Fletcher Construction Company Analysis - Assignment Example

Fletcher Company Analysis

Fletcher Construction Company is one of the biggest organizations in New Zealand. Fletcher has managed to transform throughout the years with the intention of meeting the needs of its customers. Its ability to evolve with time is in line with the metaphorical paradigm of the “organism” metaphor. The company, which was established over a century ago, has managed to create a proper understanding of its market. This understanding in return has enabled Fletcher to transverse into other global markets faster as compared to other construction companies. Its ability to adapt to changing times such as the incorporation of technology and workforce has propelled its success not only in Australia but others countries around the world (Ahmed, 2015). Fletcher adaptations reflect the changes that organisms have to go through to survive in a given environment and this can also be applied in business administration and growth.

In 2001, Fletcher Construction had to split to meet the needs of the market. The company and after the split, the organization was able to focus on minor things in the environment which later on resulted in massive improvement and impact in their business. The business has grown through this and is now a multinational company in over 40 countries (Guthrie, 2011). The management system was one of the aspects, which the organization had to change to manage a large market. The strictly centralized form of management inhibited the growth of the business in many ways. For instance, it was challenging for the firm to work on multiple tasks effectively as there was only one chain of command (Jackson, 2011). With the application of new management strategies, the firm evolved and adapted to a state where the needs of the employees and the consumers were highly esteemed. This needs of customers had a positive impact as it more than doubled the productivity of the firm and its income.

Just like in the adaptation of living organisms, the company had to identify a suitable model through which it can survive and adapt to the environment. One of the ways in achieving this was by dividing the overall operations into five divisions. By it being a construction company, a lot had to be done in its management. The company had to find a niche in the market that would be conducive for its sustenance and division of labour was a critical area. This niche has made the company to operate in five categories which are: building products, local and international businesses, construction, and distribution and land developments (Overton, 2009). The company shifted from just home building to home renovations. There were many businesses which were venturing into the business of home construction, and this required the organization to find a way to be relevant and unique in the market. The introduction of home renovations was very significant and influential as it increased the company’s income by 25%. Remodeling of new houses was another great achievement as it targeted the minority market (Charteris, 2015). Renovations are cheaper as compared to full construction and thus an increasing number of individuals were drawn toward this. Making them relevant also worked to the advantage of the company. The company ensured that their traces are left on any project completed.

Venturing into international business is another adaptation, which benefited the organization. At times, organisms have to move out of their ecosystem to survive. This was the same with Fletcher Constuction. Moving out of New Zealand into the international realm was highly significant for its productivity. This step increased the companies earning by almost 45 percent. This transition was not smooth as they had to deal with issues of cultural differences(Ahmed, 2015). The management system at the point acted amicably as it provided a ground for more achievements to be done. Fletcher did a good job in studying each country that they had planned to venture in. This research had some impact in their managerial system. It is evident that in business management, a system that works well in one environment can be lethal if applicable to another environment. With this in consideration, Fletcher had to undergo a transition in the way that they do their marketing and operations at large. For instance, diverse cultures have their preferred way of building houses, and the environment also dictates the type of materials to be used in construction (Guthrie, 2011). With the aim of attracting more customers globally, it was mandatory for Fletcher to shift their way of thinking and adapt to the setting of each country that they ventured. This transformation marked a significant point as the company started to enjoy global acceptance from the countries and this resulted in a boost in their business. The leadership of the company also had to be transformed. Unlike in the past, Fletcher organisation started to recognise the importance of employees and how encouraging and motivating they worked to the advantage of the company (Morgan, 2011). In this way, leaders enhanced a conducive workplace where employees at all level felt appreciated and involved in the daily functioning of the firm. Their ability to recognise that people have a lot to give in the organisation ensured a smooth transition of information and allocation of duties.

