Discuss about the Uncontested Market Space And Make The Competition.
The problems faced by Aurecon in the recent times are greatly the result of the different factors affecting its overall market scenario of the organization. the different problems like employment and training issues along with the different problems faced by the organization relating to the market competition and the different aspects of the workforce challenges faced by Aurecon. The implications of Aurecon’s needs to innovate new strategies and focus on a number of different issues for the overall application in the market for its sustenance. The entry of a number of global firms in the market greatly affects the overall performance of the organization as it has to take into account the feasibility of the different strategies in the market (Pisano 2015). Rising competition from international firms like PWC, KPMG and Deloitte have forced the company to work on a number of different strategies for the innovation of new measures to mitigate the issues faced by the organization. The different macro-environmental analysis negates the influence of the employee’s problems and the cut-throat competition that is bring faced by the organization due to increasing globalization in the country. The various analysis also fails to take into account the lack of the various firms to spend a larger amount of money on the services of the consulting firm. The globalization is bringing in a large number of competitors where the competition is becoming cut-throat, and the minimalistic pricing strategy will not help the cause of Aurecon’s growth. The different methods like 7s analysis and the VUCA analysis will help in the understanding the problems faced by Aurecon which were overlooked in the previous assessments. The Blue Ocean strategy helps in the understanding of the importance of the different strategies for the overall success in the market. The different innovative strategies need to be tested for the feasibility of their approach in the improvement of Aurecon’s market share.
In the Assignment 1 PESTLE analysis of the organization has been conducted to understand the external factors and its impact on the organizational objectives. Porter 5 force analysis is also a similar tool to understand the way external forces impact upon the organization and its business process. However enough emphasis has not been provided to mitigate the threats that have been detected. External factors are ever-changing and PESTLE analysis is not equipped to track the changes. The external factors and their influences are largely based on assumptions hence there can be certain mistakes. Factors like Political and Social elements cannot be changed by the company hence the analysis would not help much. Porter 5 force analysis, on the other hand, does not provide a dynamic view of the external forces that are acting on Aerocon. Porter intended to utilize the tool not for a single company but for the industry as a whole. However, presently most people use the tool for analyzing singular companies. This has been done in the case of Aerocon as well. Therefore, these can be regarded as some of the major gaps in external analysis.
In the case of the internal analysis SWOT and VRIO analysis has been done. SWOT analysis elucidates the strengths and weaknesses of the company, which has overlooked the case of employee satisfaction in the analysis. Artificial Intelligence has been shown as a threat, which may well be utilized as an opportunity to improve the business process of the organization.
The additional researches that will fill the gaps of the existing research are 7S framework, Blue Ocean strategy and VUCA model.
The McKinsey 7S framework would inspect the impact of changes in the company in the future and would provide a dynamic view of the changes. This framework helps in determination of the best strategies for the implementation of the proposed solutions and changes. Blue Ocean strategy helps in eliminating the competition and establishing a newly developed fertile marketplace for the company by inducing demand. The blue ocean theory was first devised in a book called “Blue Ocean Strategy” by W Chan Kim and Renée Mauborgne (Blueoceanstrategy.com 2018). This will help in eliminating the gap that does not provide the solution to the excessive competition that harms the business of an organization. The VUCA model explores the uncertainties and helps the management in determining what are the possible actions that can eradicate such ambiguities and uncertainties from within the organization. In the case of Aurecon, there are uncertainties about employability and market competition. VUCA analysis throws light on the overall business environment of the organization and detects the volatility, uncertainty, complexity and ambiguity within the system (Riehemann 2016).
There are number of theories to be taken in to account to fulfil the various gaps that are found in the different analysis of the previous assign met the various theories that can be implemented to innovate the new strategies for Aurecon’s success. The Blue Ocean Theory, The VUCA analysis and the 7s model will help in the formulation of the different strategies for Aurecon’s sustainability in the current market.
The blue ocean theory formulated by W. Chan Kim and Renée Mauborgne focusses on the development of various strategic and innovative moves for the success of the organization by using a list of different innovative strategies for the creation of a new uncontested market space for the company (Kim & Mauborgne 2014). The construction sector is undergoing a point of stagnation, and the continuous moving of the firms to international markets is becoming a problem for Aurecon. To mitigate this issue the company needs to take a number of steps and have a number of authentic and bankable approaches to have a headway against its employees (Mi 2015). The different strategies in the blue ocean approach of the organization would include cost-cutting in the employment sector, diversifying their approach to have a variety of other consulting other than the consulting in the sector of construction management. In the current scenario, the construction companies are opting for a more cost-effective approach, which has increased the competitiveness in the market. The number of companies has also greatly increased in the last two years. The Blue Ocean strategy will help the organization by inducing new and better approaches for the proper application of the various strategies in the different sectors of the business operation to ensure a better success ratio.
The 7 s model takes into account the different factors that affect the innovation and the different strategies affecting the overall marketing approach of the company. McKinsey’s 7s model helps in reframing the different organizational approach for the achievement of competitive advantage in the market (Singh 2013).
The VUCA analysis takes into account the different factors affecting the organizational behavior of the organization. The factors of the VUCA analysis include the volatility, uncertainty, complexity and ambiguity of the various situations faced by the organization. (Lawrence 2013) The analysis helps in the understanding of the various organizational behaviors and their impact on the performance of the organization.
Volatility: The volatility of the environment depends on the various factors that are affected by the employee attrition rate the business proficiency of Aurecon. The business environment of Aurecon is volatile, as it has to implement a number of different changes in the organization to ensure success in its ventures.
