Eurosec Automation and Security Systems Identifying Eurosec

Eurosec Automation and Security Systems

Identifying Eurosec Automation and Security Systems resource capabilities

Choosing the geographical location

Methods of Expansion

Finance and Information Technology

The organisation Eurosec Automation and Security Systems (Abu Dhabi, Dubai, and Sharjah) has undergone a detailed analysis from a performance management group. The analysis was done by using several performance improvement models including the 7S model, SWOT analysis, ADKAR analysis, PESTLE, a cost comparison tool, Gaps Analysis, a year P/L projection, and a flow IT model.

The initial analysis of the Eurosec Automation Security Systems delved into the areas of strengths and areas needing improvement inside the organisation. The PESTILE analysis tool will be used in studying and researching current geographical locations (countries) where the company will begin to become more global. The 7S model, SWOT analysis, and the ADKAR analysis explores how Eurosec Automation Security Systems is structured and the resource capabilities within.

The Gaps Analysis, P/L projection, and flow IT chart will take into account the strategy for the first five years, funding options for the start up process, forecast of profit and loss figures for the first two years and how information technology will be incorporated into the global expansion. The final phase of the analysis process is the evaluation stage that will be a reflection process for the Eurosec Automation Security Systems organisation and the Alpha Performance Management consulting group working with them.

Different resources were used in conducting the research necessary for the Eurosec Automation and Security Systems organisation and their ability to open an efficient and financially profitable new retreat.

1. Theory review- Books, newsletters, articles, employee satisfaction surveys, educational and business journals, previous business plans, and specialized magazines and websites.

2. Eurosec Automation Security Systems - Customer surveys, detailed consumer questionnaires, interviews with a variety of different departments, personal and professional observations, brochures, and annual reports

Main (primary) sources of information include personal face-to-face interviews, performance evaluations, random surveys with staff members, the management team, and consumers.

Constraints and barriers faced were:

Confidentiality issues with employees and consumers

Time constraints in receiving the surveys

Validity and reliability concerns with random surveys

Despite the barriers, the information collected was strong enough to evaluate and reflect upon the situation and move forward with the process of Eurosec Automation and Security Systems opening a new spa.

Executive Summary

This research encompasses the privately owned company Eurosec Automation Security Systems. The company's scope includes delivering, installing, connecting, programming, testing, commissioning, maintaining, and all solutions as well as training and supporting of staff and consumers (Eurose, 2011). Eurosec Automation Security Systems has the staff and expertise to handle requirements of both small and large clientele (2011). With a general contractors license in security and communications Eurosec Automation Security Systems has clients in residential, commercial, retail, health care, hospitals, schools, and correctional facilities (2011). Eurosec Automation Security Systems partners with Sony, Camlux, Avaya, and FERMAX.

The purpose on this research is for Eurosec Automation Security Systems to expand and extend its services and product line globally. Eurosec Automation Security Systems is located in the United Arab Emirates (UAE) and has never attempted to expand their organization. Global expansion will be a rigorous process, but if done correctly it will be a highly rewarding venture.

To achieve this, Eurosec Automation Security Systems current resource capabilities were identified by assessing their core competencies while delving into the strengths and limitations in reference to systems and management style. These key factors will help determine the success probability of the Eurosec Automation Security Systems in its global expansion.

A location was established by using Pestle and Porter's Five Forces model because the PESTLE model is an effective tool in helping to find a location for global extension and to create more opportunities into continued expansion (Gillespie, 2007). The financial outcome helped to determine that the best way to expand was via a business partnership with an established corporation inside the new global location. The partnership would help the management team of the Eurosec Automation Security Systems adjust to a new market and offset some financial concerns in the first two years of operation (Aurifeille, Svizzero, & Tisdell, 2007).

The research identified current business strategies for Eurosec Automation Security Systems and helped in finding them a new global location. The Alpha Performance Management group talked with staff and management from each department and helped to set goals and objectives with new systems and products. The analysis also supported the idea that a partnership with an established corporation in the new location would help the existing human resources staff members from Eurosec Automation Security Systems better to understand the local customs and culture (Smith & Mazin, 2004).

Background Information, Assumptions, and Issues

Security systems and emerging technology associated with them has been developed over the last several years by research and development on products and services.

Emerging technology offers a variety of products and services but they differ from one company to another and vary because of security regulations from country to country.

All products and services are offered to clients in residential, commercial, retail, health care, hospitals, schools, and correctional facilities. Prices vary based on the services and systems tailored to meet specific needs of each individual client.

