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Investigation and evaluation of environmental analysis

This assignment was presented with to me as well as to everybody else in the group by Ms. Karen Abberton. It really is requested to be done as part of the course work experience to be able to observe how well students grasped business management composition of the company they completed their work experience in. The quick for this task was given to us on the 16th of September 2009 and was wanted to be posted by the 16th of Dec 2009. Being a business course scholar it is very important for me to understand business management, how a well-organized business works and how it can change the wellbeing of a business. In order to create a successful company or even to upgrade an existing one, we should really know what opportunities this group has. We have to be able to position the organization on the market level against its competitors if there are any. Environmentally friendly analysis of an company helps us to see negative and positive elements of the business, what in future might make us change a few of the strategies to make the company well informed and invulnerable.

3. Methods of procedures

Quite a few different sources were used by me to be able to construct this report. To begin with based on the info received during Marketing Management Classes in Balsbridge School a lot of handouts were given if you ask me as well as cases predicated on work of real existing companies and sensible exercises. Also predicated on my work experience in KWE World Exhibit where I have spent over two years working as Exports coordinator. I've included mainly extra research and applied educational theories in order to aid my assignment. Books, internet and magazines.

4. Findings

4. 1 Description of organization

Is a Freight Forwarding International company which started its business in 1948 and was set up in 1970 in Japan. At the moment there are 297 office buildings in 192 places in 31 of the world it and utilizes over 8, 000 people surrounding the world. It really is a extra tall company with LTD-limited Liability. It's product is the service the business provides to its customers. KWE is one of the leading freight forwarding companies on the planet. Domestic and international air and ocean freight forwarding business, trucking company agent, traditions agent, and travelling agent. You can find two office buildings in Ireland: Dublin and Cork. Dublin office is situated beside the Dublin air port in Horizon Logistics Recreation area. It employs 26 people employed in the office and 1 person working as sales representative going to prospective customers, (so called sales on the road). Dublin office organizes imports and exports of freight by road, sea-ocean and air. It has been established in Ireland in 1998 and managed to gain and keep quite a number of big and growing customers. Some of them are quite known pharmaceutical companies like "Takeda", "Astellas". "Takeda" is has been Dublin's branch customer for over a decade and there are two people in the company who are in charge of "Takeda" consideration. "Astellas" is a fresh pharmaceutical company which imports and exports up to 5 a great deal of cargo weekly with the KWE's help.

I can't go any further until I speak about such a well known customer of KWE as "Dell". Dell have been KWE's customer for quite a long time, but as far as I know right before I left the business last springtime Dell moved its main creation to Poland which means the bill was lost. You may still find some ventures but only occasionally.

Below I'd like showing the framework of KWE in a graph. The first chart will show the primary offices and the next chart gives information of the Dublin's branch.

Now I would like to indicate the countries which go under the guidance of the areas shown in the graph:

Americas: Brazil, Canada, Mexico, USA

Asia and Oceania: Australia, China, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, UAE, Vietnam.

Europe and Africa: Belgium, Czech, France, Germany, Italy, Ireland, Netherlands, Poland Russia, South Africa, Sweden, U. K. , Switzerland.

Japan is the top office, each country should report to the headquarters main office, and the head office main office accounts to Japan.

Dublin Office Graph:

As you can see it is a extra tall company, but let's start from the bottom.

Each employee should report to its supervisor, the supervisor reviews to the division director and the director should are accountable to the M. D. For Example I would report to Sandra White, she in her turn would are accountable to John O'Shaugnessy and John should are accountable to Thomas Weppelmann. The truth is Thomas Weppelmann is responsible for more than just Dublin office. This means if the problem is not so big it will be resolved within the company, but if a decision should be made like who to make redundant than Thomas Weppelmann will have to take part in the ultimate decision, but nonetheless the thoughts and opinions of John O'Shaugnessy is essential here as he spends more time with his staff and he recognizes everyone's performance expertise.

As already said the company is a freight forwarding agent. Its job is to safely carry goods from point A to point B, by making use of haulers, transport lines or airlines.

