British Consolidated Agricultural Machinery Co Ltd Case Study

GET HELP INSTANTLY

Place Your Question Here

British Consolidated Agricultural Machinery Co Ltd Case Study Introduction

British Consolidated Agricultural Machinery Co. Ltd. is an age old company created by the Irvine family. James Irvine is the managing director of the company and is the largest shareholder holding shares of 40 % in the company. His brother holds shares of 25% in the company and holds a position of post production director of the company. The company due to its deteriorating condition has started losing the independence of the company and possibly ceasing trade altogether. The company originated during the rapid industrialization of the agricultural sector in the UK but gradually at the beginning of the twenty first century it started facing financial crisis and now is in a verge of losing its existence. The study sheds light on the internal and external factors of British Consolidated Agricultural Machinery Co. Ltd. through SWOT and PESTLE analysis.

Table

Company name

British Consolidated Agricultural Machinery Co. Ltd.

Type of industry

Agricultural Machinery

Headquarters

Birmingham

Sales/revenue

158,382

Area served

England, Scotland and Wales.

Number of stores

4

Competition

Mainland Europe, USA, Far East

USP

Agricultural machinery

Target group

Mainland Europe, USA, Far East

Products

Agricultural machinery products

Website

British Consolidated Agricultural Machinery Co Ltd SWOT

Strength

  • Massive growth during mass industrialization of agriculture.
  • United kingdom based business
  • Age old company
  • Wide range of agricultural machinery products.

Weaknesses

  • Excessive production cost
  • Financial crisis by the beginning of the 21st century
  • Cut down of industry from four to one
  • Area centralized into one
  • Reduction of workforce from 2500 to 700

Opportunity

  • Growing market
  • Need for agricultural products
  • Market demand in the united kingdom

Threat

  • Strong competition from the competitors of mainland Europe, USA, and the far east
  • Strike by workers
  • Unable to meet the demands of the company
  • Manufacturing was streamlined within the Birmingham factory

British Consolidated Agricultural Machinery Co Ltd Analysis

Strength

As per the case study of British Consolidated Agricultural Machinery Co. Ltd. it can be observed that it is an age old company and it originated during the massive growth of agricultural sector in the UK. It was a profitable and growing company in its early days. UK being a huge economy in itself was always an advantage for the company to grow. Its wide range of agricultural machinery products includes tractors, seed drills, mowers, harvesters, sprayers and balers. This wide range of machinery products has enabled this company to earn huge sales revenue of 158,382 pounds (iseki.co.jp, 2019).

Weaknesses

During the early 21st century it started facing financial crisis and due to its wide range of product manufacturing spread over four zones it was facing a huge production cost and company was not being able to cooperate with the market conditions and its expenses (Lang et al. 2018). According to the case study of British Consolidated Agricultural Machinery Co. Ltd. it has been observed that the company was lacking potential business strategies to adapt to the market needs and conditions appropriately.

Opportunities

As per the case study of British Consolidated Agricultural Machinery Co. Ltd. it can be observed that the company was developed during the growth of industrialization in the United Kingdom. There was an era going on in the UK in regards to the growth of agriculture. The UK based company had great scope to grow in the growing demand for agricultural products.

Threat

As per the case study of British Consolidated Agricultural Co. Ltd. it can be observed that during the beginning of the 21st century the company faced strong competition from their competitors growing in USA, Mainland Europe and the Far East. The company faced huge financial crisis from the beginning of the 21st century and had to cut down its factory from four to one. The factory workers went on strike against the company and the company reduced its employee’s growth from 2500 to 700 (Caffaro and Cavallo, 2015). The company started to lose its independence and cease its trade gradually because of the difference in the management styles of both the brothers holding their position as the managing director of the British based company.

British Consolidated Agricultural Machinery Co Ltd PESTLE

Factors

Impact

Political

  • Profits for long tenure in a certain market
  • Systematic risk of political arena
  • Pricing regulations
  • Taxation ( 20% on gains )

Economic

  • Competitive norms
  • Inflation rate (10% monthly)
  • Savings rate

Social

  • Culture and impact of the organization
  • Beliefs and attitude of the population

Technological

  • Technological development according to market demand
  • Speedy execution according to environment needs.

Legal

  • Intellectual property protection
  • Legal framework

Environmental

  • Environment protection strategy
  • Adapting measures to protect the environment
  • Environment protection programs.

British Consolidated Agricultural Machinery Co Ltd Analysis

Political

Political factors determine an important role in the long term sustainability of a company in the market. A company has to understand the political needs of the economy and make decisions accordingly (Severo et al. 2015). Pricing regulations of each commodity needs to be followed and taxation being a major factor in determining growth needs to be upgraded with due diligence.

Economic

According to the case study of British Consolidated agricultural Machinery Co. ltd. it has been observed that the growth of the company depends upon the potential marketing strategies that can be taken by the company to achieve more growth. Inflation rate and growth of capital can be a strategy for business growth. Savings made by the company helps it to grow at a higher level and reduce unwanted expenses.

Social

As per the case study of British Consolidated Agriculture Machinery Co. Ltd. it has been observed that maintaining a specific norm and culture of the company is essential for its mortality. Respecting and understanding the beliefs and attitudes of a population helps in making connections with the society.

Technological

A major factor behind the sustainability of the company is technological growth. The customers always expect technological development with efficient execution and adaption of technologically updated operations (Kolesnikova et al. 2017). Thus implementing this can make the company reach heights.

Legal

According to the case study of British Consolidated Agricultural Machinery Co. Ltd. it can be observed that it is an agriculture machinery based company and patent protection in the field of agriculture is a much needed thing in both the cases of process and product. The company must stay within the legal framework of the country in which it operates and should follow and abide the International law.

Environmental

It is the duty of the company to protect the environment and take measures to protect it (Sutthichaimethee, 2016). It should always have a substitute method to convert the released waste by use of reuse, recycle, and reduce steps. It must conduct environmental protection programs to make aware the workers and the society for the protection of the environment.

Need Full Solution?

Request a FREE quote now!

Ask Now

References List

Caffaro, F. and Cavallo, E., (2015). Comprehension of safety pictograms affixed to agricultural machinery: A survey of users. Journal of safety research, 55, pp.151-158.

iseki.co.jp, (2019). About sales revenue of British Consolidated Agricultural Machinery Co. Ltd. Available at: https://www.iseki.co.jp/english/news/up_img/1522832764-005408.pdf [Accessed on 20 August 2019].

Kolesnikova, E., Hasegawa, H., Sidorenko, S., Sandakova, N. and Melnikov, A., (2017). Government Policy of Agricultural Machinery in the Russian Federation. AMA, Agricultural Mechanization in Asia, Africa and Latin America, 48(2), p.27.

Lang, J., Tian, J., Zhou, Y., Li, K., Chen, D., Huang, Q., Xing, X., Zhang, Y. and Cheng, S., (2018). A high temporal-spatial resolution air pollutant emission inventory for agricultural machinery in China. Journal of cleaner production, 183, pp.1110-1121.

Severo, E.A., de Guimarães, J.C.F., Dorion, E.C.H. and Nodari, C.H., (2015). Cleaner production, environmental sustainability and organizational performance: an empirical study in the Brazilian Metal-Mechanic industry. Journal of Cleaner Production, 96, pp.118-125.

Sutthichaimethee, P., (2016). Modeling environmental impact of machinery sectors to promote sustainable development of Thailand. Journal of Ecological Engineering, 17(1), pp.18-25.

GET 20% OFF On your first British Consolidated Agricultural Machinery Co Ltd Order Now

whatsApp
whatsApp