Driver Consult LLC Organization Analysis

The trading name of the organization is Driver Consult LLC, which is a member of Driver Group plc. It was established in the UAE in 2006 as limited liability company. However, Driver Group plc was formed in 1978 in the UK, and is currently a publicly owned cooperation and float on the London Stock Market in October 2005. Even though stakeholders own the company, the board is responsible for effecting overall strategy and financial performance of the company. The Board also considers the appointment of directors and senior managers in running it on behalf of the Board, which mainly consists of Country and Regional managers.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Size of the Organization

The first half of 2015 was characterized by investments, with various acquisitions and restructuring of the business. The operating loss was approximated 1.8m while in 2014, the company made a profit of 3.1m. Even though there was revenue loss in the first half of the year, in 2015 it grew by 23% in the second half to reach 48m from 39.1m in 2014. The company increased its headcount in 2015 from 150 to 518, which is a massive 41%.

Customer base/Services offered

Driver Trett is mainly a B2B company and currently works for the largest property management, contracting, and utility companies, as well as government bodies and law firms globally. It provides a range of construction consultancy services around the globe. These are claims management, dispute resolution, training, seminars, lectures, and workshops, expert witness services, project management, planning, and programming, as well as quantity surveying and commercial management. The services offered can be used in all project life cycle phases while also bridging the gap between legal, construction, and financial sectors.

Main Competitors

While all businesses face competition, Driver Trett faces significant competition in the Middle East where the main competitors are FTI Consulting, Hill International, GMCS, D&A Consult, HLP Consulting, KEO International Consultants, and Systech International.

Marketing Metrics

According to Amber (2000), there exists a fundamental problem when it comes to measuring the marketing performance of a company, which is mainly correlated to identifying and defining both the best practice and best metrics. Even so, Llonch, Eusebio, Ambler, 2002 assert that marketing metrics can be divided into six basic groups. These are financial indicators, measurement of the market, measurement of customer behavior, measuring the movement of clients, measurement of direct customers, as well as measuring innovation. Driver Trett uses a variety of marketing metrics about the external environment. Some of the Key Performance Indicators the company uses include financial and operational KPIs, as well as the level of investment. According to Driver Trett 2015 annual report, the company clearly stipulates that the KPIs from H1 to H2 have yielded benefits characterized by a solid second half (H2) performance. In essence, there was an increase in utilization levels from 73% in H1 to 79% in H2 in 2015 and the fee rates grew by 5% in 2014. In effect, the gross margin increased from 19% in H1 to 25% in H2 of 2015. The underlying operating profit percentage also gained significantly, by increasing from -2% in the first half to 6% in the second half. For this reason, this indicated that the marketing endeavors were succeeding in the various market the company has operations in including the U.K. and the U.A.E. Even so, the overhead costs increased significantly. Since this provides a negative marketing metric, it was attributed to the relocation of the overhead from what was previously allocated in cost of sales, and secondly, due to the increase of cost in support of the Four-Year Growth Targets & Strategic Plan. The company also uses revenues and profitability as a source of marketing metrics where positive strategies in marketing are characterized of positive and growth in revenues. The company also utilizes effective leadership as a form of marketing metric, where success in each operational country dictates success in marketing. Coupled with revenue, the company can adequately use brand equity metrics, such as relative customer satisfaction, commitment, relative perceived quality, and market share about competition. In essence, high revenues and profits signify satisfaction among clients, retention, customer increment, as well as effective channel and distribution networks. These are aspects that the company takes into consideration while marketing. The company also uses internet advertising where the company capitalizes on its website in selling the services

