Quản lý kinh doanh xây dựng CONSTRUCTION BUSINESS MANAGEMENT

CONSTRUCTION
BUSINESS
MANAGEMENT
PhD. Thu Anh Nguyen

CHAPTER 2
CONSTRUCTION BUSINESS
STRATEGY & STRATEGIC
PLANNING


CHAPTER 2
CONSTRUCTION BUSINESS
STRATEGY & STRATEGIC PLANNING
REFERENCE
1. Chapter 4, Business Organization for Construction, Chris
March, 2009, Taylor & Francis.
2. Chapter 5, Construction Business Management, Nick B.
Ganaway, 2006, Elservier Ltd.


LEARNING GOALS
Key learning goals:
1. Definition and levels of strategy
2. The general strategic management process
3. Strategy analysis
4. Indentify, select, and formulate the strategies
5. Formulating business level strategy
6. Strategy implementation and monitoring
7. Six types of crisis in a business
8. The contingency plans to solve these crisis problems

9. Examples


Strategy and Strategic Planning
-What is strategy?
• Strategy formerly refers to planning and managing an
operation for a particular purpose such as in a war.
• A business’s strategy is the pattern of decisions and
actions that are taken by the business to achieve its
goals.
• A business may have a variety of goals or objectives,
but for many businesses, the major goal is to improve
performance so that profits increase through designing
and implementing strategies.


Strategy and Strategic Planning
-What is strategy?
What is our current situation?

What do we want future situation to be?

What might inhibit us?
What actions should we take to
accomplish our objectives?


Strategies in Brief
COMPANY

STRATEGIC PRINCIPLE

America Online

Consumer connectivity first—anytime, anywhere

Dell

Be direct

eBay

Focus on trading communities

General Electric

Be number one or number two in every
industry in which we compete, or get out

Southwest Airlines

Meet customers’ short-haul travel needs at fares
competitive with the cost of automobile travel

Vanguard

Unmatchable value for the investor-owner

Wal-Mart

Low prices, every day

Source: Arit Gadiesh and James Gilbert, “Frontline
Action,” Harvard Business Review, May 2001, p. 74.


Strategy and Strategic Planning
-What is strategy?
Assessing strengths
and weaknesses

Strategy Planning
PROVIDES

Analyzing the external
environment
Forecasting the future
Selecting objectives
and action plans


Strategy and Strategic Planning
-What is strategy?
Create a strategic
management mind-set

Strategy Planning
PURPOSES

Reduce risk while

improving profitability
Improve decision
making
Basic for managing the
company


Strategy and Strategic Planning
-Levels of strategy

(Chris March, 2009)


Strategy and Strategic Planning
-Levels of strategy
Type of strategy

Brief explanations

Examples of such a strategy

Functional strategy

Strategies of the functional level
developed to improve the efficiency of
a business operations. It is also called
operational strategy.

Marketing strategy
HR strategy

Production strategy
R&D strategy
…

Business strategy

Plans a company uses to gain
competitive advantage over
competitors in a market. It is unlikely
that a company can serve an entire
market all the time. Therefore a
company must decide which parts of
the market to aim at and how to be
different from competitors.

Cost leadership strategy
Differentiation strategy
Focus strategy
Withdrawal strategy
Market penetration strategy
New product development strategy
….

Corporate strategy

Strategies aimed at the long-term
development of the organization. For
example, a company may consider
where it will be in 10 years time and
how it manages to get there.

Internal development strategy
Takeover and merger strategy
Strategic alliances
….


Strategy and Strategic Planning
-Strategic Planning Process
• Strategy of a business needs to be well
planned. Well-planned strategy is key to
success. How to plan a strategy is an
important issue to study.
• Generally speaking, there are a number of
common stages when a business plans a
strategy, which is illustrated in the following
table:


Strategy and Strategic Planning
-Strategic Planning Process

(Nick B. Ganaway, 2006)


Strategy and Strategic Planning
-Strategic Planning Process

(Chris March, 2009)

Strategy and Strategic Planning
-Strategic Planning Process

(Nick B. Ganaway, 2006)


Strategy and Strategic Planning
-Strategic Planning Process

(Nick B. Ganaway, 2006)


Strategy and Strategic Planning
-Strategic Planning Process

(Nick B. Ganaway, 2006)


How to Test the Quality of Your Strategy
 Does your strategy fit with what’s going on in the
environment?
 Does your strategy exploit your key resources?
 Will competitors have difficulty keeping up with you?
 Are the elements of your strategy internally
consistent?
 Do you have enough resources to pursue this strategy?
 Can your strategy be implemented?

(Michael Crandall, The University of Washington)

Stage 1. Vision and Mission
• A vision statement tells people
–
–
–
–

Where we want to go
What we want to become
What we want to accomplish
Why it is important

• And a mission expresses the organization’s:
– Purpose - the needs we exist to address
– Business - what are we doing to address these
– Values - what principles or beliefs guide our work


Stage 1. Examples of Mission Statements
APEX ELEVATOR
To provide a high-reliability, error-free method for moving people and products
up, down, and sideways within a building.
UNITED TELEPHONE CORPORATION OF DADE
To provide information services in local-exchange and exchange-access markets
within its franchised area, as well as cellular phone and paging services.
JOSEPHSON DRUG COMPANY, INC.
To provide people with longer lives and higher-quality lives by applying research
efforts to develop new or improved drugs and health-care products.

GRAY COMPUTER, INC.
To transform how educators work by providing innovative and easy-to-use
multimedia-based computer systems.


Stage 1. Vision and Mission in
Construction
• Speculative housing and/or general and civil
engineering contracting or a particular part that is
active in generating work?
• Is the company concerned with providing a
quality service or product?
• Does the company want a zero accident culture?
• Does the company wish to move to being known
as ‘an environmentally friendly’ business?
• Does the company wish to minimize the time
spent making good faults after handover?


Stage 1. Vision and Mission in
Construction
• Many companies lose their way when their
mission objectives are unclear or wrong.
• There are well-known examples in the retail
trade
• The railway business in the USA had a problem
because they saw their business as being the
railway business rather than transporting
people and products.

Stage 1. Vision and Mission in Construction
Bechtel - the world's No. 1 choice for engineering,
construction, and project management.
VISION

VALUES

• To be the world’s premier
engineering, construction, and
PM company.
• Customers and partners will
see us as integral to their
success.
• People will be proud to work at
Bechtel.
• Communities will regard us as
responsible—and responsive.

• More than 100 years and continue
• Ethics. Uncompromising integrity,
honesty, and fairness are at the
heart of our company.
• Excellence. We set high standards,
advanced technology, improve.
• Fair Return.
• Mutual Respect: openness,
teamwork, and trust.
• Safety. Zero accidents
• Sustainability.

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