1- Criticallyanalyze and discuss reasons why the chosen firm may prefer to conduct strategicplanning in secret and keep its strategies hidden from all but the highest-levelexecutives.
Inthe recent years we have noticed that the construction industry worldwide haspicked up its pace. From villas to huge skyscrapers round the world theconstruction sector is now at its peak. Alongside the employment rate is alsoincreasing with more and more construction sites coming up more and more peopleseem to be getting jobs. Withthe number of investments round the world pouring into the middle east we seemost of the developments taking place in this part of the world investments inthe Emaar Engineering have been constantly rising in the Middle EastInthis assignment Bahrain has been taken into consideration for this purpose.
Bahrainis comparatively new to the industrialization sector but we see it flourishingin the new future. These in industrial projects have been playing a veryimportant role in the development of this country and the strategies that havebeen formulated for this purpose by the officials have also been helpful inattaining the economic goals of the country.EmaarEngineering is one of the world most treasured and well-known real estatedevelopment corporations.
With verified talents in property, buying departmentshops & retail and hospitality & leisure, Emaar shapes new lifestyleswith a focus on layout excellence, build first-class and well time delivery.EmaarEngineering is extending its knowledge in growing master-planned communitiesacross the world, and today, has a sizable presence in several key worldwidemarkets. Concurrently, the enterprise has evolved skills in hospitality &enjoyment, and buying department shops & retail.Emaar’sworld-elegance task improvement talents are underlined with the aid of itsiconic assets in Dubai and different global markets.Strategiesare conducted or laid out by the top level management.
The top level managementdecides whether to include the middle management in their decisions or not.Different companies have different policies and therefore with the industry thepolicies change along with the rules and regulations devised by the country.Now in this case when we take the Gulf Region, we know the the laws of thecountry are firm and just that allows the companies to prosper at their ownpace and legitimately.
Thereare 3 tiers of method, which are corporate level, business degree andfunctional stage strategy (Thompson & Strickland, 2003) indicates that thecorporate degree method is the approach which determines the general motive andprospect of an employer and displays on how to add cost to unique parts of thecompany. The business stage strategy offers pointers on the way to excelcompetition or live on in a specific market and the useful strategy is thecontribution made by using the sources, humans and strategies to the businessand company level strategies. Businesses strive with their strategies if youwant to grow to be the leader of their unique enterprise or marketplace. Ifone has to fully recognize about strategy, its miles mandatory to know about thefive common competitive strategies. The five familiar techniques in keepingwith are low-fee company strategy, in which the organization gives items orservice at a low fee, broad differentiation approach, in which the companydifferentiates its products or services making it appeal to an extensive rangeof clients, first-class-fee issuer approach, wherein the employer presentsgoods or offerings of excessive fine making it worth the quantity they’recharging that is decrease than their competitors, a focused strategy based ondecrease cost, wherein the enterprises recognition on a narrower purchasersegment and gives them their items or offerings at a lower fee than itscompetitors and centered method based totally on differentiation, in which theemployer makes a specialty of a narrower client phase and produces productcustom designed consistent with their needs.Strategiesare conducted or laid out by the top level management. The top level managementdecides whether to include the middle management in their decisions or not.Different companies have different policies and therefore with the industry thepolicies change along with the rules and regulations devised by the country.
Now in this case when we take the Gulf Region, we know the laws of the countryare firm and just that allows the companies to prosper at their own pace andlegitimately.Wehave taken into consideration Emaar Properties. It may prefer to carry outstrategic planning in secret and keep all its strategies hidden from the lineand the middle management staff could be of the possible following mechanisms:· TheMistrust & Dissemination of Data: the firm’s strategy are the buildingblocks of the company. If the mistrust exists more likely are the chances thatthe top level management will not share these plans with the next tier ofmanagers. Reason for this is that these strategies can be easily sold off tothe rival competitors in this industry that could exploit the firm’ from thegiven information.· CriticismLimitations: when secrets are kept in strategic planning it lowers down thelevel of criticism on plans made. Therefore no one can point out the mistake oris allowed for second guessing etc.
· Difficultto predict the next move: with strategies made as such it is difficult topredict the next move of the plan of the other company. Whereas the firms thatpossess a visible strategy process is more likely to be lured away by the otherfirm. · NoDuplication: when secrecy exists there are no duplication that may exist in thefirm’s strategy with any other. Theapparent advantages of the seen as opposed to hidden extremes recommend that aoperating balance need to be sought between the apparent contradictions.Parnell says that in a great world all key individuals each inside and outsidethe firm need to be concerned in strategic planning, but in exercise mainlytouchy and confidential records ought to constantly remain strictly exclusiveto top managers. This balancing act is tough however essential for survival ofthe firm.
(Ferrell & Hartline, 2011) 2. Suggest and critically discussany FOUR mechanisms for the chosen firm to continually survive in a competitiveenvironment.StrategicManagement has its emphasis mostly on the Porter’s Five Forces of Competition.Porterargues that stronger that the stronger the each force is, the ability is more limitedof established corporations to elevate charges and earn earnings. withinPorter’s framework a strong competitive force may be regarded as a chance as itdecreases the income. A weak force may be an opportunity as it is able to boomprofit.
The strength of these all 5 forces continues on changing as consistentwith the enterprise and time. The task going through those managers is toapprehend how appropriate the strategic responses are. In addition it’s milesfeasible for an organization through its preference of strategy to modify thestrengths of 1 or more of the 5 forces to its benefit. (Hill & Jones, 2010)Usingthis model we may identify the competitive forces in the construction industryof Bahrain:Atthe pace on which the industry dynamics have been changing in Bahrain thecountry needs to assess their market condition in comparison to the othermiddle-eastern countries and reassess their strategies in order to survive inthe competitive environment of the construction industry. The competition inthis industry has the capability for the companies to submit their tenders andeventually this may lead to a reduction in the labor force. In order to respondto the change the companies are required to adopt a very flexible type ofmanagement through which it can manage. This may also open doors to outsourcingof employees.
Industry Competitors- Strong:Withmore and more construction projects taking place there seems to be more ofcompetition eventually resulting into better quality projects. The industry isusually involved in submitting tenders and this means more investments fromabroad. Lowest fees is offered at quality service by quality surveying firmsthis increases the competition level in the industry and help in retaining theclients.New Entrants-WeakCustomersare not usually loyal and win situation is in favor of the lowest bidder. Verylow switching costs due to these new contractors; new consultants etc come inplay. Requirements for capital development are comparatively high in theindustry of Bahrain. This industry is subject to high risks because of therapidly changing environment.
Substitutes-StrongWithmore and more new and innovative ideas pouring into the market we may see newprocesses in the industry. Switching costs are low in this regards as newconsultants will be employed.Suppliers Bargaining- WeakConstructionmaterial is easily available to the buyers due to which the suppliers do nothave the bargaining power. Switching costs of contractors is low. All the typesof contractors have to work together, eliminating the competitive environment.Buyers Bargaining Power- StrongThedevelopers have a very high quality of information available to them in orderto make decisions.
There are quite a few developers and client’s demand for theconstruction of the project. The customers have the authority to delay theproject if they see any low costing budgets of the building available to them.