Marketing Audit of the City of Wanneroo

The City of Wanneroo remains one of the biggest and fastest-growing local government authorities in WA. The rapid growth has an impact on the city’s financial resources and finances. It is essential to prepare for the future using long-term planning and sound strategies for managing assets. The processes should be in place to guarantee the prompt maintenance and upgrade of existing assets as well as the construction of new facilities to accommodate the rapidly growing population.

The City has continued to demonstrate positive financial results by managing debt, controlling the expenses, and working to limit the rate of increase to the minimum. The City is operating with a surplus that has grown by 37% over the last three years. Due to the reduction in State or Federal grants, the City is forced to find alternative income sources to remain financially sustainable. The City is estimated to have replacement costs in the range of $2.6 billion for assets that are depreciable.

Introduction

It is the City of Wanneroo (COW) Council that provides support to one of the biggest and fastest-growing local governments located in Western Australia, with Perth’s future significant Strategic Metropolitan Centre at Yanchep is currently in the process of being built. The city has a population of 199.882 (Australian Bureau of Statistics ) and the 2018 Forecast ID) with an average annual growth of over 6% of the population over the past 10 years. The growth in population is projected to grow by 95% by 2041.

The Council comprises 15 elected members, including the Mayor, and has a staff comprised of 766 Full-Time Equivalent (FTE).

The City’s primary purpose is to provide a variety of services to its clients that are the residents of the City of Wanneroo over three wards as well as 36 suburbs. Most are delivered via physical assets, such as communities’ buildings, facilities roadways, footpaths, roads along with open areas.

Source: City of Wanneroo Annual Report 2017/18

The City’s mission: “Inspired by our history striving to create a dynamic, forward-thinking city, offering opportunities and investments to allow our communities to thrive’ and values: “Customer-focused, Improve accountability, collaboration, as well as respect was revised during 2016/17 as part of the comprehensive revision of the Strategic Community Plan (Strategic Direction).

Council has defined the key community outcomes along with Council strategies to meet the goals. Delivering exceptional service (Customer-driven) is the main goal of the Council and is an integral part of the community outcomes and values. A customer-focused strategy is a process by which a business develops its marketing strategy with its primary goal being the results for customers as defined by Kotler and colleagues. 2013, p. 36.

The city’s economic growth plan in the coming years will include nine major activity centers as well as an industrial zone. One of the most important community outcomes, in addition to the establishment and activation of the major centers of activity and Neerabup’s industrial zone, is the creation of distinctive spaces that reflect the uniqueness of each region through the use of area-based planning. Hill et al. 2018, page. 38, describe this method as a geographic segmentation process when markets are divided into several geographic entities.

This report is broken down into four sections major:

  1. Internal Company Analysis;
  2. Micro Environment Analysis;
  3. Macro Environment Analysis;
  4. Strength, Weakness, Opportunities and Threats Analysis

1. Current Market Situation

1.1. Internal Business Analysis

The City’s short and long-term strategic plan is laid by the Strategic Community Plan and aligned with the vision. The details are contained in the appendices.

The primary goal in the coming ten years is investing in the rapidly growing community by providing infrastructure programs, services, and programs to build more vibrant, dynamic connected, active, and welcoming communities.

The most important levels and elements of the city’s strategic direction are governed in the Integrated Planning and Reporting Framework as shown in the following diagram:

The City had an overall assets value of $2.7 billion at the time of June 2018, of which 86% of these are capital assets for infrastructure, 13% of which are land and 11% are IT plants and equipment. It is anticipated that the assets portfolio will reach $3.5 billion in 2028.

The positive result of the operating surplus can be seen in the Lang Term Financial Plan and Audited Financial Statements 2017/18. This is due to the city’s large self-generated operating revenue which covers the total costs. A 35% increase in the surplus operating result is seen in the last three years.

The image below shows the workforce profile of the City’s (766 FTE) performance over the last two years:

Australasian Local Government Performance Excellence Benchmarking Program

The City tests its market on a biennial basis and the last results of the community satisfaction/perception survey highlighted 6 key focus areas which are being addressed through the strategic planning process to ensure improvement in these areas:

  1. Playgrounds, reserves, and parks
  2. Streetscapes
  3. Security and safety
  4. Control of traffic
  5. Cycleways and footpaths
  6. Control and management of the flow of traffic on local roads
  7. Recreation and sports facilities

1.2. External Business Analysis

1.3. Micro Environment Analysis

The City’s most important customers and key stakeholders are listed into the following categories:

  • Ratepayers, residents
  • Local and regional businesses as well as investors
  • Interest groups
  • Government agencies of the federal and state governments
  • Local business associations
  • Associations for industry
  • Government agencies of the local and regional level

Kotler et al. 2013, page. 112 defines the microenvironment as internal forces that influence the capacity of the company to meet the needs of its customers.

