Al Nawaf Construction: Strategies, Planning, and Succession Case Study

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This case study analyzes Al Nawaf Construction Company, focusing on career planning and development to ensure skilled human resources. It explores strategies for achieving competitive advantages, including cost leadership, differentiation, and strategic alliances. The study also outlines a three-step approach to developing a succession plan, identifying key positions, finding the best fit for those roles, and developing a comprehensive training plan. The analysis emphasizes the benefits of career planning, competitive strategies, and succession planning for Al Nawaf Company, leading to improved human resource management, market positioning, and operational continuity.
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Running Head: AL NAWAF CASE 1
Al Nawaf Construction Company Case Study
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AL NAWAF CASE 2
Al Nawaf Construction Company Case Study
Career Planning Program
To begin with, a well-organized career planning and development within Al Nawaf will
ensure the availability and development of human resources with the relevant skills, talent and
knowledge. In turn, this will enable the company to run smoothly as the workers will possess the
required skills for their jobs. In addition, a career planning program will ensure the
implementation of favorable policies and work practices. In turn, it will improve the
organization’s ability to attract as well as retain skilled and talented employees. Noteworthy, an
organization with a well-structured career plan is able to boost its image in the employment
market and, as a result, attract and retain highly skilled and competent workers (Human Resource
Management, n.d.). Furthermore, career planning will contribute individual and organizational
development, and hence help in the achievement of corporate goals for the company.
Moreover, a proper career planning program will work towards the development of a
system that tries to satisfy employee expectations. Consequently, it offers a comfortable
environment for its workers and minimizes employee frustration. Aside from that, career plan
helps the organization to protect its employees’ interests and, therefore results in the promotion
of organizational goodwill (Human Resource Management, n.d.). Indeed, the introduction and
implementation of a sound career program will be very advantageous to Al Nawaf Company.
Strategies for Competitive Advantage
In order to gain a competitive advantage over other construction firms, the Al Nawaf
Company must develop sound strategies. To achieve this goal, the firm must adopt business-
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AL NAWAF CASE 3
level strategies that will help it gain an upper hand in the market. These strategies may include of
cost leadership, differentiation and forming alliances.
Cost leadership
Al Nawaf may adopt the cost leadership strategy to compete for customers based on
price. Particularly, the firm may provide reasonable value for the services they render at a lower
price compared to that of its competitors (Amadeo, 2017). In this strategy, the firm must make an
effort to reduce its costs relative to rivals in order to be a price leader (Amadeo, 2017). This may
be attained through implementing a tight control over production costs, minimize overhead costs,
reduce cost of sales and shrink the budget on research and development.
Differentiation
The organization may also gain a competitive advantage through differentiation. In this
strategy, the firm may offer its customers greater value by offering unique services to its clients
(Rouse, n.d.). Mainly, this is achieved through provision of high quality features, rapid product
innovation and advanced technological features (Amadeo, 2017). By so doing, Al Nawaf will be
able to lower its buyers’ costs, raise product performance and improve sustainability.
Consequently, this will give the firm a competitive advantage over rival construction companies.
Alliances
Al Nawaf can also gain competitive advantage in the market by forming strategic
alliances with other business in related industries. Such alliances may take the form of joint
ventures in which they pool resources together and gain exposure to the global market (Lewis,
n.d.). This way, the company will be able to gain an advantage over its rivals.
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AL NAWAF CASE 4
Steps to developing a succession plan
In order to develop an effective succession plan, Al Nawaf Company must align and
follow three main steps:
Step 1: Identify key positions
The first step in succession planning involves identifying the positions that are integral to
the success of the company (Feldman, 2016). Specifically, this includes those positions which
without successors may lead to the slowing or collapse of the firm.
Step 2: Find the best fit
Once the integral positions have been identified, the next step is to determine who can be
trained and mentored to eventually fill the position (Feldman, 2016).
Step 3: Develop a training plan
The third step involves management meeting with the identified employees to discuss
mentoring and training plans (Wilson, 2015). Such discussions should inform the employee of
the interest to promote them into the new role when the need arises, a timetable of the training
process, short term and long term goals, and the management’s expectations of the skills required
to carry out the job’s duties (Gale, 2013).
Conclusion
All in all, Al-Nawaf Company will realize various advantages when they set up a career
planning program for its personnel. By initiating a long term focus on career planning, the
company will increase its effectiveness on human resource management. The company may also
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AL NAWAF CASE 5
adopt strategies such as differentiation, cost-leadership and alliances to gain a competitive
advantage over rival companies. In turn, this will enhance the firm’s position in the market. In
the same way, developing a sound succession plan will help the firm transition smoothly in the
event of loss of leadership, thereby ensuring continued performance and growth.
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AL NAWAF CASE 6
References
Amadeo, K. (2017). What Is Competitive Advantage? Three Strategies That Work. The Balance.
Retrieved March 20, 2018, from https://www.thebalance.com/what-is-competitive-
advantage-3-strategies-that-work-3305828
Career Planning. (n.d.) Human Resources Management. Retrieved March 20, 2018, from
https://corehr.wordpress.com/hr-planning/70-2/
Feldman, J. (2016). 3 steps to succession planning. The Business Journals. Retrieved March 20,
2018, from https://www.bizjournals.com/bizjournals/how-to/sell-a-business/2016/05/3-
steps-to-succession-planning.html
Gale, F. S. (2013). Succession Planning Roadmap. Workforce. Retrieved March 20, 2018, from
http://www.workforce.com/2013/03/11/succession-planning-roadmap/
Lewis, J. (n.d.). Four Methods of Competitive Advantages. Chron. Retrieved March 20, 2018,
from http://smallbusiness.chron.com/four-methods-competitive-advantages-32344.html
Rouse, M. (n.d.). Competitive Advantage. Search CIO. Retrieved March 20, 2018, from
http://searchcio.techtarget.com/definition/competitive-advantage
Wilson, T. (2015). 8 Steps for Effective Succession Planning. SABA. Retrieved March 20, 2018,
from https://www.saba.com/blog/8-steps-for-effective-succession-planning
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