Sales Division: Director Karl O'Reilly Make Fuller and Josephine Wipe out under his supervision. The purpose of the division is to market the business's product, which is service. They are really a kind of company's advertisers. It is also under their responsibility to give price estimates to any customer inquiring a service to any destination of the world. Sales division is the start point of any delivery. They should know:

1. The type of cargo

2. Where is it heading to?

3. Measurements and weight of goods

4. When the products can be ready for transportation?

5. What is the desired particular date of vehicles?

And a lot more, the reason I say a lot more is because each customer and each kind of cargo is different in its way. It could be smaller or bigger, it could be immediate on normal, it could go to different locations and so on, it could be different kinds of goods etc.

The sales section goal is to provide customer the feeling that we will be the only company in the united states who can offer the cheapest, the safest and the best service off all. The information they provide to the potential customer should be as accurate as possible, in order to avoid any issues later down the line.

Imports Section: Eamonn Grogan and David Howell are responsible for Air Imports, the purpose of these two people is to continue the brought in cargo according to government rules and regulations and to ensure that little or nothing bad happens to the cargo from the moment it gets there into Dublin and before minute it is delivered to the final vacation spot. They should ensure that the info they fill in the customs docs should be 100% right, because any wrong steps or incorrect information can lead to big fines for the business.

Paul Byrne is coping with DHL accounts, his job is to provide for street exports and imports.

Sarah's job is to look after sea imports and exports. She should become aware of the timetable of the ships and feeder vessels; she should daily check if the ships with different containers came into the transit port and left it as pre the time timetable. Within the import side the procedure is just about the same as air imports, all the goods should be customs cleared and delivery structured unless customer wishes different.

Exports Division: Sandra White, Joanne Howe and myself, responsible for air exports. Duties include negotiating the costs with the airlines, checking the post flights on daily basis, organizing pickups and deliveries to air port.

I was working in mid-air Exports Department. I personally was responsible for some of the imports and accounts jobs as whenever i joined the company there wasn't too much job in the exports department and folks from other departments used to give me staff to do. In general my main responsibility was looking at the post flights in the mornings, than I got setting up the airway bills with the day's shipments organizing collections, traditions clearance for the shipments. My duties also included Cass Records twice per month - they may be charges from the airlines which have to be examined if the portions to be paid match the sums on the bills, information for customers, previously mentioned "Astellas" bank account is one of the customers who require every week and monthly accounts of the shipments KWE deal with for the coffee lover it was also one of my obligations.

Accounts team: Sylvia Smith is the H. R. representative but "geographically" she actually is part of the accounts section, and her job is directly related to accounts. She actually is responsible for payroll. Her obligations include to staff and operate the business.

Nicolla Uzell and Michelle Boylan are responsible for the accounts of the company. I believe this department's obligations need not be described.

Avril Reilly - receptionist, she actually is the first person anyone speaks to on the telephone. She has to sort the post, ensure that no unattended people are on the place of the business.

Warehouse: Mickael Tallon ahs 3 people under his guidance, their tasks include packaging the goods for exports, delivering cargo and documents to the airport. Collecting cargo from the customers, delivering imported cargo to the client, labeling the shipments with the referenced stickers.

That is virtually the composition of the KWE and the explanation of the various department's obligations.

4. 2 Inside influence on business.

Tangible assets: they are the things which is often touched; we can also call it touchable: furniture, transportation, equipment, it system.

Furniture is the one of the property KWE has which belongs strictly to the business as well as move (Kintetsu Dublin is the owner of one company car which is mainly used by the supervisor but it could be also utilized by any person in the staff unless they don't possess a full driving license), Also KWE is the owner of a 20ft container truck which is utilized on the daily basis for selections and deliveries of the cargo. Equipment is a house owned or operated by KWE, it offers copy machines, printers, fax machines, personal computers, a fork lift up in the warehouse. IT system is another tangible asset the company owns. It belongs wholly to KWE and cannot be used by some other company.

Intangible assets:

The difference from the tangible resources is the fact that intangible assets can't be physically touched but it doesn't mean that its value is less than of these tangible ones.

Intangible values of the KWE are: name, intellectual property.

