Mace Construction: Strategic Challenges and Solutions Report

This report provides a comprehensive strategic analysis of Mace Construction, a global consultancy and construction firm. It begins with an introduction to Mace, followed by a critical analysis of its strategic position, key success factors, and the challenges it faces, including Brexit and COVID-19. The report uses PESTLE, SWOT, Porter's Five Forces, and VRIO frameworks to evaluate the external and internal environments. The analysis identifies key strategic challenges and evaluates potential solutions, focusing on practical implementation. The report highlights the importance of innovation, market share expansion, and adapting to technological advancements within the construction industry. The analysis concludes by offering recommendations for Mace to navigate its challenges and achieve its organizational goals.

Mace

Table of Contents
INTRODUCTION...........................................................................................................................3
Q 1: Critically analyse the strategic position of your chosen (for-profit or non-profit)
organisation through a critical evaluation of the critical/ key success factors (KSFs) in the
market or sector your chosen organisation operates. Parallel to the above analysis you are
required to identify and evaluate the main strategic challenges impacting your chosen
organisation in the short to medium term....................................................................................3
Q 2: From your answer to Q 1, select ONE key strategic challenge; identify and critically
evaluate the various potential solutions that are available to the organisation in relation to this
strategic challenge.......................................................................................................................7
Q 3: Following on from your answer to Q 2, critically analyse how the organisation could
(practically) implement your recommended solution..................................................................9
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management is defined as an important factor that is helpful for a company to control
and handle various business activities. For any organisation, it is important that they must be
having proper planning so that organisational goals are achieved in specified time. The following
report is based on Mace. This is a global consultancy and construction firm which has
headquarters in London. There are approximately 5000 employees working in this organisation.
This is a company which was founded by a group of construction and it was founded by Ian
Macpherson. The different operations that this company is conducting are programme and
project management, cost consultancy, construction delivery, etc (Hudecheck, and et. al, 2020).
This report will help in understanding what are the strategic challenges that a company faces
within market. This includes various problems related to the company while strategic position of
the company.
Q 1: Critically analyse the strategic position of your chosen (for-profit or non-profit)
organisation through a critical evaluation of the critical/ key success factors (KSFs) in the
market or sector your chosen organisation operates. Parallel to the above analysis you are
required to identify and evaluate the main strategic challenges impacting your chosen
organisation in the short to medium term.
PESTLE analysis of Mace
Pestel analysis is done by the Mace construction company for analysing the functioning of
company in accordance with political, social, economic, technological and environmental factors
which are prevailing within the external environment. An effective research is required by this
company e in order to lead construction industry and generate good profit.
The pestel analysis of construction industry helps in in analysing the various external
environment factors which impacts The functioning of company. Pestle is defined as the
management technique used for identification of external risk faced by the company(Du, and
Chen, 2018). Construction projects are very different from common business operations.
Different construction projects are assigned to Mace construction company for generating profits
and revenue. There are are various characteristics of the construction projects such as non
tradability of output, huge amount of cost because of heavy investments, etc. There are chances
of lot of risks within construction projects. The construction companies have to incur losses

because their working includes lot of risk. The different factors of PESTLE analysis in context of
Mace construction company are described below –
Political factors - these are defined as those factors which highly affect functioning of
construction company like Mace. There are several kind of permits as well as documentation that
has to be done by various construction companies in order to work effectively. In the
construction process of working, there are several type of documentation which is done by the
help of government regulations and rules (Mohammed, 2017). The political factors like
government regulations, construction industry laws, legal laws of business given by government,
etc. Are adopted by Mace construction company e for or doing business without any e problem.
Economic factor - the economic factors are defined as those factors which consists of economy
functions. These have direct impact on function and working of any company. When there is
increase in in inflation rate in economy, then this effects the way in which Mace organisation is
setting the price of product. By taking into consideration various economic factors, Mace
construction company develops change in model of supply and demand. The different economic
factors consist of foreign exchange rates, economic growth, inflation rates, patterns, etc.
Social factors – These are defined as the factors which affect the functioning of any
organisation. It is essential for the construction company to analyse all the demands and needs of
customers while working in the construction company (Engelseth, and Le, 2017). It is important
for this company to maintain the effectiveness of the company by analysing demands and needs
of the company. The social factors includes different events which affects market and
community in social manner. There are various merits as well as demerits of individuals who
have to stay in places where construction projects are organised. Some of the social factors on
which the company works includes global warming, population, cultural expectations, career
altitudes, etc. It is very essential for the company like Mace construction to analyse the needs and
wants of customers before involving into various construction projects. For a construction
company, it is concluded that they are working effectively for managing and handling various
constructions and design.
Technological factor - these are defined as factors which are related to use of latest techniques
and tools within the company. It is very important for every successful organisation to adopt
latest techniques within the functioning for generating huge amount of revenue. In context of
Mace construction company, new innovations and change in technology is faced by this

