SWOT analysis

Hi

This is what I have for the preseen SWOT. Does anybody have any comments/additions?


SWOT Analysis

Strengths
• Many projects around the world
• Good market reputation for quality, safety and projects being on time
• Uses Project management system to control projects
• Measures Health & Safety vs Key external Indicators. Lowest rate of safety issues of top companies
• Exceeded targets for recycling materials in 2010
• Restructured company to become more competitive
• Uses latest technology on projects
Weakness
• Relies on contractors for work to be done
• Not successful in all bids. Implies others have lower costs
• Bid tendering process not 100% above board
• Operating in competitive market
• Exposed to currency movements
Opportunities
• Roads bill in USA renegotiated. More potential business
• Sports Stadia- experience from 2012 olympics. 2018 world cup in Russia
• Increasing order book -30% more in 2010 than 2009
• Centralised purchasing – opportunity for economies of scale
Threats
• Low profit margins
• OFT investigation of tender for hospital. Admitted possible wrong doing- contingent liability in accounts
• European governments cutting public sector projects. Bidding becoming more competitive.

Congratulations on Breaking the ICE!!!
I will add couple of points!
Your examiner prefers SWOT analysis, you should develop a SWOT analysis in your exam.
This is from the PEG, May 2010

I recommend you to have approximately 5 points per each quadrant in your SWOT, it should be a combination of pre seen and unseen.
You should relate each unseen issue to two quadrants if possible (or many quadrants). We find the best example in May 2010 Cee Cee case.

Following is from the PEG.

"The SWOT should have included the opportunity offered by franchising shops in Asia but also that this presented threats, in particular the potential loss of control and the lower profitability offered by the franchised shops compared with those owned by CeeCee."

You can see how the opportunity creates a threat! Candidate needs to identify this in order to gain high marks for SWOT, normally you get 3 marks under application for the SWOT, and an easy 1 mark for Technical! SO all together 4 marks!
I will discuss more! Please have your suggestions here!

Hi all !
This is my SWOT analysis ( NOTE- AT THE EXAM SWOT analysis ,following should be briefed in the Appendix 1 and made appropriate applications within the prioritization and discussion sections of issues to earn more marks with reasonable justification in short. How ever ,un seen may produce new environment. There fore following pre seen SWOT are subject to change to cope up with the new situation and should be updated with the new information with unseen )

Strengths

1.Hard won reputation for quality and safety

2 On time delivery of the projects( this is mentioned stand alone and causes the reputation above mentioned))

3 Risk diversification with having 6 different types of business divisions ( seems good but in the overall economic down turn climate this strength doesn't give much contribution to protect the margin and new contract winning opportunities. So this might give an indication to restructure its geographical operations in order to maximize overall contribution
especially, if the economic down turn lasts for longer in future than forecast.)

4 Board commitment to the CSR initiatives, hence wider stakeholder groups are satisfied with minimal negative feed back to business operations of BZCS

5 Effective BZPM project management system in place. so it generates various reports on a timely basis for Project mangers ,post completion managers and finance department to carry out respective duties efficiently.( how ever there could be potential threat to the the present smooth function of the BZPM from a viras attack- as mentioned in threat below)

6 Having necessary industrial expertise in handling various types of projects including 6 divisions( this is questionable because all similar world wide construction companies have the similar expertise and make the market competitive. In this regard, can the current expertise and the business model to differentiate the BZCS it self as differentiator or cost leader? There fore, the given strength of expertise may just help to survive only in the market in the short run and may not boost the future sustainability to stay ahead in the competition as expected.

7.Increase in the order book value by 30% from previous year, even in the adverse economic climate.
8. Reduced annual accident frequency rate which is the lowest rate globally.
9.Promoting positive safe working culture

10.Providing adequate staff training ( An issue might arise with reduction in the training given to employees which is lower than the 20000 persons days,could lead to deteriorate in the sound lowest accident rate as mentioned above resultant with the negative impact on the reputation,)

11.Having wider range of waste management contractors.( however same contractors could serve to other competitive construction companies there by feel of the strength may be relatively low.)