1.3. Effectiveness of Metrics

According to Solcansky, Sychrova and Milichovsky (2011), to be effective in marketing is a fundamental interest for every company as it ensures business sustainability and competitiveness. For this reason, employing the right marketing metrics is paramount. Besides, through the metrics and key performance indicators, companies can be able to demonstrate effectiveness and efficiency. According to Gaiardelli, Saccani and Songini (2007), financial metrics, such as return on investments and increased profitability are effective when used in analyzing marketing success. In fact, when the financial metrics are used, increased return, revenues, and profitability signify effectiveness in marketing. At Driver Trett, the company had increased returns, profits, as well as revenues, which is an indicator that the marketing endeavors were a success. Also, as Zahay and Griffin (2010) point out, customer retention is an important metric for marketing because it directly highlights how satisfied the clients are. Since Driver Trett has a high retention rate, the marketing strategies are effective. Gummesson (2004), Ramani and Kumar (2008) and Hunt and Arnett (2006) articulate that the for a firm to develop a superior position in a market, I must use its resources effectively, interact with customers in a satisfying way, adopt total quality practices, as well as the measure is capabilities. Considering Driver Trett, the company meets these criteria due to the high retention rates of clients, as well as its competitiveness. For instance, the return on relationships (ROR), which is characterized by high customer retention rate is effective in gauging the marketing strategies for a company where a high retention rate signifies a high rate of effectiveness (Gummesson 2004). In addition, Bahadir and Tuli (2002) further stresses on the important of using financial returns in gauging the efficiency of a marketing strategy. In essence, as the writer asserts, when there are high returns, including the companys profitability and revenues, it signifies the effectiveness of marketing and thus is a key performance indicator that is highly effective.

2.1. Predictive Metrics and External Environment Change

Driver Trett will have significant external environmental changes that will have a significant effect on the performance of the firm on matters of marketing within the next three years. Firstly, using competitor metrics, the level of competition is expected to increase significantly over the next three years. As pointed out earlier, Driver Trett faces significant competition in the Middle East where the main competitors are FTI Consulting, Hill International, GMCS, D&A Consult, HLP Consulting, KEO International Consultants, and Systech International. For this reason provided that the market share of Driver Trett. Driver Trett has a market share of 10%, which is poised to decrease over the next three years. In essence, most of the competitors have specialized in similar services with Driver Tretts. For instance, there is a similarity in the services offered. The competitors, just like Driver Trett also offer consultancy services related to claims management, dispute resolution, training, seminars, lectures, and workshops, expert witness services, project management, planning, and programming, as well as quantity surveying and commercial management. For this reason, given the competitiveness of these firms, where they have specialized in more than one marketing channels, including digital marketing, aligning pricing strategy with the company strategy, market segmentation and differentiation, product lifecycle management, as well as modelling profit maximization simulations, there is bound to be increased competition in offering these similar services.

Besides, according to the Annual Report of 2015, Driver Trett has expressed its intention to adopt the Four-Year Growth Targets & Strategic Plan that is aimed at doubling the revenues and increasing profit percentage. In accordance with the plan, the company aims at becoming the global market leader in the proviso of commercial and dispute resolution services to all industries, and it plans to achieve this by critical mass in its AMEA market and technical staff who are prepared to travel around the region to serve engineering organization, as well as multinational construction while also optimizing its utilization levels. However, it should be noted that the competitor firms are also aiming to increase their revenues and profitability. Besides, Driver Trett is also ensuring that its leadership is optimal by ensuring that they add qualified personnel, including the chief operating officer who will significantly improve the companys leadership given the fact that the company is aiming at increasing its headcount. Even so, the competitor firms are also investing in leadership to improve their management in a multinational way. According to the 2015 Annual Report, Driver Trett in their four-year plan, they also assert that the company aims at becoming a market leader in the provision of planning, quantum, and technical expert witnesses. As the company points out, this will be achieved through the DIALES construct, which will provide over 40 internationally renowned experts for supporting its global business, including global footprint offices, cultures, and languages. Even so, the competitor firms, being multinationals, they also aim at becoming market leaders in the provision of their services. Besides, Driver Trett, as well as the firms, also intend o leverage their commercial, expert, and dispute programs to provide complete and effective services to their clients. For this reason, since the firms will adopt similar strategies, the external environment will be characterized by increased competition, which may render a decline in profitability and revenue decline in the next three years. For this reason, the increase in competition may adversely affect the company regarding income and profits. In essence, even though the company is forecasted to experience significant growth in the next five years, the issue of competition may slow the growth down. In essence, even though the profits and revenues will grow significantly, they will grow at a significantly lower rate compared to when the firm is not poised to experience competition. For this reason, since competition is inevitable the growth rate regarding revenues and profits will significantly be negatively affected.

Also, the company has invested a lot in customer metrics. The company aims at bettering the satisfaction levels of the company. For this reason, the company aims at increasing the retention rates and loyalty. In essence, this can, in turn, enhance the number of clients in the external environment, thereby ensuring that the company will not experience a decline in clients or the revenues and profits. If the company maintains the clients, then there is bound to be an increase in the number of customers, and thus, it will prevent profits from dropping, which creates the perfect environment to ensure market profitability.

2.2. Extent of Impact

According to the 2015 Annual...