KWE name is a well known brand in the freight forwarding business group. KWE is in the first ten biggest and known freight forwarding companies of the world. KWE has a good service reputation, and a good romantic relationship using its customers built during many years by making use of the services provided.

Intellectual property is one of the strongest possessions of KWE. Most of the people working for the company have many years of experience working in the business, which is reinforced by doing different courses every once in awhile, which gives personnel the ability to be up to day with any improvements.

Capabilities:

It is the ability of the company, its staff to achieve the targets, which lid to the success of the objective.

What KWE able is of: each section has an goal which is to gain as many customers as possible, and customers are money - revenue. But how strong are the capabilities of the company to attain. What KWE are well capable for is to keep the existing customers, of course it gained a few new ones within the last period of time but only a few not because they're not capable to, because of the already mentioned economical crisis.

Value chain analysis:

Is one of the tools we may use to start to see the company's steps used for creating the best possible value because of its customers. It shows how the product of any company looks from its infinitive conditions and step by step it becomes a finished product which is a value for customers, who are ready to use it only in its final, result condition. In KWE it's the service they provide. But the customer is not interested and some of these don't even really know what is used to provide the service they might need. Value string is a string of strategies, and action used that happen to be applied in any organization. It offers:

  • Inbound logistics
  • Operations
  • Outbound Logistics
  • Marketing and sales
  • Service

I would like to demonstrate this string in a genuine example. I will describe per day of work dealing with a specific customer in exports team.

Inbound Logistics:

1. 10 am a call received from a ones off customer by our sales department for an immediate shipment to Japan. Customer needs a quote.

2. Sales get the information required to be able to carry on the quote.

3. Sales let know the air exports division in regards to a potential shipment to Japan and the info about the products, dimensions and weight for the exports team to book a variety.

4. If the shipment was heading let tell Canada than sales would need to contact different airlines for a estimate, but because KWE have an everyday consol heading to Narita and Osaka in Japan they understand how much it will cost the company for that one delivery. All sales do is accumulate collection payment different airline fees, security if applies VAT and give the customer an estimated time of arrival of the shipment to the ultimate destination and the full total price. If customer agrees to the price the first part is performed. Customer cannot refuse to go ahead because of the ETA - estimated time of entrance, because any other airline can provide whether later arrival time or the same one, the choice here is not a major one. There are only 2 airlines flying directly to Japan from London, none of them from Dublin.

The inbound logistics part is done.

Operations:

After shipment's appearance into KWE warehouse it has to be repacked (usually put on a pallet and covered with plastic material cover to avoid any lack of the bins from the pallet or water damage and mold and so forth. ) A sticker with accurate ref number matching the reference point on the documents must be labeled to the box now the delivery is preparing to be filled on the vehicle to go the dock and hook up Ulysses vessel to London.

Outbound Logistics:

It is the primary procedure for the transportation. Next morning exports office have to band Japan airlines in order to see if cargo got with their warehouse for the cut off time to go on the plane. If so we can advice our customer, if requested, that the delivery is within London as slated and should get there Osaka next morning.

Marketing and Sales: As you can see the sales team does its job in the start of this operation. And in this specific case all they can do is to send a thank you for using our company service and a kind of advertising to the new customer who can happen to be not just a once off one. Advertisement can include the info of thee services KWE provides and enabling the customer know about different spots and our availability anytime with mobile all the details included and company mobile statistics.

Service:

Is the final end result. The cargo introduction to the final destination point. It is with time as guaranteed. All safe without any damage, this is where the value to your product is added in the eyes of the customer. And believe me this customer will advice our services to its friend, and that is how KWE becomes a brand name.

The main being successful point for any business is - TIME. A firm cannot become famous in 1-2 calendar months time as soon as it exposed.

4. 3 External influence on group.

Marketing Environment involves the macro and micro-environment. The macro-environment includes large public forces that affect micro-environment, and usually can not be controlled by the company. It is an external structure which includes the following:

  • Political
  • Economical Opportunities and Threads
  • Social Infestation and Porter Five Forces
  • Technology
  • Natural

And micro-environment includes makes that are under control of the company. Micro-environment influences the power of the business in creating a required service to its customers. It really is an internal framework which include the following

  • Suppliers
  • Customers
  • Company Advantages and Weaknesses
  • Marketing intermediaries
  • Publics

PEST evaluation.

