Balfour Beatty Construction a Commercial Construction

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Background and introduction

Balfour Beatty Construction is a commercial construction company that was formulated in 1933. The headquarter of the company is in Dallas, Texas and service office in U.S. the parent company of the Balfour Beatty Construction is Balfour Beatty which is a London based group. The group is a world class construction, services and engineering organization. The competitive and strategic position of the company can be assessed by the management tools including SWOT and PESTLE analysis. The expertise of the Balfour Beatty varies from equipping, designing, manning, management and construction of the buildings. The basic aim of the company is to expand its business at global level. There are more than 20 operating companies working under the group name Balfour Beatty.

The company requires developing a sustainable business environment by making mergers and acquisitions in all business areas. The five force model of porter is used to analyze the influence of various forces on business strategies. The strategic direction of the company has been influenced by various technological, social, political and economical factors. The company has developed a policy regarding social responsibility and has been awarded for its efforts in this area. There are about 25,000 employees working worldwide that have created many issues regarding management of human resources. The main concerned areas include health, mentoring and training, pension, and management issues. The statistics shows that there are more than 100 graduates join the firm each year. The graduates are needed to be trained and mentored which requires finances and resources.

Market position

(Construction Industry Market Review, 2003). (www.unison.org.uk )

The construction company in UK share tenth of the gross domestic products in UK. The annual revenue is about £65 bilio (www.dti.gov.uk). The industry has been ranked in top 10 construction industries in UK (Crowley,2003)

The change of government in 2010 has affected the UK marker significantly and thus the comprehensive spending review. The market activity has been reduced due to changes in government policies. There are various sectors handled by the company with different market shares including house building, infrastructure, industrial buildings, building materials and commercial construction. In 2003, the house building contributed about 38.6% of the Ballfour Beatty construction company. About 9.2 percent of market share was contributed by the infrastructure work of the company. In industrial construction the company contributed about 5.3% in the construction market of UK. The commercial construction contributed about 18% of all construction work in the construction market. there is a wide variety of construction material including timber, cement, tiles, bricks etc. the building material market of UK has been found to be increased by 13.7% by Beatty contribution. The following diagram shows how the company has contributed to the UK market through different sectors.

The company’s market share compared to competitors has been presented in the following graph.

Customer analysis
The owners of large scale complexes with great infrastructure assets are the biggest customers of the construction company. Most of the customers are found to address their goals by developing partnership strategies and join with the construction companies. The concerns are just associated with the assets but to the beneficial outcomes for the beneficial delivery to the communities they serve. The partners are required to be equipped with the comprehensive knowledge, vision breadth for the better view of the big picture and to help for the formulation of optimal solutions. Porter’s five forces analysis

The competition state in the industrial business can be explained through five force model presented by Porter (Porter, 1985).

 Rivalry among Competitors

Considering the market capitalization...
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