KODI: A.IV.3.

3 / COURSE ASSIGNMENT

EUROPEAN UNIVERSITY OF TIRANA

FACULTY OF ECONOMICS, BUSINESS AND DEVELOPMENT
STUDY PROGRAM: MB-MB
SUBJECT: ENTREPRENEURSHIP AND MANAGEMENT OF SME-ES
LECTURER: ANI MBRICA, PhD

Analyzing key components of a small business

Valeriya Smolyakova
 TIRANË, March, 2019

Table of Contents
ABSTRACT ................................................................................................................. 1
1. BUSINESS ............................................................................................................ 1
1.1. Employees.......................................................................................................... 1
1.2. The image of the firm ......................................................................................... 3
1.3. Ways of trading .................................................................................................. 3
1.4. Products ............................................................................................................. 3
1.5. Location ............................................................................................................. 4
1.6. Advertising......................................................................................................... 5
2. COMPETITORS ....................................................................................................... 5
2.1. Competitors analysis .............................................................................................. 5
3. MARKET ................................................................................................................. 9
3.1. Analysis of the general environment....................................................................... 9
3.2. Commercial area .................................................................................................. 13
4. COSTUMERS ........................................................................................................ 13
5. CONCLUSION ....................................................................................................... 16
6. REFERENCES ....................................................................................................... 17
7. APPENDIX ............................................................................................................ 18
ABSTRACT
This capstone project is focused on analyzing a company called Hormigones Domingo
Giménez, S.A, which is a company located on the province of Almería. Its main activity
is the manufacturing and distribution of concrete by-products, and the preparation of
non-metallic minerals to use them as aggregates. This project is based in analyzing key
components of a small business of the company and conclusions/results of the survey,
after processing data collected from the survey and analysis. In 2007, the building crisis
started, and it affected directly to the building area and to the company too, causing a
sale and profitability fall, which led to the closing of a lot of companies. In 2016, 17th
of June, Hormigones Domingo Giménez entered into a voluntary arrangement of
creditors.

1. BUSINESS

1.1. Employees
This is a family business. With a vertical and departmentalized organizational model. It
is directed by three brothers D. Antonio Giménez, Pedro Giménez and María Giménez.
It has a Financial-Accounting Department, a Quality Department and an Operations and
Logistics Department.

In operations, the company has 2019 of 90 of its 112 workers. They are qualified
personnel, workers, drivers, machinists and planners.
The plant is organized with another vertically-controlled microstructure in which a plant
or plant manager and one or more administrators and engineers manage and control the
technical part of the production and direction of the workers. Each of them maintains
computerized control over the firm's supply chain through production control software.
Plants are organized with a plant manager at their head, along with their administrative
controls and the plant's administrative function, primarily focused on supply chain
management.

In the operating plants between ten and fifteen more workers than are the workers or
plant operators. These operators have a high degree of professional training with titles
of Medium Degree or Higher Degree in industry degrees.
One aspect to highlight of the company is the evolution of the staff, since employees are
the key to the productivity of companies, below is the graph:

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 Gráfico 1. Employee Data 2007-2019

Source: Own elaboration, based on compan 1

See annex 1 for more specific personnel data.

As for the personnel, in the previous graph I have based on the number of employees
who were hired at the beginning of each year (January) from 2007 to 2019, as we can
see in the graph we see that it has been changing over the years , since in 2007 the
situation was quite good, the company could do without quite a few employees,
however, when the real estate crisis entered, what the company did in the first place was
to reduce the staff, since there was not enough work or money to pay so many salaries.
As we can see in the graph, after the fall of 2008, in 2010 more employees were hired
but it fell again in 2011, until 2014 the number of employees was maintained, since
from 2014 it increased again.

Finally, I must make special reference to a restructuring of the portfolio that the
bankruptcy administrator has carried out, an Merger by Absorption agreement of the
represented with the mercantile '' Áridos Giménez, S.A '' adopted on April 7 of the year
Two thousand and sixteen, the represented company acting as absorbing company, thus
endorsing the entire assets of the entity '' Áridos Giménez, S.A '', being dissolved and
extinguished without liquidation and incorporating in bulk all its assets and liabilities in
favour of the absorbing company in the terms established in said merger agreement.
It should be noted that the merger by absorption agreement in accordance with the
provisions of article 43 of Law 3/2009, of April 3, on structural modifications of
commercial companies, had to be published in the Official Gazette of the Commercial
Registry , since the company is in a situation of bankruptcy. The purpose of said
publication of the merger agreement was to allow both the partners themselves and the
creditors of all the companies involved, to be able to exercise their right of opposition to
the aforementioned operation.

