strategic measures for company survival

An Analysis Of The Strategic Measures Required For Company Survival With Emphasis On The Current Economic Downturn

Abstract

The author has chosen strategic management in the construction industry as the topic for this thesis. The current economic downturn is a global issue, not just in Ireland. The recession is seen to affect social life, political life and most importantly the economic life. The construction sector has severely suffered the greatest. A need for strategic management within construction companies is becoming a growing concern, since the recession began in Ireland in the third quarter of 2007; at least three construction companies have been put out of business every week. This figure is staggering. A need for change is inevitable. Managing directors have to take action to survive through this recession. It was expected by the author, that the purpose of this dissertation was to present a more suitable strategy for small to medium sized construction companies in order to survive this current economic downturn.

It has become an accepted reality but it must also be noted that this problem is not confined to Ireland; it is indeed a global one. The current economic downturn has resulted in unemployment numbers in construction reaching volumes that have not been seen since the 1980's. Recent figures show that Ireland has also moved up the ladder from being 2nd lowest in the unemployment ladder to the 2nd highest in almost two years. Joblessness has risen faster in Ireland than anywhere else, reflecting the sudden collapse of the building boom.

The research found that there were reoccurring problems with managers and implementing strategy. The reason for this was because they own small to medium sized construction companies. Strategies such as international management could not be implemented according to the managers. All managers agreed that some aspect of diversification was inevitable. All managers entailed that diversifying into retrofitting; refurbishment or even waste management would be a very suitable strategy for their company.

Primary research was conducted through a series of in-depth interviews with five different managing directors of various construction companies. The managers were asked a number of questions regarding implementing strategies within their companies and the effects of the current recession in Ireland. All managers stated that this recession was crippling their businesses. Managers were asked on their views on the recession what sort of strategy would the implement to ensure their survival during the recession. The research concluded that there was a need for some aspect of diversification for a small to medium sized construction company.

An analysis of the strategic measures required for company survival with emphasis on the current economic downturn

Introduction

The need for change and continuous improvement in the construction industry has resulted in various initiatives, which are aimed at improving the construction process, both on site and at management level. The current economic downturn has forced most construction companies out of business. The remaining companies in Ireland are forced to adapt to this harsh climate and stabilize themselves structurally as a successful ...