Strategic Management Report: Morgan Sindall Zero Accident Goal

This report provides a strategic management analysis of Morgan Sindall, a construction company, aiming to achieve zero accidents by 2035. It begins with an introduction to the company, its vision, and mission. The report then delves into external analysis using the PESTEL framework and internal analysis utilizing a SWOT analysis. It explores strategic frameworks such as Porter's Generic Framework, BCG matrix, Balance Scorecard, and Hoshin Planning to develop strategies for achieving the zero-accident goal. The report also includes discussions on feedback and monitoring methods like PDCA and KAIZEN, and concludes with recommendations for Morgan Sindall. The report is based on a case study assignment for Coventry University students, focusing on theoretical and practical aspects of strategic management within the construction industry.

STARTEGIC MANAGEMENT
To Become Zero Accident Construction Company by 2035 with incremental values each
year

Table of Contents
Introduction................................................................................................................................3
Vision.....................................................................................................................................3
Mission...................................................................................................................................3
Analysis......................................................................................................................................3
External Analysis....................................................................................................................3
PESTEL..................................................................................................................................3
Internal Analysis.....................................................................................................................7
SWOT.....................................................................................................................................7
Strategic Vision..........................................................................................................................8
Framework..............................................................................................................................9
Porter’s Generic Framework..................................................................................................9
BCG......................................................................................................................................10
Balance Scorecard................................................................................................................10
Hoshin Planning...................................................................................................................11
Feedback and Monitoring........................................................................................................13
PDCA...................................................................................................................................13
KAIZEN...............................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................14

Introduction
Morgan Sindall was founded by John Morgan and Jack Lovell with about 1000 pounds which
was a joint saving in the year 1977 and was based at Golden Square. The construction
company acquired Overbury which was a construction company in the year 1985. This was
followed by the listing of the concerned company in the London Stock Exchange in the year
1994, when it was observed to enter into a reverse takeover of William Sindall plc. The
current chairman of the company is Adrian Martin with the chief executive officer being John
Morgan. The company had a revenue of 2972 million pounds in the year 2018 with number
of employees being 6600. The company’s work has been appreciated since it started off but
was known at a large scale for the work it executed on the University of Cambridge. In the
year 1998, Lovell Partnerships was bought by Sindall for about 15 million pounds from the
financially stretched Lovell Group. It was the biggest partnership housing operations all over
the country. The construction arm of AMEC was purchased by Morgan in 2007 and in the
year 2010, it purchased the repairs division of Cannaught plc (Morgan Sindall Group, 2019).
The report aims at providing with the most suitable strategies for the company to achieve its
objective of giving zero accident construction by 2035. This would include the external and
the internal analysis which would be followed by some specific strategies for achieving the
objective set. The report by the end, would provide specific recommendations too, which
could be utilised by the concerned company in order to gain or achieve the objective.
Vision
The vision of the company is to serve its clients and customers with the best products and
establish a construction trend which would be safe and secured for the people of the country.
Mission
The mission of the company is “To Become Zero Accident Construction Company by 2035
with incremental values each year.”
Analysis
External Analysis
PESTELFactors
Analysis
Political The economy of United Kingdom has been

deteriorating in the past few years for which
the government has taken several steps in
favour of the economy through monetary as
well as fiscal means. The control of the
government has been quite stable in the
concerned country and this has been the
reason for stating the country to be on the
satisfactory political stability condition by
World Bank’s governance in the year 2007
(Jones et al. 2018). The infrastructure of the
country is expected to improvise through
lowering down the interest rates and thus
the infrastructure executions would be
enhanced. Transportation and Infrastructure
Bill containing large infrastructure projects
has been aiming to develop the concerned
industry in UK.
Economic The financial crisis has slowed down the
market growth in UK, and the infrastructure
industry which is one of the capital
intensive industries has been significantly
suffering from it. The volume of
construction works as well as of the
investments decreased because of the crisis.
The gradual development of the country has
prided with the information that in the next
10 years the infrastructure sector would
grow 4% annually. The economy of the
country has been growing and this has been
supporting the infrastructure industry too.
The industrial sector has been known for
accounting for about 34% of GDP in the
year 1990 which reduced to 28% in 2008.
These fluctuations has been impacting the

