Q

The basic objective of this coursework is to understand and study of strategic project management of SCC company

Home, - Sarooj Construction Company (SCC)

 

Introduction

 

Company Background:

 

Sarooj Construction Company (SCC) is one of the fast growing and most respected Building

 

Construction Organization in Oman, known for the high professional quality of its work, its

 

reliability and its level of service. Sarooj Construction Company is founding member merged

 

from long times of extensive experience with the skills on construction management techniques

 

and tools. It established on March 2006 based on the intimate knowledge of the local

 

environment and its sensitivities and needs. As well, Sarooj Construction Company is carving a

 

niche through it's the passion on engineering and adherence to its values in the Arab world and

 

in particular Oman. SSC strives to become world class developer and services provider oil& gas,

 

power & infrastructure industry. The company emphasis to provide the resources to preserve its

 

core values. The cores value that the company cares about them are human development, quality,

 

integrity and health &safety. The company specializes in infrastructure projects, particularly

 

roads and airstrips, civil earthworks and concrete works. Sarooj built highways, cornice roads,

 

national roads, tunnel (open cut), and car parks. It have built several projects over the years. The

 

projects of the company are spread all over the country even desert area and marina from

 

Musandam to Salalah. The border road project and security fence of 330 Km length is a largest

 

project for the company. Also, SCC is getting tender to develop along 7 km of beach land in the

 

Wave resort project and Muscat Corniche Extension. SCC has three main bases: Ghala, Azaiba,

 

and Bid Bid. In addition to the Sultanate of Oman, SCC also has associates in Qatar and Abu

 

Dhabi. The competitive companies to SSC are Galfar Engineering and Contracting, AECOM

 

Engineering Company and Contracting Consolidated Contractors Company. This assignment

 

will include the strategies of Sarooj Construction Company, critical analysis (SWOT, Pestel, and

 

five Forces) and our recommendation, alternative strategy and its implementation.

 

 

History:

 

SCC continues to deliver the projects safely, on time, and as per the contracts specifications

 

remaining true to its core values and to a legacy that has begun in 1973 by its founding members.

 

The founding members of Sarooj Construction Company (SCC) merged extensive years of

 

construction experience with the skills of younger highly educated engineers who have modern

 

outlooks on construction management techniques and tools. SCC rapidly earned a place among

 

 

 

 

5

 

the top construction companies. Building on the experience and strength of its sister companies

 

in Al Taher Group, on the intimate knowledge of the local environment and its sensitivities and

 

needs, Sarooj Constructions Company (SCC) was formed in March2006, in the Sultanate of

 

Oman.

 

 

The clients dealing with the Sarooj Construction Company:

 

SCC take pride in serving all the clients to the very best of SCC abilities in the most professional

 

and ethical manner. SCC outstanding rate of client satisfaction demonstrates it successful history

 

of meeting each client's unique needs. It serve both private and public sectors across different

 

industries, onshore & offshore, oil & energy & Water Company. (Sarooj.com, 2017)

 

Several clients deal with Sarooj Construction Company such as:

 

1. Petroleum Development Oman.

 

2. Occidental Petroleum Corporation.

 

3. BP Company.

 

4. Shangri-La Hotels and Resorts.

 

5. The Wave Muscat.

 

6. Haya Water Company.

 

7. Hyundai Engineering and construction.

 

8. JAPEX Petroleum Exploration LTD.

 

9. Maersk Kuwait Company.

 

10. STATOIL Company.

 

11. Wartsila Company.

 

12. Bach Soletanche Company.

 

13. Encana Company.

 

1. SWOT analysis:

 

Change is an unavoidable part of community organization. SWOT is form of strength,

 

weakness, opportunity, and threat. It is an organized planning technique used in the study and

 

planning of the environment and strategic decisions of the company. This technique identify

 

the strength and weakness of an organization, as well as, broader opportunity and threat.

 

(Ctb.ku.edu, 2017) SWOT analysis helps to improve the strategy of company by making sure

 

that they are consider the strength and weakness. In this case, the internal can be change over

 

time if they work and use the opportunities in their side. In other hand, considering the

 

opportunities and threats which are in face of marketplace cannot be change.

