Leadership of Fletcher Construction-Free-Samples-Myassignment

Question: Critically examining the role of entrepreneurial thinking in value creating strategies for the Fletcher Company. Answer: Introduction: In the modern business world, each business organisation faces huge competition. Hence, to conduct a complete business process those organisations need proper leadership. Leadership helps a firm to operate smoothly with its all factors of productions. Without this leadership, all other business resources and factors will be ineffective (Mokhber, Khairuzzaman Vakilbashi, 2018). The purpose of this report is to analyse this leadership model and its various components related to a leading company of New Zealand. Here, the chosen company is the Fletcher Construction Company Limited. It is a publicly listed company on the New Zealand and Australian stock exchanges. Therefore, this report will focus on the various topics related to this leadership model of this company. Moreover, this report will discuss about the business strategies, current and future problems related to business operations, opportunities, growth plan and strategic developments of this company, for future. It will also focus on the entrepreneurial thinking and creativity to innovate and develop the organisation further. To support those agreements, the report will provide various supportive arguments and evidences related to the business strategies of the Fletcher Construction Company (Fletcher Construction, 2018). To analyse the market condition of this company, the report will further conduct a SWOT (strength, weakness, opportunity and threat) analysis. After analysing those whole things, suitable recommendations will be provided for developing this company in future. At the end, the report will conclude the whole discussion to understand the complete scenario of the Fletcher Construction. Business introduction: The Fletcher Building Limited is a publicly listed company in both New Zealand and Australia. The Fletcher Construction Company Limited is a unit of that publicly limited company in New Zealand. The company has completed various important projects related to construction. The Auckland Sky Tower is one of the most important projects of this company. They have performed their entire business in three business units. These are building and interiors, infrastructure and South Pacific. The CEO of this company is Michele Kernahan. She was appointed as the Chief Executive in 2017. Before her, Graham Darlow was the CEO of this company (Fletcher Construction, 2018). The CEO and other members took some strategies related to people and resources of this company to establish their goals and objectives. Hence, before Kernahan, the chief person of this company was Graham Darlow. To create a valuable position of this company, he took some strategies. Firstly, the company takes care of environment a nd always try to make a better life for their customers and employees. Secondly, the company also under the leadership of Darlow, tried to hire employees of next generation to obtain full level of potential work. Lastly, they tried to enhance their business through expanding their customers. Hence, the company, leaded by Darlow and Kernahan, has taken various strategies that will be discussed in the rest part of this report. Strategies related workers: They maintain high safety standard for their workers. Their Health and Safety Policy represents their approach to provide a harmless environment. Hence, their policy includes some objectives. The leaders are capable, responsible and committed regarding the health and safety issues of every worker. Leaders encourage other employees to participate in Health and safety related initiatives at each level of business (Fletcher Construction, 2018). They provide various training programmes for providing Safe work practices to its workers. Hence, the company has earned a leading position in the field of health and safety. Strategies related to resources: To produce more outputs with best quality, a company needs to take various strategies related to resources (Baumgartner Rauter, 2017). The company is trying to utilise all resources to get higher amount of profit. The CEO and the Construction Manager of this company have taken decision regarding resources of production. The company is operating in New Zealand and other countries by applying their best strategies regarding resources. SWOT analysis of the Fletcher Construction: Each company has some strengths, weaknesses, opportunities and threats (SWOT). Hence, it is very important to analyse SWOT to understand the business condition of this company (Brooks, Heffner Henderson, 2014). By analysing this, the company can adopt its strategic position and capabilities in the present market condition. The parent company of the Fletcher Construction company Ltd. is the Fletcher building Ltd. it is also the New Zealand based company (Fletcher Building, 2018). Hence, the SWOT analysis of both parent company and its subsidiary company will be same. They will face same political, economical and social conditions. Strength: The company has strong dealer community. Moreover, it builds a good relation between their dealers and distributors. Dealers promote products of this company. They also invest for the sales team of the company. Fletcher Construction has done some projects efficiently. Hence, they have good reputation in market and that helps them to earn capital expenditure. This construction company has performed efficiently in new markets. As a result, they expand their business in different places except New Zealand (Fletcher Construction, 