Building Construction and Sustainability

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This assignment delves into the crucial relationship between building materials and sustainability within the context of residential construction. Students are tasked with evaluating various material combinations used in homes, considering their environmental impact and contribution to global warming mitigation. The analysis should encompass current industry trends and incorporate a discussion on the evolving landscape of sustainable building practices.

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Running head: INTERNSHIP PROGRESS REPORTS
Internship progress reports
Name of the student
Name of the University
Author note

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1INTERNSHIP PROGRESS REPORTS
Executive summary:
This business implementation report is meant to state various strategies on behalf of the Paramount
Development ltd. the strategies is expected to help the Paramount Development ltd overcome issues,
which has been highlighted in the previous pilot research performed during the Applied Business
Research Project. Besides this, the report is aimed to provide various practical and theoretical tools to
describe the threats and opportunities in front of the firm. In addition, the report has highlighted the
expected outcome of the strategy implementation and assessment of the risk and opportunity through
the usage of the practical and theoretical tools. The report has found that timber frame houses are
popular in New Zealand due to their cost effectiveness and lower upkeep cost as well as lower time of
construction. However, people of the Auckland do not consider timber frame houses beneficial and
sustainable option for the large construction likes multi-storeyed building, office complex and others.
According to the expectation, if the managers of the firms can utilise the tools mentioned in this report,
then it will guide them to have raw data regarding the market demand of the goods and services of
Paramount Development ltd. and besides this customer feedback. Analysing these available data, the
firm can easily judge their present market situation and forecast the future business trend on behalf of
the firm. To conclude it can be said that, if the firm operates according to the strategies mentioned, it
can get sustainability as well as profitability to. In addition the practical and theoretical tools will guide it
to assess the risk and opportunities properly for addressing the sustainability of the firm.
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2INTERNSHIP PROGRESS REPORTS
Table of Contents
Introduction:...............................................................................................................................................3
Business implementation strategy:.............................................................................................................3
Reducing misconception with pre sales process:....................................................................................4
Excelling in customer service:.................................................................................................................4
Innovation benchmarking:......................................................................................................................4
Revamping the construction and procurement process:........................................................................5
Marketing mix:........................................................................................................................................6
BPR planning:..........................................................................................................................................6
Hassel free maintenance framework:.....................................................................................................7
Time management and quality assurance:..............................................................................................8
Looking into the sustainability potential:................................................................................................8
Tools to address business problems and Opportunities:.............................................................................8
SWOT analysis:........................................................................................................................................9
Porter’s Five Force analyses:.................................................................................................................10
Monitoring and control:........................................................................................................................11
Analysis of Key factors for success:.......................................................................................................11
Expected outcome from the selected tools:..............................................................................................12
Conclusion:................................................................................................................................................13
Reference:.................................................................................................................................................15
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3INTERNSHIP PROGRESS REPORTS
Introduction:
Recent development in the construction of timber frames as well as the paradigm shift of the
human need for cost effective means of living along with the regional, social and environmental reasons
has given stimuli to the timber frame construction services (Gibbs & O’Neill, 2015). When it comes to
timber frame house construction, then New Zealand is one of the countries that has largest customer
base. With the ever increasing demand for the timber frame houses in the country, various firms has
germinated since 1980s in the country’s economy, which are providing excellent services to satisfy the
demand of the customers (Flexner et al., 2015). Among them, one of the prominent players in the
market is Paramount Development LTD. It is one of the fastest growing timber frame producer in the
New Zealand. With experience of more than 17 years in the field of timber frame construction, it is
service most of the customers in the Auckland region and providing considerable amount of share in the
country’s GDP ("Paramount Pacifix Property Development Limited - business information", 2018). Not
only this, the organisation has been generating employment for most of the people in the Auckland
region as well as conveying above average class service to their customer, making itself one of the best
firm in the country. However, according to applied business research project it can be seen that though
there is substantial rise in the demand of the wooden frame houses; there is considerable amount of
rigidity in the case of large projects. As the applied business research project suggests, people from the
New Zealand believes that there is considerable amount of risk in the large wooden houses and
buildings due to the fact that New Zealand is located in an earthquake prone are (Rahimian et al., 2017).
