Analyzing Aurecon's Competitiveness and Sustaining Business

The assignment requires students to analyze Aurecon's competitiveness in the Singaporean market using various external analytical tools such as VUCA, Blue Ocean, and SWOT analysis. Students are expected to apply these tools along with SWOT-PESTLE and Vrio framework to help the management sustain their business for a long time. The document references several academic papers and articles that provide insights into effective strategic management practices.

Running head: BUSINESS MANAGEMENT
Business management
Name of the Student
Name of the University
Author note

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Executive summary
This report aims to shed light on the factors that can harm the ability of the management of
Aurecon to identify the external and internal factors that might bring in some challenges for the
organization. This report further shows that other analytical frameworks such as blue ocean, 7s
and vuca frameworks can be also useful to determine the factors to make strategic planning for
the company.

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Table of Contents
Introduction......................................................................................................................................3
Research questions...........................................................................................................................3
Company information......................................................................................................................3
Loopholes while applying internal and external analytical tools....................................................4
Advantages and disadvantages of porter 5 model.......................................................................4
Advantages and disadvantages of vrio analysis...........................................................................5
Advantage and disadvantages of pestle.......................................................................................5
How VUCA, Blue ocean and 7s strategies can be applied in business strategies...........................6
Comparing and constrasting Aurecon SG with its rivals...............................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
This report aims to identify and resolve the issues regarding talent management and gaining
necessary information or knowledge that are troubling the organization AureconSG to carry out
their daily business operations in Singaporean Market. The chief purpose of this report is to shed
light on the strength and possible weaknesses of the analytical model framework and tools to
identify the limitations of them to identify the macro and micro environmental advantages and
disadvantages of the business organization. In this report a research on the company along with
the industry has been executed and relevant information on the business is also incorporated.
Research questions
RQ1 how aurecon should manage its stakeholder in order to be able to increase its profitability?
Company information
AureconSG is an engineering consultancy firm that is headquartered at Australia and South
Africa. The management of the organization has also expanded their business in the market of
Singapore, New Zealand and Middle East. The operations or the services of the business
organization includes digital advisory, management regarding environmental issues along with
integrated planning to quench the needs of the numerous business organizations and the
requirements of the government.

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Gaps while applying internal and external analytical tools
This section of the report discusses the advantages and disadvantages of using frameworks
and models like VRIO, pestle and porter 5 to analyze various risk factors that AureconSG are
experiencing or will face in future.
Advantages and disadvantages of porter 5 model
Advantage
The framework porter 5 is a model that is used to get necessary information related to the
attractiveness of the organization by identifying numerous forces of the industry by knowing the
interacting among those to evaluate thelikelihood of the profitability within the industry (Albert
and Grzeda 2015).
Disadvantages
In contemporary economy there has been a major change in the market from the 80s and the
stability of the market got decreased in a significant manner. Porter 5 model has two chief
inadequacies in this regard and one of them is present in its composition. It can be said that as a
model that is static, porter 5 offers a snapshot of the industry in a wide scale and therefore it can
be used to strategize for successfully attaining the short term goals. While strategizing for the
long time, it can be said that porter 5 model will not be as helpful as it was for short term
planning (Okanga and Drotskie 2015). Secondly, it can be said that when the management of the
organization tries to apply the model to a specific business organization than on the whole
industry that is a major mistake; and for that it would be helpful for the management use SWOT
as an analytical tool (Melanderet al. 2016).

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Advantages and disadvantages of VRIO analysis
To make strategic planning to run a business organization successfully it can be said that
Vrio can be a useful tool. Vrio framework helps to get the relevant and important information to
attain the competitive advantage in a market that is steeped with fierce rivalry (Albert and
Grzeda 2015). Thus, it can be said that vrio framework helps the managements of the business
organizations to examine the internal environment to locate the resources in oder to evaluate
those. Therefore it can be said that the results attained from utilizing vrio framework can help the
management to gain the necessary competitive advantage.
Demerits of vrio framework
To identify the disadvantages of using vrio framework it can be said that while analyzing
the result breaks down into numerous segments and makes the process complex(Bertozzi, Ali
and Gul 2016). It is seen that while creating efficiencies vrio as an analytical tool does not offer
the management of the organization to relate each and every activities in a sequence that could
lead to lose the sight of how many activities of the organization can actually relate to each other.
Advantage and disadvantages of pestle
Pestle framework is important to analyze and identify the opportunities and threats that
the management of the organisation is facing in contemporary times. This framework is
important as it helps the management to eradicate the issues that are challenging for the
organisation and to develop the mode of business operation to ensure increased profitability and
productivity (Erasmus et al. 2016). Pestle framework helps the management of the organisation
to get relevant insight to get to know the macro environment. One of the major advantages of
using pestle framework is that it direct and easy to understand. Apart from these, this particular

