External and Internal Environment Analysis of Aurecon in Singapore

Running head: BUSINESS MANAGEMENT
Business Management
Name of Student
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Author Note

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BUSINESS MANAGEMENT
Table of Contents
A. External environment analysis..............................................................................................2
Identifying correct industry....................................................................................................2
PESTEL analysis....................................................................................................................2
Porter's five forces..................................................................................................................3
Industry life cycle curve.........................................................................................................5
Needs of the customers...........................................................................................................6
Efficiency...............................................................................................................................7
Expertise.................................................................................................................................8
B. Internal environment.............................................................................................................9
Strategic capabilities...............................................................................................................9
VIRO....................................................................................................................................10
SWOT...................................................................................................................................11
C. Confrontation matrix...........................................................................................................12
D. Conclusion...........................................................................................................................13
Bibliography.............................................................................................................................14

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BUSINESS MANAGEMENT
A. External environment analysis
Identifying correct industry
Aurecon is an architecture and engineering company that have made plans to design
and elevate skyscrapers. However, based on the analysis of the statistics provided, it can be
said that Auroon does not play major parts in engineering consultancy services in Australia. It
does not provide environmental services and in the country. Some of the major competitors
of the company include ALS Limited, SGS Australia Holdings Pvt Limited and so on
(Aurecongroup.com 2018). Hence, making a move for expansion in a foreign land
particularly in Asia can be a challenging factor for the company. The report highlights the
challenges that Aurecon may face in the markets of Singapore.
PESTEL analysis
Political- According to Navarro-García, Arenas-Gaitán and Rondán-Cataluña (2014),
the political environment of Singapore is not hostile, and the state does not interfere with the
affairs undertaken by the organisations in the country. This can be a huge opportunity for
Aurecon to establish its business.
Economic- The characteristics of the economic condition of Singapore can be made
with its openness and the manner in which the country possess the ability to be a good
financer for organisations. The stable growth of the economy can allow Aurecon to have a
steady growth in the market.
Socio-cultural- The analysis of the socio-cultural factor of Singapore shows that the
country has a good amount of talents and skills in the economy (Lim 2018). It includes
proper understanding and knowledge of the engineering that may help the company to gain
success.

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BUSINESS MANAGEMENT
Technological- This is one of the biggest threats to the company, as in the modern
world technology is an important factor. The need for manual labour is more in the industry
and thus, it is essential to hire people with proper technical expertise.
Environmental- Herbet et al. (2014) stated that the environment of Singapore is one
of the best in the world. The Government and legal rules apply for the protection of the
environment. This can be a threat to the company, as construction sites may emit threat to the
environment.
Legal- Some of the areas in which Aurcon may face threat are the legal issues
protecting the environment. Apart from this, the legal laws of Singapore provide
opportunities for high growth in the market. To do so, sustainability needs to be a focus of
Aurecon.
Thus, based on the PESTEL analysis, it can be concluded that the external factors of
Singapore are favourable for Aurcon. This is because the company can be benefited by the
richness of economic growth and the talents that the country have. In the future, the growth of
technology can help the company grow more in the economy. Hence, a technical expertise
team is required for growth (Herbet et al. 2014). The important elements that affect the
external analysis include the rate at which technology can grow in the market along with the
opportunities that may befall Aurecon in the economy of Singapore. These two elements can
help in determining the success and growth of the company in Singapore.
Porter's five forces
Threat of new entrants- According to Gilbert (2015), the threat of new entrants in the
markets of Singapore can be considered to be medium, as Singapore is open to negotiating
with a business organisation that brings about economic growth. Hence, engineering and
construction industries with potential can have a significant impact on Singapore. The key