2018). They access their business in Fiji, Papua New Guinea and other some places. The Fletcher Construction Company Ltd. has records of their successful stories to develop new products and product innovations. They can fulfil the high level of satisfaction of their customers. The company provides dedicated relationship with their customers to satisfy their customers. They also main a good brand equity in the market with their potential customers. The Fletcher Construction Limited also has built strong distribution networks. Those reliable networks help the company to reach to its maximum potential market. The company has strong brand portfolio. Its parent company, the Fletcher Building Limited has made a strong brand portfolio over the years. Weakness: The company needs more investment for introducing new technologies. As the company is planning to expand their business in different geographical region, the company needs more technologies and money to implement those plans. The company has some gaps in the product age that are sold by the company. This gap can give opportunities of other competitors to enter into the market. The company is providing construction materials with poor quality. This reduces the reputation of this company in the market. This will further reduce the demand for this company (Fletcher Construction, 2018). Hence, the company will loss various opportunities in future. Financial planning of this company is not done efficiently and properly. The percentage of net contribution and profitability ratio of this company is lower compare to the average of the industry. Opportunities: The construction industry in New Zealand will expand by 70% in the next five years. The company already have projects worth $3 billion for upcoming years (Fletcher Construction, 2018). The company provides training, career progression and development programmes to improve quality of their workers. The new taxation policy can affect the company significantly. This will further help Fletcher to earn more profits in future. On the other side, New Zealand is facing low level of inflation within the market. This will further help the company to establish a stable business environment (Alley, 2018). Moreover, they can get credit from banks with low level of interest. The development of construction market in New Zealand can help this company to expand its business further (Carey et al., 2015). Moreover, this will help the company to establish a strong business. This further reduces the advantages of Fletchers competitors. The government of New Zealand has opened new markets will help Fletcher to adopt new technologies in future (Wilkinson, Lim Jang, 2017). Moreover, the free trade agreement of this country can help the company to expand their business in new markets. New technologies provide opportunities to this construction company to practice various pricing strategies (Tatum, 2018). This will further give the company an opportunity to construct good relations with their loyal customers by providing great services. Moreover, it will give the opportunity of attract more customers through their value oriented propositions. Threats: After earthquake, each construction company faces huge competition. As the demand for workers and other factors of productions increase, the price of those factors has also increased (Marquis, Kim, Elwood Chang, 2017). The company can face financial loss if one of their projects fails. Mismanagement and bad financial decisions can affect the company to face huge loss Using of fake and low quality product can bring threats to Fletcher Constriction Company Ltd. Online channel can reduce the demand for products of the Fletcher (Fletcher Construction, 2018). The changing consumer buying behaviour of this company will further reduce the supply chain. New technologies developed by other construction companies can create serious threats for this company. The government of New Zealand can apply new environmental policies to protect environment. As a result, the company may loss some factors to use in future (Isaksson Linderoth, 2018). The demand of this company varies seasonally. Hence, this will further negatively affect the profitability conditions of the company in short-run and medium-run. This construction company can also face threats from the shortage of qualified labourers, project complexity and environmental sustainability (Chang-Richards, Wilkinson, Seville Brunsdon, 2017). Future growth plans and strategic development: Corporate Business Strategy: Fletcher can expand its business by utilising its opportunities in practical field. For doing so, the company can apply corporate level strategies and business level strategies. Under corporate business strategy, the company can change its scope according to a changing environment of business by configuring its resources. Moreover, they can enhance the level of expectations of their stakeholders by enhancing their level of competitions (Furrer, 2016). In this context, the company can adopt dynamic nature. This will further help it to expand their business under the construction industry by adopting more projects. The company should also follow long-term nature by adopting some long-term plans. By provides various training, career progression and development programmes they can improve working skills of their workers. Fletcher should also adopt some business strategies that will further help them to fulfil their business goals. Taking advantage of new taxation policy, developing of co nstruction market and new markets can further help this company to implement their business opportunities in practical