ASX:200 Analysis: BCG Construction's Innovative Business Strategy

This presentation analyzes the innovative business strategies of BCG Construction Australia, focusing on its divergence from competitors and its emphasis on domestic projects. It evaluates the company's performance, particularly in the financial year 2018-19, highlighting its strategy of creating corporate value through persistent analysis of business uncertainties. Unlike peers such as Brookfield and Leighton, BCG emphasizes sectorial business analysis and domain marketing to drive goodwill among its clientele. The presentation also touches upon the company's international presence, its commitment to social impact through gender diversity and societal strategies, and its collaboration with the Australian government on heritage preservation projects, including its adherence to tax transparency standards. The analysis references academic sources to support its claims regarding leadership, competitive advantage, and business strategy.

INNOVATIVE
ENTERPRISE
ANALYSIS
THE BCG CONSTRUCTION COMPANY, AUSTRALIA

BUSINESS STRATEGIES AND COMPETITIVE ADVANTAGE
• CREATION OF CORPORATE VALUE THROUGH PERSISTING ANALYSING OF
BUSINESS UNCERTAINTIES
• EVALUATION OF THE ASX:200 COMPANY PERFORMANCE
• IN THE FINANCIAL YEAR OF 2018-19, THE COMPANY IS GIVING EMPHASIS ON
SPREADING OF DIVERGENCE AND DISPARITY IN THE SECTORIAL BUSINESS OF
BCG COMPANY IN AUSTRALIA
• SUCH SECTORIAL ANALYSIS IS MOSTLY NOT CONDUCTED BY MOST OF THE
PEERING CONSTRUCTION COMPANIES LIKE BROOKFIELD, LEIGHTON, JOHN
HOLLAND AND SO ON.

CONTINUED…
• A PERFORMANCE EVALUATION STRATEGY HAVE BEEN FORMULATED BY THE COMPANY THROUGH AN ANALYSIS OF
THEIR FORMER PROJECTS. A SPECIAL EMPHASIS HAVE BEEN LAID ON THE FACTORS LIKE PROJECT ROADMAP,
WORKER ALLOCATION AND SITE MAPPING ACTIVITIES THAT HAS GIVEN THE PROJECT THEIR PHENOMENAL SUCCESS.
• THE COMPANY HAS AN INTERNATIONAL MARKET IN NEW ZEALAND, PHILIPPINES AND FEW OTHER ASIAN
COUNTRIES. HOWEVER, UNLIKE OTHER COMPETITORS LIKE LEIGHTON, JOHN HOLLAND AND SO ON, THEY PUT
MUCH MORE EMPHASIS ON THE DOMESTIC PROJECTS. THAT IS WHY, THEY HAVE BEEN ABLE TO EMERGE AS THE
MAJOR NON-GOVERNMENTAL PROJECT PARTNER OF THE AUSTRALIAN GOVERNMENT.
• IN COMPARISON, THIESS AND LEND LEASE ARE FINANCIALLY MUCH STANDARDISED AND DEVELOPED. HENCE, THEIR
MARKET CAPITAL IS INVESTED IN SPREADING OF BUSINESS DOMAIN
• IN CONTRAST, THE BCG COMPANY, SPREADS THEIR GOODWILL THROUGH DOMAIN MARKETING AND THAT IS WHY
THE COMPANY IS BENT AT DRIVING GOODWILL AMONG THE CLIENTELE.

BUSINESS STRATEGIES FOR A
COMPETITIVE MARKET
• THE INTERNATIONAL PRESENCE OF THE COMPANY HAD BEEN MORE
CONSOLIDATED THROUGH LOWERING OF THE COMMODITY PRICES AT THE
TIME OF THE FY
• REGULATION OF THEIR BANKING SCHEME AS WELL AS A DROP IN THE
COMMODITY PRICES ALLOWED LOWER RETURNS IN THESE 2 SECTORS THAT
CONSTITUTE ABOUT HALF OF ASX 200 BY MARKETS OF CAPITALISTIC
PERFORMANCE (WARD 2016)

TOTAL SOCIAL IMPACT
• THE IMPACT THAT THE COMPANY HAS ON THE
SOCIETY, INCLUDES ITS TOTAL RETURN ON THE
INVESTMENTS
• THIS IS TERMED AS THE TOTAL SOCIETAL
POLICY OF THE COMPANY
• THE GENDER DIVERSITY IN THE WORKFORCE IS
ANOTHER REASON THE COMPANY IS PLANNING
TO IMPLEMENT LEADERSHIP BASED ON DRIVE

CONTINUED…
• IN THE YEAR 2016, THE COMPANY FACED AMPLE ECONOMIC DISTRESS
• HOWEVER, AFTER THE ADOPTION OF THE SOCIETAL STRATEGY, THE
WORKFORCE ENGAGEMENT WOULD BE FOSTERED.
• IN THIS CONTEXT, THE PERFORMANCE OF THE COMPANY IS SLIGHTLY LOW
COMPARED TO THE OTHER CONSTRUCTION FIRMS THAT ARE ACTIVELY
WORKING IN THIS CONTEXT (BROWN 2016)

PRIVATISATION STRATEGY WITH
GOVERNMENT COLLABORATION
• THE OFFICIAL PARTNER OF THE GOVERNMENT FOR THE HERITAGE
PRESERVATION PROJECT HAVE BEEN THE BCG.
• THERE ARE BENEFITS AS WELL AS RISKS OF ACQUISITION OF THE PROJECT
OVER THE OTHERS
• HOWEVER, IN ENSURING EFFECTIVE POLICY OUTCOMES, LONG LASTING
VALUE IMPLEMENTATION MODEL IS REQUIRED.
• THE PROJECT PLANNERS’ TEAM OF THE COMPANY IS BENT AT DEVELOPING
BEST ALTERNATIVE DESIGNS FOR EVERY SINGLE PROJECT.

MAINTENANCE OF TAX TRANSPARENCY
• THE BOSTON CONSULTING GROUP PTY LTD (BCG) GIVES AMPLE SUPPORT TO THE GOVERNMENT OF
AUSTRALIA
• THIS HAS HELPED THE PEOPLE TO UNDERSTAND THEIR TAX CONTRIBUTION
• THERE IS ABSOLUTE COMPLIANCE WITH THE TAXATION STRATEGY UNDER THE RULE OF AUSTRALIAN
CORPORATE TAXATION.
AMONG THE LEADING CONSTRUCTION COMPANIES, THIS IS THE ONLY ONE THAT HAS SIGNED UP WITH
THE VOLUNTARY TAX TRANSPARENCY CODE OF AUSTRALIA.

REFERENCES
• WARD, J., 2016. KEEPING THE FAMILY BUSINESS HEALTHY: HOW TO PLAN FOR
CONTINUING GROWTH, PROFITABILITY, AND FAMILY LEADERSHIP. SPRINGER.
• BROWN, T., 2016. LEADERS CAN CHANGE CREATIVITY INTO COMPETITIVE
ADVANTAGE. HARVARD BUSINESS REVIEW.