Business Analysis of Capstone - Case Study Example

? CAPSTONE CAPSTONE Company In the growing construction industry, Capstone offers unique products and services for buildings. Having unique building structures, the company is able to provide construction services for the vast population. The company recruits well-educated, trained and skilled personnel that work with the latest construction projects. Capstone construction is a service oriented company that deals with servicing of constructions by training and assessing qualified personnel of buildings. The company also deals with ensuring that the personnel can provide renovation services. The main purpose of the company is to provide advice and assessment services for individuals who wish to be qualified in building and renovating. Capstone is aimed at laying out the mechanisms of support of enhancing the technical skills of individuals who hope to further their understanding on building. The company ensures that individuals are provided with a qualified builder’s license to have properly designed and safe buildings. Building an engineering school at Lynn University requires implementing a proper layout structure of the site and the environment that surrounds the building. The successful completion of an attractive engineering complex requires a package that meets the technical approach utilized in the licensing state body. As investors, reading at the background of capstone is inevitable that it will provide a properly elevated engineering school at the University of Lynn. 2. Culture Capstone empowers its superior people to ensure that they deliver to their subordinates. Empowering the superiors gives light to the subordinates as they are directed towards the correct path. The company holds a culture of freedom as the employees are allowed to air their thoughts on given designs and layouts. In the building and construction industry it is important to give rise to new designs that may facilitate a better engineering building. Considering that the construction should cater for a growing institution, the design should facilitate the different number of students that will be using the new building. The company recruits individuals that hold a high passion for construction. Pride in what the employees does is emphasizes as they are the direct marketers of the company. Strong relevance on persistence and strong work ethics is an important aspect in ensuring that the integrity of the company continues to flourish with time. The culture of holding high integral values sets to set the company apart from their competitive companies. 3. Mission Statement Capstone Construction Company’s mission is to provide value added services to the customers through generating lasting partnerships in the construction process. The company’s aim is to continue providing reliable customers to existing and new customers (Breton & Wintrobe, 1995). 4. Product The product of capstone will include in ensuring that it provide a post modern engineering building will be divided in different sections of the building process. The foundation, the form building and the roofing will act as a guideline of producing the finished product. Foundation building is important as it will determine the ability of the building to stand alone. The building aesthetic will also determine the products used for construction. Lastly the finishing plays an important role as it will attract other projects of the similar design. The type of products to be used includes wood, stone, glass, concrete and masonry tools. The roof will be pre-engineered to support the structural wall systems 5. Gantt Chart Diagram This is an analysis of the processes involved in making one project process move. It will emulate the different steps of the building process from the foundation to the roofing and finishing process. Construction of the engineering building will require an articulate process that will show progress from the commencement to the finishing of the process. Continued assessment will also be included to aid in the report making and analysis. The Gantt chart diagram is depicted below. 6. Direct Resources - Budget The budgeting process will involve a complete analysis of the resources required in building the building from scratch. The direct resources include raw materials that are required for the construction process. These include sad, ballast, concrete, glass, roofing materials and long term foundation materials. The budget on constructing and completing the University of Lynn engineering building is placed at $15 million as an estimate has been included to cater for the increase of resources. The indirect resources such as investors and communication totals will also be included to ensure that the complete budget analysis contains the different needs required to complete the engineering building completely (Basu & Wright, 1997). 7. 12 Months’ Projections The progress of the project will be determined by a 12 year projection of the profit and loss the investment will make for every stalled process. Continuity of the process will depend on the availability of resources, labor and funds to push the project to end at an earlier date, saving on the funds, or a later date, creating losses. The projection is as the diagram below. It emulates the United States total construction spending. The above is a projection of the construction project which can be emulated in any increase months depending on the financial expenses that have increased or decreased. 8. How Much Capital Do You Need? The budget on constructing and completing the University of Lynn engineering building is placed at $15 million as an estimate has been included to cater for the increase of resources. The nature of the engineering building is different from the commonly used buildings as additional facilities will be included to ensure students have the best facilities for theory ad practical purposes. The availability of resources will also be elevated to cater for situations where the raw material may not be readily available for purchase. Comparison offers by various suppliers are also attributed to the budget as they may reduce or increase costs of building materials (Buttle, 2008). 9. Rate on Investment (ROI) The “rate on investment (ROI)” refers to a measure that aids in finding out the efficiency of an organization. The measure is a comparison of the revenue generated to the amount of money injected into the company in form of investment. ROI can be expressed by the mathematical expression below. ROI is expressed as a ratio in percentage. The amount received from investments is the total amount of interest received. Capstone uses ROI due to its simplicity in analyzing whether the company is headed in the right direction. Capstone will deal with an appropriate method in analyzing the amounts that represent each part of the assignment. In analysis of ROI for the following aspects will be include in the summation, 1. The cost of the construction of the engineering building of the University of Lynn 2. The installation costs 3. Savings in time costs 4. Savings in expenditure costs 10. SWOT Analysis Capstone controls its market by performing a market analysis through performing the SWOT analysis. The strengths of the company are defined by the internal assets, motivational aspects, technology, business connection, and financial stability. Weaknesses are defined by the company by the internal conditions that prevent a high competitive edge hindering the