ECU ENS5543: Engineering Management Business Plan Report

This report provides a comprehensive analysis of the business plans of Pyramid Engineering and Indonesia EEC, two companies operating in the engineering and construction sectors. The report begins with an executive summary and table of contents, followed by detailed business profiles, outlining the mission, vision, and goals of each company. It examines their products and services, market research and marketing plans, and operational and financial strategies. The report then identifies the strongest and weakest components of their planning and execution of engineering projects. A comparative analysis between the two business plans is presented, followed by suggestions and recommendations for improvement. The report also addresses the competencies and challenges faced by the companies, along with strategies for overcoming these problems, and concludes with five key lessons learned about business planning. The report includes references to support the analysis and findings. The report aims to provide insights into the business plans of two engineering and technology related firms. A business plan represents a formal written document that contains the business goals, ways in which the goals are attained and time frame during which the goals are achieved. The two companies selected for this report are Pyramid Engineering and Indonesia EEC. Pyramid Engineering puts across engineering service through the use of technology based superior process. This provides greater value to the clients along with enhanced construction and design (pyramidenc.com, 2019). Indonesia EEC on the other hand offers cost effective and better quality service in procurement, project management, design, construction management, environmental consulting and the consulting service (EEC, 2019). In fact, the business plan represents a vital strategic tool for the entrepreneurs. Thus, a good business plan not only enables the entrepreneurs to focus on specific steps but also to determine the success of the business. It also helps the business in achieving the short term and the long term objectives.

Running head: MANAGEMENT
Engineering Management
Name of the Student:
Name of the University:
Author Note:

1MANAGEMENT
Executive Summary:
The report provides an insight into the business plan of two companies Pyramid Engineering and
Indonesia EEC. Pyramid Engineering represents a firm that specializes in the mechanical,
plumbing and electrical and fire protection. This particular company has architects and
developers who have thorough expertise of engineering across complete range of skills required
for the projects. They provide necessary advice to individuals regarding previous work and also
provide in recommendations from former employees. The individual reputations combined with
range of the expertise team will strongly appeal to the subcontractors. The company has been
licensed to carry out practice in eastern United States and expand in the concerned areas. The
other firm EEC has been introduced in Indonesia in the year 1996. The company offered cost
effective and good quality service in design, engineering, construction, construction
management, procurement and different types of consulting service related to design
management and engineering of electrical power plants.
The report commences with the business profiles, mission, vision, goals,
product/services, marketing research/ plan, operational strategy, positive and negative
components of the company, recommendations for both the companies and the challenges faced.

2MANAGEMENT
Table of Contents
Business Plan...................................................................................................................................3
1. Introduction:................................................................................................................................3
2. Purpose of the Report:.................................................................................................................3
3. Brief Description of Each Company:..........................................................................................4
a. Business Profile:.......................................................................................................................4
(i) Pyramid Engineering:..........................................................................................................4
(ii) Indonesia EEC:...................................................................................................................4
b. Goals, Mission and Vision.......................................................................................................5
c. Products / Services:..................................................................................................................6
(i). Pyramid Engineering:.........................................................................................................6
(ii) Indonesia EEC:...................................................................................................................7
4. Market Research and Market Plan...............................................................................................8
(i) Pyramid Engineering:..............................................................................................................8
(ii) Indonesia EEC......................................................................................................................10
5. Operational and Financial Strategy:..........................................................................................11
6. Three Strongest Component of Planning and.......Execution of Engineering Projects for Plan 1
12
7. Three Strongest Component of Planning and Execution of Engineering Projects for Plan 2. .12
8. Three Weakest Component of planning and Execution of Engineering Projects of Plan 1......12
9. Three Weakest Component of planning and Execution of Engineering Projects for Plan 2.....13
10. Analysis & Comparison between Two Business Plan.............................................................13
9. Suggestions/ Recommendations on how the Business Plan could be improved:......................14
10. (i) Competencies and Problem faced:......................................................................................14
(ii) Strategies Adopted in Overcoming the Problems:...................................................................15
(iii) Five Lessons Learnt About Business Planning......................................................................15
References:....................................................................................................................................16