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1.2. The image of the firm
For Hormigones Domingo Giménez, the image of the company represents a strength,
since due to its long history in the market, its quality service and customer and supplier
loyalty has achieved weight and an important reference in the sector. For this reason, it
widely meets the expectations of customers, being rewarded with their loyalty. The
sales force positively influences the company, since it has trained personnel to deal with
and contact customers, with an emphasis on customer loyalty.

Below we can see the company logo next to a truck with the calligraphy.

Ilustración 1. Logo hormigones Domingo Gimenez

Source: Web 1

1.3. Ways of trading

The production of this company is organized within the nine concrete and cement
production plants that our firm has.
They are geographically distributed among four provinces: Almería, Málaga, Granada
and Murcia.

It is a very well capitalized company since our means of production are highly
technological. They are fully computerized.

This company is highly mechanized and achieves a very high production with a small
number of workers.

The plant is organized into operations in the form of a production line with several open
lines through which the different products pass.

1.4. Products
Hormigones Domingo Giménez, SA, is dedicated to the manufacture and distribution of
products derived from cement, the extraction and preparation of non-metallic minerals
for use as aggregates, the transportation and work with mechanical cranes moved by a
mechanical engine, the construction, promotion and leasing of all kinds of buildings and
works, both public and private, the sale of all types of motor vehicles, both new and
used, as well as the sale of spare parts and accessories necessary for their maintenance.

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It has an important fleet of vehicles for the transport of concrete and mortar, as well as
pumping it with pumps from 24 to 42 meters; as well as a department of portable
concrete and mortar production centers for specific works anywhere in Spain.

It also has facilities for the storage and distribution of bulk cement with a large capacity.
These silos are equipped with the latest machinery technology that allows the supply of
cement automatically and without any contact between it and external agents, making
the entire process watertight. This allows the cement stored in its facilities not to change
its original characteristics in the process. In addition, the fact that the entire process is
watertight prevents any emission of dust to the outside, confirming our commitment to
respecting the environment.

1.5. Location
It is located in several provinces of the Spanish Southeast: Almería, Murcia, Málaga and
Granada, next I am going to draw a map, pointing to the provinces where Hormigones
Domingo Giménez have their concrete plants:

Ilustración 2. Map of the location of the factories

Source: Web 2

In addition, the company has the following quarries in operation, which are located in
Almería.
- Balsa Plata Quarry: it was created in 2004, it is a quarry belonging to Áridos
Maiba S.L., a company dedicated to the manufacture and sale of aggregates.
Which is in the municipality of Berja.
The crushing plant is made up of a semi-mobile primary crushing and screening facility
and a fixed facility with a vertical axis sandpit mill and a sorting screen, with a final
production capacity of 300 Tms / hour. The company supplies the main concrete and
civil works companies in the area, possessing the CE marking for Aggregates, gravel
pits and breakwaters
- Portoro Quarry: Marble limestone quarry acquired in 2004, located in the
municipality of Partaloa, in the region of Mármol and about 40 kilometers from
the Levante coast in Almería.

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In 2007, its operation begins, with the use of a mobile crushing plant, consisting of two
crawler cars, the first of them with a pre-crushing, crushing and a second cleaning, and
the second of them, with a sand mill and it screens with the possibility of obtaining four
different granulometries, with a final production of 200 - 250 Tms / hour. Finally, the
company has a motril silo, which was created in 2008 to store concrete.

1.6. Advertising
Hormigones Domingo Giménez, although it does not carry too much publicity, its
strengths are based on the great sales force that it has, and it also meets the needs of
customers at a good value for money. As for the weaknesses, they are based on the fact
that they do not place orders online, but so that they have all the commercials available
at any time for any order.

