Business Analysis of HVAC Market: Report and Reflection

This report provides a business analysis of the HVAC market, including industry data, PESTLE analysis, competitive position, and key issues faced by managers. The report also includes a reflection on key skills development and numeracy. The report is relevant for students studying business and management courses. Course code and college/university are not mentioned.

Individual Report and
Reflection project1

EXECUTIVE SUMMARY
Business analysation is the consideration of the concepts which impact the growth of the
business with the consideration of the need for changes that help in the facilitation of the change
management. HVAC market is expected to row at the rate of forecast period due to the rise in
demand for improving the HVAC systems for the reduction of energy consumption.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
PART 1............................................................................................................................................4
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Industry data.................................................................................................................................4
Facts related to market.................................................................................................................4
PESTLE analysis.........................................................................................................................5
Competitive position....................................................................................................................7
Key issues faced by the managers of this business......................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
PART 2..........................................................................................................................................11
MAIN BODY.................................................................................................................................11
Short Description.......................................................................................................................11
Reflective report.........................................................................................................................11
ACTION PLAN.............................................................................................................................13
REFERENCES..............................................................................................................................16

PART 1
INTRODUCTION
Business analysis is the identification of business needs and determination of solutions
for the business problems. This is helpful for improving the software development component
but may also consist of the process of improvements. In this report the case study is on M and A
Air Conditioning which is established in Milton Keynes that provides a large range of services as
air conditioning, ventilation and heating. In this report the different theories, models and analysis
of the external environment influences on the organization will be made.
MAIN BODY
Industry data
The heating, ventilation and air-conditioning UK market has been estimated to be worth
£15.0bn with a growth rate of -0.7%. This is due to the limited amount of growth opportunities
that is present for the companies in the market. Although this market is very competitive and has
forced many contractors out of the industry. During Covid-19 its business has fallen
tremendously however this market has been predicted to make some comeback in the future.
Facts related to market
Key businesses

Some key businesses in this market are, Centrica plc which holds 11.5% of the market,
Home serve Membership Ltd which has 2.1% of the market and T Brown Group Ltd which
holds 0.3% of the feedback.
Customers :
The customers of this industry are the ones which want HVAC services from the
companies with reasonable price to availability. The factors customers consider in this industry
are experiences, reviews and speed of service.
Suppliers :
The suppliers of this organization are consecrates supplier and the majority of them
provides similar equipments with warrant to the companies.
Competitors :
There are 14 different companies in this market which are listed on the internet which
also includes Centrica plc, T Brown Group Ltd and Home serve Membership Ltd.
Performance :
The performance of this company M and A Air Conditioning provides a larger range of
services such as HVAC, ventilation and heating and also has its operations domestic, industrial,
commercial and residential areas (Radifan and Suhaimi, 2019).
Strengths :
These organizations have futuristic vision which helps them to enhance their focus on air
conditioning systems. Companies in this industry have commitment to environment and society.
Weakness :
The changing demographics of the customers changes the demand of products.
Developing new technology frequently increases the cost of raw materials.
Challenges :
The high amount of competition in the marketing is also a very big challenge for a
business in this industry. The unpredictability of the trends also pose a challenge to the
operations.
PESTLE analysis
The external environmental factors which impacts the business of M and A Air
Conditioning are,
Political :

The differences in the political environment from time to time causes its impacts on the
future of M and A Air conditioning. This also impacts the country trade relationships and
different trade barriers. This is due to the rules and regulations regarding the taxation impacts the
performance of the organization.
Economical :
The economical factors such as GDP, income level, growth rate and unemployment level
in the economy impacts all the businesses (Darabpour and et.al., 2018). Inflation can be the
reason due to which the cost of this organization is higher.
Social :
The social cultural impacts of the economic stability of the country is also the factor
which has influenced the trends of the customer preferences. Due to the changes in the social
preferences also the business of the organization is affected (Comprehensive SWOT & PESTLE
Research Reports, 2020).
Technological :
Artificial Intelligence and other latest technologies has been the key towards the growth
and development of this sector in market. This is the reason companies such as M and A Air
conditioning prefer investing into the research and development for the growth of this
organization.
Legal :
The employment laws for the companies of this sector are related towards the control of
the various emissions which can be harmful for the workers. These laws are to be followed by
the company which affects the operations (Wulff and et.al., 2019). There are also restriction on
the use of energy in the organization and are considered to be the factor which influences the air-
conditioners technology and production.
Environment :
The impacts of the products and manufacturing of the organization needs to be energy
efficient towards the equipments which would affect the growth of the organization. This is also
the factor which forces the company into the research and development which is the key factor
that provides the organization the growth that is essential.