Most common products and services provided for residential:

CCTV system monitoring

ANPR system

Smart Home System

PABX system

Video and audio conferencing

Public address

SMATV system

Structured cabling

Alarm systems

Access control systems

Shutter and grill

Gate barrier system

Most common products and services provided for commercial:

Hotel Management System

CCTV system monitoring

ANPR system

PABX system

SMATV system

Video and audio conferencing

Structured cabling

Alarm systems

Access control systems

Shutter and grills

Gate barrier system

Specific clients systems and products are developed for:

Consultants

Governments

Banks

Hotels

Malls

Supermarkets

Retail

Schools and universities

Factories

Resellers

Developers

Television

Equipment and technology provided by:

Sony

Camlux

Avaya

FERMAX

Company Background

Eurosec Automation and Security Systems is a privately owned company located in the United Arab Emirates. The company is headquartered in Dubai and has expanded to several other locations with successful partnerships with Sony, Camlux, Avaya, and FERMAX. Eurosec Automation and Security Systems takes great pride in customer service and a majority of the business comes from recommendations through existing customers.

Below are the current locations:

1. Main location is the headquarters located in Dubai

2. Abu Dhabi

3. Sharjah

International existence

Eurosec Automation and Security Systems have a lack of an international presence. All three of their businesses are located in the United Arab Emirates. They want to expand into the global market in countries such as England, Germany, United States, France, China, Spain, and several more.

Vision

Is to expand Eurosec Automation and Security Systems brand internationally mainly through partnerships with established security systems (businesses) and become a major player in the global market with emerging technology in the security field. To continue providing excellence in customer service and support to established clientele.

Mission

"Our service is your safety. Our mission is your satisfaction."

Values

To develop a strong cultural atmosphere for all employees and clients to thrive in, support one another in a team environment, and to attract and retain the highest quality of talented individuals available.

Financial Performance to date

Eurosec Automation and Security Systems have enjoyed a growth in operating profit margin for the last four years. From 2007 to 2010 Eurosec Automation and Security Systems has more than doubled their gross profit while continue to limit the cost of both services and products.

Eurosec Automation and Security Systems Income Statement

2007

2008

2009

2010

Sales- Products

5,000,000

6,000,000

8,000,000

12,000,000

Sales- Services

7,000,000

9,000,000

12,000,000

15,000,000

Cost of Products

2,000,000

3,000,000

4,000,000

5,000,000

Cost of Services

3,000,000

4,000,000

5,000,000

6,000,000

Gross Profit

7,000,000

8,000,000

11,000,000

16,000,000

Core Competencies

Brand name

Customer service excellence

Emerging technology innovations

Low staff turnover

Training and education of staff and clientele

Offering a career alternative in a downward economy

Investments in research and development

Strong partnerships with Sony, Camlux, Avaya, and FERMAX

Competitive Strategy

Strategy is based on research and development of emerging technology and creating the highest quality products and services. Special attention is given to customer service and support; it is essential to provide the customers with the proper training and be supportive of the specific needs people may have. The company is working hard to do their part in protecting the environment and to make it safe for everyone.

Market Channels

Private dwellings

Big and small businesses

Hospitals and health care facilities

Governments, banks, supermarkets

Schools and universities

Hotels and malls

Main Competitors Globally

ADT

Allied Barton Security

Freepoint Security

GE Security Systems

Pinnacle Home Security

First Alert

Current Growth Plans

Methods of Development

Eurosec Automation and Security Systems are looking to establish a partnership with an existing security systems business that has had an impact in Europe, Asia, Africa, and North America. The company's global growth would allow them to put more resources into developing emerging technology and thus continue to expand worldwide.

Current Issues

The owners of Eurosec Automation and Security Systems want to become a global business and have put together a group of higher order and creative thinkers to brainstorm ideas. The group consists of-

1. Myself

2. Alpha Performance Management consultants for ideas outside the organization

3. Representatives from Sony, Camlux, Avaya, and FERMAX

4. CFO of Eurosec Automation and Security Systems- Jonathon Smith

5. Five to seven established global leaders as guests

6. Retired CEO of ADT -- Billy Thornton

Brainstorming Objectives

1. Geographical location (consider all options and begin to narrow it to two or three valid options)

2. Proposed facilities and treatments

3. Options considering working in partnership with an existing organization at chosen location- a detailed list of probable partners in the venture

4. Overall strategy for the first 5 years

5. Funding options for start up

6. Proposed charges and forecast profit/loss figures for first two years

7. Proposals for how IT can be incorporated into the new facility

Section 2: Identifying Eurosec Automation and Security Systems resource capabilities

Before the beginning phases of the project take place, and the location is picked, we will analyze Eurosec Automation and Security Systems resources and determine the strengths and areas needing improvement as well as identifying potential performance gaps.

The first step is to identify the strengths and areas needing improvement by researching current resource capabilities (Hogan, Lackhani, & Marti, 2008).

