International Business Organisation Management Discussion 2022

Running head: INTERNATIONAL BUSINESS ORGNISATION MANAGEMENT
INTERNATIONAL BUSINESS ORGNISATION MANAGEMENT
Name of the Student
Name of the University
Author Note

INTERNATIONAL BUSINESS ORGNISATION MANAGEMENT1
Introduction
The engineering and construction industry consists of various companies that are
engaged in construction of civil engineering projects, utility, construction of industrial plans
and commercial buildings (Gunduz and Yahya). The engineering and construction industry is
of huge importance for every country as it highly contributes to the economy of the country
from providing employment to constructing commercial building which is important.
However, it can be seen that the engineering and construction enterprises strive to achieve
competitive advantage in order to make a progress. This paper will focus on the factors that
will help construction enterprises to gain competitive advantage over their competitors in the
market..
Discussion
The engineering and the construction industry are one of the most developed
industries all across the globe because of the high demand by governments and even private
companies which helps the industry to mostly flourish (Ariffin et al.).However, there are
some issues that the industry faces.
Challenges faced by the engineering and construction enterprises in United
Kingdom
The construction industry in the United Kingdom is considered to be valued at around
£ 112.2 billion (Statista). However, in recent times, it can be seen that the engineering and the
construction industry have been facing issues due to the insolvencies in the sector that has
resulted in many investors in a dilemma whether to invest on the construction companies and
are also withdrawing their contracts. The reasons are the following:

INTERNATIONAL BUSINESS ORGNISATION MANAGEMENT2
Increase in competition
Offshore competition has become fierce and due to this the profit margins in the
United Kingdom are decreasing. According to reports, the construction enterprises in UK are
finding it tough to reinvest in their employee development due to low cash flows which has
resulted in poor engagement and productivity (Zhao et al.). This can highly hinder the
construction enterprises to expand their business and operate in internationally because of the
poor performance.
Questionable performance
The construction industry in the United Kingdom has a poor reputation for falling
behind and being slow on the project. According to reports, there are many half-finished and
outdated government housings and delayed upgradation in the rail services which has led to
the construction enterprises have a reputation for being slow and sluggish (Chen). With this
kind of reputation it has hard for engineering and construction companies to neither consider
expanding their business nor gain a competitive advantage in the market.
Shortage of labor
The workplace ethics and the expectations of the new generation are highly different
in comparison to the traditional workforce. The senior managers show lack of confidence in
them which has led to many eminent employees leave organisations which has been creating
a dearth for talented and skillful employees. Shortage of high skilled labor is going to become
a huge issue and restrict engineering and construction enterprises to provide high quality
construction which will affect their business and gain them a negative reputation in the
market.