Competitive position
The competitive position of this organization can be understood with the help of the
Porter's Five Forces Model,
Existing competition :
In the area where this organization is situated there are 14 competitors providing their
services. From the analysation of Pezzutto and et.al., (2018) it was found that these competitors
offering the similar services the competition for this organization is very high. This company
also has to compete with some market giants such as the Centrica plc, T Brown Group Ltd and
Home serve Membership Ltd.
Threat of new entrants :
As per the view of Kumbara, (2020) for starting a business of air-conditioning a start-up
would require high amounts of capital due to the establishment of the different machinery which
are essential for the operations. However, the management of the online operations is not as
costly as in comparison to other industries therefore it can be said that the threat of new entrant is
mediocre.
Power of buyers :
As there are many competitors in the market the customers have different options to
choose from thus, this given them more options to choose from. However, for the business it is
not easy to differentiate there products and services in comparison to other organization due to
the competitors. Hence, it can be said that bargaining power of the customers is medium.
Threat of substitute :
The biggest factor which impacts the business in this industry is the level of training and
development which is present in the organization. This is the factor which is responsible for the
creation of substitute which can create major negative influence to the organization and its
growth. This is why the threat of substitute is very high in the market.
Threat of supplier power :
As there are many organizations in this market the suppliers do have different options
which impacts the power of the suppliers. However due to the trade relations which the suppliers
are able to develop with the companies the switching cost of the organization depends on the
industrial area makes is hard for them to negotiate (Budzik and Budzik, 2019). Hence, the
bargaining power of the suppliers is medium.

Key issues faced by the managers of this business
The managers of M and A Air conditioners faces the issues such as,
 Uncertainty about the future trends and technology which can bring sudden
organizational change.
 Consideration of the well-being of this organization is very essential as it impacts the
production and service quality.
 Due to the high competition in the market the managers find it very hard to shape the
company culture.
 Recruiting and on boarding of the right employees is very important for the organization
as it impacts the growth of the business.
CONCLUSION
From the above report it can be understood that the operations of M and A Air
conditioners is affected due the high competition and uncertainty of the technological
development in the society. This project was able to understand how the external factors impact
the growth of this organization. In this project the competitive analysis was made regarding the
operations of the organization and its competitive growth.

REFERENCES
Books and Journals
Budzik, T. and Budzik, A., 2019. An assessment of the impact of customers and suppliers as
competitive forces in Polish car communication enterprises. Prace Naukowe
Uniwersytetu Ekonomicznego we Wrocławiu, 63(7), pp.203-216.
Darabpour, M.R., and et.al., 2018. Practical approaches toward sustainable development in
Iranian green construction. Civil Engineering Journal, 4(10), pp.2450-2465.
Kumbara, A., 2020. THE ANALYSIS OF PORTER'S FIVE FORCES IN LUCKY TEXTILE
GROUP IN FACING THE COMPETITION OF TEXTILE INDUSTRY. Dinasti
International Journal of Economics, Finance & Accounting, 1(3), pp.397-412.
Pezzutto, S., and et.al., 2018. Forecasting electricity market price for end users in EU28 until
2020—Main factors of influence. Energies, 11(6), p.1460.
Radifan, J. and Suhaimi, H., 2019. Development of Personal Selling Standard and Improvement
of MSME X's Wedding Promotion Material. IPTEK Journal of Proceedings Series, (5),
pp.178-184.
Wulff, E., and et.al., 2019. An analysis on how Samsung can improve their environmental work
by adding new ecological transportation method of goods. Asia Pacific Journal of
Management and Education (APJME), 2(3), pp.55-66.
Online
Comprehensive SWOT & PESTLE Research Reports, 2020[Online]. Available through:
<https://www.swotandpestle.com/daikin-industries/>

PART 2
MAIN BODY
Short Description
Key skills development is related to the development of personality and trends of an
individual with related to the skills such as the communication, ICT, team-work, problem
solving, coordinating, leadership and personal learning & development. I have been able that my
time management skills is the one which is the key to the highlight responsible for the growth of
my managerial. The management of time effectively can help the business in the communicating
with the teamwork, problem-solving, coordinating and management of the followers effectively
as a leader.
Reflective report
My experience in this module which was related to the communication skills that allowed
the management of time as the key concept of my learning. I can say that time management is a
skill of mine which I believe is the most impactful in providing me an advantage that a need for
my personal development and growth. The reason I was able to improve my time-management
skills was because I used to write down all the tasks which I did from the start of my daily time.
This allowed me to manage the task and also perform prioritizing tasks. During the learning
practices communication was very important for our learning. During this learning we focused
on both verbal and written skills of communication. Communication skills was considered to be
very effective for me to understand the discussion, presentations and report writing skills. Better
communication helped me to bring growth to my social interactions which allowed me to be
more effective learner. During the week two I was able to identify that my grasp teamwork and
problem solving is very effective. These two business skills have been the part of my
development for bringing confidence two my professional growth. Being able to have team work
is considered to be the factor which influenced the experiences which allowed me to provide the
effective experiences with the identifications of the problems and also integration of the
members of the group. From this week of learning my identification of the skill which in need to
focus is writing reports. In these skills written reports, general business communication was very
important for my growth in the learning different practices related to the learning. The