However, abundance of the large timber stock has influenced the history of the timber houses in the
country. Since 1980, there has been substantial rise in the demand of the timber houses in the country
due to excelling importance of the timber frames and its potentials. For instance, it has been seen that
timber frame houses cost less and besides this, it is easily moveable in the case of the earthquake
(Diyamandoglu & Fortuna, 2015). This business strategy report is meant to analyze and propose
prospective strategies in order to make the business more lucrative. In addition to this, the report will
highlight practical as well as theoretical tools to assess the problems and opportunity in front of the
business. Besides this, the report will provide outline regarding the expected return from the selected
practical and theoretical tools.
Business implementation strategy:
Considering the finding of the pilot research done in Applied Business Research Project, business
implementation strategies for the Paramount Development ltd. are as follows:

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Reducing misconception with pre sales process:
Historically there is misconception regarding the quality, sustainability and durability of the
houses made out of wooden frame; however, in present day, engineered wood has changed the whole
scenario (do Vale, Abreu & Marques, 2016). According to the pilot research done in the Applied Business
Research Project, more than 41% of people from Auckland believe that timber houses are good to live.
However, one major issue still persist is that, most of the respondents believe that timber houses are
goods option for small housing and it is not suitable for large projects (Rabbat, 2017). Thus Paramount
Development ltd. needs to bring in promotion plan and provide more and more resource on their
website regarding the usage and benefits of using timber wood frames. Both online and office value
assessment tool and promotion through books, media magazines would be ideal.
Excelling in customer service:
One of the major concerns found from the research regarding the Paramount Development ltd.
is that quality of service is essential factor that influence the customers (Kotler, 2015). Thus, the firm
need to excel in their customer service. Moreover, customer feedback analysis and performing the sales
process according to the figure 1 will be beneficial for the firm. It will help the firm to ensure service
quality and time will also be maintained. Attracting, customers with the offers and lucrative contract
options can be proved to be beneficial for the firm.
Figure 1: timber house sales process
Source: (Kararić & Završki, 2012)
Innovation benchmarking:
Innovation is the key factor that gives any organisation sustainability, durability and profitability
both in the long run and in the short run. Pilot research on the Paramount Development ltd. highlights
that there is lot of scope in front of the Paramount Development ltd. to do. For instance, with innovative
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5INTERNSHIP PROGRESS REPORTS
mechanism of manufacturing the wooden frame house, the firm can bring in production efficiency and
reduce the time and cost of production too.
Revamping the construction and procurement process:
Figure 2: Suggested revamped procurement and construction process
Source: (Kararić & Završki, 2012)
Figure 2 highlights the proposed revamped production and construction process for the
Paramount Development ltd. If the firm implement the proposed structure, then it will guide the firm
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6INTERNSHIP PROGRESS REPORTS
from inception of the project to its completion (Ahmadian et al., 2015). It is expected to reduce time and
cost of production and provide much needed freshness in the industry to attract more customers.
Marketing mix:
Considering the condition of the Paramount Development ltd. as highlighted in the previous pilot
research, implementing marketing mix strategy is highly essential. It will help the firm to putting the
right goods and services at the right place. Marketing mix strategy for the Paramount Development ltd is
as follows (Helm & Gritsch, 2014):
Product:
Timber houses are tangible product, which has its own characteristics. The firm need t highlight
the same and promote it to the customers in such a way that it provides an appeal to them.
Price:
Pricing is important for any product; and so does in the case of timber wood houses too.
Considering the market condition of the Auckland, where the Paramount Development ltd operates it
can be stated that the firm need to set aggressive pricing policy if they want to establish monopoly
power (Tomczak, Reinecke & Kuss, 2018).
