Dinte Group Internal and External Analysis
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Published: Wed, 13 Sep 2017
Dinte Group’s Core Business Currently Revolves around golf but originally focused on casting slides for guitars after there being a lack available to the the now co-owners grandfatherand the people in his community. Since then the company has expanded into Mining and Agricultural products to meet the demand for those industries. This demand for these products has since decreased significantly. The current co-owner Michael and Anthony’s Grandfather states that when he first started working for the business that was originally owned by his father, recalls ‘when I first started working there was five pages of non-ferrous foundries advertised in the yellow pages, whereas nowadays the advertisements only take up one and a half columns’. This decrease in demand eventually led JA Dinte Group into other aspects of manufacturing such as casting golf putters. At first Dinte struggled selling these putters but after specifically designing putters for pros, these pros went on to win several Australian tournaments that have increased the company’s sales in not only just putter sales but also various other casting products available to buy worldwide. Today Dinte has since separated into two sections, DINT Golf Solutions, a company that now sells things produced using the casting method such as putters and others types of gold products that don’t use such as flags, first aid kits and much more despite this DINT still acknowledges and states that casting is still an integral part of the company. The second part of the company is JA Dinte Casting a company that has been producing Cast products. This is a testament to how successful the company’s decision to experiment into different markets has been. Since JA DINTE’s idea to expand the gold business into a separate company it has since become the largest golf supply company in the southern hemisphere.
Dinte has been in business since 1930, with the business being passed down through the generations and is now currently owned by co owners and brothers; Michael and Anthony Dinte. Throughout their years owning the company many things have changed such as the large variety of things that Dinte has manufactured over the years. One thing hasn’t changed although, the way in which Dinte has been casting their products since the Company began over 85 years ago. Many companies have since moved on to more sophisticated methods of casting years ago Dinte pride themselves with the basic yet effective methods of production that can compete with newer methods such as CNC Machining. As the technology for advanced casting and other types of production became readily available at a cost effect price Dinte had to resort to expanding their horizons into a market that’s products were mostly produced using casting methods. The brothers entered the golf industry was met with success because they did not have to compete with newer more effective methods of manufacturing and instead they would perfect the now traditional method of production that Dinte had been using since day one. With this success of joining the gold industry they broadened their opportunities expanding from just gold clubs to signs and flag poles for golfing. This venture into golf has since been so successful that Dinte has expanded the golf section of the company into a sub company and has now become a sub company under the Dinte name.
Some External factors that may have affected the sales of the Dinte group’s sales in manufacturing are a variety of things. Firstly, Dinte’s sales in producing mining goods would have dropped because in recent years there has been numerous cuts and down-scaling of mines across Australia but more predominately in Western Australia due to the mining boom starting to run dry of resources to extract from the earth. This is where the majority of the industry is located. The reduction of the mining industry has trickled up back to the manufactures that supply and produce mining products equipment and tools. As the demand decreases for mining related products, so does the quantity of the products made but also eventually the profits made producing the equipment also decreases.
Another example for decreases in these industries in particular agriculture is overseas parties buying farms and land over here and Importing supplies from overseas due to save costs instead choosing to buy manufactured equipment where the average wages for employees is less so things can be produced and sold for less than it would cost to produce the same thing here. There are also far less young people wanting to take over their family’s farm, take over one or even start one because of the decreased profit margins due to big supermarkets aggressively pricing their products which have an impact on the farmers that produce these products. This is where fair trade and the company’s ethics come into play. When companies price Products for significantly less to out-perform their competitors they don’t cut out their own profits. Most of the profit loss is distributed between the shippers and the farmers, with the farmers taking the biggest loss. This current trend only makes things worse for the farmers who don’t have enough money to buy new products which affect companies such as Dinte. Extorting farmers doesn’t only damage the supply chain, it damages entire communities and businesses that seemingly aren’t closely related.
These external influences are out of control of the company because these companies have little control over what the consumer does besides price their product more competitively or improve the quality of the product and their reputation by maintaining professional statements and also
Dinte remained profitable and successful because of their ability to be able to change the type of product that they were selling when the popularity of the item declined. This happened to Dinte when the mining and agriculture business fell in popularity and profitability so did the amount of cast items that the company sold declined also. Dinte had to ajust the type of products they sold to be able to remain profitable and to be able to stay in business. This is what eventually led the brothers to venture into the golf scene. With most clubs being manufactured using cast techniques it was a perfect match. Dinte has since expanded beyond golf clubs with the addition of flag poles and much more.
