'!str", com)an" name' J&J Com)an" sho!l' increase the

!siness as *ell as sho!l' increase the market share% .o ca)t!re the market share, it sho!l' e

lo"al to*ar's its c!stomer% It sho!l' tr" to make ne* )artner as *ell as sho!l' tr" to make

strategic alliances *ith telecomnet*ork s"stems as *ell as the alternati+e energ" )o*er so!rces%

.o increase the efficienc", the em)lo"ee of the organi-ation sho!l' e traine' efore gi+ing the

a!thorit" as *ell as the res)onsiilit"% In the $1th cent!r", not onl" gi+ing to its em)lo"ee is not



Assignment of 7thWeek :

eno!gh to ca)t!re the market as *ell as e)ansion of the market, so it sho!l' e !)'ate' *ith the

latest technolog"% .he organi-ation c!lt!re as *ell as organi-ation str!ct!re sho!l' e im)ro+e'

to increase the efficienc"%

As earlier 'isc!sse', it has strong economic relationshi) *ith )ri+ate sector *hich hel)e'

to increase its re+en!e as *ell as also hel)e' to increase the market share% It ha' har' *orking

staff in the organi-ation% J&J is s!ccessf!l to ahea' in the e)erience c!r+e '!e to o!tstan'ing

ser+ice as *ell as the lo"alt" to*ar's the c!stomer% If the same thing ha))ene' then 'efinitel", it

*ill e ha+e more chances regar'ing staili-e the 'eclining )rofitailit"%

eferences(

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