Leadership of Fletcher Construction: A Comprehensive Analysis

This report provides a detailed analysis of the leadership of Fletcher Construction, a subsidiary of Fletcher Building Company Ltd. The report examines the company's business strategies, including those related to workers and resources, and conducts a SWOT analysis to evaluate its strengths, weaknesses, opportunities, and threats. It delves into future growth plans, corporate and business-level strategies, and the role of management, including dimensions of organizational culture and management hierarchy. The report also offers recommendations for future development and concludes with an overview of Fletcher Construction's journey, aiming to provide insights into its leadership model and its ability to compete in the modern business world. The analysis covers various aspects of the company's operations, market position, and strategic development, emphasizing entrepreneurial thinking and innovation.

Running head: LEADERSHIP OF FLETCHER CONSTRUCTION
Leadership of Fletcher Construction
Name of the university
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Executive Summary:
Fletcher Construction is a subsidiary unit of the Fletcher Building Company Ltd. This construction
company has operated successfully for the last few years. Hence, it is very important to analyse the
leadership strategy of this business. The report will analyse on various factors related to this company.
The report will describe about the business. Moreover, it will analyse strengths, weaknesses,
opportunities and threats related to this company. In this context, some basic concepts related to
leadership will be discussed. At the end of the report, some recommendations will be provided. Those
will help this company to compete with its competitors and to sustain in future. Moreover, the will also
conclude about the successful journey of this company.

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Table of Contents
Introduction:...............................................................................................................................................3
Business introduction:.................................................................................................................................3
Strategies related workers:.....................................................................................................................4
Strategies related to resources:...............................................................................................................4
SWOT analysis of the Fletcher Construction:...............................................................................................4
Future growth plans and strategic development:.......................................................................................7
Corporate Business Strategy:...................................................................................................................7
Business level strategy:............................................................................................................................7
Innovation and productivity:...................................................................................................................8
Strategic development of Fletcher Construction:....................................................................................9
The role of management:............................................................................................................................9
Dimensions of organisational culture profile:........................................................................................10
Management hierarchy:........................................................................................................................10
Operations of management:.................................................................................................................11
Recommendation:.....................................................................................................................................12
Conclusion:................................................................................................................................................13
References:................................................................................................................................................15

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Introduction:
In the modern business world, each business organisation faces huge competition. Hence, to
conduct a complete business process those organisations need proper leadership. Leadership helps a
firm to operate smoothly with its all factors of productions. Without this leadership, all other business
resources and factors will be ineffective (Mokhber, Khairuzzaman & Vakilbashi, 2018). The purpose of
this report is to analyse this leadership model and its various components related to a leading company
of New Zealand. Here, the chosen company is the Fletcher Construction Company Limited. It is a publicly
listed company on the New Zealand and Australian stock exchanges. Therefore, this report will focus on
the various topics related to this leadership model of this company. Moreover, this report will discuss
about the business strategies, current and future problems related to business operations,
opportunities, growth plan and strategic developments of this company, for future. It will also focus on
the entrepreneurial thinking and creativity to innovate and develop the organisation further. To support
those agreements, the report will provide various supportive arguments and evidences related to the
business strategies of the Fletcher Construction Company (Fletcher Construction, 2018). To analyse the
market condition of this company, the report will further conduct a SWOT (strength, weakness,
opportunity and threat) analysis. After analysing those whole things, suitable recommendations will be
provided for developing this company in future. At the end, the report will conclude the whole
discussion to understand the complete scenario of the Fletcher Construction.
Business introduction:
The Fletcher Building Limited is a publicly listed company in both New Zealand and Australia.
The Fletcher Construction Company Limited is a unit of that publicly limited company in New Zealand.
The company has completed various important projects related to construction. The Auckland Sky
Tower is one of the most important projects of this company. They have performed their entire business
in three business units. These are building and interiors, infrastructure and South Pacific. The CEO of this
company is Michele Kernahan. She was appointed as the Chief Executive in 2017. Before her, Graham
Darlow was the CEO of this company (Fletcher Construction, 2018). The CEO and other members took
some strategies related to people and resources of this company to establish their goals and objectives.
Hence, before Kernahan, the chief person of this company was Graham Darlow. To create a valuable
position of this company, he took some strategies. Firstly, the company takes care of environment and
always try to make a better life for their customers and employees. Secondly, the company also under