3MANAGEMENT
Business Plan
1. Introduction:
The report aims at providing an insight into the business plans of two engineering and
technology related firms. A business plan represents a formal written document that contains the
business goals, ways in which the goals are attained and time frame during which the goals are
achieved. The two companies selected for this report are Pyramid Engineering and Indonesia
EEC. Pyramid Engineering puts across engineering service through the use of technology based
superior process. This provides greater value to the clients along with enhanced construction and
design (pyramidenc.com, 2019). Indonesia EEC on the other hand offers cost effective and better
quality service in procurement, project management, design, construction management,
environmental consulting and the consulting service (EEC, 2019).
In fact, the business plan represents a vital strategic tool for the entrepreneurs. Thus, a
good business plan not only enables the entrepreneurs to focus on specific steps but also to
determine the success of the business. It also helps the business in achieving the short term and
the long term objectives.
2. Purpose of the Report:
The purpose of the report is to provide a detailed business plan of the two companies. A
detailed business report helps in understanding whether there is a significant rise in the company
sales and profits in relation to procurement, construction, power generation, engineering and
delivery of power projects in comparison to the last year. The plan also helps in highlighting
sales revenue target over a period of five years. The plan portrays how the target seems
attainable either through proactive approach or through teaming with project finance provider or
partnering with regional engineers and reputable local suppliers or construction firms. This aids
in reducing the competition and improve pricing thus reducing the risk. The plan also portrays
that the required marketing budget also seems to grow every year. Depending on the previous
profits and the cash flow the plan puts across how the expansion of the company might be
carried out without increasing the financial leverage.
3. Brief Description of Each Company:
a. Business Profile:
(i) Pyramid Engineering:
This represents a firm that specializes in electrical, mechanical, fire protection and
plumbing. The company provides design, consulting and engineering services on education,
government, commercial and health care facilities and also undertakes subcontract with the
architects working within such facilities. The targeted clients are primarily the architectural
firms. The competitive edge of the company lay in the knowledge of the design resources based
on the digital technologies (Engineering, 2019). Superior level of customer service will be based

4MANAGEMENT
on the differentiation of the firm. The focus for the production will also depend on the
implementation of the quality control and the assurance program. The firm also comprises of the
immensely qualified and registered professional engineers. The market segments serviced by
firm includes state and local governments, healthcare facilities, educational institutions,
commercial groups and the facilities that required repaired updates, repair and design. Due to the
talent, hard work and dedication, Pyramid provides leadership and expertise throughout the
interactive process of design. Through maintenance of integrated and communication concepts of
design Pyramid is able to create design that has been unique to the needs of the client.
(ii) Indonesia EEC:
Indonesia EEC was found in the year 1996 and had been based in Jakarta, Indonesia. The
company had been the subsidiary of United States based Energy Engineering and Construction
(US EEC). The company primarily offers cost effective and good quality service in design,
procurement, engineering, construction, project management, construction management,
environmental and the other kinds of consulting services in relation to building, design and the
management of the electrical power plants(EEC, 2019)..
Indonesia EEC plans to establish joint venture Company with reputable local firm that
had the capability and expertise in the performance of EPC works of the power projects and the
financial capability. This helped in broadening the coverage through expansion into the
additional areas of service. Presently, Indonesia EEC has close to seventeen admin staffs who
cover marketing, sales and accounting.
b. Goals, Mission and Vision
Pyramid Engineering Indonesia EEC
1. Provide quality and professional engineering
service.
1. Trying to establish a stronger presence in
Indonesia.
2. Committed towards higher standards of staff
development, client service, reasonable profit
and ethical practice
2. Implementation of all the provisions for
construction and energy engineering.
3. Possesses the ability of collaboration 3. Remain a leader in business of BOT, BOO,
B&R, BLT and EEC
4. Ensures design excellence, integration of
systems and commitment towards
sustainability.
4. Attain projects in every prospect of EEC
services.
5. Tries to add values through creativity and
innovation
5. Reduce the cost of the work performed.
As far as Pyramid Engineering is concerned their mission lies in providing a higher
quality of professional service in relation to construction and other related activities for
balancing mix of private and the public clients. The organization remains committed towards
higher standard of staff development, client service, reasonable profit and ethical practice
(Engineering, 2019). Besides, the company believes that its clients would seek out for service
based on its reputation as an engineering firm. Thus, the company has the ability of collaboration

