CIVI1020 Principles of Management for Civil Engineering Assignment Sample 2023
Introduction
The following assignment is based on the health and safety law violation in the company named Bowmer and Kirkland. The company is UK based which belongs to the construction industry. A business in order to work in an organization in an affected way must need to focus on the health and safety law. Based on these health and safety measures a business can be able to attain sustainability by protecting and managing its employee in an effective way. This study sheds light on the health and safety law violation by this company and its impact on business performance.
Background of the company
Overview of company performance
Bowmer and Kirkland through its various subsidiary bodies procure different types of services to the customer. This industry deals in offering services like commercial, residential civil engineering and home security services. Apart from this, this company was founded in 1923 by Alfred Bowmer and Robert William Kirkland and established in 1948 (Bandk.co.uk, 2020). In the year 2020, this industry has crossed a milestone of 1.1 billion pounds of revenue (Bandk.co.uk, 2020). The Industry has currently 1577 employees engaged in its activity of providing services to the customer.
On the other hand, its group year-end cash balance stood at 481.5 million pounds. However, due to violation of the health and safety rule, its performance has been affected at a large scale. Due to low health and safety law application in their business activity, this business performance has been affected. This company has been included in the breach list of companies provided by the UK government health and safety environment. This industry was found guilty in the work at height regulation act in the year 2005 and fined a sum of 6600 pounds (Hse.gov.uk, 2020). The breach of the regulation related to the health and safety of workers not only affected the organisation financially but also affected its brand value in the market.
SWOT analysis
| Strength | Weakness |
| ● 1.1 billion pounds of turnover in the year 2020
● 60.5 million pounds operating profits ● Having no debt on the company ● Contribution of 58.8 million pounds of total tax ( Bandk.co.uk, 2020) ● 6% increase in the total assets as compared to the previous year (Bandk.co.uk, 2020).
|
● Weak organization structure in the business not only impact the business environment burn also impact its productivity
● Lack of effective uses of resources available in the business has
● a large number of compliance in the health and safety rule violation |
| Opportunity | Threat |
| ● Implementation of new technology improve quality of services
● Effective management in maintaining health and safety laws increase employee engagement
|
● Inclusion of new business and industry in the market
● Drop in the profit margin in the year 2018 by 1.1 % (building.co.uk 2019) |
Table 1: SWOT analysis
(Source: Self Made)
Based on, the SWOT analysis it has been found that the company net assets increased in the year 2020 by 6% which increases its performance in the market. Apart from this, the business has an opportunity to mitigate its weakness such as high compliance through the implication of new technology and digital tools. As stated by Susan, and Novianti, (2019), digital tools and technology positivity in case business efficiency in the market ensures its sustainability.
Analysis
Financial performance analysis of company
On the analysis of the company’s latest annual report, it has been found that the business has revenue of 1.1 billion pounds in the year 2202. Apart from this, this industry maintains its liquidity in a better way as it has a cash balance of 485.1 million pounds (Bandk.co.uk, 2020). The financial performance of the business not only shows not only able to generate profit but also shows the business position in the market (Savitri, 2018). On the analysis of its five-year performance of the business in terms of its turnover, it has been found growth at a positive rate.
The figure shows Bowmer and Kirkland ability to increase its revenue margin in five recent years. Based on, the figure it can be seen that this company had total revenue in the year 2016, around millions of pounds on the other hand, in the year 2020 it has a total amount of revenue stood at 1.1 billion. Through this, it can be said that its revenues have increased at a positive rate in five consecutive financial years.
Business liquidity can be measured through the number of current assets and cash balance in the business. As opined by Luffarelli et al, (2019), business financial performance can be strengthened through the increase in the amount of cash balance in the business. The business cash balance also increases each year consistently. Thus, the business overall performance of the business in terms of cash is increased each year which is a financial benefit for the business.
Analysis of ROI, equity, profitability and business assets
Bowmer and Kirkland had a total amount of investment at the starting of the year 2020 stood at 45725000 pounds and further investment in the year 2020 has been made of 426000 pounds. However, this company has not generated any profit in the current year and incurred a fair value loss of 8221000 pounds (Bandk.co.uk, 2020). In this situation, the business has a negative ROI of 17.81%. The negative ROI not only impacted the financial performance of the business in the market but also affected the stakeholder trust in the business organisation (Maqbool and Zameer, 2018). On the other hand, the business has a total amount of equity in the year 2020 at 199000 pounds and the amount of dividend paid in the year 2020 is 28383000 pounds. Dividends are paid to shareholders in case the business is trustworthy towards organizational activity (Ukko et al. 2019). The business total amount of assets stood in the year 2020 at 507.6 million pounds which shows an increase of 6% as compared to its previous year ( Bandk.co.uk, 2020). The five consecutive years of profitability has been shown through the figure.
