Potvorszki Trans main

1
Table of content
1. Introduction.............................................................................................3
2. Brief history of construction and transportation ................................7
3. Current situation of the construction industry in Hungary ................8
4. Vision and Mission................................................................................10
4.1. Vision......................................................................................................10
4.2. Mission....................................................................................................10
5. ’Plazastop’..............................................................................................13
6. Potvorszki Trans ...................................................................................15
7. Analyses..................................................................................................18
7.1. SWOT......................................................................................................18
7.2. BCG matrix .............................................................................................22
7.3. Ansoff......................................................................................................24
7.4. STP..........................................................................................................27
7.4.1. Segmentation...........................................................................................27
7.4.2. Targeting .................................................................................................31
7.4.3. Positioning...............................................................................................32
7.5. Marketing mix.........................................................................................33
7.5.1. Product ....................................................................................................33
7.5.2. Price.........................................................................................................33
7.5.3. Place ........................................................................................................33
7.5.4. Promotion................................................................................................34
7.5.5. People......................................................................................................34
7.5.6. Process.....................................................................................................34
7.5.7. Physical Evidence ...................................................................................35
7.6. Competitor analysis.................................................................................36
7.7. STEEP .....................................................................................................37
7.7.1. Social factors...........................................................................................37
7.7.1.1. Types of houses.......................................................................................37
7.7.2. Economic factors.....................................................................................43
7.7.2.1. In general.................................................................................................43
7.7.2.2. Non-residentials .....................................................................................45
7.7.2.3. Infrastructural .........................................................................................47
7.7.2.4. Pipes, telecommunication, electronic networks ......................................48

2
7.7.2.5. Summary .................................................................................................49
7.3. Political and environmental factors.........................................................52
7.3.1. Restrictions.............................................................................................52
7.4. Technological factors ..............................................................................53
7.5. Effects on transportation .........................................................................54
7.6. Summary of negative effects...................................................................55
7.7. Summary ................................................................................................56
8. Strategies ...............................................................................................57
8.1. Strategy Number 1 ..................................................................................57
9. Strategy number 2 ................................................................................59
9.1. Construma ...............................................................................................62
9.2. Financials ................................................................................................62
9.3. Seasons....................................................................................................65
9.4. Future acts ...............................................................................................67
9.4.1. Time management...................................................................................68
9.5. Offline communication ...........................................................................70
9.5.1. Outdoor....................................................................................................70
9.5.2. Local newspaper......................................................................................70
9.5.3. Business cards .........................................................................................71
9.6. Online communication............................................................................73
9.6.1. E-business cards .....................................................................................74
9.6.2. Webpage..................................................................................................75
9.6.2.1. Financials ................................................................................................75
9.6.2.2. Design......................................................................................................76
9.6.3. LinkedIn..................................................................................................78
9.6.4. Facebook .................................................................................................81
9.6.5. AdWords .................................................................................................83
9.6.6. Budget planning ......................................................................................88
10. Summary................................................................................................89
11. References..............................................................................................92

3
1. Introduction
My thesis is going to be about the enterprise Potvorszki Trans dealing
with transporting and other work around the constructions from the basis of a house
to the garden and facing with many problems in this field. The entrepreneur is called
Attila Potvorszki with 3 employers.
This topic is included in a greater group of topics that nobody likes to
talk about. It seems that no one can find a solution to the problems of the small
entrepreneurs that causes silence about them. I would like to break this and find
something that might help and people will not feel embarrassing about it.
The reasons beside the above mentioned is my curiosity for the
Hungarian economy and that I want to make a simple business more profitable and
get through the problems like the price of the fuel what is just increasing while the
money for the work is decreasing. Plus the terms of payment what is usually for 2
months, but the entrepreneur has to pay the employers in time with all the other costs
like the fuel, the maintenance, reparation and other collateral costs.
After the change of the system many people created their own business. Almost all of
them were lorry drivers that time and the only way seemed to be to become
enterprisers in the field of transporting. Most of them lost everything during the
decades while others could not develop but only keep their vehicles.
Potvorszki Trans has almost nothing in marketing activities, only a little outdoor
marketing what is only in the village of the warehouse, where 2 boards represent the
enterprise itself with the relevant information. This way he cannot beat the
competitors who are working at the same price level and all of them try to lower their
prices to the minimum, but no one of them has an added value, what is going to be
presented in the thesis in the chapter of the marketing strategy.
The challenge is about to make a strategy plan to the enterprise with the
communication plan. As a third year college student I can experience the
consequences of my steps in the marketing world by working on a communication
plan with an entrepreneur and turn the plans into actions to see the results and learn
more in practice.

4
At first I am going to write about the company’s vision and mission and
give an insight to the company’s activities.
After the vision and mission I will define the STP model for the enterprise. I will
analyze the segments and the possible targets to choose. Then I will position the
company concentrating on the strengths and pay attention to the weaknesses.
Then I am going to analyze the current situation in Hungary according to the
constructions and then see how things changed during the last few years in the part of
the STEEP analysis.
I will gather information about the subcontractors that were cheated and their actions
towards the prime contractor.
People foresee another crisis for 2013 because of the high prices of the
food, that has no good consequences and has an effect on the industry in Hungary
also. I will investigate the prophecies and see if there is any chance to run a business
in such a situation.
In the STEEP I will analyze the external effects, like the social,
technological, economic, environmental and political ones to avoid the strategic
surprises and to find the opportunities hiding and to make changes according to their
effects. I will search for the taxes related to this type of business to be more aware of
the threats and for a clearer understanding of the situation. Beside the taxes there are
the laws that can cause several restrictions to the running of the enterprise considered
as a gap or a fence that can be jumped over by the income earned. I will look them
up and gather them to know the threats all and be aware of every feature of the
business.
I will make a lot of researches with the help of the Hungarian Central Statistical
Office according to the construction statistics. Such as how many houses were built
during the last few years, how the crisis affected the Hungarian economy, and which
segment of the constructions had the smallest relapse and that would be the best
choice to make the business run and direct the enterprise to those or that segment. If
we target the most ‘popular’ segment with the most money invested in we can make
the business more profitable.

5
Then I am going to make the SWOT analyses to know exactly the strengths,
weaknesses, opportunities and threats of the enterprise and draw a conclusion of
them.
I will make the marketing analyses starting with the BCG matrix to get to
know which service is the most profitable on the market, and which one should be
avoided. I will include all the services provided by the entrepreneur from the stars
through the question marks and the cash cows to the dying dogs.
After the Boston Consulting Group matrix I am going to make the Ansoff
matrix. At first I will analyze the condition of the market and then figure out a cure
to get on the road of growth. Using marketing activities to enhance the growth of
selling the services, make changes in order to satisfy the clients on the market or in
case of targeting new segments like in other parts of the country, making the changes
to fit to the clients’ expectations and needs.
I will study the data I gather and make a decision whether it is worth
to invest in new auto trucks or the change of the old and less used ones to vehicles
that might be stars. I will use the matrixes to help me decide which ones are more
efficient or the one that is the most efficient.
Depending on my previous researches and information, in Hungary there
is not seem to be any small enterprises that provide complex services , their activity
is focused on a single kind of service. This is why I thought I will work out a
strategy about the ability of the enterprise to specialize in a different way using all
the vehicles it has. If the enterprise communicates that it is different from the others
and can make more out of the work than the others. It says that the enterprise will
make the work from A to B, from digging the fund to a house to landscaping. So the
clients do not have to hire 3 different enterprises but only one.
I will analyze the possibilities of the mentioned strategy and compare it with the
strategy about targeting the less damaged branches of construction with analyzing the
connections and social capital.
Included in the strategy plan I will make a bypass to the field of
communication and develop the current one with more basic advertising tools that
are needed to get known by people.

6
I am planning to make a Webpage, a Facebook page and use Google
AdWords to advertise and let people be aware of the business, and to expand the
territory and the market share. And naturally place more boards not only near to the
site, but in different locations in the neighborhood. There will be more outdoor
advertising not only where the vehicles are, but in more cities and towns to attract the
attention of more people and bigger companies. Beside the boards there will be a
need for online advertising with the use of Google AdWords, a Webpage with
relevant information, a short film about the enterprise and pictures of the work plus a
Facebook page.
These are under the umbrella of the online marketing, but the printed media can help
also to get the message to the people with the relevant magazines and newspapers.
When the plan is clear I will draw a conclusion about the actions so far of
the enterprise and the actions of the newly made strategy of the Potvorszki Trans.

7
2. Brief history of constructions and transportation
The history of constructions goes back to Sándor Wekerle in 1908. In the
law of XXIX in 1908 he declared to help the interests and the welfare of the people.
He accomplished to liven the large-scale industry, firms were built and many
institutions were founded such as military, educational, economic, and cultural and
many more.
At the end of the XIX. century the population of Budapest duplicated, people from
the countryside and from other towns moved to the capital that claimed for place and
hands of blue collar workers. In the fall of the year 1908 the work had begun on the
constructions. [1.]
70% of the houses were one-storey buildings and the rest beard the tier-building
name.
Special technical and technological changes happened in the industry and until the
city had its image finally.
One of the most important parts of the constructions is the transportation. This key
action makes it possible to have the needed materials. The pace of the constructions
become faster and this required more transportation activities and the flexibility plus
the speed of them, thus different vehicles appeared in the market and later they
spread around.
The entrepreneurs and enterprises were the engines of this rapid development.
This action started in the antiquity when the merchant men spent packages on their
own risk and cost. [2.]
But the definition transporter appeared only in the middle age with the merchants
then they had the brandings of the transporters. An essential improvement happened
in the XIX. century with the appearance of the new inventions (steam-engine). Then
the railway had the main role and gained more transportation. This way more
companies came to life and this unit started to develop and this competition is
continuing nowadays.

