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Company analysis Uganda BY PAUL KASULE.
Content Mission and visionOur 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 productsQuick 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 .
ThreatsRival of new competitors like jomayi and cytonnPolitical 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 competitorsAlmost 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 ITEMSJOMAYI WAKARI CYTONNHEADQUATERS Old Kampala roadKampala controlKenya 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 andConstruction 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 STRATEGIESSocial 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 .WEAKNESSNot much design talents to up date the product designs .Limited man power more casual workers are usedConcentrate 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 propertyScore Rating Unit twoReal estate scoreRating Unit threeCurrency trading Score Management 0.230.2130.2110.2Quality 0.220.430.630.6customer loyalty 0.230.620.410.2Growth0.1740.6830.5110.17Financial position 0.1340.5220.2610.13Prices competiveness 0.120.240.430.3Market share 0.130.340.420.2 2.91 2.78 1.97
From the above we are likely to use defensive strategy of divestiture because its 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 weightRatings HQI score Ratings Jomayi Score Ratings CytonnScore Share market 0.1540.640.630.45Financial position 0.1030.340.450.5Quality of service 0.0930.2730.2740.36Advertisement 0.1230.3640.4830.36Customer loyalty 0.0530.1540.230.15Global expansion 0.0720.1420.1440.28Price competitiveness 0.0930.2730.2740.36Management expertise 0.1240.4830.3650.6Customer service 0.140.440.450.5E commerce 0.0620.1220.1230.18 1 3.09 3.24 3.74
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. WeaknessesShortage of enough manpowerShortage of enough capital Located in central parts. Opportunities Increasing number of financial and computer literates. Growing market.High rate of development. SO strategies Increase on the production and introduction of new products to meet the growing market.WO strategiesRecruitment 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 .