Place:
As the initial operating place the Paramount Development ltd operates in Auckland. However, it
is advised that the firm enhance its operation and go beyond the local boundaries because expanding is
the key element for the success.
Promotion:
Promotion as mentioned earlier, should be one of the main strategies for the Paramount
Development ltd because it will lead them to new customers and reduce the misconception of the
prospect buyers regarding the scope of timber houses (Carter, 2017).
BPR planning:
Business Process Reengineering or BPR is one of the useful strategies for the firms like Paramount
Development ltd. to bring in growth while solving the persistent problems in the industry (Chen, Yang &
Tai, 2016). According to the pilot research, the firm lacks in the case of large project and has
sustainability issue if there is lack of wood in the country. Using the BPR framework as mentioned in

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7INTERNSHIP PROGRESS REPORTS
figure 3, the firm can bring in parity in their work and go beyond their limit of small projects in Auckland
area.
Figure 3: BPR framework
Source: (Kararić & Završki, 2012)
Hassel free maintenance framework:
The pilot research report has showcased that time is one of the main factor that leads the
customer towards the wooden frame houses. Thus it is utmost important for the Paramount
Development ltd. To reduce the time of production and maintenance, otherwise larger amount of time
can drag the customer to substitute product or to the rival, considering the rival firm can provide service
in less time (Vanus et al., 2017).
Figure 4: maintenance framework
Source: (Kararić & Završki, 2012)
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Considering the figure 4, maintenance framework of the firm can be revamped in this way. It will
not only promote hassle free service, moreover reduce the time of service largely while addressing all
the requirement of the client (Kararić & Završki, 2012).
Time management and quality assurance:
Time and quality are the major factors that influence the timber houses as mentioned by the
pilot research. Thus reducing the time of production utilizing the proposed revamped production
strategy and ensuring quality with durability will make the Paramount Development ltd. sustainable.
Looking into the sustainability potential:
Timber houses are advantageous in nature due to the fact that recycling, reuse possibility is
higher and the waste generation potential is comparatively lower than the concrete houses. Besides
this, the pilot project has mentioned that the prefabricated housing has ability to reduce the cost of
customization as well as up keep cost is comparatively lower (Korhonen et al., 2016). However, one of
the major concerns is availability of the raw materials in long run; in case of scarcity the cost of these
houses can god sky high leading the business to shutdown. Thus, Paramount Development ltd. needs to
focus on the sustainability frontier and introduce ‘buy back’ policy to recycle and re-fabricate the old
timber houses for re-usage; it will bring in sustainability and waste management potential for the firm
(Lindblad, Schauerte & Flinkman, 2016).
Tools to address business problems and Opportunities:
Paramount Development ltd. is a growing organisation, which has been servicing the people of
Auckland since past 17 years. However, once the firm allows the above mentioned strategies to
implemented in the work frame of the firm, then the business scenario of the organisation is ought to
change. In that scenario, addressing the risk and the opportunity in front of the Paramount
Development ltd. is necessary for proper and smooth implication of the strategies as well as provide the
firm sustainable growth in future (Slovic, 2016). Considering the firm’s environment, mode of operation
and business cycle it is advised that SWOT analysis and Porter’s Five Force analysis practical tools will be
beneficial on behalf of the firm to assess their threat and opportunity (Anton, 2015). Coming to the
theoretical tools, it will be beneficial for the firm to consider analysis of key factors for success along
with the monitoring and control mechanism analysis to address the opportunity and risk. Theoretical
and practical analysis of the business problems and opportunities for the Paramount Development ltd.
