Assignment of 7thWeek

Assignment of 7thWeek
J&J Electrical Contractor, Inc
BUS 590 Business Strategy
Bishnu Dhamala
22.02.2015
Submitted to: Prof. Raj K. Sharma

Assignment of 7thWeek

Introduction
As from the case, the company named J&J Contractors case is considered as one of the
small regional family business. It has found that a way to competes from the bigger and much
more comprehensive electrical contracts within its industry. Now recently the organization is
operated by the husband and the wife.
The case tries to describe the electrical contracting industry. The case will try to challenge
students to integrate industry as well as competitive dynamics with regulating and on the other
hand market demand to plot some worthy suitable option to help or assists revive JJs flagging
profitability.
The J&J is one of the organizations which is run by the husband and wife, and consider
as the electrical contracting firm as well as dependent on the general contractors for the work.
Looking about the market share, it has been able to increase its market share as well as expansion
of the business. The price focus of the company is to satisfy the customer wants as per their
requirement it is also one of the best reason to retain the consumers. From the case, directly we
can see that, they were trying to find out the best solution for incurring the loss in the
organization. Hence, the organization was given more emphasis towards maintaining the
customer relationship. The competition level is very high as other competitors providing same
level of service to customer at lower costs.
Recently the profit of the organization is decreasing despite an increase in the volume of
sales which was the result of increasing competition. Most of other competitors are well know
regarding to maintain the customer relationship.

Assignment of 7thWeek

Synopsis
Normally, the company could bid in two types of work regarding the project which were
private as well as public project. All the company focused more to satisfy the customer
satisfaction which is considered as the public project. Normally, under the public project, the
relationship with the stakeholder didnt consider whereas in the private project, there is high
level of emphasis is given to the stakeholder as well as payment was done. In the regulations in
the private project, there was not any type of compulsory for the contracting organization
because such type of the project attractive in terms of the profit.
Core issues
From the case, the company named J&J Contractors, Inc was owned as well as operated
by the team of husband and wife, named John & Jean Abernathy. Normally the company would
like to perform the residential, industrial as well as public electrical contracting work. With the
three electricians it was able to grown successfully almost into employees of 54 by the month of
May 2006, from that time; it was able to increase its market share day by the day. Whenever
looking about the financial transaction, it was able to get revenue with 75 percent of growth in
the year of 2001, increased from $ 2.98 million to $ 5.22 million.
Though having such type of growth, from last 3 years, the income had declined
dramatically. The decision related regarding the future direction and short term decision
regarding the increase in the efficiency of firm were to make by the husband and wife, John &
Jean. As every people have own vision and mission, likewise that, they both husband and wife
had different types of vision that J&J would pursue as well as favored greater economic growth,
whereas Jean favored controlled growth with an emphasis on increase the market share and
increase the growth through improving the sales and margins.

Assignment of 7thWeek

Diagnosis
-

Different types of vision

From financially, there is a stage of declining net income
The commercial as well as the industrial construction had possibility to decline due to the

recession in early stage of life 20000

Due to increase the cost of factors of production also leads to increase in the production

costs
Difficult to fulfill the greater demand of market

Analysis and Evaluation

Environment
The organization run in the environment makes profit from the environment as well as
sustain in the same environment. It has huge number of big players as well as was of doing
diversified their work. There was also seen fierce competition in the local environment. Most of
the times, organization did not compete with the big player in the competitive environment.
SWOT Analysis
Strength
-

There is strong relationship within the private sector

The reputation regarding integrity, responsibility as well as reliability was so strong
The growth in the revenue
Possible to leads the experience curve

Weakness
-

Less chances to expansion of business into different market

Lack of competitive environment in the private sector
Normally, the project of public to private had high percentage of ratio
There is low voltage, scarcity regarding the energy

Opportunities
Threats

First one is to be a general contractor

High possibility to expand the business geographically

Assignment of 7thWeek
-

There is low level of supply

The price of factor of production like raw material had increase dramatically
There is low level of barriers to entry into the industry

Statement of the problem

The main problem on the case is decreasing the sales of the organization. Another is the
way to increase in the future as well as the way to decrease their operation costs. Looking about
the case there are dilemma whether to expand the business or go for the controlled growth. Due
to competitive environment, they also were facing high level of competition from the bigger or
huge organization.

Recommendation and Conclusion

In order to be leader in the industry, company named J&J Company should increase the
business as well as should increase the market share. To capture the market share, it should be
loyal towards its customer. It should try to make new partner as well as should try to make
strategic alliances with telecom/network systems as well as the alternative energy power sources.
To increase the efficiency, the employee of the organization should be trained before giving the
authority as well as the responsibility. In the 21th century, not only giving to its employee is not

Assignment of 7thWeek

enough to capture the market as well as expansion of the market, so it should be updated with the
latest technology. The organization culture as well as organization structure should be improved
to increase the efficiency.
As earlier discussed, it has strong economic relationship with private sector which helped
to increase its revenue as well as also helped to increase the market share. It had hard working
staff in the organization. J&J is successful to ahead in the experience curve due to outstanding
service as well as the loyalty towards the customer. If the same thing happened then definitely, it
will be have more chances regarding stabilize the declining profitability.

References:
yelp.com/biz/clap-j-and-j-electrical-contractors (n.d.).. Retrieved from www.yelp.com/biz/clapdanbury: http://www.yelp.com/biz/clap-j-and-j-electrical