field. Firstly, the company can grow further by enhancing revenue, sales and profits ((Sull, Turconi, Sull Yoder,2018). Secondly, Fletcher can use more resources to increase their product value. Lastly, the company can adopt diversification strategy to compete with other firms. Business level strategy: The company should chiefly focus on the customer satisfaction. By adopting business level strategy, Fletcher can do this. The firm should give value to its customers and earn competitive advantages by applying appropriate strategy. In this context, Fletcher should provide importance to its customers. On the other hand, to establish a competitive environment, Fletcher can apply various strategies related to business (Rothaermel, 2015). These are cost leadership and Porters five forces model. Those will help the company to utilise its opportunities under a competitive business environment. The leader of the Fletcher construction company ltd. takes various steps to develop the competitive advantages of this company in the market. For doing so, the company adopts various strategies related to creativity, innovation and technology (Fletcher Construction, 2018). Those strategies will further help the company to sustain in the market in future, as well. Each construction company enjoys a positive relationship between innovation and productivity. New technologies and innovative approaches help a construction company to improve its performance level at a same cost level or at much lower cost level. However, the scope of innovation is lower in construction industry compare to other industries. On the other side, many business leaders and strategy development managers cannot actually understand the relation between innovation and productivity. Innovation can be of various types. These are related to product, design, tool, function, technology and method of production. The compa ny can get various benefits by adopting a good and efficient innovation idea. The leader can save direct cost of production by utilising all resources completely (Nason Wiklund, 2018). This idea also saves the time of production and increase the quality of the construction project. On the other side, new method of innovation can also enhance the level of safety, environmental condition and communication with stakeholders under the construction procedures. Innovation and productivity: To understand the relation between productivity and innovation, it is very important to know about the concept of innovation and productivity, under a construction company. Productivity implies the relation between output produced and input used to produce this output (Matinaro Liu, 2017). On the other side, innovation means producing an output in different and better way by applying new processes or procedures. In a business organisation, the CEO or Chairman of the company takes decision regarding this innovation. They always try to adopt new technologies to so that the total cost level will remain at a low level. On the other side, innovation can be related to the business ideas. For each business organisation, new business strategy and marketing idea are very essential. This will give the organisation a dynamic business status (Ishikawa Suzuki, 2018). Otherwise, it can loss its position in the growing competitive environment. Those new business ideas and marketing strategies hel p the company to compete with its other competitive companies. This same thing is applicable for the Fletcher Construction Company Ltd. the company has made various construction projects, where they can utilise their innovative idea and can enhance their productivity. For example, the company has purchased a new model of crane from Germany. By applying this, the company has constructed tallest tower in New Zealand (Fletcher Construction, 2018). The company is also building under water tunnels to enhance infrastructure facility. Strategic development of Fletcher Construction: The Fletcher Construction Company has a wide range of business through New Zealand and the South Pacific. The infrastructure division of this company operates as a construction contractor in the mechanical, civil, infrastructure and industrial sectors. They undertake various projects with a high level of complexity and full range of scale. Hence, it is very important for Fletcher to apply new innovative ideas and business strategies for maintaining a strong position in the construction market. The company provides infrastructure related to transport and utilities. This will provide the country better connections and faster way to communicate. They try to utilise all environmental factors completely, without destroying these. Moreover, they construct commercial and public buildings to create more liveable and vibrant cities. They construct building for the central and local governments and for the common public, as well. The company also expands its business in the south pacific regio n. They have remained as an integral part of the modernisation and development of this region, since 1946 (Fletcher Construction, 2018). They permanently operate their business in Fiji, Papua New Guinea, Tonga and other places. This company offers its best construction methods in international markets and support their local understanding and broad connections. The Fletcher has constructed various significant projects that include building and infrastructure, bridges, airports and institutional buildings. Moreover, they supply materials for educational and community institutions. Hence, by providing all these services, the company is enhancing their demand in the domestic and international market. Moreover, by