Aurecon Market Issues: Analysis of Strategies and Recommendations

This report provides a comprehensive analysis of the market issues faced by Aurecon, a construction and engineering consultancy firm. It begins with a problem statement analysis, highlighting the challenges related to market competition, employment issues, and the need for innovative strategies. The report then identifies gaps from a previous assignment and introduces new theories, including the Blue Ocean Strategy, McKinsey's 7S model, and VUCA analysis, to address these gaps. The Blue Ocean Strategy is used to find new market spaces, the 7S model is used to analyze the organizational structure, and VUCA analysis is used to understand the volatility, uncertainty, complexity, and ambiguity in the market. A literature review, including a PEST analysis, examines political, economic, social, and technological factors affecting Aurecon. The report aims to provide strategic recommendations for Aurecon to improve its market position and achieve sustainable growth in a competitive environment. The report also covers the implications of globalization and the need for the company to adapt to the changing market dynamics to meet the expectations of both clients and employees.

Running head: AURECON MARKET ISSUES
Aurecon Market Issues
Name of the Student : Choy Kai Yoon
Student ID : S3625479

1AURECON MARKET ISSUES
Table of Contents
Problem Statement Analysis............................................................................................................2
GAPs from Assignment 1................................................................................................................2
Part 1: New Theories.......................................................................................................................4
Blue Ocean Theory......................................................................................................................4
7 S Model.....................................................................................................................................4
VUCA Analysis...........................................................................................................................6
Literature Review-PEST analysis....................................................................................................7
Political........................................................................................................................................7
Economic.....................................................................................................................................7
Social...........................................................................................................................................7
Technological..............................................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Appendix........................................................................................................................................10

2AURECON MARKET ISSUES
Problem Statement Analysis
The problems faced by Aurecon in the recent times are greatly the result of the different
factors affecting its overall market scenario of the organization. the different problems like
employment and training issues along with the different problems faced by the organization
relating to the market competition and the different aspects of the workforce challenges faced by
Aurecon. The implications of Aurecon’s needs to innovate new strategies and focus on a number
of different issues for the overall application in the market for its sustenance. The entry of a
number of global firms in the market greatly affects the overall performance of the organization
as it has to take into account the feasibility of the different strategies in the market (Pisano 2015).
Rising competition from international firms like PWC, KPMG and Deloitte have forced the
company to work on a number of different strategies for the innovation of new measures to
mitigate the issues faced by the organization. The different macro-environmental analysis
negates the influence of the employee's problems and the cut-throat competition that is bring
faced by the organization due to increasing globalization in the country. The various analysis
also fails to take into account the lack of the various firms to spend a larger amount of money on
the services of the consulting firm. The globalization is bringing in a large number of
competitors where the competition is becoming cut-throat, and the minimalistic pricing strategy
will not help the cause of Aurecon's growth. The different methods like 7s analysis and the
VUCA analysis will help in the understanding the problems faced by Aurecon which were
overlooked in the previous assessments. The Blue Ocean strategy helps in the understanding of
the importance of the different strategies for the overall success in the market. The different
innovative strategies need to be tested for the feasibility of their approach in the improvement of
Aurecon’s market share.
GAPs from Assignment 1
In the Assignment 1 PESTLE analysis of the organization has been conducted to
understand the external factors and its impact on the organizational objectives. Porter 5 force
analysis is also a similar tool to understand the way external forces impact upon the organization
and its business process. However enough emphasis has not been provided to mitigate the threats
that have been detected. External factors are ever-changing and PESTLE analysis is not equipped

