Business Model of Babcock Australia Holdings

This paper focuses on the business model of Babcock Australia Holdings, a company in the engineering and maintenance industry. It discusses key activities, resources, partners, channels, customer segments, value propositions, cost structure, customer relationships, revenue stream, inter-relationships, critical success factors, and impactful factors.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Business Model:.........................................................................................................................2
Key Activities:.......................................................................................................................2
Key Resources:.......................................................................................................................3
Key Partners:..........................................................................................................................3
Channels:................................................................................................................................3
Customer Segments:...............................................................................................................3
Value Propositions:................................................................................................................4
Cost Structure:........................................................................................................................4
Customer Relationships:........................................................................................................4
Revenue Stream:....................................................................................................................5
Inter-relationships:.....................................................................................................................5
Critical Success Factors:............................................................................................................5
Impactful factors:.......................................................................................................................6
Change:......................................................................................................................................7
References:.................................................................................................................................8
Appendix:.................................................................................................................................10
Business Model:.......................................................................................................................10

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The paper focuses on the business model of a chosen company that is the Babcock
Australia Holdings Private Ltd. The organization operates in the engineering and
maintenance industry and provides support services to the other organizations. The
organization is currently headquartered in Adelaide with 800 number of employees operating
(Babcock.com.au, 2019). The company was founded in the year 2014 and is focused in
delivering innovating and technology oriented solution to the customers (Babcock.com.au,
2019). The mentioned organization is currently managed by Babcock International Group
plc, a company belonging to the United Kingdom (Babcockinternational.com, 2019). The
paper provides a brief discussion on the various aspects of the business model and along with
that, it identifies the critical success factors for the chosen organization. In addition to this,
the paper includes some of the crucial recommendations that have the potential to improve
the operational excellence of the chosen organization.
Business Model:
Key Activities:
As mentioned earlier, the chosen organization operates services industry and provides
the engineering and maintenance support services to the customer of the organization. The
organization is capable of providing capable of providing their services to a range of
industries, such as Defence, Oil & Gas, Aviation, Marine, Land, Media & Communications,
Information & Intelligence, Mining and Construction (Babcock.com.au, 2019). The
organization provides logistics management services, fleet management services, energy
transportation helicopter services, ship repair and maintenance services, tactical and strategic
defence communication equipment services along with information security services to the
customers.

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Key Resources:
The key resources of the chosen organization is seen to be the required infrastructure
for the effective management of the services that the organization provides to the customers.
In addition to the infrastructure, one of the important resource of the mentioned organization
is seen to be the human efforts. The organization is currently experiencing the excellent
service of 800 number of employees. In addition to this, the significant investment from the
part of the parent organization of the chosen organization is considered to be an important
resource for the mentioned organization.
Key Partners:
One of the important partner of the chosen organization is the parent company of the
organization, Babcock International Group plc (Babcockinternational.com, 2019). The parent
organization of the company manages all the business operations of the chosen organization.
Apart from this, the government of Australia and New Zealand are considered to be
important partners for the mentioned organization.
Channels:
The mentioned organization is observed to have their official website which is the
main medium of their business conduction and apart from that, the physical offices of the
mentioned organization in both the countries play a crucial role in the effective management
of the business conduction.
Customer Segments:
The targeted segment of the customers of the chosen organization are observed to be
the multinational and the small scale organizations belonging to the industries such as
Defence, Oil & Gas, Aviation, Marine, Land, Media & Communications, Information &
Intelligence, Mining and Construction. The mentioned organization targets customers from

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both Australia and New Zealand. The organization is seen to target the customer
organizations with annual revenue of 2.26 million US dollars or more (Babcock.com.au,
2019).
Value Propositions:
The mentioned organization is able to achieve notable amount of preferences from the
customer organizations for their excellent services as it is pretty evident that the production of
the solution from the part of the organization is significantly innovative (Babcock.com.au,
2019).
The organization is renowned for providing solutions to the customer organizations
which consumes limited amount of resources of the customers and improves their business
conduction.
In addition to this, pricing policy of the chosen organization is observed to be notably
competitive which enables a range of the customer organizations belonging to different scales
of economy, approach the company to use their services.
Cost Structure:
The mentioned organization faces an administration cost which is 15% of the total
revenue of the organization and adding to that, the service cost of the organization is seen to
be 28% of the total revenue (Babcock.com.au, 2019).
Customer Relationships:
The chosen organization communicates to their customers through their official
website regarding any sort of product or service development. In addition to this, the
customer relationship management team of the organization uses the e-mail for effective
communication to the customers of the organization regarding their services.

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Revenue Stream:
The mentioned organization contributed a significant amount to the 4659.6 million
pound revenue of the parent organization of the company in the year 2018 (Babcock.com.au,
2019). Along With that, the mentioned organization is subjected to an increment of 2.7% in
their generation of revenue (Babcock.com.au, 2019).
Inter-relationships:
The parent organization of the chosen organization, Babcock International Group plc
is a renowned name in the service industry and with the reputation of their excellence in the
business expansions. With the idea of that fact, the parent organization initiated their business
operations in Australia and New Zealand. The parent organization invested in a significant
manner which enables the new organization to achieve the resources such as the required
infrastructure along with human resources for providing quality and innovative services to
their customers. The company targeted the multinational organizations along with the small
scale organizations for providing their solutions and that enabled the company to contribute
to a sum of 4659.6 million pound revenue of the parent organization. In addition to this, the
services of the company helped the company to achieve a growth of 2.7% in revenue. The
chosen organization uses their official website for the effective conduction of their business
operations and along with that, they uses the e-mail or communicating to the customers
organizations regarding their services.
Critical Success Factors:
With a precise focus on the demand of the industry, the company has to keep their
focus on the innovation and the technology in designing their solutions (Nambisan, 2013). As
the requirements demand the solutions to be innovative, the company has the required
excellence in providing solutions which are based on technological innovations. In order to

