Business Plan Report: Watpac Australia Construction Company Analysis

This report provides a detailed business plan for Watpac Australia, a construction company. It begins with an executive summary and introduces the company's objectives, which include environmental sustainability and stakeholder inclusivity. The report analyzes the company's market position, owner structure, and organizational structure, including its strengths and weaknesses. It also outlines the company's services and presents its financial performance, including revenue, cost of sales, and profit. The report concludes with a positive outlook for Watpac, emphasizing its potential for growth through strategic policies and technological advancements. The report uses financial data from 2016 and 2015 to highlight performance and market share across various Australian states and specialty services. The report is based on the student's analysis of the company's current strategies and market dynamics.

CONSTRUCTION COMPANY MANAGEMENT 1
CONSTRUCTION COMPANY MANAGEMENT
Student’s Name
The Institution
Professor’s Name
The Date
Contents

CONSTRUCTION COMPANY MANAGEMENT 2
Introduction......................................................................................................................................4
Executive Summary.........................................................................................................................4
Business.......................................................................................................................................4
Owner...........................................................................................................................................5
Market..........................................................................................................................................5
Company structure, Organization, strengths, and weaknesses........................................................6
Company structure.......................................................................................................................6
Organization.................................................................................................................................7
Strengths and Weaknesses...........................................................................................................7
Components of the Company..........................................................................................................8
Services........................................................................................................................................8
Financials.....................................................................................................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................11

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Introduction
The report primarily is the objective of showcasing a strategically designed business plan for the
Watpac Australia construction company. The report will assess the SWOT for the construction
company through an in-depth research into the prevailing market and financial dynamic (Kulas,
S. 2016). The business plan will be achieved through the evaluation of the current strategies and
policies that are in place and coming up with new feasible strategies that will help correct the
current situation of the company. The achievement of the business plan will play a significant
role in realizing the strategic, operational and tactical objectives of the enterprise. For Watpac,
the business plan is to embrace technology fully to ensure that it maintains the high standards
and sustainability that it holds so active in its operations.
Executive Summary
Business
The business is by the name of Watpac Australia Pty Ltd. It is located in Australia and
falls in the construction company. The company has several primary objectives that are not
limited to improving the company’s corporate image, delivering high standards, environmental
sustainability, resource efficiency in its operations, employee and government inclusivity and
stakeholder sustainability. The company has emphasized on ensuring that it engages in activities
that are environmental friendly having environmental sustainability as one of its primary
objectives (Wong et al. 2015). The significance that the company has to its growth is the fact that
it can utilize the resources that it has efficiently so that it can reduce its overall cost and improve

CONSTRUCTION COMPANY MANAGEMENT 4
its overall profit margins. Again the company is moved by the need of being socially responsible
and thus it has invested a reasonable amount of funds in sponsoring of community based
programs, giving of donations and in charities. The company has partnered with Ronald
McDonald House Charities to be in a better position to engage in charity programs.
Owner
The company began in 1983 when it was identified as Watkins Pacific. It engaged in
construction and property development. The company was first listed on the Australia Exchange
in the year 1985. It is thus an indication that the corporation is a public limited company. It is
thus owned by shareholders and managed by the board of directors. The sole objective of the
board of directors is to ensure that the managerial role of directing is achieved amidst creation of
value for the shareholders. The board of directors is individuals who are competent and driven
by the core objectives of the company.
Market
Watpac Company serves a large market in the Australia construction industry. The
company serves customers that are in need of affordable mining services. Also, it engages in
civil works, property and government partnerships. The company continues to get construction
tenders from clients such as the NSW that gave it recently a contract of $ 187. The company
has made sure that its markets are served by workers that have competent skills in the operations
that it engages in. The safety requirements and the quality of services are some of the factors that
the company makes sure that they are well blended in the rendering of services in the market.

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Company structure, Organization, strengths, and weaknesses
Company structure
The company is led by the senior executive team. The major roles of the GSET are instigating
the accomplishment of the operational objectives of the company to make sure that the strategic
goals of the company are met. The chair of the GSET who is also the managing director is
Martin Monro. He led most of the subsidiaries that the company has. Then there is financial,
Mark Baker who plays a significant role in assurance. The next is Russell Hall, the general
manager of the civil & mining. His primary responsibilities are to ensure that the strategies that
have been formulated appertaining to the civil & mining department are implemented through
the utilization of his managerial skills. The other general manager is Nick Saciley. They are
followed by the group human resource manager, Angela Liebke, State managers (Nick Pavlovic,
Tim Tape, John Koerner and Drew Brockhurst) and lastly the commercial manager, Chris
Woolnough.
Watpac
managing
Diector
Martin
Monro
General
manager
Construction
and Civil works
Nick Saclley
Russell Hall
State manager
Old and Nt
Drew
Brockhurst
Delvery
teams
State
manager
NSW
&ACT
Ric Wang
Delivery
teams
Chief
Financial
Officer
Mark
Baker
Human Resource
manager
Angela Liebke
State
manager
Vic
Nick
Pavlovic
Delivery
Teams
State
Manager
SA
TIm Tapa
Deliver
y
Teams

