Abc Corporation is a company which started in April of 2003. The Business has been on a positive upward growth since its first year with only one mediocre year which was in the global economic crisis. The Company is privately owned by the Joe Smith and he has recently brought his sons into the business as of 1 April 2012.
The Company’s business model is made up of three fronts or customer segments. These are branded as Ceco Equipment, XYZ Machinery Rentals and EXCo Screening and Crushing. These names will be referred to further on in this report.
XYZ was originally where the business motive was started with Joe starting after having sold his shares in his Fathers hire company. Having the vision of employment for his sons, he developed the idea of manufactured items for earthmoving equipment which is where Ceco was developed. Ceco then branched further, after the General Manager successfully was importing hire equipment, into the Screening and Crushing sales and hire which we have just about to embark into making this a separate division for which in this exercise I will refer to as EXCo.
What I will now seek to cover on now is the running of the business in the areas of Management, Finance, Marketing, Sales, and Operations.
MANAGEMENT
The business in Management is made up with the Director having total responsibility of the business. The General Manager from then has the response of setting the direction for the areas of middle management which as part of the Business Structure is Sales, Finance, Marketing and Operations. Management meetings are held monthly with the Areas of Business, XYZ, Ceco, EXCo, Director, General Manager.
Surveys and performance reviews have showed that Management structure is not clear with family tending to override decisions that really shouldn’t be theirs to make. Management struggles with implementing change away from the family culture; however they are looking at ways to implement change in setting out Job Descriptions monthly and a live Organisational Structure and therefore being able to drive the business to ultimately a Culture Driven Business.
FINANCE
Finance is predominantly managed through a limited software system called Cash Manager; however this is being replaced for TRUEERP software to manage all aspects of the business. Accounts are managed through our accounts department which covers the divisions of XYZ, Ceco, and EXCo. Abc Corporation has a team member responsible to each, Accounts Payable and Receivable. End of month reports and Quarterly accounts are produced through a Contract accountant. Financially the company shows stability, however with growth they will need to manage this carefully.
MARKETING
Marketing is run in the company by a Marketing Manager and meets the requirements of the Sales Leaders for the divisions of XYZ Ltd, Ceco Equipment and EXCo. The Market sectors are as follows for the Abc Corporation.
XYZ Machinery Rentals target market is the local region of the Wairarapa, targeted at Construction. The Team at XYZ believe to have 80% of the market. Growth in the area will only increase as infrastructure improves. Reason’s XYZ hasn’t looked to business further afield is due to strong Competition presence in the nearby areas.
Ceco Equipment’s target market is the Country of New Zealand, targeted at Excavator Re-sellers and is looking to venture into the Australia Market. The Market value in New Zealand is in the region of $35 Million and Australia looks to be $200 Million.
EXCo Equipment’s target market is the Country of New Zealand, targeted at Quarry’s, mines and Aggregate producers. However, web presence has helped in this division with over 50% of Sales in 2012 to Countries of Philippines and Fiji.
To date the Marketing department is predominantly focused on the growth opportunities of Ceco Equipment and EXCo. The developments on the marketing front which has been really the way forward for the company has been on
