Strategic Management in Construction and Property Enterprises

Strategic management in construction
and property enterprises
1

Contents
TASK 1............................................................................................................................................3
Analysis the strategic management to construction industry......................................................3
Inherent challenges in the formulation and implementation of strategic management...............4
TASK 2............................................................................................................................................4
Introduction..................................................................................................................................4
Background..................................................................................................................................5
Literature Review........................................................................................................................5
Conclusion.................................................................................................................................12
Recommendation.......................................................................................................................12
REFERENCES..............................................................................................................................15
2

TASK 1
Analysis the strategic management to construction industry
Strategic management is based on the systematic approach in major term and increasingly
important responsibility of general management. This is related to the construction industry and
its environment in a way which will ensure its continued success, make it secure from business.
Usually, strategic management is concerned with deciding on the specific strategy and
planning how strategic approach is to be put into certain effect. For Example- Kier Group Plc.
should be considered the strategic management process such as goal-setting, analysis, strategy
formulation, implementation and strategy monitoring.
Gather and analyse construction information- it is one of the important step in which
information gained and accomplishing vision of construction industry. Mainly, it is focused on
the analysis and understanding the needs of business as sustainable entity (Akhmetshin and et.al.,
2018). It provide strategic direction and identifying initiatives that will help construction
business in context of growth or development.
Formulate a diversification strategy- in this process, it reviews the information gleaned
from completing analysis tasks. Sometimes, it also determine the essential resources where
business currently has that can support to reach its goals and objectives.
Implement Strategy- Successful strategy implementation is consider as critical success
factor in context of construction business. This is helping to implement suitable action and
develop a new structure, culture. Everyone within construction industry must be made a clear of
duties, responsibilities. This is completely fits in with entire goal or objective.
Evaluate and Control- strategy evaluation, action control should be consider a proper
performance measurement. This will help to review both internal as well as external issues,
making corrective actions. Construction companies are identified the progress by measuring an
actual result or outcome through strategic plan.
3

Inherent challenges in the formulation and implementation of strategic management
At the time of formulation and implementation of strategic management, Construction
industry face a challenging barriers such as lack of consensus, lack of relation between strategic
content and process, poor coherence between planning and resource allocation.
On the basis of analysis, it has been identified the barriers that are found and need to take a
certain action. Most of the challenges in formulation and implementation of strategic
management can be resolved by strategic plan, if in case enterprise failed to realised the
anticipated advantage because of challenge in formulation and implementation (Alfaro, Yu and
Kabeya, 2019).
The challenges are those factor obstruct, prevent and block in the process of strategy
implementation. Thus, it is very hard for the construction company to achieve its desirable goal
or objective.
TASK 2
Introduction
Strategic management is based on the process or method which is primarily formalizing,
long-term planning and implementing about the construction enterprise future goals or
achievements. Strategic approach is consider as an action that managers take to attain one or
more enterprise goals. This report will discuss about the diversification strategic concept in
context of Construction Company. Analysis of enterprise and based on the resource view of
strategy. Critically analyse the viability of diversification strategy for selecting enterprise and
considering finding on the basis of internal analysis. Furthermore, it will describe about the
implementation strategy and examine how diversification strategy will be implemented.
However, Discuss about the Kier group as multi-national construction company, focus on the
discussion related to the activities in UK country.
4