Analysis of Strategic Planning Impacts on Construction Industry

This report examines the impacts of strategic planning on small firms within the construction industry. It begins with an executive summary outlining the importance of strategic planning for organizational success, including setting priorities, enhancing communication, and optimizing profits. The report then delves into the significance of strategic planning, exploring tools like Total Quality Management, Business Process Reengineering, and Continuous Process Improvement. It also addresses potential conflicts arising from strategic planning, both internal and external, and discusses resistance to change. The analysis includes strategic formulation, advantages, and disadvantages of strategic planning, its impact on firm culture, and a strategic plan for new technologies. Initial findings cover internal and external impacts, application of strategic planning, importance of structure, implications of technology, and causes of strategic plan failure. The report concludes with a summary of the findings and their implications for construction businesses, emphasizing the benefits of strategic planning for long-term survival and growth within the competitive market.

Running head: IMPACTS OF STRATEGIC PLANNING
Impacts of Strategic Planning on a small firm within the Construction Industry
Name of the Student
Name of the University
Author Note

1IMPACTS OF STRATEGIC PLANNING
Executive Summary
This particular report is created for exploring the strategic planning based on small size the
organisation focused on the construction industry. The exploration of the strategic planning
also analyses the impact that it might put on the small size organisation. This particular report
would further identify the aspects of strategic planning and the effect of this on any project
implemented by a small sized organisation. The end results would specifically show what use
does the small size organisation have by implementing strategic planning and allow them for
surviving long term within the industry for obtaining stronger economic gains and on the
other hand grow in a stronger way with a constant observation power for the customers and
market conditions. The impact of strategic planning is directly influencing the operation
methods of the firm and results in enhancing and strengthening it further. Along with this, it
sets the priorities of the organisation, aims at reaching the highest standards of production
and services and aims that all the stakeholders involved within the project would walk
together as a team towards the same strategic goal. In addition to this, the entire strategic
planning tries to enhance the internal and external communication within the organisation and
increase the quality of the incoming staff productivity. Strategic planning also allows that an
organisation can be put in a stronger place within the market with enhanced profit
optimisation and this would be further accomplished with the help of the identification of
greater opportunities since it would specifically have the end result on the prosperity of the
business deals and their sales. The carrying out of first strategic planning within the
organisation can have a number of issues and limitations like the resistance to change and
address belief in the organisation that it will work in a positive way and therefore a conflict
arises between the external and internal stakeholders. It can occur that there is a defeat of the
entire planning for implementation of strategic planning within the organisation.

2IMPACTS OF STRATEGIC PLANNING
Table of Contents
1. Objective................................................................................................................................5
2. Specific Objectives.................................................................................................................5
3. Introduction or Background...................................................................................................6
4. Significance of Strategic Planning.........................................................................................7
4.1Significance of Strategic Planning....................................................................................7
4.2 Strategic Planning Tools..................................................................................................8
4.2.1 Total Quality Management.......................................................................................8
4.2.2 Business Process Reengineering...............................................................................8
4.2.3 Continuous Process Improvement.............................................................................9
4.3 Other tools used within the Industry................................................................................9
4.4 Conflicts caused by Strategic Planning............................................................................9
4.4.1 Conflicts between the company and external stakeholder......................................10
4.4.2 Internal Conflicts.....................................................................................................10
4.5 Strategic Formulation.....................................................................................................10
4.6 Causes of Resistance to Change.....................................................................................10
4.6.1 Unwanted Costs......................................................................................................11
4.6.2 Resistance of Owners or Managers.........................................................................11
4.6.3 Staffing....................................................................................................................11
4.7 Strategic Planning Advantages and Disadvantages.......................................................11
4.7.1 Advantages..............................................................................................................11
4.7.2 Disadvantages.........................................................................................................12
4.8 Strategic Planning Impact on a firm’s culture................................................................12
4.8.1 Internal Culture.......................................................................................................12
4.8.2 External Culture......................................................................................................13
5. Strategic Plan for new Technologies....................................................................................13

3IMPACTS OF STRATEGIC PLANNING
6. Initial Findings.....................................................................................................................14
6.1 Internal and External Impacts of Strategic Planning......................................................14
6.2 Appliance of Strategic Planning.....................................................................................14
6.3 Importance of a Structure...............................................................................................15
6.4 Implication of Technology.............................................................................................15
6.5 External and Internal Conflict........................................................................................15
6.6 Causes of Strategic Plan Failure....................................................................................16
6.7 Cultural Differences.......................................................................................................16
6.8 Impact on Competition...................................................................................................17
7. Conclusion............................................................................................................................18
References................................................................................................................................20

