Individual Report
rupali
MBA600_Lendlease.pptxBy: Shubham Goyal
CAPSTONE: STRATEGY (MBA600)
Introduction
The COVID – 19 Pandemic has worsened the economic situation. Now, all companies are looking forward what strategy they will use to overcome this economic downfall. This Pandemic badly effect every sector whether it is construction, manufacturing and other industry.
In this presentation, it is discussed that how the COVID – 19 has changed the construction market. What kind of challenges that this market will face and how the new opportunities emerge that will give new dimension to this market?
The company that is selected is “Lendlease”. It the next slides it is discussed how post COVID – 19 economy bring changes in strategies and operations of company.
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About Lendlease
Founded by Dick Dusseldorp in 1951, Sydney
One of the biggest construction company in Australia, with 13,000 employees
The company works for both customer markets as well as the business markets.
Listed in Australian Stock Exchange
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External Environment
Scanning: The Lendlease can look for the changing business environment and work on improving their market share for better outcome.
Monitoring: Looking for construction trends, designs and new approaches aims to attract more customers so that people expect more from the company in order to build a sustainable approach.
Forecasting: Measuring the risks that occur during any change due to construction enhancements industry so that they can properly managed before their occurrence.
Assessing: Lendlease should look for a better timing for capturing more consumers so that their scope remains extensive for better profit margins.
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Internal Environment
Human Resource: The Lendlease has a poor reputation of keeping the employees happy because the turnover ratio is very low. This unfriendly environment should improve for better efficient outcome.
Organizational Culture: Employees leaving the company more often is also because of the poor weak culture inside.
Structure: The Lendlease have the vertical structure of management which means there is more hierarchy to follow for the employees.
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Competition
Fulton Hogan: A New Zealand based company founded in 1933 which has a wide network in Australia and earn more projects than the Australian companies.
ADCO: Australian based company since 1972 and have been the biggest competitor for Lendlease since their project aims are mostly similar and target same kind of customers.
Hutchinson Builders: The one of the most oldest construction company since 1913 and completely owned by privately has established a large scale of market by bringing new innovative technology in the industry.
The competitors are heavily involved in rigorous process of improving and keeping the environment sustainable.
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Strength and Weakness
| Strength | Weakness |
| Big Market share Retail ownership is profitable Better design application | Poor Work Environment Unhappy Employers Act slow to the trending changes |
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Sustainability
The Economic stability of Lendlease is very strong as they have a huge network established around the country.
The Social application like employee sustainability, stakeholder appreciation are weak for the company.
For construction companies the environmental concerns are crucial for better atmosphere and have to follow proper regulations.
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COVID - 19
The recent Pandemic has changed the dimension of the Global economy
Alarms of recessions and even depression in some cases.
Governments working for the stimulus packages.
The construction industry is linked to many other industries like cement, paints, bricks, marble and etc.
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Post COVID – 19: Sourcing
The Lendlease will be looking for more cost reduction methods
Use of previous network and relationship will be more beneficial at such moments.
Lay off their employees in order to reduce further costs.
Maintain the supplier network, rather than making new ones.
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Post COVID – 19: Changes in Chain
Better logistics strategy for the movement of goods during the construction projects.
Following the concept of no inventories or also known as Just in Time Inventory.
Less waste of materials used in the construction and implement the concept of Lean approach.
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Post COVID – 19: Pricing Strategies
Keeping the prices less because have to grab the opportunity for better market share.
Market Penetration strategies and contracting out with low prices
The focus would be on Return on Investment Pricing so that the financial targets are met.
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Post COVID – 19: Opportunities
Being the leader in the unstable market.
Making sure that the factories associated with Leanlease are under the control of the company.
Better outsourcing strategies.
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Conclusion
The company has to take risks for better employee conditions so that more competent people are hired.
Look for new innovative opportunities by approaching the technology sector.
Focus on limiting the competition by taking big steps in regards to expansion and diversifications.
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References
Jianga, R. et al., 2018. A SWOT analysis for promoting off-site construction under the backdrop of China’s new urbanisation. Journal of Cleaner Production, 173(1), pp. 225-234.
Luo, Y. & Liu, Y., 2018. Construction of the Course of International Talents Training of Chemical Engineering Specialty in Higher Vocational Education Based on SWOT Analysis. The International Conference on Cyber Security Intelligence and Analytics, Volume 1147, pp. 505-511.
Picot, A., Monnin, T. & Loeuille, N., 2019. From apparent competition to facilitation: Impacts of consumer niche construction on the coexistence and stability of consumer‐resource communities. Functional Ecology, 33(9), pp. 1746-1753.
Z, X. et al., 2020. Construction and evaluation of a novel diagnosis process for 2019-Corona Virus Disease. Zhonghua yi xue za zhi..
BBC News, 2020. Coronavirus: A visual guide to the economic impact. Business - BBC News, 03 April.
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