 

(Bplans Blog, 2017)

 

SWOT might use to find possibilities solution to problems, make where the change is

 

possible if there is turning junction, and identify the decision making for the best path. The

 

directions and choices could be clarified by identify the opportunities of success.

 

The table below show SWOT analysis for the Sarooj Company:

Summary:

Sarooj Company's management has to make decision to enhance and improve their business.

 

SWOT used to define the business of the company find a better solution to overcome the

 

weakness and strength the company's effort to become a prime contractor in their respective

 

region. The present condition of the market, they should submit tenders in a very competitive

 

price and obtain some good contract. To develop the company office to a new office in

 

different area is costly. The overall progress of the company is well and stable but some

 

modification training to the staff can improve productively much better.

2. PESTLE Analysis (Macro- Environment Factors)

There are many uncontrollable factors which affect and influence the strategies and performance

 

of company such as: political, economic, social, technology, environmental and legal. One

 

example of these macro environmental factors is shown below.

? Political Factor

 

Sultanate of Oman has pursued the infrastructure development to complement tourism and

 

logistics in the country. This is because the prices of Oil have hovered approximately $55 a

 

barrel since the beginning of 2017 following deal of organization of petroleum exporting

 

countries (OPEC) which saw nearly 1.8 million barrels of oil slashed from markets every day. As

 

a contractor, one will focus on the development of tourism in all parts in Oman.(Times of Oman,

 

2017)

 

 

In the neutral stance of the Sultanate of Oman with it neighbor GCC countries; SCC has the

 

opportunity to expand operation in UAE and Qatar. (Sarooj.com, 2017)

 

 

? Economic Factor

 

Between 2015 and 2017, there was significant government spending cuts. In 2017, Subsidies are

 

being takes off and tariffs of electricity for corporates have been increased by 30-50 per cent.in

 

 

 

10

 

this year, a sequence of the revenue of non-oil raising measures like an increase in income

 

corporate taxes, fees and exemptions phasing out have also become effective.

 

 

In 2018 and in conjunction with other GCC countries, it expect to implement the value added tax

 

(VAT) at 5 per cent which is likely to be generate 1.5 per cent of gross domestic product (GDP)

 

in revenue of additional. (Times of Oman, 2017)

 

 

In these years, construction sector in Oman witness the intense competition following the influx

 

of contractors from other Countries which however, has not slowed down the growth of SCC.

 

(Sarooj.com, 2017)

 

 

? Social Factor

 

The current population of Oman in 2017 is 4,724,123 which based on the latest estimates of

 

united

 

nation

 

and

 

it

 

is

 

equivalent

 

to

 

0.06%

 

of

 

the

 

total

 

population

 

of

 

the

 

world.

 

(Worldometers.info, 2017)

 

 

Aside from the Omani population we have steady increase in the number of expatriate. In 2017,

 

approximately 2 million is the total number of expatriate workforce. (Times of Oman, 2017)

 

 

Also, in Oman the average tourist arrivals is 250.69 thousand from 2015 until 2017 which

 

reaching the high of 436 thousand in 2016 and a record the low of 123 thousand in 2017. The

 

fast rate of population growth (2.05% in 2017) requires a continuing expansion of infrastructure

 

such as Muscat International Airport and port of Sohar as well as utility plants like the water

 

treatment plant at Nimr.

 

 

These expansions entail a corresponding increase in the number of tourist hotel, accommodation

 

flats and resorts. In fact, Muscat as present is a city developing with shopping malls and

 

restaurant .Sarooj construction company (SSC) takes a major part in the construction of these

 

facilities. (Sarooj.com, 2017)

 

 

? Technological Factor

 

Modern technology is very critical to satisfy the sustainability criteria in oil and gas industry.