construction industry too but the gradual
growth of the construction industry through
the increased investment has been serving
well to the economy.
Social United Kingdom has been one of the
country’s which has been experiencing the
diverse social life and this has been
impacting the working culture of the
country too. The government has been
facing multiple challenges in creating a
balance between the social life and working
life as the country has been demanding
some high involvement of the people in the
service sector (Truong et al. 2018). The
growing population of the country has been
demanding the high development of the
infrastructure facilities and thus, the
construction industry has been gaining
business. The construction industry has
been in demand as the country required to
develop infrastructural facilities.
Technological The developing technological industry has
been impacting all the other industries at a
wide and broad aspect. The technological
innovations has been providing the people
with some productive and innovative ideas.
The construction industry has been one of
the industries which has gained through the
technological innovations as it provided the
construction industry with new ideas and
ways of constructions. The infrastructure of
United Kingdom has been developing
through various techniques and this has
reduced the costs of the industry and added

n to the productivity of the industry. The use
of latest technology in the construction
industry has been improvising the industry
workings and thus providing a new concept
of constructions.
Environmental United Kingdom has been regulated by
Defra concerning the environmental issues,
which is a governmental department
responsible for the environmental
regulations to be followed in the country.
The department has provided with some
strict regulations and has set standards to be
maintained in the environment which is
favourable for the human beings. The
increasing productions of the construction
industry directly impacts the environment
and thus, the concerned standard has
provided the industry with some specific
rules and regulations which is to be
followed by it and maintain it. Though the
country requires the development of the new
buildings and infrastructure but along with
it the environment is also to be protected so
that a balance could be created in the nature.
Legal The labour laws and regulations of United
Kingdom has been quite specific in nature
and it has also maintained a diversity in the
law. European Working Time Directive
provides the labour with an option of
working more than the specified hours to be
worked in a week under European Labour
law. Along with it the Employment Rights
Act, 1996, The Employment Act 2002,
minimum wages act, and several other acts

has provided the labours with the wide
platform where they can opt for the best
option. The construction industry needs to
follow the minimum wages act under strict
regulations along with it the labour safety
and security all has to be maintained.
Internal Analysis
SWOT
Strengths
 Skilled Workforce
 Smooth Cash Flow
 Sustainable Track Record
 Strong Distribution Network
 Customer Satisfaction
Morgan Sindall has been one of the leading
companies of its industry and it has been
gaining its goodwill and brand image
through its sustainable and smooth going
track records. The company has channelized
its human resource in such a manner that it
has added on to the company’s strengths
and the skills has been helping in providing
quality products and services to its
customers and clients. The skilled
employment has provided the company with
a strong distribution network which has
been sustained through maintaining the
quality of goods and products (Bensefa et
al. 2017). The smooth functioning of the
company through skilled employees and
maintaining its track record with positive
data along with sustaining the quality of the
Weaknesses
 Confined to one core business
 Taking up new technologies
 Competitive Attitude
 Rigid Organisation Structure
The company has been facing multiple
challenges which has added on to the
weaknesses of the company. The company
is limited to its specialising product and it
has been facing the issue in moving towards
other product segments which would have
added on to the profits of the company
because of its goodwill (Nicholas, 2016).
The expansion idea requires to take up the
latest technologies in different countries and
thus, the investment has to be added on,
which is an issue for the company. The
investment issue is a critical one and this
impacts the other sectors of the company
too.

products and services has helped in
maintaining a smooth cash flow in the
company which acts as a fuel to the going
process.
Opportunities
 Stable free cash Flow
 Decreasing Cost of Transportation
 Government Green Drive
The strength of Morgan Sindall has created
on the opportunities for the company, the
stable cash flow has been providing the
opportunity for investing in the adjacent
products. The investment in the new
technologies could be made easy through
the smooth cash flow. The decreasing cost
of transportation would add on to the profits
of the company and thus, this opportunity
has been raised through the new policies
and regulations of the government (Keelson,
2017). The government procurement of
Morgan products by the state along with the
federal government contractors has been the
opportunity provided by the government.
Threats
 Imitation of Counterfeit
 Shortage of Skilled Workforce
The increasing competition in the market
has been adding on to the threat of the
company as the imitation of the counterfeit
and low quality products is a possibility
which would be served by the new entrants
and thus, its low price would attract the
customers. The expansion of the company
demands the skilled labour in all its
branches which is a difficult task to be
performed.
Strategic Vision
The company holds the vision of achieving a zero accident construction company by the year
2035 with incremental values each year. This vision could be achieved through taking on the
strategies concerning competition, security, follow up of all the regulations f the government
in view of construction. The competitive strategies and the security strategies would be the
most prominent ones as these two would provide the company with the intention of
improvising its work and the environment for its workers (Ouma and Oloko, 2017). This
could be achieved by the company as it has been known for its quality maintenance and the

