Asphalt, Trucking and Pavement
BUSN115: Introduction to Business and Technology
Professor Gary Foster
June 12, 2012
I have completed a SWOT Analysis on a company named Asphalt, Trucking and Paving, more commonly known as ATP. Bill Watts was kind enough to allow me to interview him about ATP; Mr. Watts is ATP’s Controller. As Controller Mr. Watts oversees all the companies operations from the bid to the finished project. ATP’s mission statement is as follows; “ATP is a full-service asphalt paving contractor providing San Diego’s construction industry with an eco-friendly alternative to conventional methods of asphalt concrete mixtures, ...view middle of the document...
The Daley family has been paving the streets of San Diego County since the early 1900’s, gaining a huge network of clients along the way. This is a very good strength for ATP in that ATP does not need to spend valuable time and resources to market themselves. ATP already has a pre-established clientele that trust the Daley name, providing ATP with consistent business. Don Daley has strived to honor his family name by providing great products and services to southern California and in doing so has kept the business alive through the recession. (Watts, 2012)
ATP’s third strength is that they have a great centralized, low-cost location. ATP is located in Chula Vista California just a mile west of the 805. The location is not only very affordable but is also close to major freeways like the 5, 805, 15, 163 and the 8 providing expedient access to anywhere in southern California. The Chula Vista location is also within close proximity to CCA asphalt plants and by having the trucking and contracting companies consolidated on to one property, ATP has lowered cost and improved efficiencies. (Watts, 2012)
With so many people and businesses in the world today, staying afloat has become a very complex game. Many businesses business is shutting down other companies by finding weaknesses and imperfections. One great weakness of ATP is the environmental controls and regulations. Bill Watts stated that, “mounting regulatory climate in California is making the threat of fines disastrous, effectively increasing the cost of constructing roads and/or making bids.” (Watts, 2012)
Contractors have seen a huge drop in the availability of projects in the recent recession years. This is an area of weakness for ATP because some contractors become so caught up in the competiveness of the bidding that they sign a contract to complete a job below cost and work themselves out of business. By doing this that contractor has taken another job from another contractor making the competition thicken. When ATP cannot make an offer as inexpensive as the kamikaze company next to them at the bid, ATP loses job opportunities.
Unions cause many problems for ATP making unions a weakness. Unions are always out to get any non-union contractor making it harder to keep their good contractors. Because of unions even non-union workers have to pay into them. Project Labor Agreements (PLA’s) make a contractor work under union rules and fees. The unions have done a great job in making business extremely hard and expensive to operate outside of being apart of the union.
Opportunities have risen from the recession for ATP; as money became tighter the competition to get jobs became fierce. Many companies were unable to pull through the roughest times between 2008 and 2009, which has created more opportunities for companies that have persevered through the economic crisis like ATP. Now ATP is able to complete more contracts because more customers come to ATP for business...