Organizational Strategy

This presentation explores the importance of organizational strategy and its impact on Balfour Beatty, a multinational construction entity based in the UK. It covers macro environmental factors, industry position, internal resources and capabilities, stakeholder perspectives, and concludes with the significance of organizational strategy in achieving short-term and long-term goals.

Organizational
Strategy

Table of content
• Introduction
• Macro environment factors
• Industry position
• Internal resources and capabilities
• Stakeholder perspectives
• Conclusion

Introduction
Organisational strategy is the set of policies which are formulated
by an organisation to attain long term organisational goals. It is
very important for the company as it provides direction through out
the way of success. The enterprise which is selected for this report
is Balfour Beatty which is a multinational construction entity
mainly based in United Kingdom.

Macro environmental
factors
Macro-environmental Factors
are those which help in
conducting an external analysis
of the environment in which a
business operates.

Continued
Political: Political factors are those which relate to the extent to
which a government and its policies may impact the operations of
a business and the industry in which it operates.
Economic: An economic factor is one which is responsible in the
determination of aggregate demand and investment in a country.

Continued
Social: Factors such as emerging trends, culture, demographics
impact the operations of the Balfour Beatty. Apart from this, they
also shape the work culture of the company.
Technological: These include rate of technological innovation and
development which impacts a business.

Continued
Legal: It is important to keep in mind the legal implications that
actions of an organization may have on the business as well as the
environment in which they operate.
Environment: These factors specifically include the surrounding
environment and other ecological aspects such as sustainability or
waste disposal which impact the operations of a business gravely.

Industry Position
The construction industry is one of the most diverse sector ranging
from mining, quarrying, forestry activities to construction,
manufacture and supply of products including their maintenance,
operation and disposal. In 2017, the Construction Sector in the UK
accounted for 7% of GDP (UK Construction Industry. 2019). In
past five years, the industry has experienced uninterrupted growth.
This sector is divided into three categories viz. Commercial &
Social, Residential and Infrastructure.

Internal resources
and capabilities
Internal resources and
capabilities: These are the elements
which are used by business entities
to execute business operations
effectively. In order to assess all of
them companies such as Balfour
Beatty can use VRIO model.

Continued
Resources
and
capabilities
Valuable Rare Inimitable Organised
Profitability ✓ ✘ ✘ ✘
Brand value ✓ ✓ ✘ ✘
Human
resource
✓ ✓ ✓ ✘
Market
image
✓ ✓ ✓ ✓

Continued
Valuable: All the four resources resources and capabilities profitability,
brand value, human resource and market image are valuable for the
organisation because all of them helps the Balfour Beatty to execute its
business appropriately and make sure that it generates higher revenues.
Rare: Profitability of the organization is not rare because any other
company can generate the same revenues as Balfour Beatty is acquiring.

Continued
Inimitable: Brand value of Balfour Beatty is not inimitable
because any organization can establish same brand image by
offering such services to the clients which are offered by the
company.
Organized: Human resource of Balfour Beatty is not organized
because employees can leave the organization for other growth
opportunities.

Stakeholder
perspectives
There are various stakeholders in Balfour Beatty and all of them
are its members due to different reasons. For this purpose it is vital
to understand their perspectives. An analysis of their interest
within the organization is as follows:
Customers: All the people who acquire services of Balfour Beatty
require that organization should deliver them value with the help of
disciplines contracting process.

Continued
Shareholders: Shareholders of Balfour Beatty has a perspective that
organization provides them higher dividend on their funds. It helps to
retain them as shareholders in the company.
Subcontractors: All the subcontractors of Balfour Beatty have a
perspective that organization deliver value to them and foster strong
relation with them so that both the parties can attain long as well as
short term business goals.

Continued
Suppliers: All the external parties who are delivering material to
Balfour Beatty have a perspective for the organization that the
amount of credit is paid by it on time and company also believes in
establishing good relations with them.
Community: Community have a perspective for Balfour Beatty
that its productivity benefits society by enhanced infrastructure,
creating employment opportunities and other societal welfare

Continued
Employees: Workforce of Balfour Beatty believes that the company
is providing them good working environment where they can work
effectively and contribute in the attainment of organizational goals.
They have a perspective that executives in the organization provides
them opportunity to put efforts to achieve their personal goals and
acquire career growth. The entity believes that it should provide a
safe and inspiring place to work so that employees can give their full
efforts to execute business operations.

Conclusion
From the above discussion it can be concluded that Organisational
Strategy is one of the key determinants of how a business performs
and reacts to its internal as well as external environment. This is
due to the fact that organizational strategy is the sum total of all the
actions that are executed by an enterprise to achieve its short-term
and long-term goals.

References
Cserháti, G. and Szabó, L., 2014. The relationship between success
criteria and success factors in organisational event projects.
International Journal of Project Management. 32(4). pp.613-
624.
Pasquinelli, C., 2014. Branding as urban collective strategy-
making: The formation of NewcastleGateshead’s
organisational identity. Urban Studies. 51(4). pp.727-743.

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