Backhoe Loader Market-United Kingdom - 2750 Words

Buseness Strategy in Backhoe Loader Market-United Kingdom (Term Paper Sample) Content: JCB: BUSINESS STRATEGY IN BACKHOE LOADER MARKET-UNITED KINGDOMName:Institution:Executive SummaryThis report aims at analyzing the various strategic facets that JCB utilizes in the manufacture, distribution, and sale of construction machinery, specifically the backhoe loaders, within the UK market. It conducts an industrial analysis to determine the requirements and trends that contribute to the key success factors. For this to be delivered successfully, the report has dissected the company's current strategic position within the heavy equipment industry using the PESTEL, Porter's Five Forces, SWOT, Value chain, and the Porter's Three Generic Strategic analytical tools. The analysis showed that, with intense rivalry in the market and economic downturn effects, the current differentiation strategy employed by the company is redundant. Despite being helpful in acquiring a bigger market share, the firm can no longer use it to strengthen and maintain its competitive edge. This is because of the imitation from the competitors. The world is increasing becoming connected with modern technologies such as the Internet; hence, access to information about competitor's products is no longer a hindrance. Besides, there is the risk of changing customer tastes and preferences. For that reason, the company will have to adopt a cost leadership strategy that will ensure the introduction of new technology to embrace process innovation rather than the traditional product innovation. This will heavily cut down costs and increase profitability. Moreover, it will insulate the company against powerful buyers, whose tastes and preferences might change over time.Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc395640098 \h 2Introduction PAGEREF _Toc395640099 \h 42. External environmental analysis PAGEREF _Toc395640100 \h 42.1 PESTEL PAGEREF _Toc395640101 \h 42.1.1 Political aspect PAGEREF _Toc395640102 \h 52.1.2 Economic aspect PAGEREF _Toc395640103 \h 52.1.3 Socio-cultural aspect PAGEREF _Toc395640104 \h 62.1.4 Technology PAGEREF _Toc395640105 \h 62.1.5 Environment PAGEREF _Toc395640106 \h 62.1.6 Legal aspect PAGEREF _Toc395640107 \h 72.2 Porterà ¢Ã¢â€š ¬s five forces PAGEREF _Toc395640108 \h 72.2.1 Bargaining power of buyers PAGEREF _Toc395640109 \h 72.2.2 Bargaining power of suppliers PAGEREF _Toc395640110 \h 72.2.3 Threat of Entry PAGEREF _Toc395640111 \h 82.2.4 Threat of Substitutes PAGEREF _Toc395640112 \h 82.2.5 Industry Rivalry PAGEREF _Toc395640113 \h 83. Internal environmental analysis (Value chain analysis) PAGEREF _Toc395640114 \h 94. SWOT Analysis PAGEREF _Toc395640115 \h 104.1 Strengths PAGEREF _Toc395640116 \h 104.2Weaknesses PAGEREF _Toc395640117 \h 114.3 Opportunities PAGEREF _Toc395640118 \h 114.4 Threats PAGEREF _Toc395640119 \h 115. Analysis PAGEREF _Toc395640120 \h 12Conclusion PAGEREF _Toc395640121 \h 13References PAGEREF _Toc395640122 \h 15IntroductionJCB which stands for "JC Bamford Excavators Limited" is a Briti sh-owned construction equipment manufacturer with presence in four continents and 150 countries across the world. Its main facility is based in Rocester, United Kingdom. In 1945, its founder the Late Joseph Cyril Bamford (JCB) left the familyà ¢Ã¢â€š ¬s agricultural venture to set up his own business of building agricultural trailers for large scale farmers (Adamson Pollington, 2006). After several failed attempts, the company launched its first backhoe loader in 1954, which led to introduction of other models such as JCB3, JCB3C, and JCB 4 backhoe loaders. Despite the recent product diversification, backhoe loader has been the companyà ¢Ã¢â€š ¬s backbone in terms of progress and success (Daniels, 1990). The product has been very instrumental in helping the company to acquire and maintain the UKà ¢Ã¢â€š ¬s market share. The production of backhoe loader is done in two sites. The 1CX and 2CX models together with their derivatives are built in the Cheadle factory, while all other m odels are built at the main facility in Rocester.This report aims at analyzing the various strategic facets that JCB utilizes in the manufacture, distribution, and sale of construction machinery, specifically the backhoe loaders, within the UK market. It conducts an industrial analysis to determine the requirements and trends that contribute to the key success factors of the entrants and already existing firms. For this to be delivered successfully, the report has dissected the company's current strategic position within the heavy equipment industry using the PESTEL, Porter's Five Forces, SWOT, Value chain, and the Porter's Three Generic Strategic analytical tools.2. External environmental analysis2.1 PESTELPESTEL, which stands for "Political, Economic, Social, Technological, Environmental, and Legal factorsà ¢Ã¢â€š ¬Ã‚ , is an analysis framework that examines and monitors the external