Date post: | 13-Apr-2017 |
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Company analysis Uganda BY PAUL KASULE.
Content
Mission and vision
Our long term objectives
SWOT analysis
PESTEL analysis
Five forces of porters
Competitors analysis
CPM and TOWS matrix
Strategies
Conclusion
THE VISION AND MISSION
vision
• To be the leading investment company in Uganda .
Mission statement
To add value to the stake holders by providing high quality financial services,consaltancy services working under ethical standards, provide reliable working environment, affordable prices, accessible and to ensure development in our operating environment .
long term objectives .
strategic ,
To obtain Large market share through ;
Customer satisfaction .
High quality products
Quick delivery and response .
After the implementation of the above Customer loyalty will exist which will lead us to our long financial objective of revenue and high profits .
THE SWOT ANALYSIS (internal factors )
Strength
High skilled man power.
Quick access to new technology.
Enough facilities for operations during
production.
Good strategic location in the
Kampala capital city.
• Weakness
limited capital to spread our services to all parts of Uganda .
Limited man power to deliver our services quickly.
Based more in central parts of the country
External factors .
Opportunities
Favorable government policy of incentives like tax holidays .
Growing market in Uganda .
Technology development in the country .
Good management and governance .
Increasing number of Ugandans working abroad .
• Threats
Rival of new competitors like jomayi and cytonn
Political instability and strikes in some parts .
Increasing inflation in Uganda around 7.7% this year .
High interest rate on loan .
Inflation trends
we
Five forces of porter
Threat of new entrants
Investment cord act 2000 requires an investor to have at least US$ 100,000 to earn a license .
Any company is subjected cooperate tax of 30%,capital gain 30% and dividend tax 15% .
high levels of Corruption in Uganda ranked 142 in world.
Bargaining power of suppliers
Numbery of suppliers of the same services like centenary and Baroda bank.
Increasing number of expertise thus providing cheap labor .
Bargaining power of buyers
• Quality services and uniqueness buyers are willing to purchase
• Affordable price of the services like land at 4million sh.
• Variety of buyers both foreign and domestic .
Threat of substitute products
• Products with the same qualities are produced which affect our clients.
• Same priced products are produced .
• New products and well branded .
• Rivalry among existing competitors
Almost the same price of our services are produced with jomayi .
introduction of new products and services like currency trading and land development .
promotions and media advertising .
What are the external factors which can affect our company?
• PESTEL-,
• Political factors .
Corrupt leaders .
Political instabilities in the some parts of the country .
High rates of taxes charged by the government .
Lack of Implementation of Policies. Leaders promise a lot but remains in papers .
Corporate tax rates In Uganda
Domestic company
• Corporate tax 30%
• Capital gains 30%
• Dividend 15%
• Interest on non government securities 15%
• Interest on government securities 20%
• Royalties (included in taxable income) 0%
Foreign company
• 30%
• 30%
• 15%
• 15%
• 20%
• 15%
Economic factors
Increasing inflation in Uganda around 7.7 %
Economic development strategies like infrastructures are under construction .
high Interest rate 21 -22% between banks and retail interest is around 24 %.
Growing market in Uganda .
Social factors
Life style of the people in Uganda (primitive and local )
Developing social media in Uganda with around 20 radio stations and 15 TV channels thus cheap advertisement .
Increasing population of young and educated generation contributes a lot on our market.
Technological factors
Introduction of advanced technology in the country like internet service which speed up;
• Management
• Construction
• Communication
Environmental factors
Environmental changes in Uganda i.e. Prolonged dry season
High Pollution level like in Kampala is around 82.18%
COMPITITOR ANALYSIS ITEMS JOMAYI WAKARI CYTONN
HEADQUATERS Old Kampala road Kampala control Kenya Nairobi SALES In 17 yrs. more than
50000 land titles have been issued
Limited sales since the company is new in the market .
Sales in Uganda still down but in Kenya and Tanzania are high with around 50billion projects .
SERVICES Architecture planning, Land surveying, Land documentation and Construction stone manufacturing.
Flower pots ,plants and grass, color rock stones and walking slabs and concreate and clays ,real estate ,architecture and urban development .
