Construction Company Management

This report analyzes the problems and opportunities faced by Bluestar Construction Ltd, the current structure of the company, the present culture and financial status of the company. It determines the strengths, weakness, opportunity and threats faced by the company. Further it formulates the strategies and the execution plan for the company in order to outbid the competitors and maintain its competitiveness.

Running head: CONSTRUCTION COMPANY MANAGEMENT
CONSTRUCTION COMPANY MANAGEMENT
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CONSTRUCTION COMPANY MANAGEMENT
Executive Summary
Bluestar is a construction based company. It plans to focus on private, education and commercial
contracting. It desires to improve the overall profitability of the company. The company is facing
stiff competition in the market, therefore, it plans to review its business structure and bring forth
the necessary change that are required in order to maintain its competitiveness in the industry.
The report analysis the problems and opportunities faced by the company, the current structure
of the company, the present culture and financial status of the company. It determines the
strengths, weakness, opportunity and threats faced by the company. Further it formulates the
strategies and the execution plan for the company in order to outbid the competitors and maintain
its competitiveness.

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CONSTRUCTION COMPANY MANAGEMENT
Introduction
Bluestar Construction Ltd is is a construction company that earns its profit by offering
construction services and the provision of building. The company offers building and
construction services in South Australia, Queensland, New South Wales and Australian Capital
Territory. It undertakes construction works for health and education projects, residential,
government and for commercial purposes. The company has successful operated in the past years
working on the small and large contraction sites. The company plans to improve the overall
profit structure for the company by shifting its target company from the residential clients to
wider commercial and health or education purposes. This business plans frames out the goals and
objectives in order to formulate and execute the goal successfully. The company also plans to
create more market share in order to success in the competitive market environment.
Company summary
The company offers highest standards of operation for its wide range of clients all across
the country. At present the company plans to focus on the complex construction process along
with the real estate development, retirement services and capital management (Balogun et al.
2016). The company has seen steady expansion in the past years and hence the company desires
to continue its commitment towards best quality, innovation in the architecture and focus on
teamwork. Further, it plans to continue to deliver new and innovative standards in the top quality
business to business as well as community focused solutions for its wide range of clients and
business partners.

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CONSTRUCTION COMPANY MANAGEMENT
The company shares common values such as delivering value by focusing on their
commitment towards integrity, teamwork, safety, innovation and quality. Bluestar Construction
Ltd maintains strong ethical values while delivering its services. The company values reputation
for transparency and believes highly in accountability (Bhagavatula and SuccessFactors Inc
2015). While focusing on the strong ethical culture of the company, it also gives high importance
to safety in the working area and construction sites. It creates a healthy and safe working
environment and safety measures in the work environment for the employees of the company,
the communities and for the clients. It is also a part of the culture of the company to continue
progress in environment and break new ground, find better ways and being high resourceful
while undertaking projects. According to Brook (2016), they prefer to stand out from the
competitors, think differently and undertake calculated risks. Quality and team work is also
considered to be important for the company. They take initiative to build friendship, help other
employees and take extra credit by delivering the best possible results for its clients and partners.
The structure of the company contains basic functioning units that are the HR, Marketing,
Financial, Project and Engineering department (Fewings and Henjewele 2019). These
departments are headed by the General Manager and the board of directors. The financial
department of the company is responsible for handing the cash inflow and outflow. The HR
department is responsible for recruiting and training the staff. As mentioned by Lawson Ogden
and Goodier (2014), the Project department is responsible for scheduling and managing the
project of the company. The engineering department is responsible for planning the project and
the marketing department is responsible for marketing activities for the company. The company
has only small amount of dept and therefore it plans to see increased profits by shifting its focus
on new targets.

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SWOT Matrix Analysis
Strengths of Bluestar Construction Ltd - Internal strategic factors
Bluestar Construction Ltd has a strong brand portfolio, which is extremely useful for the
company if it wants to expand into new product categories. It was mentioned by McKenzie
(2015), the company has a high level of customer satisfaction with the customers with good
brand equity among the potential customers. Further, the company has a strong distribution
network for reaching to the potential market. There is a highly skilled workforce in the company
which is an added advantage for the company. They have the capability to invest huge resources
in training and development for its employees for motivating its employees. They consider
innovation as their main priority as well as their continuous focus on quality.
Weakness of Blue star Construction Ltd - Internal strategic factors
The company lacks demand forecasting and is unable to effectively utilize the inventory
in house and in the channel. The company fails to merge with the other companies having a
different culture in the organization (Fewings and Henjewele 2019). There is fastest change in
the external business environment; there are changing needs and demands of the customers. The
company fails to focus on its research and development therefore it becomes unable for the
company to compete with the leading companies in the industry in respect to innovation. The
products and services that are brought out are based on the tested features in the market place
(McKenzie 2015). The company offers lack of choice to the customers, as there are gaps in the
product range that is offered by them.