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capture a larger market share and manage the intense competition of the market in both
Australia and New Zealand, the organization needs to increase the application of the
innovative solutions (Visnjic, Wiengarten & Neely, 2016).
As the demand of the services of the mentioned organization is increasing in a
significant manner, the company is facing the need of increasing the number of employees
for providing their services to a larger number of customers. Under such situation, the
effective management of the training and the developmental needs of the employees of the
organization is seen to be significantly important for the organization in providing
appropriate solutions to the customers (Elnaga & Imran, 2013). Hence the organization is in
need to manage the developmental needs of the new recruitments in an efficient manner for
achieving a long term success.
Impactful factors:
One of the crucial factor that have the potential to affect the business model of the
chosen organization is the marketing of the services. The lack of application of the required
activities for marketing their services is a major drawback for the mentioned organization
(Eid & El-Gohary, 2013). As a result, the formation of a brand that have the potential to
attract the customer organizations in an effortless, is seen to be absent. In the modern
generation, the impact of the marketing and promotional activities on the success of the
business operations is seen to be significantly high. It enables the company to communicate
to the customers regarding the excellence of their services and the capability of them in
providing quality and innovative solutions. With the application of the increased marketing
and promotional activities, the company will have the possibility of serving to a larger
number of customers and that will have the potential to improve the financial stability of the
organization.

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The company serves some of the industries which requires technical and innovative
solutions. Under such situation, the application of the modern equipment for the effective
management of design of the solutions is seen to be significantly important (Paprocka et al.,
2015). Hence, the organization needs to make sure that they provide improved machinery to
the employees of the organization for the effective management of their operations.
Change:
The organization is in need to shift their focus towards meeting the training and the
developmental needs of the employees of the organization. In the modern business context,
the reputation of the organizations in providing quality services to the customers significantly
contributes to the success of the organizations. Hence, the organization is in need to make
sure that they train their employees in an effective manner with a precise focus on the
improvement of the skills of the employees so that the flawless operations of the employees
enables the company to provide appropriate solutions to the customer organizations
(Shahzadi et al., 2014). This will enable the customer organizations to have an improved
business conduction which will be helpful in the improvement of their reputation in the
society. In addition to this, the company needs to come up with an improved marketing and
promotional strategies for the effective marketing of their services to the existing and the
probable customer organizations. The increment in the number of promotional events
conducted from the part of the organization will be significant for the organization in
reaching to a larger number of customers (Zarantonello & Schmitt, 2013).

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References:
Babcock.com.au (2019). Babcock Australasia | Engineering and operational solutions.
Retrieved from https://www.babcock.com.au/
Babcockinternational.com (2019). Babcock International. Retrieved from
https://www.babcockinternational.com/
Eid, R., & El-Gohary, H. (2013). The impact of E-marketing use on small business
enterprises' marketing success. The Service Industries Journal, 33(1), 31-50.
Elnaga, A., & Imran, A. (2013). The effect of training on employee performance. European
Journal of Business and Management, 5(4), 137-147.
Nambisan, S. (2013). Information technology and product/service innovation: A brief
assessment and some suggestions for future research. Journal of the Association for
Information Systems, 14(4), 1.
Paprocka, I., Kempa, W., Kalinowski, K., & Grabowik, C. (2015). Estimation of overall
equipment effectiveness using simulation programme. In IOP Conference Series:
Materials Science and Engineering (Vol. 95, No. 1, p. 012155). IOP Publishing.
Shahzadi, I., Javed, A., Pirzada, S. S., Nasreen, S., & Khanam, F. (2014). Impact of employee
motivation on employee performance. European Journal of Business and
Management, 6(23), 159-166.
Visnjic, I., Wiengarten, F., & Neely, A. (2016). Only the brave: Product innovation, service
business model innovation, and their impact on performance. Journal of Product
Innovation Management, 33(1), 36-52.

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Zarantonello, L., & Schmitt, B. H. (2013). The impact of event marketing on brand equity:
The mediating roles of brand experience and brand attitude. International Journal of
Advertising, 32(2), 255-280.

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Appendix:
Business Model:

Running head: MANAGEMENT
Key Partners
Babcock
International
Group plc.
The government
of Australia and
New Zealand.
Key Activities
Provides engineering and maintenance
support services.
Serves the industries such as Defence,
Oil & Gas, Aviation, Marine, Land,
Media & Communications, Information
& Intelligence, Mining and
Construction.
Provides logistics management services,
fleet management services, energy
transportation helicopter services, ship
repair and maintenance services, tactical
and strategic defence communication
equipment services along with
information security services.
Value
Propositions
Innovative
Solutions.
Competitive
Pricing.
Customer
Relationship
Official
Website of the
company.
e-mail
communication
.
Customer Segment
Australian organizations
which are operating in the
Defence, Oil & Gas,
Aviation, Marine, Land,
Media & Communications,
Information & Intelligence,
Mining and Construction.
The organizations with
annual revenue of 2.26
million US dollars or more.
Key Resources
Innovative engineering infrastructure.
Skilful employees.
Financial investment.
Channels
Company
Offices and the
website of the
organization.
Cost Structure
The mentioned organization faces 15% of the total revenue as the Administration cost.
The mentioned organization faces 28% of the total revenue as the service cost.
Revenue Stream
Increment of 2.7% in their
generation of revenue per annum.

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Running head: MANAGEMENT