5MANAGEMENT
and extension of its services beyond its own walls for not only embracing the clients and the
entire team but also the surrounding community.
On the other hand, the mission of Indonesia EEC lay in the establishment of a stronger
presence in Indonesia through implementation of a particular mission in becoming full service
provider of EPC within Indonesia. The company’s mission to be leader in business of
BLT, B&R, BOO, BOT and ECC would be built through the joint venture approach. However,
the broader vision of the company lay in attaining the following objectives (EEC, 2019):
 Obtaining the projects in every area of the EEC services
 Ensure reduction of the cost to the point where Indonesian operation is able to provide
procurement, support services and engineering at cost lower than the ones provided by
US office.
c. Products / Services:
(i). Pyramid Engineering:
The firm put forward engineering services for electrical, mechanical, fire protection and
plumbing systems. It focuses on following occupancies and use (Engineering, 2019):
 Health/Senior Facilities
 Educational Facilities
 Government Facilities
 Commercial Buildings
 Program Management
 Building Engineering Assistance
 Provide subcontracting services to Engineering/Architectural firms
The firm is project specific and each of the projects involves the following:
 Rehabilitation
 Renovation
 New Construction
 Additions
Besides, the company also offers economical and innovative design services and tries to
maintain state of the art technology in design (Engineering, 2019.
(ii) Indonesia EEC:
The company provides cost effective and good quality of service in the engineering,
procurement, design, construction management, project management, management consulting,
environmental consulting, quality control and quality assurance, operations and maintenance,
information management and the development of the process technology (EEC, 2019).
The firm offers proficiency in the services it puts across. Amongst the various services,
the EEC allows the client to opt for their preferred advantage. This included (EEC, 2019):

6MANAGEMENT
 Engineering & Procurement (E&P)
 Engineering & Construction (E&C)
 Engineering & Architect (E&A)
 Project Management (PM)
4. Market Research and Market Plan
(i) Pyramid Engineering:
It is to be noted that if the extensive and broad market base is properly pursued then it
will allow the firm in achieving growth or revenue goals. The client base is however selected
from following sectors which includes:
 Governments: There seems to be stability in the local and the state government after
much downsizing and they seem to renovate the existing facilities for handling the
restructured programs (Patanakul & Pinto, 2014).
 Commercial/ Private Sector: The emphasis is predominately on renovation of existing
facilities, not new construction (Ball, 2014). The key theme is renovation of the existing
centers for attracting or retaining the shoppers.
 Senior Facilities/ Healthcare: There has been a new direction in the healthcare delivery
and facilities that fueled its growth and modification (Fang & Wu, 2013).
 Educational Institutions: Education has been still receiving a stronger confidence vote.
Hence, there has been a constant growth in the construction projects related to education.
 Architectural/ Engineering Firms: The Company has good working relationship with
number of engineering and architectural firms and has provided consultation service for
various projects in the past two years.
Figure 1: Pie chart showing the market analysis of Pyramid Engineering
Source: (Engineering, 2019).
The target markets primarily comprises of the facility or the building needs that requires
skilled engineering work for designing and implementation. The company requires engineers
who understand the needs, the budget constraints and legal and code requirements for location

