SWOT/PESTLE ANALYSIS

MONTON CONSTRUCTION LTD.
SWOT AND PEST/PESTLE ANALYSIS
COURSE CODE: B6

Table of contents:

Table of contents ……………………………………..…………………………. 1

Introduction ……………………………………..……………………..…………. 2-3

SWOT Analysis …………………………………..……………………………….. 4-5

Problem Analysis …………………………………………………………………. 6-7

PEST / PESTLE Analysis ………………………..……………………………….. 8

Analysis of the Impact of factors and Change ………………….……. 9

Bibliography …………………………………………………………….…………… 10

INTRODUCTION

This assignment examines the company Monton Construction Ltd who provides building contract and shop fitting.
Monton Construction, originally called B.B.H., was established in 1989. In 2003 B.B.H. changes his name becoming a limited company. The company is a general contractor and trades for the private and commercial sectors. Monton Construction employs a small number of full time staff, between three and six, and some part timers and engages a variety of subcontractors. Its office is located in Dun Laoghaire.

For the first ten years B.B.H. worked mostly in home renovating, home extensions and the constructions of new houses. After this time an opportunity arose for an important shop fitting contract in the retail sector based over Ireland and the Isle of Man.

The company’s Mission.
We encourage the highest level of quality construction at fair and market competitive prices. To develop strategies to continuously improve construction competitiveness, to ensure the longevity of our company through repeat and referral business achieved by customer satisfaction in all areas including timeliness, safety, attention to detail and service-minded attitudes.

The company’s Vision
It is our goal that you continue to place your trust in us, to maintain the highest levels of professionalism, integrity, honesty and fairness in our relationships with our employees, suppliers, subcontractors, professional associates and customers.

Objectives
The construction industry can lead the way to better sustainability through a combination of:
Low carbon, energy efficient buildings, reducing, reusing, recovering and recycling waste generated in the construction process designing buildings to encourage people to be more environmentally friendly
Developing supply chain excellence in all areas of environmental sustainability
• Construction clients, developers and contractors working together to keep social and economic sustainability high on the built environment agenda
• Sharing best practice to improve the industry’s green credentials, competitiveness and ability to win more business
(CITB Sustainable construction)

SWOT Analysis

Strength
Weakness

Reputation among customers
Experience
Up to date technology in administration
Competitive prices

Not incorporated in the Internet
Little input in promoting Sales
Recession
Word of mouth as a way to advertise

Opportunity
Threat

To expand within the mobile phone market &communications
Use social media to increase sale
Build a web site

Increased competition
Slowing growth of world economy
Online competition

Strengths
With over 20 years of experience in the industry Monton Construction has built up a great reputation among customers, with a broad and updated knowledge to address all aspects of the business of construction, working professionally and providing individual attention to each customer’s needs and goals. All of the company’s services are competitively priced and would accommodate an affordable financing plan for customer if needed. (Spinieo, Inc.)

Weakness
The building and construction business became “the new way to start a business” for many non nationals when the recession hit Ireland. The recession also brought a drastic change in the economy, slowing down sales.
Another factor is the uprising of the Internet, which many businesses in this trade have not adapted or kept up with. Monton Construction lacks a web site, and interne networking in general; social media is not used as an advertising tool, Google ads or similar are not applied in the promotion of the company if any.

Opportunities
As Monton has worked and made good contacts in the mobile phone sector, there is window of opportunity for the company to extend and focus towards the relationship previously built with the purpose of renewing the and bringing in business.
This could be pushed further, making contact with other companies in the mobile phone and communication sectors.
Having a web site is essential. Social media could be integrated as many businesses use it already, it could be said is “The new word of mouth”. Monton Construction needs to be part of the B2C and B2B sectors.

Threats
With the ending of the Celtic Tiger the economy slowed down and so it did the demand in the construction sector.
There is a high competition at very affordable prices which makes it difficult.
Online competition is another worrying factor as B2C is surely growing in the building sector.

