Hardvard Referencing- 2019-2020

RUNNING HEAD: HARVARD REFERENCING-2019-2020 Academic Year 0
SUPPLY CHAIN MANAGEMENT

HARVARD REFERENCING- 2019-2020 Academic Year 1
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ALIGNMENT OF SUPPLY CHAIN STRATEGY WITH COMPETITIVE STRATEGY
(A CASE STUDY OF STRABAG SE)
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Abstract: Supply chain strategy is become efficient for gaining competitive advantage and to
increase number of constructors in construction industry. The main purpose of the report is to
investigate the connection of supply chain strategy of Strabag Se Company with the competitive
strategy. This research is selected because nowadays number of organization coordinates the
strategies so that effective management of the strategies is done and effectiveness will be
maintained in the organization. The information is gathered through existing literatures and
government reports, through analysis it is find that Strabag Se adopt “Zoho inventory software”
for inventory management and other strategies are adopted for efficient supply chain
management. This is done due to reach more consumers and to provide quality services to the
customers. The study not include percentage of relation both strategies and practices have so in
future researchers will include this by raising the scope of the study. The research concludes
there is alignment between the strategies of supply chain and practices adopted to gain advantage
than that of their competitors. Further, to overcome the challenges Strabag Se can invest more in
warehousing strategy and can develop the strategy of increasing the distributors.
Keywords: Construction industry, Supply chain management, Competitive strategy
Introduction
Supply chain management is the procedure in which organizations manages the flow of goods
and services, involves the movement and storage of raw materials, of work-in-process inventory,
and of finished goods from point of origin to point of consumption (Yu et al., 2017). The
purpose of the research is to understand whether and how the supply chain strategy is aligned
with the competitive strategy in relevance to Strabag SE. It is because the company coordinates
the supply chain strategy with the competitive strategy to gain competitive advantage and to
deliver the quality results according to needs and requirements of the consumers.

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Therefore, this supply chain strategy will be efficient and responsive which can become the
major part in maintaining the effectiveness of the organizations (Cho et al., 2017). This research
topic is important for the construction industry it is because through this research other
companies can increase the capability of increasing alignment of both competitive and supply
chain strategy. This can also provide them the overview regarding the supply chain strategies
which is highly efficient and responsive in comparison to their competitors and which can
increase satisfaction. Further, the research is conducted through describing literature review,
methodology and recommendations.
Literature Review
Supply chain of Strabag SE
Researchers describes that Strabag SE is one of the largest construction companies which
provide efficient services to the consumers such as building construction, infrastructure
construction and civil engineering (Akan et al., 2017). It was founded in the year 1835 and adopt
simple supply chain procedure in which two components is determined that is information and
material flow.
Supply chain is considered the efficient strategy through which organization can increase their
revenue and raise the abilities to perform efficient in the long run (Kaushik, 2018). The objective
of the study is to investigate the supply chain procedure which is followed by construction
industry however major focus is on Strabag SE. The information gathering is done through
taking interview from the respondents and revealed that there are various activities and
participates are involved that is suppliers, manufactures, assemblers, retailers which is shown in
Fig. 1. This support the organization in increasing their revenue that is in the year 2017, the
revenue of company was $ 18 billion (Osunsanmi et al., 2019).

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Fig.1. Supply chain process of Strabag SE
SOURCE: (Osunsanmi et al., 2019)
Competitive strategy adopt by Strabag SE
The study was conducted to understand the competitive strategy which is adopted by Strabag SE
to gain competitive advantage and to expand in international environment (Papadopoulos et al.,
2016). From the analysis it is revealed that organization adopt differentiation strategy though
which the profits of the organization increased in the long run. The competitive strategy raise the
abilities of the organization to operate in highly competitive environment, through this
organization can adopt various different policies so that loyalty among the consumers will be
increased (Benachio et al., 2019). The results will receive through taking the survey from the
respondents so that their responses will be recorded. From the investigation it is revealed that
Strabag SE adopt differentiation strategy in which expand their operations by providing different
quality services such as facility management, infrastructure construction etc (Toufani et al.,
2018). The differentiation strategy is dopted by Strabag SE by adopting the unique software for
transportation so that supply of the product to target cousmers is done in efficient manner such as
company adopt Zoho inventory for transporting the product. The company also use this strategy
by providing unique components of services differentiation thatis by adopting various principles
which include desired ideas about the project, meeting the demand of the consumers according to
the requirement.
From the investigation it is also revealed that 60% of the capability of Strabag SE is also
increased due to adopting different procedure of supply chain in which material flow involve