At Some point Dinte would have had to outgrow its domestic market. Dinte was probably already selling to most of the available consumers and wanted to expand into larger markets that the company would not grow out of in the near future. The market they’re going into could have less restrictions with things such as GST in the country they are selling but the move to expand the market internationally would also cause implications would such as the new cost of export tax and having to compete with larger companies in their own markets that they are much more knowledge of. Dinte most likely also wanted to grow their business to increase their profits which was becoming a hard task remaining as a domestic company in Australia. It was only a matter of time before Dinte had to start looking internationally to find business.
Obviously the positives must outweigh the negatives if they made the decision to expand into international markets otherwise they would not make the decision to Expand overseas
Over the years DInte has had to make various internal adjustments to keep their business on track with maintaining profits and progressing the business so it can expand and in turn create bigger dividends for the business. These Internal influences include things such as their 14 employees, which they would have had to increase with the added amounts of production as the company grows which it has significantly over the 80+ year life of the company. The companies Location is in the centre of Sydney on 552 Botany road, Alexandra New South Wales. This is a positive thing and also a negative thing. The location has a major internal role in dictating whether or not the business succeeds not. This location is suited to the business’ application because they sell products to many farmers and Miners who are only a plane trip away from receiving what they need instead of having to drive hours away from a city to get to the property.
Dinte is a global company selling their golf and casting products to places such as the United States and Canada and is also considered a small partnership by the relatively small number of employees that the business employs.
- There are various internal stakeholders but arguably the most important are the employees and the co-owners, Michael and Anthony Dinte.
A major internal factor is the company’s employees. Any company of this size would be impossible to run without the support from the employees. This explains why unions have a lot of control over the companies that the workers are employed by
The owner in any business are also a major internal stakeholder. Without the support from the owners the company would not be able to function without a major leader controlling things. The owners have many important roles to play including roles such as helping the company run smoothly and also make very important decision that effect the company such as choosing to produce more or less of a product, certain advertising options and choosing to venture into other markets, just like Dinte did.
- Two major External factors that have the biggest control over whether or not the business succeeds or not. These external factors are the consumers and the suppliers.
The suppliers in this case are in the primary sector supplying materials to JA DINTE that are refined from raw materials. The materials Dinte would receive would be copper or iron for casting. Dinte are a secondary company that turns the refined materials into products such as the golf putters and equipment for miners and farmers. Without the access to supplies companies such as Dinte could not exist because they can’t produce anything if they don’t have anything to produce with. This potential problem has bankrupt businesses such as the various mines that have run dry and resulted in the business going bankrupt for example the mines in Western Australia that have caused the huge increase in unemployment to the point where it caused Western Australia to have the largest unemployment rate in the country.
The Second major external factor would are the customers. Without customers to buy products from the business it is impossible to operate independently. This customer support extends beyond just the products they manufacture if the company gains a poor reputation such as the things they say in statements, the support they offer post purchase and the adjustments to the price of items that the company sells can all influence the customers loyalty and decision to buy products from the business to start with or not. Customers essentially dictate the success of the company or not.
The economy plays a big role by dictating how much or little the company receives in profits. There is almost a parallel with the state of the economy and how profitable the business is when the economy fluctuates. When there is in a ‘boom’ period in the economy people and companies are more likely to spend money in things that extend beyond their basic needs such as electricity, water, food, rent and mortgages and instead spend it on things like new cars, rings, designer clothes, the list is endless. If there is a recession people and companies alike aren’t going to spend more money on things they don’t need. Companies might not buy new equipment for mining and farming because they don’t have to, which negatively effects Dinte and manufactures like it by reducing sales which means they don’t produce as much which means their supplier can’t sell as many materials as they used to because the demand has dropped.
If the supply for casting material becomes scarcer due to scaled back production which means the demand is higher than the supply so then the price rises. Dinte makes less profit having to pay more for casting materials so the price either rises or the supply of casting items drops which also brings the price up due to demand for the product.
Unless a business is utilizing a recession to profit almost every aspect of the supply chain is heavily affected by a recession.
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