4IMPACTS OF STRATEGIC PLANNING
1. Objective
The objective of this particular study is identifying the various forms of strategic
planning. This would include the importance about creating a particular strategic plan in any
kind of construction project to make sure that the total project is concluded in an efficient
manner with effective aims of resulting in profit for small scale organisations like the
Outback Construction. The objective of the study is also to identify the potential positive or
negative effect that strategic planning can have on Outback Construction. The entire thesis
would result in identifying the appropriate strategic plan that would suit the organisation the
best for producing a project with high standards and no identified major issues and most
importantly would have the potential of maximizing profitability of the project.
2. Specific Objectives
The specific objectives of this particular study can be listed as follows:
 For exercising strategic system within the organisation which has no efficient
function to help the enhancement of the operating system of the organisation.
 The construction organisation would be able to you manage and implement
the required strategic plan.
 There would be an ability implemented in the organisation to help in
implementing the strategic plan that would suit the best according to the
technological development and this would occur according to the services
provided and the products manufactured.

5IMPACTS OF STRATEGIC PLANNING
 It would have the recognition power of the purpose behind the strategic
planning, the procedures as well as the understanding of every methodology
utilised.
 It would administer the employees within the firm and ensure that it they
produce the highest standards of customer satisfaction according to the
requirements.
3. Introduction or Background
The process of strategic planning is mostly utilised with the help of a systematic
criteria utilised for a third examination for creating, applying and managing the strategy and
document according to the expectation of the organisation. This is the latest development for
the prosperous goals which would further be accomplished with the utilisation of a number of
operations and procedures that would be set out within the plan.
The method of strategic planning is used for organisations for identifying the
appropriate path to reach the best possible destination. The strategic planning defines the plan
of the organisation and also ensures that all the employees related to the project including the
project management body and the rest of the team are absolutely conscious about the plan.
Along with this the economic circumstances of the organisation and also investigated to find
their impact on the operation of the organisation by looking at the all the external aspects.
The operation of strategic planning would provide a particular farm with an
assortment of techniques and processes that would be required for a particular project for
concluding in an efficient and effective manner. If there is enforcement of strategic planning
within the organisation of Outback Construction, it would allow that employees and the
management body would be able to provide the services and manufacture the product in a

6IMPACTS OF STRATEGIC PLANNING
much efficient and effective way. The organisation would become an energetic form by
utilising this method as input and hence the efficiency and also make the organisation handle
the project in the most cost effective way both for short and long-term presence of the
organisation.
The application of a strategic plan can be appropriately created and implemented
within a form since it would allow that particular organisation to become much more
advanced and enhanced to be a head of their competitors and have and effluent long term
future within the industry.
Strategic planning of an organisation makes a form exam in their current market
conditions, requirements of the customers, the services and products and helps in creating a
strategy that will lead to a sensible profit. This particular approach will lead to attend a target
market and would create specific opportunities which would assess the sales and marketing,
distribution and all the other business resistance implemented for increasing the revenue. The
newer tactics that would be attained for Diverse Civic would possibly concentrate on the
customer needs. This could possibly modify all the ways by which products and services
exempted to the customers and possibly would create a potential of attracting the newer
customers. 20 implemented new strategies would let the organisation to make a difference
from the competitors and it would allow the organisation to have increased revenue. This
particular report wood enunciates why numerous construction companies are right now using
the opportunity of applying strategic planning to their business.

7IMPACTS OF STRATEGIC PLANNING
4. Significance of Strategic Planning
4.1Significance of Strategic Planning
Implementing strategic planning is important for all the business since it has a
potential of offering a positive direction and positive goes to the organisation. It should be
used at a daily basis to the organisation for guiding that day to day decisions and assess all
the progress by changing the approaches that the organisation traditionally had for moving
ahead. The process of strategic planning can also have a youth impact on the organisations
and their profitability and also has the ability of significantly reducing the chances of letting
the issues to arise. Strategic planning also allows that at a particular firm has the insight of the
future to predict where the organisation is right now heading to.
4.2 Strategic Planning Tools
The strategic planning tools that can be adopted by the construction industry include
Total Quality Management, Business Process Reengineering and Continuous Process
Improvement. These are all important for the profitability of a firm and they can impact the
production of the firm by being efficient.
4.2.1 Total Quality Management
The focus of this particular tool is to develop the success of the farm by operating the
business having the participation of every employee within the firm. Total quality
management meet sure that the communication and operation within the firm is significantly
improved and all the employees are involved. This reduces cost and increases customer
satisfaction with fewer complaints from them regarding customer service and this is the
fundamental aspect of the tool.