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framework allows the managements of various organisations to notice the environmental
changes in a swift manner (Bertozzi, Ali and Gul 2016).
Limitations of Pestle analysis
To explain the limitations of pestle analysis it can be said that pestle analysis is to be done
in a frequent manner and otherwise it would not be possible to identify the small changes in the
macro environment that might appear harmful for the business organisation (Agwu and
Onwuegbuzie 2017). The evaluation of the macro environment using pestle framework should be
done in a way that is immensely critical and unbiased as otherwise it may lead to a wrong
strategic decision making by the management of the organization (Bertozzi, Ali and Gul 2016).
Apart from that, it can be said that pestle framework helps only to analyze the external
environment and does not help to gather information that other analyzing tools or frameworks
provide(Okanga and Drotskie 2015). A pestle analysis is hugely dependent on the accumulated
data of the researcher that is variable. Apart from that pestle analysis is also dependent on the
predictions and assumptions that is not always accurate(Melanderet al. 2016). Thus it can be
said that pestle analysis would not be adequate to analyze the factors to successfully run the
operations of Aurecon as well as for other business organizations.
Hence, it can be said that the managing body of AureconSg can utilize the analytical tools
like VUCA, 7s and various dynamic capability frameworks rather than porter 5, pestle and vrio
framework.

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Additional research
How VUCA, Blue ocean and 7s strategies can be applied in business strategies
7s strategy
This particular framework or strategy can be utilized for defining the soft and difficult
elements that are inherent in the management of the businesses. These elements that are difficult
can be identified and explained and the implication of those elements is a fact that can surely be
manipulated (Albert and Grzeda 2015). For an example, it can be said that the management of
AureconSg has implemented the strategies without introducing latest technologies in the
workplace that can depend on the system and the structure of the business organization. It can be
said that IT system and the formal business process of a particular organization can be tagged as
the difficult elements and on the other hand, the intangible factors that administer the business
organization can be labeled as soft elements (Melanderet al. 2016). The economists and business
analysts opines that without the presence of the hard elements a business organization would not
be able to develop further. It can also be said that the soft elements of a business organization is
also important just as the hard elements are; because the soft elements define the values and
cultures of the business organization, which are applied in the soft elements. It is seen that the
major aspects of those application of 7s strategy is that each and every element that are present in
a business organization has to be interrelated.
Thus it can surely be said that absence of any of these elements can make a business
organization crumble down to pieces and in the particular case of AureconSG it can be said that
the soft element’s implications are done as effectively as the staffs, values and skills are present
as asset of the company (Melanderet al. 2016). It can be aid that the reason behind the success

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that the management of Aurecon has achieved is because, the management of the organization
depends on the professional skills of the workforce.
Blue Ocean
The Blue Ocean strategy is applied in the business organization so that it can effectively
identify a business that experiences lesser pressure than the competitors of the organization who
are operating in the same market (Okanga and Drotskie 2015). It can also be said that Blue
Ocean identifies which business organization’s pricing strategy is not implemented in the market
of operation. It is seen that Blue Ocean’s application in numerous business organizations and
industries across the global market is significant. The utility of this strategy is not at all
restrained to any specific type of business and it can be seen as one o the major and effective
strategies that can define most of the managements of the business organizations. In
contemporary market where the rivalry is fierce, it is seen thatthe managements of the business
organizations can operate with a lot of pressure from the rival business organizations to get more
market share. The overall production of a business organization can face some challenges while
applying the pressure of the pricing. Thus this types of situations can define the ways which the
management of AureconSG can choose to fight the market pressure.
In this particular context, blue ocean strategies can provide various growth opportunities in
the market of operation and these opportunities significantly help to get more market share than
the rival organizations in the same business. In the particular case of AureconSG it is seen that
the management of the organization experiences somewhat lesser threats in the market of
operation because they are currently one of the best engineering consultancy agencies in the
market of Singapore. Apart from that, professional skills of their workforce are much superior to

