Strategic Plan and SWOT Analysis of Techno Group of Companies - Research Paper Example

Strategic Plan and SWOT Analysis of Techno Group of Companies 1. Purpose The Techno Group of Companies came into being in 1979 with the initial name of the company being titled Techno Engineering Services.[Wel11] Ever since then the company has been taking on projects which led to the development of the company. With the dedicated amount of work that this company has put into the field of construction, they have set a benchmark among companies which function in the Middle Eastern regions of the world. The Techno Group of Companies main focus is not to work for the sole purpose of gaining profit but to adapt a strategy that leads it to achieving much more dynamically and continuing with sustainable growth. The company focuses on delivering the best quality along with ensuring that the health and safety precautions are well taken care of in the work environment. The main purpose of the company is to ensure that the company develops into a company that has a strong name in the growing market of construction. Also the company ensures that work and projects that they deal with are completed keeping their core values of integrity along with client focus, team work and accelerated growth in mind. This has previously kept the previous customers satisfied and been the sole reason why they have been doing business with the company since then. [Com] 2. Goal The purpose of the Techno Group of Companies revolves around establishing the name of the company into the society. The entrepreneurs with projects that associate to development in of the infrastructure of the community are the primary goals along with constructing the buildings that are a part of this infrastructure development. [Com] These functions revolve around the training of individuals who would serve the company as project managers, construction managers, design engineers and project architects which would be trained in a unique fashion and give the company the competitive advantage of the competition in these fields. The Techno Group of Companies also tries to focus on creating a name in other fields of work that would involve larger projects which can reach the scales of developing major dams and entire new cities. This ultimate goal leads down to increasing the market share and keeping the name of the company in the recommended list of countries where they have current projects already running. The company is already very proud of the fact that they are a front line company to complete some major prestigious projects in various countries. [Com] The goal of the company is to ensure that they remain the future leaders in the industry and diversify in related industries. [Wel11]. 3. Environmental Scan There are over 500,000 construction companies that are currently operating in the Middle Eastern region of the world. These companies consist majorly of companies that are operating on low scale projects. The development in these regions is relatively high as they consist of the developing countries of the world. Therefore, the demand for these facilities is high. General analysis shows that these regions require work to be done on almost all scales of construction and infrastructure development along with power generation. Countries such as Iran, Iraq, Dubai, Abu Dhabi, etc. all are focusing on heavy scale projects to develop their nations. Large projects also exist but are only assigned to companies with relevant work experience on similar types of major projects. With time the work that is being done, on construction, infrastructure and power based projects, is increasing as a fast pace to develop these countries. This industry has become a major attraction for small scale businessmen as well as large scale companies. Ensuring that they have a strategy to operate is their only key at surviving in this industry. This industry works on the basis of sub-contracting so this helps small businesses stay in the loop of the construction cyclic demand. Often big companies subcontract segments of their project out because they might not have the required skill or are utilizing that skill on another project. A need to figure of skilled labor is also required in this industry. The level of migration of skilled labor is limited therefore there is a need for increasing the labor force to keep the industry flourishing with workforce to rely upon. Obvious training and development of this labor force is also required so they can fulfill the demand of skilled labor. 4. Driving Forces That Affect Success Capacity constraints are a main cause of the company suffering. Some major projects require extreme machinery and expertise that this company does that possess. Also a lack of trained manpower and management with skills for such projects is also required. Quality is a main concern for the construction companies but ensuring that they have the correct quality control measures is a problem. Some needs of the contractors are not fulfilled because of this. The need to fulfill this gap is necessary for the success of this company to larger projects. 5. Internal and External SWOT Analysis 5.1 Strength The strength of an organization is the upper hand advantage that it may possess over the competition. This could even be the type of technology that a company has that is better than anything that the competitors have.[Wei09] The strengths could be the kind of characteristics that they have that give it an upper hand advantage over what anything in the similar industry may have.[Wei09] The Techno Group of Companies has a well-established platform for its operations. They have employee training facilities that excel those that competition has and these primarily focus on the field of construction. Along with that, the company can easily fulfill the private sector demand for building high raise buildings as well as developing the infrastructure of the location. The public sector also has the company on the recommended lists which give the company another advantage at helping the governments develop big projects such as pipeline and dams. Having an outstanding network of facilities globally the construction company can cater to the needs to any project that comes their way. Because of their previous level of work, they mostly take on major projects which utilize all of their facilities at work. The market for major projects in the Middle Eastern countries is extensive. Big projects which focus on developing entire economies are given out on tender.[Wei09] Bidding for a tender for Techno Group of Companies is not a problem because of the vast experience in the relative fields. 5.2 Weaknesses Nature is a major disadvantage for almost any company and the chances of it being a problem for The Techno Group of Companies is very possible. The machinery that they have could be damaged by storms and swept away into the sea during their projects that are mostly done towards the sea-side. Also major natural disasters such as tsunamis and earthquakes can wreck the entire setup that the company has. Also, the distance that the construction project may have to the location of the machinery is a common concern as it leads to reduced efficiency. A large amount of investment is required in industry to be invested in equipment and machinery and to keep them updated.[Wei09] The lack of educational background that the labor has becomes another major cause of concern for this company. The training process can somewhat be difficult and troublesome for them because of how hard it is to make the labor understand. The skilled labor ages and with time the required skills also change, so the need to constantly keep the workforce ready requires training. It can also become hard for the construction company to retain its staff during the times of no business. Therefore, the costs involved can somewhat become a hassle to manage. 5.3 Opportunities Many private companies are out there in the markets that try their best to keep a steady name in the infrastructure by establishing new housing projects. This boom in the housing community brings more construction opportunities for them as well. Also to develop the infrastructure of new locations that the government is working on often offer projects through public private partnerships which also tend to bring many new opportunities for construction companies. With time these companies are required to develop a supply chain through which they can involve themselves in projects that lead towards their chance at getting an opportunity to participate in tenders. Because this company has experience in the field of renewable energy, they also can look for opportunities in that market as they revolve around the same practices. The ability to outsource labor training has also become a possibility. There are companies which specialize in these regions so they can hire labor which are already trained in specific tasks.[Wei09] 5.4 Threats The lack of understanding long term market instability can damage opportunities for these companies and also result in company not expanding its training and development facilities to cater the needs and demand of the projects. Political problems in these regions are a major cause of concern for the construction companies along with raising security threats. Ensuring that the infrastructure is safe also is a challenge for the construction company.[Wei09] And the lack of political backing for projects also eliminates chances that these companies could have at participating in new tenders for projects. Natural disasters which are uncertain and leave this company bankrupt and even leave the economy in a state of chaos. This would prevent the construction boom which is the current state of the market. Inefficient planning and the lack of understanding the need of the project is sometimes also a key cause of the company losing a project. References Wel11: , (CEOs Message), Com: , (Company Profile), Wel11: , (CEOs Message), Wei09: , (Weisheng Lu), Read More