1.1 Organization’s Portfolio
Jinasena (Pvt) Ltd has a large history with it from 1932 and currently it has been the pioneer of the business world as an Engineering company.
As this is a large scale group of company, Jinasena group mainly owns the following companies in Sri Lanka.
- Jinasena Engineering Technologies (Pvt.) Ltd. (JET)
- Jinasena Industrial parks.
- Jinasena Innovation and Technology Institute.
Here, it is selected Jinasena Engineering Technologies (Pvt.) Ltd. to continue this assignment.
Jinasena Engineering Technologies (Pvt.) Ltd. (JET) is an engineering company which provides the engineering services to the market with the use of latest technologies.
They are specialized in following areas.
- Design and Fabrication of customs built machinery and equipment.
- Environmental Engineering solutions.
- Industrial automation.
- Weighing, conveying and storage systems and solutions.
- CNC retrofitting.
- Heating, cooling and ventilation systems.
- Machining services.
- Automobile engineering.
They develop the machineries which match with the modern requirements and they always try to provide these services with the latest technology and the knowledge.
Followings can be identified as several products which they release to the market under their company name. (Appendix 1)
- Water pumps
- Water purifiers
- Electric motors
- Drip and Sprinkler Irrigation systems
- Agricultural Machineries etc.
Likewise, this company enriches with different types of products for different uses.
All these products are designed and developed by the company itself with the contribution of their resources of both human and machineries.
As a well reputed organization, they use various strategies within their business with the purpose of overcome the competitionas well as the purpose of developing the organization more than today. As this is a family owned business, currently it handles by the 3rd generation of Jinasena family.
In according to their strategies, they mainly focus to provide a better and different service to their customers within the Engineering industry. It is able to recognize that following types of strategies they use within their organization to fulfill the above mentioned tasks.
- Product differentiation
The company designs and develops various types of machineries with various functions which match with various needs. As an example, they produce water pumps for the consumptions of not only the industry but also for domestic uses with various capacities.
- Technological advantages
JET always tries to apply the latest technologies with their services to provide a better service while improving the organizational growth. CNC technology can be identified as an example for a modern technology which they frequently use with their products.
- Pricing strategies
They provide the machineries with different functions and also maintain various pricing strategies for them. Under this strategy they produce their products with a large range of pricing scope which can reach for each and every customer coming from any financial background.
- Promotional strategies
Jinasena Engineering Technologies (Pvt.) Ltd always tries to implement unique promotional activities which can’t compare with other organizations in the industry. Here, it was able to recognize so many different types of promotional methods such as charity programs.
Jinasena Innovation and Technology Institute, Jinasena Foundation and Jinasena Tsunami Fund can be mentioned as several examples.
- Management strategies
Unlike the other group of companies, this company is not consisting with a director board. Chairman is the person who holds the Director post also. They use this strategy with the aim of making effective and more accurate decisions.
2.1. Organization’s strategies
Jinasena Engineering Technology (Pvt.) Ltd has been paid their attention for several areas in strategic ways. The management thinks that these areas offer more contribution towards the organization’s success. So it has concentrated on the following areas.
- Produce the goods with a higher variation.
- Apply the latest technology as can as possible for the productions.
- Attract more customers.
- Use effective promotional methods for a higher benefit.
- Fulfill the social responsibility as an organization.
With the purpose of achieving the above mentioned tasks, it has implemented the strategies under the following themes within the organization.
- Product Differentiation
- Technological Advantages
- Pricing Strategies
- Promotional Strategies
- Management strategies
It can explain them as follows in detailed.
Previously, though this company consisted with only few products, now it riches with a large range of product categorization. The management has decided to cover a wide range to fulfill the needs of the each and every customer with their products as a strategy. So this company has a higher product differentiation. (Appendix 2)
Here, the products have been designed and developed with various functions and also they are producing with different capacities. So the customers are able to choose the products according to their needs under this brand name.
The company hopes to attract more customers through this strategy. Because, the company should be able to fulfill each need of them. Otherwise it is able to find the alternatives or substitutions by the customers. It can directly cause to reduce the custom base of the organization. So not only as a strategy of attracting more customers but also as a strategy of profit maximization, this organization uses the product differentiation strategy widely.
Here, this organization uses the CNC (Computer Numeric Controller) machines with its productions. By using this technology they hope to produce the products with matching the latest technology. So it hopes to release the productions with all facilities for clients.