3AURECON MARKET ISSUES
to track the changes. The external factors and their influences are largely based on assumptions
hence there can be certain mistakes. Factors like Political and Social elements cannot be changed
by the company hence the analysis would not help much. Porter 5 force analysis, on the other
hand, does not provide a dynamic view of the external forces that are acting on Aerocon. Porter
intended to utilize the tool not for a single company but for the industry as a whole. However,
presently most people use the tool for analyzing singular companies. This has been done in the
case of Aerocon as well. Therefore, these can be regarded as some of the major gaps in external
analysis.
In the case of the internal analysis SWOT and VRIO analysis has been done. SWOT
analysis elucidates the strengths and weaknesses of the company, which has overlooked the case
of employee satisfaction in the analysis. Artificial Intelligence has been shown as a threat, which
may well be utilized as an opportunity to improve the business process of the organization.
Additional Research
The additional researches that will fill the gaps of the existing research are 7S framework,
Blue Ocean strategy and VUCA model.
The McKinsey 7S framework would inspect the impact of changes in the company in the
future and would provide a dynamic view of the changes. This framework helps in determination
of the best strategies for the implementation of the proposed solutions and changes. Blue Ocean
strategy helps in eliminating the competition and establishing a newly developed fertile
marketplace for the company by inducing demand. The blue ocean theory was first devised in a
book called "Blue Ocean Strategy" by W Chan Kim and Renée Mauborgne
(Blueoceanstrategy.com 2018). This will help in eliminating the gap that does not provide the
solution to the excessive competition that harms the business of an organization. The VUCA
model explores the uncertainties and helps the management in determining what are the possible
actions that can eradicate such ambiguities and uncertainties from within the organization. In the
case of Aurecon, there are uncertainties about employability and market competition. VUCA
analysis throws light on the overall business environment of the organization and detects the
volatility, uncertainty, complexity and ambiguity within the system (Riehemann 2016).

4AURECON MARKET ISSUES
Part 1: New Theories
There are number of theories to be taken in to account to fulfil the various gaps that are found in
the different analysis of the previous assign met the various theories that can be implemented to
innovate the new strategies for Aurecon's success. The Blue Ocean Theory, The VUCA analysis
and the 7s model will help in the formulation of the different strategies for Aurecon's
sustainability in the current market.
Blue Ocean Theory
The blue ocean theory formulated by W. Chan Kim and Renée Mauborgne focusses on
the development of various strategic and innovative moves for the success of the organization by
using a list of different innovative strategies for the creation of a new uncontested market space
for the company (Kim & Mauborgne 2014). The construction sector is undergoing a point of
stagnation, and the continuous moving of the firms to international markets is becoming a
problem for Aurecon. To mitigate this issue the company needs to take a number of steps and
have a number of authentic and bankable approaches to have a headway against its employees
(Mi 2015). The different strategies in the blue ocean approach of the organization would include
cost-cutting in the employment sector, diversifying their approach to have a variety of other
consulting other than the consulting in the sector of construction management. In the current
scenario, the construction companies are opting for a more cost-effective approach, which has
increased the competitiveness in the market. The number of companies has also greatly increased
in the last two years. The Blue Ocean strategy will help the organization by inducing new and
better approaches for the proper application of the various strategies in the different sectors of
the business operation to ensure a better success ratio.
7 S Model
The 7 s model takes into account the different factors that affect the innovation and the
different strategies affecting the overall marketing approach of the company. McKinsey’s 7s
model helps in reframing the different organizational approach for the achievement of
competitive advantage in the market (Singh 2013).
 Strategy: The different marketing and the organizational strategies need to be mitigated
by the formulation of new strategies. The different problems seen in the operations in the
macro-environmental and the micro-environmental analysis needs to be mitigated, while

5AURECON MARKET ISSUES
paying heed to the different strategies that should be implemented for the change in the
organizational structure and employee motivation to have a more diverse approach of
mitigating competition in the market.
 Structure: Aurecon needs to change its organizational structure to have the maximum
output from their employees based on the different marketing need. The company has a
matrix based organizational structure which helps in the resource coordination and
having flexibility in the approach of the different problems plaguing the organization.
 Systems: It is one of the major firms providing engineering and construction consultancy
in Singapore by helping the potential clients choose the best organization to suit their
need and budget from wide array of options. The employees focus on providing better
facilities for the overall implication of the different strategies to meet the consumer
needs.
 Shared Values: The organization is committed to providing quality support to the
different clients based on their various needs ion the construction management sector. It
has a competitive advantage of having a proficient engineering and construction approach
over its competitors and the employees and the management strive to keep the values
intact in the organization
 Style: The leadership style of Aurecon is situational leadership, where the different
leaders of the organization focus on different opportunities and threats faced by the
organization and device methods for a better approach to the different issues.
 Staff: The staffs working in the Aurecon consultancy are majorly people who are
proficient in their approach regarding their knowledge on the engineering and
construction sector and the company focusses on the providing the consulting facilities to
the different clients.
 Skills: The skill set of the Aurecon Singapore is basically set on the engineering and
construction-related management and help. The different strategies that need to be
employed for the improvement of the skill set of the employees will also include the
diversification of the business.

