Takeover and Strategy Proposal

Takeover and Strategy ProposalThe following strategy and takeover proposal examines the contracting category of Masters Building Company Limited. The proposal undertakes a SWOT analysis, used as the foundation for strategy in trade, ingredient structure, and teamwork. Each ara of uphold is examined based on what has previously occurred, what is proposed to occur, and what the expected outcomes are. The strategic initiatives seek to prompt Masters Building Company Limited into a recent era of kind marketing, decentralised managerial structure, and strong employee morale.The firms strengths are that it has a strong consumer base with a positive history and social status. This is assumed from the want tradition of the firm in its operative area. The firm has very low debt and is profitable. There is some growth in the contracting division.The firms flunkes are the lack of new client contracts, the recent decision to open new offices requiring overdrafts for the new offices of t he contracting division. The contracting division also has low employee moral. A nonher weakness is that there is little work in the Exerter area and low complexity of projects.The firm has opportunities in altering its managerial and team structures to create stronger employee moral. It has opportunities in creating more(prenominal) complex projects through regional marketing of the new offices.The firms external threats are the credit crisis and recession, addd pressure from creditors for early payment and delays in receiving stage payments. The firm can repress these threats by focusing in its strengths of tradition and customer relationships which can be implemented through stronger marketing strategies.The verbal expression exertion is highly competitive, and the ability of management to use marketing as a valuable service is imperative to gaining contracts (Shutt 1995). The focus of the takeover proposal is to bugger off more complex construction work for the betterment of the company. In doing so, the takeover proposal recognises that Masters has the potential to increase its commercial bids through a stronger marketing mix. Commercial bids are preferred due to their work complexity, which generates revenue and knowledge based experience for the firm (Finkel 1996). Furthermore, commercial bids are understood to have interracial uses and are often allocated by internal funds, thus they have minimal effects of interest rates and public policies (Finkel 1996). Since the scale of major construction projects is a barrier to small firms, it is imperative that Masters be placed under a strong examination of capital requirements in terms of current and indispensable tools and materials, as both time and money are required to create jobs in commercial markets (Shutt 1995). Specialty contract work in commercial industry is the focus as this allows for small to medium sized businesses such as Masters to enter the market, generating stronger income (Canter 1994). The focus will be on small, complex projects in renovation and alteration.The takeover proposal is to include the past customers with new potential in a stronger marketing strategy as the firm moves towards the development of new offices it will require more marketing resources in Plymouth, Bristol and Bournemout. The takeover proposal must include a strategic business outline as hear 1 Marketing StrategyThe current structure is very linear and hierarchical. While this has worked in the traditional construction industry, it bars open communication. It is recommended that the structure be evaluated and redistributed to increase communication between areas of the contracting division. This is imperative as the firm is expanding to add new estimators and managers. The takeover proposal is not to remove abrupt Burton, but to readdress his position as an authoritarian manager into one of quality leadership that allows for stronger determination of the firms detection of, allocati on of, and income from, the contracting division. Deficiencies in structure occur when there are low knowledge flows, which constrict planning techniques and lessen control of the contractual position (Finkel 1996).Figure 2 coordinate StrategyUnder Frank Burtons traditional authoritarian management, the contracting division has low morale. Change management is required to rejuvenate the team. The contracting division has multiple intricacies that are dependent on the ability of management to integrate capabilities (Shutt 1995). The contracting division has a discontinuous business environment due to blase bidding and allocation concerns, creating less efficient workloads (Shutt 1995). Establishing measures for efficiency is imperative to increase productivity, variables in round periods, job roles, training incentives, and operations should be set to overcome staffing issues (Shut 1995).Figure 3 Team StrategyThe impact of previous changes in the structure of the contracting and s pecialist service divisions have lead to a troika reduction in crash costs as staffing levels have been reduced, however turnover has increased. The contracting division has a turnover of 4,377,000 with overheads at 9.5% and profits at 2.1%. Thus, net profits are only 91,917, while overhead is 415,815, which shows a negative cost efficiency strategy. Overhead costs are higher in Bristol and Bournemouth, where net profit is also lower, and that regional office has a smaller staff. This is probably due to the increased debt of the Bristol and Bournemouth locations.The common economic pathway for trim down overhead costs is not always to strategically move staff and relocate management or offices in new regions. This may lead to a glowering economy, since overhead costs were not lowered, just moved. Therefore, the takeover must consider strong evaluation of Masters complete economic position for the sake of reducing the high overhead costs. Market economic show that overhead cost reduction is found in low-cost production, availability of quality products and effective grant chain management (Rockley 1984). Cost concerns require a more efficient use of temporary and low-complexity work, and examining the markets in the regional offices to evaluate their cost effectiveness (Rockley 1984 Shutt 1994). It is not clear if the move to the regions such as Bristol was cost effective, however it is assumed that this was not an efficient move since it has higher overhead and lower profits (Rockley 1984). Therefore, it is likely that these regional offices are simply geographically out of place for the construction market (Shutt 1994). Furthermore, the construction industry itself is highly labour intensive, therefore it stands to reason that staff turnover and quality control as well as the product supply chain must be streamlined to lower costs and increase profitability (Shutt 1994).Activity nameProject LeaderEstimated startEstimated finishMarket compendium of Serv ice DifferentiationLen4-Jan-094-Mar-09Market Analysis of Relationship solicitudeLen20-Jan-0921-Feb-09Market Analysis of Marketing MixLen6-Feb-0916-Apr-09Restructuring from Hierarchical to DecentralisedGordon and Frank24-Feb-0925-Apr-09Communication Pathways Open Door PolicyGordon and Frank8-Mar-0918-Mar-09Communication Pathways Between regional OfficesGordon and Frank19-Mar-0929-Apr-09Examination of Job RolesGordon and Frank10-Apr-0920-Apr-09Examination of TrainingGordon and Frank10-Apr-0922-Jun-09Examination of Employee ResourcesGordon and Frank18-Apr-0930-Aug-09Supply and Production AnalysisSammy30-Jun-0930-Aug-09Quality and Effectiveness AnalysisFrank30-Aug-0921-Jul-09Regional Market AnalysisFrank14-Jun-0912-Aug-09Figure 4 MilestonesCanter M.R. (1994) Resource Management for Construction, London MacmillanFinkel, Gregory (1996) Economics For Construction Industry. London M.E. SharpeRockley L.E. (1984) finance for the Non-Accountant, USA Business BooksShutt R.C. (1995) Economics f or the Construction Industry, London Longman