company everyday. The construction industry operates different activities and functions by
adopting new techniques that are favourable for market condition. This is associated with the
technological advancement which is required by company to sustain in market for longer period
(Nguyen, 2017). Technology becomes obsolete within few time after its launching. Thus, it is
essential for or the company to consider it.
Legal factor - according to this factor, there are several legal considerations such as resources,
quotas, imports and exports, employment, etc. Legal factors affects both internal as well as
external functioning of Mace construction company. There are some laws which can bring
change in external environment of business. On the other hand, there are numerous policies
which are given to the construction industry companies in order to work in proper manner and
attain organisational goals. Different legislations and laws given by government are adopted by
Mace construction company so that there is no hurdle which can stop this company to conduct
profitable operations.
From the above analysis, it is concluded that Mace construction company has the
objective of developing good construction projects so that it can make more money and increase
the number of clients. The above analysis shows that this company is having great opportunity
within market for developing growth and sales. In context of the construction industry, it is
essential that they are managing to accomplish the projects by following different agreements
and contracts (Pettersson, and Petersson, 2017). Moreover, there is need of managing the legal
regulations and rules for achieving the targets and goals of the company.
SWOT analysis of Mace
Strength - Innovation is very important in construction industry. Mace construction company is
one of the well reputed organisation of UK. It is serving since many years across the world. This
company is always involved in in innovative projects in construction which are are conducted in
less time. Lis company always adopts new and latest approaches which is helpful in completing
and innovating new projects. Mace construction company is involved in using modern methods
of construction and collaborating with clients to provide them effective services. This company
has strong competitive advantage as it is using latest techniques and tools while operating
business activities.
Weaknesses – Mace construction company is always involved in using the new innovation and
latest technology in its functioning. In order to to work properly, labours and employees have to

learn the new working practice for reaching the economics of scale. The culture of adopting new
working practice is a hurdle for the company e as it reduces the pace or Speed at which the
company functions (Kimura, 2019). This company spends a lot on innovation and development.
But in case of construction companies, there is no need of having new innovations and also deal
innovations do not drink much change in construction projects.
Opportunities- Mace construction company has an opportunity develop its market share and
enhance the number of loyal clients. This company e is offering quality services since many
years in UK, thus this company has the opportunity for increasing the market share by
establishing business in various countries. By using the the new construction techniques, Mace
construction company can start new business in different parts of the world. Construction
industry requires quality work and loyalty. This company is offering services since several years.
It has great experience with loyal customers and thus it is insured that this company is making
profits. This company has devolved responsibilities which provides local area control. This
enables to support innovation in construction. Maceconstruction company has the opportunity for
becoming a world leader in MMC. This will help in minimising the use of energy and less waste.
Threat – This construction company is having lot of threats in market. The use of new
innovation in construction technique depends upon various projects. It is not easy to convince all
people for using the new innovation technologies. Secondly, the other problem which is threat
for this company in market is economic downturn. If any project is failed for the companies not
able to accomplish it in specified time frame,then there is low reputation of the company in front
of potential clients. This declines the the profit opportunities in business. The construction of this
company is mineral used for impressing innovation and adopting new techniques.
From the SWOT analysis, it is analysed that this company has several opportunities to
establish it’s market share within different countries. It is important or this company to work in
proper manner and by using the latest technologies, this company will be able to manage the
functioning of the company effectively. It is essential for the organisation to know what are the
challenges that can trouble the smooth running of construction activities. In context of the
present case in Mace construction, there are two big problems and threat Brexit and COVID- 19
which have impacted badly the functioning of the company. It is necessary for mace construction
to manage and handle these hurdles in an effective manner and meet the organisational goals in
time.

