Entrepreneurial Success Factors in the GATT Construction Industry

This report provides a comprehensive analysis of GATT Construction, focusing on its entrepreneurial approach within the construction industry. It examines the company's history, organizational structure, and the external environment it operates in, including competitors like Tumas Group and J. Portelli Projects. The report highlights the role of Charlene GATT, a woman entrepreneur, and her innovative strategies for achieving competitive advantage, such as business diversification into the hospitality sector. The research is based on interview data and explores the challenges faced by the company, emphasizing the importance of adaptability, risk-taking, and strategic responses to environmental changes. The report also discusses the importance of entrepreneurship in the construction sector and provides recommendations for new businesses, offering valuable insights for managers, entrepreneurs, investors, and suppliers. The study also considers ethical considerations and research limitations. Overall, the report assesses the factors contributing to GATT's success and its ability to navigate the complexities of the construction market.

The evolution of an organization to stay competitive and survive in external environment challenges

Contents
Executive Summary.....................................................................................................................................2
Chapter 1: Introduction................................................................................................................................3
Aim of the report.....................................................................................................................................4
Relevancy of topic...................................................................................................................................4
Importance of the study...........................................................................................................................5
Chapter 2: Profile of the organization..........................................................................................................6
Nature of business...................................................................................................................................6
History of organization............................................................................................................................7
Organizational structure..........................................................................................................................8
Industry environment of the organization................................................................................................9
External environment of the organization:.........................................................................................10
Internal environment of the construction industry.............................................................................11
Chapter 3: Methodology............................................................................................................................12
Research Design....................................................................................................................................12
Research Approaches............................................................................................................................13
Research questions................................................................................................................................14
Research objective.................................................................................................................................14
Data collection methods........................................................................................................................15
Interview............................................................................................................................................16
Merits and demerits of the research...................................................................................................17
Research limitations..............................................................................................................................17
Ethical Consideration............................................................................................................................18
Chapter 4: Main findings...........................................................................................................................19
Chapter 5: Discussion................................................................................................................................25
Chapter 6: Conclusion and recommendations............................................................................................31
Recommendations.................................................................................................................................31
Conclusion.............................................................................................................................................33
References.................................................................................................................................................36
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Executive Summary
In this study, the main focus is given on the establishing a new business in the construction study
and focusing on some of the factors that helps the company to stay competitive in the market.
The whole report is based on the concept of entrepreneurship and qualities of an entrepreneur
that helps in handling the various environmental challenges. In this research report, the company
chosen is GATT construction and it is handled by a women entrepreneur, Charlene, who
promotes the innovation in the construction industry. The interview session with the director of
GATT Construction Company is the base of this research. All the findings and discussion are
based on this interview survey and compare the behavior of the entrepreneur by taking an
example of the two main competitors such as Tumas Group and J. Portelli projects companies.
The findings of this research report highlights the fact that an entrepreneur needs to be very
confident, creative, innovative and risk taker in order to achieve the organizational goals as well
as to gain the competitive advantage in the construction industry. Also, the importance is given
to the ideas of Charlene to diversify the business and move towards the hospitality sector in
Malta region in order to compete with the biggest competitors in the same region. The
entrepreneurs are also criticized on the basis of their risk taking behavior and greedy nature as
they all are aiming to earn a good amount of profits instead of promoting the innovation and
development of the economy. At the end of the research report, the recommendations with regard
to the setting up a new business have been given.
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Chapter 1: Introduction
The evolution of an organization requires new ways of managing the business by adapting the
environmental changes inside and outside the small organizations. It is very important for the
small organizations and the newly established businesses to stay competitive in order to survive
in the challenging world. Entrepreneurship is the process of the setting up a new business, taking
a financial risk to earn good amount of profits. In entrepreneurial business, owner plays a very
essential role at the initial stage to gain the competitive advantage and for successful
achievement of the goals.
This report outlines the fact that there is no business organization that can work and operate in
isolation because it needs the support of the various factors in the business environment. The
success of the business is highly relying on the networks of the relationship between and among
material resources, human resources and other financial systems. According to the various
researchers, the strategic responses are the decisions made by the organizations that may results
into the formulation and implementation of the plans in order to achieve the goals and objectives
of the organizations from different industry. The new business organization and the business
environment are interdependent and the integral part from the management perspectives.