 

Project in oil and gas industry in Sarooj Construction Company required the purification of a

 

thousand of cubic meter of water contaminated with oil waste products every day. Using reed

 

bed is technology where the residual hydrocarbons in water are broken down by growing of

 

 

 

 

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bacteria on the reed roots which then purify it. The process requires is sustainable and no

 

power.(Sarooj.com, 2017)

 

 

? Environmental Factor

 

Gonu cyclone which hit the coast of Oman is causing considerable damage. The marine of sarooj

 

Engineers Company had to change their parameters design to account lessons learnt. Jalali fort

 

was one of the areas that affected by cyclone Gonu. For conceptual design against the action of

 

seas, modeling of hydraulic was required to be carried out in the UK that involves design

 

costs.(Sarooj.com, 2017)

 

 

? Legal Factor

 

Generally, Oil and gas industry is very dangerous environment due to work area accidents

 

causing critical injuries. Hence, the Omani governments setup various regulations to provide

 

(health and safety environment) HSE training to all sarooj employees especially those who

 

working in Oil and Gas industry. They also, take an additional strong and rigorous training

 

including driving in defensive way to conform the standard demand of oil and gas

 

sector.(Sarooj.com, 2017)

 

 

Summary

 

 

Pestle analysis is strategic method of planning used to reduce threats. By testing the Political,

 

Economic, Social, Technological, Environmental and Legal factors. This method helps to look at

 

different various and influential factors that could affect the success of the company. It

 

encourages the strategic thinking development of a very deep understanding of the planning of

 

strategic. It has been observed that many tourist andexpatriate are going into Oman. Therefore,

 

Oman government is focus on developing the tourism as an alternative to oil industry affected by

 

lower oil price globally. Sarooj Construction Company is increasing its efforts on construction

 

on tourist hotels, accommodation flats and resorts for the expatriate. In spite of the competition,

 

SSC did not slow down .it is growth because of their focus on tourism. Also, SSC is upholding

 

sustainability in all of each projects making them environment friendly.

 

 

 

 

 

 

 

 

 

 

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3. PORTER'S five forces Analysis

 

It is a business analysis model that helps to explain why different organizations are able to

 

sustain different levels of profitability. The model is widely used to analyze the industry

 

structure of a company as well as its corporate strategy. Porter identified five undeniable forces

 

that play a part in shaping every market and industry in the world. The forces are frequently used

 

to measure competition intensity, attractiveness and profitability of an industry or market. These

 

five forces are: Competitive Rivalry, threat of new entrants, Power of suppliers, Power of buyer,

 

Power of substitute.

 

 

1. Threat of New Entrants

 

Threat of New Entrants analysis tells about the competitors who is your competition? How are

 

their actions in the marketplace going to affect your current works and future? There are similar

 

companies in business line and location to Sarooj Construction Company. While some

 

companies compete with neighboring businesses for customers, other companies may compete to

 

attract skilled employees. For SCC the competitors are Galfar Engineering Company. Both

 

companies have the long contract with the government for construction the different projects in

 

different location in Oman. Option 1: if new entrant to open new construction company will face

 

difficulty and competition will be very high. Option 2: threat of entrants is relatively low in

 

airports and port development. Option 3: threat of new entrants is very high across construction

 

of roads and infrastructure.

 

 

2. Bargaining power of Suppliers

 

 

Supplier can affect the construction company through their ability to raise the price of material or

 

reduce the quality of services. Therefore, SCC has to choses carefully the excellent supplier for

 

material. When suppliers have power, they can apply pressure on a company by charging higher

 

prices, adjusting the quality of the product or controlling availability and delivery timelines.

 

Within the five forces framework, there is an understanding that when suppliers have this

 

bargaining power, they can affect the competitive environment and directly influence

 

profitability for the company. The power of suppliers is high keeping in view the shortage of

 

labor and constantly rising price of the inputs.

 

 

 

 

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3. Bargaining power of Buyer

 

When a strong group of buyers is present in the market, it can significantly impact a company's

 

services decisions. The strongest power that buyers can exert is to lower prices, which in turn

 

impacts the profit potential. SCC have to demand higher quality of services, and increase

 

competitiveness by forcing different companies into price reduction. All of these factors end up

 

decreasing the attractiveness of the industry by lowering its profitability. On the other hand the

 

power of buyers is low in construction industry owing to the huge demand supply gap in the

 

present economic scenario. When dealing with residential property, the customer has the option

 

to also renovate or buy an already done house so they have a fair amount of force.

