Spartan Building Products Case Study: Recommendations and Analysis

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Added on  2023/06/03

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Case Study
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This case study analyzes Spartan Building Products, a construction material supplier in Montreal, Canada, facing operational and cost challenges. The analysis includes a SWOT analysis, identifying strengths like skilled employees and a strong brand, and weaknesses in product distribution and technological advancement. A PESTEL analysis examines political, economic, social, technological, environmental, and legal factors impacting the company. Recommendations include purchasing a transportation fleet, negotiating freight charges, and increasing shipment volume. The study emphasizes understanding customer needs, leveraging social media, and maintaining equality and customer loyalty. The solution aims to improve product supply, adjust prices, and expand the customer base, contributing to the company's overall performance and growth in the competitive market.
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Running Head: SPARTAN BUILDING PRODUCTS 1
Spartan Building Products
Student’s Name
Institutional Affiliation
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SPARTAN BUILDING PRODUCTS 2
Q1. What is the relevance of Spartan Building Products solution?
The Spartan Building Products company focuses on the supply of construction material in
Montreal, Canada. The company faces additional costs on the facilities required to enable the
success of the organization. Additionally, the company experiences operational strains in the
products and market segments as a result of the customers’ desires and competition within the
market. The report on these problems indicated that the need to improve the management would
result in the improvement of product supply to its branches and business partners. Furthermore,
the adjustment of prices to suit the customers’ economy and transportation of the products would
ease the process of expanding the customer base.
Q2. What other factors affect the company?
SWOT Analysis
SWOT analysis is an effective method to analyze the company process to determine the
significant characteristics. The strength of the company lies in its skilled employees who run the
day to today business. Moreover, it has efficient management that increased the broader number
of building materials leading to $8.8 million profit before tax (Fleisher & Bensoussan, 2015).
Additionally, Spartan has a strong brand portfolio, which is useful in case the company wants to
expand in emerging products. In contrast, its weaknesses lie in the distribution of the products.
As such, the company lacks its transportation truck fleet while the shipment cost increases due to
the laws governing the major shipment regions. It requires technological advancement, which is
useful in the globalization of the products (Johnson, 2015). Spartan has an opportunity as its one
of the biggest company in Canada with half of the building products supplied domestically.
Moreover, new technologies serve as a development platform for the industry. China serves as a
threat as its supplies the same products in the region.
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SPARTAN BUILDING PRODUCTS 3
PESTEL Analysis
Political factors play a significant role in defining factors that can affect the management of
Spartan. Spartan can look at some of the political factors that can influence its performance in
another market such as a contract agreement with the allied products, tax rate, and trade laws in
the pricing factor. Additionally, Spartan should look at the economic factors of the target market
such as the stability of currency in that market, unemployment rates, and economic growth rate.
Social factors to be considered include gender roles, the power structure of the society and the
skill level. Spartan should consider the technological speed and its effect on the market. These
factors include the impact of technology on the product, technological advancement, and special
fusion rate. Environmental factors include air population, weather, climate change, and
environmental pollution laws, such as copyright, discrimination, data protection, employment
laws.
Recommendations
The management should buy their transportation truck fleet, as this will help in the overall
transportation cost. Additionally, Negotiate on the freight charges on the shipment regions.
Lastly, Increase the volume of the shipment products.
Assumptions
1. There is importance in understanding the needs of the customer.
2. Social media platforms increases the overall profit of the company.
3. Equality of all the consumers.
4. Loyalty leads to profit
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SPARTAN BUILDING PRODUCTS 4
References
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective
application of new and classic methods. FT Press.
Johnson, F, P., (2015). Spartan building products. Ivey Publishing.
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