The figure reflecting profit before taxation of the business has been shown which shows diseases in its profit of a business before taxation. Based on this figure it can be said that financial performance in terms of profit earning ability is low as compared to its previous year.
Discussion
Potential areas of growth
On analysis of various aspects of Bowmer and Kirkland, it has been found that the company needs to be developed and its strategies in profit-generating ability. As stated by Savitri, (2018), the decrease in the profit-generating ability of the firm directly impacts the financial performance of a business. Thus, it is quite important to develop strategies such as a cities reduction plan, better management and better organizational culture which increase business ability to increase profitability and quality of productivity. On the other hand, the business in terms of managing its health and safety law is not enough through which better employee engagement can be possible. As stated by Osei-Asibey et al.(2021), it is quite necessary for businesses and management to implement an effective health and safety law that ensures business sustainable development.
Various causes related to health and safety violations of the company affected its brand value in the market. On the other hand, with the help of better health and safety regulations in the activity, the business can be able to assess potential risks and identify significant hazards. Technology and digital tools is another area in which this company can be able to increase its business ability to perform well in the market (Susan and Novianti, 2019). On the other hand, this company needs to make effective decision-making strategies as analytical thinking, expertise thinking through which better investment decisions can be made. As the RIO of the business is negative it is important to choose those kinds of business through which the cash flow of the company can be increased.
Technical and technological challenges and opportunities for business
Technology advancement in new challenges for the business, Sometimes businesses can be able to adopt it in an effective way. As stated by Petrillo et al. (2019), the increase in the cost of digital technology is a major problem for the business. In order to implant these digital tools in the business in an effective way, a business needs to pay a higher amount of installation and other maintenance costs. The company further faces various issues regarding these technology implementations in the business module. The continuous change and advancement of digital technology advancement impact the business performance as the implementation of these tools need a change in organizational structure. Apart from this, technology and digital tools have various threats of data breaching and data manipulation. However, these tools can be able to enhance customer engagement and employee engagement through an increase in the effectiveness of management. Thus, this company has the opportunity to effectively implant modern technology which enables them in cost reduction and increase in the effectiveness of management.
SMART objectives
Smart objectives are a set of processes through which all businesses and management can set organizational targets and plan to accomplish them in a better way.
| Objectives | Specific | Measurable | Achievable | Realistic | Time-bound |
| To increase management efficiency in managing organizational culture | Increase in employee engagement and career orientation program
|
In order to measure this objective monthly feed can be used | There is a high chance of achieving these objectives as the effects implementation of the employee engagement strategies can be beneficial | The organization also has assessed various risk assessments and others through which the actual outcome can be managed properly | 5 months |
| To implement health and safety laws in an effective way | Increase in training and development program | The company need to a weekly review of organisational activity through which the | As the current situation of the company is not too good in this context but there is a chance of achieving this through better implementation of training and development | An organisation needs to focus on the actual impact rather than the expected through these actual risks can be assessed and managed (Ogbeiwi, 2017). | 7 months |
Table 2: SMART objectives
(Source: Ogbeiwi, 2017)
Recommendation
- The company needs to focus on the various aspects of business activity by using health and safety measures that can be implemented in a better way. As stated by Pomeranz et al. (2019), it is important for the business to effectively implant these rules as it enables them to assess the risk associated with the business.
- Various new digital technologies such as the Internet of things (IoT), blockchain technology can be planted. This technology provides an opportunity for cost reduction and an increase in the profitability of the business (Morkunas et al. 2019).
- Implement various employee engagement programs such as training and development, career orientation, and feedback which create good organisational culture.
Future scope
Skills deficiencies and recruitment policies
Based on the financial health of the business it is noted that this company has to perform well in the context of the health and safety measures in their activity. Apart from this, through the following study, it has been noted that due to an increase in investment decision-making ability of the company is low which incurred negative ROI and company need to resolve it through effective decision-making plan. Skill deficiency is another major scope for the business through which the business can be able to increase its overall financial performance.
Due to skill deficiency the company can be able to utilize its resources and factors of production in a proper way. As the company has 1577 employees and in order to ensure better use of resources. The company through training and development programs can be able to increase employee skill which ensures business sustainability in terms of service providing. On the other hand, better use of modern technology in organizational modules ensures procurement of organization staff requirements and their growth in a better way.
Conclusion
On the basis of the whole assignment, it can be concluded that the violation of the health and safety rules cause a serious impact on the financial position of the business. Due to beach in the health and safety measure the company has been fined by the regulatory body of the UK. Apart from this, its negative impact has been on the financial aspect of the business as the profit before tax has been dropped. Apart from this, these constraints can be mitigated by creating an effective plan. Furthermore, it can also be concluded that the effective implication of health and safety rules may boost Bowmer and Kirkland financial performance in the market.