By using this technology it hopes to do the productivity very effectively and efficiently. Because when use these machineries it is able to use it within the whole 24 hours. So, it helps to continue the production with a higher efficiency.
Also it has a good repeatability than other technologies and it helps to produce the each product with the same quality and it supports for time saving also.
This technology is used by the company as a strategy of minimizing the employee cost. Because, it is able to becomes familiar with this machine very easily. Because of such reasons, Jinasena Ltd use CNC technology as a technical strategy within the organization.
While it is able to seeing a large product differentiation within this organization, it has developed a price list which carries the prices within a large range with relevant to various capacities and functions of products. It has given the opportunity to all customers to try for their products though they represent any kind of financial background.
The purpose of developing such kind of pricing strategy is to attract more customers towards their products. Otherwise the customers may shift for another company who provide them at a lower price. Here, the customers are able to buy the product which match with both budget and the need. (Appendix 3)
It was able to see that Jinasena (Pvt.) Ltd is using different types of promotional strategies which are unique to them. Specially, the company has concentrated about the charity programmes instead of other media. Some of them are,
- Jinasena Innovation and Technology Institute
- Jinasena Foundation
- Jinasena Tsunami Fund
Jinasena Innovation and Technology Institute has established with the purpose of giving the hand for poor school leavers towards a career who are living in the rural areas. The company selects 100 students for a year and they are given the knowledge in technology with the all other facilities such as meals, accommodation etc. free of charge during one academic year.It can be seen several purposes within these strategies including this institute such as,
- Guide the school leavers for a better career life who represent the lower financial background.
- Hire a better work force from the Institute who has gained the knowledge relating to the organization’s subjects.
- The areas which represented by these youngers are offered by the solar power systems as they do not have even the power facility. Through this, the organization hopes to build a trust worth within the parents’ mind and also hope to build a trust about the products of the company within the villagers’ minds.
- Also sponse for the libraries, labs etc. for the schools in the rural areas.
It means that through those projects, they do an indirect promotion for their products while fulfilling the social responsibility. (Appendix 4,5)
In Jinasena (Pvt.) Ltd do not have any board of directors. All the management decisions are handled by the chairman of this company. It uses this strategy as a method of making more accurate and effective decisions. Because the management thinks that the decisions made by a single person is more effective as this is a family owned business. (Appendix 6)
But, it hires more qualified work force for all executive and non-executive posts. Not only that, the company sponses for them for the higher educations also.
2.2. Applications for the theories
2.2.1. VRIN Framework
Popular brand name :
Jinasena (Pvt.) Ltd has a well reputed brand name with them. It has maintained the population since more than 80 years within the industry. Though the company doesn’t use more promotional methods, it has got the ability to keep in touch their population.
Island wide distribution network :
This company has a wide distribution network in all over the country such as Puttlam, Trincomalee, Anuradhapura, Colombo, Galle, Thissamaharamaya, Kandy etc. So, it has got the ability to distribute the products effectively. (Appendix 7)
Qualified workforce :
Jinasenena Ltd. enriches with qualified workforce with them because they always concentrate to hire the qualified people for the vacancies. Not only that, they always try to add a more value for employees by sponsoring them to get the higher education qualifications.
More space :
Here, they have more space for their company and factory premises. It has added a more value to the organization as they have more than 18000 square meters for their premises.
- Rare –
In Jinasena, chairman is the only person in the management board. There is no any director board though it is a group of company. Chairman handles the every decision by himself. It is very rare to see such a management especially in a family owned business.
- Inimitable –
Unique promotional methods :
The organization uses unique promotional methods. It has implemented those as indirect promotional methods through the CSR programs such as Jinasena Innovation &Technology Institute. So that, it has been differ from other organizations because of these unique programs.
Motivational factors :
Jinasena Ltd uses difference types of motivational factors for the employees more than the monetary things such as;
- High welfare facilities
- Psychological things (Sil observations, Meditation programs, pilgrimages Psychology improvement seminars and trainings etc.)
- Opportunities for higher education etc.
So, the organizations are unable to substitute these things easily.
2.2.2. Porter’s Five ForcesModel
Threat of entry :
- Product Differentiation
If the company produce a product which already exists in the foreign market, then it will be very hard to sell it. Because, normally customer’s attraction goes to the foreign products even though they are quality or not. So it is very difficult to release such a product to the market.
