Keystone Excavating Inc. Strategic Analysis & Recommendation

This assignment provides a comprehensive strategic analysis of Keystone Excavating Inc., identifying key issues such as ineffective mission statements and challenges in a competitive business environment. The analysis includes a SWOT analysis outlining the company's strengths, weaknesses, opportunities, and threats, as well as a PESTLE analysis examining the political, economic, social, technological, legal, and environmental factors affecting the company. Porter's Five Forces are also applied to assess the competitive intensity within the industry. The assignment explores strategic alternatives, including workforce management software implementation, technological innovation, new product development, and effective marketing strategies, ultimately recommending the implementation of an effective marketing strategy through celebrity endorsement to build a strong brand image. The appendices include a balanced scorecard template with financial, customer, internal, and innovation and learning perspectives.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................2
Identification of issues.....................................................................................................................2
Environmental analysis....................................................................................................................2
Strategic alternatives........................................................................................................................6
Final recommendation.....................................................................................................................9
Implementation................................................................................................................................9
Reference list and bibliography.....................................................................................................10
Appendices....................................................................................................................................11

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Introduction
Identification of issues
Analyzing the key issues faced by Keystone Excavating Inc. it can be said that the
ineffective mission of the company can create challenges for surviving in the competitive
business environment. Due to the inappropriate vision of the company, the development process
in Keystone Excavating Inc. can get delayed. In that case, external risks of the company can
create barriers for achieving long term benefits. Due to law barrier of entry increasing numbers
of competitors in the Alberta industry can create challenge for Keystone. After the introduction
of technological innovation, the necessity of huge numbers of employees has been decreased,
which has driven the employee dissatisfaction. Analyzing the emerging market situation of
Keystone, it can be said that inactive participation of management towards the marketing and
promotional activities are the important challenges faced by the company. Due to poor market
mark expansion strategic initiative, the company can face tough vulnerable economic climate in
the near future. by continuing this, it can said that inadequate mentoring and lack of
understanding of the business opportunities, Keystone can face major challenges for sustaining
in the market.
Environmental analysis
SWOT:
Strength Weakness
 Standard quality of services are being
provided by satisfying the social
 The company mainly focuses on short-
term goals
 Ineffective business values of the

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values
 High employee retention rate made
Keystone popular in the market
 High sensitive environmental projects
and complex infrastructure projects
are being handled by the company
 Mobile workforce management
solutions have been adopted by the
company which has increased its
accessibility in the market
 The company has strong social
impact.
company can create sustainability
challenges
 Increasing business opportunities, the
numbers of competitors in the market
is high.
 In effective marketing and
promotional strategies
Opportunities Threats
 The construction industry is growing
in the fastest manner that can bring
business opportunities for the
company.
 Lack of management succession plan,
the market risk of Keystone can be
increased.
 Raising unemployment rate and
negative economic outlook are the
major threat for the company
 Changing climatic policies and carbon
taxation rate new construction projects
of the company can get influenced.
(Created by author)

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PESTLE analysis
Political Economic
Canada has a powerful political environment,
where the strong government hold in trade
industry can create the strong impact on
business performance of Keystone.
In between the year 2014-2016, due to decline
oil price the economic investment in Alberta
has been decreased. After the two year of
recession, economic situation in this country
has been improved with the GDP rate 3.0% in
2017 (Koptseva, 2015).
Social Technological
Due to the diversified culture in Canada, new
comers are being appreciated by the trade
industry (Raphael, 2018). However, shortage
of skilled workers, flexible immigration
system has been introduced by the
government. In this situation, it will be easier
for the company to maintain its efficiency in
the market.
Canada has a strong technological
environment. The data protection Act is
effectively being followed in this country
(Koptseva, 2015). On the other hand,
innovation in the machinery equipment can
help Keystone to gain the market
competitiveness.
Legal Environmental
Employee protection and Canadian Human
rights Act prohibit the discrimination in the
workplace, which helps to develop effective
employee standard. In this strict legal
environment, it will be beneficial for the
By following the strong environmental
guidelines, the waste management initiatives
are being improved. Keystone has involved it-
self in different social sustainability program,
in that case it can be assumed that the external