2. COMPETITORS

2.1. Competitors analysis

In the construction sector, competition between rivals is high. They can compete
aggressively on prices as well as other dimensions such as quality, innovation or
marketing. Construction is a competitive sector in which Hormigones Domingo
Giménez faces the following most competitive competitors:
Grupo Otto, S.A: dedicated to the manufacture of concrete and plant mortars, as
well as the manufacture of concrete materials and different aggregates. Your
concrete work centers they are distributed throughout the provinces of Almería,
Granada, Malaga and Jaén. Otto Group is the main competitor of Hormigones
Domingo Gimenez, S.A.

Urci Hormigones S.L: dedicated to the manufacture of concrete and mortars.

They have three production plants in Almería.

Logistica Agrocons, S.L: are engaged in the manufacture and sale of concretes,
aggregates, transport of goods, realization, repair, conservation and maintenance
of all kinds of works.

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 Aridos Cutillas Espinosa, S.L: they are in charge of all the manufacturing and
transport processes for aggregates and concrete. They also offer the bagging and
palletising service that allows packaging of all types of material in plastic bags
from 15 kg to 35 kg. Its plants are located in Murcia.

Hormigones Mar Menor, S.L: they are dedicated to the manufacture and
distribution of Prepared Concrete and all types of Mortars in Central. Their
plants are in Murcia.

Gráfico 2. Competitors billing

Source: Own elaboration, based on compan 2

As we can see, the graph above is a small comparison of the company with its
competitors, the data is approximate since it has been based on the amount of sales they
have reflected on the official Informa page.

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The power of appearing substitute products would be oriented more towards the
conditions of the products, analyzing what the product really is. Different companies
compete for a more competitive quality-price ratio, in this case, their customers with
discounts for prompt payment.

Among the concrete substitute products is the "microconcrete" that preserves the
adhesive and coagulant materials of traditional concrete, except for the difference that it
can mold a form of dough or modeling clay, which allows it to work in various fields.
Like any company in any sector, they live thanks to customers, but the power they can
exercise over companies will vary depending on the type of product. In this case we are
in a sector in which customers try to obtain the lowest price (opportunistic customers)
associated with good quality; being these those that greater power exert on Hormigones
Domingo Giménez. On the other hand, we find customers who always buy from the
same company because it means something else (loyal customers), being able to lower
negotiating tensions or simply go to the competition.

The most competitive client and the one with the most turnover in the company
Hormigones Domingo Giménez is Sacyr.
The arrival of new applicants is usually conditioned by the existence or not of entry
barriers, such as patents, economies of scale, significant capital requirements, transfer
costs, access to distribution, government policies, etc.

The number of existing concrete companies is not very high. This poses a reduced entry
threat from new competitors. However, to analyze the possibility of entry into the sector
of the few companies that were interested, it is necessary to take a look at the existence
of entry barriers.

- Entry barriers: There are high barriers that impede market penetration by new
companies, especially in the upper strata where customers take into account the
experience and reputation of the organization. In addition, the capital needs to enter the
concrete business are high. The costs that they have to assume for the initiation of said
activity are high. For example, for the realization of a concrete plant, a high investment
in material would be needed from the battery of hoppers, the weighing system for
aggregates, the lifting and transport system for aggregates, cement silos, cement
conveyors, and conveyor systems. cement and water, mixer and control system.
In the case of the possibility of entry of new competitors, established companies could
use their experience, economies of scale, to make competition more difficult for new
ones. In short, the only thing they could use are mainly these aspects to offer a higher
quality or a lower price.

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Hormigones Domingo Giménez is an attractive sector, with respect to suppliers, since
they act together and have strong resources that make it impose price conditions and
order sizes.

The situation is complicated if the product supplied does not have a substitute product
or there are very few and the cost is high. If the provider tries to integrate vertically
forward, the situation becomes a bit critical.
In many cases, this central component of Porter's model is the main determinant of the
competitiveness of the industry. In the concrete distribution sector, competition between
rivals is high. They can compete aggressively on prices as well as on other dimensions
of quality, distribution, delivery time or financing. The biggest competitors that
Hormigones Domingo Giménez has in Almería are Grupo Otto, Urci Hormigones and
Logistica Agrocons (Ojeda), as I have indicated previously.