The 7S Model will be used to help Eurosec Automation and Security Systems and the Alpha Performance Management consultants have a better understanding of the resources available. The 7S approach suggests that seven factors of an organization are needed to create a perfect balance (Peters & Waterman, 2004). All seven aspects support one another and when this happens at an optimal level the organization can claim they are "organized" (Peters & Waterman, 2004). If one factor is off it affects the other six aspects.

Summary of the 7 S's

Share values- this is a team-oriented staff that works together thus the shared value is a strong component of the organization

Style- A great culture is in place for staff and consumers as the organization thrives on exceptional customer service and support for business

Staff- The staff is loyal, trained, and well paid with bonus opportunities for outstanding performance

Systems- This is another strong area because the company excels on innovation and emerging technology

Strategy- The strategy has been strong in the past but is currently in a transition phase as the organization is attempting to grow into a global securities company

Skills- is a strong area for the organization, but with emerging technology- constant reflection, adaptation, and training are a necessity

Structure- The structure is well defined and a strong characteristic of the company

SWOT analysis

SWOT is an overview of both the internal and external environments in the strategic planning process (Dealtry, 1992). Environmental factories internal to the business can be described as strengths (S) or weaknesses (W, and those external to the organization can be recognized as opportunities (O) or threats (T) and are all components of the SWOT analysis (SWOT analysis, 2011). This analysis provides the organization the necessary information to help match resources and capabilities to the competitive environment they are in (Dealtry, 1992).

Below- SWOT analysis identifies Eurosec Automation and Security Systems competencies.

Outcome

There are limitations and weaknesses but overall the strengths outweigh the weaknesses. The strengths of the brand name, the established strength in customer service, and the reliable partnerships in place by Eurosec Automation and Security Systems make them a successful candidate to expand globally and compete against other financially strong competitors.

ADKAR Analysis

After a business recognizes their strengths and areas for improvement the next step is changing for improvement (Hiatt, 2006). The ADKAR model provides the necessary building blocks for change in business and has been in use over 10 years and by over 900 businesses (ADKAR change model, 2011). The ADKAR model is believes in two principles, people change not organizations and change is successful when individuals change matches the stages of organizational change (Hiatt, 2006).

Awareness- need for change

Desire- wants to make change happen

Knowledge- how to change

Ability- implementing new skills and behaviors

Reinforcement- retention after change has occurred

Section 3: Choosing the geographical location

Based on market research and the brainstorming session there are many countries that would make excellent choices for Eurosec Automation and Security Systems. However, three countries were picked from a long list, and they are:

United States

China

South Africa

To help Eurosec Automation and Security Systems choose the best geographical location the PESTLE analysis shall be conducted. PESTLE meaning Political, Economic, Sociological, Technological, Legal and Environmental (PESTLE analysis, 2011). PESTLE analysis is used to guide an organization by providing environmental influences to benefit in decision-making and be better suited that its competitors to respond to changes (Cheverton, Foss, Hughes, & Stone, 2005).

Country Information provided via the CIA the World Factbook- U.S., China, and RSA

Factors / Countries

United States

China

Republic of South Africa (RSA)

Political

USA is politically stable. Government supports foreign investors. Political unrest is unacceptable.

Opportunity

China is a communist state but since the 1970's has become market friendly. Political unrest is unacceptable.

Opportunity

RSA is an emerging republic and is working on becoming a global player. There is still some political unrest with other countries in the area.

Threat

Economical

The United States has been a world leader economically for many years. However there massive national debt and high unemployment rate has hurt many.

Threat

China is an industrial leader and has been fairly strong against the downtrodden world economy.

Opportunity

RSA is working hard to become a recognizable world power economically. Still struggling with economic issues facing an 18-year-old republic.

Threat

Social

A free country with freedom for all and a strong educational system.

Opportunity

A communist country with freedoms in global business and a strong educational system.

Opportunity

A young republic that promotes freedom and opportunity for businesses. Educational system is vastly improved.

Opportunity

Technological

Still a major player with foreign investment. All companies are still based here. If not tops on the list…very close behind

Opportunity

Major foreign investment. All major companies are based here. Considered #1 by many

Opportunity

Foreign investors are beginning to pay attention to the RSA. On the rise to becoming an international player in the global economy.

Opportunity

Legal

Excellent and fair legal system.

Opportunity

A strong legal system that is supportive of businesses.

Opportunity

An emerging legal system that promotes freedoms and is trying to attract businesses.

Opportunity

Environmental

Issues with pollution and other waste materials. The government has passed strong legislation to help protect the environment.

Opportunity

Issues with pollution and other waste materials. Government is less stringent on businesses.

Threat

Issues with pollution, disease, and many illicit drugs. Government is working on improving the environment.