undertaking those steps, the company can compete with its competitors under a strong competitive environment. The company can undertake those projects under a perfect leadership (Hon, 2015). In future, the Fletcher can also take projects that are more complex if it has perfect leadership strategy and a perfect leader. The role of management: The role of management is very important for each business organisations to operate their business efficiently. Management helps to generate an organisational system for company. It also creates integral operations to perform efficiently. Hence, a reputed company like the Fletcher Construction must need efficient members within their management board. Those members actually act as the chief leader of a business organisation (Goetsch Davis, 2014). Management performs six basic functions to develop a business organisation. Those are proper planning, organising and efficiently staffing. Moreover, the board of management will also provide proper leading, controlling and motivating entire operations. This management team operates under different significant levels of the construction process. Dimensions of organisational culture profile: To identify, manage and measure the working culture of a company, various dimensions of Organisational Culture Profile (OCP) are needed to describe. This will help the company to manage a relationship with their workers. Hence, the firm should be detail-oriented, innovative, outcome-oriented, aggressive, people-oriented, team-oriented and stable (Supriadi Pheng, 2018). Moreover, mangers can attract skilled workers and influence their enthusiasm positively by applying this program. The Fletcher Construction has made a great team with efficient engineers, mangers and other workers to provide efficient workers (Fletcher Construction, 2018). They work with their customers to construct better building communities and economies so that people can live a better life. Management hierarchy: Under the management team, the members operate their business according to a management hierarchy. Top-level managers are the chief leader of an organisation. This team has board of directors, president, vice-president and CEO. Their chief function is to take responsibility for implementing planning and directing the overall organisations (Frederick, 2017). In the middle level management system general managers, branch managers and department mangers operate their business. They operate their managerial functions for their individual departments. Moreover, they perform more functions compare to top-level managers. At the end of the hierarchy, the first-level managers are included. They are supervisors, section leads and other similar positions. Their chief function is to control and direct other employees, who perform under them. Figure 1: Management hierarchy Source: (Frederick, 2017) Operations of management: In this context, some factors should be discussed to understand the operations of management. Management should recognise some strategies that enhance the creativity of workers. Moreover, proper strategy is needed to motivate productivity and employees. The chief factor of production of a company is its workers. Hence, the leader can get higher level of productivity by encouraging its employees. An efficient leader will apply various strategies within the working environment that will further provide labour motivation and encourage them to produce more. Hence, the leader art first should understand those factors, which will make a positive work environment and how this will affect the performance of those workers (Grant, Wong Trautrims, 2017). For doing so, the leader needs to establish a communication with its staffs. This communication can be enhanced by listening their ideas, thinking and understanding about the business. Moreover, the leader should sustain the groups commitment by applying his personal supportive and committed techniques. Hence, each management level is important for operating an entire business under perfectly competitive environment. At present, the Chief Executive of the Fletcher Construction Company Ltd. is Michele Kernahan. She has a strong understanding about the business. This is because she performed various important roles with the parent company Fletcher Building in both New Zealand and Australia. Hence, she has efficient experience of management. For this reason, the parent company has hired her in this position after the huge loss of Fletcher Construction in 2017 (Fletcher Construction, 2018). According to the company, she consistently has developed a high performance level in the company. Moreover, she has established leading culture within the operation units in her previous working record. Recommendation: The company is expanding their business with an efficient way. However, the construction industry is also changing its structure. Hence, the company should apply some more business strategies to sustain in the competitive environment. At present, the company is facing various weaknesses and threats in market. Hence, to sustain 10 years more, the company should overcome this all (Ng, Wong, Chiang Lam, 2017). Firstly, it is recommended that Fletcher adopt new technologies and strategies. For doing so, huge capital investment is required. The chief factor that can help this company to sustain in future is adoption of new technologies and innovations. Secondly, to compete with other firms, the company must reduce its production gap by utilising its potential resources. Thirdly, it is also very important for this company to provide good materials of productions. Otherwise, it will earn bad reputations