experience during this week of learning was exquisite which helped me to develop a strong feel
about the studies in general.
Numeracy is the study of using data and statistics for the learning purpose. This is a skill
which would help me to growth my business analytical abilities. During this week of learning
module has been very curious and interest due to my interest in utilization of data for calculation
and statistical representation. For this learning I was able to use teamwork in which working with
other individuals helps in the development of own as well as others learning. This has been the
skills that I developed which will help me in my future ahead. During the teamwork learning
practices the Belbin team role strengths and weaknesses were discussed in which the
questionnaires were asked that provided the results of my learning. In my opinion my
contribution to the team is that is am very effective in recognizing the opportunity and
capitalizing on them very quickly. Production of idea for the team I am in is my key feature and
thus, it helps me to work with very wide range of people. I do not care whether I am popular or
not I am able to still show my contribution to the team. The biggest issues I face in working with
the team is that some times I become too generous towards others if they have a valid point
without giving a proper consideration to the situation.
In the week 4 we were taught about the learning with the help of ICT. This was the
technology which influenced my learning towards the different analytical tools of business.
These are also the tools which helps me to analyse the businesses and the factors which affected
them. I was able to learn about the Micro and Macro factors which impacts the businesses. In
this week of learning I was able to identify the internal process of a business. The focus of the
learning need was to identify the key concepts that allowed in increasing the productivity of the
organization. The internal factors that affected the business includes the study of the competition
level of the organization in the market. SWOT analysis helped me to study the strengths,
weaknesses, opportunities and threats of the organization. I also studied properly the external
factors which impacts the growth of an organization. In this learning I was able to learn how to
identify these factors and analyse their impacts on the business. For the analysation of these tools
I was able to identify the factors such as the political, economical, social, technological, legal
and environmental factors which affects the business. Understanding the use of these
frameworks has helped me to attain overall understanding about these frameworks which helped
me to understand the viability of the organizational objectives.

During the learning of week three I was able to develop strong understanding of how to
use communication and teamwork skills for the application of the different analytical tools which
allowed me to study the competitive force that affects a business. In our assessment we were
divided into different groups. Each of the groups were given a analytical model to be used and
applied for with the case study that was given. For our group we were presented with the porter's
five forces which helped me to understand about the key competitors of M and A Air
conditioners. During this group activity I was successful in the development of my
communication and teamwork skills. However, during this activity I was also able to identify
that I need to improve my research skill along with the time management as this was the learning
activity.
ACTION PLAN
Study Skills
Area
Learning
Objectives
Skill/
Knowledge/
Awareness
Gap:
Actions
required
Evidence
portfolio
Milestones
Time
management
Time
management is
the ability of
an individual
to maximize
the time spent
on important
things. Being
able to be
efficient with
the time I am
able to utilize
for the
effectiveness
can be known
I am not being
able to keep
track of the
time I spend
on a particular
learning topic.
To build time
table for being
punctual with
time.
(Farokhzadian
and
et.al.,
2020)
Being able to
manage time
effectively.

to be the
essential for
the important
things.
Written
Communicatio
n
Communicatio
n is considered
to be the skill
which is very
important for
the social
growth of an
individual.
Written
communicatio
n will help me
to capture the
reader's
attention for
getting the
point across
the
individuals.
Sentence
formation and
grammar.
Need to
practice
writing reports
and essays.
Chasanah and
Usod
o,
2020
Being able to
write a report
with
effectiveness
and quality.
Analytical
skills
Analytical
skills are is the
ability which
will help me to
utilize the
analytical
tools to solve
problems
Knowledge
and practice
with analytical
tools.
Need to
practice
analytical
tools on
different
organizational
context.
Serevina and
Andri
ana,
2020
Being able to
identify the
factor which
affect the
learning.

which I am
faced across.
Research Skill Research skills
are considered
to be the key
skills that help
me in the
identification
of the problem
which help me
to collect
information
resources for
addressing the
problem that is
effective for
the evaluation
of the
resources for
quality and
relevance that
come up with
an effective
solution to the
problem.
Internet
surfing and
browsing
different
sources of
research.
Need to do
more research
on topics for
better results.
Huy and
Thuy,
2021
Being able to
research
effectively.

REFERENCES
Books and Journals
Chasanah, C. and Usodo, B., 2020. The Effectiveness of Learning Models on Written
Mathematical Communication Skills Viewed from Students' Cognitive Styles. European
Journal of Educational Research. 9(3). pp.979-994.
Farokhzadian, J., and et.al., 2020. Promoting the psychosocial and communication aspects of
nursing care quality using time management skills training. Journal of Education and
Health Promotion. 9.
Huy, D.T.N. and Thuy, N.T., 2021. Education for students to enhance research skills and meet
demand from workplace-case in vietnam. Ilkogretim Online. 20(4).
Serevina, V. and Andriana, W., 2020, March. Development of website on General Physics
subject to increase analytical skills of students. In Journal of Physics: Conference Series
(Vol. 1481, No. 1, p. 012081). IOP Publishing.