CE 726CE 726STRATEGIC MANAGEMENT OF STRATEGIC MANAGEMENT OF CONSTRUCTION COMPANIESCONSTRUCTION COMPANIES

CE 726CE 726STRATEGIC MANAGEMENT OF STRATEGIC MANAGEMENT OF CONSTRUCTION COMPANIESCONSTRUCTION COMPANIES

INTRODUCTIONINTRODUCTION1010THTH FEBRUARY, 2006 FEBRUARY, 2006

BYBYAssoc. Prof. Dr.Irem Dikmen TokerAssoc. Prof. Dr.Irem Dikmen Toker

CONTENTSCONTENTSCONTENTSCONTENTSWeeks Main topics

12

3

4

567-8

9

10-1314

Introduction to concept of strategy: General outline of the courseIntroduction to strategic management: Definitions of strategy, strategic planning, strategic management framework, competitive advantage etc.Strategic Positioning – Part 1: The environment – Porter’s 5-forces model Strategic Positioning – Part 2: Strategic Capability – Porter’s value chain analysisStrategic Choice: Generic strategies, market strategies/diversificationSWOT workshopInternationalisation: Porter’s diamond framework, Dunnings eclectic paradigm, reverse knowledge transfer theoryStrategic planning: Organising for strategyStrategic decision making: Decision support tools for strategic decision-makingPresentation of term projects and class discussions.Strategic integration - Overall evaluation of presentations and discussion on integrated management activities within construction companies

PRODUCT OR SERVICE

COMPETITOR

MARKET / TARGET

STRATEGY IS ABOUT HOW YOU HIT THE BALL !

ORGANISATION

WEEK 1

PROJECT LEVEL

WEEK 1

WEEK 2

WEEK 3

WEEK 4

WEEK 5

HOW TO COMPETE WHERE TO COMPETE

WEEK 5

A SWOT example:Opportunities Threats

Strengths Damaged houses

New regulations Tourism Geotechnical eng.

Shrinkage Political Competition

Technical capability + 0 + + 0 0 +

Experienced staff + + + + 0 0 +

Client relations + + 0 + + + 0

Good company image + + + + + 0 +

Cost advantage due to size

+ 0 + + + 0 +

Weaknesses

Focus on excavation works

- - - + - 0 -

Low financial power - - - - - 0 -

Poor planning - - - - - 0 -

Low managerial capability

- - - - - 0 -

Lack of political contacts

0 - - 0 - - 0

WEEK 6

Firm structure, strategy and rivalry

Demand conditions

Factor conditions

Related and supporting industries

Determinant?

Chance

Government

Variable?

Shape of the layer =?

Relations (arrows) =?

Number of layers =?

PORTER’S DIAMOND MODEL AND ITS VARIATIONS

WEEK 7

WEEK 8

STRATEGIC DECISION MAKING

• MULTI CRITERIA DECISION MAKING TOOLS (ANALYTIC HIERARCHY PROCESS)

• ARTIFICIAL INTELLIGENCE TOOLS (CASE-BASED REASONING, NEURAL NETWORKS AND EXPERT SYSTEMS)

• SOFTWARES

WEEK 9

TERM PROJECT TOPICS“MARKETING” AS A VALUE ADDING ACTIVITY IN CONSTRUCTION

“INNOVATION” AS A SOURCE OF COMPETITIVE ADVANTAGE IN CONSTRUCTION

“CHANGE MANAGEMENT” AS A VALUE ADDING ACTIVITY IN CONSTRUCTION

“KNOWLEDGE MANAGEMENT” AS A VALUE ADDING ACTIVITY IN CONSTRUCTION

“IT” AS A STRATEGIC RESOURCE

“PERFORMANCE MEASUREMENT” TO ASSESS STRATEGIC CAPABILITY

“ORGANIZATIONAL EVOLUTION” AS THE THOERATICAL BACKGROUND OF STRATEGTIC MANAGEMENT

WEEK 10-13