SWOT ANALYSIS
Threats
- Current economic crisis
- New and current competitors
- Substitute products
- Scarcity of resources
- Competitive prices
Opportunities
- Strong development of Information and Communication Technologies (ICT)
- Increased consumption of products at reduced prices
- Loyalty with new customers
- Construction growth
- Strategic alliances
Weaknesses
- Maturity phase in the market
- Lack of personnel
Strengths
- Well-trained personnel capable of providing personalized advice with efficiency
and clarity
- Power to implement new products
- Great experience in the sector
- Good relationship with suppliers
- Website
- Good value for money
- Vertical integration system

By combining both strengths (S) and opportunities (O) and weaknesses (W) and threats
(T) we obtain a series of strategies:
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✓ Defensive strategies
With the threat of entry of new competitors in the sector and with the weakness
produced by insufficient promotion, we can conclude that the company should invest in
promotions in order to be more competitive in the sector.

✓ Adaptive strategies
Through the strong development of ICTs and insufficient promotion, we can propose an
investment in the improvement of social networks and website.

✓ Reactive strategies
Regarding the entry of competitors in the sector and highly competitive prices, we
propose to continue with the low price policy that works so well for the company.

✓ Offensive strategies
Through well-trained personnel and the development of ICTs, we can propose the
recruitment of well-trained personnel to be able to adapt to the development of ICTs.

3. MARKET
A business must be in continuous interaction with its environment, and it will depend on
the company to survive and grow. We can consider the environment as everything that
is outside the limits of the company, so it is important to analyze it specifically in
accordance with a methodology that helps us identify the opportunities and threats it
poses.

Hormigones Domingo Giménez, mainly focuses on offering concrete to clients, that is

why the variables that will affect the development of its activity have been identified.
Next, the factors that can determine the performance or the competitive position of the
company will be analyzed. We can distinguish between the analysis of the general and
specific environment of the company.

3.1. Analysis of the general environment

In the strategic profile, the four most important dimensions are analyzed to analyze the
external environment. This analysis is known as the PESTEL Analysis, to identify the
variables that will have the greatest impact on the construction sector, the PESTEL
analysis (Guerras y Navas, 2007). It groups environmental factors into six dimensions:
political, economic, sociocultural, technological, ecological (environmental) and legal.
For this, I have focused the study on highlighting and developing those factors that have
the greatest impact on the sector in which Hormigones Domingo Giménez operates.

• Political-legal factors

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We are in an environment of great changes in which in a few months in Spain there
have been great political transformations going from a real bipartisanship to a variety of
political parties that results in a less stable but more participatory political situation.

The political dimension is related to government stability and general policies carried
out by public administrations in aspects such as taxation, foreign trade or social welfare.
Before the housing bubble burst, government policies were geared towards the
production of an increasing volume of homes, occupation of new land and the growth of
cities, betting on property as an essential form of access to housing. However, the
financial crisis that has affected Spain, and especially the construction sector, has
created the need to redirect policies in this area, towards the promotion of rental.

- In this sense, a government policy implemented since the beginning of 2013 was to
eliminate the deduction in quota for the acquisition of habitual residence. This has hurt
builders and real estate agents, because it affects potential buyers who lose this
privilege, and consequently home buying is less attractive.

- It is worth noting the State Plan for the Promotion of rent, which is regulated in Royal
Decree 233/2013, of April 5, which was created in a context in which there is a
significant stock of new and unsold finished housing, around 680,000. This contrasts
with the difficulties of citizens to access a house, due to the precariousness and
weakness of the labor market, to which is added the restriction of financing from credit
institutions. In parallel, the housing rental market in Spain is very weak, especially
when compared to that of the countries in our environment. According to the latest
census data available, rent in Spain means 17%, compared to 38% in Europe.

- Another of the measures proposed by the government, after the mortgage crisis of
2007, was the creation of a bad bank, a financial entity that buys toxic assets, in order to
save the financial system. Otherwise, if the banks accounted for the assets at their
current market value, they would have to declare bankruptcy and drag the entire Spanish
economy, so the objective of this bank was to control the real estate market. Among the
toxic assets acquired by the bad bank was a large number of homes and buildings,
which he took over in order to stop the fall in prices, and among the recent measures
taken by those responsible for the bank is the rise in property prices 25% above the
value for which they were transferred. In this way, they have decided to maximize high
sales prices against the speed of exiting their stock, in order to maximize profitability
and curb the drop in prices.

In the absence of political stability, the impact this has brought to Hormigones Domingo
Giménez has been reduced in sales that have been carried out since 2007, due to the
paralysis of countless works.