are as follows:
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SWOT analysis:
SWOT is tool, which is being used by the business managers to assess the strength, weakness,
opportunity and threat on behalf of their firm (Bull et al., 2016). This practical tool for threat and
opportunity assessment is being widely used by various industries due to their simple framework, easy
implementation and cost effective features (Santos & Laczniak, 2015). Using the SWOT framework,
mangers of the Paramount Development ltd. can perform survey and assess the present market
scenario on behalf of the firm and take necessary steps to reduce the threats while enhancing the
opportunity. SWOT analysis of Paramount Development ltd. is as follows:
Strength:
Observing the growth of demand of the timber wood frame houses along with considering the
result from the pilot research done earlier in Applied Business Research Project, it can be stated that,
the firm has high potential to grow in coming days. Besides this, monetary assistance provided by the
government is providing much amount stimuli to the firm, which is proving to be beneficial (Maxwell,
Woods & Robinson, 2016). Moreover, input cost is lower for the firm due to abundance of wood in the
Auckland area, which has helped the firm to earn higher amount of profit. Along with this, lower labour
cost is helping the firm to attain higher profit compared to the rival firms in other regions (Dorn et al.,
2017).
Weakness:
Though presently there is abundance in raw materials for the timber wood frame production, it
can be stated that due to lack of plantation programs, the firm is expected to face higher input cost.
Opportunity:
Wooden frame houses are one of the trending businesses in New Zealand (Potter et al., 2015). If
the firm can come up with latest design discontinuing their old models that provides an appealing touch
with cost effectiveness, then the firm can be a huge hit in coming days. Growth rate over the last five
years for the firm is consistent and it has been raising at a steady rate that highlight the firm has
potential to grow subject to introduction of new products and services. For instance, the firm can
involve itself in large projects and make the customer aware of the same through promotion (Birchmore
et al., 2017).
Threat:
Considering the trend of wooden frame demand in New Zealand, various new firms are opening.
It can reduce the market share of the firm and lead it to earn only normal profit compared to the
present situation of supernormal profit.

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Porter’s Five Force analyses:
Porter’s Five Force analysis is another practical tool for addressing the risk and opportunities for
the firms. Using this tool of competitive analysis managers of Paramount Development ltd. can trace the
threats due to new entrants and viability of future growth while judging the bargaining power of the
producer and buyer simultaneously (Dobbs, 2014). Besides this, Porter’s Five Force framework will aid
the firm to perform the analysis of buyer’s bargaining power, seller’s bargaining power and rivalry
among the existing firm. Depending upon the intensity of these various forces determine the expected
level of profit on behalf of the industry. Forces of the Porter’s Five Forces model are inversely related
with the price and profitability of the firm (Brege, Stehn & Nord, 2014). For instance, if there is high
amount of competition among the firms then it can act as the threat in front of the firm, while lower
amount of threat will lead to ease of doing business with higher amount of profit. Thus, banking upon
this practical tool for threat assessment will aid the firm to decide how much scope it has and the
magnitude of the threat in front of the firm. Porter’s Five Force analysis of the Paramount Development
ltd. is as follows:
Buyers’ bargaining power:
Bargaining power of buyer depends upon the goods and services the firm is providing. Besides
this availability of the service provider largely affect the bargaining power on behalf of the buyers.
Considering the variables of buyer’s bargaining power, it can be stated that Paramount Development
ltd. faces substantial amount of buyer’s bargaining power due to the fact that, availability of substitute
goods and services is largely available in the market. Besides this Paramount Development ltd. operates
in an oligopolistic market, which allows the buyers to shift their preference from one supplier to another
supplier easily (Birchmore, Roger & Tait, 2015).
Seller’s bargaining power:
Considering the Auckland market structure of timber frame, it can be stated that Paramount
Development ltd. has sufficient amount of bargaining power. However, it is also true that due to the
oligopolistic market structure; the firm fails to influence the market completely with price alteration
(Porter & Heppelmann, 2014). Besides this, brand preference is another factor that harms the firm’s
bargaining power. Coming to the positive side it can be state that the firm operates in Auckland area,
where large number of buyers of timber frame believes it is safer, time and cost effective mechanism for
living, which provides the firm substantial amount of bargaining power (Su, 2016). Along with this, if the
Paramount Development ltd. can bring in new technology to provide sustainable multi-storeyed building
out of timber frame, it will give them high bargaining power due to their uniqueness in service.
