Company analysis Uganda BY PAUL KASULE.

Content

Mission and vision

Our long term objectives

SWOT analysis

PESTEL analysis

Five forces of porters

Competitors analysis

CPM and TOWS matrix

Strategies

Conclusion

THE VISION AND MISSION

vision

• To be the leading investment company in Uganda .

Mission statement

To add value to the stake holders by providing high quality financial services,consaltancy services working under ethical standards, provide reliable working environment, affordable prices, accessible and to ensure development in our operating environment .

long term objectives .

strategic ,

To obtain Large market share through ;

Customer satisfaction .

High quality products

Quick delivery and response .

After the implementation of the above Customer loyalty will exist which will lead us to our long financial objective of revenue and high profits .

THE SWOT ANALYSIS (internal factors )

Strength

High skilled man power.

Quick access to new technology.

Enough facilities for operations during

production.

Good strategic location in the

Kampala capital city.

• Weakness

limited capital to spread our services to all parts of Uganda .

Limited man power to deliver our services quickly.

Based more in central parts of the country

External factors .

Opportunities

Favorable government policy of incentives like tax holidays .

Growing market in Uganda .

Technology development in the country .

Good management and governance .

Increasing number of Ugandans working abroad .

• Threats

Rival of new competitors like jomayi and cytonn

Political instability and strikes in some parts .

Increasing inflation in Uganda around 7.7% this year .

High interest rate on loan .

Inflation trends

we

Five forces of porter

Threat of new entrants

Investment cord act 2000 requires an investor to have at least US$ 100,000 to earn a license .

Any company is subjected cooperate tax of 30%,capital gain 30% and dividend tax 15% .

high levels of Corruption in Uganda ranked 142 in world.

Bargaining power of suppliers

Numbery of suppliers of the same services like centenary and Baroda bank.

Increasing number of expertise thus providing cheap labor .

Bargaining power of buyers

• Quality services and uniqueness buyers are willing to purchase

• Affordable price of the services like land at 4million sh.

• Variety of buyers both foreign and domestic .

Threat of substitute products

• Products with the same qualities are produced which affect our clients.

• Same priced products are produced .

• New products and well branded .

• Rivalry among existing competitors

Almost the same price of our services are produced with jomayi .

introduction of new products and services like currency trading and land development .

promotions and media advertising .

What are the external factors which can affect our company?

• PESTEL-,

• Political factors .

Corrupt leaders .

Political instabilities in the some parts of the country .

High rates of taxes charged by the government .

Lack of Implementation of Policies. Leaders promise a lot but remains in papers .

Corporate tax rates In Uganda

Domestic company

• Corporate tax 30%

• Capital gains 30%

• Dividend 15%

• Interest on non government securities 15%

• Interest on government securities 20%

• Royalties (included in taxable income) 0%

Foreign company

• 30%

• 30%

• 15%

• 15%

• 20%

• 15%

Economic factors

Increasing inflation in Uganda around 7.7 %

Economic development strategies like infrastructures are under construction .

high Interest rate 21 -22% between banks and retail interest is around 24 %.

Growing market in Uganda .

Social factors

Life style of the people in Uganda (primitive and local )

Developing social media in Uganda with around 20 radio stations and 15 TV channels thus cheap advertisement .

Increasing population of young and educated generation contributes a lot on our market.

Technological factors

Introduction of advanced technology in the country like internet service which speed up;

• Management

• Construction

• Communication

Environmental factors

Environmental changes in Uganda i.e. Prolonged dry season

High Pollution level like in Kampala is around 82.18%

COMPITITOR ANALYSIS ITEMS JOMAYI WAKARI CYTONN

HEADQUATERS Old Kampala road Kampala control Kenya Nairobi SALES In 17 yrs. more than

50000 land titles have been issued

Limited sales since the company is new in the market .

Sales in Uganda still down but in Kenya and Tanzania are high with around 50billion projects .

SERVICES  Architecture planning, Land surveying, Land documentation and Construction stone manufacturing.

Flower pots ,plants and grass, color rock stones and walking slabs and concreate and clays ,real estate ,architecture and urban development .