Problem Analysis

PROBLEM TREE
Effects of the Focal Problem

EFFECTS
Business’s sales not taken care of
Lack of new customers
Manager’s time not spent on marketing FOCAL PROBLEM
The Company could bring more business in

Not enough staff Manager overloaded with administration jobs No advertising
No website
Not in use of Social media
No advertisement used
CAUSES
Causes of the Focal Problem

Objective Analysis

The company needs to work on the Marketing and Sales areas in order to promote and improve sales.
Possibility of new customers.
Making new contacts.
Office staff using some time to work on customer service.
THE COMPANY IS DOING MORE BUSINESS
There is a new administration employee.
The manager has time to focus on other important aspects of the business as well.
The company does advertise.
The company has a web site.
Social Media is used.
Company has an ad in the internet. There is a new administration employee.

Project selection
From the analysis above we divide the tree as follows:
The company needs to employ an extra staff in order to cover all areas in a more professional manner.
The company needs to include the new staff in its budget.
Priority needs to be given to the company to become an ebusiness: set up a web site etc.

PEST/PESTLE Analysis
PEST stands for, Political, Economic, Social and Technological analysis. It describes a framework of macro-environmental factors. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. (WIKIPEDIA The free encyclopedia, 2009)

Political
Planning permission is required regarding signage and shop front changes (not new).
Planning permission required for housing development (not new).
Monton Construction has to register with Construction Industry Federation (CIF), (not new).
Relief from Capital gains tax (for the first 7 years of ownership) for properties purchased between 7th December 2011 and 31st December 2013, it is been extended by 1 year. (Revenue Comissioners, 2013)
Home renovation initiative (HRI), it will provide an income tax credit of 13.5 % for homeowners on home improvement expenditure of between €5,000 and €35,000.
(Barry O'Halloran, 2013).

Economic
The recession slowed down property development.
Since recession hip Ireland our best skilled people have emigrated.
The slowdown in growth of the economy resulted in reverting to domestic enterprise.

Social
No changes occurred in the social factor as to ownership or similar.

Technological
Online technology used by competitors is a definite disadvantage to Monton Construction.

ANALYSIS OF THE IMPACT OF FACTORS

Monton Construction has benefited already from having a web site; it is professional and needed not only to be at competitors level but also to attract more business. It gives full information of what services the company provides. You can make an appointment and request a quote. It has opened a new window of opportunities and might bring more business in.
Monton Construction has not employed anybody yet. There have been no other changes made to structure the business.

ANALYSIS OF CHANGE

The company’s Manager realized of the necessity to make some changes in order to survive. The manager does not take to making changes, and finds difficult to move from the way he has always worked and is not coping very well. It is understandable as the company has been functioning in the same manner for so many years. There are a few matters that need to be reinforced:
Accept that change is needed.
Agree to do some rearrangements.

Take action and start implementing the plan, formulate goals and study driving and restraining forces:
Develop a strategic plan
Add a new department
Change behaviours
Boost participation by those involved in solution of problems

“Resolve to promote positive attitudes toward change”.

BIBLIOGRAPHY

Barry O'Halloran. (2013, October 15th). business. Retrieved November 18th, 2013, from the irish times: http://www.irishtimes.com/business/home-renovation-tax-break-to-boost-construction-1.1561479

CITB Sustainable construction. (n.d.). sustainable construction. Retrieved November 17, 2013, from CITB Sustainable construction: http://www.citbni.org.uk/getdoc/cee12240-a0e3-4e1a-a164-f0bf27943609/Sustainable-Construction

Revenue Comissioners. (2013, October 17th). Citizens Information. Retrieved November 18th, 2013, from Capital Gain Tax - Citizens Information: http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_gains_tax.html
Spinieo, Inc. (n.d.). Strngths of Spinieo, Inc. Construction. Retrieved November 18th, 2013, from Spinieo, Inc. : http://spinieo.com/strengths.htm

WIKIPEDIA The free encyclopedia. (2009, October 21). PEST analysis. Retrieved November 18, 2013, from PEST analysis - Wikipedia the free encyclopedia: http://en.wikipedia.org/wiki/PEST_analysis