Buyer Power :
- Technological Advantages
They use the technological advantages to provide a better service to the clients by using these technologies like CNC. When the company uses these techniques they can attract more clients while improving its growth.
- Product Differentiation
The organization produces more productions with various functions and with various capacities which can fit with buyers’ needs. It means that, they have given the priority for the buyers’ needs.
- Pricing Strategy
Here they have decided their prices according to the functions which are available at the products. So the clients are able to spend a reasonable value for the products which match with their needs and budgets.
Supplier Power :
- Management strategy
Here as there is only one person in the management, the suppliers are able to take the decisions on their supplements very easily. If the company has so many members in the management board it is very difficult take one decision as they have different thoughts.
Competitive Rivalry :
When the company releases a new item, it has to take a risk of enjoying a profit as it is a new one. So it causes to minimize the financial growth and it will increase the fixed cost for those items. So the company has to bare it because of the competition.
- Political : Government rules and regulations
Acceptability of the brand name
- Environmental : Advocating eco- friendly environment
- Social : Acceptability of the brand name
- Technological : Access to modern technology
- Economic : Government tax policies
Financial background of the clients
Inflation rate of the country
- Legal : Contracts with partnering companies
Government rules and regulations
2.2.4. Value chain
Jinasena Ltd riches with better infrastructure because it has more than 18000 square meters as the space for company premises. So it has offered a quality working environment for employees.
Human Resource Management
This company is consisting with a management which handles by the chairman. HR manager handles the decisions of the chairman which are related to the human resource.
Here Jinasena Ltd always tries to apply the latest technology with the products as those are engineering services related products. Nowadays also it uses such machineries like CNC.
Primary activities :
Marketing and sales
The company uses a high quality pricing strategy, unique promotional methods and many outlets to enhance the sales. Through those techniques, the company hopes to attract more customers towards the products.
When analyze the strategies which use by Jinasena Ltd, it is able to see that there is a unique system is available within the organization to achieve its long term goals. Here, it uses a wide range of product category and a product strategy to reach the customers. It hasn’t tried to attract customers by using the narrow product differentiation. It has always tried to fulfill the customers’ needs while enhancing its growth.
In the technological side also, it has tried to use the best technologies with the products. Here, it has paid the attention for the price which the organization has to spend for those technologies also. The organization has done it, because if it has to spend a large amount, then they have to apply it for the products also. It means that, a part of that burden has to bear by the customers. So, it has used this much of technology to balance the prices of the products.
Not only that, this company uses unique promotional methods. Through the CSR activities, it tries to give a promotion for the products without cheating customers. Here, it has tried to spend the money more worthy.
When it comes to management strategies, it has paid attention to take the most accurate decisions more effectively. It tries to add profits to the organization’s account by without spending money for hire more and more employees as directors.
It is better if the organization pay the attention to invent new products while trying to improve the product differentiation on the same product with various functions and capacities. If the organization is able to do so, it will be able to attract not only the local market but also the foreign market mare than now.
Also, the organization is able to use more technological machineries more than now, such as ‘Shiaring machines’, ‘Lesser cutting machines’ etc. It will help to improve the quality of the products.
Not only that, if the company uses new and more promotional methods it is able to increase the custom base more than now. In the current system, it covers only the rural areas and it will not give any massage for other customers about its products. So if it uses another method also such as paper advertisements, bill boards, TV promotions etc. it will really help to increase the sales.
As there is one person handles the all decision, sometimes it may be a disadvantage for the organization. Because when it comes to make a decision, it will be very useful to take the ideas of others also. Sometimes they may have good ideas about the relevant case. So, if the company is able to fill the management at least with more than 2 members, it will directly cause to make much more accurate decisions related to the organizational success.
Likewise, Jinasena Ltd is using better strategic plans with their business and it also try apply unique plan with its business. So, if it is able to apply the above mentioned points also with its strategies, it will be able to achieve the ultimate goals very easily.
Anon., 2017. Tissa Jinasena Group. [Online] Available at: http://www.tissajinasenagroup.com [Accessed 3 June 2017].
Anon., 2017. Tissa Jinasena Group. [Online] Available at: http://www.jinasena.com [Accessed 3 June 2017].