environment factors of any business entity that may have an impact on its operations. Thus, it i s used as a strategic analytical technique of examining the prevailing and future state of the industry a firm belongs to (Bennett, 1999).2.1.1 Political aspectLike most of the developed countries in the world, the United Kingdom has exhibited considerable political stability over time (Chatterjee, 2002). This has played a pivotal role in the implementation of the policies and regulations aimed at streamlining business activities within the country including the manufacturing sector. The recent legislation on reforms in the banking sector has facilitated easy access to credit by plant hirers and contractors, who are the main customers of backhoe loaders. This has led to a steady expansion of the construction industry thus creating demand for earthmoving equipment (Chudley Greeno, 2005). It is needless to say that JCB has been one of the biggest beneficiaries of this development. In addition, the promotion of inward investment by the British government has been instrumental as far a s protection of human capital is concerned.2.1.2 Economic aspectIn the recent past (2008-09), the UK economy was thrown into a recession that left a tremendous destruction of the construction industry. During this period, there were massive job losses and pay cuts (Warner, 2010). Those who were in employment also felt the effects of the meltdown as majority of the employers could not actualize any pay rise. There was a general decline in the purchase of backhoe loaders due to low demands in housing, infrastructure, and commercial sectors. Consequently, JCB's sales margins subsided. However, as the economic growth rejuvenates, the heavy equipment's demand has bounced back and it is steadily increasing (Grant, 2013).2.1.3 Socio-cultural aspectThe performance of the UK manufacturing sector is characterized by the belief that every new entrant in the industry must adhere to the set guidelines of corporate social responsibility. Supporting and promoting the local community has become an indispensable part of business in the contemporary UK market. For instance, getting involved in charities and fund-raising builds the rapport of the company and consolidates their customer loyalty. On that note, JCB has been sponsoring charity work that aims at fighting child abuse in the UK for over 25 years (Forgang, 2004).2.1.4 TechnologyTechnology has become a crucial aspect of any business landscape in the modern world. The manufacturing sector in the UK has experienced a towering development as a result of fast and reliable processes, improvement in communication, and efficient utilization of resources (Hooley, Saunders Piercy, 2004). For instance, web cams mounted on sites enables the project manager or the building owner view the work progress without necessarily being at the site. To embrace that, JCB has incorporated the Global Positioning Sensors (GPS) systems in the manufacture of backhoe loaders. This ensures that the machine performs tasks accurately and efficiently w ithout being instructed what, when, and where to do. As a result, cases of hazards at construction sites have declined significantly (Grant, 2013).2.1.5 EnvironmentThere have been great concerns by the environmentalists in the UK that the manufacturing industry contributes significantly to the environmental degradation. This has been done through overutilization of the non-renewable natural resources and pollution. The company has been largely mentioned as one of the greatest contributors of air pollution (Kelley, 1972).2.1.6 Legal aspectIn any given business environment, consumers need protection against substandard products and misleading marketing practices. In 2008, the British government introduced the unfair trading regulations to curb lawlessness exhibited in various business environments. For instance, those businesses that unfair competition practices may risk prosecution or fines (Morton, 2002).2.2 Porterà ¢Ã¢â€š ¬s five forcesPorter's five forces framework is an analysis tool that employs five forces to establish the profitability of an industry so that a firm can modify its competitive strategy. It is an important tool for any given business entity since it helps one understand the strength of competitive position either currently or in future (Porter, 1980).2.2.1 Bargaining power of buyersGenerally, the UK market is characterized by buyers who have a strong bargaining power compared to other European markets. They demand products of highest quality but at a lower price (Johnson Scholes, 1999). This translates to lower revenue generated by the producer despite high cost of producing those high quality products. Eventually, a decline in profits becomes inevitable. In the UK's construction industry, buyers have a strong bargaining power mainly because they are few in number. In addition, the presence of many substitutes from other manufacturers such as Caterpillar, ...