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Threat from new entrant:
There is always threat from new entrants in the market. Paramount Development ltd. operates
in the Auckland, where the market is oligopolistic in nature. If the number of service providers increase
in market, it will hamper the market share of the existing firm. Thus, the threat level from new entrants
is high in front of the Paramount Development.
Threat from substitutes:
Substitutes of the timber frame houses are widely available in New Zealand, however according
to the pilot business research done earlier has showcased that 41% of people believe that timber frame
houses are worth for living compared to the houses made out of concrete houses. Thus, the threats
from substitute are lower in front of the Paramount Development ltd (Birchmore, Roger & Tait, 2015).
Rivalry among the competitors:
Paramount Development ltd. operates in Auckland of New Zealand, where the market is
oligopolistic in nature. However, the number of buyers is limited in this area that makes the rivalry
among the competitors high (Porter & Heppelmann, 2014).
Monitoring and control:
When it comes to risk assessment, then monitoring and control is one of the most important
element for every organisation. Systematic monitoring of various stages of the production and
controlling the same can give an organisation competitive edge by reducing the cost of production,
reducing the wastage level and bringing in higher efficiency (Stacey, 2016). This process is mixture of
utilisation of theoretical and practical ways for assessing the risk. For proper monitoring and controlling
of the Paramount Development ltd, mangers need to chalk out the feasible ways to determine how
smoothly the above mentioned strategies can be implemented. Feedback formation along with bringing
technological changes in the organisation and gathering data of customer demand and firms
productivity can aid the firm to assess its risk and opportunity (Hasan et al., 2015). Judging the gathered
data, if any risk and opportunity are observed, then the mangers can alter their production or marketing
or the whole business framework to provide the firm sustainability and ability to withstand demand as
well as supply shock.
Analysis of Key factors for success:
Timber frame construction business has different characteristics, depending upon the nature of
the project (Cuadrado et al., 2015). Thus, to analyse the risk and opportunities is necessary to provide
the firm sustainability; and analysing the key factors for success, the firm can be able to achieve the
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same. Analysis of the key factors for success can be done in three parts, which are as follows (Kararić &
Završki, 2012):
Sales phase:
Determining the value of sales
Provision of investment of the client
Production phase:
Preparing the action plan prior to initialising the task
Arranging all the required inputs
Coming up with quality finished work
Quality control
Post sales phase:
Providing maintenance service
Feedback from customer
Depending upon the information gathered, Paramount Development ltd. can assess their market
demand and threat observed in the Applied Business Research project earlier easily. Besides this, the
firm will be able to judge how well the new strategies have been implemented and the post
implementation of the strategies can also be judged using these above mentioned practical and
theoretical tools.
Expected outcome from the selected tools:
The pilot research work done earlier in the Applied Business Research Project has showcased
that there is optimistic response from the users of timber frame houses. Most of the people has
highlighted that timber houses are more preferable than the concrete houses or other available mode of
living in New Zealand. The report has also portrayed that timber frame houses are huge hit due to their
cost effectiveness and lower upkeep cost as well as lower time of construction (Marsono & Balasbaneh,
2015). However, one of the major concerns that have been conveyed by the people of the Auckland
regarding the timber frame houses is that, they still do not find it beneficial and sustainable option for
the large construction likes multi-storeyed building, office complex and others. This business
implementation report has provided strategy to address this issue and previously it has mentioned
various theoretical and practical tools to judge the implementation of the same. If the mentioned
strategies are implemented properly, then through the use of above mentioned risk assessment tools,
Paramount Development ltd. can envisage higher business opportunity along with greater amount of

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bargaining power. Besides this, the practical tools will give them opportunity to collect raw data from
both the manufacture’s point of view and the buyers’ point of view for assessing (Rothaermel, 2015).
