Strategic Development Of Lend Lease Group - Essay.

Discuss about the Strategic Development of Lendlease Group.

Lend Lease Group is an international firm well known for its real estate projects all around the world. It is basically a construction company that builds artistic buildings and infrastructures like bridges, roads, residential houses and offices (McGeorge, Zou, and Palmer, 2013). The primary purpose of the study is to observe and analyse the strategic development made by the Lend Lease Group in the recent years. Hence, the study presents the corporate strategy of the company by discussing its past and present strategies. Along with that, the study highlights the controversies that criticised its business and policies. Furthermore, the paper presents the environmental analysis that helps to analyse the internal and external market factors that influence its businesses. Finally, the study draws an understanding of the corporate culture and leadership implied by Lend Lease Group to seek success in the current market scenario.

Lend Lease Group has aimed to explore the majority of the global market creating innovative and strategic investment opportunities to achieve corporate sustainability at the international as well as the domestic platform. On the other hand, the vision of the investing Corporation is to increase the client base in Asia, Australia, America, Europe and emerging economies such as China and India leaving an optimistic legacy towards long-term sustainability ("Vision and Strategy | Australia | Lend Lease", 2016). Moreover, through the identification of innovative and contemporary financial solutions, Lend Lease Group will work closely with global investors and stakeholders for significant market exploration. The innovation, technological efficiency and brand recognition in the developed market have been the primary competitive advantages to the business structure of Lend Lease Corporation (Francis and Lingard, 2012).

Lend Lease Group’s strategic roadmap has been established identifying the core business operations such as construction, investment and infrastructural development across the domestic as well as international platform. Previously, the strategic model of Lend Lease Group has been designed utilising balanced scorecard model measuring the productivity and performance standards of the enterprise (Woo, 2016). Moreover, the executive managers of Lend Lease Corporation have put the prominence on growth consistency creating sustainable competitive advantage through innovative planning and technological efficiency (Gravitt, 2013). The available resources and corporate structure of Lend Lease have been uniquely included to the strategic model so that the mission, vision and organisational sustainability can be met maintaining the highest business standards.

In the contemporary business scenario, the dramatic changes in economics at the global market have forced the organisation to shift its current strategic roadmap according to the demand. Predominantly, the present strategy of Lend Lease Group has been structured into four uniform segments. Moreover, the identified ‘Focus and Grow” strategic model has been improvised to increase the business values and marketing standards in retail, industrial and commercial construction sectors (Anderson, 2009). Meanwhile, on the basis of the current strategy, the organisation has chosen the right business partners and associates in the precise industries. Secondly, the highly integrated skills and professionalism have been shown in the market. Also, the disciplined corporate structure and inventive knowledge resources have provided world class prosperity to the business structure (Woo, 2016). Lastly, the organisation has invested in the most efficient capital markets in the US, Europe and emerging economies for futuristic growth perspective.

Past Strategy

Being a construction company, Lend Lease Group had faced different criticism in the market while expanding its business over the global platform. The two primary criticisms that are faced by the organisation have been presented herein below:

Lend Lease Group faced a huge loss due to the Hurricane Sandy in the New York City. The losses were not limited to financial losses, but it also led to loss of reputation of the company (Crotty, 2013). The transatlantic crane incident became the headline of the news in the New York City. It has been found that the weakened construction crane that was used in the project slumped down over the new luxury apartment that led to loss of property. The incident resulted in a court case with a claim of negligence used at the construction site (Woo, 2016). Hence, it is important for the company to use good quality instruments in the construction projects.

Another major controversy that surrounded the business is because of the new project of $18 billion to renovate the city of Melbourne, Perth, Sydney and Brisbane (Woo, 2016). The construction project has been opposed by the government and environmentalist because it led to loss of green fields in the urban regions. Jonathan Emery said that the company is working on the project to develop the cities and the project will provide benefit to the local communities, government, investors, office tenants, apartment buyers and local employees (Crotty, 2013). But, analysis shows that the project will lead to a loss of thousand hectares of greenery surrounding the urban cities that will impact the ecological balance of the region. Hence, the company needs to face several problems while operating in the current market scenario.