Quite often someone who starts an enterprise doesn't realize how important environmental factors for an organization are. I mean the united states a certain business will be started in. It is very important for a new business owner to understand and to be aware of the political, cultural, economical and technological factors of the united states the business will work in. A PEST analysis is one of those tools that help understand the external environment of the business.

P - Politics S - Sociable

E - Economical T - Technology

Political factors

Can have a direct impact on the way a company manages. This factor does not depend on inside work of the business. Only decisions made by government impact the operations. Political factors include such areas as:

v What's government coverage on the cargo transport?

v Labor Rules

v Government Steadiness

a) There's a law referring to imported and exported goods in Ireland. This would include: goods brought in or exported to or away of Ireland have to be customs cleared; all goods need to be declared on the paperwork, airway bills or invoice of ladings. There is a law referring the goods for resale or personal effects goods. There's a law concerning import or export of medical goods and many other regulations which strictly have to be obeyed by the transport agencies. b) Labor law can affect a company's performance a great deal. Age range ago people can work 24 hours per day and for very cheap pay, nowadays people cannot work more than 4 time without a brake of just one 1 hour no more than 8 hours a day. Total hours worked in a week should be no more than 40 time. Min pay each hour has been applied. During my job in KWE I pointed out that the rules and labor law regulations were implemented as per legislations, every employee has been given a duplicate of the KWE handbook where everyone could see a detailed explanation of the company's policy and entitlements steps c) All of the factors included above depend on how stable the federal government is. The above can be easily changed due to authorities change or administration instability. Federal government changes or coming of the new political parties can effect the organization's total figures. Companies feel easier to move the business enterprise to a country with growing overall economy somewhat than keep it in Ireland, where current economic climate is down at present. Poland for example, labor is cheaper, government fees are lower. Transport laws are softer. This employs with lack of clients for KWE.

Economical Factors

All types of organizations are influenced by cost-effective factors locally and internationally. It doesn't matter if the economy is at a increase, recession or recovery each one of these affect consumer self-assurance and behavior. Economical factors have an impact on the purchasing electric power of potential buyers. It also affects the internal and external overall economy. Cost-effective factors include:

v Exchange Rates

v Economic downturn

v The level of inflation

v VAT rate

a) Interest levels influence the company sometimes positively, but sometimes negatively. Because KWE handles customers and brokers all around the globe, invoices the business gets are in several currencies, therefore the exchange rates which are in place of the payment day can affect the total amount to be moved for payment in forex. Quite often repayments are queried as a result of exchange rate changing every day.

b) The present economical turmoil negatively influences not only KWE but the general business framework of Ireland. People get redundant, companies lose experienced personnel. A team which is utilized to perfectly satisfy its duties when everyone is in, looses the ability to do it in case of a lot of people (not just one) of the team are not present. Performance of the firms is down, because not really a full team works in the functions department.

c) Degree of inflation if it lows down than the customers aren't very comfortable in using a service or buying a good.

Social Factor:

Social factor include the demographic changes of the country and of the globe. KWE is a company that has offices around the globe so not only local demographics impact the business. These factors have an effect on customer's needs and size of potential market segments. Information about demographical situation in Ireland are available on the site: www. cso. ie. Cultural factors include:

v How are views indicated?

v Get older

v Job attitudes

Technological factors.

Technological factors are incredibly important tools for a business. Current technology can change the amount of creation, can improve peoples' work performance and can transform internal environment of a business. Technological factor includes:

v Impact of the internet

v Software

v Online Customs Clearance

Internet is one of the most powerful technology inventions that have been ever created. It helps people instantly receive and send information to and from agencies, customers, suppliers etc.

Software- found in KWE for stamping the documents for cargo and invoices was an old one, right before I left the business people started to be trained to use a new software which was much easier to use, more friendly and may save a chance to staff as a result of features and benefits it got and the old system didn't.