Threat

Opportunity/Threat Index

Opportunity 5 / Threat 1

Opportunity 83%

Opportunity 5 / Threat 1

Opportunity 83%

Opportunity 3 / Threat 3

Opportunity 50%

Outcome

The above indicated that the United States or China is the most suitable choices for global expansion for the Eurosec Automation and Security System. Eurosec Automation and Security System will first venture into the Far East and develop a global entity in China because of their strong economy. The United States will be next in line for global expansion; South Africa will not be chosen this time but will remain a candidate in the future.

China is emerging as the next superpower and has tremendous resiliency against the economic struggles many other countries have faced. China has also opened their doors and almost all major businesses have established roots there. There are issues with pollution and the environment, but the government in China is working to correct those.

Section 4: Methods of Expansion

Partnership with existing security company

Partnership with an existing non-security company

Growth opportunities

Opportunities can be found through a partnership with an existing security company or with an existing non-security company.

The options that are in consideration are working in a partnership with an existing security organization at chosen (already built) location or working with an existing non-security company at a newly built location.

Option 1- Partnership with existing security organization / already built facility

Option 2- Partnership with existing non- security organization / newly built location

At this point, the most viable option would be to custom build the premise and add a new partner from a non-existing security company. This would allow Eurosec Automation and Security System to put their imprint on the building and lead the way in the venture. By building a facility from ground up will allow Eurosec Automation and Security System to pick a location and set the preferences that fit the security business the best way.

Cost Comparison

Figures are estimates based on averages of established businesses starting in a new area:

Financially both options have been successful. Over the long-term option two is more lucrative for Eurosec Automation and Security System. Possessing an established building helps create more profit early on, but a new building that can be customized to specific needs is more profitable in the long-term.

Choosing a Location

Currently, the capital city of China, Beijing, has a great opportunity for a security system company such as Eurosec Automation and Security System. Beijing has had several security companies move in over the past five years, but they were forced out of business by Beijing's family-owned security company Security First Beijing. Recently, the brothers that own Security First Beijing decided to retire and sold all of their equipment and buildings. This presents a unique opportunity for Eurosec Automation and Security System to try to establish roots in Beijing, China.

Beijing is a major transportation hub offering railways, roads, and motorways passing through the city (Harper & Eimer, 2010). Beijing is recognized as the political, educational, and cultural center of China (Li, Novey, & Hong, 2005). The city of Beijing is home to over 19,000,000 people and makes up almost 12% of the total financial industry in China (Harper & Eimer, 2010). Beijing is also home to 26 of the top 500 companies in the world, the 3rd most in the world (Li, Novey, & Hong, 2005).

Proposed Facilities & Treatment / Key Success Factors

To succeed in the new market, Eurosec Automation and Security System need to understand key success factors necessary to meet the consumer's needs.

Key Success Factors

Unique concepts in research and development

Quality of product

Pricing of products

Customer Service

Diversity and Variety of services and products

Table below compares Eurosec Automation and Security System competencies to help identify the gaps.

Gap Analysis chart retrieved from brighthub.com

Eurosec Automation and Security System core competencies

GAPS

Concepts in R & D

Company has a R & D. department to stay on top of emerging technology

Quality of products

Company's success has stemmed from product quality

Pricing of products

Varies from market to market

Customer service

Excellence in customer service has helped them grow

Cultural differences

Diversity and Variety

Products will vary from home to business

Learning about dwellings and businesses in Beijing to supply the diversity and variety needed

Gap Analysis

Gaps are holes in an individual or businesses ability to perform tasks (Franklin, 2006). There are several gaps that need to be addressed by Eurosec Automation and Security System if they want to have success in Beijing, China. Pricing, quality of products, and research and development are not currently presenting any gaps that need addressed. Two areas in which gaps are showing are customer service and product diversity and variety.

Customer service will have some gaps because of cultural and language barriers that exist; once the staff from Eurosec Automation and Security System takes a cultural awareness and language training course the gaps will begin to disappear.

Gaps also exist in the area of product variety and diversity. Once the staff and management team at Eurosec Automation and Security System has a better understanding of the consumers needs, both in home dwellings and in business, the gaps will shrink and the variety and diversity of products will increase.

A private survey was sent to businesses and homes and asks security questions to give Eurosec Automation and Security System a better idea of what their Beijing consumers will need.

Some of the results obtained:

Better training on how to use the equipment

More hours of operation

A variety of needs in equipment and security devices

A 24-hour-hotline to answer question and provide information

Fast response times in providing technical support

Discounts for being loyal customers

Specific and tailored needs for different entities

Setting objectives, mission, and values

Mission

To offer our valued consumers a variety of security options, by making use of the newest and most efficient technologies, that is beneficial to the individual wants and needs while providing the best customer service and support.

Vision

To expand Eurosec Automation and Security Systems brand internationally mainly through partnerships with established (businesses) and become a major player in the global market by establishing roots in North America, Africa, Europe, and Asia. To continue providing excellence in customer service and support to established clientele.