1.3.1. Five forces from Porter’s analysis of change

The most significant external causes of change that affect the sector are analyzed through Porter’s five frameworks of forces of change. It is a micro-tool that is used to study the competitive environment of a firm within its field. While local government is not competitive, however, there are Porter’s forces that influence the city and its micro-environment.

Source: Porter’s Five forces

The power of the customer

  • Due to the anticipated increase in the population of the city, It is essential that the City takes care to meet its citizens’ expectations (needs and desires).
  • Investors – there’s some degree of competition among local businesses, and if they feel that the city does not meet their requirements, they’ll invest elsewhere.

Power of the suppliers

  • Grant funding from the Federal and State governments affects the provision of services significantly. The City has received significant grant funds to invest in road and rail projects in the massive development zone of northern suburbs. Northern suburbs.
  • A drop in grant funds was recorded in 2017/18, and the City must look into different ways to deliver services and promote best practices by benchmarking.
  • A tender process and quotation procedure for local government are limited to Councils to choose vendors from Western Australia Local Government Association (WALGA) preferred list of suppliers.

Competitors

  • There is a bit of competition among local governments when they apply for grants to create a new source of income.
  • Local governments also face competition internally with their workforce. Retention of staff is crucial and appealing job opportunities will cause internal shifts between local governments as well as the greater turnover of staff.

1.4. Macro Environment Analysis and Demand Forecast

Kotler et al. 2013, page. 119, describes the macro environment as the external forces that affect the business.

The following image summarizes the characteristics of the city and its most valuable asset, its people.

1.4.1. The key drivers for population growth and change

The development of the north-western and northern suburbs is an important contribution to the population growth factor.

The reality is the City of Joondalup has reached its limit for new residential development has caused a change in the focus to Wanneroo as the main location for the development of residential homes within the suburbs to the north of Perth.

1.4.2. PESTEL Analysis

Changes that come from outside that affect the organization are analyzed by PESTEL. It is a macro-tool that affects the organization in the global setting.

Political

  • The uncertainty in the world’s politics is a major factor in the markets for financial instruments and in the rate of unemployment.
  • Local, State, and Federal elections can affect the City’s strategic direction of City and all households’ financial situation.
  • One of the promises of the Labour government’s election promises was that of the Yanchep Rail extension program. It is a 14.5km project that will encourage growth in the northern suburbs and also decrease the congestion on roads.

Economy

  • The Australian economy was growing by 2.8 percent as of September 2018, an increase from 2.4 percent in the year 2017. The growth rate has been 2.6 percent over the last 10 years.
  • The rate of unemployment in WA is currently 6.5 percent, which is more than the average national rate of 5.4 percent. The City of Wanneroo’s unemployment rate of 8.06 percent is higher than the national average and WA.
  • Australian house prices slowed and house prices declined in the year.
  • WA is the lowest-performing state in the rankings of economic performance due to the lowest result on retail spending, the decline in construction, and lower wages growth.

Social

  • The proportion of households in the City is higher for those in the middle to the high-income category in comparison to the WA average. WA average.
  • The 199,882 residents have a male to female ratio of 51/49 and an average age of 33 years old.
  • Wanneroo has more young employees (15-44 years) than older workers (45 and above).
  • 41% of them are born abroad and 20% of them speak a language other than English which is more than the WA median.
  • The disposable income of households is lower Wanneroo households than WA medians. WA median.

Technology

  • Federal as well as State Government grants are available to local governments who apply to Smart Projects aligned to the Smart Cities Australia concept.
  • The City received Federal grant support in 2018 for projects under the Smart Cities and Suburbs Program for the Yellagonga Wetlands as well as Rail Smart projects.

Environment

  • WA the state’s government announced an updated Waste reduction plan that includes KPIs and targets slated for 2030.
  • Measures to reduce water and energy use are tracked and reported throughout the year.

1.5. Strength, Weakness, Opportunities, and Threat (SWOT) Analysis

The SWOT analysis can be divided into four parts that align with the City’s strategic goals four segments are: Environment Economy, Social, and Civic Leadership.

Strengths

  • The City has developed strong stakeholder relations and partnerships in the past three years.
  • The City is blessed with a robust portfolio of assets worth $2.7 billion. 85percent of its assets are brand new or in very good condition. Only one percent of them require intervention due to aging.
  • The City has poured a lot of money into new infrastructure over the last three years, which can be seen in the massive Capital Works Program.
  • The City believes in its community and consequently communicates with people who live there and the business owners at several levels. The satisfaction of the community is evident through the results of the perception survey that revealed an increase in the already high level of satisfaction.
  • The City hosts a wide variety of community-based events and events.
  • Workforce – Resources must be increased to ensure that they can meet the growing demands of services. Financial sustainability is vital to ensure that the demand is met.