12.New structure of the company with centralized procurement department makes BZCS flexible and achieve significant cost savings in the time of economic down turn.(Although there can be few HR issues due to the sudden change of the procurement structure in short term,)

13.Sound cash reserves and ability to raise funds from parent company at comparatively lower interest rates..( there fore BZCS may not find difficult to funds its projects. so they could already manage to repay its loan to parent as well)

14 Maintaining a efficient and effective suppler chain including the sister companies related to the same industry.There by indirect economies of scales,collaborative marketing partnership, guaranteed contract opportunities are achieved, if the parent attracts new businesses.

15.Seem to have a good performance management system concerning the broader non financial indicators.(although this could reflect the non financial aspects, clear indication has not been given in the pre seen about the measurement system for financial aspects and whether the salaries and bonus reflects the performance of employees in tact. so this might be a possible issue in the un seen )

16. European governments already prefer BZCS for infrastructure and community projects( need to be alert, in un seen may comprise of opportunities in Europe. So we can link this strength to exploit similar opportunities )

Weaknesses

1 BZCS is not successful in winning bids( How ever this might be mitigated with the new structure of BZCS having separate bidding managers and sales and marketing managers to liaise with the clients) so need to see unseen....

2.Proper legal department does not seem to be in place.( a company like this in the construction, increaseS the risk inherent within many contracts. So unseen may arise with the legal issues that require a legal expertise to deal with many legal complexities. Need to be alert...)
3.85% of revenues come from Europe and the U.S, both markets are in decline. (this again gives emphasis to find new growing locations like middle east and china)


Threats

1.Larger customers are imposing increasingly strict criteria for construction companies to follow.(so this could make BZCS to follow a cautious approach)

2 Risk of legal implication and a fine from the OFT regarding the ongoing investigation.( If the company found guilty ,negative feed back and publicity would detrimentally affect the hard won reputation as mentioned in Strength quadrant.)

3 European governments cuts budgets on public project.( this could adversely affect whole group since most PFI projects provide opportunities to earn well for a longer period in ongoing maintenance and project management. So this could collapse significant potion of revenue of BZBSS. Thereby .ultimately, same share holders get affected.SO this provide basis to have related issues and we might need to submit suitable strategies to over come at exam)

5.Risk of lasting bad economic climate for longer period in future

6.Inflation in the materials ,logistic problems ,Technological changes ,hostile bids ,legal trials,cooperate governance problems, Cultural risk,currency risk, changes in government regulations,political instability of client countries would be hot issues in the Unseen.


Opportunities

1. Secured construction project for London Olympic games( ability to deliver the project specification on time for a massive project like will open flood gates to BZCS to win more bids in future)

2.Growth in the chines and middle east construction market would provide new opportunities to expand BZCS business geographically.( this could be a essential strategy for long term sustainability if the economic down turn continues)

3 Existing economic downturn may reduce competitors.

4.Potential fair competitive bidding policy which is going to be formed by OFI ( this will secure fair competition and BZCS tend to win more projects using its strength of reputation.)


welcome comments on my thougts!

Pradeep -Wisdom Business Acadamy

BZCS Case Study SWOT analysis

Strengths
1)Compnaies profits have incased despite a decline in the industry
2)Many contruction projects around the world in different indusries
3)Good reputation for Quality & Safety
4)Ability to deliver projects on time
5)Sound cash flow with declining interest expenses
6)Good accounting system with all indirect expenses are allocated using ABC.
7)use of Project Management software
8)PM is fully resposinble for the project
9)WAste mangment is successully handled
10)Comapny has benig the preffered supplier
11)Centralised procurement
12)Lot of cSR intiatives




Weaknesses
1)BZCS cannot detremine onthe levelof bid for PFI projects
2)Solely relying on BEEZED for financing
3)HEavy concentration on Europe & USA for revenue (83.58% of tpotal revenue)
4)48% of the profits are from Infrastruture projets division it is with the hghest margin
5)10projects are due to be completed in 2011 & 4 more in 2012.
6)Sub contracting of more work


Opportunities
1)Volume of construction will rise in 2011
2)Start bidding for construction in Asia- Especially China
3)Adherence to health & safety legilation & going beyond that
4)Bidding for private contracts
5)Possibility of supplying to other construction ciompanies through the centralised procurement division




Threats
1) Many companies operate through out the world
2) Most are expertise in specific projects
3)Energy projects are the lowest contributor for the bottomline
4)Large customers are imposing strict criterias
5)Possible fining by OFT on Bid rigging process
6)Many goverments in europe have cut down their expnses