8IMPACTS OF STRATEGIC PLANNING
4.2.2 Business Process Reengineering
Business Process Reengineering is developed to enhance the performance of a
business affecting the impact of the customers. The redevelopment of the fundamental
procedures must be based upon the satisfaction of the customers. When this particular form is
achieved, Outback Constructions would be able to reduce their cost and also reduce the end
productivity of the employees and the project result outcomes. The Business Process
Reengineering tool ensures that all the employees are responsible of their work and reduce
the splitting of the work for producing high equality. This would have the potential for or
satisfying the stakeholders of Outback Constructions and be a threat to the rest of the
organisations in the industry.
4.2.3 Continuous Process Improvement
Continuous Process Improvement makes sure that there is a systematic method
adopted by the organisation to improve the work outflow by time is competition, computer
integrated systems, and lean production. This is done to increase customer satisfaction and
produce higher quality of work. It would be result thing as a profitable tool for Outback
Constructions when used appropriately to identify issues and fix it as soon as possible. The
only disadvantage of this tool is that it requires handling of data bases which are expensive.
4.3 Other tools used within the Industry
Feasibility study would be of significant technique which the organisation can be used
to assess the specification of the project for producing profit. This should assist organisations
like Outback construction since it identifies the project and analyses to make sure that the
organisation would be e in an advantages position by taking on the project (Iyer 2018).

9IMPACTS OF STRATEGIC PLANNING
4.4 Conflicts caused by Strategic Planning
It is possible that when strategic planning is implemented within a company there are
conflicts arising between the stakeholders during the planning stage or after it have been put
into place.
4.4.1 Conflicts between the company and external stakeholder
There can be a conflict within the organisation even if there is no conflict found
internally. The conflict between external stakeholders and the organisation can also occur
(Tayeh et al. 2018). This would disregard the ethical practices that the organisation focuses
on for increasing the profits and would be a negative impact on the end result of the project
when the external stakeholders are angered. It can also tarnish the reputation of the
organisation.
4.4.2 Internal Conflicts
Internal conflicts are the types of conflicts that potentially occur among the
organisations and the employees due to the difference in their views.
4.5 Strategic Formulation
Strategic formulation makes sure that two processes are included in the strategic
planning, namely, continuous implementation and environmental scanning.
4.6 Causes of Resistance to Change
There are various things that are uncertain within the construction industry about the
implementation and practicing of strategic planning since there might be difference in the

10IMPACTS OF STRATEGIC PLANNING
beliefs between the people that it would not bring about positive changes or profit to the
business and would only impact negatively (Nyakala et al. 2017).
4.6.1 Unwanted Costs
Strategic planning can be applied to a company for restructuring the operational
policy and this can make retraining of the current employees who is costly as it costs the
organisation time and money.
4.6.2 Resistance of Owners or Managers
It can also be found that the owners and managers are resistant to the changes that
strategic planning is about to bring within the organisation and they can purchase that the
entire plan is not necessary to be implemented within the organisation (Oladinrin and Ho
2015).
4.6.3 Staffing
There may be other cases where it can be found that both the employees and
employers are not agreed to the idea of changing the business process of bringing about
strategic planning to the organisation due to a lot of reasons. Exchange offers within an
organisation with the requirement of training the staff additionally and cost the employer a lot
of money (Ugwuoke and Abbott 2018). The employer can we will be doubtful about using a
lot of money and attaining the expected outcomes. Computerized systems also cause the
employees a lot of agitation because there at a constant fear of losing their job.

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4.7 Strategic Planning Advantages and Disadvantages
4.7.1 Advantages
Implementing strategic planning into smaller size organizations like Outback
Constructions would make sure that there are added advantages to it and the organisation
succeeds in the construction industry (Jraisat, Jreisat and Hattar 2016). It makes the
organisation achieve higher profits with increasing number of consumers as well as guide
through the marketing strategies, human resource, organisational development and financial
strategies.
4.7.2 Disadvantages
Along with the advantages of strategic planning there are also added disadvantages
which come hand in hand. The first disadvantage of strategic planning is that it is extremely
expensive for being implemented into a small size organisation in the construction industry
and it requires a lot of strategic planners and managers for the implementation process
(Mohammed 2017). The time required is also high and the external facets of the organisation
can also result in an extensive bill for the employees need to be retrained. It requires a lot of
time and also affects the daily operations of an organisation.
4.8 Strategic Planning Impact on a firm’s culture
4.8.1 Internal Culture
Australia is home to a huge variety of culture and ethics and a strategic plan is
critically accepted and suited for bringing about unified form of business environment within
an organisation accepting all the cultures. This makes sure that the organisation has a culture
that is unified for all the employees and there is a better communication between the