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the leadership of Darlow, tried to hire employees of next generation to obtain full level of potential
work. Lastly, they tried to enhance their business through expanding their customers. Hence, the
company, leaded by Darlow and Kernahan, has taken various strategies that will be discussed in the rest
part of this report.
Strategies related workers:
They maintain high safety standard for their workers. Their Health and Safety Policy represents
their approach to provide a harmless environment. Hence, their policy includes some objectives. The
leaders are capable, responsible and committed regarding the health and safety issues of every worker.
Leaders encourage other employees to participate in Health and safety related initiatives at each level of
business (Fletcher Construction, 2018). They provide various training programmes for providing Safe
work practices to its workers. Hence, the company has earned a leading position in the field of health
and safety.
Strategies related to resources:
To produce more outputs with best quality, a company needs to take various strategies related
to resources (Baumgartner & Rauter, 2017). The company is trying to utilise all resources to get higher
amount of profit. The CEO and the Construction Manager of this company have taken decision regarding
resources of production. The company is operating in New Zealand and other countries by applying their
best strategies regarding resources.
SWOT analysis of the Fletcher Construction:
Each company has some strengths, weaknesses, opportunities and threats (SWOT). Hence, it is
very important to analyse SWOT to understand the business condition of this company ( Brooks, Heffner
& Henderson, 2014). By analysing this, the company can adopt its strategic position and capabilities in
the present market condition. The parent company of the Fletcher Construction company Ltd. is the
Fletcher building Ltd. it is also the New Zealand based company (Fletcher Building, 2018). Hence, the
SWOT analysis of both parent company and its subsidiary company will be same. They will face same
political, economical and social conditions.

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Strength:
 The company has strong dealer community. Moreover, it builds a good relation between their
dealers and distributors. Dealers promote products of this company. They also invest for the
sales team of the company.
 Fletcher Construction has done some projects efficiently. Hence, they have good reputation in
market and that helps them to earn capital expenditure.
 This construction company has performed efficiently in new markets. As a result, they expand
their business in different places except New Zealand (Fletcher Construction, 2018). They access
their business in Fiji, Papua New Guinea and other some places.
 The Fletcher Construction Company Ltd. has records of their successful stories to develop new
products and product innovations.
 They can fulfil the high level of satisfaction of their customers. The company provides dedicated
relationship with their customers to satisfy their customers. They also main a good brand equity
in the market with their potential customers.
 The Fletcher Construction Limited also has built strong distribution networks. Those reliable
networks help the company to reach to its maximum potential market.
 The company has strong brand portfolio. Its parent company, the Fletcher Building Limited has
made a strong brand portfolio over the years.
Weakness:
 The company needs more investment for introducing new technologies. As the company is
planning to expand their business in different geographical region, the company needs more
technologies and money to implement those plans.
 The company has some gaps in the product age that are sold by the company. This gap can give
opportunities of other competitors to enter into the market.
 The company is providing construction materials with poor quality. This reduces the reputation
of this company in the market. This will further reduce the demand for this company (Fletcher
Construction, 2018). Hence, the company will loss various opportunities in future.
 Financial planning of this company is not done efficiently and properly.

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 The percentage of net contribution and profitability ratio of this company is lower compare to
the average of the industry.
Opportunities:
 The construction industry in New Zealand will expand by 70% in the next five years. The
company already have projects worth $3 billion for upcoming years (Fletcher Construction,
2018).
 The company provides training, career progression and development programmes to improve
quality of their workers.
 The new taxation policy can affect the company significantly. This will further help Fletcher to
earn more profits in future. On the other side, New Zealand is facing low level of inflation within
the market. This will further help the company to establish a stable business environment
(Alley, 2018). Moreover, they can get credit from banks with low level of interest.
 The development of construction market in New Zealand can help this company to expand its
business further (Carey et al., 2015). Moreover, this will help the company to establish a strong
business. This further reduces the advantages of Fletcher’s competitors.
 The government of New Zealand has opened new markets will help Fletcher to adopt new
technologies in future (Wilkinson, Lim & Jang, 2017). Moreover, the free trade agreement of
this country can help the company to expand their business in new markets.
 New technologies provide opportunities to this construction company to practice various
pricing strategies (Tatum, 2018). This will further give the company an opportunity to construct
good relations with their loyal customers by providing great services. Moreover, it will give the
opportunity of attract more customers through their value oriented propositions.
Threats:
 After earthquake, each construction company faces huge competition. As the demand for
workers and other factors of productions increase, the price of those factors has also increased
(Marquis, Kim, Elwood & Chang, 2017).
 The company can face financial loss if one of their projects fails.
 Mismanagement and bad financial decisions can affect the company to face huge loss
 Using of fake and low quality product can bring threats to Fletcher Constriction Company Ltd.

