Organizational Strategy Analysis of Balfour Beatty (Report)

This report provides an analysis of Balfour Beatty's organizational strategy. It begins with an introduction to organizational strategy and its importance, followed by an examination of the macro-environmental factors impacting the company, including political, economic, social, technological, legal, and environmental considerations. The report then assesses Balfour Beatty's position within the construction industry. Furthermore, it utilizes the VRIO model to evaluate the company's internal resources and capabilities. The analysis extends to the perspectives of various stakeholders, including customers, shareholders, subcontractors, suppliers, the community, and employees. The conclusion summarizes the key findings, emphasizing the significance of organizational strategy in business performance. The report references relevant academic sources to support its analysis.

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.