8
3. The current situation of the construction industry
in Hungary
Figure 1: Development of the industrial and constructional production, of the foreign
trade merchandise and the DGP
Source:http://hvg.hu/ingatlan/Vajon_egesz_Europaban_zuhan_az_epitoipar_va_BJ717P
[read: 2013.01.04.]
The diagram shows the data according to the European construction industry.
Poland and the Scandinavian countries become better but Ireland, Spain and Portugal
are falling.
On the International Construction Conference in Finland the statement was that the
average annual increase in Europe is 4,5-5 %. [5.]
In the EU Hungary has the highest decrease in this industrial field.
Compared to the datas in 2005, the production of the Hungarian construction
industry decreased to 65% while the Romanian was 138, the Polish was 174, the
Slovakian was 111 and the Slovenian was 85% in 2011. [5.]
From the year 2000 the Hungarian construction industry had its ups and downs. The
most powerful year was 2005 when the data in average reached the highest point.
Until then the industry was developing and almost in every year the rates were higher

9
and higher. In 2005 the construction of the roads had the highest value during the
year, this had a huge effect on this field. From 2005 the average fell but some units
became higher like the building of railways, bridges and water management
facilities. These units became stronger after 2005 and all of them decreased from
2006 to 2007. From his year the setback was unstoppable. There was only one year
to the crisis that changed the things and worsened the facts.
From this time the economy and not only the construction industry rolled down the
slope but all the others were touched by it too. [3.]
In 2012 the chances were not low enough for the entrepreneurs to
survive; a new decree has been added to that called the plazastop. The data in 2012
according to the decreasing number of companies can be blamed on this new
restriction. In the third quarter of 2012 the number of the liquidation decreased, the
number of the companies was 1255 in the second quarter and 1076 in the third. This
was better than in the last 2 years. But it did not have a long duration. In this field the
numbers are changing constantly and in the last few years there is no progressive
tendency, only for just ‘5 minutes’. If an increase is observed and bring an illusion
alive it destroys it in seconds and do not let the faith in the economic improvement
flower. [4.]
So the last two years (2010-2011) were after the crisis and that time the economy
was about to revive. But the last quarter in 2012 the dice has turned and 1677
company closed in three months. Plus the foundation of new companies was far
behind the numbers of the previous years.
In the first 9 months of 2012 the production of the houses decreased by 20% and the
number of permissions were 12% less than in the previous year. In Budapest this
value became 58% less. This is only the house that has not been touched by the
plazastop but constantly decreasing. [7.]
The whole construction production fell by 5,3 % the buildings were less by 10% but
some other civil engineering divisions increased a little (about 1%).
For the next year according to the data from GKI the national investment
is about to grow by 2% that would mean better circumstances to the constructions.
[8.]

10
4. Vision and Mission
4.1. Vision
The vision of the Potvorszki Trans is about a profitable business that
everyone wants at the beginning of some kind of business. At the beginning it seems
obvious but as time passes by it becomes harder in such a situation and the
enterprises are satisfied with the minimal profit they can reach and get the work done
as they got used to it.
The vision of the enterprise was the satisfied client that can become ‘regular
customers’ and help the enterprise.
This is one of the most successful tools to keep the clients close and make them
loyal. That is why the vision starts with making them satisfy and loyal so that they
can be took for granted that can lead to magnetizing more clients via the word of
mouth tool and become more well-known in the area. The more clients opens the
door for more work and can help to run a more successful business that will lead to a
condition that afford to get through the fences easier ( law, decree, restrictions).
4.2. Mission
To reach the goals plans are needed. The strategy is going to be based on
previous researches and analyses that will take the features that the market requires
into consideration.
Based on the researches I made, a plan will be created about the future strategy that
will include the targets the enterprise should concentrate on to reach the goals.
The employees are qualified men that are in the profession for years and can make
the work the way it should be. This is the ingredient that cannot be left out or missed
from the business. Enthusiasm and dedication are the key features of the people
working for the entrepreneur so this way it is not the hardest thing to win the hearts
of the potential and give them what they want. Not only the qualification of the
workers is important but their personality also, that depends on the entrepreneur who
chooses them.

11
Photo 1.: Scania 124C of Potvorszki Trans
Edited by Timea Potvorszki

12
‘Armies (like businesses or any organization) are only as strong as the morale of
those who work within them.’ ( Terry Leahy: Management in 10 Words)[9.]
‘Morale is a state of mind.’ ( Marshall Viscount Slim: Defeat into Victory)[10.]
The channels of communication will be used to attract the attention of the clients and
let them know every detail they need to be sure about the enterprise and to trust in
what they see and hear. And later get to know all the advantages of this small
business.
There is going to be printed advertising in special newspapers and online
communication with the help of a webpage, the very popular Facebook and Google
AdWords as well.

13
5. ’Plazastop’
In January 2012 a new decree comes alive called ‘Plazastop’ by the Hungarian
Parliament. This forbids the building of >300 m2 malls in Hungary until 2014. [13.]
In September 2012 the www.hvg.hu wrote about the results of this restriction. 108
requests for exemption from different industrial units (such as food, clothing,
catering) were the result but 51 of them were dismissed and 16 of them were waiting
for the answer. This showed that this decree is related to rather the food based units
and not only the international ones but the too big national companies also cannot get
the permissions. [11.]
Here are some exceptions also according to the nationality and the size of the newly
build malls but the real problem that it can cause many difficulties to the Hungarian
economy.
On one side there are the causes that called this decree alive that are the protection of
the environment, with only the smaller sizes and to save the clean areas. The other
cause is the protection of the retailers that can sell more if the big shopping centers
do not appear and steal the costumers from them. This must have been based on
researches that about the shopping habits of the people. [11.]
But on the other hand there are the disadvantages that have an effect on the whole
country and the infrastructure. For example there is the fact that these centers have
many employees in only one building and if they keep on building in Hungary it can
have a positive effect on the unemployment rate because more people could get a job
that would help Hungary. It would not be a step further but in this case that the
opposite thing is going to be accomplished, it is a step backwards that puts the
country deeper in the recession. The building of shopping malls, these employment
factories could improve the economic life of the country and stop Hungary from a
worse situation. [12.] [13.]
The other huge problem connects to the constructions in which the
Potvorszki Trans plays a role and the most related to my thesis. The constructions are
a very important factor of a country that tells a lot about it. It determines the
economic situation and gives work to the people not only inside of the buildings but
outside of them before it is ready to open its doors. It provides work and money to
different entrepreneurs from the beginning to the final inner works. The Potvorszki

14
Trans worked for prime-contractors (e.g.the Asian Centre), so this stop has an effect
on his business.
The www.hir24.hu wrote at 17:44 on 21.11.2011. that the consequences are equal to
the situation in which all the flats would be stopped to build. In the same article they
wrote that for 2012 the decrease in the construction industry would be 10%. [12.]
This rate was different in 2012, to take a look at the whole year it is -7,6% in case of
the buildings and the edifices decreased by 4% according to the datas from the
www.ksh.hu. [14.]
This proves that the forecasts are not always right and that it is impossible to tell
what the future has in store exactly.

15
6. Potvorszki Trans
The role of the Potvorszki Trans takes place in the construction industry
as an enterprise that works in the transportation sector.
Potvorszki Attila started his business with a Russian Kamaz in 1995 in
Domonyvölgy.
The features of the environment and the economy made it possible to buy another
next to the owned one and he bought his second Kamaz in 1997. I will bypass to the
statistics later on and show the reasons that that time there were more constructions
and more entrepreneurs also but the business men could live from that work.
Then when it came to millennium he sold both the vehicles and bought
an earthmover the so called JCB 4CX that was 8 years old that time. From the
income of the trucks he could cover the cost of the new comer and save a part of the
money for later. This earthmover was successful in the area and had made profit, far
more than the old Russian autotrucks.
After 4 years – in 2004 – the entrepreneur had bought a new MAN
27.343 from the money that the JCB earned and then in 2006 he bought a Scania
124P (with the weight of 24 tons). That time the economy made the best of it for an
entrepreneur such as Attila Potvorszki so that he could buy new vehicles in a shorter
period compared to the current situation. And the top of all these in one year after the
first MAN he bought another MAN but it was only a smaller brother of the previous
one.
That time he had a JCB 4CX, a Scania 124 P and two MAN vehicles at the same
time.
The reason why he bought the second MAN 8.163, the tent truck, was that he was
about to have some work at a Hungarian subsidiary (Hungaro-SLR) of the German
SLR Group. They offered him a part-time work that was about to make the profit and
earn much more than the price of the vehicle. After the contract had been made the
entrepreneur knew that it would have been worth the money he was going to invest.
The 90 % of the works on this smaller MAN was the work it was employed at the
company and the rest 10% was from removals.