company from exploring existing opportunities. The company defines it opportunities on an external platform where the organization will benefit from favors that fall on the company, the company enjoying a competitive edge. Capstone defines its threats by the challenges that cause unfavorable circumstances both internal and external influencing on the success of the company (Kern, 2001). Strengths of Capstone The company enjoys a wide range of qualified trainees who are hired to fill fields in the construction sector. These trainees come with new ideas applied in the construction industry. The company enjoys the rising numbers of housing and construction projects the can work on for renovations or new constructions. This ensures business continuity meaning that revenue generation is on a constant. Another strength the company enjoys is the ability to build in feasible location of the country, building the engineering building in the University of Lynn comes with recognition as they create business links on prospects of other universities that may require the same services. The skilled labor that the company requires during constructions comes at a low cost. The skilled laborers are well educated and have previous experiences from other constructed building. Access to natural resources and raw materials are readily available as the country supports the industry on given projects. School funded projects such as the construction of the engineering building is quickly approved for construction. Weaknesses of Capstone Capstone has a weakness in measuring the difference between the efficiency of the business and the construction projects. The natural disadvantage, such as unfavorable weather conditions, may cause construction of the building to stall. Training can be a weakness as it takes up much time. The construction industry is dynamic with new materials emerging. Continued training may cause a slack up in the project as not all workers may be conversant with the new methods of conducting business. External contract allocation on the various floors of the engineering building may become difficult as the company may have to outsource come activities. Opportunities of Capstone Capstone enjoys a continuous growth in the contracts the grab as the continued boom in development projects. This elevates the experience through the number of projects they have handled over a given period. The University of Lynn falls under the public sector meaning that capstone will get access to business partnerships that facilitate the growth of the industry on a dynamic platform. The company experiences a supply chain developed through investments, as they are able to indulge in large projects. The rise of technology enables the company to use flexible methods of training in the area. The company has access to loans and grants to use in production of bricks that may be required for construction instead of purchasing. Threats of Capstone The construction industry faces long-term instabilities that may lead to unexpected change in the expected opportunities. The ongoing economic slump has a direct effect on the construction industry as many resources lead to a rise in costs of constructions. This limits the number of people willing to indulge in large projects as they end up accruing losses. Political conditions regulate the growing economy experienced by change in governance means that the project has to be reviewed by the new leaders. Conclusion The sales value of each product in the procurement department is achieved by the procuring officers determining the best value of each product or service. Setting a fair and reasonable price for customers is done to ensure that the competitor’s price does not beat the price of the company. Government contractor cost and price regulation comes with intend of creating a fair environment for individuals. Cost and pricing analysis includes setting a clear and relevant growth in the products and services that one wishes to offer for sale. Price setting is important to regulate the number of people who will be able and willing to purchase the product or service given the urgency. What is considered fair and reasonable pricing depends on the capabilities of the purchasing power of people. Reasonably pricing is done by the government to ensure that any offeror who sets a price of the supply of products and services. Pricing reasonably requires the supplier to apply various pricing techniques while applying the aspect of negotiation. A fair and reasonable pricing refers to the price an individual would pay for a product considering the price in the market has been analyzed. Various aspects determine the price setting activity. The aspects include, product brand, product quality, competitors pricing. The brand of the product ay elevate the price of a product, a good example is the Mercedes brand in cars tends to go for high prices as compared to a Toyota with the same specifications. The brand Mercedes is of high recognition as that of a Toyota (Kern, 2001). The process of forecasting and acquisition starts with the individuals setting the anticipated price of a given product. The next step is to ensure that the market pricing is set, and comparison is set on the product. The calculation of the production costs come as an important aspect in calculating the profits and losses anticipated if the product or service is sold at the given price. Direct costs are the ones inflicted by the production of the product or service such as manufacturing costs. These costs directly affect the final price of the products. Indirect prices are the ones affected by the product once it is dispatched off to the market. In the selling process, the economic aspects impact on the continuity of the sale. Change in the economy puts an impact on the price of a product. Increased inflation in the economy would increase the fare and reasonable price of a product. The issue of cost and price analysis comes as an independent factor when analyzed with the use of technology. The use of technology is applicable in analyzing the most relevant price that people are willing to buy for a product or service. The internet is a great tool of analysis. Governments use the tool to determine different locations, and the price tag on the given product. The geographical location and the price related. Technology application is applied by using management systems to analyze the trends that will give up the preferences of handling given aspects. The use of technology and information resources to research issued in cost and price analysis elevate the platform necessary for generating a clear platform. References Basu, R., & Wright, J. N. (1997). Total manufacturing solutions: How to stay ahead of competition and management fashions by customizing total manufacturing success factors. London: Butterworth-Heinemann. Breton, A., & Wintrobe, R. (1995). The equilibrium size of a budget-maximizing bureau: A note on Niskanen's theory of bureaucracy. Journal of Political Economy, 195-208. Burnett, J., Senker, P., & Walker, K. (2009). The myths of technology: Innovation and inequality . New York: Peter Lang. Buttle, F. (2008). Customer relationship management. UK: Butterworth-Heinemann. Halbert, T., & Ingulli, E. (2011). Law & ethics in the business environment. New York: Cengage Learning. Kern, R. (2001). S.U.R.E.-fire direct response marketing: Generating business-to-business sales leads for bottom-line success. New York: McGraw-Hill Professional. Read More