skilled workers of the company has been contributing to the improvement too. The vision
could be achieved through following Hoshin Planning as this would help in organising the
activities in the most accurate manner.
Framework
Porter’s Generic Framework
Morgan Sindall has been one of the company’s which has been maintaining its cost structure
in a way that the entire company has been benefited by it. The maintenance of low cost has
provided the company with immense benefits and advantages be it in profits, employee
management, quality maintenance, etc. This competitive advantage of the company has been
the strength of the company and it has provided it with some fruitful and flourishing results
too (Wicker et al. 2015). A kind of cost leadership has been followed by the company which
in every possible way has been exploited by the company.
Figure 1: Porter’s Generic Strategy
(Source: Bertozzi et al. 2017)
In order to achieve the concerned vision, it is required that the differentiation factor needs to
be enhanced in the company which would provide the company with an additional
competitive advantage. The company needs to differentiate its product through taking up
some additional facilities or services for the customers and this would add on to its
competitive advantage along with cost leadership. The focus needs to be on the
differentiation as this would help in achieving a zero accident construction company. In The
differentiation focus would channelize the path of the company and this needs to be
accompanied by the cost leadership maintenance too.

BCG
Morgan Sindall provides multi-disciplinary services which has been wide in nature and the
products includes construction, infrastructure, property services, housing generation, fit out
and development. These products and services has been quite productive for the company but
on acknowledging it under the Boston Consulting Group growth share matrix, the products
has been classified on their capabilities. Construction has been the cash cows of the company
which has been observed to carry large market share. This lies in the lower left quadrant of
the BCG matrix, and are known to be the leading products (Du and Yu, 2017). The
construction services are known for providing higher rate of returns which are higher than the
market’s growth rate and has the capability of sustaining the cash flow (Omsa et al. 2017).
The housing generation is the star product of the company which has the scope of being
invested in more and also carries a sizable portion of the market. This lies in the upper left
quadrant of the matrix. The property services are the ones which are the question mark
products as it has been growing at a faster pace but the resources required are huge in
number. This lies in the upper right quadrant of the matrix. Fit out and infrastructure has been
the dog’s product of the company as it has low market share and has been growing at a lower
rate of growth. This is in the lower right quadrant of the matrix.
Balance Scorecard
Figure 2: Balance Score Card
Financial: Morgan Sindall has been gaining profits in millions and billions in the last few
years which has been creating the goodwill of the company. The current vision would be
achieved through considering maintaining the profit share of the partners and of the
shareholders. There would be no reduction in the shareholders profit due to additional cost, in

fact the improvement would provide the company with additional gains and thus it would add
on to the share of the shareholders.
Customer: The customers would gain through the vision the most as the improvement in the
services and no accident construction, would add on to the quality of services and products of
the customers (Salavou, 2015). The company has been maintaining its quality and the new
vision would enhance it further.
Internal Business Processes: The decision on the new vision has been taken with a motive to
provide quality services. This would include the process of aligning the decisions and the
activities of the company. The decision on the choice of labours and the materials would
focus on the objective of the visions.
Learning and Growth: The regulations of UK concerning the construction companies has
been specific and the company has followed it quite closely. The new vision would be
attained through considering the rules and regulations of the government accurately and it
would provide the scenario and the environment of zero accident by 2035.
Hoshin Planning
Steps Activities
Establish Organisational Vision The organisational vision that has been
established by Morgan Sindall is to gain
zero accident constructions by the year 2035
with increment in each year (Madsen,
2017). This would be the actual mission and
vision of the concerned company and it
needs to be achieved through taking up
various required steps and considerations.
Developing Breakthrough Objectives The breakthrough objectives would be as
follows
 To bring on the new services and
better solutions for the customers
and employee’s issues
 The market growth is to be achieved
through getting new solutions and
getting the jobs done by enhanced

technologies
 The disruptive growth objective is to
be achieved through entering into
the non-accident zone.
 Some new and specific solutions to
the market would be produced which
would reduce the occurrence of
construction accidents.
Develop Annual Objectives The annual objective of the company would
be to achieve the foremost objective that is
to bring on the new services and better
solutions for the customers and employee’s
issues. By the end of the year, the second
objective needs to be initiated too.
Deploy Annual Objectives The top level improvements is to be
achieved which is to be followed by the
minor and petty improvements. The
employment laws also demands some
changes and this would channelize the path
for the future improvement.
Implement Annual Objectives This is the stage when the SCORE approach
would be applied to the objectives (Linton
and Kask, 2017). This would help in
selecting, clarifying, organising, running
and evaluating of the plan would be done in
an accurate manner.
Monthly Review All the actions would be checked annually
and even the occurrence of any minor
accident or malnutrition would be recorded
and cross checked through each of the
actions.
Annual Review All the actions and the meeting up of the
objectives would be cross checked and how