16
The business worked well that time and was the most successful in its life but then
came the crisis that almost made it collapsed.
In 2008 the entrepreneur had to buy a Volkswagen Caddy to carry the people to the
places where the vehicles worked to save their condition and it has a function of
carrying the fuel to the trucks so that they do not have to move from the workplace
and get to a station only stay where the work must be done.
When the work is far from the site, and the traveling would take hours with a JCB
that can go at the speed of 50 km/h the VW gets the people to the place and the
vehicle can overnight there. This is less costly because the Caddy consumes less than
the bigger and more weighted trucks. This car was also good for carrying the parts of
the trucks or to bring the wheels or any necessary parts that went wrong or new ones
are needed.
In 2009 he had to sell the small MAN because the work at the German subsidiary
was over and the removals were not the most popular movements of the humanity in
the middle of the crisis.
But the VW Caddy is a subsidiary tool in some ways. It also works for the German
company sometimes and takes care of the work that could have been given to the
MAN.
The entrepreneur changed the JCB to a newer one from the same type, but the new
was made in 2000 that is a very important feature of the vehicles according to the
problems that appear with the time. The newer the auto the less the problem that
prevents the added costs of repairing them.
Later in (January) 2011 the other MAN has been exiled because of the
costs of its maintenance. From the money of the sold MAN the enterprise became
richer with a Bobcat in the spring of 2012 that has no maintenance costs and it still
makes no losses when it just stands at the site with no work to do. The bright side of
this vehicle is that it has no additional costs like the autotrucks but can work when its
time comes and makes more profit compared to the other types from the proportion
point of view.
Still in 2012 the entrepreneur bought a Kamaz on a very cheap price. It is supposed
to do the ork in the kind of places where the Scania is too expensive for amortization

17
and the Kamaz could not get hurt that easily or its repair is not that costly as in the
case of a newer and better vehicle.
Now, looking at the current situation the Potvorszki Trans has a Scania
124 P, a JCB 4CX, a Bobcat, two Kamaz and a Caddy.
Photo 2.: Machine Park of Potvorszki Trans
Every of them are good for other works that makes the business broader and can get
almost any kind of work with the devices.

18
7. Analyses
7.1. SWOT analysis
STRENGTHS:
quality of vehicles
employers
place
experience
contacts
well-known
well-organized
the strong middle
WEAKNESSES:
number of vehicles  seasonality
marketing activities
OPPORTUNITIES: expansion
growth
THREATS:
no payment or only later
tax system
jurisdiction
Figure 2. : Edited by Timea Potvorszki
Potvorszki Trans has a lot of advantages from its organization and how
the employee built it up.
Potvorszki Attila started his transferring career with the old Kamazes,
like everybody else in the 90’s beside the brand IFA and how the years passed he
started to buy the newer and more modern machines to take place in his business.
Now he has a Scania 124P with 24 tons with trailer, the so called Queen of the Road,
one of the best brands in lorries and trucks which is in very good condition. Plus a
JCB from the earthmover category, a Bobcat and a Volkswagen Caddy. These are
all quite new vehicles which can keep the business running.
And also the fact that the competitors have no quality trucks or nowadays their trucks
cannot be called working gears, because of their age. In the neighborhood there is
only one competitor who has better machines and a lot more in the same category,
but he is rather specified to transferring and not the sequences or landscaping, like
Potvorszki Attila does.
Potvorszki Attila has 3 employers, who are qualified and work on the different
machines, dependent on their qualification. These people are well chosen, they are

19
enthusiastic and trustworthy and they always do what they are told to do and always
in time. The entrepreneur has almost only advantages out of its employers, except
only some rare cases. But if something goes wrong according to the trucks, it is not
always the fault of the human, but most times the machine itself as time passes.
Another factor is the location, the place where the entrepreneur keeps its lorries, and
the place of the site, what is near to his home, and he does not have to travel to reach
the vehicles, and so the employers live more or less near to the site what makes the
situation easier, and they do not have to travel 30 minutes to get to the place of the
gear to start the working day, and they do not have to be paid for the fuel. Another
thing comes from the location what is a part of the contacts, because the place of the
site is the place of the current town and the place of the childhood what leads to that,
that the entrepreneur has a lot of acquaintance from his past and a part of his work
comes from these connections and they are in the near for example in the
surrounding towns. Because he is one of the bests in the near and the one who has
the most relationships. Beside this there are the Lázár Brothers who offer a lot of
work, and keep the entrepreneur hired there.
During the years of the business, what started in 1988, Potvorszki Attila had time to
get experience in this field, and with working all over Hungary get more
acquaintances that can offer him to others, and use the word of mouth technique of
marketing what helps the most. Thus he can become more well-known and get more
opportunities to work.
The enterprise itself is well-organized, the entrepreneur makes his business the most
the way he can manage everything. He manages the phone calls, goes after the work,
and then when he has the plans and he places to go, he divides the work and inform
the others who has to go where by which vehicle and tries to split it the way it fits the
most to the people, and harmonize the machines with each other due to their
functions. (Some of them cannot work without another in some cases.)
These factors make the entrepreneur a player in the strong central field, which counts
good on the countryside especially in Gödöllő and in the surrounding towns.
On the other side there are the weaknesses, like the marketing activities.
The enterprise has only boards in Domonyvölgy, nowhere else, while it has work in
other towns and settlements, but increasing the number if the marketing vehicles

20
would just increase the number of clients. Potvorszki Trans has the phone number on
its vehicles as an advertisement, but it is still not enough to be more popular.
There are some situations where the number of the machines is not the appropriate. It
happens when in winter they do not work, sometimes none of them, but sometimes 1
of them does (JCB) in case of snowfall. It is way too expensive to keep the machines
when they are not working, the most expensive vehicle is that one which has nothing
to do, it does not earn money but it has costs at the same time. So there are problem
when there are too much machine gears that are not working bot the collateral cost
has to be paid after them.
On the other side there is the other part of the problem, when the number of the
vehicles is not enough. This problem is sometimes guest in the summer, when in the
spring, all the people start something new and they need masters to build real estate
or any kind of building. It sounds good in itself, all the machines have a place to go
and work there, all the employees are working, but sometimes one vehicle has to be
present in two or more different places. In this case the employer has to organize
them, but most of the cases the clients are not flexible at all, and if the entrepreneur
does not spend the workers in time, then they will never have to go there again. The
clients have the possibility to choose from many, but the entrepreneur has only two
or three possibilities, and has to manage the problem.
The opportunities are to put the emphasis on the marketing activities, this
way the business can grow, at first it can have more clients then it can make more
profit and after it the entrepreneur can buy more vehicles, with more functions, to be
able to make more types of work. Or they could go the way of specialization and
broaden the machinery. After it the enterprise can expand through the country, and
get to more people, or it could undertake more work at the same time.
Or it can buy different vehicles and target different segments broaden the customer
group.
The threats are more dangerous than the weaknesses, because the
entrepreneur has nothing to do against them, and these functions do not seem to
change in the future, or in the next 10 years.
It starts with the tax system in Hungary where the transfer enterprises and companies
are the number one victims, because of the many restrictions.

21
The National Transport Authority declared that if a lorry wants to go to some parts of
the capital, it has to claim permission for retortion what is about 3 days to arrange,
but the work has to be done in time and if the entrepreneur is called the day before
work (what is usual) he has no time to arrange the permission and from that moment
the possibility is gone.
Beside this the drivers has restrictions according to the hours of driving, they can
drive 4,5 hours for once then they have to stop for 30 minutes to have some rest after
it they can drive 4,5 hours again, but here it ends due to the 8 hours long rest, what is
from one point of view understandable, if people keep it, but on the other hand, if
someone carries asphalt, it has an expiration time, after what it cannot be used, and
the driver cannot get there in time, then the enterprise will be replaced.
Police means the other main problem; they are focused on the lorries and camions,
and rather on dumps. They punish the drivers if they have axle overweight what
means 300 000 < 1 000 000 HUF. But the drivers cannot always be aware of the
weight they carry because at some constructions there are no scales thus they cannot
measure the cargo and they can easily be punished.
Plus the freightages are low, they almost only cover the costs, because the prices
should be kept low and the price of the fuel is increasing continuously, the collateral
costs are coming plus the employees have to be paid in time even if the employer
does not get the money in the next two months or not at all.
Some of the entrusting companies report bankruptcy so that they do not have to pay
after all, and let the subcontractor die at the battlefield or they simply do not pay, the
money cannot get to the lower level of the pyramid, but the subcontractor has to
undertake the work and take the risk, otherwise there is no way to carry on the
business.
Due to the tax system and governmental issues there are less and less constructions
and people do not willing to build anything, thus the entrepreneur has no work, no
possibilities and no money to get further.