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the capability of the workers of the other rival organizations operating in the same market. It is a
matter of fact that,AureconSG currently facing fierce rivalries from business organizations like
Deloitte, KPMG and PricewaterhouseCoopers that operate in the same market where AureconSg
operates. This is because the other organizations do not have the necessary resources to compete
with an organization like AureconSG.
VUCA analysis
The managements of business organizations to create a strategic leadership for the business
utilize VUCA framework. it is a matter of fact that nowadays every business organizations will
be needing to use VUCA framework to analyze the uncertainty, complexity, volatility and the
ambiguity that are present in the business operation. It can be said that inadequacy of the
predictability might be emerged from the chiefly for the presence of various external factors of
the business operation. Itcan be said that in majority times the fear to accept the reality makes the
organization to fail production wise. In this way the managements of the business organizations
can look at their present and future condition that can be analyzed utilizing VUCA framework.
Particularly for Aurecon, it canbe said that application of VUCA as an analytical tool would
help the management to to retain the competitive advantage and for an example, it can be said
that various factors that may appear to be volatile for the organization are financial condition of
Singapore and the infrastructure of the company. These isues add to the realization of the factors
of uncertainty that are present in the economy. Thus for an example, it can be said that the
financial condition of Singapore is good but there are ample chances that it may drop
significantly. Thus it would be useful to consider the factors that may contribute to the decrease
in the productivity and the profitability of the business organization. it can be said that the

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ventures full of uncertainty in which sectors the management of Aurecon needs to work on are
the changes in the laws of the country they are operating. Therefore it would be important to
diversify the products they are offering in the market and also to make sure that the policies of
the organizations are kept unchanged.
Volatility
1 Nature of change required
2 Score based on Aurecon: 3
Complexity
1 Creation of confused environment
2 Score based on Aurecon: 2
Uncertainty
1 Acceptance of uncertainty
2 Score based on Aurecon: 4
Ambiguity
1 Gain experience from the uncertainty
2 Score based on Aurecon: 5
Table 1: VUCA analysis
Dynamic capability
It can be said that the dynamic capability of the business organizations mean the ability of
the managements of the business organizations to change and sustain the basic resources of the
company. Dynamic capability might be linked with ability of the management to reconfigure,
integrate and to build the internal and external changes and level of competencies of the
organization. in the way in which the management adapts to the market of operation can very
well describe the required factors for effective management or the business organization. It is
experienced that the idea of dynamic capabilities is somewhat likewise to the notion of
operational capabilities.

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Comparing and constrastingAureconSG with its rival organization
Alpha consultancy firm that has fierce rivalry with AureconSg and currently the business of
Alpha is going pretty well in the market of Singapore. Alpha as a business organization was
established in the year of 1995 and has secured a share in the market of engineering consultancy
since then and earned a reputation in the market of Singapore. The managing body of Alpha have
utilized various analytical tools like 7s, Blue Ocean and VUCA framework to successfully
identify the internal and external factors that may harm or challenge the business organization in
future along with using analytical tools like pestle swot and vrio framework(Bertozzi, Ali and
Gul 2016). Thus it can be said that the management of Alpha gains a competitive advantage in
the market in this way and they can secure more productivity and profitability in the oddest
times.
7s as a tool
The management of Alpha engineering have applied 7s strategic tool to locate the
capabilities that the organization process along with the other competitors in the market of
operation. It can be said that the values and cultures of the business organization helps to believe
that the policies of the organization are inclined to deliver quality service and products to their
customers to achieve a good reputation in the market of operation (Okanga and Drotskie 2015).
The interrelation between all the factors of the company actually helps the management to get to
know the capabilities of the workforce and the management and it is seen that the effectiveness
of the workforce of Alpha is commendable (Mauree and Geneletti 2017). It can surely be said
that it is necessary for the management to make sure that they develop the competency of their
workers in a way so that it can help them to gain the competitive advantage over their rivals in
the market. The primary effort that the management of the organization has put in is to

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understand the intangible forces and so that the management can improve their system of doing
business. It can be said that the organization’s developing the system of doing business can
effectively help the organization to acquire the deserved recognition in the market of operation
and that can ensure the success of the organization.
VUCA
Alpha engineering has already experienced various challenges in the market of Singapore
and thus the management of the organization currently solely depends on applying the VUCA
framework to focus more on the reputation of the organization. unlike the management of
Aurecon, the management of Alpha does not have the required resources or capability but the
organization faces volatility factors significantly (Mauree and Geneletti 2017). It can be said that
Alpha’s business only operates in the market of Singapore and that gives them a competitive
advantage being a domestic company. The factor of complexity states that the way that the
management of Alpha chooses to carry out their operation. It is a matter of fact that the
management of Alpha made it harder to ensure more productivity as they are in the uncertainty
zone. The good signs are that experience can be gathered over time and in the manner they are
moving orward nowadays they will surely become a leading company in Singaporean market.
thus a VUCA framework is present on the scale of 0 to 5.
Volatility
1 Changing economic condition
Score based on Alpha: 5
Complexity
1 Nature of approaching work
Score based on Alpha: 2
Uncertainty
1 Lack of prediction
Ambiguity
1 Opportunities for recognition in the local

