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Prepare an that discusses the premise that there is no single ideal organistion - Essay Example

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Introduction Construction industry is one of the industries that have revolutionised the world we live in. Through its constant innovation and creativity the world has evolved over the years in terms of buildings and civil engineering projects. Construction firms have in turn faced numerous challenges from governments, environment and nature in general…
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Prepare an essay that discusses the premise that there is no single ideal organistion
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Download file to see previous pages It is important to note that nations depend on their construction industry for their infrastructural developments making them quite important in facilitating national development. In this regard organisations offering construction work tend to be well regarded while certification requirements and procedures prove to be rigorous. In many countries like the US and UK among others, there are definite rules and oversight bodies set to regulate the actions of construction firms. This paper aims to consider the construction industry and its various facets in developing the premise that there is no single ideal organisation. PESTEL analysis of the construction industry Political/legal factors Government involvement entails the various interventions in regards to set laws and standards in the construction industry. As mentioned earlier governments have established regulations and standards for construction organisations to follow. Most of them are in regards to safety and health of workers since construction entails risks that result in many accidents and fatalities in some cases (BIS 2011). In case of failure to adhere to them stiff remedial actions like fines are imposed after inspections or when an accident occurs. Taxation is another aspect where governments exert pressure in the construction industry. This is an industry whose taxation is high mostly due to their heavy-duty kind of work (Liebing 2001). The contracts also attract hefty sums of money which the governments are quite willing to tax. Regional Norms In regards to the European organisations the EU laws also affect how these construction firms operate. Regional trading blocks have become quite influential with time as the world becomes a global market place. EU for example aims at establishing common standards not only for the construction industry but to all (Dalby 1998). In this line firms are being forced to follow alien laws that are not necessarily desirable for business. Economic Global factors like the 2008/09 Global Economic Crisis came to shutter many companies in the construction industry while others are struggling to remain afloat. This crisis led to lower developments in the housing sector especially in the affluent nations with high debts owed to the construction firms. This and more turbulent market conditions are increasing and firms are being forced to adapt to these situations through change management strategies. When dealing in the global market there is also a risk of losing on currency fluctuations mostly the dollar (Finkel 1997). Social factors Population growth acts as a leading factor as growth in population almost always results in need for housing. Looking at the Asian giants and the emerging market economies in Africa and South America, there is a great deal of construction going on since population is also increasing both from within and that of immigrants from neighbouring countries (Kazi 2005). Such situations lead to development of niche markets for construction industries. Development of infrastructure like roads and railway networks are also on the increase so as to ease mobility of the increasing population. Technological factors Internet since 1990s has come to revolutionise how construction firms do business. They have taken the advantage by using it as a selling medium and to gain a wider market base while improving ...Download file to see next pagesRead More
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