The company has not always had a smooth path. There have been some instances where the management has been forced to undo some proposals and go back to the drawing board. Every company has its visions and plans that need to be completed or achieved within a specified time. Fletcher used this to measure their growth throughout the years, and in some instances, the objectives were not meant, or the plan was lethal to the firm. In such matters, the management had to act like organisms in the sense that they had to rethink their decisions and move to a more favourable idea (Jackson, 2011). Even though mistakes and misappropriations are harmful to the company, dealing with them effectively can be of great advantage to the firm. Mr Adamson, one of the members of the management team at Fletcher, gave a brief analysis of the rise and fell of Fletcher. He expressed his disappointment of not finishing the construction division project in his five-year tenure at the management position. Fletcher explained that it had expected operating earnings and returns to be about $525 million by the end of their financial year in June. This amount was down from their previous guidance of $610million to $650 million. This projections and analysis showcases areas where the company had to deal with (Fletcher, 2006). This result was primarily due to further losses in the interior, and building delays with their major projects and this resulted to a significant write-down of about $220M in the construction industry (Ahmed, 2015).

Another way through which the management of the company can be analysed is the metaphorical paradigm of the “brain”. This concept deals with making things vivid and relevant. There are many plans which happen in an individual’s mind, but the actual implementation is what matters. Every success is planned from the brain, and this can also be seen in the company. The success of the company throughout the years has been through proper implementation of plans and ideas that came from the employees. The company, having started from a small beginning of only one construction has grown throughout the years as a result of the visions and missions that have been placed by the management (Jackson, 2011). The leadership of the company has also changed throughout times. The leadership has moved from the sole aspect of leaders coming up with the ideas and plans and has now indulged employees in the whole process. Through this, employees can share their visions regarding the organisation and hence bring productivity (Charteris, 2015). This diverse way of coming up with ideas and implementation strategies forced the company to have various divisions. It was hard for the company to manage all these activities under one roof and hence to have divisions to deal with each aspect has been profitable to the organisation. With their move to go international, a pictured frame of their expectations and goals was highly significant. From the plans, it is evident that the management had the dream of going international and this could only be achieved faster through team work which is enhanced by the division of roles and duties.

Another area in which the organisation had to implement their thought into action was in the division and how this would affect their international business. The plan was properly laid out in theory, but it required the real actualization of the plans for the goals to be met. The concept of going global was met with various challenges which needed to be solved uniquely as every country has its unique problems (Ahmed, 2015). The application of technology greatly enhanced this plan and implementation. The five divisions that were originally designed by the organization made the process to be smooth as it separated duties of each employee. Every employee was linked to an area of belonging which enhanced corporation. In dealing with employees, the management had to think out of the box and focus on leveraging each employee despite their differences. In dealing with the brain metaphor, the company had to select leaders who are competent and intelligent (Fletcher, 2006). Most of the leadership positions given in the different ranks were based on academic qualifications and the work experience earned by every individual. The leadership aspect focused more from the central position. This means that even though the company ventured into foreign countries, the top most leaders were selected from New Zealand. This can be associated with the fact that most of the leaders had stayed with the company long enough to understand the flow of the business and that they had gained enough information. In all the five divisions, these leaders had a mental representation and understanding of what their role was in their deployed country. The leaders have applied the brain theory by testing a proposal before fulfilling implementing it. Even though this has been considered to be time-consuming, it has saved the organization resources.

The two approaches as used by the company have their strengths and weaknesses. The organism and brain metaphor have presented different approaches to dealing with the challenges that may be faced by the firm. The organism metaphor deals particularly with an adaptation of the company throughout the year’s for it to remain relevant (Guthrie, 2011). This aspect, Fletcher has managed to achieve t tremendously. Its ability to remain relevant in the market through the application of technology and new strategies has played to its advantage. The brain metaphor provides a different approach in that it deals with the set systems. For instance, it would have been better for the organization to address the leaders in their selected countries to save on the cost. Even though their approach is working in their selected countries, venturing into Asians countries will be a challenge as a result of their strict cultural adherence (Charteris, 2015). It is important for the company to focus on adapting in each country including its leadership style to have a competitive advantage over other companies. This was also enhancing their market dominance in several countries. One way of adapting can be through the nurturing of departmental and managerial leaders from their employees in each company. This will ensure the success of each firm and hence increase their overall success in the business.

Fletcher Company has managed to dominate the Australian market in the construction business. Due to its success, the company has ventured in 40 more countries, and the success trail continues. Despite some challenges, the company has been able to adapt to changing times and used visionary board plans to sustain their dominance in the market.