Online Traditions - a couple of years ago I order to customs clear exported or imported goods the staff of the company were complete all the traditions declaration affix the documents for the shipment and physically go to the customs office and hand everything in. it was taking time but sometimes days and nights to traditions clear the cargo. It was a problem for more folks you can imagine: vehicles agent, customer, customer's customer. . . etc. After that a web system was brought to life to customs clear the goods. It kept people time increased the shipments, increased performance and increased the profits for traditions office (which is regulated by the federal government), and for freight forwarding brokers.

From this examination we can easily see how the Infestation analysis can transform the performance and could be predicting the near future of a business even though a Infestation as we know is an external factor which doesn't hinge of the business's strategic. The main of most four factors of Infestation for KWE will be the PET. We are able to notice that technology had a huge impact on the business and freight forwarding business itself; inexpensive factors like exchange rates have long term influence different regulations and rules like the goods imported within EU 're going under T1 status this means they don't have to be traditions cleared and it eases the procedure and makes it cheaper as no traditions charges apply. It was said that on tomorrow's budget meeting 09-12-09 the federal government wishes to bring the VAT up, which will hit the customers and KWE even more, adversely. It will work out better for companies to choose the goods they need across the border in Great britain as the VAT is a lot lower there.

Porter Five Porters

This model was developed by Michael E. Porter' he wrote a reserve called "Competitive Strategy: Techniques for Analyzing Business and Opponents. " Since then, people use this structure for analyzing a company's industry composition and its corporate and business strategy. Porter detailed five causes that shape every single industry and market. These causes help us to investigate from the intensity of competition to the profitability and elegance of an industry. The structure below:

Threat of replacement.

1. Enough time is wrong (overall economy is low). Bad time for any industry to be started right now.

2. This sort of industry might need a much bigger capital to start out the company when compared to a local shop for example.

3. A lot of companies producing the products for exports re-locate of Ireland to cheaper countries in Europe or Asia. (Dell relocated to Poland, Xilinx-who were one of the biggest customers of KWE for practically 10 years, shifted to Asia) Cheaper countries means: cheap labor, cheap authorities fees, VAT on imported goods and so forth.

Threat of new entrants.

1. If we look to substitute service KWE is providing than rivalry is quite high. There tens of companies at the moment competing for business in freight forwarding website who may offer better service or rates. Because of high number of opponents with the same strategies and a lot of them being the same size the quest of KWE and a great many other organization for the reason that industry is to just stay static in for as soon as until things pick up.

Power of Provider.

Suppliers just like KWE are not in a very strong position at present. KWE can decided to go with from many different suppliers and negotiate the rates to KWE's gain. From many years of working in Ireland KWE managed to setup accounts and also to create a business relation numerous different suppliers, so at the moment if they move in one to another it will not be a totally new one which means you will see no switching cost engaged. Switching doesn't have an impact on KWE it only affects the airlines, trucking companies or feeder vessels.

Power of buyer.

This is exactly who's in an absolute position at the moment. If we look at it, it can be whether KWE or their customers in this position. Customers now succeed as they buy cheap travel of cargo worldwide. KWE is victorious as well as it will buy cheap service from its distributor another side than it is the fact KWE have sell thing they for really cheap as well, therefore the income they make at present is minimum amount.

Competitive rivalry of freight forwarding business.

Conclusion: from the point of view of new entrants into the business rivalry is bare minimum and from the point of view that customers may move to a substitute company, rivalry is maximum. Competitive rivalry is high for KWE at the moment. So we can not say for particular now that there is certainly someone in an absolute position in today's cost-effective crises. Product can be easily substituted, suppliers can be easily substituted, each of them will buy cheap and markets cheap. The sole definite winner is the ultimate consumer like us who doesn't buy imported goods for resale. The prices in Ireland on different products reduced a lot. The sole problem is that the ultimate consumer does not have the ability to buy as the income of men and women is suprisingly low and even worse people lose their jobs.