Environment is very useful for the new venture as it provides the new resources and
opportunities to organization for its existence and new venture in return, offers the goods and
services to the people for the survival and enlightenment. The new ventures need to handle all
the environmental challenges such as the political, economic, technological and the micro
environment factors to stay competitive in the domestic and international markets as well as to
survive for the longer period of time (Oyewobi, et al., 2014).
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Aim of the report
The aim of this report is to find out how entrepreneurial business achieved its success, how it
gains the competitive advantages and how it deals with the external environment challenges. The
main purpose of the research work is to analyze about all the main factors that considered by an
entrepreneur while setting up his mind for creating a new venture. This report also includes the
close analysis of the various stages that occur between the idea development and idea
implementation. This report also aims at identification of the challenges faced by the business
owner at the start-up time and growing the business. Moreover, the aim of this report is to collect
the data for small business and that data should be small and manageable in nature.
In this report, the main focus is given on the construction industry and will take an example of
GATT construction group for the analysis of the topic. The business owner of GATT
Construction Company and his role in the achievement of the goals and how he utilizes the
management concepts to stay competitive in the market is going to be discussed in this report. To
add more, this report also determines the impact of the management strategies on the business
organizations and government can ensure that business activities are being carried out according
to the legal framework or not (Gatt Construction Inc., 2016).
Relevancy of topic
The research topic is relevant because it mainly focusses on all the factors that are significant for
business success such as human resource management, financial management and the facing all
the environmental challenges. Development and implementation of the strategies is the part of
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any business to achieve the organizational goals and objectives. This research is relevant because
it will be based on the primary data collected with the help of interviews.
Management is the most important concept and faced many complex and changing environment
trends. This relevancy of the research is highly dependent on the responses that we obtained from
the new venture owners through interviews survey (Commission, 1997).
Importance of the study
This study will be beneficial for the interest groups starting with the management of the GATT
constructions as a reference and also provides some suggestions on areas they can improve on.
This study will also help the managers or the entrepreneurs of the small business in the
construction field where they can draw the case of GATT on how they can respond to the
environmental changes. This report is also important for all the investors and suppliers to
determine the viability of the investments as well as to observe how to improve the relations with
the suppliers. To add more, this report also determines the impact of the management strategies
on the business organizations and government can ensure that business activities are being
carried out according to the legal framework or not (Princeton, 2013).
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Chapter 2: Profile of the organization
This chapter includes the nature of the small business organization and GATT construction is the
company on which the research was carried on. This chapter helps in understanding the
entrepreneurial business nature, history, organization structure and the industry environment of
the GATT construction.
Nature of business
GATT Company belongs to the construction industry. It is very difficult to understand whether it
is an industry or a sector that consists of many industries. The construction industry is playing a
very important role in the economic growth of the developing countries and long term
development of the nation. However, the investigation on the nature of the construction business,
requirements of the company and importance in the development is very helpful for the benefit
of these countries and also use this investigation for the purpose of improving the various areas
of the construction industry. It is also observed that the information technology framework is
also developed for providing fast and quick services to the people of our country (OECD, 2008).
Looking at the literature, then it shows that construction industry is a very important sector in the
development of the economy as it generates the great amount of revenue which can be used for
the development of the company. The construction industry is the element of the social
development also. According to the viewpoint of the Turin and his studies, they are covering all
the countries having population of one million people and his studies established the
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relationships between the economy and the construction industry which is being discussed and re
stated. The economic development because of the construction industry includes add value to the
gross domestic product, change in the rate of exchange, capital formation and creating the
employment opportunities for the citizens of the country. The construction industry is considered
as the basic industry similar to the manufacturing, mining, fishing and farming. This industry is
quite similar to the other industries like fishing, mining, manufacturing and farming. There are
many researchers and experts who challenged the construction industry to improve its quality of
the outcomes and efficiency as well (CIPE, 2014).
