Strengths and Opportunities of Babcock Marine Ltd - Assignment Example

? Babcock Marine INTRODUCTION Babcock Marine Ltd operates in a naval base at the Faslane in the United Kingdom. The company has maintained ships and submarines and also the visiting vessels. It is the UK’s large naval services company that provides maintenance and support to the royal navy fleet of submarine, the warships and other naval infrastructure. It is a member of the aircraft carrier alliance alongside the BAE systems, ministry of defense and Thales (Gilespie, 2007). This alliance is currently in progress of building two large aircraft carriers namely HMS queen Elizabeth and the HMS Prince of Wales. Being the largest warships that the UK has ever commissioned, they are to be built like a giant Lego model and have individual blocks being built at the six shipyards surrounding UK that is before they are transported to Babcock’s Rosyth facility for the final assemble and its integration. If you happen to be in the military or a commercial sea-faring craft, there is an open door for you. A division of the Babcock International, the company provides a wide range of design, support and building services which are inclusive of upgrading, conversion, refitting and maintenance (Brown, 2003). It also offers engineering, as well as, support services to the royal navy. Most of its customers include the government of Canada, New Zealand and Canada. The marine designs the fast ferries, specialist crafts and paramilitary vessels to customers globally. In addition, it offers the water jet propulsion for commercial and military applications, landing craft, workboats, special operations crafts, design of excluded light in alloy planking in small ship construction and other commercial vessels. Close to that is the ability of the company to provide all spares of procurement services. It supports the third party operators and also the private owners. SWOT analysis Strengths and opportunities The two largest aspects that give the company a reason for existence is the energy and the marine technology. Babcock has provided a platform for the design, integration and also management services in the marine, oil and gas and also in the defense sectors globally. Privileged to have more than 900 engineers and technical support staff, they also have inspired delivery record, proven design and management expertise, focused leadership, it is able to support all its customers on each and every aspect, including the concept of design and modification through the life management together with a safe and environmentally friendly disposal (Kim, 2005). It is the leading UK Engineering support services Company, and it is trusted to deliver serious support to the government along with key industry organizations within the globe. The company has proven track record as being the UK’s leader in naval support business that provides its customers with surety and huge confidence regarding its ability to safely and carefully manage and operate some of the countries most core assets together with providence of through-life support in complex programs of national significance (Brown, 2003). Further the submarine partner in the royal navy, the company is the only provider of deep maintenance, infrastructure support and in-service maintenance. The strength of its long term relationship has been portrayed in its involvement in the current and future programmes. It has unique facilities and infrastructure that has enabled the company to undertake about 75% of the UK surface refit refits and also about 50% of fleet maintenance. Managing and also operating two of the three UK naval bases, has enabled Babcock to work successfully with the ministry of Defense over the last ten years and hence delivering considerable cost reductions and further service improvements as part of successful partnering relationship with the Royal Navy and Ministry of Defense. It has unique naval infrastructure across the UK which support complex engineering programmes and at the same time increasing the availability of the customer’s assets and delivering significant costs reductions (Gilespie, 2007). It has continued to enhance its position within the offshore energy; marine engineering support services markets and civil nuclear services by supplying a high integrity. Their commercial enterprise operates at a commercial port in Rosyth and provides flexible facilities and services that support the marine logistics, offshore operations and the vessel maintenance. Threats and opportunities From the case, it is evident that there is no immediate supplement for power in the company. Power in its activities is essential in ensuring that all the reactors of the nuclear submarines are kept cool. The previous incident of the loss of power had critical nuclear implications. It is evident that this was caused by a fault in the nuclear central switchboard. Assuming that the company had made immediate supplement for any power outage, such a scenario would not have been experienced (Mangold & Faulds, 2009). Further in an institution present with engineers, it is a weakness to have a fault which has remained unidentified within the previous time and therefore, the management should have allocations