Porter’s Model for construction company
 The Threat of New Entrants; (LOW) - The construction Industry is very capital intensive.
It needs various Regulatory approval and licensing as well as there is need of high
operational costs.
 Bargaining Power of Customers: (High) - The Buyers are the clients and end users of the
construction industry. They can be government bodies, a consortium, or high net- worth
individuals. Firms need to keep a good name and work ethic to keep business, win repeat
business and win new business from referrals.
 Bargaining power of Suppliers: (LOW) - Supplies are many and products and services
can be substituted. New products are constantly coming into the market and there is need
of the construction companies to meet the demands of customers by switching to the
supplier who is able to provide the latest technology tools.
 Threat of Substitutes: (LOW) - Products and services in the construction industry do not
have any substitutes.
VRIO of Mace
The VRIO framework is defined as the strategic management tool that is used for
analyzing the strength and resources of the company. This is helpful in identifying the internal
strength as well as resources which are helpful in competitive advantage. The analysis of the
company depends upon an objective of internal resources of firm. It is essential that company
must have competitive advantage and all resources must be valuable, rare, imitable,
opportunities. This is meaningful for the Mace construction company that the company is able to
identify the internal resources as the source of sustained competitive advantage. On the basis of
analysis, each and every resource provides competitive advantage, good competitive advantage,
competitive parity, temporary competitive advantage and competitive disadvantage. On the basis
of analysis, it is essential that a sustained competitive advantage exists when resource is
valuable, imitable or rare. It is essential that Mace construction is working in proper manner for
managing and handling new innovations within the construction company (Bembenek,
Frankowska, and Kowalska, 2018). This company is having good competitive advantage and it
is able to manage the work in proper manner. This is essential for the company to have proper
working condition and manageable work.
Strategic challenges faced by mace construction company

The strategic challenge faced by mace construction company includes Brexit and Impact of
Covid on the business of the construction company. This organization has to work hard for
attaining stability in market. After the case of Brexit, this company is facing lot of trouble with
the foreign projects. The countries in European Union are becoming a hurdle for the success for
this company. Nowadays, the biggest problem faced by this company is a disease which has
affected the whole world – Corona Virus disease/Covid. According to the statistics given by
experts, it is seen that COVID-19 will have long term ramifications for different aspects of
construction companies like Mace.
Balance score card for mace (construction company)
A performance measurement method and strategic management tool for measuring both tangible
and intangible assets. There are different perspectives towards balanced long-term strategic
goals. This is used for translating strategy and vision into critical success factors. There are
correlations and causations in the cause-and-effect relationships of four perspectives.
Improvement in one area will contribute to the driving of improvement in other elements and
“Chain Process” is achieved.

Vision and strategy in the balance scorecard
The vision and strategy are translated into objectives and are communicated and aligned to all
levels. A business plan for allocating resources or budgets is important. There are Feedbacks
and learning processes should be implemented. There are Different market situations, business
climates, competitive environments require different scorecards.
There are various examples of Success Factors –
 Learning & Growth Perspective – there are huge chances for the construction company to
manage it’s work and increase it’s revenue.
 Employee turnover (%) – This is an important issue of the balance score card that
provides information about the position of company
 CPD training hours – These are provided to the employees for increasing their skills and
abilities.
 R&D expense - There is need of continuous development in the construction company so
that there is increased revenue of the company.
Q 2: From your answer to Q 1, select ONE key strategic challenge; identify and critically
evaluate the various potential solutions that are available to the organisation in relation to
this strategic challenge.
The Mace construction company is working effectively and earning profits earlier. After the
breakdown of global corona virus pandemic, this company is also affected by any other company
of the world. There are various problems faced by different construction companies in capturing
potential customers. This will affect sales and growth of the company. The construction
companies are known to be doing business by adopting and challenging various kind of risks.
When the construction industry entered 2020, the fallout from covid-19 coronavirus became
threat for the construction firms. This pandemic will have ramifications for different aspects of
Mace construction company. Some of the factors are mentioned below-
 Construction materials - the different contractors working in in Africa or UK take
construction materials from China. The Chinese government had to Quarantine and it is

also put containment efforts which have minimised the functioning of various
companies. Also several factories are shut down which has led to reduction of production
of construction materials. Mace construction company takes several Chinese made
materials are goods but now due to the Quarantine, this company is unable to take
construction materials.
 Labour - mostly all of the countries across the world are shut down due to the spread of
coronavirus. In order to prevent the spread of this virus, various colleges, schools,
businesses as well as various organisations have been shut down. Similarly, Mace
construction company has taken a step for closing the company in order to to maintain
the workforce. This shutdown and bang reflects that these organisations must need to be
teleworking. Deccan use several technologies for keeping their business run smoothly.
But, in practical world it is not possible for construction companies to work virtually by
sitting at home. this has lead the construction of buildings as well as infrastructural
projects to be delayed.
 Construction contracts – The Coronavirus pandemic was unforeseeable. The contractors
are responsible for delay of current projects. It is important for Mace construction
company to analyse all the contracts it was working upon. This company mast consider
all the notes which were involved in different contractual agreements. This will help in
termination or suspension of various situations and circumstances.
 Project financing- there are possibilities that lenders are not able to do the finance for
several construction projects. As there are various uncertainty within surroundings so it
is not able to complete the projects within time. The lack of labour and construction
materials is slowing down. This will provide problem in in working up on the ongoing
construction projects. Thus, it is essential for Mace construction company to analyse the
situation and handle them in proper manner.
Mace construction company has focused on internal communication as well as external
communication for managing the strategic challenge caused due to covid-19. Internal
communication is related to the help given to employees in understanding and analysing the
effect of covid-19 on the job. This includes informing them about the best practices for limiting
the risk and being safe at workplace. There is a company area on the internet where all the
questions related to this virus can be solved. There is regular communication and updates are