 

 

 

 

4. Threats of Substitutes

 

 

SCC has several situations in which the threat of substitutes is stronger for example:

 

 

• Product Price:

 

 

SCC substitutes are priced more reasonably, so it will

 

 

be more risky of consumers

 

switching products. In addition, this can act as a barrier to how much a company can raise the

 

prices for its own product.

 

• Product Quality:

 

SCC use

 

the quality of substitute products is higher than that of any product, so

 

the consumers will want to make use of this difference and switch over.

 

• Product Performance:

 

SCC use substitute products functions at the same level or at a

 

better level

 

than a product than there is a chance that consumers will want to switch over. For example,

 

Using new technology in construction for example prefabricated concrete structure (wall,

 

column, slabs, and beams).

 

 

 

 

5. Competitive Rivalry

 

The two competing local companies SCC and Galfar are construction in difference locations in

 

Oman with regulation for the government and both the companies participate in all new tenders

 

that are issued from the government or private sector. Both companies are well known and

 

produce excellent quality of product and services and they cover approximately all Muscat by

 

their projects but SCC beat on Galfar in Health & Safety.

 

 

 

 

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We have chosen Sarooj Construction Company Ltd and have identified its strategic marketing

 

strategies. The Construction industry plays a major role in transforming the wants and needs of

 

people into reality; they are realized through construction projects, which includes infrastructure

 

such as roads, schools, houses, hospitals, factories and dams. At present, the Construction

 

industry in Oman is booming; many construction projects are being developed. Sarooj

 

Construction is considered as one of the leading construction company in Oman.

 

 

Summary

 

This strategy is useful, because, when you understand the forces in our environment or industry

 

that can affect our profitability, then we will be able to adjust our strategy accordingly. For

 

instance, we could take fair advantage of a strong position or improve a weak one, and avoid

 

taking wrong steps in future.

 

 

 

 

 

 

 

 

 

Current Strategy of SSC

 

The company vision is top company on Construction Business in gulf region. The company

 

reflected its basic values of quality, health and safety, integrity and development of human.

 

Sarooj's culture is honesty dealing, thus is promise to be close attach its contractual obligations

 

to all parties of project activities and overall society. Quality is essential value of both SCC's

culture and SCC. The company offers the new version on engineering software to enhance

 

employees' development for professional work. In SCC is care on health and safety of all

 

members on company, as well as, care on environment. The company is good on develop the

 

skills of employees and care to improve Omani skills.

 

"SCC's strategy is to pinpoint niches of proficiency and ally with international companions who

 

can bring in new technology," said Karam. "We aim areas with requests of high quality and

 

safety where you are rival with equals. It is those areas which interest us rather than sectors

 

where profits are less," he said. SCC is actively involved in the building of national

 

infrastructure, primarily in the marine sector. It is now involved in major projects such as

 

harbours for the fast ship company and the extension of Salalah port.".We are possibly the only

 

firm that owns and controls a marine fleet in Oman comprising scow, tug boats and

 

cranes(excavators) and also operate our own diggings," said Karam.. (Sarooj.com, 2018)

 

 

Alternative Strategy:

 

 

 

 

 

? Strategic statement (1) : Long-term strategy of focused expansion and steady

 

 

 

The goals of Long term require planning and time and it is something that SSC want to do in the

 

future. Because of oil and gas industry is going down, Sarooj Construction Company should

 

concentrates to another industry to be not affected of oil price and financial revenue of company.

 

As everyone know, plan of development in Oman are ambitious. It includes very good

 

 

infrastructure, logistics and facilities. There are many areas need to growth such as: construction,

 

tourism and logistics .SSC should invest in these areas and develop them more so that the

 

company's revenues remain unaffected by oil prices. Stable prices are very important to

 

investments to the social and economic development. In addition, it is essential to sustained

 

growth of global economic. (Jureviciene, Jureviciene and profile, 2017)

 

 

 

 

 

 

Advantages of using long term strategy:

 

 

 

1. Strategy of long term covers more holistic approach to create content and publishing. Instead

 

of invest efforts of scattered.