Weaknesses

  • Because of the increasing population, there is a deficiency of community facilities as well as major traffic congestion.
  • The slow development of infrastructure does not keep up with the rapid growth.
  • It is believed that the increase in crime is because of the increase in population.
  • The City must invest in new technology in order to keep pace with the technology of the Fourth Wave (Industry 4) like data analytics.
  • Council isn’t investing enough in the current workforce as can be seen in the lack of training funds per FTE.
  • There isn’t a broad range of economic sectors.

Opportunities

  • The natural forest and picturesque views such as the ocean are a fantastic opportunity for the City to invest in the tourism industry, which will create jobs and increase diversity within the City’s various industries.
  • The growth of distinct locations will open the door to provide a wider selection of housing.
  • The rapid growth of residential areas provides numerous opportunities, and growth in local companies investing in the City is anticipated.

Threats

  • The City must tackle the issue of water shortage and waste which affect the climate.
  • The Council faces pressure because of the rising demand for infrastructure because of the rapid increase in the population.
  • Elections bring about a thread in the City since the new council could alter the direction and impact on the objectives set to be met for specific projects.
  • Investing in infrastructure for transport can help address the traffic congestion issue as well as reduce the time it takes to commute to get there.

1.6. Critical Success Factors:

  • State and federal funding is used to ensure that infrastructure and economic development is meeting the growing population.
  • Work with key stakeholders from both the private and public sectors to produce the highest economic growth outcomes.
  • Leadership that is transformational and draws the backing of stakeholders and the community.
  • An efficient and skilled workforce that is able to offer quality services and fulfill the requirements and desires of the people.

2. Conclusion

In the end, the City faces a variety of issues in the coming years. The rapid rate of growth will have a profound effect on City finances as well as resources. It is essential to prepare for the future with long-term planning as well as robust strategies for managing assets to ensure regular maintenance and upgrading of existing assets as well as the construction of new facilities to meet the rapidly growing population. Effective business and strategic planning procedures and systems must be implemented to ensure the sustainability of finances and satisfaction for the community.

It is also crucial to have a transformative leader to lead the community and the City in this thrilling new phase of economic transformation for the City.

3. References

  • ID statistics
  • Annual Report 2017/18 compiled by Zelda Jansen
  • LG Performance Excellence Program Report 2017/18 was compiled by Zelda Jansen
  • The long-term financial management plan
  • ABS
  • Topic 2. Porter M., 2008 The five forces that determine the strategy of a company, Harvard Business Review, January
  • Topic 2: Reed P. 2010. Strategic Marketing, Decision Making, and Planning, Chapter 2, Cengage Learning Australia
  • Topic 2: McDonald M., 2002. The strategic planning process for marketing along with the business plan’. If you’re that brilliant what’s the reason your marketing plans don’t work? The essential guide to planning your marketing. London: Kogan Page
  • Topic 2. Simons R. 2014, Choosing the right customer Harvard Business Review 92,3 pp3-9
  • Topic 1: Simons, R, 2014. The right customer to choose, Harvard Business Review, 92 (3) (3), pp. 48-55
  • \\wcc-san\cow3033$\cow3033’s Documents\Privaat\AIM\Unit 4 Marketing for Managers\Readings\Topic 1\Choosing the Right Customer.htm
  • Hill, T & Hill, A, 2018, ‘Operations Strategy: Design, Implementation and Delivery’, Macmillan Education, UK, London.
  • Kotler, P, Burton, S, Deans, K, Brown, L & Armstrong G 2013, Marketing, 9th edition, Pearson Australia, French Forest NSW.
  • Blue ocean strategy
  • Adedeji E A., 2014 A tool to measure the performance of an organization through ratio analysis’ Research journal of accounting and finance Vol. 5 No. 19, p. 21-22
  • Birt J, Chalmers K Maloney S, Brooks A, Oliver J 2017, “Accounting for business reporting to aid decision making 6th edition Wiley
  • Drury C in 1992. “Management and Cost accounting 3rd edition, Chapman & Wall
  • Golab A, Vanderplank K 2016’The fundamentals to value generation in businesses’ Edith Cowan University, School of Law and Business, McGraw Hill Education, Australia
  • Wanneroo, C. (2018). Long Term Financial Plan 2017/18 – 2036/37 – City of Wanneroo. [online] Wanneroo.wa.gov.au. Available at: https://www.wanneroo.wa.gov.au/downloads/file/3250/long_term_financial_plan_201718_-_203637 [Accessed 2 May. 2019].
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