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 Online channel can reduce the demand for products of the Fletcher (Fletcher Construction,
2018).
 The changing consumer buying behaviour of this company will further reduce the supply chain.
 New technologies developed by other construction companies can create serious threats for
this company.
 The government of New Zealand can apply new environmental policies to protect environment.
As a result, the company may loss some factors to use in future (Isaksson & Linderoth, 2018).
 The demand of this company varies seasonally. Hence, this will further negatively affect the
profitability conditions of the company in short-run and medium-run.
 This construction company can also face threats from the shortage of qualified labourers,
project complexity and environmental sustainability (Chang-Richards, Wilkinson, Seville &
Brunsdon, 2017).
Future growth plans and strategic development:
Corporate Business Strategy:
Fletcher can expand its business by utilising its opportunities in practical field. For doing so, the
company can apply corporate level strategies and business level strategies. Under corporate business
strategy, the company can change its scope according to a changing environment of business by
configuring its resources. Moreover, they can enhance the level of expectations of their stakeholders by
enhancing their level of competitions (Furrer, 2016). In this context, the company can adopt dynamic
nature. This will further help it to expand their business under the construction industry by adopting
more projects. The company should also follow long-term nature by adopting some long-term plans. By
provides various training, career progression and development programmes they can improve working
skills of their workers. Fletcher should also adopt some business strategies that will further help them to
fulfil their business goals. Taking advantage of new taxation policy, developing of construction market
and new markets can further help this company to implement their business opportunities in practical
field. Firstly, the company can grow further by enhancing revenue, sales and profits ((Sull, Turconi, Sull
& Yoder,2018). Secondly, Fletcher can use more resources to increase their product value. Lastly, the
company can adopt diversification strategy to compete with other firms.

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Business level strategy:
The company should chiefly focus on the customer satisfaction. By adopting business level
strategy, Fletcher can do this. The firm should give value to its customers and earn competitive
advantages by applying appropriate strategy. In this context, Fletcher should provide importance to its
customers. On the other hand, to establish a competitive environment, Fletcher can apply various
strategies related to business (Rothaermel, 2015). These are cost leadership and Porter’s five forces
model. Those will help the company to utilise its opportunities under a competitive business
environment.
The leader of the Fletcher construction company ltd. takes various steps to develop the
competitive advantages of this company in the market. For doing so, the company adopts various
strategies related to creativity, innovation and technology (Fletcher Construction, 2018). Those
strategies will further help the company to sustain in the market in future, as well. Each construction
company enjoys a positive relationship between innovation and productivity. New technologies and
innovative approaches help a construction company to improve its performance level at a same cost
level or at much lower cost level. However, the scope of innovation is lower in construction industry
compare to other industries. On the other side, many business leaders and strategy development
managers cannot actually understand the relation between innovation and productivity. Innovation can
be of various types. These are related to product, design, tool, function, technology and method of
production. The company can get various benefits by adopting a good and efficient innovation idea. The
leader can save direct cost of production by utilising all resources completely ( Nason & Wiklund, 2018).
This idea also saves the time of production and increase the quality of the construction project. On the
other side, new method of innovation can also enhance the level of safety, environmental condition and
communication with stakeholders under the construction procedures.
Innovation and productivity:
To understand the relation between productivity and innovation, it is very important to know
about the concept of innovation and productivity, under a construction company. Productivity implies
the relation between output produced and input used to produce this output (Matinaro & Liu, 2017). On
the other side, innovation means producing an output in different and better way by applying new
processes or procedures. In a business organisation, the CEO or Chairman of the company takes decision
regarding this innovation. They always try to adopt new technologies to so that the total cost level will
remain at a low level. On the other side, innovation can be related to the business ideas. For each

