Business Decision and Policy Making
Business Decision and Policy Making
1- Business Concept
William Construction Company will be located in Florida U.S. It will be offering construction services to customers, such as a development of building plans, construction consultation services and building and construction management services. The firm will be targeting all individual and institutional clients who need buildings completed for them in the entire state of Florida. The headquarters of the company will be situated in Miami, Florida. Serving the constructions needs of the customer will be the priority of the company. In the recent years, the construction industry in the state of Florida has been on the rise. Thus, the company intends to take advantage of the growing construction business, by offering superior construction services to individuals and institutions who intend to construct offices, residential homes, roads and other structures.
The main aim of the William Construction Company will be to ensure it survives in all economic and financial condition and provide quality services to the target customers. For purposes of achieving its goals, the mission, vision and value statements will provide strategic direction to the employees of the company and other stakeholders, such as customers, creditors, and shareholder (Barney & Hesterly, 2008). The following are the strategic mission statements for the enterprise;
Mission statement: William Construction Company will always endeavor to build long lasting relationship with clients based on performance, value, integrity, and satisfaction of customer needs. The company always is committed to meeting the evolving needs of the customers by providing high-quality services to our team of dedicated and qualified individuals.
Vision statement: William Construction Company is more than a construction firm. As a company we have a team of employees who are dedicated to bringing growth to our society engage in sustainable activities, collaborate with existing firms and aids our customers in making their construction dreams a reality.
Core Values: For purposes of attaining the company mission and vision, several values guides the employees in their day to day work. The core values of the company include innovation, creativity, integrity, quality services, employee motivation, honesty, and collaboration and sustainability practices.
3- External Environment
3a- Opportunities for Growth
The construction industry in Florida offers a tremendous opportunity for growth. In the recent years, the demand for houses, especially domestic homes has been on the rise. More individuals are striving to own their homes in Florida. Therefore, the demand for construction services in the home has been on the rise, and the demand will increase as more get employment opportunities. Also, the state of Florida has become a destination of many regional and international businesses intending to expand their business activities. As a result, the demand for office construction services is high. The demand will continue to grow in the future, as the Florida government is implementing economic policies aimed at attracting more investors in the state so that employment opportunities can be created for the residents.
The government of Florida has been committed to expanding its infrastructure so as to attract more investors and improve the quality of life of the residents. Thus, there is a promising market for the road construction and other social amenities in the target market. Based on the growing demand and prospect of individuals and institutions expanding their business activities in Florida, there is an opportunity for growth in the market. The opportunity for growth provides the firm with an opportunity for enhancing its image so that it can benefit from the future opportunities presented by the target market (Hill, Jones & Schilling, 2014).
3b- Competitive Forces
Those operating in the Florida construction industry are faced with different competitive forces. To start with, they are confronted with the force of threat of new entrant in the industry. Despite, the fact that starting a large construction company requires the enormous amount of capital, the growth of small and medium construction enterprises in the target market has been on the rise. Thus, the ability of individuals to enter the market and start small companies, offer a major threat to the large corporations, particularly about winning customers and maintaining the market share (Hitt, Ireland & Hoskisson, 2012).
The second major force is the availability of substitutes. There are available substitute services that customers can seek to meet their construction needs. Hence, the competition in the market is high as one tries to compete with substitute services. The other critical force is the bargaining power of the customer. The client has high bargaining power, mainly due to the availability of alternatives, and this lowers the ability of the company to negotiate for better payment terms (Hitt, Ireland & Hoskisson, 2012). The last force is a high degree of rivalry. Many construction companies are operating in the state, some with the multinational status. Thus, they offer stiff competition to any business entering the Florida market.
4-Company’s Resources and Capabilities – Value Chain
4a- Value Enhancement Operations
The customers of the company are the most valued asset. For purposes of providing them with high-quality services, the operations of the company will be key to enhancing the value of the services they receive. The company will be committed to ensuring that it put in place measures designed to ensure that the needs of the clients are meet, by responding to their inquiries and complaint on time (Thompson et al., 2013). Hence, the operations of the company will be customer driven, meaning that they will be aimed at ensuring that all the needs of the customers is responded to, and they receive value for their money.
4b- Value Enhancement Marketing and Sales
As part of ensuring that the value chain contributes to the success of the company, to retain and win customers, the marketing process will involve providing customers with a discount as part of marketing and sales effort. Discount on the prices charged for services of the company will help in winning and retain clients in the future (Blocher, Chen & Lin, 2008).
4c- Value Enhancement Customer Service
Providing high-quality client services to the target customers will be critical when it comes to their retention both in the short run and in the long term. The company intends to create a client service team that will respond to the needs of customers in a timely and professional way. The team will be responsible for ensuring that the clients are valued and provided with high -quality services at any time, and this will increase the value of the services they receive from the company giving the firm competitive edge (Hill, Jones & Schilling, 2014).
4-Competitive Strategy
The company intends to make use of Porter’s differentiation strategy as parts of it technique of gaining competitive advantage (Freeman, 2010). The differentiation strategy will involve the firm making its construction services unique regarding quality and pricing. The company will come up with unique features of its services that will make them superior and unique to those offered by other players in the Florida construction sector. Differentiating the company services will help in winning more customers and retaining the existing customers (Thompson et al., 2013). The company must ensure that it makes the customers believe that its services are unique and better compared to the one offered by the major competitors so that it can have a competitive edge.
References
Barney, J. B., & Hesterly, W. S. (2008). Strategic management and competitive advantage: Concepts and cases. Upper Saddle River, NJ: Pearson/Prentice Hall.
Blocher, E., Chen, K. H., & Lin, T. W. (2008). Cost management: A strategic emphasis. McGraw-Hill/Irwin.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
Thompson, A., Peteraf, M., Gamble, J., Strickland III, A. J., & Jain, A. K. (2013). Crafting & Executing Strategy 19/e: The Quest for Competitive Advantage: Concepts and Cases. McGraw-Hill Education.