Uncertainty: The uncertainty in the organization is also the result of the competitive business environment in Singapore. The continuous rise in the competitiveness of the consultancy business is leading to the rise of the uncertainty in Aurecon’s future success.
Complexity: The complexity of the situation in the organizational approach refers to the different problems that the organization face in the understanding the demands of their clients. The demands of the clients are often very complex and need special approach to be met as in most cases the demand focusses on economic and subjective approach to their requirements.
Ambiguity: Ambiguity is one of the major issues faced by the consultancy in its micro as well as the macro environment. The ambiguity in the performance of the different tasks is the result of the unsatisfied employees or the clients which affects the organizational behaviour as well as achievement of organizational goals.
The selected models help in the understanding of the different issues that plague Aurecon and inhibit its growth. The different models help in the analysis of the hard systems and the soft systems affecting the overall market environment of the company. The different methodologies also help in the understanding of the continuous change in the market dynamics and how it affects the expectations of the clients and the employees therefore affecting the overall performance of the organization.
The literature review takes into account the various political, economic, social and technological factors affecting the overall scenario of Aurecon.
According to Hwang, Zhao and Gay (2013), the private political partnership has a major role to play in the success of the various construction businesses in Singapore. The public-private partnership in the country has a number of risks in the construction business which affects the overall market of the construction business. This rise of the instability in the construction business takes a toll on the Aurecon’s consultancy operations, as it is greatly dependent on the stability of the construction business approached for its operations. The political scenario related to the expatriate workers also makes it tough in operating a number of the construction business and thereby negatively affecting the business of Aurecon. The political scenarios of the country are thereby affecting the overall operations of Aurecon.
According to Zhao, Hwang and Phng (2014), the overall economic factors affecting the different environmental factors of the construction industry relating to the different issues they face while running operation in Singapore. The developing economy of the country along with the different factors affecting the overall industry. The economic competition in the Singaporean economy helps in the market to be cost-effective for the consumer but for the developer and consultancy the risks of surviving in the market is relatively high. One of the major risks relating to the economics rise when the operations are forced to operate in the scenario of a limited deadline, and the timeline overshoots the deadline. The economy of the projects also affects the costs of the different services offered by Aurecon.
According to Ling et al. (2014), the supply chains play an important role in the success of the different business strategies in the company. The construction business is dependent on the cohesion of a number of forces working in tandem for the better operations of the different subsidiaries of the organization. The volatility of the current construction business environment in the country is greatly affecting the overall scenario of the operations of Aurecon in Singapore. The different functions of achieving the overall success in the operation of the business are based on the achievement of common goals which will further help in strengthening the organizational structure.
According to Sawhney et al. (2014) there is increasing use of the ICT approach across the different Small, and Medium Enterprises in the construction industry play an important role in the success of the various organizations. The consultancy business like Aurecon faces an important issue in the form of the need for the market to have a number of internet-based services for the overall success of the different strategies implement3ed by them. The need of the cost-effective approach of the different strategies that are to be implemented in the form of the different strategies to be implemented by the companies for their overall success.
These strategies help in understanding the different issues being faced by Aurecon. The different scenarios affecting the construction industry business are also affecting the different scenarios in Aurecon. The increase in the cost-effective approach in Singapore along with the increase in the overall market competition has led to a number of issues in the market scenario. The rise in the competition along with the loss of the clients has greatly affected the overall environment of the industry.
Conclusion
Therefore, in the above discussion, it is seen that the different factors play a role in need of innovation for the mitigation of the competition faced by Aurecon in Singapore. One of the major issues affecting the overall growth of the consultancy business is the overpowering presence of the different strategies that have been employed in the operations. The mitigation of these issues needs a number of different strategies to be focused on for the success of the different operations in the city. The different operations of the Aurecon need to be changed according to newer and more innovative measure focusing on their internet-based approach for their success in the different business environments. The different innovative strategies will help in the overall development of the different strategies that will help in the development or organization.
References
Blueoceanstrategy.com., 2018. What is Blue Ocean Strategy | About Blue Ocean Strategy. [online] Blue Ocean Strategy. Available at: https://www.blueoceanstrategy.com/what-is-blue-ocean-strategy/ [Accessed 16 Mar. 2018].
Hwang, B.G., Zhao, X. and Gay, M.J.S., 2013. Public private partnership projects in Singapore: Factors, critical risks and preferred risk allocation from the perspective of contractors. International Journal of Project Management, 31(3), pp.424-433.
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.
Lawrence, K., 2013. Developing leaders in a VUCA environment. UNC Exec Dev, pp.1-15.
Mi, J., 2015. Blue ocean strategy. Wiley Encyclopedia of Management.
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review, 93(6), pp.44-54.
Riehemann, J., 2016. Organizational Cultures in the Future Tense: An Analysis of Cultural Adaptation to VUCA Environments (Doctoral dissertation, Universität St. Gallen).
Sawhney, A., Mukherjee, K.K., Rahimian, F.P. and Goulding, J.S., 2014. Scenario thinking approach for leveraging ICT to support SMEs in the Indian construction industry. Procedia Engineering, 85, pp.446-453.
Singh, A., 2013. A study of role of McKinsey’s 7S framework in achieving organizational excellence. Organization Development Journal, 31(3), p.39.
YY Ling, F., GY Toh, B., Kumaraswamy, M. and Wong, K., 2014. Strategies for integrating design and construction and operations and maintenance supply chains in Singapore. Structural Survey, 32(2), pp.158-182.
Zhao, X., Hwang, B.G. and Phng, W., 2014. Construction project risk management in Singapore: resources, effectiveness, impact, and understanding. KSCE Journal of Civil Engineering, 18(1), pp.27-36.
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