 

 

 

2. A long-term plan provide the real direction and allows us more energy to get very strong and

 

clear content and it ensures creating a constant flow of content.

 

 

 

3. Long term plan is consider as positive impact that is lasts over time and more noticeable.

 

 

 

4. It gives us a big clear picture to observe beyond today's work and it keep the company in high

 

motivation. (Nikitina et al., 2017)

 

 

 

? Strategic statement (2): Research and Development Strategy

 

"Developing a new technology and applying engineering knowledge to match market reality

 

an opportunities." The main role of get useful of this strategy is: to be able to take advantage

 

of opportunities and compete, able to add a new business and able to understand the

 

technology used. (Slideshare.net, 2018)

 

First of all, as discuss above the situation of firm, the vision and mission will modify some

 

part of company. The vision: to become a leading construction company in Gulf region.

 

Aim to be the first choice for clients. In order to maximize the financial profit and getting

 

best tenders, SCC focused on civil infrastructure only and now they have extended their

 

activities: marine work, Airports, Highways & Roads, Electrical & Mechanical, Building

 

Work and Oil & Gas field. The missions are: to provide property development on

 

management service, successful partnership relationship belong to client, as well as, attract

 

them in respect of company portfolio. To perform high quality services, SCC to provide an

 

efficient staff to clients by development and training. To introduce best surveying whatever

 

 

 

17

 

the challenges on site to meet project objectives. The core value, identified and it must be

 

adopted are: professionalism, responsibility, trust and safety.

 

 

 

 

 

 

Advantages of using R & D strategy:

 

The advantages of this strategy are function improvement and make action to going well.

 

First of all, it primarily is concerned with the activities of the functional areas for example:

 

finance, operation, personnel skill, and market. This will create the required competitive

 

business level strategy and complement each other. In other hand, the SCC is going well so

 

the modifications from R & D strategy will make change productively. The advantages of

 

this strategy are:

 

1. Increase the productively from both staffs and services of company to be better

 

demanding on clients trends and expectations.

 

2. Get knowledge about Competition Company, it may make useful in aspect of market

 

share.

 

4. Increase profit.

 

5. Leads to improve, exiting services or the procedures and discover new services or

 

procedures.

 

 

 

? Strategic statement (3): Improve the Industry's Image and relationships with public

 

and private clients.

 

 

The goals of SCC is to:

 

 

1. Communication: SCC should Seek and maintain an open dialogue with public and private

 

sectors to improve application of delivery methods and to promote safety always and to seek

 

fairness in the risk-reward equation. Also communicate to owners the importance of the quality

 

in design and construction, its value and worth.

 

2. Partnering: Keep on going on champion partnering on all projects under SCC.

 

3. Alternate Dispute determination: Works to improve ADR methods and foster an environment

 

in which designers, constructors and owners utilize them on all projects under SCC, ideally

 

composed it into contracts.

 

4. Contract Delivery Methods: Educate and guide clients in developing fair, efficient and

 

powerful choice processes for alternative and qualification-based delivery systems.

 

 

 

 

18

 

5. Agreement Risk Allocation: Be a resource for clients to guide their contracting methods for

 

suitable sharing of project risks among designer, constructor and clients or owner.

 

.

 

The Strategies SCC should follow to achieve the objective:

 

1. Form a Task Group for SCC with the goals for developing and carrying out strategies to

 

improve designers and constructors and relationships with both public and private clients.

 

2. Create formal relationships with owner organizations, for example The Construction Users

 

Round Table.

 

3. Invite owners to participate in panels as part of Construction Industry Round Table (CIRT)

 

meeting agendas.

 

4. Offer Construction Industry Round Table presentations in owner group meetings.

 

6. Create position papers on news releases for distribution with owner groups or publications

 

read by owners.

 

7. Organize specific meetings with selected owners (clients).

 

8. Help the organizations and construction-related professional organizations in their programs to

 

improve image and relationships with public and private owners.