22
7.2. BCG matrix
STAR
Scania
Kamaz
QUESTION MARK
CASH COW
JCB CSX
DYING DOG
Bobcat
Figure 3. : Edited by Timea Potvorszki
In the business there are six vehicles, the Bobcat, the Scania (with a
trailer), the JCB CSX, the VW Caddy and the 2 Kamaz.
The usage of them depends on the seasons of the year and the restrictions according
to them.
In the ‘dying dog’ region there is the Bobcat. Its price was over 4 million
Hungarian forints but it has made no profit during the last year. However the reason
behind the purchase was not the money it can make within the shortest period. The
conception started when the entrepreneur sold the MAN autotruck and bought
instead the Bobcat with many advantages that the lorries do not own.
The Bobcat gains neither compulsory insurance nor weight tax, if it stands for a year
it only stands and consumes nothing (even the place is in own hands so there is no
fee for that). Even if it works two months per year it is worth it counter to the trucks
that always have something to pay after such as taxes that is usually a huge amount
plus all the other payments. This ‘product’ deserves a destiny that it will not be
harvested from the market due to its minimal collateral expenses.
This vehicle is used for smaller works where the JCB CSX cannot get to or so big
that it would cause more damage than benefit. It is also used for landscaping and
handing out rocks.

23
In this field there is another vehicle, this is a newcomer, another Kamaz,
but the difference between this and the owned one is that the new is younger, this is a
made in 2005 and a lot bigger one. This truck is a four axed and it owns a trailer like
the Scania.
Knowing that it is a fresh one and the entrepreneur bought it in February 2013, it had
no chance to prove its efficiency.
The ‘Star products’ are the autotrucks, the Scania and the 2 Kamaz
because they are the most profitable vehicles in the business from March until
November. These earn the most money but on the other hand there are the collateral
payments that change the balance. They can move to the star side but the restrictions
do not help to make it possible and worsen the situation. In the summer they can
reach the highest level when the business works harder and faster.
The facts tell that if the entrepreneur could buy a new vehicle, then this type is
getting better and gets more work, so they can make more profit if he invests in them
that shows that its way is growing.
But after November until spring these are like the ‘dying dogs’ because they also
bear the payments but they do not get paid at all. Sometimes there can be work but
they are so rare and not for a greater amount of money. This is the drawback of the
seasonal work and business.
The ‘cash cow’ is the JCB CSX that works a lot in the high season and
also in winter if the weather makes it possible. This type of vehicle is so similar to
the mentioned Bobcat. The common things in them are that they do not gain much
and do not eat up the money if they do not work but if they work they make money.
The JCB and the Bobcat do not demand technical test and taxes after their weight
and the top of all these they are not that expensive in case of compulsory insurance.
This machine will keep its position as long as it can, because of its low expenses.

24
7.3. Ansoff matrix
Market penetration
functions of:
JCB
Scania - trailer
VW Caddy
Bobcat
2 Kamaz
Product development
1 Kamaz 2 Kamaz
Market development
functions of:
JCB
Scania - trailer
VW Caddy
Bobcat
2 Kamaz
Diversification
-
Figure 4.: Edited by Timea Potvorszki
Potvorszki Trans can decide whether to step into a new market with
something new or just stay in the current position without any modification.
The enterprise stays in the current position and chooses the way of
market penetration. It has its machines and their functions that are profitable in a way
and it is the easiest and safest way to stay on the ground. It can be supported by
marketing activities that may enhance the demand for them, like I mentioned in the
introductory part, like some online activities and more outdoor advertising. It can be
helped by a complete, well-designed and reliable webpage with the relevant
information showing the quality of work to attract the attention of the people and get
them hiring the entrepreneur.
The entrepreneur has the possibility to enter a new market with its own
machines; it could expand geographically and conquer the settlements around the
border of Hungary. He does not plan to expand his business outside the country, but
only within the borders of Hungary. The enterprise can make its own footsteps with
its existing vehicles, because they are almost all that he needs and uses in his
business. Every machine gear has different function except the Kamaz and Scania,
the Scania is capable to do all that the Kamaz can do but there is a need for work in
worse places where there is no asphalt or concrete or they are too old and in a bad
condition then not the Scania is spent, but the Kamaz what is undemanding and
cannot be hurt easily. But this expansion is possible with more vehicles only, because

25
if the automobile work far from the site, it cannot be driven home, but has to spend
more days at different location, this way they are out of the main area. Months ago
this was said by the entrepreneur as a reason not to expand geographically.
But now this problem was skipped by buying a new Kamaz in 2013 that can go
further and then 2 others can stay if new work comes and there will be no need to
borrow anything from the colleagues or having a dilemma about sending the vehicle
or not and this way losing some possibilities.
Before this year the entrepreneur and most of the colleges were planning
to buy new ones, but after the crisis all of them gave up on this idea and concentrated
on the available machines they had. The fact that the constructions ‘stopped’ after the
crisis really has an effect on all the enterprises in Hungary especially on this field.
And the other reason why it is not worth to invest in new machines is that when the
entrepreneur has its vehicles are busy or needs a vehicle with a different function like
an earthmover with a drill, ha can recommend a colleague and vice versa if the
colleague will need something, he will call the entrepreneur who helped him gave
him work. Thus without some specific machines the entrepreneur does not lose the
work, ha can count on the other colleges.
This is the situation with the product development; it would not worth to
buy new machines when they can count on others.
There is a hidden possibility that could help the enterprises that are near to each
other. They could make a guild to be more profitable. The usage of the vehicles
would be better; they could support each other and lend the machines if it is
necessary and the ‘members’ would earn more. This reduces the rate of not getting a
job because of the lack of the trucks; this way they can live with the advantage of
‘owning’ more machines and have a greater market share with the power of the
organization.
But there are some exceptions as the situations that gain some risk like
another enterprise is sinking because of some problem (that can be financial or even
private) they supply the machines on a cheaper price that would be a mistake to miss.
If an enterprise sells the vehicles they can easily eaten up by the wolves of this
market and buy them far lower the normal price. This is the time when nobody plans
to buy anything to develop the products but will develop that if the chance comes.

26
The diversification is a too big step for any of the small enterprises in the
near that are the competitors of the Potvorszki Trans, because it can easily fall and
that would mean the end of the enterprise. No one has the needed amount of money
that could start a diversification or if yes, and this step turns to failure that would be
too risky. [15.]

27
7.4. STP
7.4.1. Segmentation
As I mentioned before the enterprise did not deal with any kind of
marketing, it did not consider the target groups, the potentials or to whom to send the
message. It just existed through the word of mouth form and did not care about the
other ways of communication with the clients or the potential clients.
The current groups of clients are the bigger companies and private
people.
The companies are aware of the enterprise by other companies or by contacts, like a
friend of a family member.
These companies are Hungarian and international as well, like the German
engineering Ltd., the H-SLR who gives only transfer possibilities, but most of the
other companies are dealing with greater investments such as drain aging and road
constructions.
The most common partners in drain aging are the Fémszerkezet Ltd. and
the Alterra Építőipari Ltd. and in road construction the partners are Swietelski and
the Magyar Aszfalt Ltd. The other part of the work comes from the contacts like the
Lázár Horse Park in Domonyvölgy where the entrepreneur has his site and the
Mayor’s office in Domony what lays right next to Domonyvölgy.
The other group is the group of private people who are rather from the neighborhood
of the entrepreneur and are at the age of 30-50, those who have money to build their
own house like the 30 years old people.
They are aware of the enterprise and its quality of work from the neighbors who
recommend Potvorszki Attila to others.
In case of segmentation the most important groups remain the same;
these will be the companies and private people as well.
There are different segments to choose as the target market. The most important
thing is that they have to be involved in the construction activities and those who are
willing to or about to build.

28
One of the main activities is the transporting that can target not only those who are
close to build but those who have anything to be transferred to somewhere, such as
parts or rubble.
The different activities or functions can target different people.
The first group is the companies and enterprises who deal with constructions. This
contain more different groups, such as those who work in the field of road
construction, then those who work with building constructions and those who deal
with channeling.
There are some crossovers in case of the activities of these businesses; they can work
with almost the same vehicles.
The road construction is the business that fits the most to the Potvorszki
Trans according to its activities. At a road construction all the vehicles of the
entrepreneur can be used from the Scania and its trailer what can carry 13,14 tons of
material per one freight what makes the work faster. Here can be the best advantage
taken of the carry. Then the earthmover what has the main function in fixing the
ground as the base for the road itself. Here the Kamaz can be used for carrying the
rough material taken away.
At the constructions of buildings like big shopping malls, also the Scania,
the earthmover, the Kama3 can be used, for the same goals, but here there is work
with landscaping around the buildings for what the most efficient is the JCB itself, so
here the earthmover has the main role.
In case of constructions more or less the same functions are needed and the same
vehicles, because at the beginning the pre-works are so similar, they always start
from the ground and the base. [16.]
ROAD AND RAILWAY CONSTRUCTIONS
In the case of the road works the most common task is the earth transport
that can be done by the Scania and the Kamaz, these two vehicles have the majority
of the work. The JCB and the Bobcat are for landscaping that prevents the mentioned
work.

