CBC Construction CBC Construction is an acronym for Competent, Bigger, and Complete the three pillars of the company's claim to fame. CBC has been engaged in a major construction enterprise for the past 20 years and builds houses and develops land and infrastructure for the middle and low-income markets in Jamaica. Egbert, the Managing Partner, concedes that this target market was selected because they believe that there are far more customers in the middle and lower class categories in need of housing solutions than those in the upper class. So far business has been good; the firm has been able to double its output over the past five years and their net income continues to climb at a reasonable rate. But Egbert is worried that with the recent freeing up of import restrictions on construction material, the massive increase in bank loans being offered to citizens, and the tax break granted by the government, more players are going to enter the construction industry and create steep competition for CBC and other established builders. So CBC needs to make some strategic moves that not only will increase their share of the construction industry but also cement their brand in the minds of ordinary Jamaicans. Two options under consideration are either to enter the upper class market and start selling home solutions to those citizens, or in addition to their Kingston base, to establish another base in Montego Bay and gradually penetrate that geographical market as well. Both strategies are intended to increase their market share and to improve their bottom line. In a recent meeting of the partners, Oprah was quick to remind Egbert of some challenges facing them, such as strong competition, a weak management structure, the threat of natural disasters, extortion, a low current ratio, and many uncertified construction workers at CBC - though they are rated amongst the best hands-on builders in the country. Notwithstanding the concerns, Egbert reminded them that CBC enjoyed a strong brand rating across Jamaica and had many "friends in high places" especially in the Finance and Investment Ministries, and they were operating in a steadily growing industry - all factors that bode well for the firm. Whatever the decision, Egbert is convinced that now is the time to act in order to achieve a greater industry foothold over the next few years 3. Develop a perceptual map for the construction industry, clearly showing CBC's position on the map, and provide your recommendations to the firm based on their position. You will need to make a lot of assumptions and create some scenarios. (10 marks) 1. Develop a QSPM for CBC Construction and advise them on the best way forward based on the matrix's outcome. In the interest of time, you may use only four (4) factors under each heading and you may use only two strategic alternatives. (25 marks) CBC Construction CBC Construction is an acronym for Competent, Bigger, and Complete the three pillars of the company's claim to fame. CBC has been engaged in a major construction enterprise for the past 20 years and builds houses and develops land and infrastructure for the middle and low-income markets in Jamaica. Egbert, the Managing Partner, concedes that this target market was selected because they believe that there are far more customers in the middle and lower class categories in need of housing solutions than those in the upper class. So far business has been good; the firm has been able to double its output over the past five years and their net income continues to climb at a reasonable rate. But Egbert is worried that with the recent freeing up of import restrictions on construction material, the massive increase in bank loans being offered to citizens, and the tax break granted by the government, more players are going to enter the construction industry and create steep competition for CBC and other established builders. So CBC needs to make some strategic moves that not only will increase their share of the construction industry but also cement their brand in the minds of ordinary Jamaicans. Two options under consideration are either to enter the upper class market and start selling home solutions to those citizens, or in addition to their Kingston base, to establish another base in Montego Bay and gradually penetrate that geographical market as well. Both strategies are intended to increase their market share and to improve their bottom line. In a recent meeting of the partners, Oprah was quick to remind Egbert of some challenges facing them, such as strong competition, a weak management structure, the threat of natural disasters, extortion, a low current ratio, and many uncertified construction workers at CBC - though they are rated amongst the best hands-on builders in the country. Notwithstanding the concerns, Egbert reminded them that CBC enjoyed a strong brand rating across Jamaica and had many "friends in high places" especially in the Finance and Investment Ministries, and they were operating in a steadily growing industry - all factors that bode well for the firm. Whatever the decision, Egbert is convinced that now is the time to act in order to achieve a greater industry foothold over the next few years 3. Develop a perceptual map for the construction industry, clearly showing CBC's position on the map, and provide your recommendations to the firm based on their position. You will need to make a lot of assumptions and create some scenarios. (10 marks) 1. Develop a QSPM for CBC Construction and advise them on the best way forward based on the matrix's outcome. In the interest of time, you may use only four (4) factors under each heading and you may use only two strategic alternatives. (25 marks)