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What is the Constructional Strategic Plan ?

Answer :


South Australia is a dynamic country which has made it adopt key strategic planning. One of the key strategic plans is giving every child a potential to achieve the best. Making sure their people live healthily and creating a vibrant city. Then Safety of their citizen is highly prioritized. Advancing and realizing the importance of manufacturing and mining industry. Making sure each citizen gets quality and a better life (cavusgil et al.2014). Over the recent years, South Australia construction companies have been faced with operation problems more than any other company in the country. Due to this struggles, leaders have advised state and federal that they should do something to prevent construction sector from sinking (Amati 2016). This essay will discuss business planning strategies in a great detail and hopefully come up with some steps on how to save the industry from this mayhem.

According to statistics from Australia securities and investments commission, indicates that 49 retail trade and 69 constructions industry were required to go back to management due to financial problems (cavusgil et al.2014). Strategic planning is the process of formulating and implementing plans; setting goals, determining the course of action and having the right resources to implement the plans. According to Michael Porter (1980), in a formulation of competitive strategy, we have both external and internal environment. External comprises of company`s threats and opportunities and expectation from the community. Internal involves management and business strength and weaknesses. For instance, it was anticipated that New Castalloy, which is a major manufacturer of wheels and hubs was under serious threats of downfall. The challenges resulted to resizing of its employees. As a result led to the comprehensive evaluation process, and therefore it resumed its operation (Amati 2016).

As earlier mentioned, strategic planning is the process to achieve the long-term objectives. Therefore both external and internal environment should be evaluated; formulating organization strategies and objectives, implementing and evaluating the strategic plan (Cassidy 2016). First, is analyzing the current situation of the can able to determine the external and internal environment by conducting SWOT (strengths, weaknesses, opportunities and threat) analysis (Heizer and Barry 2013). The company will gauge itself by analyzing what they that their competitor does not have, the thing that they are not doing right, opportunities regarding existing and new market and finally the threats that the competitors pose on them. Therefore, on these stages, managers should look for the macro (external) environment and microenvironment (internal).For examples, the Sony Company received a huge competition in mp3 music player from iPod irrespective of its huge market share ( Hill et al.2014).

Secondly, defining the organization vision and mission is of much critical. It represents the state of the company, its values, where and what it what to do, what your business does, for whom, how and when (Rotharmel 2015).

Thirdly is determining strategies and objectives for the organization in the construction sector. For example, your goal could is to capture a new market, or it could be on how to increase market share on certain percentage annually (purce 2014). Strategy and objectives strategies also are referred to as policy formulation. Long term strategies are desired at this step so as it can help the company from completion in the future date. Corporate, business and functional strategy comprise organization policies (purce 2014). At corporate strategy manager’s chooses what product to sell and what market to venture, whether to merge with the competitor or introduce the competitor. For instance, Nicholas Piramal followed the corporate growth strategy to acquire other companies in the world of pharmaceutical drugs (Amati 2016).

Another worth noting point is that strategy the business plan; it is used in small and medium business mergers to choose one market and one product. For instance, Royal Enfield firms sell bullet Motorcycle India (different market) and in the United Kingdom (UK) at a various price. Additionally, in the airline sector, Lufthansa and Air India provided global service using business strategy (Hill et al. 2014).

Then functional strategy: facilitate both business and corporate strategy. For examples, the information systems, human resource, and production department support both corporate and business strategy ( purce 2014). The functional approach is the operation method to implement tactics. For example, Medtronic (MDT, Fortune 500) and 3M (MMM, Fortune 500) both manufacture medical equipment, but then again are structured differently.


Implementation and evaluation of the objectives of the plan are the final steps. In implementation process, managers should set goals and revise the policies, so that the objectives can fit in. Additionally, allocation of strategies to critical areas and change the all the organization structure so that it can accommodate new plan, finally managing resistance to change from juniors and rewarding them appropriately for their outstanding performance ( Hill et al.2014). Every decision one has made as to be implemented to know if it can work. After achieving the evaluation, objectives should be analyzed to check if it has given the desired outcome. In big company or government organization, objectives are explained by separate body or agencies. Evaluation is the measurement of the performance (Grant 2016). Due to changing of external and internal environment contributed to the modification of strengths, weaknesses, opportunities and threats .leaders should introduce new objectives and changing the reward system if the required target is hard to accomplish. Therefore the evaluation and monitoring of performance is a continuous process (purce 2014).

Of utmost importance is that Environmental contributes to an apparent negative spot for the Australia construction of burning issue is the corruption problems in the construction industry (Longoni and cagliano 2015). Additionally, there is reduced productivity due to professional workers working on regular hours or reduced working hours. Also, there are issues of the professional working abroad and then come back in their old age to take care of their aging family members. Thus contributes to the poor workforce and hence lowers productivity. The rising projection costs also hit Australia construction; added by the rising prices of the materials and oil (Longoni and cagliano 2015). Another main issue constructional industries are facing is that of insurance and compensation in regards to safety in working sites. Consequently, increases the cost of operation, and therefore insurance and compensation process lowers productivity and hence reduces profit margin.


The evidence presented in this essay has addressed some key significant issues contributing to the company`s downfall. Company going through the downfall should adopt a clear strategic planning strategy. Strategy planning will depend on the size and type of the enterprise. Managers have to scan both the macro and microenvironment surrounding the company. Finally, leaders should come up with a clear guideline on how to identify the goals, how to implement and monitor the objectives under progress.



Amati, M. ed., 2016. Urban Green Belts in the Twenty-first Century. Routledge.

Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.

Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.

Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Heizer, R. and Barry, R., 2013. Operation Management, Sustainability and Supply Chain management (Vol. 11). Pearson, UK

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Longoni, A. and Cagliano, R., 2015. Environmental and social sustainability priorities: Their integration in operations strategies. International Journal of Operations & Production Management, 35(2), pp.216-245.

Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Rothaermel, F.T., 2015. Strategic management. New York, NY: McGraw-Hill.

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