29
CHANNELING
On this field the work is done by the Scania, Kamaz and the JCB. The
trucks bear the work of transportation of any king of good and the JCB is for the
works around the working place.
SHOPPING MALLS
In case of this kind of constructions the role of the smaller landscaping
machines is bigger than at the previous ones, but still the Scania and the Kamaz have
their own shares and are the empires on the constructions. The JCB is good at
working on the land before it is used for the construction and the work after that
when the environment must be done.
Everywhere the construction starts with the transportation of the needed products that
cannot be neglected. The most common function of the enterprise is the carry of
goods that needs the Scania and the Kamaz (the trucks) and the landscaping requires
the JCB and the smaller brother, the Bobcat that is quite small for this bigger works.
The next segment in the group of those companies who make B2B activities and
want someone to carry the parts or some material to their partner whether it is in
Hungary or abroad (in Europe).
HUMAN POWER
This work requires, at first, good drivers. People, who drive auto trucks
have to be better than the usual people owning driving license (the appropriate
category) but they have to face the physical consequences of carrying the goods
across miles and their effect on the trucks. Any kind of problem can occur such as a
flat tire that can cause many damages not only to the vehicle but to the carried
material.
The employees have to be circumspect and enthusiastic but above them he has to be
conscientious. He has to do the work responsibly because the quality of his work is
the core for the building and if the ground is instable that can cause serious accidents.
Several types of companies are working on different constructions, some
of them are building railways, others roads, others pipes or telecommunication and
electronic networks or some of them work on public buildings. But in a case of a
small enterprise this is not a problem due to the fact that the entrepreneur is not

30
responsible for the work that needs experience and professionals because he does the
job he is supposed and fulfills the orders given by the experts. So here there are
different segments according to the type of work but from the real work’s point of
view it is negligible, because the employees of the Potvorszki Trans do the same
working processes everywhere. [16.]
POSSIBILITY IN PRIVATE MARKET
Then comes the private people, who have surplus things and want to get
rid of them, these are like infield or gravel after a construction. These people can
have a need for all the machines or functions of them, from the very beginning; from
the digging the base and landscaping. So on this field the earthmover is the most
popular or the Bobcat for smaller places and gardens.
These people are rather between 30-55 who have the money to build their own
houses and have their own residence and not the type of ‘moving to a flat’ people.
[16.]

31
7.4.2. Targeting
The companies in the field of constructions are a good choice because of the use of
the vehicles, that are utilized the most here. The entrepreneur can take the advantage
of his machines, because two of them have a lot to do with this business and the
others are useful here. Here out of 5 vehicles are least 3 can be used for
transportation and two others can be used for landscaping (one is in general and the
other is for smaller spaces).
The group of private people contains people who are about to build and those to
whom the look of the garden and the land is important, and enjoy the nature. They
need reliable people that they can trust, and they care about the quality of the work
and they seem to build more and some extras around the house like a garage. Here
also a great percent of the functions can be used completely what makes it worth to
invest in this group. [16.]
POSSIBILITIES
In case of the B2B companies, they need the VW Caddy to carry the different parts,
or the Scania and Kama3 for the freight of other kind of material like asphalt or
gravel. Here more vehicles can be used but for a smaller works. They are an efficient
target group because three out of five machines can be used there.
The group of private people is not worth to invest in because according to the data I
used in during the analyses the dwelling constructions do not go the way that leads to
a richer future, they are getting lower and if the forecasts are trustworthy then in
2013 this situation is barely going to get better. This group is out of the consideration
region.
The civil engineering constructions are in a bit better situation, in 2010 they got
lower but from the second half of that year it keeps a standard position. The non-
residential buildings did not damage too much and they have the biggest share in that
industry. But adding up every unit, except the residential buildings, form a greater
possibility to target, because they showed a better tendency during the years.

32
7.4.3. Positioning
This service providing enterprise has started in 1994 in Domonyvölgy
with a Kama3 (80’) and only the entrepreneur. He was doing the business for three
years alone then his brother joined the enterprise and he bought another Kama3 for
the employer to work with in 1997. Than in 2001 Potvorszki Attila has started to
work on the development of the business, he bought his first JCB 4CX and in 2003
he sold the older Kama3 and in the same year he bought a MAN 6*6 (6 drive wheel)
in good condition and in 2005 the other Kama3 has been sold and the Scania was the
new comer and the younger Kama3 left the business. In 2007 Potvorszki Attila
bought a another MAN tent truck with a contract to a company (H-SLR) for 2 years
what expired in 2010 and he sold it because there was no work ad demand for the
vehicle. After it in 2008 the JCB was changed to another JCB the same type but 9
years younger. A VW Caddy came in 2009 with ½ tons capacity. In 2010 December
due to the less working possibilities he sold the MAN and in the same year he bought
a Bobcat. In 2011 he expanded with a trailer and in 2011 he bought another Kama3.
In 1997 the brother of Potvorszki Attila joined the enterprise and got an
own vehicle and after it has been sold he worked on the big MAN and after the MAN
he worked on the Scania. In 2007 Juhász Ferenc joined the business on the MAN
ponyvás and after he had the Scania before Potvorszki Tamás.

33
7.5. Marketing mix
7.5.1. Product (business activities)
The quality is strong compared to the others’ and its value counts on the
market. The entrepreneur has better vehicles that go along with the chance to do a
better work.
The range of the services is broad, it includes the following activities:
Transportation of goods in bulk, roadbed stone, stone, aggregate filler, soil, filling of
land, sand, concrete, concrete rubble, gravel, decorative stones.
Furthermore: mechanical excavation, basement lift blocks, road mirror preparation,
loading, landscaping, demolition.
7.5.2. Price
The business started with the competitor-based pricing strategy and keeps
using it until nowadays that is the most affective. In this field the prices cannot be
more than the average when everyone is fighting for survival and try everything to
get the work and the clients. As all the others Potvorszki Trans tries to build up the
prices to be the lowest possible but to earn profit also.
7.5.3. Place
The enterprise functions where it has work. It can be within the borders
of Hungary or next to the frontiers outside of the country. The enterprise is
everywhere in the country and sells the services all over it, there are no exceptions or
left out towns or villages. The work must be done anywhere it is, and the enterprise
goes to the predetermined place. It has no sites everywhere to make the work with
distance easier but that would need more vehicles from the same category but the
distance is paid also but it is not attractive for the clients.
The most realistic solution is that the enterprise targets the nearest places and not
those that are far away from the site, because it is irrelevant and makes loss and time.

34
7.5.4. Promotion
TODAY
The enterprise does not have many things to do with advertising. It has 2
boards in the village of the site on the countryside that no one sees but the population
of the village who are aware of the business and know it from years.
FUTURE
It is better to advertise in the region that is about to be the target and that seems the
more effective and flowering place, but not so far from the site. There were examples
of appearance in newspapers but it seemed too expensive to spend on it, so it stopped
but a restart with reconsideration can help the enterprise to grow and gain more
clients.
In case of print media the enterprise needs improvement and according to other kinds
of media vehicles it needs a fresh start.
7.5.5. People (human-factor)
The employees of the enterprise know their job and are qualified in their
field of work. They are one of the most important ingredients of a business, the
clients decide upon their experiences in connection with the workers. If this work is
not done well, the costumers will not ask for them anymore and the business will go
the way of depression. Not only the quality of job is important but the personality of
the employees that get in touch with the contractors and they better have a positive
effect. Anyone can do a job right but the personality counts also and it can tighten the
circle of the potential enterprises. According to this factor the enterprise is in a good
position compared to some of the competitors.
7.5.6. Process
The process of service delivery depends on the service. Sometime it is
slower but the client does not feel it only the entrepreneur when it comes to the time
of an earthmover, its pace is slower and the way seems longer to the working place.
The trucks arrive in time always, they count with the traffic jams and with the many
years of experiences they know the features of time and ways.

35
7.5.7. Physical evidence
Mostly the impression is dependent on the look of the vehicle that
appears and works at a construction. Everyone wants a good looking machine to
work for them because that gives a little bit more elite look to them and attracts the
attention of people. In the Potvorszki Trans there are good looking and attractive
vehicles that are new and have a brand except only one Kamaz that is older but it has
its own functions. [15.]

36
7.6. Competitor analysis
The competitors are rather those who started their business in the near
and did not but had the possibility to develop. In the surrounding settlements there
are ‘competitors’ like Mészáros István, who is really weak in the case of the vehicles,
he has only 2 machines, one is a Bobcat what can be a competitor in itself, because it
can spin in 360 degree, while Potvorszki Attila’s machine bears only 180. But on the
other the other machine he has is a Liaz, a very old one in bad condition and he has
no carriage license, and this is the reason why he can go below the minimum price
level and is employed by some potential clients.
In Kartal there is the Lados Trans, one of those who survived and developed during
the years. He has a MAN with 4 axles, a Volvo and an Iveco that are quality
vehicles. He works rather on the same price level but he advertises himself on
apronet.hu.
In Gödöllő there is another competitor that is the Kele Trans, the entrepreneur works
with his sons on the same price as Potvorszki Trans. They have a truck, type: MAN
and a Kama3 like Potvorszki Trans, but MAN truck of Kele Trans is older than the
Scania of Potvorszki Trans, the two trucks has the same function. He has a
Caterpillar earthmover on the other side of the scale competing with the JCB.
But these competitors has only 2 functions or less, not like the Potvorszki Trans, but
they all work with the same prices.
According to the vehicles, they are in very good conditions, not like the
others (except the Lados Trans who works only with trucks no earthmover of other
machine) and they can do different things due to their functions. The Potvorszki
Trans undertakes transporting of gravel, infield, asphalt and rocks. It undertakes
landscaping with 2 vehicles, channeling, plumbing digging, basement digging, stats,
transporting of iron parts, base band digging and so on. This enterprise is developed
than all the others in the area but if it comes to broaden the boarders to the direction
of the city it becomes harder because of the big companies. [16.]