6AURECON MARKET ISSUES
VUCA Analysis
The VUCA analysis takes into account the different factors affecting the organizational behavior
of the organization. The factors of the VUCA analysis include the volatility, uncertainty,
complexity and ambiguity of the various situations faced by the organization. (Lawrence 2013)
The analysis helps in the understanding of the various organizational behaviors and their impact
on the performance of the organization.
Volatility: The volatility of the environment depends on the various factors that are affected by
the employee attrition rate the business proficiency of Aurecon. The business environment of
Aurecon is volatile, as it has to implement a number of different changes in the organization to
ensure success in its ventures.
Uncertainty: The uncertainty in the organization is also the result of the competitive business
environment in Singapore. The continuous rise in the competitiveness of the consultancy
business is leading to the rise of the uncertainty in Aurecon’s future success.
Complexity: The complexity of the situation in the organizational approach refers to the
different problems that the organization face in the understanding the demands of their clients.
The demands of the clients are often very complex and need special approach to be met as in
most cases the demand focusses on economic and subjective approach to their requirements.
Ambiguity: Ambiguity is one of the major issues faced by the consultancy in its micro as well as
the macro environment. The ambiguity in the performance of the different tasks is the result of
the unsatisfied employees or the clients which affects the organizational behaviour as well as
achievement of organizational goals.
The selected models help in the understanding of the different issues that plague Aurecon
and inhibit its growth. The different models help in the analysis of the hard systems and the soft
systems affecting the overall market environment of the company. The different methodologies
also help in the understanding of the continuous change in the market dynamics and how it
affects the expectations of the clients and the employees therefore affecting the overall
performance of the organization.

7AURECON MARKET ISSUES
Literature Review-PEST analysis
The literature review takes into account the various political, economic, social and
technological factors affecting the overall scenario of Aurecon.
Political
According to Hwang, Zhao and Gay (2013), the private political partnership has a major
role to play in the success of the various construction businesses in Singapore. The public-private
partnership in the country has a number of risks in the construction business which affects the
overall market of the construction business. This rise of the instability in the construction
business takes a toll on the Aurecon's consultancy operations, as it is greatly dependent on the
stability of the construction business approached for its operations. The political scenario related
to the expatriate workers also makes it tough in operating a number of the construction business
and thereby negatively affecting the business of Aurecon. The political scenarios of the country
are thereby affecting the overall operations of Aurecon.
Economic
According to Zhao, Hwang and Phng (2014), the overall economic factors affecting the
different environmental factors of the construction industry relating to the different issues they
face while running operation in Singapore. The developing economy of the country along with
the different factors affecting the overall industry. The economic competition in the Singaporean
economy helps in the market to be cost-effective for the consumer but for the developer and
consultancy the risks of surviving in the market is relatively high. One of the major risks relating
to the economics rise when the operations are forced to operate in the scenario of a limited
deadline, and the timeline overshoots the deadline. The economy of the projects also affects the
costs of the different services offered by Aurecon.
Social
According to Ling et al. (2014), the supply chains play an important role in the success of
the different business strategies in the company. The construction business is dependent on the
cohesion of a number of forces working in tandem for the better operations of the different
subsidiaries of the organization. The volatility of the current construction business environment
in the country is greatly affecting the overall scenario of the operations of Aurecon in Singapore.
The different functions of achieving the overall success in the operation of the business are based

8AURECON MARKET ISSUES
on the achievement of common goals which will further help in strengthening the organizational
structure.
Technological
According to Sawhney et al. (2014) there is increasing use of the ICT approach across the
different Small, and Medium Enterprises in the construction industry play an important role in
the success of the various organizations. The consultancy business like Aurecon faces an
important issue in the form of the need for the market to have a number of internet-based
services for the overall success of the different strategies implement3ed by them. The need of the
cost-effective approach of the different strategies that are to be implemented in the form of the
different strategies to be implemented by the companies for their overall success.
These strategies help in understanding the different issues being faced by Aurecon. The
different scenarios affecting the construction industry business are also affecting the different
scenarios in Aurecon. The increase in the cost-effective approach in Singapore along with the
increase in the overall market competition has led to a number of issues in the market scenario.
The rise in the competition along with the loss of the clients has greatly affected the overall
environment of the industry.
Conclusion
Therefore, in the above discussion, it is seen that the different factors play a role in need
of innovation for the mitigation of the competition faced by Aurecon in Singapore. One of the
major issues affecting the overall growth of the consultancy business is the overpowering
presence of the different strategies that have been employed in the operations. The mitigation of
these issues needs a number of different strategies to be focused on for the success of the
different operations in the city. The different operations of the Aurecon need to be changed
according to newer and more innovative measure focusing on their internet-based approach for
their success in the different business environments. The different innovative strategies will help
in the overall development of the different strategies that will help in the development or
organization.

