Analysis of Organisations' Business Environment and Construction Industry

Strategic Management In Construction and Property Enterprises
Name
Date
Table of Contents:
Executive Summary.................................................................3
1.0 Introduction.........................................................................4
2.0 Analysis of the Organisations Business Environment and of Industry
Survival and Success Factors.......................................................4
2.1 PESTEL Analysis...............................................................5
2.2 Porters Five Forces.............................................................8
2.3 Survival and Success Factors...................................................9
3.0 Appraisal of the Reliance Infrastructure Limited Strategy....................10
3.1 Resources and Capabilities...................................................10
3.2 Business Model Canvas.......................................................11
Conclusion..................................................................12
References...........................................................................12
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Executive Summary
In this report we will see how there are several factors that affect the survival and success of business. Thus,
the purpose of the report is to understand the major environment factors that helps the business to drive
the operations into a successful venture. According to the survey, construction industries are the most profit
making industries worldwide, and they are important in infrastructure development. This industry plays role
in economic growth of the country, and that’s why it’s called as sector of economy. The basics of any
construction company is known as planning, designing, construction, alterations, maintenance, repairing
works, and also the demolishing buildings.
Construction and Property Enterprises are divided into three categories. Construction projects consist of
three types of projects like residential projects and construction, non-residential projects and construction,
and engineering projects. Residential projects include home, housing projects, and building garages. Non-
residential construction include small and large buildings, churches, hospitals, schools and stores.
Engineering projects include bridges, roads and constructing the reservoirs. Let’s understand the things in a
more elaborative way.
Introduction
For a better understanding of Effects of Macro and Micro Environmental Factors, we will be considering one
type of industry as an example, which will help us understand, and in the analysis of Macro and Micro
Environmental Factors. Especially for in-depth knowledge of the investigation, and effects of the Macro and
Micro Environmental Factors in the Construction and Property Enterprises, we need to go through one
example cum case study. That's easy to get the right knowledge about the effects of those two variables. So,
let's take an example of one Company, and analyse how the Macro and Micro Environmental Factors affects
it at different levels. For ease of understanding, we are choosing one Company, which is a property industry,
or we can say that it's the real estate industry. Our Company for studying this is Reliance Infrastructure
Limited R-Infra.
The purpose of making this report is to understand the strategies that are followed by the Reliance
Infrastructure Limited (R-Infra). How they decide any strategy, how the implement them according to the
situations, and their strategies work. We have created some of the framework like PESREL analysis, porter’s
five forces to analyse the strategies of this company, and also to understand the macro and micro factors.
We can analyse the Macro factors by analysing the outside conditions, and climate of the market. To
understand the Micro factors, which are controllable by the company can be analysed based on evaluation
of companies’ resources, human resources, and capitals.
2.0 Analysis of R-INFRA Business Environment and Survival & Success
Factor.
2.1 PESTEL Analysis:
PESTEL is basically an acronym that stands for Political, Economic, Social, Technological, Environmental and
Legal environment. This tool is used widely for analysing and monitoring the macro-environmental factors
that possess a deep impact on the performance of the organization. However, PESTLE analysis is very helpful
for those businesses that are new in the market and are looking forward to entering the foreign market.
Politi cal
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The political factors determine the interference of the government in your business. Every type of
government policy, government regulations and rules affect the working of an organization’s operations.
Thus, every business has to thoroughly understand the political environment prevailing and conduct things
accordingly.
Economic
The economic factors used to determine a country’s economic policy that includes economic growth,
exchange rates, interest rates, and several other rates. Basically, the economic factors have an impact on the
purchasing power of the consumers and therefore, it also affects the demand/supply model of the economy.
Social
The social dimension of the environment constitutes the social norms, customs, and values of the population
like growth rate, age distribution, and cultural barriers and so on. Secondly, it shows the willingness of the
person to work under dynamic social conditions and therefore, is considered very vital for conducting
business in an ethical way.
Technological
With the changing market scenario, technological innovations also affect business operations in almost every
industry. Technological factors include innovation, automation, and technological changes that are
important for any organization to adopt in order to create a sense of technological awareness.
Environmental
These types of factors are quite recent add-ons in the market and gained importance due to increasing
concern about the scarcity of raw materials and other ecological aspects like weather, climate, and
environmental fluctuations as well. Moreover, the companies because of the environmental concern are
more into corporate social responsibility and sustainability.
Legal
Well, legal factors may often overlap with political factors, but the legal aspect says that the company or the
organization must know what is legal and ethical to trade. That is the reason the businesses have the legal
advisor for their concern to conduct every operation in a legal and ethical way. The legal factor includes
discrimination laws, consumer protection laws, copyright laws and other patent laws as well.
Critical Analysis of Macro Environmental Factors
As we already discussed, Macro Environmental Factors are those factors which work entirely from the
outside of the organization. Here, in Reliance Infrastructure Limited (R-Infra) the factors that are affecting
the most to the net revenue of the Company are Climatic Conditions, Materials and availability, Technology,
Location, Economic Conditions, Politics, Clients, and Public.
Political and Legal laws that affect the most, it changes in the supply of human resources, health sector,
contract, budget etc.
Government Businesses are nationalized industries, where it reduces the chances of getting a new contract
for Private companies.
Economic Conditions, new and old commercial rules by the country's government affect the Financial
Management, and financial growth of the Company.
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