Competitive Strategies and Government Policies
Companies are becoming more competitive over the course of time. As the population grows so do new company’s aiming to be successful. For a construction company, this is especially true. Current businesses and new businesses want growth and the construction companies are who make the physical structure of the business happen. Included in this paper, is a discussion of how horizontal mergers, government policies and regulations related to externalities, and business decisions by management affect the construction business entirely.
The construction industry has been a result of a lot of change in the past few years. The construction industry consists of small business to the very large corporation. A small business in the construction industry can be considered a simple handyman business. A large business in the construction industry can be considered a new commercial builder. With the limited barrier of entry the construction industry has been threaten by new companies entering the market. New companies entering the marking have posed a threat in which causing the existing construction companies to have a strategic plan to prevent from closing their doors. With a strategic plan in place the existing construction companies will have the tools needed to compete with newer companies entering the market.
The recent events in the economy have increase globalization. Globalization is the activity between the world 's markets and businesses (Colander, 2010). This activity allows for import and export of goods between countries. This has been a new trend in the construction industry due to the fact that traveling abroad, shipping and receiving, and communication is easier than years ago. Globalization allows the construction companies to seek decrease prices from imports on some raw materials, resulting in passing the savings to the consumer.
References: AGC of America. (2011). National Construction Employment. Retrieved from www.agc.org Colander, D. C. (2010). Economics (8th ed.). New York, NY: McGraw-Hill. El-Diraby, T. E., Costa, J. J., & Singh, S. S. (2006). How do contractors evaluate company competitiveness and market attractiveness? The case of Toronto contractors, 33(5), 596-608. doi:10.1139/L06-017 Environmental Protection Agency. (n.d). Federal Environmental Requirements for Construction. Retrieved from http://http://www.epa.gov/compliance/resources/publications/assistance/sectors/fedenvconstruction.pdf. Investopedia.org. (n.d). Pigovian Tax. Retrieved from http://www.investopedia.com/terms/p/pigoviantax.asp#axzz1qpDK6cEf Johnson, J. H. (1995). An empirical analysis of the integration responsiveness framework: U.S. Construction equipment industry firms in global competition. Journal of International Business Studies, 26(3), 621-635. United States Department of Labor. (2011). Summary of the Major Laws of the Department of Labor. Retrieved from www.dol/gov/opa/aboutdol/lawsprog.htm United States Department of Labor. (n.d). Occupational Safety & Health Administration. Retrieved from www.osha.gov/ United States Environmental Protection Agency. (n.d). Construction Sector (NAICS 23). Retrieved from www.epa.gov/lawsregs/sectors/construction.html