Thurlow Case Study

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FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTANCY

Master of Business Administration

BM 6013

MANAGEMENT AND ORGANISATIONAL BEHAVIOUR

Group Assignment

Case Study 5:

Thurlow Limited

Prepared for:

PROF. DR. SYED AZIZI WAFA SYED KHALID WAFA

Prepared by:

Date of Submission: 12 November, 2015, (Week 9)

TABLE OF CONTENTS

1.0LIST OF PROBLEMS        

2.0        PROBLEM STATEMENT        

3.0 ALTERNATIVE STRATEGIES        

4.0 EVALUATION OF ALTERNATIVE STRATEGIES        

5.0 THE BEST STRATEGY AND JUSTIFICATION        

6.0 IMPLEMENTATION        

6.1 Short term implementation        

6.2 Long term implementation        

7.0 Conclusion        

CASE SUMMARY

1.0        LIST OF PROBLEMS

Base on the case study was given, we identify the following four (4) problems are:

1.1 Too many subsidiaries and product line in the organization

From the case study, success of the project which is the company won a contract for a major development in Australia, led to a policy of actively pursuing international contracts, and in the following years the company became involved in projects all over the world. It developed strong working relationship with the major lending agencies and working for them. And after that, Thurlow was become stronger than before. In case that except the product, Thurlow and its subsidiary companies also offered clients a variety of services which included all design and engineering services. From the figure which shows about the letoro project of Thurlow Ltd. we can see about the variety subsidiaries and product line such as SAS, SEDA, Housing, SOPA, Post Office and Transport.

Because of too many subsidiary companies and the variety product line and services, Thurlow must focus on many of that, and they also need staff to work. To manage these workers, they need hire much more managers to do it. From the case study we can see that because they offered too much of the products line and services, they need to pay much more fix cost under the big financial problem.

1.2 Lack of funding in daily operating

Because of shortage of development funds in Soronga, the project would depend on foreign funding. Between NIDA (New Zealand International Development Agency) and PRDB, NIDA was pushing for the project to begin, but due to the political reason they didn’t decided. Compare with NIDA, the PRDB finding an agency to assume the lead role was not difficult. PRDB offered a low-interest loan of $20,000,000, to be matched by a credit for an equal amount. But because of the cross-effective, even that the lenders would agree to a modified version, the project still could not go ahead until the time when this was settled.

1.3 Too many different culture background lenders in the project

Based on the case study, there are many lenders involved in the project with different culture background. It can be observed from the organization relationship chart. Although Mr.Sukiro is the chairman of the project, he had no authorities in any decision makings. It is because due the project is a funding study, the New Zealand government wanted to have their own ‘watchdog’ which is Mr.Robbins to involve in.

When there is more than one lender in a project, it is hard to make a decision as there is no one who responsible on it. As a result, it will be time consuming for the project to be done.

1.4 JDP might withdraw from financial commitment of the project

Due to Japan was one of SEDA’s largest aid donors. In order to get the financial aids, JDF had threaten SEDA by withdraw from the financial commitment project if YAMAGATA didn’t receive the contract as YAMAGATA bids 2% more compare to Staubing. However, SEDA is not affordable of losing Japanese aid as the development plan means a lot for SEDA. Meanwhile, another financial aid from Canadian gave Thurlow some pressure on political clout. As a result, it forced SEDA to put pressure on Thurlow in order to response on JDP demands.