 

9. Add a means of enabling customers to give feedback on their experience out your company.

 

Send out an email survey or provide a form on your website. The results will highlight any

 

changes required to improve service delivery and customer experience.

 

 

 

 

 

 

Advantages of Improve the Industry's Image and relationships with public and private

 

sectors.

 

 

 

1. SCC will gain more projects from both sectors as all of them will know the

 

company well.

 

2. It will build up trust among the clients as you confirm that SCC is experts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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3. Improve your business communications and save time. It can also make the

 

business more efficient.

 

 

 

Figure (5): Different Alternative Strategies for SSC

 

 

4. Generation of Option

 

 

Strategic Choices Usually is about the area where scarce resources such as: money, people and

 

time are to commit and these all from HQ level corporation to units of business. Normally, the

 

choices of good strategy is not the total of challenges but executing is complete the challenges

 

when cooperates with the good strategy choices.

 

 

 

Ansoff Matrix (Growth Opportunities):

 

The Ansoff product or market growth matrix give a simple way of generating four alternative

 

directions for strategic development. It is a typical instrument utilized inside advertising was

 

produced by Igor Ansoff in 1957.

 

 

 

Existing Product

 

 

 

New Product

 

Market Penetration

 

Product Development

 

 

 

-Converting of noncustomer to

customer.

-Opening new branches.

-Extension of working hours.

-Price reduction.

-Make more advertisement.

 

 

-Use different quality level of services.

-Use new technology for example use

prefabricated concrete.

- Open laboratory for testing the strength

of prefabricated concrete.

-Open new department specialized in

preparing tender document.

 

 

 

 

 

20

 

Market Development

 

Diversification

 

 

 

-New channel of services.

 

 

 

Open new branches in new area

 

 

 

For

 

example open new branch in Salalah and

 

Musandam.

 

Deal with new suppliers.

 

 

 

 

 

 

 

Table (3): Ansoff Matrix

 

 

 

5. Evaluation of Strategy

 

 

 

It is process that use to determain if the chosen strategy meet the goals andobjective after its

 

implemantation.

 

 

 

? Suitability of D and R strategy

 

 

 

This strategy helps the SSC to growth and extnd in new sectors in the market not only in civil

 

infrastructure but in the onether firms like Highways & Roads, Oil & Gas field, marine work,

 

Mechanical, Airports and Building Work. This all cosider as exploiting the oppourtunities in the

 

enviroments. In fact, this strategy solve and decrease the dependenceon on a supplier for Sarooj

 

company becouse by this strategy it increase the productively of services and staff of the

 

company to be good demanding on expectations and trends of clients.

 

 

 

? Acceptability

 

 

 

It is very important about risk assesment and it is strongly related to expectations of

 

stakeholders. In this chosen strategy,the financial risk like the liquidity will change by

 

acquire more knowledge about company competition and the profit will increase by get a

 

profetional traninning for the staff and this make helpful in aspect of marketing share. This

 

chosen strategy will effect the capital structure of the company. It will make it raise up

 

because we have qualified employees who perform the work in a specific time and of high

 

quality to achieve the satisfaction of all stakeholders.

 

 

 

 

21

 

? Feasibilitiy

 

 

 

It focuses in veriuos resources and logistic and reacthion. For the chosen strategy it request to

 

have enough emloyees to reach the objective and goals of company and this employees need to

 

have personal traninning and have enough skill to reach and achieve market share success.

 

Availability of new thecnlogy and tecniques with relation with supplier make strong and famous

 

brand that every company know about it. To increase the percentage of production, SSC need a

 

new production system and new modren machines which are an exellent in the quality and lower

 

in the cost to acclerate the work and achive the company objectives.

 

 

 

6. Selection of Strategy

 

After analyze the position of company (SCC) from SWOT analysis, PESTLE analysis, and

 

PORTER'S five forces analysis , the group of different strategies looked to select one strategy to

 

use. Research and Development strategy, is the suitable strategy. During negotiation between

 

strategies, there are adjustments and changes on the strategies.

 

 

The perfect strategy of firm in which allow it to assess and fit between Companies of internal

 

and external environment need. The basic criteria below should be meeting by alternative

 

strategy (saempe, 2018):

 

 

-

 

 

Response to outer environment.

