Strategic and General Management (pdf)

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Strategic and General Management of Simon Construction Company
A Research Paper on Energy By
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INTRODUCTION
This research paper seeks to articulate and describe the principles of strategic and general
management of Simon Construction Limited Company. This report paper seeks to assess the
processes involved in developing a new company strategy, evaluate and analyze Simon
Company information and make informed decisions concerning the future success of the
company, and to summarize the principles of strategic and general management in the
construction company. Some of the subtopics discussed in this report include the summary of the
current strategy of the Simon Construction Company, opportunities and challenges facing the
company using simple strategic analysis, new potential strategic options to increase competitive
advantage, and recommendation for the future direction of the construction company.
Simon Construction Company is a commercial building envelope contractor that focuses
on construction management services, steel building construction, and commercial construction
services. The construction portfolio for this Simon Construction includes agricultural buildings,
sports arenas, places of worship, educational buildings, warehouses, manufacturers,
municipalities, business, veterinary clinics, outpatient clinics, professional offices, and multi-
family housing. Strategic management in the Simon Company deals with the success and long-
term direction of the construction company and covers issues that are normally of primary
concern to the top and senior management (Bennett, 2012).
Strategic and General Management of Simon Construction
The strategic and general management of Simon Construction is closely related to the
planning function of the management, and entails decisions on which aims to pursue within a
given duration, and how the objective should be attained. This decisions in this construction

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company revolve around the choices of selection goal, services, and products to be offered by the
company, and how the firm competes in its product market within the UK or globally. The
general and strategic management of Simon Construction can be characterized by three major
features. These features can be summarized as:
 A long-range exterior perception on creating innovative adaptations to the changes in the
environment which may significantly and positively affect the future of the Simon
Construction.
 Formulation of strategic change decisions which must permeate in the whole of the
company, synonymous with the management concept itself.
 A holistic approach, aiming at the totality of the well-being of the company as a socio-
politico-cultural and economic organization (David, 2010).
The process of strategic and general management of Simon Construction incorporates two
complementary aspects, majorly strategic decision making and strategic planning. Strategic
planning provides an organic flow which gives an opportunity to the strategic planning as shown
in the figure below:
Strategic management components in Simon Construction (Howes, 2010)
The five basic steps involved in the process of strategic and general management of the Simon
Construction are explained below:

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Step 1: This step involves the analysis of the existing status of the construction company in the
identification of mission of the company. This would involve an evaluation of the past and
current strategies determined through the performance of the company in the construction sector
in the UK. The mission of Simon Construction is to build its reputation through the provision of
quality work and completing the projects from the start to finish with the highest integrity
(International, 2010).
Figure 2: Strategic and General Management Process of Simon Construction (Kagioglou, 2009)
Step 2: Evaluation of the future prospect to set objectives that are long-term. This is carried out
through careful analysis of both internal and external environment of the construction company.
The internal environment majorly entails the employees working in the construction company
together with its resources. The external environment majorly entails the factors that directly or

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indirectly affect the performance of the construction company such as competitors, market, and
political stability.
Step 3: This step entails making a decision on the strategy to attain the set objectives. This is
carried out by comparing alternatives of strategic options. The set objectives of this construction
company are to building its reputation through the provision of quality work and completion of
projects from the beginning to the end (Langford, 2012).
Step 4: Implementation of the strategy. In this stage, the strategy that the construction company
has come up with after comparing alternatives of strategic options can then be implemented in
the organization.
Step 5: Control and evaluation of strategy. The performance of the strategy after its
implementation on the company would form a basis for future options of the strategy (Langford,
2009).
Challenges and Opportunities facing Simon Construction
The major challenges and opportunities facing the Simon Construction can be critically
analyzed using the SWOT strategic analysis. SWOT analysis entails identified the weaknesses
and strengths of the capabilities of the Construction company and any threats and opportunities
that may be faced by the construction company. Once all these have been identified, the
assessment on how to capitalize on the strengths, reduce the impacts of the threats, make and the
majority of any opportunities. The critical analysis begins by defining the objectives of the
construction company and identifying the external and internal factors that are critical to
attaining the objectives (Langston, 2013).

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Strengths and weaknesses are normally internal to the company while threats and
opportunities are normally external. These can be plotted in the simple confrontation matrix as
shown in Appendix 3. The following are some of the challenges and opportunities facing the
Simon Construction:
Strengths
One of the most important strengths that the Simon Construction is its reputation. This
company is one of the reputable specialized commercial construction company that is known in
the whole of United Kingdom through the provision of quality work and completion of projects
from the beginning to the end with the highest integrity. The company also has an experience of
35 years in the field of construction making it well advanced to the current building techniques
compared to the other construction companies that have recently joined the field after Simon
Construction (Langston, 2013). The Simon Construction also has a strength of countrywide
coverage with numerous branches in many cities within the United Kingdom. This geographical
coverage of the company within the country is one of its strength compared a number of other
construction companies that are only located in specific cities in the UK (Loosemore, 2012).
There are numerous construction projects that have been constructed or are under the
construction of the Simon Construction within numerous cities in the United Kingdom. Many
contractors are used to working with this construction company and are encouraging their clients
to select this construction company due to their reputation and geographical coverage. The
Simon Construction also has the knowledge of the local market. This makes it easy for this
company to compete with other local and international construction companies when it comes to
delivery of projects to satisfy the taste of the locals (Loosemore, 2014).