37
7.7. STEEP
7.7.1. Social factors
The social factors are rather the human beings and their habits according
to the constructions what keep the business of the transfer enterprises and companies
going. Some of them are bounded by their income and financial issues not only their
personality, and they may want to move and build but they do not have the financial
fund for that. But this can be blamed on the economic factors too, that the situation in
Hungary barely let people create their own residence. [15.]
The youngsters are more willing to follow their own notion and to live the way they
imagined and for that they need a house they imagined to live in. People prefer to
live in detached houses with gardens and not with many other people in one block.
But the problem starts with their income, if they cannot built up an own house, they
move to a flat or they live with someone else like a family member or a friend.
Young generations have the willingness to move, some of them leave the country
and some of them are too mobile to invest in a house, to rent a flat is worth more
than to build or buy an own one. If they build that supports the industry but if they
only just buy a used one, it has no positive effect according to the constructions.
A typical example is the Hotel Mama, those who are able to buy or build a new
house and have their salary is more than enough, rather live comfortable than
independently or support the economic situation or the situation of the construction
industry. [17.]
Social factor can be the style, if people enjoy the nature or natural outlook of the
garden they spend more money on that and invest more to get what they want what
would boost the business of the enterprises such as the Potvorszki Trans.
This action is specific to the older generations with own life who have earned the
money that can be invested.
7.7.1.1. Types of houses
The following diagrams show the habits but rather the possibilities and
the affordable types of houses that people build. This shows the value of the
production of the constructions in Hungary during the last decade.

38
Taking the three most common types of the houses – these are the one apartment
type, the two or more apartments type and the community houses.
The early 2000s:
In 2000 the amount of money spent on the construction of residential
buildings was close to 60 000, but in 2001 this amount doubled but according to the
rates of the different types, they changed the following way. The amount spent on
the community building became 3times greater but the two others did not grow this
much, they grew by less than 50%. Looking at the proportions the community
buildings own a greater share than in the last year in 2000, by numbers it was 15% in
2000 and 21% in 2001.
The community buildings started to develop and run on the market at a higher speed
than the two other type, but those also grew.
Figure 5.: Residential buildings in 2000
Edited by Timea Potvorszki Edited by Timea Potvorszki
This time the Potvorszki Trans had work, the market was in the spotlight
that is shown by the change from 2000 to 2001 in numbers. There was no need to
search for the market, because there was enough place for the Potvorszki Trans and
its fellows to survive.
14031;
24%
36461;
61%
9
202;15
%
Single buildings
Two or more apartment
23835;
19%
74716;
60%
26016;
21%
Single buildings

39
The crisis:
In 2008 the community buildings dropped and lost their empire plus the focus was
placed on the residential parks that was worth too invest in. During the crisis that
started in 2008 and the economy indicated it in 2009, and the type that was very
favorable, set back but it still had the greatest share in among the residential
buildings.
The family houses also had a higher amount of money but this growth is at a slower
pace until 2008 and in 2009 it also had less investment. [18.]
Edited by Timea Potvorszki Edited by Timea Potvorszki
During the crisis everyone had difficulties due to the changes in the
investments and the constructions all over Hungary and the increasing number of
entrepreneurs. The number of the players grew thus the shares fell back and that was
worsen by the fact that the economy was in a bad condition. The Potvorszki Trans
survived this and kept on doing the business with less or different vehicles that
seemed less costly and profitable in some ways.
32,175
113,780
11,785
Single buildings
Community buildings
30,379
92,998
11,164
Single buildings
Community buildings

40
The present:
Figure 9: Residential buildings in 2011
After the crisis in 2011 the community houses kept on growing but at a
lower speed and the single houses started to follow this example and grew by 19,3 %
after a depression of -26 %.
Between the two types the buildings decreased but on a lower level, that can lead to
growth later.
The single houses had a depression until the end of 2010 and started to revive in
2011.
In the case of the community buildings a scale can be observed, that comes from the
top, has a deepest point but goes upper again. Not like the buildings with more flats,
they decrease constantly from 2007.
In 2012 the tendencies did not change much, the things kept on going like in the
previous years, the production decreased. On the battlefield of the houses the
situation is not favorable according to the first 3 quarters of the year 2012. The
number of the houses built was 20% less than in the previous year, even the permits
decreased by 12% . [20.]
In 2012, divided by the types of building the production formed the following.
The family houses decreased by 13% . From 2009 to 2010 it dropped by about 26%
but the following year it increased by 15% (2010-2011) and then it had a 13% loss
for 2012.
26,874
52,933
15,001
Single buildings
Community buildings

41
The multi-storey buildings also dropped by 45 % that is one of the most extreme
changes during the past years but this type was increasing until 2011 from 2008.
[18.]
The residential parks increased by 16% that showed deterioration from 2004 but in
2012 according to the data from the www.ksh.hu. [19.]
The Potvorszki Trans did not get well after the crisis, its mandates did not increased
during the last years and its communication also did not developed. This small
enterprise clearly reflects the situation of the economy with the decreases also in the
possibilities and the increase in the costs. This does not seem to change in the future
(according to the forecasts) that claims some communication activities that let the
target know about the Potvorszki Trans.
SUMMARIZED
Figure 10.: Summary of the residential buildings 2000-2011
Source: http://www.ksh.hu/docs/hun/xstadat/xstadat_eves/i_oe003b.html
This scale shows the investment in the houses built in one picture. It
shows that the most popular was the building with two or more parts but on the other
hand it had the greatest depression from 2006.
As the red line started to go down the other two went up.
The other two types were not that popular during the years but they started to
increase in the last three years.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Single buildings
Two or more
apartment
Community
buildings

42
The single apartments show a more aggressive increase than the community
buildings but the community buildings is slower, longer and can be more certain.
The residential buildings dropped in 2012 so the social factors do not
make the entrepreneurs hope for the improvement. The residential buildings are a
great part of the construction industry and if they do not develop, it causes many
problems to the companies dealing with this kind of activities and the enterprises that
work for them. The small enterprises will suffer if there is no demand, because their
number is more than the amount that the companies can supply thus they will not
have enough work to do. [20.]
The construction industry writes the future and present of the sub-contractors, it has
to develop to feed those who are in the business. The industry provide work to the
bigger companies that have their profit, but on the lower level of the ladder the
smaller ones get fewer from the industry because it has to get through the upper
levels. The worse the condition, the more the big companies cheat. They can use the
smaller ones as a shield in the hard times as they worn out and then throw them away
when it is time to pay for their work.
But in the early 2000 there were more investment in this field and the small
enterprises gained more profit, but still far less than those who were above them, but
this time the business was smoother. That times things went better and it could be
seen on the SMEs too.
The dwelling constructions in Hungary do not perform so well compared to the civil
engineering. But the civil engineering has more sub-groups that require different
types of companies and their experience according to the work. But in case of small
entrepreneurs it is not a point of view because they can be hired by several big
companies because the experience requiring work is not their business but the
companies’, they just follow the orders and ‘participate’.

43
7.7.2. Economic factors
7.7.2.1. In general
The economy in Hungary experienced the crisis too in 2008 and 2009. The effects
can be observed in case of the statistics that the values decreased from 2009 when the
citizens realized the importance of what they had before and knew that it can be more
in the future.
The following is a chart about the investments in national economy that shows how
the crisis bended the curve and destroyed the upward situation.
Figure 11.: Investments in national economy (billions of HUF)
Editd by Timea Potvorszki
From 1990 the percentage of investments were increasing until 2008
until the year of the crisis and then in 2009 it started to decrease and a lot less were
invested in the economy what had an effect on the enterprises and companies as well.
In 2012 the values of constructions had reached their lowest numbers they were 5,9%
less than the previous year’s values. But in December this started to work, this time
the decrease was 3,1% which is about the half of the annual data.
In the following chart it is clearly seen that the civil engineering unit started to grow
during the last year as the buildings decreased again. From the fourth quarter of 2010
the civil engineering goes on a consistent path and do not show great setback while
the other type does.
0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
1985 1990 1995 2000 2005 2010 2015

44
Source: www.ksh.hu, Gyorstájékoztató, Az építőipari termelés augusztusban 5,3%-
kal csökkent (Építőipar, 2012. augusztus) Közzététel: 2012. október 15., Sorszám:
160, Read: 2013.02.05. [40.]
BUILDINGS
The following chart shows how the industry performed in 2012.
Figure 12.
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1 2 3
2008
2009
2010
2011
2012

