House To House Movers
The company being focused on in this case is “House to House Movers”. This company is situated in Pretoria, South Africa. The main function of this company, reason why it was started, is to provide relocation services to the residents of Pretoria and other cities within South Africa. It also offers ware housing service. House to House Movers was established in 2003 and it had a good run, where the company was realizing growth and profits, until 2008 when the profits started reducing and soon turned to losses.
This case analysis, seeks to look into the possible causes of the sudden slump of House to House Movers and how these causes can be tackled (solutions to problems existing). In addressing this matter, we shall look at various issues; how and by whom was the company created? What measures were in place during the period when the company was experiencing a good run? What events led to or preceded the sudden decline of the company (within and outside the company)? Finally we shall look at the possible solutions to the existing problems (recommendations).
How was the company started?
House to House Movers was established in 2003 by two Kenyan expatriates, Wafula and Kamau, living in South Africa. Having studied and lived in the country for close to 6 years, the two gentlemen decided to implement an idea which they had thought of while still in Kenya, their home country. The reason why they had not implemented the idea in Kenya was because they lacked the financial capital at the moment and the market was not conducive then.
What measures were in place when the company was experiencing a good run?
Although the company was young and the idea was generally new in the region, the management team had put in place great measures that would see to it that the company maintained its good run. A management structure was in place and all protocol was observed when handling all matters pertaining to the company. At the top of the structure were the two partners who served as the Chief Executive Officers and the directors of the company. One was the administrative director while the other served as the director in charge of the operations. Directly under the directors were the managers, who were employees, in charge of human resource, finance, operations and purchasing and supplies. There also existed a company secretary/legal officer who served in the same capacity as the mangers. All the other employees came under the managers and were employed through the human resource department. In total, the company had 94 employees including the managers and the subordinates (Michael, 2009).
The two directors had monitored the existing environment and therefore knew where the opportunities lied. The existing environment was perfect for this business as not many companies had ventured into this line and the city was gradually growing and therefore people needed easier ways of relocation.
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