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company to develop strong organizational
culture that can help to gain business benefits
(Beland & Koreh, 2018).
environment will be beneficial for Keystone
(Raphael, 2018).
(Created by author)
Porters’ five forces
Threat of entry
 Large numbers of potential competitors
 Economic regression and declined oil market
 Strict government policies
 Reducing numbers of investors
Power of suppliers
 The complexity of trading process
 Coordination with the general contractors has secured the resources and material
 High numbers of competitors in the market increases the power of suppliers
Power of buyers
 Numbers of buyers are limited
 Due to increasing organizations in the market, buyers profit margins is high
Threats of substitute products
 With increasing competitors in the construction industry, threats from substitute products
are high
 Value proposition of the substitute products are influencing depending on the low prices

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Rivalry
 Competitors namely Ledcor Alberta ltd, Carlson construction Ltd and Ledcor Industries
Ltd can create threat for Keystone.
 With the strong competition can create contractual obligations for the company
Strategic alternatives
Alternative #1: Implementation of workforce management software
Assess your strategic alternatives in terms of the positive and negative implications on the firm's
reality (skills, capabilities and resources).
Positive implications Negative implications
As per my understanding, depending on the
workforce management software, the
company can be able to encourage its
employees towards achieving the
organizational goals.
Due to lack of skilled employees, it will be
harder to implement the strategy.

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Alternative #2: Technological innovation
Positive implications Negative implications
Technological innovation can be introduced
for improving the production process.
Technological innovation in the construction
industry can be expansive, which can create
financial challenges for the company.

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Alternative #3: New product development strategy
Positive implications Negative implications
Positive implications Negative implications
In order to deal with competitiveness,
effective marketing strategy through the
celebrity endorsement can be introduced. It
will be beneficial for the organization to drag
the attention of large numbers of customers.
In order to introduce celebrity endorsement
program, the huge amount of investment is
required.

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Alternative #4: Effective marketing strategy through the celebrity endorsement
In order to deal with competitiveness,
effective marketing strategy through the
celebrity endorsement can be introduced. It
will be beneficial for the organization to drag
the attention of large numbers of customers.
In order to introduce celebrity endorsement
program, the huge amount of investment is
required.

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Final recommendation
By introducing the effective marketing strategy through celebrity endorsement, it will
be easier for the company to develop its strong brand image on customers mind. On the other
hand, the strategic initiative can help to manage the strong brand reputation of the organization.
Implementation
Refer to appendix 1

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Reference list and bibliography
Beland, D., & Koreh, M. (2019). Social Insurance as Fiscal Policy and State-Building Tool: The
Development and Politics of Payroll Contributions in Israel and Canada. Journal of
Social Policy, 48(1), 1-20.
Carty, V. (2017). Case Studies of Protest Activity in Canada and the United States. Social
Inclusion and Usability of ICT-enabled Services.
Koptseva, N. (2015). Current economic situation in Taymyr (the Siberian Arctic) and prospects
of indigenous peoples’ traditional economy. Економічний часопис-ХХІ, (9-10), 95-97.
Perkins, J. O. N., English, M. D., Nieuwenhuysen, J. P., & Rowe, J. W. (Eds.). (2020). Macro-
economic Policy: A Comparative Study, Australia, Canada, New Zealand and South
Africa. Routledge.
Raphael, D. (2018). The Social Determinants of Health of Under-Served Populations in
Canada. Under-Served: Health Determinants of Indigenous, Inner-City, and Migrant
Populations in Canada, 23.
White, S., Bilodeau, A., & Nevitte, N. (2015). Earning their support: feelings towards Canada
among recent immigrants. Ethnic and Racial Studies, 38(2), 292-308.