CONSTRUCTION COMPANY MANAGEMENT 6
Organization
The company is organized in terms of teams. Most of its operations are carried out in teams that
are majorly led by the managing director. The teams are driven by the values that the company
has. The team works together to achieve a shared goal. The organization is driven by the values
that it holds so high that is not limited to transparency, trust for each other and profound, hard
work (Wilkinson, J. 2013). There is at most independence amongst the corporate teams through
them specializing in the different sectors of the organization. The foundations of the management
systems are safety, quality of services and excellence in delivering. The management systems
goals are fueled by the professionalism that is exhibited at the company.
Strengths and Weaknesses
The company is motivated by the strengths that it poses in the market that is its capability to
deliver quality services through the utilization of its resources. Also, the company can provide
services that are sensitive about environmental sustainability. The strengths of the company are a
recipe for the reported high-profit margins and the share prices in the stock market (Blismas
2007). The other power appertains to the fact that the company has a solid image as the global
leader in the construction of various facilities such as health facilities that are well designed to fit
the intended purpose. The major weakness that the company has to contend with is the delays
that occur most of the time when it is delivering its services. Most of the shortcomings are
logistics that are challenged by the dynamics in the market. The limitations have seen the
company lose up to $22million in a construction project in Sydney 333. The company aims at
reduces such instances to restore the confidence of their stakeholders.

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Components of the Company
Services
Watpac construction over 30 years has been in the Australian construction industry rendering
services that are related to civil works, property, mining services and specialty services to its
clients. The company realized the essence that environmental sustainability in business
operations and thus it embarked in engaging in activities that were environmentally friendly and
those that could give value to the clients (Murphy 2016). The company has thus continued to
render quality and environmentally responsible services at reasonable prices. The company has
the advantage of being able to acquire the resources that it requires in the production of services.
It is thus able to collaborate with the defense departments that have facilitated continuous
coordination amongst the teams.
Financials
Consolidated Statement of Profit /loss with other comprehensive income as at 31Decemeber
2016.

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In AUD Note 2016 2015
Revenue 583,810 621,890
Cost of sales (552,887) (589,066)
Gross Profit 30,923 32,824
Other Income 304 15
Net Property asset
Income/expense
- (15)
Property development
holding
Costs expensed
(239) (268)
Operating business
unit and corporate
administration
expenses
(27,960) (25,053)
Net Finance income 968 1160
Results from
operating Activities
3,996 8,663
New business
expenditure
(3,297) -
Gain on sale and land
and buildings
- 2,728
Impairment expense - (44,190)
Profit/loss before tax 699 (32,799)

CONSTRUCTION COMPANY MANAGEMENT 9
Income tax
benefit/expense
(129) 7,525
Profit/loss after tax 570 (25,274)
Other comprehensive
income for the period
net of tax
- -
Total comprehensive
income/Loss for the
period
570 (25,274)
Earnings per share
Basic earnings per
share
0.31$ (13.41$)
Diluted earnings per
share
0.30$ (13.41$)
There is an indication of high performance in the case of the company in the year 2016 as
compared to the situation in 2015. Profits have been reported, and the share price has received
which is an indication that the company is achieving most of its end term goals. The revenue
that was acquired by Watpac in 2017 majorly was from five markets that are Queensland, South
Australia, Victoria, New South Wales and Specialty services. Queensland gave the highest
revenues of 36.88%. Specialty services as a market provided the company with the least
revenues at 0.4%. To add on, South Australia is at 4.56%, New South Wales at 25.44% and

CONSTRUCTION COMPANY MANAGEMENT 10
Victoria at 32.7% (Afzal, F. and Lim, B. 2013). The risks that arise in the market are the inability
to maintain the work volumes that come by.
Conclusion
In conclusion, Watpac is a company that has brighter prospects. The prospects that it has been
capable of making the company realize the ongoing concern assumption that is looked at by the
shareholders. The company can increase its profits as curtailed by its strategic policies and
procedures that are blended with the technical skills that its employees have. The company is in a
position+ to attain all its stipulated goals, mission and vision to meet the interests of its esteemed
shareholders. The continuous inclusion of advanced technologies in its operations will be of the
impact of providing quality services that will see the company top the Australian construction
industry.

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References
Bibliography
Afzal, F. and Lim, B. 2013, 'Attitudes of Australian Construction Organisations towards Sustainability
Management', Proceedings of WBC.
Blismas, N 2007, Off-site manufacture in Australia: Current state and future directions, Cooperative
Research Centre for Construction Innovation.
Kulas, S. 2016, Company profile.
Murphy, D 2016, Realising dreams-enclosing and creating spaces with transparent strucutres. In
Australasian Structural Engineering Conference: ASEC 2016 (p. 90), Engineers Australia.
Wilkinson, J. 2013, Construction Industry in NSW: Background to the Insolvency Inquiry, NSW
Parliamentary Research Service.
Wong, P.S., Zapantis, J., Owczarek, A., Spinozzi, J., Kefalianos, Z. and Murison, M. 2015, 'The drivers and
strategies of carbon reduction in projects: perceptions of the Australian construction practitioners',
International Journal of Project Organisation and Management, vol 7, no. 4, pp. 307-326.