of this responsibility to that sector. From research, it is possible to expect such situations in the future due to the corresponding increase in the submarine days which was caused by unidentified faults. As a large supplier of services of Royal Navy, has stated that it’s trading is in line with the expectations though its rail arm has shown to perform poorly than expected despite having many businesses outperforming its expectations. The results from the rail arm is likely to be below the expectations as a result of high costs and also the additional effort that is required to respond to the Network Rail plan in order to reduce the number of suppliers for the track renewals. New entrants alter the industry setting and may easily change market share and profit margins (Shilei & Yong, 2009). High profits attract new players and consequently affect the profitability. Current players and industry structure can block entry through patents, rights, and capital requirements. The wholesale industry is a high barrier and low exit industry making it favorable for existing players. It has a strong brand name and enjoys economies of scale but having a more stable entrant in the industry would place it in a bad situation for competition. PESTEL Analysis Political The company has engaged itself in providing high wage rate for its employees because of the contract unions, and as a result, this has increased the employee’s performance by a higher margin and thus the company’s overall performance is also very good. The company has formed its industry policy, foreign capital and technological policy and the export import policy which is based according to business regulations of the United States (Kim, 2005). Economic Economic scenario for Babcock Marine remains consistent as the company sales are consistent with the economy (Lane Keller, 2001). Economic factors whereby the performance of Babcock Marine is based are systems to do with tax payment, investment allowances and commodity prices. Social Trade practices adopted by the corporation has enabled the company boost its relationships and reputations with its employees, the government and its customers. The women employees of the company are the key to employee’s relations (Hill & Westbrook, 1997). Technological The company has employed practical technology systems through business units so as to expand functions related to IT. It has further expanded its investment portfolio in information technology based items (Yuksel & Dagdeviren 2007). Environmental Babcock Marine is trying to adapt the safety related programs through the establishment of solar panels and other ways which has enabled it to turn out as the leader with feasibly in the field. Legal Since Babcock Marine operates in a variety of countries around the world it is necessary for it to follow the legal implications required. Through successful implementation and accomplishment of these requirements it has been able to face success (Shilei & Yong, 2009). External environment Current environment The trending issues include globalization, new and emerging economic powers, a slow economic recovery, and standardization of systems across the world, discerning and value oriented customers. Rising competition in all industries has enhanced democracy (Lane Keller, 2001). These settings open new frontier for the retail industry and means that Babcock Marine and others will have to be proactive in response to these developments. Supplier power The fewer the supplier options for Babcock Marine, and the more it depends on them the more the balance of power lean in favor of suppliers. The number and size of suppliers for Babcock Marine is a large company and its goods and services are for mass market. It has a wide selection of suppliers where it can source from the global market. The company has the agility, and it can not only switch suppliers easily but also shift from one brand to another (Great Britain, 2008). Its turnover is massive and this can easily entice any supplier, and it also benefits players due to economies of scale. Its many outlets provide it with an edge in regard with potential partners. Employee unions have lately weakened and this provide the company with an opportunity to manipulate their issues (Babcock & Wilcox Company, 1928). Despite the weak unions, has remained fairly considerate in regard to employee’s welfare. Babcock Marine has continued to embrace opening of private label which actually pushes power in its favor. Buyer power It defines the ability of purchasers of driving prices down. It can also be termed as the market of outputs. Factors influencing this include number of buyers, importance of individual buyers, and cost to switch from Babcock Marine to others. It is clear from the analysis that the balance of power and competitive edge lies with Babcock Marine especially in relation to strategy formulation (Claudet, 2011). Threats of substitution There are many other options to shopping including the numerous online platforms, neighborhood retail shops among others. These options provide alternatives for Babcock Marine customers. Buyers are flexible and can switch to other options easily without switching cost or inconvenience (Lane Keller, 2001). The products are not