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Weaknesses
One of the weaknesses faced by the Simon Construction is high necessity cost resulting
cost-cutting and subsequently issues of profitability, cash and project quality issues. This is
normally as a result of the current high cost of construction brought about by the high cost of
construction equipment, this has forced the management to come up with ways of cutting the
cost. When the cost of project construction is being minimized, there is need of reducing the
quality of the project and the profit for the company. There is also some notable resistance of
some staff to changes within the organization. These changes include those that require the staff
to implement the current technologies in carrying out construction projects (Lumpkin, 2009).
The culture of complacency among some staffs and management which has resulted in
some critical strategies to be ignored or changed by the management despite these issues having
some positive impact on the performance of the company. Some of these issues include adopting
the current technologies in construction to enhance project delivery. There is also the problem of
inefficiencies to the procurement of construction projects. Numerous projects have not been
awarded to the Simon Construction due to inefficiencies during the process of procurement of
these projects by the company (Naoum, 2011).
Opportunities
One of the opportunities of the Simon Construction is the project quality improvement
through the shift to an entrepreneurial culture. The construction company can as well improve
the quality of its projects without spending on extra cost by simply shifting to the culture of
entrepreneurship. The construction company also has an opportunity of expanding its market to
the overseas market so as to cover a wider market than their competitors (Porter, 2010). Simon

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Construction which is currently based in the UK has the opportunity of expanding its market
overseas to other countries which have similar construction policies similar to those of United
Kingdom. The company can as well reduce the cost of operation through rationalization of its
structure which will results in effective management and minimization of the number of
employees also wedges (Porter, 2009).
Threats
The major threat facing Simon Construction is the decline in the market brought as a
result of a huge number of construction companies that are currently operating within the UK.
The number of construction projects has also significantly declined due to the rise in the cost of
construction in the country. The competition between the construction company with other
construction companies within the country and external companies is also fierce. This has led to
the Simon Construction failing to secure procurement some of the projects within the country.
The company is also facing current operational problems, especially with management due to
lack of effective coordination and culture of complacency resulting to change of strategies by the
management (Retik, 2011).
Potential Strategic Options
There are two new potential strategic options that can be adopted by the Simon
Construction so as to increase their competitive advantage. These potential strategic options
include the linear strategic model and adaptive strategic model. These two new potential strategic
options are explained below:
Linear Strategic Model

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In the strategic option of the linear model, the strategic management is viewed as setting
goals and making decisions which will attain the goals desired. The process of making the
decision is considered as a systematic and analytical process entailing selection of a course of
action from every alternative available and then implementing that action in a profit-oriented and
rational construction company. The following are some of the assumptions made in linear model:
 The strategic management process is done in a defined way, with every phase separated
and distinct by time lag from others.
 The top decision-makers and management are all-knowing and rational.
 Attainment of the goal is attainable through modification of construction service delivery
and markets to fit the needs of the client effectively.
 The logical strategies established by the top management of the construction company
can be explained to the employees who will readily implement the strategies and who are
considered to be rational.
 The environment can be predicted and has low effect on the strategies of the company,
hence strategies established now can be implemented will few minor changes over the
anticipated life of the strategy (Porter, 2010).
Adaptive Strategy Model
In the strategic option of the adaptive model, a strategic view advocates a complex
presentation of the construction company and the environment. This model considers strategy as
the match between the skills and resources of the company, and the environmental risks and
opportunities it faces and the goals it wishes to attain. Developing strategies and monitoring the
environment to respond to potential and current changes in it, results in action-interaction,
adaptive, short-duration realignment of the company and the environment to take place on a
frequent basis (Porter, 2009).
This strategic option may be either reactive (action was taken following changes to the
environment) or proactive (action is taken to influence the changes in the environment). The
primary basis of the adaptive strategy is the recognition of the environment as a cause of the

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action by the company. In this respect, there is monitoring of the environment and changes in
strategies made continuously and simultaneously (Retik, 2011).
Recommendation
The first recommendation for the Simon Construction is the change in management
which is of basic significance for the long-term survival of the construction company. The
system should be put in place to enable analysis and gathering of information to enable accurate
and regular monitoring of the organization for effective management. The senior management
team and CEO should effectively respond to the external drivers of change such as technical
innovation, competitor strategies, and government regulations. The improvement of performance
of the Simon Construction also depends on changing the role culture in which the staff efforts are
normally limited to tasks laid out in their work description and to the requirements of the
divisions or departments in which they operate (Robert, 2008).
A useful way of looking at criteria for evaluation is to asses them as falling into three
categories, namely, acceptability, feasibility, and suitability. These evaluation criteria are
explained below:
Suitability: One of the major aims of strategic analysis is to acquire a clear understanding of the
construction company and the environment in which it is operating. Suitability is a criterion for
evaluating the extent to which a strategy proposed fits the identified situation in the strategic
analysis, and how it would improve and sustain the company’s competitive advantage
(Schultmann, 2010). The following are some of the questions that need to be asked about the
strategic option:

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 Does it fit in with the purpose of the construction company? For example, would the
action attain growth expectations or profit target?
 How far does the strategy overcome the problems noted in the strategic analysis
(environmental threats and resource weaknesses)? For example, is the action likely to
promote the competitive standing of the company or resolve the liquidity problems of the
organization?
 Does the strategy exploit the strength of the company? Such as provident environmental
opportunities (Songer, 2012).
Feasibility: The evaluation of the feasibility of a strategy involves whether it can be successfully
implemented. The changes proposed should be achievable in terms of the resources within the
construction company. The questions that need to be asked when evaluating the feasibility
include:
 Can the necessary services and materials be acquired?
 Will the technology be available to effectively compete?
 How will the company make sure that the skills required at both operative and managerial
level are available?
 Can competitive reactions be coped with?
 Can the market options necessary be attained?
 Is the company able to perform to the level required?
 Can the strategy be funded? (Sunindijo, 2015)
Acceptability: This is the third criterion alongside feasibility and suitability. Acceptability is
related strongly to the expectations of the people and hence the issue of whom it is acceptable to
needs the analysis to be thought carefully through. The strategy performance, in this case, is
determined in terms of stakeholders, risk, and return reaction. The following are some of the
questions that will assist in the identification of the likely consequences of any strategy include:
 Will the strategy be acceptable to the environment of the company?

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 Will the relationship of the company with the outside stakeholder (customers, unions,
government, and suppliers) need to change?
 Will the function of any individual, group, or department significantly change?
 What will be the effect of capital structure?
 How will the financial risk change?
 What will be the financial performance of the organization in terms of profitability?
(Wysocki, 2011)
Conclusion
Simon Construction Company is a commercial building envelope contractor that focuses
on construction management services, steel building construction, and commercial construction
services. The process of strategic and general management of Simon Construction incorporates
two complementary aspects, majorly strategic decision making and strategic planning. The major
challenges and opportunities facing the Simon Construction can be critically analyzed using the
SWOT strategic analysis. One of the most important strengths that the Simon Construction is its
reputation.
One of the weaknesses faced by the Simon Construction is high necessity cost resulting
cost-cutting and subsequently issues of profitability, cash and project quality issues. One of the
opportunities of the Simon Construction is the project quality improvement through the shift to
the entrepreneurial culture. There are two new potential strategic options that can be adopted by
the Simon Construction so as to increase their competitive advantage include the linear strategic
model and adaptive strategic model. The first recommendation for the Simon Construction is the
change in management which is of basic significance for the long-term survival of the
construction company.

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Bibliography
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Howes, R., 2010. Strategic Management Applied to International Construction. Manchester: Thomas
Telford.
International, E., 2010. UK's Largest Companies. London: ELC International.
Kagioglou, M., 2009. Performance management in construction: a conceptual framework. Melbourne:
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Langford, D., 2009. Strategic Management in Construction. UK: John Wiley & Sons.
Langford, D., 2012. Strategic management in construction. Oxford: Blackwell Science.
Langston, C., 2013. Strategic Management of Built Facilities. UK: Routledge.
Loosemore, M., 2012. Human Resource Management in Construction Projects. Melbourne: Routledge.
Loosemore, M., 2014. Innovation, Strategy and Risk in Construction. London: Routledge.
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Free Press.
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Press.
Retik, A., 2011. The Organization and Management of Construction. Colorado: Taylor & Francis.
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European Journal of Operational Research.
Schultmann, F., 2010. Tailoring competitive advantages derived from innovation to the needs of
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Songer, A., 2012. Organization Management in Construction. Colorado: Routledge.
Sunindijo, R., 2015. Strategic Safety Management in Construction and Engineering. London: John Wiley
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APPENDIX 1: SWOT ANALYSIS DIAGRAM

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APPENDIX 2: SWOT ANALYSIS OF THE SIMON CONSTRUCTION

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APPENDIX 3: CONFRONTATION MATRIX
Opportunities Threats Total
Quality
improvement
through
shifting to the
entrepreneurial
culture
Cost
reduction
through
structure
rationalization
Expansion
into the
overseas
market
Planning
system
benefits
Current
operational
problems
The
further
decline
in
market
Fierce
competition
Difficult
economic
climate
Strength Knowledge of
local market
6 4 3 2 4 5 8 6 38
Countrywide
coverage
4 5 5 2 6 8 8 5 43
Experience;
Construction
techniques
7 3 4 5 5 5 6 4 39
Reputation 8 7 2 8 6 5 7 5 48
Weaknesses Resistance to
change by
staff
4 6 3 4 5 6 7 5 40
Procurement
inefficiencies
5 4 2 5 3 4 6 7 36
Lack of
coordination:
Fragmented
structure
3 7 4 2 4 5 6 6 37
Culture of
complacency
6 3 2 4 3 5 7 6 35