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 • Economic factors

Although it seems that the worst of the crisis has passed, we still face economic
difficulties, mainly to highlight is the large percentage of unemployment or the national
deficit.

The International Monetary Fund (IMF) improves the macroeconomic forecasts for
Spain for the next two years. In its Winter Global Economic Outlook report, the IMF
raises its previous estimate of last year's Gross Domestic Product (GDP) by one tenth
and places it at 3.2%. For this year, the momentum is two tenths, up to 2.7%. And for
the next, the advance also improves a tenth, up to 2.3%.

The construction sector is of considerable importance in Spain, due to its contribution to

GDP (around 10%) and employment (around 10%) and because it encompasses a broad
business fabric. The deterioration of the economic situation and the saturation of the
residential market have led to a sharp contraction in construction activity, after a long
period of growth.

The new trend in housing demand to which the evolution of average prices points is still
weak. In effect, this demand would show signs of stabilization supported above all by
purchases by foreigners (located, mainly, in the Mediterranean arc). In the national
demand, on the other hand, factors that help its recovery would coexist with others that
would hinder it. Among the first, it should be noted the economic recovery, the
advancement of employment and the improvement of financial conditions. Among the
latter, the high unemployment rate and the still high indebtedness of families.

What was previously defined affects Hormigones Domingo Giménez, negatively since,
as there is still a lot of unemployment, people do not feel ready to build in case they are
not sold later; and positively, since the IMF reports the improvement in macroeconomic
forecasts that will prevail this year and beyond. Also, this is noted in the sales forecast.

• Social and demographic factors

This dimension includes both the beliefs, values, attitudes and ways of life of the people
who are part of society and the cultural, demographic, religious, educational and ethnic
conditions of the social system as a whole. The evolution of demographics also
influences property prices, and this has been demonstrated by a study by the BIS (Bank
for International Settlements), which argues that the aging of the Spanish population
could increase supply and decrease purchase demand. of houses in more than 1%
cumulative annual until 2050. These data do not mean a certain fall, since the study
estimates that ceteris paribus, that is, keeping constant the other multiple variables that

11
affect the market, demand would fall due to the decrease in the population and,
consequently, its aging.

However, there are other sociological factors that are also linked to housing demand and
could offset the negative factors that influence it. In this sense, the composition of
Spanish households continues to be immersed in a process of change and those made up
of a single person are already beginning to predominate, due to processes such as
divorce, late emancipation and increased life expectancy. In fact, according to INE data,
Spain has experienced a rise in one-person households, of 5.2% compared to the census
carried out last year, and also the European average of inhabitants per dwelling is 2.1
people, while in Spain is 2.4. That is why sociological experts affirm that the positive
factors have more weight in demand than the fact that the country is losing population.

This social and demographic factor seems appropriate to Hormigones Domingo

Giménez, since as I have previously commented, the sale of homes is increasing, and
that means that the more homes they sell, the more homes they have to manufacture and
the more factors they need for said construction, such as concrete, to increase profits.

• Technological factors

Investing in innovation and development is one of the priorities of any company. In the
case of the construction sector, new technologies have revolutionized the market.
Currently it is important to have technological advances that allow us to gain speed and
mechanize the process as much as possible.

Hormigones Domingo Giménez has an R&D policy, since it is equipped with the latest
technology in machinery that allows the supply of cement automatically and without
any contact between it and external agents, making the entire process watertight.
This allows us to ensure that the cement stored in our facilities does not see its original
characteristics modified in the process. In addition, the fact that the entire process is
watertight prevents any emission of dust to the outside, confirming our commitment to
respecting the environment.

In other words, the company uses the appropriate ICTs both to obtain the optimal
product that meets the standards and also prevents environmental contamination and
takes care of the occupational health of all workers.

- Integrated Management System (IMS), carrying out activities that direct and control
the company in terms of quality, safety and health
- Residual water treatment plant
✓ Project will allow the waste water to be purified for use in industry, irrigation and as
a fire reserve.
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- Atmospheric emissions:
✓ Concrete manufacturing process that has control systems to reduce material
emissions.
- Machinery created based on new technology that allows construction times to be less
than before.

3.2. Commercial area

The market share of the sector is positive, since the construction sector is increasing,
especially for the young population building, since they are the ones who want and
prefer a new home. Although due to the economic instability that our country is going
through, there is a certain uncertainty regarding its evolution.

