Effects of Competitiveness on the UK Construction Industry - Coursework Example

EFFECTS OF COMPETITIVENESS ON THE UK CONSTRUCTION INDUSTRY Task Effects of competitiveness on the UK construction industry Introduction Competitiveness refers to the ability of an organisation to offer products and services in a competent and operative manner compared to other relevant competitors. This means that the involved organisation succeeds in the international market without protection or subsidies. Therefore, competitiveness mainly refers to the advantage that an organisation obtains through superior productivity (Grave & Parry 2008). The measures of competitiveness in an organisation entail observing the firm profitability, export quotient, regional and global market. The success of an organisation in a given nation highlights the important factors that the organisation controls when compared to other organisations (Jones & Saad 2003). The UK construction industry enjoys various competitive factors that enable it to succeed in the current market. Some of the competitive factors within the industry include the good leadership strategies, strategic advantage, market advantage, good marketing strategies; furthermore, they have knowledgeable personnel, production advantage, modern technology, finance advantage, good administration and risk management advantage (Morton 2007). Effects of competitiveness on the UK construction industry The U.K construction industry has more than 300, 000 firms, which employs over 2 million individuals to perform several roles (Morton 2007). The construction industry typifies the material and products used in construction, suppliers and the producers of the construction material, building services offered by contractors, providers and installers of the services, constructors, sub-constructors, professional advisors , construction clients and the different organisations that specialise in design and building (Morton 2007). The sector accounts for 5 percent of the UK Gross Value Added, which is similar to the values that France, Germany and U.S contributes towards their economy (David & Male 2001). The construction industry in UK specialises in the residential and nonresidential building as well as infrastructure. The industry has an advantage because the designers, civil engineers, contractors and product manufacturers are globally reputable because they devise high-tech solutions to varied projects within the construction industry. The industry has been undergoing a tremendous growth in the infrastructure and commercial construction sector (Cobbold & Lawrie 2001). The UK construction industry competes in an aggressive global market. The industry has high production level and its goods and services are of high quality. This counteracts the competition from other industries worldwide. The construction industry adopts several approaches that enable it to increase its productivity and quality (Benati 2004). The UK construction industry embraces admirable leadership strategies because it has a long-term defined vision. This encourages the industry to meet the long-term developments. The leadership process also enables the industry to compete in the market because the industry gives room for success, letdown and learning. The UK construction industry maintains an appropriate learning environment because it allows people to learn from errors (Evers & Gerke 2008). This establishes a framework for the industry to improve on their developments; hence, reducing the possibility of failure. The leadership team within the industry highlights their expectations for them to monitor and identify whether they are competent enough to meet the set targets. Additionally, the leadership team devises effective decision-making methods, which are vital in the building and maintenance of competitive advantage. The industry has a diverse management team with different talents; hence, maximizing their production. The leadership team has good communication skills, which enables them to build the long-term relationship and advance their operational productivity (Great Britain 2008). The UK construction industry has good strategic methods that help them in devising high quality merchandise and services as well as increasing their productivity. For example, the industry has knowledge centers, which are the continuation and operational units of the industry. This specialise in improving knowledge management of different departments in the industry. The industry also focuses on key products, regions, customers, suppliers and investors; thus reducing waste. This accords them a competitive advantage (UK Construction overview 2004). The industry aligns with the market drivers by ensuring that they comprehend the market reality and look for better ways of handling them rather than rejecting such realities. In addition, the UK construction industry has a market advantage because the barriers to entry are reduced; furthermore, they understand the needs of their clients, have a respectable and stronger brand; thus, promoting the competitive position of the industry. Moreover, the construction industry has good marketing strategy because they value the satisfaction of their clients hence maintaining the competitive advantage (Jackson 2001). The marketing advantage within the UK construction industry is attributable to the ability of the industry to ensure that it handles all complains from both the clients and nonclients accordingly contributing towards customer satisfaction. The industry ensures that it maximises the customer life value, which helps it in maintaining its customers, increasing the competitive levels. The industry has high average sales leading to increased profits unlike other industries in the competitive market. The high competitive level is also attributable to the advertising recall, which enables it to get more repeat purchase and new clients (Construction in the UK economy report 2009). The industry also communicates to varied industries on the importance of its products and services. This supports the industry in maintaining the competitive position because people become aware. The UK construction industry has a marketing advantage because of the industry’s mechanism in promoting product and service compatibility, complexity, divisibility, perceived risk and relative advantage (European Conference Knowledge Management, Mcgrath & Remenyi 2003). The UK construction industry has organised personnel who are very effective in maintaining its competitive position. For example, the construction industry has organised its system in a competitive manner as seen in structured recruitment; furthermore, it motivates its employees, clients and offers varied training to the staff. The staffs have different types of working