Professional Documents
Culture Documents
SUBMITTED BY: HIMANSHU SHARMA RAMAN KUMAR HARPREET SINGH KAMRUL AHSAN
INTRODUCTION
Victoria Heavy Equipment Limited was established in 1917 in Victoria, British Colurabia to produce horse drawn log skidders for the forest industry. The young firm showed a flair for product innovation, pioneering the development of motorized skidders and later after diversifying into a crane business, producing the countrys first commercially successful hydraulic cranes. The Brain Walters Sr. was the chairman and the founding man of the company. The chairman paid close attention to the crane business and in 1977 he decided that victoria would focus on cranes and will go exclusively in the international market.
CONTINUED:
At the time Brain Walters Sr. retirement in 1990,it was clear that crane business has been a good one. The companys sales and profit were high and victoria cranes were well in the exports and international business also. After his retirement in 1990, his brother James Walter succeeded the company and exercise his personal control over the companys operations. Victoria was continuously increrasing its position in market. But in time as the load was continuously growing James health began to fail and the companys general manager John Rivers was given responsibility to handle companys operation. As James walter suffered a heart attack his brother Brain walters took over the companys U.S. operations and John Rivers was doing work with him.
CONTINUED
When Brain Walters took responsibility for U.S. operation the firms distributor was selling only 30 -40 cranes per year. But other companies were selling more than victoria 150 cranes in a year. As others were selling more than him he quickly cancel all the existing in dealerships as the dealers were not selling more so that he could again form hi organization structure so as to beat other players in the market. As he changed the strategy other companies understood that he wanted to gain a foot hold and a solid reputation in U.S. market.
MARKETS:
There were two important segments in the crane market:- Custom built cranes And Standard cranes. The company was in both the cranes manufacturing. Two important markets of victoria were United States And Canada. The U.S. market was approximately $ 630 million and share of victoria was 15%. In canadian market victoria share was 60% but it was small in revenues only $66 million. The squamish plant producin about 150 cranes were supplied both in canada and united states.
PRIMARY CONSUMERS:
The primary consumers in the mobile crane industry were contractors. As the victorias competitior Washington cranes supplied cranes in time and its service was good and in time spare parts victoria was tha not good. So if cranes were not delivered at right time the contractors would lost the contracts and no contractor will like this. As victoria prices were high than the washington cranes so contractors were preffering washington cranes. So for this victoria reduced its prices but still didnt do well in the market.
COMPETITORS:
As the worlds second largest producer of cranes , Victoria faced competition from 5 MAJOR Crane producer which were more larger and diversified. 1. Washington crane of U.S. 2. Texas Star of Mexico. 3. Toshio of Japan 4. Sato of Japan The major competitors of Victoria were more diversified and were having more market share than victoria but victoria was in number two.
ORGANIZATION STRUCTURE:
As the problems had ended Brian Walters semi retirement and brought him back into the firm full time. Although sales were growing but the company system was not good. As the system of the company was totally centralized so the development of company was not growing. The root cause was centralization as most workers directly report to the General Manager John Rivers. The walters thought that if we need to grow more we have to change this system.
CONTINUED:
As there was a conflict in between the president and the chair man the whole company was in a conflict. First of all the centralized system. As the system was removed more an more were resigning from the company. As they all wanted the autonomy power as they dont want decisions to be taken by small managers rather than by top managers. The executive thought that the structure was not appropriate As some one put in : The semi independence of the operating companies and the lack of real leader ha led company in poor coordination and low market share as because of internal problems.
SWOT ANALYSIS:
STRENGHTS: Operating in a global environment around the globe Victoria Heavy Equipment Limited operate well in countries as Victoria Heavy Equipment Limited performance is highly influenced by the political and legislative conditions of countries like in Europe. For Victoria Heavy Equipment Limitedlegislation, the government encourages providing mix of job opportunities from flexible paid jobs to highly skilled, higher paid jobs (Balchin, 2004).Victoria Heavy Equipment Limited understand that business has great impact on jobs and people factors being in and labor intensive sector and employs large number of workers offering high level of loyalty and therefore represents desirable employees.
WEAKNESSES:
One of the influential factors on the economy is high unemployment levels, which decreases the effective demand for many goods, adversely affecting the demand required to produce such goods. These economic factors are largely outside the control of the company, but their effects on performance and the marketing mix can be profound, expected to contribute greater amounts to Honda's profits over the next few years. Victoria Heavy Equipment Limited are affected by any slowdown in construction market and be exposed to market concentration risks. Some government legislation and policies have impact on performance of Victoria Heavy Equipment Limited, such as demanding payments from suppliers and changing agreed prices retrospectively
OPPORTUNITIES:
Several trends indicate that Victoria Heavy Equipment Limited have moved toward variety of social changes. Victoria Heavy Equipment Limitedincreased the amount of car manufactured items available. Demographic changes such as selling population, to focus on added value products and services and focus is one key to the business, supply chain and operational improvement at Victoria Heavy Equipment Limited . The type of goods and services demanded by consumers is the function of Victoria Heavy Equipment Limited social conditioning as well as consequent attitude and beliefs as Victoria Heavy Equipment Limited is aware of business issues that are always changing. Technology at Victoria Heavy Equipment Limited is macro oriented environment variable which has influenced the development of Victoria Heavy Equipment Limited products and services quality.
THREATS:
During the year 2003, there has been pressure on Victoria Heavy Equipment Limited and managers to acknowledge full responsibility to society, and act in ways as to which Victoria Heavy Equipment Limited benefits in the society are known. The societal issue threatening Victoria Heavy Equipment Limitedhas been environmental issues, key area to act in social manner, by recognizing broad ethical standing. Victoria Heavy Equipment Limited social responsibility is concerned with ways in which there exceed to obligation of stakeholders specified through regulation and corporate governance .