Creating a strategic business plan for a Nepalese construction company: a case study of Jhapali International Engineers and Builders. Creating a strategic business plan for a Nepalese construction company: a case study of Jhapali International Engineering and Builders.
Purpose of the thesis
Creating a complete business plan offers the opportunity to transform a business idea into a powerful strategy (Dickson 2007, 3). Developing an effective business plan not only helps the company to survive in the market, but also increases the chances of financial success.
Research background and motivation
I opened it and from the interview I understood that the company is new and there are limits on the level of work it can do. The strategic business plan is missing due to the number of senior professionals who are not well educated and follow the traditional method of planning and working.
Case company in brief
In addition, from the interview I understood that the profit margin of the company is very low even though the company has successfully completed a number of projects. I was very interested in researching the company's situation and applying my knowledge to help Mr.
Research questions
It is a form of sole proprietorship and is registered with the District Development Committee (DDC), Inland Revenue Department as a small scale industry. The company was founded in December 2009 in the Jhapa district of Nepal and is owned by a young entrepreneur, Mr.
Research methods and techniques
Framework of the thesis
Executive summary
Mission and vision
Market analysis
Market segmentation
Market growth and size
For example, the company should extract the actual data of percentage change which is mainly related to the demographic factors of the region and their purchasing power and interest in purchase. It is very important to consider age factor because different age groups have different expectations from the company.
Market trends and fashion
All the factors stated about market growth and size should be examined based on the similar situation of past, present and possible future behavior.
Competition in business
Business strategy
Decision making in small family business
Family members are responsible not only for running the business, but also for managing the family members and their relationship with the business.
SWOT analysis
Financial plan
Research method
Research approach
In this chapter I have described the rationale for selecting different methods during collection for this research work. The main goal of this research work is to understand the positioning of the case company in its operating market, analyze it and, moreover, develop strategies based on that to guide the case company in achieving its mission and vision. During this process, various research techniques were used, such as observation, documentation and interview methods.
Limitation
Besides that, interviews were conducted in the case company located country language which is Nepali language. Therefore, the fear or the shortcoming in this work is the lack of precise meaning during the translation of the language.
Research purpose
Research techniques in data collection
Documentation
Use of documentation is very important to back up information and to make an argument with its evidence from other sources. Documentation was used to find out JIEB's internal records, its position in the construction market and the facts about the situation of its industry.
Direct observation
Interview
Using documentation is very important to back up information and argue with evidence from other sources. Yin documentation was used to find out JIEB's internal records, its position in the construction market and facts about the situation in its industry. In the previous chapter, I have briefly mentioned that the case company for this bachelor thesis is newly established and there is some limitation in the project they offer to work for. In addition, I have also mentioned that the number of project completions will increase the company's revenue and experience level, and it will help the company to compete for bigger projects in the future.
Taking this into account, this chapter aims to provide detailed information about construction companies category in Nepal and their upgrade process.
Construction companies category
Class A
Provided that nothing in this clause shall be deemed to prevent the classification of a company with at least two civil engineers with at least twenty years of experience in public works projects or of a company with an engineer or equivalent as a shareholder or promoter, having experience in construction works to a worth of 60 million rupees in the last ten years as a grade "A" construction contractor. In order to achieve the standard for the class A construction company, it must e.g. have at least two thodolides, four levels, two dump trucks or trucks, three water pumps, three concrete mixers, five vibrators, one set of laboratory equipment, any out. of backhoes, excavators and bulldozers. Similarly, it must be certified by a mechanical engineer who had educational qualifications of at least one examination in mechanical engineering and obtained membership of the Nepal Engineers Association that the above machines and equipment are in proper condition.
In addition, all the above machines and equipment will not be sold and disposed of until at least two years from the date of their registration.
Class D
Finally, at least four items of the following equipment: loader, bitumen spreader/sprayer, water tanker/sprayer, motor grader, three-wheel roller, one-ton roller, air roller, bitumen paver, asphalt mixing plant, crane (excavator), forklift, crusher, compactor, vibratory roller, hydraulic auger , Benz and construction host. In addition, all machines and equipment older than fifteen years are not recognized for improving the standard of, and new registration of, the contractor. In the same way, one manages who has passed the certificate level in any subject, and one person who has completed the graduate level in commerce.
The requirement for machine tools and equipment in this class of companies is one water pump, level and vibrator.
Joint venture in construction business
There are similar provisions to Class A business for registration and use of machine tools.
Market position of JIEB
In addition to these, the company has a few employees who work for an indefinite period of time. All fixed assets of the company are used in the day-to-day work of the company. In addition to the company's work, JIEB rents this equipment to private customers and other construction companies to help with the construction of their private properties and construction works.
Such a small service helps generate additional income for the company and maintains relationships with other companies.
Executive summary
So far, the traditional method has worked well, as the company only undertakes small, low-value projects that do not require too much effort. However, in the near future, when the company is upgraded and they focus on a big project, they will need a strategic plan based on the current situation and understanding of future trends. Therefore, with the understanding of this question, in my diploma thesis I presented a strategic business plan for the company, which a suitable company can use in practice to achieve the set goal.
In the first place, the internal problem of the company is identified and efficiency of the corporate management is introduced.
Mission and vision
When developing a comprehensive plan, it is necessary to understand the current situation of the case company and their future expectations. Then the wider SWOT analysis is done for the case company to discover all its strengths that can exploit the available opportunities, overcome its internal weaknesses and eliminate potential threats. In addition, the strategic option for the case company is drawn and can help achieve the mission and vision of the case company.
Thapa has set a clear vision to become the market leader in eastern Nepal in its business character by the year 2018.
Key partners and strategy
It gives a good picture of the company in the market and the future opportunities to enter into joint ventures with large companies are also increasing. It is very important for JIEB to maintain a good relationship with these stakeholders to prove its strong existence in the market. In addition, there is also the system of direct communication between lower level employees and management, which makes them feel good and safe in the working environment.
Relationship with financial companies becomes stronger when there is continuous trade between both parties.
Competitive environment and competitor analysis
Although JIEB is registered as a sole proprietorship company, however, when it comes to planning and decision making, there is always a clash with other senior family members. First of all, the age and education of the entrepreneur and the lack of qualified labor force in the company makes him follow the traditional method of business planning. Secondly, due to her entrepreneurial brothers and sisters engaged in other professions there is a lack of support in the business.
Likewise, he lacks focus in his work as he always focuses on other profitable business areas.
Business decision strategy
However, if the company considers the mission and vision of JIEB, it should anticipate changes in management practices as early as possible because most family members do not have the technical skills necessary to achieve the mission and vision of the company. In addition, the company needs to identify the right person for the right role when necessary, regardless of whether it is. Recognizing the rights and duties of everyone as early as possible and establishing appropriate company rules leads to a good management system in the company and helps to resolve family conflicts in the everyday work area.
Therefore, it might turn out that the company is growing and furthermore it might be the right path to reach the established short term vision of the company.
SWOT analysis and strategic alternatives
The main objective of this thesis work is to develop a strategic business plan for the case company JIEB based on the current market situation of the company. To achieve the purpose of this thesis I first tried to study the nature of the case company and its market. This will help the case company to understand the requirements of the locals as well as the government.
To first answer this question, it was very necessary to understand the business nature of the case company JIEB. In addition, it was also important to understand the market that the case company focuses on and the products and services it offers. During the writing of this thesis, my main focus was to study the business nature of the case company.