45
This diagram shows the first three quarters of the last five years from 2008 to 2012.
The years are represented by colors; the y axe tells about the values in billions of
HUF and the axe x shows the quarters of the years. The tendencies within the years
are changing. In 2008 the seasonality can be seen that in the summer and springtime
the business is more active, but from 2009 the crisis had its traces on Hungary but
then in 2010 the production was almost equal in every quarter. In 2011 the
springtime was more effective than the summertime and both were less productive
than the wintertime.
All in one number this is an almost 20% decrease that is almost the same as in the
case of the permits issued from 2011 to 2012. They are directly proportional (change
in permits and houses) so the two setbacks has an effect on the future constructions,
the permits show that only less of them will be issued in the future that restrict the
constructions and the houses that are going to be used is going to be less again.
These changes had a huge effect on the Potvorszki Trans, the business experienced
the same path, and got less work and money. These features made the business less
successful that resulted in the development of the machine park. There was no
example of buying new machines, only used ones, but this did not count considering
the technological issues. (Still in a good condition.)
7.7.2.2. Non-residentials
In the building industry there are several branches that can be potentials
for enterprises such as the Potvorszki Trans and can be targeted if they seem to be
more profitable than the others.
Here is the analysis of the different fields that are the hotels and hostels
and all the building that provide accommodation to people, the magisterial buildings,
the wholesale and retail buildings, infrastructural and news release buildings,
industrial building and warehouses, buildings that meant to be for entertaining,
education and medical science and the last type is for other civil engineering.
From the types of the buildings the industrial buildings and warehouses
had the highest values in this, which is why I have made a chart for this type, so that
the changes can be seen in a clearer view.

46
Figure 13.
This is the field that brought some profit to the Potvorszki Trans and
made the business more profitable during the past years unless when it was not at the
top of the industrial activities. During 2000 this field was about to grow but still it
did not create much work for the entrepreneurs, but this time the Potvorszki Trans
was only a very young pupil with only a newly bought earthmover until 2004.
This kind of constructions gain the earthmover, and the Potvorszki Trans has two of
them, different types (a smaller and a great one) that can show that this time it was a
target that made the entrepreneur buy the most needed machines that most of the
truck owners do not have. This was one of the main ingredients of the plans on the
future actions.
0
50,000
100,000
150,000
200,000
250,000
industrial buildings
buildings

47
7.7.2.3. Infrastructural
The next branch is about the infrastructure from 2000 to 2011. Again, the
first column includes the types and the values stand for the money spent on the built
ones.
2 000 2 001 2 002 2 003 2 004 2 005
Roads 79 458 104 282 183 702 162 816 218 390 364 918
Railways 26 177 18 734 19 493 29 837 22 364 23 860
Airport runways 131 514 2 180 4 315 1 406 970
Bridges, underpasses, tunnels,
overpass 15 514 16 262 26 681 28 980 37 448 75 842
Harbours, water passes, dams,
water management facilities 16 624 21 795 21 857 18 874 13 475 14 837
Infrastucture total 137 904 161 587 253 914 244 822 293 082 480 426
Figure 14.
2 006 2 007 2 008 2 009 2 010 2 011
Roads 320 912 189 447 160 646 247 896 176 928 140 726
Railways 43 103 40 619 50 453 65 373 48 300 64 240
Airport runways 1 534 316 357 723 199 29
Bridges, underpasses, tunnels,
overpass 89 657 70 971 62 502 84 494 30 122 39 513
Harbours, water passes, dams,
water management facilities 19 999 19 790 13 234 15 937 22 055 37 456
Infrastucture total 475 205 321 143 287 192 414 423 277 604 281 965
Figure 15.
In the early 2000, this field was not on the top and that can be seen on the enterprise
that that time it had so many things to improve in the business. But the infrastructural
constructions started to develop and this helped and pushed the enterprise towards
the future.
In 2005 and 2006 the infrastructural constructions had the best time and it can be
seen on the Potvorszki Trans that bought a new vehicle this time, the ‘breakthrough’,
the Scania 124P that is the most expensive machine on the site. These kinds of work
helped to develop the machine park that led to further development and save the

48
business in tough times. In 2006 the enterprise was in a really good condition
because of the work this field provided in 2005 and 2006, that is proved by the
Scania. It is true that the more the work is, the more the money the smaller partners
get. The main clients worked in this field and could give possibilities to the
Potvorszki Trans to grow and be profitable. This can be seen on the equipment that
were bought this time and the reason why they were purchased.
The Airport runways had the smallest share among the types and it is not
going to develop taking the Hungarian situation according to the Hungarian and
MALÉV flights into consideration. The second from the back is the harbors and
everything that is connected to the water transportation and those kinds of buildings.
These do not seem to increase in the future, so these are not worth to invest in.
The best place belongs to the roads in every year and on average too however this
field is getting lower. The railways are getting better from 2009 however the tunnels
and underpasses had a greater average during the years it shows a better increase
from 2009 and before the crisis it was in a less favorable situation. The tunnels had
increase and decrease sometimes and it was always changing thus it is not the most
reliable type.
7.7.2.4. Pipes, telecommunication, electronic networks
The last part of the buildings is the pipes and the electronic networks split
into two groups, the local and long-distance ones.
2000 2007 2011
Long-distance pipes,
telekommunictaions
and electronic
networks 20 898 54 571 47 899
Local pipes,
telekommunictaions
and electronic
networks 80 481 107 998 131 907
Pipes,
telekommunictaions
and
electronicnetworks in
total 101 379 162 569 179 806
Figure 16.

49
For the first sight it can be seen that the local pipes are far more than the long-
distance partners and compared to the total number it is about 1:4. But from 2006 to
2007 the long-distance pipes had a greater growth and in that time the local ones
started to decrease.
The pipes and networks barely had an effect on the Potvorszki Trans, this did not live
its best in the early 2000s when the enterprise built up the business and bought most
of the machines. This field could be profitable in 2010 but in 2011 the MAN had to
be exiled because of the costs and a new machine came in exchange, a lower valued
Bobcat.
7.7.2.5. Summary
The next table will show the sub-branches of these buildings and give the
information about which group is the leader. It contains the residential and non-
residential buildings, the infrastructural buildings and the pipes.
2000 2001 2002 2003 2004 2005 2006
residential
buildings
59 694 124 566 141 325 159 697 185 474 170 266 192 017
non-residential
buildings
337 415 346 563 409 343 436 157 444 822 499 348 559 804
infrastructural
buildings
137 904 161 587 253 914 244 822 293 082 480 426 475 205
pipes 101 379 132 422 134 199 130 310 137 794 139 578 150 794
others 281 495 342 017 438 491 463 502 523 605 721 117 783 534
total 678 603 813 147 989 159 1 059 356 1 153 900 1 390 731 1 535 355
Figure 17.

50
2007 2008 2009 2010 2011
residential
buildings
183 171 157 740 134 541 101 158 94 808
non-residential
buildings
569 071 638 398 492 736 490 073 501 427
infrastructural
buildings
321 143 287 192 414 423 277 604 281 965
pipes 162 569 171 304 156 832 180 233 179 806
others 617 292 604 773 149 361 583 374 606 512
total 1 369 534 1 400 910 1 347 893 1 174 607 1 202 747
Figure 18.
This table has all the data in groups and shows which one of them was
the most successful during the years.
The most successful group is the non-residential buildings that did start to increase
after the crisis and it has the greatest share compared to all the others. It takes almost
the half of the total buildings and rises also, so the combination of these two factors
makes it worth to work for. And within this the industrial buildings were had the
greatest numbers that is all of the above.
In 2012 in case of the buildings versus civil engineering, the buildings fell by 7,6 %
and the rest only by 4%. [21.]
In October the buildings fell by 0,3 % compared to the same month the year before
but the others (roads, railways, wires) increased by 2,7% according to the article of
the Gazdasági Rádió online. [23.]
There is no data available according to the units of the civil engineering yet.
2008 was the best year in according to the investments in national
economy when the investments reached the amount of an almost 6000 billion of
HUF. This time the economy flowered and gave work to the contractors from the
beginning to the end. This time the Potvorszki Trans had a favorable situation and
worked on many constructions that were provided by the state. The flowering was
observed in case of the industrial buildings that helped to be profitable for the

51
partners. The amount of work was more and it could be easily split up between them
and most of them could make profit out of the constructions. This year was the
beginning of the crisis that made the good time really hard and the work became less
that had sealed the destiny of the companies and the SMEs. [19.]

52
7.3. Political and environmental factors
7.3.1. Restrictions according to the safety and controlling of
transporting
Beside the above mentioned factors there are the political issues, what are strict, and
declare taxes what can be barely paid. The permissions and restrictions to the weight
that can be carried are not changeable, so the driver has to bend his head in front of
the law.
TOLL
In the early times there was only one toll for the motorways, but things
have changed and costs become greater and they multiplied.
According to the regulation in 2007 ( 36/2007 GKM decree, 37/2007 GKM decree)
toll was prescribed for roads and highways also for the type of D2, D3 and D4
vehicles. [25.] [26.]
From March 1, 2008 another toll was prescribed for the vehicles that
drive in the capital of Hungary. The only gate to the work in Budapest is asking for
permission to drive in. These are to protect the environment from the smog and voice
that shared by the lorries and the ‘pure’ city from the poisoning gas. [24.]
In 2013 there is going to be a new toll for the future that will pour salt to the wound
and get more entrepreneur off the market. This usage-based toll will be from July 1,
2013 and gains 65 HUF per km on any kind of road outside the populated area.
ADMINISTRATION FEES
In the 261/2011 decree is about a compulsory professional management
that tells that the entrepreneur has to take part at a course and passes the exam about
law, accounting, marketing and so on.