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Score based on Alpha: 4 market
Score based on Alpha: 5
Table 2 VUCA analysis
The above analysis shows that Aurecon is less successful in the market of Singapore due
to several factors. The Porter’s Model analysis shows that the engineering sector of Sinagpore is
extremely competitive with emergence of resident companies like Alpha. Alpha being a
Singaporean company would obviously get more preference from the government of Singapore.
Moreover, the Alpha would have more knowledge about the market opportunities (VUCA
analysis) which would allow it to make more strategically appropriate decision making compared
to foreign engineering companies like Aurecon. This analysis shows that Aurecon suffers from
several weaknesses like obtaining of preferential benefits from the government of Singapore and
limited knowledge about the market compared to the resident Singaporean companies. These
factors attribute to limited success of Aurecon in the market of Singapore compared to its
resident market, Australia.
The pricing of Aurecon is high due to several reason which can be again attribuited to its
foreign origin. First, the company operates in both Australia and Singapore which means that the
company has to pay taxes to both the governments. For example, the tax policies in Singapore,
the resident companies enjoy tax benefits like Avoidance of Double Taxation Agreement which
non-resident companies do not enjoy (Iras.gov.sg, 2018). This means that Aurecon has to pay a
tax of 30 percent to the Australian Government and another high rate of tax to the government of
Singapore. These high expenditures of taxation add to the cost of production of the company
which is expressed through its high pricing. Moreover, the cost of complying with the legal
frameworks of both Australia and Singapore (PESTLE) furthers ups the pricing of the company.

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The resident Singaporean companies like Alpha are able to keep their prices low due to the tax
concessions they enjoy from the Singaporean government. These differences of advantages
enjoyed by the Singaporean companies in contrast to the foreign companies result in the high
pricing for the latter.
The foreign companies like Aurecon are less effective, productive and efficient compared
to their resident Singaporean counterparts. As pointed out in the VUCA framework, the foreign
companies like Aurecon have limited knowledge of the Singaporean market and their high tax
expenditure add to their costs of operations. They as a result have to charge high prices for their
services to diversify their massive costs of operations. The Singaporean companies on the other
hand can keep their charges comparatively low owing their lowered cost of production due to tax
concessions. The customers in Singapore as result find the service offers of resident Singaporean
companies like Alpha more profitable. Moreover, resident companies have more knowledge
about the cultural perceptions of the client companies like Singapore. This comparison clearly
points out that the foreign companies like Aurecon are less productive and efficient in the
Singaporean market owing to their high costs of operations, limited knowledge and customer
support (Austrade.gov.au, 2018)
The organizational structural differences also attribute to the limited efficiency of the
foreign companies in Singapore compared to the resident Singaporean companies like Alpha.
The foreign companies like Aurecon have tall organizational structure as shown below
(Aurecongroup.com, 2018). The structure assigns one single line of business to control the vast
market of Middle East and Asia. This resource allocation cannot exploit the vast market of Asia
successfully. This hinders smooth decision making in terms of booming markets like Singapore
in these companies. This lack of dynamic decision making results in inefficient operations in

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foreign companies like Aurecon. They do not want to change because their tall structure actually
support their multinational operations.
Figure 1. Organisational structure of Aurecon(Source:
Aurecon can learn from foreign companies belonging to diverse industries to adapt to the
market conditions of Singapore. The company should bring about innovations in its
organizational structure and adapt to market needs. The company can also adopt the ways in
which pharmaceutical companies, of which majority are of foreign origin have adapted to Asian

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markets like India (Blue Ocean Strategies). They should use cheaper manufacturing models
adapted to the Singaporean market requirements to create new value chains. They use the
introduce products based on the clients’ requirements of Singapore and conduct analysis like 7S
and Blue Ocean Strategy as shown above.
Conclusion
It can be said that the acceptance of AureconSG is immense in the market of Singapore and
they can sustain their competitiveness in Sigapore. Applying various external analytical tools
might not help the organization to gain the necessary information and thus it can be said that
using VUCA, Blue Ocean and &s strategies might help the situation. Thus it can be said that
applying those tools along with swot pestle and vrio framework will help the management to
sustain their business for a long time.

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