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UXH410 Strategic Construction Management

Question

Answered

Question:

‘Aged Care’ Construction Strategic Plan

Background

You are currently employed by one of Australia’s largest and best known construction companies ‘Anonymous Constructions’ which primarily focuses on high rise development in Brisbane, Sydney and Melbourne, and more recently - following expansion in the Asian market - in Singapore, Tokyo and Shanghai.  Over the last eight years, you have developed an enviable reputation not only as a successful construction manager but also as a trouble-shooter who has recovered several “runaway” projects which would otherwise have threatened the company’s reputation and profits.   You are now being groomed for a senior management role.

Because of the rapidly aging population in Australia and in Asia, the Board of Directors has recently approved ‘in principle’, the development of a new subsidiary which will focus exclusively upon construction projects catering for aging population market.   However, to support and indeed validate its deliberations, the Board has directed the Chief Executive Officer to develop and present a draft strategic plan for this new venture at the next Board of Directors meeting scheduled later in the year.  However, the Board had indicated that the strategy must address several specific but confidential requirements, which they will brief you on in Week 2 or Week 3.

After consulting with the members of the company’s senior management team, the Chief Executive Office now approaches you to undertake this task with the tacit understanding that if the strategic plan receives the ‘green light’ form the Board, you will be appointed General Manager of the new subsidiary.

Content

As a minimum, The Chief Executive Officer asks you to develop a strategic planning working paper which:

  • Defines the vision and mission of the new venture.
  • Conducts a brief macro-environmental scan.
  • Identifies and briefly evaluates ONE major aged care market segment (e.g. ranging over self-contained retirement villas through permanent care to respite care).
  • Undertakes a brief industry competitive analysis of that segment.
  • Identifies and briefly assesses new capabilities which the subsidiary will need to cater for this new market segments over and above ordinarily expected to be found within ‘Anonymous’ Constructions.
  • Summarise the outcomes of the previous tasks into a strength, weaknesses, opportunities and threats analysis.
  • Identifies and assesses major stakeholders.
  • Identifies, assesses and treats critical strategic risks.
  • Considers any changes that may be needed in the organisational culture
  • Briefly describes and justifies a broad strategic approach.

You should not only succinctly describe but also persuasively justify the outcome of each step—using recognised strategic tools and techniques and citing the sources of your evidence and data.

Strategic Analysis and Planning Techniques and Tools

Where possible you should apply relevant strategic analysis and planning tools used by the company because these are familiar to the Directors.  These will be covered in the lectures and might include:

  • For macro-environmental scans – the PESTLE and TECOP frameworks
  • For industry competitive analysis – Porter’s five forces
  • For summarising strengths, weaknesses, opportunities and threats – SWOT matrix
  • For internal or organisational capabilities – VRINO, Porter’s Value Chain
  • For market segmentation – Market segmentation and targeting matrix
  • For broad strategic approach – Porter’s Generic Competitive Strategies, Ansoff Matrix, Blue Ocean
  • For organisational culture – the Denison Organizational Culture Survey

You will clearly not use all of these but you will need to choose which are relevant and apply them appropriately.  You may also use any other relevant and generally recognised techniques and tools but you will need to cite these.   You do not need to justify the use of particular tools nor do you need to explain how they work.

Confidential Memorandum

Date:

Subject: Strategic Planning Working Paper - Additional Briefing Requirements

From: Chief Executive Officer

Company: Anonymous Construction Pty Ltd

As discussed at our original Programme Briefing, we mentioned that your “strategy must address several specific but confidential requirements”, which on behalf of the Board of Directors, I confirmed we would release to you once our deliberations were completed. This has now happened and so please take note of and implement the following directive. 

In your investigation of opportunities of the aged-care/retirement villages market, you must also consider how your proposals can be adapted to support indigenous aged care.  This is a market segment which has largely been neglected and which we believe may yield opportunities for cooperation between Anonymous Constructions and the Government.  We would see this as flow-on opportunity from your current investigations. 

Also, following the wide-spread impact of the COVID-19 virus pandemic, it will be imperative that your strategic proposals address ways in which the spread of contagion within future or refurbished aged-care/retirement villages can be prevented, or at worse the presence of the contagion can be immediately identified and isolated.  This will require more than just procedural changes; it will necessitate new design approaches.

UXH410 Strategic Construction Management

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