References
Journals
Luffarelli, J., Markou, P., Stamatogiannakis, A. and Gonçalves, D., 2019. The effect of corporate social performance on the financial performance of business‐to‐business and business‐to‐consumer firms. Corporate Social Responsibility and Environmental Management, 26(6), pp.1333-1350. available at: https://www.researchgate.net/profile/Jonathan-Luffarelli/publication/332031246_The_Effect_of_Corporate_Social_Performance_on_the_Financial_Performance_of_Business-to-Business_and_Business-to-Consumer_Firms/links/5c9bcae692851cf0ae9c71c0/The-Effect-of-Corporate-Social-Performance-on-the-Financial-Performance-of-Business-to-Business-and-Business-to-Consumer-Firms.pdf
Maqbool, S. and Zameer, M.N., 2018. Corporate social responsibility and financial performance: An empirical analysis of Indian banks. Future Business Journal, 4(1), pp.84-93. available at: https://www.sciencedirect.com/science/article/pii/S2314721017300543 .
Morkunas, V.J., Paschen, J. and Boon, E., 2019. How blockchain technologies impact your business model. Business Horizons, 62(3), pp.295-306. available at: https://farapaper.com/wp-content/uploads/2020/07/Fardapaper-How-blockchain-technologies-impact-your-business-model.pdf
Ogbeiwi, O., 2017. Why written objectives need to be really SMART. British Journal of Healthcare Management, 23(7), pp.324-336. . available at: https://bradscholars.brad.ac.uk/bitstream/handle/10454/12202/SMART%20Goal%20article%20-%20Revised%20Manuscript%20May%202017%20Final%20draft-3.pdf?sequence=3&isAllowed=y
Osei-Asibey, D., Ayarkwa, J., Acheampong, A., Adinyira, E. and Amoah, P., 2021. Stakeholders’ Compliance with Existing Construction Health and Safety Related Laws and Regulations in Ghana. Journal of Building Construction and Planning Research, 9(2), pp.138-159. available at: https://www.scirp.org/journal/paperinformation.aspx?paperid=109678
Petrillo, A., De Felice, F., Cioffi, R. and Zomparelli, F., 2018. Fourth industrial revolution: Current practices, challenges, and opportunities. Digital transformation in smart manufacturing, pp.1-20 available at: https://www.intechopen.com/books/digital-transformation-in-smart-manufacturing/fourth-industrial-revolution-current-practices-challenges-and-opportunities .
Pomeranz, J.L., Mozaffarian, D. and Micha, R., 2020. Sugar-sweetened beverage warning policies in the broader legal context: health and safety warning laws and the First Amendment. American journal of preventive medicine, 58(6), pp.783-788. available at: https://www.ncbi.nlm.nih.gov/pmc/articles/pmc7246175/
Savitri, E., 2018. Relationship between family ownership, agency costs towards financial performance and business strategy as mediation. Verslas: teorija ir praktika, 19(1), pp.49-58. available at: https://journals.vgtu.lt/index.php/BTP/article/download/7879/6822/
Susan, A. and Novianti, W., 2019, November. Benefits of Technology for Business. In IOP Conference Series: Materials Science and Engineering (Vol. 662, No. 3, p. 032036). IOP Publishing. available at: https://iopscience.iop.org/article/10.1088/1757-899X/662/3/032036/pdf
Ukko, J., Nasiri, M., Saunila, M. and Rantala, T., 2019. Sustainability strategy as a moderator in the relationship between digital business strategy and financial performance. Journal of Cleaner Production, 236, p.117626 available at: https://www.sciencedirect.com/science/article/pii/S095965261932476X
Websites
Bandk.co.uk , 2020 annual report available at: https://bdicx6sw3q44hgs6392503bl-wpengine.netdna-ssl.com/wp-content/uploads/2021/06/Year-End-Review-Financial-Information-2019-20.pdf [accessed on 18 November 2021]
Bandk.co.uk , 2020 overview of company available at: https://www.bandk.co.uk/ [accessed on 18 November 2021]
building.co.uk 2019, margin suffer of B& K available at: https://www.building.co.uk/news/margins-suffer-at-bowmer-and-kirkland/5099773.article [accessed on 18 November 2021]
Hse.gov.uk, 2020, breach list of company available at: https://resources.hse.gov.uk/convictions-history/breach/breach_list.asp?PN=6&SN=S&ST=B&SF=IS&SV=40&SO=DHD [accessed on 18 November 2021]
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