53
7.4. Technological factors
From May 1, 2007 there is a decree related to the tachograph that says
that the manual one has to be changed for the digital tachograph that has a higher
cost and has to be built in those vehicles that are issued after 2006. [29.]
The supporting activities sheet is about counting the hours worked and the time spent
with rest, or had days off (what he was doing) and tells about the time spent between
two tachographs. [28.]
The control over the drivers can be shown by the 28+1=29 that gains the information
about the past driving hours back to the last 29 days to check. The tachographs
should be saved for one year and be carried with the driver for 29 days. [26.]
THE FINE LINE
This can be imposed because of overspeed or exceeding the time of the
allowed hours of driving that can be 400 000 HUF on place. The total weight of the
vehicle can be exceeded easily and like the weight of the axes that can be controlled
at some point such as Lajosmizse or Solt.
Furthermore, there are restrictions according to the overtaking of the
other vehicles - between 6am and 10pm. , over 7,5 tons on the motorways – is
forbidden. After this there is a rule for the trucks that over 7,5 tons they cannot be on
the road (every kind) (190/2008 decree) on Sundays and Holidays during the year
except in the summer when it is Saturday and Sunday.
There are different towns (Győr, Szeged, Debrecen…) in Hungary that do not allow
the trucks to use their streets thus the vehicles are banned. [26.]

54
7.5. Effects on transporting
There are some technological issues such as the fire extinguisher, first aid
box, blind spot mirror and table about the size of the truck and so on, they have to be
changed after a few years to be sure about its guarantee. Plus there are engines that
has the title of Euro 3, 4, 5, 6 and so on, only they are allowed to use. [29.]
To get the permission to the Budapest area takes days and further costs
that may be greater than the profit on the work. Registration is needed personally
then the clients can order the permission via internet. The needed information
includes the proper address, the carried product, for how many days they want to
spend there or ‘use the city’. The price is changing, it depends on the weight of the
and it also depends on the counties. If the drivers want a faster administration it is
more expensive and has a higher cost that is 4000HUF. It is usually arrives that day,
but is normally it is the next day that can waste precious time from the working
hours. [30.]
If the driver uses a road that is a subject to charges or violates any decree
he can easily get caught and obliged to pay. Some roads that are shorter and faster
may not be used and get the driver to choose the longer one, that will be worse when
the regulation according to the road fee (that time more roads can be ‘locked’ and
longer ones can remain open to them to win more money from the entrepreneurs).

55
7.6. Summary of negative effects
Every action requires money so there are so many cuts on the profit
The first factor is the growing number of the enterpreneurs of road transport within
the borders of Hungary plays an important role in the demand and supply that causes
the decrease of the cartage. Everyone should lower the prices if they want to get out
alive at the end of the day and have hope to survive the next with the prices that
might be enough for coverage plus a little profit.
The costs of the compulsory professional management training are over
110 000 HUF plus the GKI course is 80 000 HUF. This amount of money is
dangerous to most of the small entrepreneurs who are in a bad situation with vehicles
that are not in good condition and they rather spend the price of this course to the
machines and their repair. Some of them do not get the required knowledge over the
age of 40 because the small entrepreneurs concentrate on their work (that they
experienced) and not on a knowledge that they could live without for more years.
The values of the fees also grew during the last years plus they got
stricter. There is a point in this area that can lead to the break off of the business.
Most of the workers in the transportation industry try to do their best breaking the
rules according to the overtaking. The prescribed rules may prevent the act of
gaining more profit with the weights that can be carried, but a little overbalance can
bring more money and at the same time it will not harm anyone around. But the fine
can be more harming and can get someone’s business to death. [30.]

56
7.7. Summary
It can be seen clearly that the burdens that stress the small enterprises
makes those who want to stay alive want to improve their business and make
innovations. The way leading out of the darkness of this industry for the small
enterprises is to find the segments that grant possibilities to move and to get to more
profit. The necessary steps include the marketing activities, the implementation of
the communication and its improvement.
During the analysis of the PotvorszkI Trans I marked those areas where the presence
can be important and profitable. The results can be fresh commissions and - despite
the hard times and consequences – the development of the business.
According to the researches I have made on the constructions in Hungary
there are different options to choose to go on with the Potvorszki Trans.
The first way to go connects to the core concept of marketing; it is about to satisfy
the clients with providing something new to the customers, something unique that
they will appreciate and in what they can see the opportunity to get profit from the
business.

57
8. Strategies
8.1. Strategy Nr 1.
The work around a construction must be done from the base to the
gardening and everything concerning the pre- and post-work, not only the building.
The first job is to make the ground fit to the building and to the environment to make
it possible to build on it, and not be disturbed by anything such as the unstable
swamp and prevent the house or the building from sinking in.
This can be built into reality the following way; the Potvorszki Trans has the
machines to do the work from the beginning with the earthmovers that are used for
the post-works in the garden too. A project such as the constructions always starts
with a big earthmover and then it comes to the details that require a smaller, a more
exact machine to paint the final strokes as strict as it can be. The work between these
two movements is about carrying (in case of the Potvorszki Trans) the goods to the
place of the construction such as the material for the building and for the ground.
[32.]
Considering that the Potvorszki Trans is a small enterprise, the most
efficient way to use its skills according to these linear activities enroots in the
building of the smaller projects like residential, mostly private residential, smaller
buildings. It does not have more from one machine only one or two and is not able to
undertake a greater project because of the lack of working power. But according to
the researches, these constructions are not on the way of success and will make the
Potvorszki Trans profitable neither in the short run, nor in the long run. The amount
of the money invested and the number of the buildings tells the same about them, so
in the future, when most of the human beings talk about the next wave of the crisis, it
is not worth to orient to this field.
The investments fell in the case of the family buildings (2011-2012) by
13% that could be the target of this strategy but the share of these kinds of buildings
are not represented by a huge number; they make the smallest part of the residential
cake.
But for 2011 the money invested in these kinds of buildings, the family houses
stagnated from 2009 more than the other two kinds of houses. Two of them

58
decreased but the one that owned a smaller part of the cake diagram lowered less
than the residential park that fell back almost by the half of its total.
Only the community buildings increased for 2011 but they are out of the
consideration region. The reason why they are not in the business is that they do not
need the work concerning the garden, or this is just a little part of the work. They are
more about the buildings and the goods in bulk. Goods in bulk is good for the
enterprise but it would be only a part of the activities if this strategy will be chosen,
and that will barely let the entrepreneur have higher living standards.
The residential parks are not going to be popular during the crisis in the future and
the increase in 2012 can be just a occasionally data, that might not remain and
building on something so unsure is far from boldness but closer to an unconsidered
strategy to come through.
Plus as another reason on the other side is that there are other small enterprises
whose number just grows, some of them fail, but newcomers always find a way at
the beginning and worsen the situation and the competitiveness here.
The facts of the past and the forecasts for the future are not so favorable
so this strategy must be rejected unless the Potvorszki Trans has its clients to count
with and if they are enough to keep the business alive. But it is not this easy, because
the clients do not have that number that would be enough to run the business and get
more followers in the future.

59
9. Strategy Nr 2.
The strategy is created upon the damages, losses and the shares of the
different types of constructions. And it is about the orientation towards a special
construction branch that is in a better condition.
Looking at the statistics according to the constructions in Hungary in the field of the
civil engineering; they are in a better condition compared to the houses and other
kinds of buildings.
The ‘plazastop’ has a huge effect on the constructions in the buildings
and pushes the other buildings in front of it. The fact that the huge buildings will
decrease because of the restrictions, will provide less possibilities to those who work
in the construction industry and they will deprive the enterprises from the work it can
supply. The shopping malls have parking lots that require landscaping that can be
done by the earthmovers that means that this is a huge loss on the side of the
Potvorszki Trans. This is a proof to that the other buildings are not worth to invest
and to target because it will not change until 2014 and during the next year the
enterprise has to develop to succeed later.
The houses decreased thus they do not provide work for the small
enterprises not even when they are capable for a broader line of activities. All of
them decreased and the will keep on decreasing in the next year according to the data
from the GKI and it would equal to a suicide on the market to invest in a business
that is slipping down.
The strategy of the Potvorszki Trans is about the civil engineering branch
that had the lowest damage during the past years. They include more types of
buildings that can be targeted at the same time, because they do not require
professionals outside the engineering work, only employers that can do their job they
are experienced in. These buildings are the different in their types but they can be
involved under the infrastructural types of buildings.
The infrastructural buildings are the roads, bridges, railways, but the roads are the
most popular ones among them. The Potvorszki Trans had many contracts with those

Potvorszki Trans main

Recommended

Recommended

More Related Content

Similar to Potvorszki Trans main

Similar to Potvorszki Trans main (20)

Potvorszki Trans main