4. 4 Internal and External affect on organization

SWOT analysis

Strengths:

v Staff

v Name

v Experience

v Global coverage

v Long-term contracts with suppliers

v Consolidation

Weaknesses:

v Price of Services

v Large number of players

v Staff

v Overseas agencies.

Opportunities:

v Funding

v New Services

v Staff training

v Technology investments

Threats:

v Economy

v Falling Sales

v Cash Flow

Internal examination

Strengths of KWE Kintetsu World Exhibit:

Staff - is one of the most important strengths of the business. A proper trained and experienced staff is company's biggest benefit.

Name - KWE is a favorite, recognized name in freight forwarding business area. Companies who source different kinds of goods worldwide are well acquainted with KWE - as a freight forwarding company.

Experience - A long time worked in freight forwarding area provides company an edge.

Global Coverage - KWE provides services into main and supplementary destinations worldwide. It could deliver any type of goods into most towns on the globe.

Long terms contracts with suppliers - provides KWE the possibility to offer its customers competitive rates as the rates they may have with the suppliers are based on long term romance.

Weaknesses of KWE Kintetsu World Express:

Prices of Services - Air freight for example, some competition might have their own planes flying to different destinations worldwide (ex. DHL) of course no subject how low the rates are DHL offers to KWE they can steel offer cheaper travel to the clients and KWE's rates are going to be higher in comparison.

Large range of players - a whole lot of competitors in freight forwarding business quite a large number of which might offer better rates and bigger service

Staff - as well as staff can be a strength it can be a weakness. Some employees aren't very experienced in doing their job; some aren't team players which is vital in an group. It gives beginning to a vulnerable operating performance.

External analysis.

Opportunities of KWE Kintetsu World Express:

Funding - Opportunities could help the business in present economical crisis to get new customers. Example: Invest in company's transport; trucks - 40 ft. containers may help offer customers cheaper transportation charges on road freight.

New Services - could gain new customers or provide home based business for existing customers.

Threats of KWE Kintetsu World Express:

Economy - is one of the exterior factors of macro-environment. As said before it doesn't rely upon the company's strategy. That is just what happens in today's economical environment, when overall economy negatively influences the business. People losing jobs, sales drop, gross annual profit targets fail to be reached and so forth.

Falling Sales - this is also what is happening at the moment due to inexpensive crisis. But it can also happen when market rises, with respect to the company's marketing management. How good are the strategies of the company, and how useful are they for the business.

Cash Circulation - anticipated to cost-effective dropdown there is no cash flow as such going into the corporation at present. And undoubtedly it negatively affects the company's income side of accounts.

5. Conclusion

From doing this report I can say that I found the business I used to work in from a totally different point of view. It made me realize how many difficulties can arise in fulfilling the key goal of the company. And undoubtedly it taught a lot of new things which are involved in ruling a company. In this assignment you will be able to read an environmental evaluation of the company I used to work in. The business name is KWE Kintetsu World Exhibit. A couple of three sorts of analysis which help to analyze an organization, analyze how it works, what is the future and what the company's management can do to improve its performance strategy to be able to raise the profit figures.

There are four types of evaluation: SWOT, Infestation, Porter Five Causes and a value string analysis.

You will be able to see a specific description of different aspects in the evaluation and to know how KWE's inside environment works and what negatively or positively affects the company's exterior environment. You often will guess even before you begin reading this statement that there very few positive things going on for the business in the present economical crisis. But thus giving us the chance to start to see the opportunities the industry has following the economy picks up.

6. Recommendations

If I could now speak to the manager of KWE I'd advise those to introduce their employees in to the SWOT, Infestation and Porter Five Porters examination of the business as people would think more carefully before producing an activity.

  • 7. Bibliography

    Philip Kotler 2000 Marketing Management, Millennium Release, NJ, Prentice -Hall.

    Margaret Linehan and Therese Cadogan 2000 Make that class Marketing, 3rd edition, Ireland, Carole Lynch.

    Newspapers.

    Hand outs distributed by teacher.

    Internet websites: www. marketingteacher. com ; www. valuebasedmanagement. net;

    www. kwe. com : www. valueabasedmanagement. net ; www. google. com

    Elena Vozniuc Page 2

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