given from the company’s leaders who provide information related to do the pendamic. If there
will be chance of of work from home policy, the company well search for technology that can be
helpful for all workers and employees (Hameed, and Abbott, 2017). There is also
implementation of health screening at various locations of organisation. Employees are make
understand the concept of social distancing and how they can achieve it at work as well as home.
Employees are helped by giving health insurance coverages. There is implementation of
appropriate associations as well as unions in the communication plan of company. On the other
hand, external communication is also used in construction company in which contractors are the
critical factors for success of company. These are badly affected by covid-19. It is essential for
the company to have proper external communication plan which film include information about
lending institutions, banks, leasing companies, etc. It is important to analyse conditions and
terms of all the agreements and then evaluating the termination of contract. It is important that
the action plan is assessed for all the job sites. If the worker comes in contact with virus while
performing the job duty, it is a reportable incident for occupational safety and health
administration. The family of worker will be compensated if some something bad happens with
the worker.
Q 3: Following on from your answer to Q 2, critically analyse how the organisation could
(practically) implement your recommended solution.
There are some recommendations made for the Mace construction company. Due to the
coronavirus resource pandemic situation, whole world is facing trouble. In case of construction
companies there are several issues which have to be solved and managed properly in order to run
smooth business.
 A possible issue that will occur due to covid-19 is that construction industry must prepare
some potential struggles for the sub contractor if construction site is shutdown. Various
government of the country are supporting lockdown and they are not allowing any
business operations or functions in site. Due to this, there are chances that Mace
construction company can become insolvent. This will create stress in business. Thus, it
is recommended that this company should work closely with government and
subcontractors as well as all the workers must be provided emergency measures for
assisting in case of construction site shutdowns.

 As Mace is an engineering and construction company, it may face continue downward
pressure and problem in supply chain because of the covid-19 pandemic. There will be
delay in in private projects as well as government projects given to the company. This
scenario will increase the cash flow liquidity challenge. There will also be increase in
management of debt obligations.
 The workforce of company may be vulnerable because workers have to work at places or
site which are located at remote areas. This company has to find several ways for
imposing social distancing bye working in small crews as well as staggered shifts.
It is recommended to this company that it should consider refinancing debt. It has to work ok in
relation with municipal, federal as well as State Government for coordinating the plans of worker
safety (Gruneberg, 2018). Just company should help in assessing labour cost and analyse
contingency planning of workers.
 The construction company has to prepare an immediate plan for contingent safety
measures that will be provided to workers and employees. This is helpful in deciding that
which of the function should be carried out remotely. The construction company e must
plan for minimising the cost structure as well as capacity. This will help in having
potential staff.
 As the event of covid-19 is out breaking and it will affect companies and workers badly.
It is advised to the company that it should consider need for outsourcing various
corporate functions like shifting of non cooperating functions two contractors and
moving it to the cloud. These type of changes are helpful in in reducing operating cost as
well as eliminating expenses of maintenance.
 Mace construction company should ensure that all employees are safe and they know
how to protect themselves from this virus. The management must institute the sanitation
regulations as well as rules in workplace. It should assess the mobility policies for
encouraging work at remote areas. is employees are not feeling well or if they are sick,
they must be sent home. When there are staggered shifts, employees and workers will be
away from each other at construction sites. Also, non essential travel is also eliminated in
this company.

 This company will establish risk mitigation programs for workers who are working on
site. This company can invest in in education campaigns so that they know what is to be
done for minimising spread of covid-19 disease.
 Also, there must be considering action of potential workforce scenario for minimising
labour cost. The management it was necessary data of employees and is tracking their
movements during the crisis. it is taken care of that which function can be outsourced for
helping operating costs.
 The construction company e must prepare for the weakening links of supply chain. There
are some suppliers in windows which are going to face operational as well as financial
struggles at this time of pandemic. The construction company will experience supply
issues. The construction company can work deeper into supply chain management. This
company can transfer new knowledge regarding the supply chain and also update new
practices as the situation of pandemic evolves. This needs increase in transparency of
supply chain bi daily self reporting with the critical suppliers.

REFERENCES
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