Delta Tech: Business Expansion

Delta Tech: Business Expansion

Proposal

Ryan Bartlett (366 2834), University of Wollongong

Bachelor of Engineering - Mining

Introduction

In today’s competitive business environment, organizations must use all possible means to maximize growth and profitability by focusing on strategic directions in business development. Delta Tech has the opportunity to expand into developing markets and industry’s, broadening the company’s landscape and becoming a one-stop shop for state of the art customized manufacturing technologies.

The purpose of this proposal is to identify issues and opportunities for Delta Tech’s future business development, highlighting three possible Strategic Directions for Delta-tech’s consideration and provide recommendations for the Executive team.

The Proposed 5 year goal is*:                        (*assumption for purpose of case study)

• Increase revenues from $8 Million to $12 Million
• Repay any loans or cash deposits required for expansion

In order to fully reach these financial goals a full financial evaluation will be undertake before the final decision on proposal put forward. This analysis will also allow us to determine more accurately the key assumption required to project costing’s and resources required to reach targets including cash flow projections, recruitment and workforce requirements, plant upgrade requirements, distribution channels and key strategic alliances.

Defining The Strategy

Delta-tech, a Wollongong-based small privately owned company, is specialty consumables supplier to local heavy manufacturing and mining sectors.

In the past decade, under management of current owner Ed Palmer, the company has grown from a small-scale maintenance service-provider and equipment and consumables supplier to a highly capable technology developer and small-scale manufacturer of state-of-the-art equipment. It currently employs thirty staff and enjoys annual revenues exceeding $8 million.

Delta-tech, at present, is catering to niche market segments in New South Wales, Queensland and Western Australia with limited exports to Indonesia, New Zealand and South Africa. Delta-tech operates from its purpose-built facility located within the Illawarra industrial precinct and boasts of its cutting-edge manufacturing process technology. Its customer base consists of both small and large companies, but mainly those with specialty needs.

The company’s product-market decisions have reflected a focused, self-paced growth in niche market segments. Its current competitive strengths appear to be superior quality and flexibility associated with their products and services.