Real estate, land escaping , architecture services and buildings .
MARKET FORCUS Focus more on local market .
Uganda local market east Africa Kenya Tanzania and Uganda
STRATEGIES Social responsibilities like construction of schools
Global strategies agents in France and foreign countries
Social services like helping the orphans in the societies where they are operating .
WEAKNESS Not much design talents to up date the product designs .
Limited man power more casual workers are used
Concentrate more in Nairobi Kenya
STRENGTH Big domestic market share.
Variety of services offered
Already dominated all the countries of the east Africa .
CPM with in the company units. Critical success
factor
Weight Rating Unit one
Land n
property
Score
Rating Unit two
Real estate
score
Rating Unit three
Currency
trading
Score
Management 0.2 3 0.21 3 0.21 1 0.2
Quality 0.2 2 0.4 3 0.6 3 0.6
customer loyalty 0.2 3 0.6 2 0.4 1 0.2
Growth 0.17 4 0.68 3 0.51 1 0.17
Financial
position
0.13 4 0.52 2 0.26 1 0.13
Prices
competiveness
0.1 2 0.2 4 0.4 3 0.3
Market share 0.1 3 0.3 4 0.4 2 0.2
2.91 2.78 1.97
• From the above we are likely to use defensive strategy of divestiture because it’s now affecting the all financial position of the company and if we are to keep it we shall need a lot of money to make some reforms which is difficult now because we have got some more reforms to make in the other two units to make them more productive and effective in order to be competitive
CPM FOR MAJOR COMPETITORS Critical success
factor
weight Ratings HQI
score
Ratings Jomayi
Score
Ratings Cytonn
Score
Share market 0.15 4 0.6 4 0.6 3 0.45
Financial position 0.10 3 0.3 4 0.4 5 0.5
Quality of service 0.09 3 0.27 3 0.27 4 0.36
Advertisement 0.12 3 0.36 4 0.48 3 0.36
Customer loyalty 0.05 3 0.15 4 0.2 3 0.15
Global expansion 0.07 2 0.14 2 0.14 4 0.28
Price
competitiveness
0.09 3 0.27 3 0.27 4 0.36
Management
expertise
0.12 4 0.48 3 0.36 5 0.6
Customer service 0.1 4 0.4 4 0.4 5 0.5
E commerce 0.06 2 0.12 2 0.12 3 0.18
1 3.09 3.24 3.74
30%
33%
36%
RESULTS
HQI
jomayi
cytonn
Strategies to use
Factors to be improved Strategies to be used
Quality of the products , More advanced technology in production is our major
target to increase on the quality.
Global expansion , Increasing on the number of distribution channels by
Opening of more branches in different parts of Uganda
Kenya and Tanzania to compete with cytonn.
Customer service, By increasing our services through offering online
services and first delivering services and to employ more
expertise in the service departments.
Financial position, Use of backward integration with our suppliers like
equity bank Uganda in order to increase on our financial
stability.
TOWS
Compare
Strength High skilled and
trained man power. Quick Access to high
technology. Strong distribution
and supplier channels.
Weaknesses
Shortage of enough
manpower
Shortage of enough
capital
Located in central
parts.
Opportunities Increasing number of
financial and computer literate’s.
Growing market.
High rate of
development.
SO strategies
Increase on the
production and
introduction of new
products to meet the
growing market.
WO strategies
Recruitment of new
skilled man power and
opening up of new
branches in other parts
of the country.
Threats
Increasing inflation
Increasing
unemployment
Increasing
competitors.
ST strategies
Adaptation of new
intensive strategies i.e.
massive advertisement
In production to
increase on the quality
of services and sales
WT strategies
Employing more skilled
workers.
Market penetration in
order to expand our
services and to reduce
on the competition
• Conclusion
• Basing on our analysis the company is performing well however the environment is very competitive for the new company , More effort is still needed to overcome our competitors in order to achieve our vision according to the current business factors there is rapid growth and development which is from all units apart from currency unit and the company is to implement the mentioned strategies to ensure equal and rapid growth in all units of the company and we shall keep updating it to stay strong and competitive in the market .