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CONSTRUCTION COMPANY MANAGEMENT
Opportunities for Bluestar Construction Ltd – External strategic factors
The government is offering free trade agreement which provides the company an
opportunity to enter into a new market. The cost of transportation is decreasing which is also an
added advantage for the company because of the lower shipping cost and it can lower the cost of
the company. It can boost the profitability of the company and also benefit the customers to gain
market share. Having a stable free flow of cash can provide opportunity to the company to invest
in the product segment (McKenzie 2015). Through online channels the company can acquire
new clients and the advancement in technologies can provide an opportunity to Bluestar
Construction Ltd to practice a differentiated pricing strategy in the new market.
Threats for Bluestar Construction Ltd – External strategic forces
There is intense competition in the market; therefore, it can reduce the profitability of the
company. In the past years the number of players in the industry has increased which has put
pressure on the company. The competitors in the markets pay higher margins to the local
distributors. The competitors are bringing in new c=innovation in its offerings and this pose a
threat to the company (Botha and Robertson 2014). There are new market regulation which also
posses to be a threat to the company.
Strategies and execution plan
By bringing in new innovation in the products and services it plans to market itself. The
primary way to overcome the threat of stiff competition in the market is by lowering the cost and
managing a better project management. As mentioned by Voordijk et al. (2016), the company
plans to increase the number of suppliers and distributions and have a strong connection with

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them, this is the way the company can obtain its materials at lower costs. The company plans to
achieve a low cost leadership role in the market.
The company plans to market its offerings through variety of commercial
associations, publishing in commercial construction trade magazines, leveraging the pre existing
contacts along with the local real estate companies. It was mentioned by (Lawson Ogden and
Goodier (2014), the company further plans to offer its services, designs, project timeline,
material quality and costs. The best combination of the variables will enable the company to get
a contract. Therefore, the company needs to keep its focus on detailed project panning, labor
needs, subcontractors, presentation, supplier agreements and other necessary factors which are
crucial in the winning contracts (McKenzie 2015). The company will be planning a standardized
method with the contractors while highly focusing on quality, low cost and timeliness. This will
enable the company to outbid the competitors. The company expects the sales level to be much
higher by gaining market share. Further, the company plans to expand its personnel as the
number of project increase. The company plans to keep its focus on haring job superintendents
and other project managers for executing its business activities (Voordijk et al. 2016). The
company also anticipates a significant increase in the profit for the company by penetrating the
new market. The company plans on basing dividend payouts on the health of the company and
its overall performance. It also plans to retain its earnings for the future growth of the company.
Conclusion
Therefore, from the above analysis, it has been identified that the Bluestar Company
plans to focus mainly on the complex construction process in the highly competitive business
environment. The company plans to focus on quality by focusing on innovation in the

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architecture and teamwork. The company plans to focus on their commitment towards integrity,
safety, innovation and teamwork. The business plan has analyzed the strengths, weakness,
opportunity and threats that are faced by the company in the business environment. Further, the
report formulates the strategies and the execution plan for the company. It plans to focus on
innovation and provide varied options to its customers. This will help to overcome the stiff
competition in the market.

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References list
Balogun, O.A., Nazeem, A. and Agumba, J.N., 2016. Determinants Predicting Credit
Accessibility within Small and Medium-Sized Enterprises in the South African Construction
Industry. Procedia engineering, 164, pp.473-480.
Bhagavatula, R., SuccessFactors Inc, 2015. Risk-based test plan construction. U.S. Patent
8,997,052.
Botha, M. and Robertson, C.L., 2014. Potential entrepreneurs' assessment of opportunities
through the rendering of a business plan. South African Journal of Economic and Management
Sciences, 17(3), pp.249-265.
Brook, M., 2016. Estimating and tendering for construction work. Routledge.
Clough, R.H., Sears, G.A., Sears, S.K., Segner, R.O. and Rounds, J.L., 2015. Construction
contracting: A practical guide to company management. John Wiley & Sons.
Cohen, D., Crampton, J., Gagarin, A., Gutin, G. and Jones, M., 2014. Iterative plan construction
for the workflow satisfiability problem. Journal of Artificial Intelligence Research, 51, pp.555-
577.
Fewings, P. and Henjewele, C., 2019. Construction project management: an integrated
approach. Routledge.
Lawson, M., Ogden, R. and Goodier, C., 2014. Design in modular construction. CRC Press.
McKenzie, D., 2015. Identifying and spurring high-growth entrepreneurship: Experimental
evidence from a business plan competition. The World Bank.

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Voordijk, H., Walker, D.H. and Lloyd-Walker, B.M., 2016. Understanding the motivation and
context for alliancing in the Australian construction industry. International Journal of Managing
Projects in Business.