History of organization
Talking about the history of the company, then 30 years ago, this company was founded by Ray
GATT and started its business by investing in the road projects and then focused on the building
development. The daughter of Ray Gantt, named as Charlene, is taking care of the company from
the last five years of the company after the retirement of her father. She had a vision of
diversification and she looked at the business sectors very differently from the existing one. She
decided to invest heavily in the retail sector and the raw materials of the buildings at competitive
prices. The main target of the company is on the development of the luxurious department for the
niche market or rich people who will easily invest their money on purchasing of these luxurious
departments and wishing to settle in Malta. Also, she is focusing more on the hospitality sector
as she decided to build a marina, Villas and hotels in one of her major projects. Her vision of
diversification is the best part that makes the company grow and makes the company a leader in
construction sector in island of Gozo and Malta. Environment is very useful for the new venture
as it provides the new resources and opportunities to organization for its existence and new
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venture in return, offers the goods and services to the people for the survival and enlightenment.
The new ventures need to handle all the environmental challenges such as the political,
economic, technological and the micro environment factors to stay competitive in the domestic
and international markets as well as to survive for the longer period of time (Lasker, et al., 2015).
Organizational structure
The organizational structure of the construction company refers to the arrangement of various
job roles and responsibilities. There is variety of roles involved in the construction business such
as marketing, human resource, purchasing, finance and pre construction tasks. There are many
types of the organizational structures such as departmental horizontal separation, functional
design, directional and inter-departmental organizational design. The Gantt construction believes
in inter-departmental organizational designs. In the inter-departmental organizational designs,
specific job roles follow the hierarchical structure of communication and decision making flow.
For example, in the hierarchical structure the flow of information and decisions started with the
operational department head, to the project executives to the project managers to the
superintendents. However, the flow of the construction business decisions and degree of
authority is dependent on the size as well as policies of the construction business (Ofori, 2007).
The hierarchical organization structure of the GATT contracture has been shown in the below
diagram. The diagram illustrates that the degree of authority flow from general managers to
operations then project executives to the project engineers and superintendents. There are many
departments in the GATT Construction Company is performing different kind of functions such
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as the preconstruction, human resources, marketing, interior, risk management, logistics and
finance (Gadekar & Pimplikar, 2014).
Industry environment of the organization
GATT is the small business organization and construction industry environment includes both
systems and structures which identifies the atmosphere for the business transactions. The
business environment of the construction industry includes internal and external environment
which have the direct or indirect effect on the performance of the organization. It is analyzed that
before setting up a new business, the entrepreneur should do the PEST analysis or SWOT
analysis in order to identify the internal and external environment. PEST analysis is useful to
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analyze the external environment by focusing on the various factors such as political,
economical, social and technological factors which have the great influence on the business s of
the construction. On the other side, SWOT analysis is very useful in analyzing the strengths,
weaknesses, opportunities and threats for the business (Safa, et al., 2014).
External environment of the organization:
In order to stay competitive and to achieve the success in the business of the organization,
companies need to analyze all the external environment factors which are explained as below:
 Political- legislative factors: These factors include the Political environment of the
country, legal framework and government policies framework of the country where the
company wants to set up its new business. All of these factors are influencing the
business in positive as well as in negative way. For example, the political and legal
framework stability helps in encouraging the business and avoiding the risk of
establishing the business.
 Economic factors: These factors of the construction business include the effect of the
inflation, interest rates, fiscal policy and price fluctuations on the establishment of the
construction business.
 Technological factors: With the help of the technological framework, the organizations in
the construction industry receives a great positive benefits that increase the productivity
of the business and offers the quick services to the general public (Kasimoğlu, 2010).
 Social factors: These are also very important as every country has the different cultures,
customs and tastes and preference of the people. It is very important for the construction
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industries to understand the needs and tastes of the people before offering the services in
the market. Customer satisfaction should be mainly targeted by the construction
industries to reach the level of success. The customer satisfaction is achieved when the
companies are able to meet the needs of the people (Koota, 2003).
Internal environment of the construction industry
Internal environment of GATT construction industry involves the analysis of the competitive
environment, internal strengths, weaknesses, opportunities and threats for the company. The
competitive environment analysis is very difficult as it is involving the identification, definition
of main characteristics and intensity of the competitive forces. The internal environment also
involves the organizational policies, human resource management and the degree of
concentration, strategic management of the construction business (Suddaby, et al., 2015).
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