ZETA COMMUNITIES A NEW ECO-PATH TO BUILDING CONSTRUCTION Case Study Solution
COMPETITOR ANALYSIS
Looking at the industry position of the Market for the Residential Home Constructions and the Modular Home Construction provided in the Exhibit-1; there is 72% market share for the Conventional home builders and the 56% of the Modular Home Building which is a mixed space and needed to contend by ZETA Company.
ZETA Company has different set of competitors in different markets from such as CELTEX and D.R.Horton in the residential home environment- being heavily funded with Billions in the finance backing to the SILVERCREST and others in Modular home market, the other school category had ENVIROPLEX and AMERICAL MODULAR SYSTEMS as competitors.
Though, despite rough market conditions and heavy competition, the organization is at a considerable benefit in terms of the price and the timings which is below competition, further the continuous learning cycle and the low timing of the completion has provided investor funding analysis which is being at the duration of the project on the interest rate method.
AREAS OF IMPROVEMENT
This part will consider the areas of improvement viable for the Organizational success for ZETA COMPANY.
STRATEGY IMPROVEMENT
The organizational strategy to be considered in this part will link towards the increasing the organization size and its projects. All The co-Founders of the organization are providing and utilizing their resources to increase the size with hands in many of the industries such as the Residential home making, Modular construction, and now towards the school classroom models. Rest of the operations of the organizations and other issues are handled as a second hand because visibility and growth is the main thing being sought by the organization.
There are options available to the organization which will enhance their vision and the strategy of the business in total, which are:
- BUSINESS PROCESS IMPROVEMENT
- TECHNOLOGY ACCELERATION
- And CONTINUOUS PROCESS DEVELOPMENT
The BUSINESS PROCESS IMPROVEMENT will provide the organization with details about its business goals, business processes, customers; and will provide them with improvement techniques to increase customer satisfaction and improve their business Processes. It’s a structured method which will identify the needs and wants of those charged with governance and will provide a strategy to be followed by the organization.
The TECHNOLOGY ACCELERATION METHOD is the use of technology to further the goals of the organization. The organization is a new organization with focus on the growth and is considering low costs. Including technology in the Business Process model will only enhance its capacity, revenue, and will save time.
The CONTINUOUS PROCESS DEVELOPMENT is the basic approach with the focus of a learning phase with every process and new ideas being provided by the staff or the management which will increase the productivity, and entire cost generation programs. This will provide a benchmark to the organization for its future strategies and projects.
FINANCING OPTIONS
The finance of the organization is needed for its projects and its growth agenda, the $ 5 million which the organization received from the North Bridge is sufficient for the organization at its startup, but for the other processes such as heavy research and a fully functioning in-house capabilities; the organization needs further finance to boost its growth agenda.
Further Finance, can be sought by different ways for the organization; one way is to provide an equity shareholding or partnership status with one of the heavy finance backed Construction Industry Giants or a Lending institution such as a bank, as Venture capitalist has provided the organization with money needs but its terms will be very heavy to bear by the organization; increasing its costs in other areas.
SUPPLY CHAIN CONSIDERATIONS
The Supply chain considerations for the organization is mostly related to different employee classes and cultures; Engineers, Architects, other consultants, and the extra labor which will be used in the factory and for the onsite purposes.
The supply chain method for the organization can be improved by the introduction of TECHNOLOGY such as the Purchasing functions of the organizations.
The improvement method related to the project can be analyzed if a CENTRALIZED PURCHASING SYSTEM can be put in place for all the different employee classes which can be brought in using a bulk purchase option to limit the costs. As ordering through different providers; the organization can setup up a purchasing unit which will enhance and monitor this separate centralized purchasing department which will integrate all the needs and provide the order.
Using E-SERVICES for the purchasing department will also be highly useful if the bulk purchase option is not on the table. During the construction phase, the materials to be ordered also needed other things which will happen time to time. An ERP (ENTERPRISE RESOURCE PLANNING) software can be used and provided to the different staff so that timely item availability is provided.
This will further enhance the profitability as this method will save time and other searching for vendor costs for the organization.
Another method which can be used in the supply chain process is the use of TRAINING provided to employees to work together to avoid professional and the cultural conflict and would increase INTEGRATION between department and classes.
COMPETITORS
One of the main methods of improvement and success for an organization is to consider what your competitor is planning and working for. This has to be analyzed by those charged with governance on a timely basis, so that the organization remains competitive.
One way to monitor this is through the usage of E-SERVICES such as using and tabbing internet sites and your client details to monitor the activity. DOW JONES INDEX and other areas will also help the organization.
Further, the rates in the production of per square feet for the organization has to be continuously re-checked so that competition can be tackled greatly.
Another way to improve on the Competition is to consider searching for an equity partner with one of the big names in the industry, but the organization has to consider other areas first as equity sharing will create independence problems.
ORGANIZATIONAL TRANSFORMATION
According to “FRENCH and BELL Jr. in ORGANIZATIONAL DEVELOPMENT”, Organizational transformation is referred to as a term which implies activities such as Redefining of the Business Processes, Redesigning, and Reengineering.
(JR., 1986)
Organizations do change overtime which can be in the form of change of the management through acquisitions and takeovers to the change in the policy due to market or the legislative constraints. For those matters; the most flexible and the most effective organizations, customer focus, and change in technological programs have to be continually addressed in a self-sustaining continuum.
The three type of Transformations as mentioned by the French and Bell are Improving Operations, Strategic Transformations, and Corporate Self Renewals.
The Change Management can be categorized according to the 3 areas of Organization, Processes, and People.
For the Change to be implemented through Organization; the plan of approach is through Competitive Benchmarking and Managerial Wisdom. This caters setting bench marks through measurement and other areas increasing the productivity as a total. Further the Wisdom of the management can be further used in how to assembling the process and the strategy.
For the Changes to be implemented through People and the Processes; the Six Sigma Approach, and the Kaizen Principle. The six sigma principle will provide the changes in the operations and the processes of the organization which will assess the business processes on the number of defects and this method provides tangible answers through the highly trained and professional employees of the organization.
The other method is the through the KAIZEN PRINCIPLE which incorporates through small improvements at first, then the increase of knowledge and personal involvement by the chose charged with governance. Then involving whole staff and standardizing the process.
EXHIBITS
EXHIBIT -1
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