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business organisation, new business strategy and marketing idea are very essential. This will give the
organisation a dynamic business status (Ishikawa & Suzuki, 2018). Otherwise, it can loss its position in
the growing competitive environment. Those new business ideas and marketing strategies help the
company to compete with its other competitive companies.
This same thing is applicable for the Fletcher Construction Company Ltd. the company has made
various construction projects, where they can utilise their innovative idea and can enhance their
productivity. For example, the company has purchased a new model of crane from Germany. By
applying this, the company has constructed tallest tower in New Zealand (Fletcher Construction, 2018).
The company is also building under water tunnels to enhance infrastructure facility.
Strategic development of Fletcher Construction:
The Fletcher Construction Company has a wide range of business through New Zealand and the
South Pacific. The infrastructure division of this company operates as a construction contractor in the
mechanical, civil, infrastructure and industrial sectors. They undertake various projects with a high level
of complexity and full range of scale. Hence, it is very important for Fletcher to apply new innovative
ideas and business strategies for maintaining a strong position in the construction market. The company
provides infrastructure related to transport and utilities. This will provide the country better connections
and faster way to communicate. They try to utilise all environmental factors completely, without
destroying these. Moreover, they construct commercial and public buildings to create more liveable and
vibrant cities. They construct building for the central and local governments and for the common public,
as well. The company also expands its business in the south pacific region. They have remained as an
integral part of the modernisation and development of this region, since 1946 (Fletcher Construction,
2018). They permanently operate their business in Fiji, Papua New Guinea, Tonga and other places. This
company offers its best construction methods in international markets and support their local
understanding and broad connections. The Fletcher has constructed various significant projects that
include building and infrastructure, bridges, airports and institutional buildings. Moreover, they supply
materials for educational and community institutions. Hence, by providing all these services, the
company is enhancing their demand in the domestic and international market. Moreover, by
undertaking those steps, the company can compete with its competitors under a strong competitive
environment. The company can undertake those projects under a perfect leadership ( Hon, 2015). In
future, the Fletcher can also take projects that are more complex if it has perfect leadership strategy and
a perfect leader.

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The role of management:
The role of management is very important for each business organisations to operate their
business efficiently. Management helps to generate an organisational system for company. It also
creates integral operations to perform efficiently. Hence, a reputed company like the Fletcher
Construction must need efficient members within their management board. Those members actually act
as the chief leader of a business organisation (Goetsch & Davis, 2014). Management performs six basic
functions to develop a business organisation. Those are proper planning, organising and efficiently
staffing. Moreover, the board of management will also provide proper leading, controlling and
motivating entire operations. This management team operates under different significant levels of the
construction process.
Dimensions of organisational culture profile:
To identify, manage and measure the working culture of a company, various dimensions of
Organisational Culture Profile (OCP) are needed to describe. This will help the company to manage a
relationship with their workers. Hence, the firm should be detail-oriented, innovative, outcome-
oriented, aggressive, people-oriented, team-oriented and stable (Supriadi & Pheng, 2018). Moreover,
mangers can attract skilled workers and influence their enthusiasm positively by applying this program.
The Fletcher Construction has made a great team with efficient engineers, mangers and other
workers to provide efficient workers (Fletcher Construction, 2018). They work with their customers to
construct better building communities and economies so that people can live a better life.
Management hierarchy:
Under the management team, the members operate their business according to a management
hierarchy. Top-level managers are the chief leader of an organisation. This team has board of directors,
president, vice-president and CEO. Their chief function is to take responsibility for implementing
planning and directing the overall organisations (Frederick, 2017). In the middle level management
system general managers, branch managers and department mangers operate their business. They
operate their managerial functions for their individual departments. Moreover, they perform more
functions compare to top-level managers. At the end of the hierarchy, the first-level managers are
included. They are supervisors, section leads and other similar positions. Their chief function is to
control and direct other employees, who perform under them.