 

-

 

Involve possible competitive advantages.

 

-

 

Consist with other organization's strategies.

 

-

 

Sufficient flexibility for organization and business.

 

-

 

Organizationally enforceable.

 

 

 

 

 

? Test of best strategy

 

 

To evaluate the feature of one strategy than other and mention the standard of best strategy, there

 

are there tests used:

 

 

1. Good fit Test:

 

 

 

 

 

 

 

The strategy which matches the situation of company on aspect on both internal and external

 

features, as well, its own abilities and targets. Based on company situation, the capital of

 

company is good and it is possible to pay for strategy as well as for future growth and gaining

 

more profit. In addition, our firm has a lot of projects till now. However, the competitive

 

company based on their situation has little project because the economic factors close some

 

diversion and retire a lot of their staff. It is chance to achieve its targets. The internal R & D will

 

improve on the internal business, and laboratory. The external depends on contract, collaborative

 

with group sister of Sarooj Company (Altaher Group).

 

 

2. The advantage of competitive Test:

 

 

It leads to maintainable the advantage of competitive. The big edge on term of competitive

 

advantage that a strategy helps build, the more influential and active it is. Developing the

 

operation of contract and submitting tenders will be enhanced and gaining chance to get more

 

projects to work.

 

 

3. The performance Test:

 

 

A good strategy increase performance of firm. Two kinds of performance developments are the

 

most effective: gains in cost-effectiveness and

 

 

gains in the company's future growth business power and feasible position. As R & D strategy

 

concern on develop the technology which used for business. The improvement on procedures

 

and services will develop the performance and productive.

 

 

In conclusion, R & D strategy is best strategy implemented to the Sarooj construction company.

 

 

It is best on aspect to the Test.

 

 

 

7. Implementation of chosen strategy

 

 

Implementation and control of business are the two last stages in the strategic management

 

procedure. Strategy implementation is how strategy is place into action. No issue how

 

imaginative of strategy formulation , the company will not advantage if it is wrongly

 

implemented. Additionally, firms that formulate and implement strategies better than

 

competitors can assume a competitive advantages. (24xls.com, 2018).

 

 

 

 

 

? Resources & competence

 

 

The resources which the company used that required for the project activities. The

 

equipment, machinery, labotetriese and workforces. All these owned by company which is

 

the basic feature of company. Sarooj run their own testing in their Laboratory situated in

 

Athaiba. They carry out regular common tests for concrete, gradation and compaction.

 

However, for certain complex tests they outsource to third party laboratories such as

 

Wimpey, Lonestar, Fugro or Geosol . Sarooj shall provide all survey equipment required for

 

projects use. In addition, the company have around 360 pieces of equipment. It employee

 

around 300 Omani to achieve omanisation as per obligation from Manpower Ministry. In

 

addition, the total member in company around 1500 from different countries. SCC is special

 

because it has owns and operates a marine fleet here in Oman . It is including many types

 

of, landing crafts, .tug boats, and barges. About 15% the company increase the plant and

 

many machinery equipment in 2010. (Sarooj.com, 2018)

 

 

 

Human Resources:

 

 

 

There are 1000 employs people and 500 of people are working on the sites and with the sub-

 

contractors. Sarooj construction company employs has professional manpower from different

 

countries. The picture below indicates that the Indian employs have got the biggest

 

percentage of staff in SSC and Pakistan staff will be the second. (Sarooj.com, 2018)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure (6): percentages of SSC employees

 

 

24

 

Organization Structure chart for SCC:

 

The company has divisional structure . This type of structure, each part of an organization is

 

grouped depending on its purpose. It is consist of individual unit of business . Also, it include its

 

own function and have direct responsibility and performance. It work very well, it is good for

 

controlling of work process and less in cost. For R & D strategy, the portion will be add to the

 

function structure. In addition, the head of development and research will have two members.

? Action plan for strategy :

 

 

 

Action plan assist to make changes turn the vision into reality, and work to achieve the benefits

 

within company. It recognize the manner will meet the objectives through the detail of action

 

plan. Also, It should be sure that the action plan to in right way. It consist a large steps of action

 

or changes may bring to the organization.