skills, which enables them to conduct complex and demanding tasks within the industry; thus, offering high quality goods and services. The industry has good management styles; thus, satisfying the market demand and managing disputes. This is important because it supports the industry in increasing production. The management team within the UK construction industry offers support to their staff members, which is vital because it encourages performance and productivity; furthermore, it acts as a source of employee satisfaction (Blake & Croot 2004). Competitiveness has enabled the UK construction industry to improve its production and service delivery advantages. The industry conducts capacity utilisation by ensuring that it rhymes the capacity requirements of its products with the market demand. In addition, the industry is flexible in its production and service delivery. This is important in the satisfaction of the market demand. The industry has improved its services and products, thus, increasing its competitive advantage worldwide (UK Construction Industry Overview completed by Corporate Watch UK 2004). Moreover, the UK construction industry applies modern technology in its business. This enables it to handle the competitive nature of construction industries worldwide. The industry is e-enabled because it communicates to different people around the world allowing it to promote its products. This encourages growth and increased profits (Dubois & Gadde 2001). The construction industry has a synchronized and integrated management information system that provides varying information on the opportunities, tenders and problems affecting the industry. This is vital to the construction industry because it helps in devising relevant solutions and increasing the productivity; therefore, maintaining the competitive advantage. Additionally, their is flow of information within the construction industry in UK; hence, leading to long-term growth within the industry. This increases the total profits (Foss 2007). The UK construction industry has a good administration body, which ensures comprehensive planning and management system. The industry believes that efficient and effective planning leads to better growth; hence, increasing general profits. The industry is also characterised by cooperate governance that is vital to the competitive nature of the current market because it improves the performance of the industry (Lindelow & Serneels 2005). Additionally, the industry offers bonus to its employees, which motivates and enables them to increase their general production. Furthermore, the UK construction industry observes the health and safety measures by ensuring that the employees are in good health while at work. These measurer have enabled the construction industry to increase its production; thus, maintaining its position in the current competitive market. Concurrently, the construction industry has good industrial relation. This is vital in the motivation of both the stakeholders and employees hence increasing the productivity and profits of the industry (Hans-Dieter & Simon 2009). The construction industry in the UK can face the current competitive nature of the worldwide market because it comprehends the risk profile. This is an important idea in the market because it will identify and manage the risks affecting the industry; thus, increasing productivity (Lu 2005). Conclusion The review addresses the effects of competitiveness in the UK construction industry by highlighting varied factors such as leadership, administrative advantages and improved technology. These enable the industry to compete in the highly aggressive market. The construction industry is beneficial in UK because the country benefits from high quality housing, hospital and transport infrastructure that are created by the construction industry. For the UK construction industry to maintain the current level of competitiveness in the market, it should ensure total commitment and change their mindset (Howes & Tah 2003). Reference List Benati, L 2004, Evolving Post-World War II U.K. Economic Performance, Journal of Money, Credit & Banking, Vol 36 Accessible at http://muse.jhu.edu/login?auth=0&type=summary&url=/journals/journal_of_money_credit_and_banking/v036/36.4benati.pdf Blake, N, & Croot, J 2004, Measuring the Competitiveness of the UK Construction Industry, Construction Economics and Statistics. Volume 2 Accessible at http://discovery.ucl.ac.uk/13153/ Cobbold, I, & Lawrie, G, 2001, Why do only one third of UK companies achieve strategic success? Accessible at http://www.lek.com/About/construction_survey.cfm Construction in the UK Economy report 2009, Accessible at from:http://www.businessballs.com/businessstrategyimplementation.htm Construction overview in the UK, 2005 Accessible at http://www.berr.gov.uk/whatwedo/sectors/construction/index.html David, L, & Male, S, 2001, Strategic Management in Construction, United Kingdom, Blackwell Science Ltd Dubois, A. & Gadde, E 2001, The Construction Industry as a Loosely Coupled System - Implications for productivity and innovatively, Chalmers University of Technology Evers, H. & Gerke, S 2008, Strategic Group Analysis, University of Bonn, Center for Development Research (ZEF) European conference knowledge management, Mcgrath, F., & Remenyi, D 2003, Fourth European Conference on Knowledge Management: Oriel College, Oxford University, United Kingdom, 18-19 September 2003. Reading, England, MCIL. Foss, N. J 2007, Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective, Oxford University Press Great Britain 2008, Construction matters. London, TSO. Graves, A., & Parry, G 2008, Built To Order: The Road to the 5 Day Car, Guildford, Surrey, Springer London. Hans-Dieter, E. & Simon, B 2009, Strategic Group Formation in the Mekong Delta - The Development of a Modern Hydraulic Society, University of Bonn, Center for Development Research (ZEF) Howes, R. & Tah, J. H. M 2003, Strategic management applied to international construction, Thomas Telford Publishing Jackson, S. E 2001, Recent Research on Team and Organizational Diversity: SWOT Analysis and Implications, Journal of Management, Vol. 29, No. 6. Accessible at http://jom.sagepub.com/content/29/6/801.abstract Jones, M., & Saad, M 2003, Managing innovation in construction. London, Telford. Lindelow, M & Serneels, P 2005, Strategy Choice and Cognitive Ability in Field Experiments, University of Oxford Lu, W 2005, An improved SWOT approach for conducting strategic planning in the construction industry. Accessible at http://cedb.asce.org/cgi/WWWdisplay.cgi?271817 Morton, R 2007, Construction UK: Introduce to the industry, Wiley-Blackwell UK Construction Industry Overview completed by Corporate Watch UK 2004, Accessible at http://www.corporatewatch.org.uk/?lid=277 Read More