Real estate, land escaping , architecture services and buildings .

MARKET FORCUS Focus more on local market .

Uganda local market east Africa Kenya Tanzania and Uganda

STRATEGIES Social responsibilities like construction of schools

Global strategies agents in France and foreign countries

Social services like helping the orphans in the societies where they are operating .

WEAKNESS Not much design talents to up date the product designs .

Limited man power more casual workers are used

Concentrate more in Nairobi Kenya

STRENGTH Big domestic market share.

Variety of services offered

Already dominated all the countries of the east Africa .

CPM with in the company units. Critical success

factor

Weight Rating Unit one

Land n

property

Score

Rating Unit two

Real estate

score

Rating Unit three

Currency

trading

Score

Management 0.2 3 0.21 3 0.21 1 0.2

Quality 0.2 2 0.4 3 0.6 3 0.6

customer loyalty 0.2 3 0.6 2 0.4 1 0.2

Growth 0.17 4 0.68 3 0.51 1 0.17

Financial

position

0.13 4 0.52 2 0.26 1 0.13

Prices

competiveness

0.1 2 0.2 4 0.4 3 0.3

Market share 0.1 3 0.3 4 0.4 2 0.2

2.91 2.78 1.97

• From the above we are likely to use defensive strategy of divestiture because it’s now affecting the all financial position of the company and if we are to keep it we shall need a lot of money to make some reforms which is difficult now because we have got some more reforms to make in the other two units to make them more productive and effective in order to be competitive

CPM FOR MAJOR COMPETITORS Critical success

factor

weight Ratings HQI

score

Ratings Jomayi

Score

Ratings Cytonn

Score

Share market 0.15 4 0.6 4 0.6 3 0.45

Financial position 0.10 3 0.3 4 0.4 5 0.5

Quality of service 0.09 3 0.27 3 0.27 4 0.36

Advertisement 0.12 3 0.36 4 0.48 3 0.36

Customer loyalty 0.05 3 0.15 4 0.2 3 0.15

Global expansion 0.07 2 0.14 2 0.14 4 0.28

Price

competitiveness

0.09 3 0.27 3 0.27 4 0.36

Management

expertise

0.12 4 0.48 3 0.36 5 0.6

Customer service 0.1 4 0.4 4 0.4 5 0.5

E commerce 0.06 2 0.12 2 0.12 3 0.18

1 3.09 3.24 3.74

30%

33%

36%

RESULTS

HQI

jomayi

cytonn

Strategies to use

Factors to be improved Strategies to be used

Quality of the products , More advanced technology in production is our major

target to increase on the quality.

Global expansion , Increasing on the number of distribution channels by

Opening of more branches in different parts of Uganda

Kenya and Tanzania to compete with cytonn.

Customer service, By increasing our services through offering online

services and first delivering services and to employ more

expertise in the service departments.

Financial position, Use of backward integration with our suppliers like

equity bank Uganda in order to increase on our financial

stability.

TOWS 

 

 

Compare

Strength High skilled and

trained man power. Quick Access to high

technology. Strong distribution

and supplier channels.

 

Weaknesses

Shortage of enough

manpower

Shortage of enough

capital

Located in central

parts.

Opportunities   Increasing number of

financial and computer literate’s.

  Growing market.

  High rate of

development.

 

SO strategies

Increase on the

production and

introduction of new

products to meet the

growing market.

WO strategies

Recruitment of new

skilled man power and

opening up of new

branches in other parts

of the country.

Threats

Increasing inflation

Increasing

unemployment

Increasing

competitors.

ST strategies

Adaptation of new

intensive strategies i.e.

massive advertisement

In production to

increase on the quality

of services and sales

 

WT strategies

Employing more skilled

workers.

Market penetration in

order to expand our

services and to reduce

on the competition

 

• Conclusion

• Basing on our analysis the company is performing well however the environment is very competitive for the new company , More effort is still needed to overcome our competitors in order to achieve our vision according to the current business factors there is rapid growth and development which is from all units apart from currency unit and the company is to implement the mentioned strategies to ensure equal and rapid growth in all units of the company and we shall keep updating it to stay strong and competitive in the market .