Orbis Protect: Business Improvement Proposal Business Essay

[Write a one-page report, presenting analysis of Orbis in support of a Business Improvement Proposal for the company, focusing on operational issues that includes pay, morale and quality issues.]
Take a broad view of the internal situation, evaluate the various proposals that people are advocating and give a clear assessment of which one, or combination of them, will deliver:
1. Improve the profitability situation within 3 years
2. Improve customer service and response times
3. Build a better set of relations across the company.

Company History

In broad outline, Orbis has undergone four stages of development:

Industry Consolidation

Emerging from a local authority, Orbis grew through acquisition of similar UK firms, using the simplicity of its business model (securing vacant properties with metal screens) and the ease with which it was able to achieve efficiencies by centralising support activities to outbid other organizations. The management then turned its attention towards the continent. Its first acquisition, Sitex, was, at first glance, a similar operation to the UK. However, the management could not simply transplant their staff into this organization. Almost immediately there was disquiet and resistance to change. Confident that the company could overcome the operational difficulties it was experiencing on the continent, the company placed shares on the AIM on the back of strong profitability and aggressive expansion plans.

Environmental Pressures

Listing on AIM brought its own pressures and, despite mounting problems in the continent the company continued to look for further acquisition targets to bolster profitability. In the UK the company was beginning to experience price competition from Facilities Management (FM) organisations. In response the company looked to expand its services in two directions. 1. By moving into technology-based security products. 2. By introducing property clearance and refurbishment services.  This wasn’t without its difficulties as the expanding workforce now had three distinct skillsets – electrical installers, steel installers, and cleaning staff. Fair to say that there was tension between them and some name-calling between ‘sparks’, ‘panel monkeys’ and ‘grot squads’. 

Changing Ownership and breakup 

Debt-fuelled acquisition created financial pressure, and in late 2006 Insite Service Management Limited (backed by The Blackstone Group) acquired the business. Insite appointed David Walker, an up and coming accountant, who changed the company name to SitexOrbis and pursued initiatives to develop new services. With the austerity impacting the company’s results, Insite looked to off-load the business in 2011, eventually finding a buyer in Vacant Property Services (VPS) who were eager to assimilate the business into their global property management business. However, the UK’s Competition Commission intervened, ruling that VPS could acquire the European and Irish businesses, but not the £35m UK business.

After months of uncertainty private equity firm Sullivan Street Partners Ltd. acquired the UK business renaming it Orbis protect limited on the 31^st January 2013. The new owners removed the previous management, and established a leadership team consisting of Regional Managing Directors under new Chief Executive Guy Anders. But the regional businesses soon became mired in political squabbles as they tried to overcome market and operational constraints. Recognising the business was tearing itself apart, Guy brought in consultants to review the administrative and operational management structures. 2017 saw a radical overhaul of their structure, with many regional managers leaving the organization, a few people accepting ‘steps sideways’ (i.e. demotions), and some new appointments coming into the company. Few anticipated that this would lead to a management buy-out (MBO) in 2018 led by Guy, Benny Howell and private equity firm SouthEdge Capital.