highly differentiated and switching information is easily available. This scenario gives the balance of power in favor of customers and the industry. Marketing communication objectives The company has set various strategies in order to achieve the marketing communication to its customers. The company wants to stay in touch and be able to convey the important information regarding the company (In Mercier & in Hamel, 2009). The means for communication include the use of company websites, newsletters, e-mail correspondence and relevant written materials. All these efforts will address the following issues. Sales Communications with customers is intended to keep the customers aware of the company happenings. It will also fulfill the objective of promoting the company products and services. Through this strategy, there is planned to be the new product launches, expansions of the business and introduction of new services (Belch, Belch, 2008). This strategy aims at encouraging customers in order to act and keep them involved with the business. The email blast will inform the consumers on any upcoming and limited-time sale therefore, providing a link to the company online products and the catalogs where they can take advantages of savings opportunities, and this will eventually promote the company sales. Education It is crucial for a customer to have full details of what the company is providing. As a company, it is should ensure that the potential consumers have adequate information regarding the product, services and the industry of operation. The core aim of this is to ensure that the customer has full knowledge regarding the company and therefore, be able to make rational decisions (Hill & Westbrook, 1997). Some in depth services that the company is offering will be required to be used by customers who get the chance to use the company information. Mostly targeted with this is the act of retaining the existing customers and also increasing their chances of investment in the company. There are customer reward programs that are presented through the marketing mediums such as the direct mail in order to achieve this. Brand awareness Every communication message is meant to reinforce the company brand image in the mind of the consumers. This is set to be accomplished through consistent messaging and commonly used color scheme, graphic design and logo in the marketing materials. It is normal that consumers are bound to associate the message that the company delivers to them with the product and services that are being offered and therefore, it will have created a strong brand identity (Babcock & Wilcox Company, 1928). Brand awareness will be enhanced with continuous communication with customers via the social media, email and company website and therefore, will encourage them to refer to the company hence creating an independent sales team. Marketing strategy Promotion The analysis reveals that the company uses minimal promotions and depends on word of mouth. It is essential to keep costs and expenses low especially in activities that can be done through other methods (Great Britain, 2008). Despite this, the expected stiff competition in the future should compel the company to think of other promotional activities such as advertising. Grow portfolio and diversification Diversification into other areas of business will provide the necessary leverage for the next growth phase. Innovations will play a critical part in enhancing competitive advantage in future. Improve e-commerce The company directs the start and the company need to improve the services in terms of reach for deliveries, online platform design and promotions (Zeithaml, 2002). Strategy It has applied several strategies that together work to enhance its competitiveness. They include enterprise, corporate, business, operational, group and individual strategies. The integration of the strategies offer optimal results if well balanced (Pickton & Broderick, 2005). International expansion Increase international presence since the company is not yet in strategic economies such as larger Europe, China, India and Africa. Babcock Marine can achieve international presence through acquisitions, partnerships and direct investments (Yuksel & Dagdeviren, 2007). Legal issues and diversity Streamline systems and practices to ensure adherence to policies and regulations. Enhance gender and disadvantaged segments diversity. Application marketing communication tools Advertising The advertising to be conducted will include promotion of ideas, goods and services and still employ some of the personal advertising. It will be more like the direct response advertising and the elements will be directed to the individual respondents (Zeithaml, 2002). Further, the strategic career management has efforts that are moving forward in the use of electronic media. There will be immense use of web pages, electronic media and email faxes. Public relations This being the act of maintains and building good relations with the publics of the company is meant to be achieved through acquiring favorable publicity and improving our corporate image together with handling the unfavorable rumors that we have faced as a result of the catastrophic. To aid in this, the organization