A Pestel analysis has been presented below to analyse the general environment of the Lend Lease Group.

• Political Factors: It is important to note that the political instability in different nations of the world makes it difficult for the company to operate in the international market. The major problems that are faced by the construction industry are the changes in the tax rates and property prices (Cox, 2009).
• Economic Factors: The raising income level of the people and growing demand for real estate properties provides Lend Lease Group with opportunity to develop its businesses. But, the recent collapse in the real estate industry due to financial downturn needs to be taken care to grow in the international market (Cox, 2009).
• Socio-cultural Factors: The tastes of people have changed in the recent days and they are demanded for own houses and properties that provide the company with good opportunity to grow its business.
• Technological Factors: There is an easy availability of technology and labour in the market in which Lend Lease operates. Along with that, the development of technology makes the operations easier and faster that acts as an opportunity for the company.
• Ecological Factors: Currently, people have become concerned about the environment that has led the company to different controversies (Cox, 2009). Hence, it is important for the Lend Lease Group to consider the changes in the environmental policies to smoothly operate in the market.
• Legal Factors: There have been several changes made in the rules and regulations in the construction industry. There is a need of proper approval of the government before staring the project (Cox, 2009). Hence, it increases the cost of the company and makes it difficult for the company to operate in the international market.

The specific environment analysis has been conducted to present the factors that influence the business of Lend Lease Group.

• Customers: Lend Lease Group believe in developing customer’s value by delivering them with high quality projects and good customer services. Along with that, the company continuously introduces new products and services to meet the changing demands of the customers (Davies, 2013).
• Partners: The primary partners of the firm are suppliers, government bodies and contractors who support the operations of the business (Davies, 2013). Along with that, Lend Lease has opted for the merger and acquisition strategy to add new partners in the business.
• Industry: It has been working in the construction industry for more than 50 years and started venture in the financial industry to seek growth over the global market.
• Unions: Lend Lease Group has maintained a good relationship with the unions to carry on smooth operations of its business (Davies, 2013).
• Competitors: The Company needs to face a huge competition in the market because of a large number of rivals in the international market. Lend Lease need to carry on its business using competitive strategy to survive.
• Suppliers: The number of suppliers is high in the market that reduces the bargaining power of the suppliers. Hence, in the case of fluctuation in the price, the company can shift to some other supplier.

The internal environment analysis has been conducted to present the internal factors that influence the business of Lend Lease Group.

• Process: The primary processes of the company include human resource management and technology implementation (Lingard and Lin, 2012). Hence, it is important for the company to implement international HRM policies to grow in the international market. Furthermore, the company needs to implement innovative technology in the operations of the business.
• System: Lend Lease has a good administrative system. It has a separate division for controlling different activities of the organisation. Each division is headed by an administrative head that is responsible for monitoring and controlling the work. Hence, it can be seen that the administrative system of Lend Lease is quite effective in growing the business (Lingard and Lin, 2012).
• Employees: The organisational subordinates have always been an integral part of the internal environment sustainability of Lend Lease Group. Considering the risks of the corporate operations, the employees have worked following the strategies for better performance and productivity at the operational level (Bonnal, 2012). Thus, the organisation has set high standards for the international as well as domestic conditions.
• Management: Organisational management of Lend Lease Group has identified the effectiveness of collaborative working tactics. Therefore, the senior executive managers and strategic developers of Lend Lease Corporation have created sustainable corporate culture providing the best possible solution reviewing the issues and concerns attached to the workforce (Chinyio and Olomolaiye, 2010).

In the current business scenario, a brief discussion of SWOT analysis of Lend Lease Group has been provided as follows.

