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You are a director of an established construction company with a turnover of £2bn per annum operating in commercial, residential, educational and retail sectors. You consider that due to the UK government fiscal policy infrastructure is the sector to develop, however, your CEO is of the view that you should not change and “stick to the knitting” (Peters and Waterman, 1982). The company is formed on a silo structure with incentives for all of the silo directors, so it is difficult to get them to see the bigger picture. A tender has been advertised for a section of the HS2 project and you see this as an opportunity to enter the infrastructure market. Provide a report to the CEO and main board of directors identifying why you should tender for the part of the HS2 project and how it could affect the company in the long term. The report should include the following:
1 A critical review the key parameters, advantages and disadvantages for selecting a project with particular focus on the proposed HS2 tender.
- Discuss statistics e.g from the office of national statistics, RICS e.t.c
- Discuss in comparison with other possible businesses e.g. Retail market and its decline
- Discuss trend in growth of the infrastructure market
- Uncertainty after Brexit
2 Critically analyse organisational structure and conflict management when trying to get an organisation under this structure to focus on the long term strategic goal.
3 Critically review the construction industry markets to identify the sectors that are likely to be sustainable in the long term.
4 Critically review the process of change management. Identify the most appropriate structure for this organisation, if it is agreed, that the company will undertake projects in the infrastructure sector.
- Discuss the Lewin Force Field
5 Review the possible types of finance that could be raised to restructure the company.
6 Identify the key risks when diversifying into new markets, and how in this instance, you propose to mitigate these risks. E.g Hidden costs
7 Critically review the process that needs to be undertaken to build the supply chain for the infrastructure project and the associated risks.