Hormigones Domingo Giménez manufactures products of all sizes and types of

aggregates necessary for the manufacture of concrete (ordinary, mass, reinforced,
prestressed, post-tensioned, self-compacting, cyclopean, without fines, cellular or
aerated and of high density) and asphalt agglomerates, artificial gravel for road
construction and high-quality breakwater stones. Because at the same time they are
producers as consumers among the various companies in the group, therefore, their
quality controls are of the highest demand, always seeking to increase it, through new
facilities (vertical axis mills, screens probabilistic, etc.) and quality certificates. For
Hormigones Domingo Giménez, the image of the company represents a strength, since
due to its long history in the market, its quality service and customer and supplier
loyalty has achieved weight and an important reference in the sector. For this reason, it
widely meets the expectations of customers, being rewarded with their loyalty. The
sales force positively influences the company, since it has trained personnel to deal with
and contact customers, with an emphasis on customer loyalty.

4. COSTUMERS
Throughout their careers, companies seek to offer their products and services to
customers more competitively than their competitors. As a result, another main
objective is the search for new potential clients in order to progressively acquire a better
position in a sector or market.

The strategic clock allows us to check the strategy followed by our company, taking
into account both the added value perceived by the client, as well as the price of said
product.

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 Ilustración 3. Perceived Added Value

Source: Own elaboration, based on compan 3

For its elaboration, two criteria have been taken into account: Perceived Added Value
(VAP) by the clients of Hormigones Domingo Giménez as well as its main competitors
and the price. Subsequently, a series of variables that affect both criteria have been
selected, these being weighted (from 1 to 10) with a certain percentage.

Said weightings have been obtained thanks to the information provided by Hormigones
Domingo Giménez. Given that this company is a company that has clients such as real
estate groups, large investors and the government itself, haver the survey provided by
the professor would not give us relevant data for the analysis, so I have made the survey
a little more simplified to the direct customers directly. On the other hand, the
characteristics to calculate the VAP have been the following: product quality, delivery
time and financing.

- The quality of the product refers to the perception that the client has of it, it is a mental
fixation of the consumer who assumes conformity with said product and its capacity to
satisfy their needs.
- The delivery period is the time that elapses from the client's request until the product
reaches its destination.

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- Financing is the act of granting money and credit to a company.

BUSINESS PRODUCT DELIVERY FINANCING

QUALITY TERM
GROUP OTTO 9 7 8
URCI 6 8 9
HORMIGONES
LOGISTICS 7 7 8
AGROCONS
CUTILLAS 8 8 8
ESPINOSA
IBAÑEZ 5 6 5
HORMIGONES
HORMIGONES 9 9 9
DOMINGO
GIMÉNEZ

To calculate these scores, I have been doing a small telephone survey to directly
customers, to find out what quality the products they receive from different competitors
have, the delivery time, how long it takes to receive it and the source of financing that
each competitor has. It is something that we more or less esteemed, since they offer
products that satisfy the same need as our company, and being competitors, we always
try to be above them.

I have also carried out a comparative analysis of Hormigones Domingo Giménez with
its main competitors in order to have a clearer global vision of them. To do this, a
quadrant has been developed that summarizes concepts such as the price of the chosen
business unit, which in our case is concrete (HA 25 –B20); the previously calculated
VAP; turnover (in millions of €) and, finally, the location of its facilities. Thus, the table
would be as follows:

BUSINESS PRICE VALUE FINANCING LOCATION

€ ADDED (THOUSANDS
€)
GROUP OTTO 38 9 23 Almería,
Granada,
Málaga
URCI 30 7 15 Almería
HORMIGONES

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 LOGISTICS 40 5.5 17 Almería
AGROCONS
CUTILLAS 36 7.5 19 Murcia
ESPINOSA
IBAÑEZ 32 4.5 10 Almería
HORMIGONES
HORMIGONES 35 8 22 Almería,
DOMINGO Granada,
GIMÉNEZ Málaga,
Galicia

In the previous graph we can see the different competitors that Hormigones Domingo
Giménez faces, represented on the map, we can say that the competitors with the highest
value perceived by the client are Grupo Otto and Cutillas Espinosa.

