Measures to avoid the collapse of Jarvis construction - Essay Example

? MEASURES TO AVOID THE COLLAPSE OF JARVIS CONSTRUCTION Jarvis was once the leading construction company in the United Kingdom. Jarvis Construction Company failed to have a high commitment to strategic organizational management. The company needed to adopt a systematic way of planning and thinking that would ensure the sustainability of competitive advantage. Jarvis Construction Company could have avoided collapse by ensuring an intensive analysis of the environment prior to formulating strategies. This should have been followed by a clear plan of implementation to ensure the mission of the construction firm remains on track (Adamson and Pollington, 23). Organizational strategic management demands that a company must remain in control of its strategies of operations. Jarvis construction lacked extensive external analysis in the United Kingdom construction industry. This caused the management to squander the opportunities available within the construction market. The conflict between price water house coopers and Jarvis was an early indicator of strategic collapse of weakening. The management of the company failed to appreciate the fact that strategies are not always implemented exactly as planned (Radosavljevic and Bennett, 19). Strategic organizational management in the construction industry demands flexibility depending on the market pressures and the need to retain competitive advantage. The unforeseen environmental events affected the performance of the company adversely (Adamson and Pollington, 23). This could have been avoided by appreciating the gap between the strategies which are intended and those realised. The invariable changes in the course of implementation lead to profit warnings and inevitable losses. The management needed to have a constant strategic action with is dynamic and responsive to market pressures. The management of Jarvis Company could have invested in skilled and analytical thinkers. The training of personnel capable to digesting data and bring out the desired direction. The first change in the construction and the rising competition was not addressed in time. The failure of the company to adapt to the environmental influences has a profound effect on the firm (Radosavljevic and Bennett, 19). The management of the company needed to utilize industrial organization to ensure that the industry maximized its competencies and resources (Adamson and Pollington, 23). This would have course Jarvis Construction Company to influence the strategies of the rival companies or even alter the industrial structure in the United Kingdom. An analysis of the operations shows that Jarvis Construction Company lacked a distinctive competence despite the strong reputation and decades of experience, the construction giant succumbed to the gradual market pressure which can be attributed to lack of operating strategy. The value of the company continued to fall (Radosavljevic and Bennett, 19). The management of Jarvis Construction Company failed to enhance its tangible and intangible assets. These included information, equipment, capital and knowledge. The management of the Jarvis admitted failure in delivery of quality services of London-Glasgow express. This could have been avoided by ensuring that the operational strategy is run effectively and effectively. The risk management strategy of the company needed to be reinvented to address the current threats to within the construction industry (Adamson and Pollington, 23). This is evidenced the results of the Potters Bar crash in Hertfordshire in 2002. The company needed to invest in sustained competitive advantage through excellence in service delivery. Systematic and comprehensive financial strategies could have been used to ensure the company avoided a financial meltdown. The financial advisers of Jarvis Construction Company should have helped the company to capitalize of the favorable market situations. Overreliance of a single client posed directly threats to the financial stability of the company (Radosavljevic and Bennett, 19). Diversifying clients and building a robust and effective capacity can ensure that withdrawal of the single client does not plunge the company into losses (Adamson and Pollington, 23). Construction of long-term viability programs and financial strategies would have ensured that Jarvis remained competitive. The management of Jarvis insisted that the trading conditions remained an enormous difficulty. The company needs to rebrand and reinvent its strategies and outlook (Radosavljevic and Bennett, 19). This can be used to rectify the negative outlook that the company has been getting. The suspension of shares, failure to secure financial support from lenders and the issuing of profit warnings indicates the negative image of the company (Adamson and Pollington, 23). This can be resolved through intensive campaign to rebrand. The ability of Jarvis Construction Company to win new tenders should be enhanced by reconstruction of the firm’s image. Overdependence on Network Rail inspired to lessening of creativity and conservativeness. The leadership of the largest construction company in the United Kingdom has been vulnerable to pressures. Development of new solutions to meet emerging demands in the UK construction industry is central in the profitability (Adamson and Pollington, 23). Strategic integrity could have helped the company to avoid accidents that hurt the image of the company. The management needed to ensure that there was a shared understanding of the mission and the direction of the construction company (Radosavljevic and Bennett, 19). This averts credibility loss and ensures cohesiveness of the organizational operations. Strategic ambiguity in terms of standards of service delivery and management of resources can be reduced through training. Market analysis should be used to reshape the strategy and operations of Jarvis Construction Company. This should address the internal organizational aspects that are weakening the operations of the company. Increasing teamwork and reducing organizational hierarchical structures can improve the performance of the organization (Radosavljevic and Bennett, 19). This should include ensuring the employees are motivated. The instability and the threats of layoffs have been affecting the performance of the employees. Jarvis of Construction Company needs have a lean and effective workforce (Adamson and Pollington, 23). This should be accompanied by enhanced remunerations and investment in the relevant competencies. The company needs to understand the operations and capabilities of new market entrants and competitors. To curb the growing competition, the construction company needs to introduce unique and competitive resources and services. Competitive strategies need to be launched after the market research. The strategies should include timely execution of strategies, meeting with stakeholders and creditors. Works Cited Adamson, David M., and Tony Pollington. Change in the Construction Industry: An Account of the Uk Construction Industry Reform Movement 1993-2003. London: Routledge, 2006. Print. Radosavljevic, Milan, and John Bennett. Construction Management Strategies: A Theory of Construction Management. Hoboken: John Wiley & Sons, 2012. Print. Read More