Strengths

• The global presence of Lend Lease Group has been one of the major strengths of the organisation. Meanwhile, the enterprise has developed considerable tie-ups with international organisations for significant market penetration in diverse locations.
• Significant merger and acquisition policy of Lend Lease Group has secured growth in both the private and public business sectors in the domestic as well as international market (Laufer, 2007).

Weaknesses

• The high price fluctuation of the commercial and residential market has been a significant worry for the organisation for long-term sustainability.
• The concerns of the vulnerable economic structure of the global construction industry have restricted the investment opportunities of the firm. Also, the negative factors have led to massive losses in the construction business.

Opportunities

• Ideally, the current expansion of retail and commercial industry in the emerging economies has created fresh investing opportunities to Lend Lease Group.
• The latest bubble in the housing industry of China has influenced the business organisation to set up new investment scopes (Lester and Lester, 2007).

Threats

• The global economic decline has significantly contributed towards the profitability and growth of the business of Lend Lease Group.
• A world class adverse economic event such as Brexit has created issues, and threats to the current business operations in Britain are forcing adverse sustainability.

Lend Lease Group has promoted new workplace culture that helps to improve its productivity and performance. Lend Lease Group commits to deliver outstanding performance towards the stakeholders of the company (Daniel and Belle, 2013). The company has created core values for the employees to maintain a highly efficient workforce. Furthermore, the core values mainly include collaboration, respect, excellence, innovation, integrity and trust. The employers and employees work together to deliver high examples in the market that improves the status of the company (Daniel and Belle, 2013). Along with that, Lend Lease maintains a diversified workforce using international HRM policies that helps the company intake best talents available in the market.

Current Strategy

The Board of Directors and the CEO of Lend Lease Group have uniformly developed the right leadership approach to support the growth of the business. Functional leadership style has actively governed the corporate governance practices of Lend Lease Group (Woo, 2016). Meanwhile, such leadership style has actively delivered all the necessary support to the organisational subordinates creating a sustainable support system within the organisation. Also, the chain system has been constructed to maintain swift workflow. Moreover, transformational leadership style has been adopted according to the demand of the situation to understand the issues and formulating compulsory steps (Lingard and Lin, 2014). Through the identification of the organisational challenges, executive managers have to show their management skills to motivate the employees in case of tough and demanding situations. Apparently, the managers have improvised incorporate upbringing to the workforce so that more efforts and knowledge resources can be utilised for better productivity (Turner and Lingard, 2014). Such advanced leadership model has created a suitable impact on the performance and standards of Lend Lease operational management.

Conclusion

Evidently, Lend Lease Corporation has identified the most sustainable business strategic roadmap and leadership style effective for long-term growth. By making significant changes to the strategic model, the management of Lend Lease Group has provided a swift platform to the organisation to explore the international market for further investment opportunities. Though some of the business risks attached to the external as well as the internal business environment, the comprehensive strategic decision-making of Lend Lease leaders has provided an efficient, competitive advantage to the organisation. By following the strategic roadmaps directed to guide the organisational subordinates can improve the performance and productivity of the firm. Undoubtedly, in the recent upcoming years, Lend Lease Group can attain significant financial sustainability throughout the global market.

References

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Chinyio, E. and Olomolaiye, P., 2010. Construction stakeholder management. Chichester, U.K.: Wiley-Blackwell.

Cox, L., 2009. Internal dose, uncertainty analysis, and complexity of risk models. Environment International, 25(6-7), 841-852. https://dx.doi.org/10.1016/s0160-4120(99)00062-8

Crotty, R., 2013. Impact of Building Information Modelling. Florence: Taylor and Francis.

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McGeorge, W., Zou, P., and Palmer, A., 2013. Construction management. Chichester, West Sussex, U.K.: John Wiley and Sons Inc.

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Woo, J., 2016. IDA-accredited companies to access larger projects with Surbana Jurong and Lend Lease. The Straits Times. Available at: <https://www.straitstimes.com/business/economy/ida-accredited-companies-to-access-larger-projects-with-surbana-jurong-and> [Accessed September 2016].