Analysing the same, theoretical tool will aid the firm to highlight the present situation on behalf of the
firm and showcase its sustainability. Small housing industry of New Zealand is the targeted market for
the Paramount Development ltd. thus with the strategies mentioned above will help the firm to bring in
more profitability as well as sustainability. With the SWOT analysis, Paramount Development ltd. can
assess the present market scenario and identify the loopholes in their operation. Business is a never
ending process that evolves over the time depending upon the customer demand, subject to availability
of the technology, resource and capital. Thus, utilising the SWOT tool, Paramount Development ltd. will
have the scope to find their opportunity to enhance their business even after implying the new
strategies (Madhavaram, Hunt & Bicen, 2017). Porter’s Five Force analysis will guide the firm to address
their level of bargaining power and threats from new entrants. Moreover, it will aid the firm to judge
whether there is any risk in case of substitutable product become available in the market and portray
the bargaining power of the buyers. Using these practical tools, Paramount Development ltd. will
become able to assess the risk and opportunity of the firm and collect raw data to perform analysis
(Dalken, 2014). Theoretical tools like managing and control and assessment of key success factors plays
crucial role in any business. It will help the Paramount Development ltd. to address what more need to
be done once the new strategies are implemented to address the risk of the firm. Opportunity frontier
of the firm can be explored with greater amount of penetration rate and the magnitude of success will
be much higher in case of utilising these tools. Monitoring and control will aid the Paramount
Development ltd. to check how well the new strategies are being implemented and assessment of the
key success factors will help the firm to find out the feedback and chalk out the proper plan for
construction in further works (Grant, 2016). Utilising this tools, the firms can also assess how well they
has mitigated the risk and weakness found in the Applied Business Research Report; leading the firms
towards sustainability.
Conclusion:
This business strategy report was meant to analyse and provide various strategies to address the
issues of timber frame houses found through the Applied Business Research Report. Besides this the
report has been made to provide various theoretical and practical tools to address the implementation
of the new strategies and another section has portrayed the expected outcome of the new strategies.
The report has chalked out various strategies to mitigated the issue of the Paramount Development ltd.
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14INTERNSHIP PROGRESS REPORTS
and provide the firm a revamped business model in order to cope up with the evaluating small housing
industry of New Zealand. The report has found that, though the Paramount Development ltd. operates
mainly in the small timber housing project, if it can bring in new services, then it would be beneficial for
the firm. For instance, the report has suggested that if the firm can produce multi-storeyed building and
indulge itself into the large projects, then it would bring in more profit and market controlling power to
the firm. The report has found that though the time of constructing timber frame houses is considerably
low compared to other housing options, it would be beneficial to bring in new technologies that can give
the efficiency in production, reduced cost of operation as well as reduced time of construction. One of
the major concerns for the customer of Auckland is durability of the timber houses; thus the firm need
to provide durable houses and let the customers aware of its durability to reduce the misconception
while enhancing the demand of the same. The report has mentioned practical and theoretical tools to
assess the implementation of the strategies mentioned at the initial stage of the report and portrayed
expected return from the same. According to the expectation, if the managers of the firms can utilise
the tools, then it will guide them to have raw data regarding the market demand of the goods and
services of Paramount Development ltd. and besides this customer feedback. Analysing these available
data, the firm can easily judge their present market situation and forecast the future business trend on
behalf of the firm. To conclude the report it can be said that, timber housing is one of the rising industry
and most of the people who have used it are fond of it. Due to its cost and time effectiveness and easy
maintenance, timber frame houses are widely popular around the world and in the case of New
Zealand; abundance of the wood and low labour cost has acted as stimuli for this business. If the firm
operates according to the strategies mentioned above, it can get sustainability as well as profitability
too.
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