9AURECON MARKET ISSUES
References
Blueoceanstrategy.com., 2018. What is Blue Ocean Strategy | About Blue Ocean Strategy.
[online] Blue Ocean Strategy. Available at: https://www.blueoceanstrategy.com/what-is-blue-
ocean-strategy/ [Accessed 16 Mar. 2018].
Hwang, B.G., Zhao, X. and Gay, M.J.S., 2013. Public private partnership projects in Singapore:
Factors, critical risks and preferred risk allocation from the perspective of
contractors. International Journal of Project Management, 31(3), pp.424-433.
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review Press.
Lawrence, K., 2013. Developing leaders in a VUCA environment. UNC Exec Dev, pp.1-15.
Mi, J., 2015. Blue ocean strategy. Wiley Encyclopedia of Management.
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review, 93(6), pp.44-54.
Riehemann, J., 2016. Organizational Cultures in the Future Tense: An Analysis of Cultural
Adaptation to VUCA Environments (Doctoral dissertation, Universität St. Gallen).
Sawhney, A., Mukherjee, K.K., Rahimian, F.P. and Goulding, J.S., 2014. Scenario thinking
approach for leveraging ICT to support SMEs in the Indian construction industry. Procedia
Engineering, 85, pp.446-453.
Singh, A., 2013. A study of role of McKinsey's 7S framework in achieving organizational
excellence. Organization Development Journal, 31(3), p.39.
YY Ling, F., GY Toh, B., Kumaraswamy, M. and Wong, K., 2014. Strategies for integrating
design and construction and operations and maintenance supply chains in Singapore. Structural
Survey, 32(2), pp.158-182.
Zhao, X., Hwang, B.G. and Phng, W., 2014. Construction project risk management in Singapore:
resources, effectiveness, impact, and understanding. KSCE Journal of Civil Engineering, 18(1),
pp.27-36.

10AURECON MARKET ISSUES
Appendix
The assignment report on Aurecon was being done in order to determine the current
environmental factors being faced by them in their daily operation. In order to do so, different
models and concepts are being used in order to determine their effectiveness against the
environmental factors. Moreover, the competitive advantages are also being determined in the
assignments. On the other hand, the report can be done much better in many ways. One of the
key areas that can be done in a better way is the sampling method. This is due to the reason that,
the assignment is being done with the help of the secondary research and data. However, primary
data collection may be the better option in doing this assignment. If the primary data can get
collected, then the information given in the assignment should have become more authentic and
logical. This is due to the reason that, in the case of the primary data collection, the information
was get collected from the associated stakeholders itself.
Another area identified, which should had been done better is the providence of the
recommendations in the assignment. This is due to the reason that, the assignment talked about
the issues and challenges being faced by Aurecon in their business operation. Thus, it should
have been more effective if a few recommended steps can be provided. Having the
recommendations helped the readers to have the idea about what should be done in overcoming
the challenges and their implementation process. Process of evaluation should also be given in
the assignment. This was important due to the reason that organizations should have the certain
criterion or standards against which the performance will get evaluated. However, in the
assignment, the evaluation process is not being given. Having the elaborative statement about the
evaluation criterion and process had enhanced the quality of the assignment and the assignment
looked more complete and mature.
The assignment had done the analysis of the internal environment of Aurecon but the
SWOT analysis was not being done. It should have been done and in order to have the more
clear and precise idea about positive and negative environmental factors of Aurecon. In relation
to the SWOT matrix, if the SWOT matrix can be done, then the assignment should get more

11AURECON MARKET ISSUES
enhanced in terms of the quality. It should be easy for the readers to identify the key internal
factors of the organization and what should be done in order to overcome or prevent these issues.
It can also be noted from my side that the assignment can be done more professionally compared
to what has been done. This is mainly due to the reason that I have less experience in doing
practical assignments. However, I am sure that from the experience I have gained by doing this
assignment, I will be able to provide more quality in my future assignments and with the addition
of the information I skipped in this one.