Techniques for Providing Fresh Water to Arid Regions - 1375 Words

Feasibility of Different Techniques for Providing Fresh Water to Arid Regions (Essay Sample) Content: Feasibility ReportStudents Name and Course CodeClassInstitutional AffiliationDateFeasibility of different techniques for providing fresh water to Arid Regions.Chapter 1: IntroductionPurpose of the Study .Chapter 2: Background OverviewAnalysis of the arid regionChapter 3: Presentation of the subject matterThe two water techniques Cost comparisons of the two water techniquesChapter 4: Productivity and SustainabilityComparisons of the two water techniques Chapter 5: Effects on the EnvironmentComparisons of the two water techniques .Chapter 6: Conclusion and RecommendationQuick overview of the two water techniques..Chapter 7: ReferencesResearch References1.0 : IntroductionZereini Hotzl, (2008), approximates that roughly thirty percent of the overall world land encompasses occupied arid and semi-arid regions. Water encompasses the largest percent of the most precious global asset ranging from its essence in variant industrial processes and agriculture. It is more paramoun t to note that water scarcity introduces vast intricacies to life. According to Rodrigo, (2006), global statistics reveal that roughly twenty five percent of the entire world demographics are unable to obtain pure and safe drinking water. Such shocking global logistics are drawing attention as fresh water inadequacy, and escalating costs takes over the hydrological stage arena.1.1: Purpose of the studyThe sole objective of this paper is to probe, screen and evaluate the degree of convenience of various techniques deployed to provide fresh water in both arid and semi-arid regions in the globe. This paper aims at reviewing the current state of the specific arid and semi-arid regions (such as Timbuktu in Mali) which will be closely followed by the conveniency rates of various techniques depending on their assurance or guarantee of fast, efficient and reliable fresh water supply. In this regard, this paper aims at expounding on both technological and economical prerogatives. This paper concludes this discussion by screening the expounded techniques and analyzing their comparisons then winds up by offering viable recommendations.2.0: Background InformationAccording to Agnew Anderson, (1992), vast semi-arid and arid regions such as Timbuktu, Mali encounter dire challenge of shortages in fresh water supply which in this scenario can only be obtained from seasonal rivers and lakes. Agnew Anderson (1992) further affirm that regions across the Sahara desert such as Timbuktu in Mali have a limited and a confined provision or supply of underground water as well. This predicament is escalated by the prevailing condition of having increasingly salty levels of the available water as a result of vast aquifer disruptions. This hydrological study by Agnew Anderson further points out that water demand in such arid and semi-arid regions is increasingly widening as a result of various aspects such as urbanization, industrialization and escalating population growth. Probing on t he aspect that arid regions have a restricted supply of conventional fresh water sources, sea water desalination coupled with rare ground water sources remain the key water supply sources.3.0: Presentation of the viable optionsMarita Phoebe (2006) assert that so as to offer convenience and guarantee of constant and growing life in arid areas, feasible options ought to be devised that offer convenient fresh water supply. To begin with, ancient and time immemorial water harnessing options such as drilling boreholes seem to own a limited convenience in arid areas. To offer a viable and contending fresh water supply to residents in such regions, feasible approaches which can ultimately achieve that goal includes distillation, processing and recycling of municipal water, technical mass harnessing ground water via the deployment of advanced water harnessing options. The aforementioned options are discussed below.3.1: Sea water DistillationSea water distillation involves eradicating salt elements from saline water and consequently transforming it into fresh water which is safe and convenient for drinking.According to El-Dessouky Ettouney (2002), sea water distillation is considered one of the most ancient and popular methodologies of water harnessing and treatment. In this context, Diawara (1983) affirms that sea water distillation approach is extremely convenient and easily practical and reliable in provision of fresh water in arid regions. Furthermore, Diawara (1983) highlights that sea water distillation eliminates almost 100% of the vicious sea water hazards and contaminants.Hydrological statistics reveal that as at the year 2003 over 13,000 sea water distillation plants were set in place and producing over 15 million gallons of fresh water on a daily count. However, despite the claims that sea water distillation has a relatively minimal water production which can hardly satisfy the global water demand, El-Dessouky Ettouney (2002), affirms that sea water disti llation has a commendable contribution or augmentation in the fresh water supply chain to semi-arid and arid regions. In this context, El-Dessouky Ettouney (2002), asserts that wide installation and adoption of distillation plants in both semi-arid and arid regions would significantly elevate fresh water production and circulation in arid areas and hence consequently cut down the high demand for fresh water in such regions. According to El-Dessouky Ettouney (2002), various states such as Qatar, Kuwait, and the United Arab Emirates have already adopted sea water distillation plants to escalate their leverage to access of fresh water supply in arid and semi-arid regions. According to El-Dessouky Ettouney (2002), the aforementioned states have reported commendable economic proliferation since sea water distillation escalated fresh water provision, which is a fundamental requirement for economic growth.According to Nce.co.uk, (2010), sea water distillation has complex processes as sh own in the figure below:3.2: Processing and recycling of municipal waterAccording to Agnew Anderson, (1992), the municipal sewerage system can often be processed and recycled under various specifications to harness safe and convenient freshwater fit for human consumption. A perfect illustration is the Moscow wastewater processing and recycling plant in Russia, which processes over 5000 gallons of waste water for both agricultural and industrial uses. However, as Marita Phoebe (2006) asserts, it is intricate and complex to persuade the public that the freshwater obtained from such sources is pure and convenient for consumption. Marita Phoebe (2006) argue that this is the key distincti...