will use press kits, news release and special events in order to communicate favorably regarding the organization (Zeithaml, 2002).With this company will be able to build up on its image with the use of network associates, associations, references and affiliations. Personal selling The sales department sales people are to be trained to conduct their selling techniques in a personalized manner. It will be conducted through an oral face to face communication with the members of the audience that is targeted comprised of potential customers. Interview will be most effective. Sales Promotion Sales promotion is dedicated to inducing resellers and sales people to sell products or to make consumers buy it. It concentrates on inducing immediate action from the consumer in terms of price discounts, time offers and bundling (Belch, Belch 2008). It is less appealing in the career management since the company is typically unwilling to offer its services at a discounted price. Sales promotion will stimulate the enthusiasm sale force for the new products, rekindle the sales of the already mature products, and further increase the merchandising of shelf space. The various ways of sales promotion to be used will be internal sales promotion, sales promotion to the distributors, specialty advertising and trade shows. Recommendations Commitment to governance should be maintained in the way to acting ethically when pursuing and awarding the business. The business has a proper understanding regarding its reputation and the good name that it has created. Having in mind that all this could easily go away in the event of unethical behavior, it is for this reason that the business policy should be enforced and therefore, it calls for all the employees, business advisors and all business partners to comply with the code (Claudet, 2011). Following the loss of power which had severe nuclear implications, indeed the company ought to work together and work towards making improvements as a response to the improvement notice by the Office of Nuclear Regulation. It is evident that since there has been similar cases and hence the cause need to be examined. As a result of the unidentified faults implying that the standby generators had a fault and therefore unable to supply sufficient power for more than 90 minutes, there need to be sufficient generators and quality ones that will eliminate the presence of unidentified defects (Pickton & Broderick, 2005). Resources It is ordinary to have loss of electricity during company operations, but an organization that is so dependent on electricity for all its operations, there requires a strong standby power substitute that will take part just when the loss has occurred. In this case however, it is not a case of having the standby generators but having unidentified defects, frequent loss of electricity and faults in the central nuclear switchboard (Belch, Belch 2008). This implies that the company needs to do some relocation of the offices that have the switchboard and the project therefore, will involve setting aside another office in a different location, having efficient switchboard and making sure that the necessary equipments are transferred. Gantt chart References Babcock & Wilcox Company. (1928). Marine steam. New York: B abcock & Wilcox Co. Belch, G. E., Belch, M. A., Kerr, G. F., & Powell, I. (2008). Advertising and promotion: An integrated marketing communications perspective. mcgraw-hill. Brown, M. T. (2003). An analysis on online marketing in the sport industry: User activity, communication objectives, and perceived benefits. Sport Marketing Quarterly, 12(1), 48-55. Claudet, J. (2011). Marine protected areas: A multidisciplinary approach. Cambridge: Cambridge University Press. Gilespie, A. (2007). PESTEL analysis of the macro-environment. Foundations of Economics-Additional chapter on Business Strategy", Oxford University Press. Great Britain. (2008). Employment and skills for the Defence Industry in Scotland: Report, together with formal minutes, oral and written evidence. London: TSO. Hill, T., & Westbrook, R. (1997). SWOT analysis: it's time for a product recall. Long range planning, 30(1), 46-52. In Mercier, A., & In Hamel, J.-F. (2009). Endogenous and exogenous control of gametogenesis and spawning in echinoderms. Amsterdam: Academic Press. Kim, G. J. (2005). A SWOT analysis of the field of virtual reality rehabilitation and therapy. Presence: Teleoperators and Virtual Environments, 14(2), 119-146. Lane Keller, K. (2001). Mastering the marketing communications mix: Micro and macro perspectives on integrated marketing communication programs. Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the promotion mix. Business horizons, 52(4), 357-365. Pickton, D., & Broderick, A. (2005). Integrated marketing communications. Shilei, L., & Yong, W. (2009). Target-oriented obstacle analysis by PESTEL modeling of energy efficiency retrofit for existing residential buildings in China's northern heating region. Energy Policy, 37(6), 2098-2101. Yuksel, I., & Dagdeviren, M. (2007). Using the analytic network process (ANP) in a SWOT analysis–A case study for a textile firm. Information Sciences, 177(16), 3364-3382. Zeithaml, V. A. (2002). Services marketing management. Read More