 

 

 

First of all, Implementation plan is a group and listing of activities, difficulties expected, cost

 

that important to reach and achieve the goals and objectives of plans strategic. The plan of

 

implementation covers many areas to reach the goals such as:

 

 

? Human resources action

 

 

In this area the company should help employees to carefully understand the strategy. Not only

 

that but they must comprehend the major reason for this strategy. If the staff of the company

 

not well understand where the strategy is headed, then they will unable of realizing their

 

potential in implementation of strategy. All this can be achieved by bringing people with

 

experience in giving training courses to qualify employees to achieve the strategy to the fullest.

 

Also, a new department should be included in the company to train and develop staff skills.

 

Every employee must have a sense of responsibility and leadership to implement and achieve the

 

company's desired objectives through this strategy. For excellent implement the develop and

 

research strategy, we should focus on tender department with corporate with quality assurance

 

section for good planning to get new tender and develop the procedure for the tender. So, for that

 

At least the company is in need of three employees specialized in the implementation of this

 

strategy successfully.

 

 

? Processes of recruitment for the company

 

 

The procedure that company run it to hire new staffs for research and development is going

 

mostly from outside of company. The process of hiring best candidate either from within or

 

outside of company or organization for request job. It includes many steps such as: identifying

 

job require, attracting job seekers, sorting and selecting, hiring and finally, merging a new staff

 

to the organization's staff. Sarooj company when wants to recruit a new staff in company, it may uses

 

any kind of recruitment process to fill the vacancy. There are two kinds: internal recruitment and

 

external recruitment. First of all, external recruitment is the better choice for hiring. The process

 

 

26

 

isfilling the vacancy from outside the business of company. It is good in term of getting a staff

 

with better skills, ideas, and experiences but may cause displeasure from the teamwork.

 

(Fish4jobs Recruiter Zone, 2017)

 

 

 

 

 

? Finance

 

 

The finance is going well still day. The company work around 57 projects. The Current order

 

book around Rial 64 million. To implement this chosen strategy, the Sarooj company needs to

 

provide a good amount of money for development the staff and qualify them with the necessary

 

skills for achieve the goals. It should pay large amounts for the courses and programs to help

 

them qualify. It also requires money to provide new, sophisticated and highly efficient programs

 

and technologies to deliver the service successfully, which in turn seeks to satisfy the

 

stakeholders. Besides, the company also needs to use machines that serve the advanced

 

construction aspect of the completion of work.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion:

 

 

 

At the end, Strategic of management in construction is very essential to ensure the success of the

 

company and to keep secure from the suddenly surprises. It is a systematic that concerned with

 

determine and deciding on the strategy and planning of that to put it into effect by different

 

methods of analysis, alternative strategies, choosing the best strategy of alternative and finally its

 

implementation. Sarooj Construction Company expects that in the future it will ratify some

 

surprises that will affect its financial and economic aspects. So it has developed some

 

alternatives and plans to avoid problems and maintain a stable and sustainable. This is due to the

 

management strategies that have played a major role in the success of the company and its

 

development for the better.

 

 

 

 

 

Recommendation:

 

 

Based on different analysis strategies such as: Pestel analysis, SWOT analysis, five forces

 

analysis, the basic common about company situation are stable and doing well in the face of

 

economic is going down. However, the modification belong company will help the company to

 

grow well and getting more contract works.

 

We recommended to:

 

 

 

Put plan which should be strong and clear to whole authority's member of company.

 

 

 

Working in different area to retention based on customer requirement to achieve the

 

vision of leading the construction company on Gulf area.

 

 

 

Having qualified engineering technically in estimation and execution.

 

 

 

Improving staff in term of planning and communication skills

 

 

 

Understand the forces facing the company which can affect the profitability of the

 

company.

 

 

 

Focus on marine work as it is the prime construction company specialized on marine .

 

In addition, it has a lot of equipment and resources. As well as, Oman looking on develop the

 

airports and ports.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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