7MANAGEMENT
and purpose of the facilities. firm undertakes complete electrical, mechanical, fire protection,
plumbing and engineering process for the architectural projects.
Service Business Analysis:
The consulting participants range from international brand consultants to individuals.
One of the challenges of Pyramid will lie in establishing itself as the real engineering, design and
the consulting company that has been positioned as one of the risk free corporate purchases.
Buying Patterns and Competition:
The key element of the purchase decision is usually made at client level and refers to the
trust in the professional reliability and reputation of engineering firm (Engineering, 2019). The
billing rates and pricing of projects have been surprisingly variable. The potential clients pays
substantial amount of fees for best quality of the professional service. The nature of the billing
has remained sensitive. It is also found that clients get offended when the job begins at $20K and
to end at 30K due to the overruns. The vital element for general competition lies in retaining the
clients for the repeat business. It has been found that the clients do not compare consultants
directly hence decisions for huge concessions are worth taking for maintaining client relationship
and in attracting future projects.
Marketing Plan and Strategy:
The company would be using internet and the personal contacts in the sales promotion.
These along with a targeted e-mail campaign and mail would make the major players aware
about the presence of the company. The company will focus on the limited budgets for
advertising for promoting community sponsored events. Besides, the company would also offer
technical services at the discounted rates for the non-profit organization.
(ii) Indonesia EEC
In Indonesia there have been twelve sectors of market for the power generation business
where Indonesia EEC would be seeking the prospects based on the proactive and focused
approach. The potential clients of the company during five year implementation of the plan
would comprise of the following twelve groups which includes, Paper and Pulp producers,
Textile producers, Mining industries, Cement mills, Shrimp farming, Sugar producers, Palm oil
producers, petrochemicals, Fertilizer manufacturing, Oil Refinery Complexes and Oil and Gas
Exploration and the Production Companies.

8MANAGEMENT
Figure 1: Pie chart showing the market analysis of Indonesia EEC
Source: (EEC, 2019).
As far as the target market is concerned, Indonesia EEC would focus on the key
electricity consumers of Indonesia who have been very demanding regarding the reliability of
power supply system (EEC, 2019). For short term, company would be creative and flexible in
not only financing but also in pricing the service. The Indonesian buyers have been found to
increasingly depend on the supplier financing thus looking for the bargains. The present
economic situation has placed them in compromising position for the purpose of bargaining.
Service Business Analysis:
These include the EPC contractors in power business range for global based Original
Equipment Manufacturers (OEM) of power generation and the transmission of the plants to
constructions firms and local engineering. Some of the local players include PT Tripatra, PT.
Truba Jurong, PT Pertafenikki and PT Gunanusa. The foreign players however include the
equipment manufacturers like Foreign Engineering / EPC Companies like Hyundai, Trading
Companies like Kanematsu Corporation and manufacturers like Mitsubishi.
Buying Patterns and Competition:
The recent analysis indicated that the total design cost of the power plants of Indonesia
has reduced by 12 percent while the construction cost of the power plants of Indonesia reduced
by 23.59 percent during the economic turmoil compared to the recorded data in the year 1996
(Pikra et al., 2013). However, the analysis depended on the assumptions that laborer and local
engineer salary rose by 25 percent at an exchange rate of about US$1 = Rp 7,200. The critical
issue for the establishment of the local capability of production lies in the ability of the company
in hiring, training or retaining the motivated and highly qualified Indonesian engineers.
5. Operational and Financial Strategy:
Financial Strategy:
1. Ensure realistic forecast, financial management and a conservative cash flow

9MANAGEMENT
2. The company will consider cash flow as the first priority, growth as the second and profits as
the last
3. To assume that the economy is strong without a major recession
4. Consider that there are no major changes in the economic policy for making the services
obsolete.

10MANAGEMENT

11MANAGEMENT
The financial analysis of the company was done by forecasting the sales and the
associated gross margin for the company whereby a 46% of gross margin has been maintained.
On the other hand, various operational and direct expenses that the company will be incurring in
the near term was taken into account for the forecasting the financials of the company.
6. Three Strongest Component of Planning and Execution of Engineering Projects for
Plan 1
These include (Dao et al., 2016):
1. Goal, vision and mission statement
Reason: This puts across the specific requirements including the milestones, project life
cycle and the deliverables.
2. Quality and the Technical Specifications:
Reason: This helps in providing the required inspection, documentation and testing of
contracts for ensuring the accomplishment of work and the supply of equipment and material as
per the specifications and plans.
3. Determining the Budget:
Reason: The nature of project necessitates the requirement of well defined budgets which
can be managed actively to prevent it from sprouting roots and growing like obnoxious weed.
7. Three Strongest Component of Planning and Execution of Engineering Projects for Plan
2
These include (Staron et al., 2013):
1. Scheduling