The option in which we can place Hormigones Domingo Giménez, is option 4, which
corresponds to a strategy of differentiation and, specifically, of wide differentiation,
thus achieving a competitive position desired by competing companies. This is
characterized by seeking the creation of added value perceived by customers, keeping
similar prices. In this way, through the improvement of the products or the perception of
these, differentiation is achieved without giving up increasing the market share of the
company, and therefore the volume of sales.

5. CONCLUSION
After analyzing the company in depth and having acquired the previous knowledge for
it, it can be concluded through an exhaustive comparison of its most immediate
competitors that Hormigones Domingo Giménez has always been among the main
companies with the most sales in the entire province of Almería.

By way of conclusion, we can say that it has had a fundamental exogenous factor, the
crisis that began in 2007, which has caused a reduction of almost 50% in the sale of
construction materials.

This has negatively affected the Hormigones Domingo Giménez income statement, to
the point of view, in order to maintain themselves, they have had to use bankruptcy
administration to survive and improve the efficiency of their processes.

I consider that there are some factors that are wasted and from which more could be
obtained, being the case of advertising. This company makes little investment in it, and
although it is well known, it seems insufficient, promoting itself would lead to a higher
proportion of sales. Boosting advertising would allow you to access more customers,
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make an optimal selection of them, which would lead to improvements in sales and
margins.

Another strategy that should be exploited more fully is that related to its website, more
specifically with online sales, since in the current environment in which we find
ourselves it is increasingly consumed through the internet.

I can say that the differentiation strategy followed by Hormigones Domingo Giménez is
adequate taking into account the current situation in the sector. This gives it a
competitive advantage over the competition, due to the wide range of products it has, as
well as its strong investment in R&D through the creation of a testing laboratory.
On the commercial side, due to the existing panorama, customers are looking for quality
and low prices, while trying to find unique experiences. Based on this, for this,
Hormigones Domingo Giménez has to adapt, have leadership skills and handle
emotional intelligence with clients very well. All this while taking into account
technologies and new forms of communication.

Hormigones Domingo Giménez carries out a great organizational work, since he is

interested in knowing and improving each of his different areas of work individually,
but at the same time he manages to ensure that all of them are in total connection with
the organization as a whole, it is from here where part of their success come.

It is for all this, that we want to conclude by saying that if to this organizational work
and the perspective that they are already carrying out of differentiation they added more
aggressive publicity together with the intensive exploitation of their website,
Hormigones Domingo Giménez would not be the leader of the construction sector
spontaneously but would remain in that position for some time.

As a personal recommendation to improve and save everywhere, first, I suggest

continuing to reduce the fixed costs associated with the business. And second, the
company could be financed to make large investments to improve all its areas, such as
putting more construction products into the company. In this way, Hormigones
Domingo Giménez, would move away each time from the traditional concept of
company and would obtain a better position in front of the big competing companies
without having to modify the objective most sought at present by the organization,
which is the best efficiency for the best cost, without neglecting quality standards and
customer service.

6. REFERENCES
• El economista. (14 de Febrero de 2017). Recuperado el 2017, de El sector de la
construcción: http://www.eleconomista.es/economia/noticias/8154457/02/17/El-

17
 sector-de-la-construccion-crecera-en-Espana-un-3-en-2017-segun-un-informe-
de-Credito-y-Caucion.html
• Giménez, H. D. (s.f.). Recuperado el 2017, de http://www.dogilo.com/
• Havel. (23 de 02 de 2011). Situación actual de la construcción en España, págs.
https://www.rankia.com/blog/optinver/690065-situacion-actual-construccion-
espana.
• Havel. (2011 de Febrero de 23). Rankia. Recuperado el 2017, de Situación
actual de la construcción en España:
https://www.rankia.com/blog/optinver/690065-situacion-actual-construccion-
espana
• Hormigones Domingo Giménez, S.A. (s.f.). Hormigones Domingo Gimenez.
Recuperado el 05 de 2017, de http://www.dogilo.com/
• Santiago. (Diciembre de 2012). Revista de la construcción. Recuperado el 2017,
de Estructura de costes en el sector de la construcción en España:
http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-
915X2012000300003

7. APPENDIX
Annex 1. Personnel data (2007 -2019)

Evaluation of the assignment Points:

I. Quality of the composition of the course assignment: (max.40
points)

18
II. Quality of the analytic thinking: (max. 40
points)

III. Meeting the structure criteria:

(max. 20 points)

Total

19