Diagnosing the Causes of Organisational Challenges: A Case Study of Aurecon Singapore

Running head: MANAGEMENT IN PRACTICE
Management in Practice
Assignment 1
Individual Report - Diagnosing the causes of the organisational challenge
Student’s name:
Name of the university:
Author’s note:

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Executive Summary
This report sheds light on the causes of organizational challenges from internal and external
environments. Organisations misunderstand the mission, misunderstand the strategies, they face
lack of team cohesion and lack of resources as well. In this report, Aurecon Singapore has been
chosen for analysis. Aurecon is in management engineering consultancy company and it has a
market in education, aviation, construction and health and data telecommunication. Last five
years, this engineering consultancy industry has not been on growth track. However, by the end
of 2020, Aurecon is expected growth in the company as Singapore is in stable economy and
company is offering projects. In order to analyse the external environment, theoretical
frameworks like PESTLE, Porter's Five Forces. Industry Life Cycle and performance objectives
of management engineering industry have been explained. These explanations clear the view that
revenue volatility is medium, life cycle stage is mature, barriers to entry medium, industry
globalization are medium, the competition level is high and the regulation level is heavy in this
industry. Internal environment has been judged through SWOT, VRIO framework, Value chain
analysis and strategic Capabilities of Aurecon. Aurecon faces the challenges of high competition
in the market, capital intensity and industry consolidation as many global companies come to
Singapore. It also faces the issue of lack of trained employees, value proposition and cultural
incompetence.

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Table of Contents
Introduction......................................................................................................................................3
Overview of the Aurecon.............................................................................................................3
A. External Environment analysis...................................................................................................4
a. PESTEL analysis.....................................................................................................................4
b. Porter’s five forces analysis.....................................................................................................5
c. Industry Life Cycle Curve.......................................................................................................7
d. Customers’ needs regarding operational performance............................................................8
e. Aurecon’s offerings to the performance objectives.................................................................9
B. Internal Environment................................................................................................................10
a. Strategic Capabilities.............................................................................................................10
b. VIRO Analysis.......................................................................................................................11
c. SWOT Analysis.....................................................................................................................12
d. Value chain analysis..............................................................................................................13
C. Confrontation Matrix................................................................................................................15
D. Problem Statement and challenges of the organisation Aurecon.............................................16
E. Conclusion.................................................................................................................................17
Reference List................................................................................................................................19
Appendix........................................................................................................................................22

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Introduction
This report integrates management theories with practice and it equips with skills and
knowledge necessary for an organisation to be successful. This report draws upon the concepts,
tools and applications to broaden the awareness of external and internal environment of an
organisation. The aim of the report is to highlight the external and internal factors that an
organisation can face and subsequently re-define the management challenges in short and long-
term basis. In this report, Aurecon Singapore has been chosen to show the external and internal
environmental analysis. Management issues of Aurecon organisation are highlighted and the
issues of the organisation can be solved through a combination of management practice and
theory. This report is mainly based on secondary data of government reports, industry reports
and organisational websites.
Overview of the Aurecon
Aurecon brings ideas to design a better future for mankind and they try to imagine what
is possible. Aurecon tries to turn problems into a solution. Aurecon is an engineering, designing,
planning, management and project management organisation. Aurecon is private organisation
and it was founded in the year 2009. It has delivery centres in more than 27 countries and it has
80 offices across the globe. CEO of the organisation is Giam Swiegers and Aurecon has been
doing notable projects in major parts of Asia. Revenue of the organisation was AUD 900 million
dollars in 2016. Numbers of employees in the organisation touched 8000. Aurecon provides
advisory, delivery and asset management services across a range of markets (Aurecongroup.com
2018).

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A. External Environment analysis
Aurecon is in management consultancy industry.
a. PESTEL analysis
The political factors that can affect construction project and building designing are
regarding the documentation and permits which the companies have to obtain in various stages.
In Singapore, Government is robust on the impact of eco-system in construction project and
government wants price must be competitive. Singapore government does not impose a new tax
that may result in a change of the revenue generation. The political condition of Singapore is
stable to flourish the business. Opportunity for construction engineering industry as Singapore
economy is flourishing and high-technology in Singapore is also boosting up.
Singapore economy is referred to as the most open in the world and it is helpful for pro-
business. Current GDP of Singapore is US$ 305 billion and GDP growth is 5.3%. The inflation
rate is Singapore is 0.4% and more than 4 million people are in labour force. In building
designing and construction projects, the demand can touch US$ 20 billion by the end of 2020
and it was US$16 billion in the year 2016 (Straitstimes.com 2018). Opportunity in construction
engineering is that Singapore has third highest per capita income economy, therefore, people can
spend more on construction and other projects.
Socio-cultural factors scrutinise the community and market factors. In Singapore, people
spend lavish lifestyle as disposable income of the people is high. People as consumers change
their preference in Singapore. Distribution of wealth in Singapore shows the figure of 0.426 and
literacy rate is 95% (Straitstimes.com 2018). The threat in construction engineering is that

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Singapore is exposed to communal violence frequently that sets the cultural and social harmony
back foot, it can lead to stoppage of projects.
Singapore has comprehensive infrastructure sect up and it is technologically advanced.
Construction of project and building design needs technology help and technology is making
changes in the construction industry in Singapore as high technology sector in Singapore is
enhancing its quality. Therefore, construction and project industries are observing development
with a standalone system. Most of the companies in this industry are moving towards
electronically advancement and it can bring opportunity. In Singapore, many of the high-
technology companies are making its branch as people are literate and they want to spend more
on R&D.
In Singapore, societies have strict legal norms and Singapore constitution is followed by
all. Corruption level is lower than most of the countries as Corruption Perception Index is 9.2 out
of 10. Employee policy favours the firms in Singapore and Singapore has SPRING Singapore to
follow the Standards, Productivity and Innovation Board (Tremewan 2016). Singapore has
Competition Commission and companies must follow the competition rules.
In construction engineering, the environmental factor is very important as projects must
not damage the environment. Singapore has tropical climate and rainfall can be observed
throughout the year. Therefore, the threat is associated with construction companies as they need
to use extra security for rains and designs can be influenced by this. Singapore is the member of
Environmental Performance Index (EPI) (Rodan 2016).
b. Porter’s five forces analysis
Threat of new entrants