and customers will lose their faith from this construction company. Fourthly, the compa ny should prepare good financial statements to maintain its average profitability level. For this, the company need to hire efficient employee with good financial background. Fifthly, Fletcher can construct more projects with lower costs and with lower times. This will help Fletcher to enhance their percentage of net contribution and profitability ratio (Tatum, 2018). By adopting those recommendations, Fletcher can overcome their weaknesses. However, the company also faces some threats, which will negatively influence their business. Hence, recommendations related to those threats are also required. Firstly, it will be helpful for this company to apply new technologies or production procedure. This will help them to produce more outputs with low level of resources. Secondly, Fletcher should efficiently construct their projects. This will further reduce the risk of financial loss related to a project. Thirdly, it is recommended that the company should focus on its management system a nd financial decisions. Fourthly, Fletcher Construction should use production material with high quality. Fifthly, at present, consumers prefer to buy products through online. Moreover, various online platforms help an organisation develop their business. Hence, Fletcher should also follow this modern business strategy. Sixthly, the company should gather information regarding their competitive companies and their business strategies. This will help them to gather knowledge about technologies that competitive firms are using. Seventhly, the company needs to use those products and materials that do not affect environment negatively. Moreover, Fletcher can also expand their business in different business dimensions to maintain their profitability level. Lastly, the company can sustain in future if it will possess good and efficient leadership. An efficient leader can take dynamic decisions (Durdyev, Zavadskas, Thurnell, Banaitis Ihtiyar, 2018). Hence, to compete under changing busines s environment, this decision will help the company to take proper step. On the other side, the company should hire efficient workers to construct buildings in an efficient way. The company should also focus on the working environment of those workers and will provide them various facilities regarding health issues. In this context, the company should also provide financial and educational support to family members of their workers (Sibande Agumba, 2018). This strategy will further help managers of Fletcher to develop a good relation with their workers. The company should also focus on the growing environmental issues. The government of New Zealand and of other host countries can impose various restrictions related to environment. Hence, the leader of this company should use appropriate and harmless materials for their construction process. The company will also construct those projects, which will not hamper the environmental conditions of a country. In this context, strategies regarding creative loyalty program is very important. This loyalty program provides various opportunities to a company regarding their business. This helps to enhance the number of their customers and increase lifetime value of those customers. This can be happened if the company can maintain its brand value within a competitive environment (Harmeling, Moffett, Arnold Carlson, 2017). Therefore, the leader of Fletcher should focus on some factors to create this loyalty programs. Those factors will be desire of customers to participate in this program, align branding according to its function. Hence, by applying those recommendations, the company can compete with its competitors for next ten years. However, the company has some opportunities and advantages that will help them to overcome its weaknesses and threats. By maintaining a good relation with their investor, the company can invest more capital within their business organisation. That will further help them to adopt new technologies. Moreover, the company can earn profits as they are completing various projects. Enhancing market condition of New Zealand can also help this company to compete with its competitors. Hence, it can be said that the company can protect itself from various upcoming threats and weakness by implementing their opportunities in practice. Conclusion: Leadership is an essential concept of each business organisation. Under modern business environment, each firm is performing their functions with hug competitions. Therefore, each company needs proper business strategy to develop its business and to sustain within this competitive business environment. The Fletcher Construction has also adopted the same business strategy. However, above all those strategies, the company needs proper leadership. The report can conclude that the company has perfect leadership. As a result, it is increasing it demand in the construction market. However, from SWOT analysis, the report also has pointed out some weaknesses and threats for this company. Hence, at the end, some recommendations are provided so that the company can overcome those negative factors and sustain for the next ten years. References: Alley, R. (2018).The domestic politics of international relations: cases from Australia, New Zealand and Oceania. Routledge. Baumgartner, R. J., Rauter, R. (2017). Strategic perspectives of corporate sustainability management to develop a sustainable organization.Journal of Cleaner Production,140, 81-92. Brooks, G., Heffner, A., Henderson, D. (2014). 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