A research aimed to study the corporate strategies to become the top choice engineering and construction partner for clients through the high performance of its latest cutting edge technologies, digitalized approach, assets in operation, economy, communication and human resources in attractive markets and sectors, while at all times maintaining a high standards in handling depressions, sustainable delivery, heath and safety.

1. 1
CORPORATE STRATEGY IN
CONSTRUCTION
AKHIL RAJAN

2. 2
Table of Contents
Table of Figures........................................................................................................................................................................3
Abstract....................................................................................................................................................................................4
Introduction.............................................................................................................................................................................5
Chapter 1
Technology, Digitalization and Sustainability Strategies in Corporate Construction..............................................................7
1.1 Sustainable Construction strategies : A cost in use savings method.............................................................................8
1.2 Importance of Technology in Construction .................................................................................................................10
Chapter 2
Depression Handling Strategies in Construction by Corporate.............................................................................................13
2.1. Return Of Lean and Six Sigma Times for the process improvement and sustainability in Construction ...................14
2.2 Green Construction Strategies in corporate construction ..........................................................................................15
2.2.1 Circular Economy : A zero waste program ...............................................................................................................16
Chapter 3
Corporate communications strategy in construction............................................................................................................19
Chapter 4
Strategic Ways to the future of Construction Industry .........................................................................................................20
REFERENCES...........................................................................................................................................................................24

3. 3
Table of Figures
Figure 1:Strategy & Tactics : "Bridging the gap" between means and ends...........................................................................5
Figure 2:Simple demo for the use of Strategy & Tactics to reach destination "X"..................................................................5
Figure 3:Basic Seven strategic fields of corporate strategy in construction to gain competitive advantage .........................6
Figure 4:Constructed-facility becomes the integration of people+place+processes+purpose (Authored 2017) ..................6
Figure 5:Digital-Disruption-in-the-corporate-world................................................................................................................7
Figure 6:Apple-Campus-2-$5billion-project. ...........................................................................................................................8
Figure 7:Triple Bottom Line-Evaluating business performance in a broader perspective sustainably...................................9
Figure 8:Quadruple Bottom Line-Adding culture and faith development to the TBL as purpose and meaning to the
business. ..................................................................................................................................................................................9
Figure 9:Major pricing strategies for construction businesses..............................................................................................10
Figure 10:Five digital trends which will shape construction and capital projects (McKinsey&Company)............................11
Figure 11:Construction Project Life Cycle..............................................................................................................................12
Figure 12:Common data environment process in BIM construction project life cycle.........................................................12
Figure 13:Restructuring strategy by Corporate in UK as per global CEO (edited 2017)........................................................13
Figure 14:Top global trends to transform wider stakeholder expectations in construction over next 5 years....................14
Figure 15:6sigma+Lean strategy output................................................................................................................................15
Figure 16:The life cycle analysis of a construction product...................................................................................................16
Figure 17-Circular Economy-an eco-efficient economy ........................................................................................................16
Figure 18:Linear, Reuse and circular economy themes.........................................................................................................17
Figure 19:Positive Effects of successful communication and other strategies in different perspective of organization .....18
Figure 20:UK government Strategy 2025 (NBS) ....................................................................................................................21
Figure 21:UK 2025, 3 Strategic priorities (NBS) ....................................................................................................................21
Figure 22:The key questions and answers for strategic decision-makers in corporate construction...................................22

4. 4
Abstract
This research aims to study the corporate strategies to become the top choice engineering and construction
partner for clients through the high performance of its latest cutting edge technologies, digitalized approach,
assets in operation, economy, communication and human resources in attractive markets and sectors, while at all
times maintaining a high standards in handling depressions, sustainable delivery, health and safety.

5. 5
Introduction
"Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat" - Sun Tzu
Bridging the Gap
(Resources) (Vision)
Means Ends
Strategy & Tactics
Deploy & Employ
Figure 1:Strategy & Tactics : "Bridging the gap" between means and ends
Figure 2:Simple demo for the use of Strategy & Tactics to reach destination "X"
All corporate strategy in construction aims to produce maximum financial output by sustainably utilizing the
minimum resources. Objectives, visions and missions of a corporate is fixed by the board of directors and the
top management develops a strategy which involves complex operational patterns, decision-making and activity
with tactical execution aimed to success. Construction is one major reason why the corporate giants are thriving,
All strategies in Fig-3 can lead to a good corporate strategy for construction and the facility constructed based
on all these strategies can contribute back to all the corporate strategies in their core business gaining the
corporate a competitive advantage in the market which can make the revenues grow and share and stakeholders
happy.

6. 6
Figure 3:Basic Seven strategic fields of corporate strategy in construction to gain competitive advantage
Figure 4:Constructed-facility becomes the integration of people+place+processes+purpose (Authored 2017)
The correct proportionate construction for the integration in fig-4 is essential for the victory of any strategy in
the corporate world which will directly impact the financial margins of the organization and i.e. the core reason
corporate develop their facility efficiently spending enough money, energy and time. This research is to
understand the corporate strategies in construction and how construction can affect the success of any strategy
and gain competitive advantage for corporate in any market.
Construction Competitive Advantage
People
[mental world]
Place
[physicalworld]
Process
[virtual world]
Purpose
[Spiritual or
Cultural]

7. 7
Chapter 1
Technology, Digitalization and Sustainability Strategies in Corporate
Construction
"Digital is the main reason just over half of the companies on the fortune 500 have disappeared since the year 2000"
- Pierre Nanterme , CEO of Accenture
Figure 5:Digital Disruption in the corporate world
Across North California the world famous technology companies are fully engaged in a construction contest.
Facebook is on the plan for new Willow campus/Mixed-use-village, after completing the construction of
430,000Sq.Ft. giant warehouse which is said to be the largest open-plan office building in the world. Google
has started with the replacement of Googolplex; a collection of movable glass buildings that can expand or
contract as business requires. Samsung and Uber are also constructing, but the most interesting builder is Apple
which is spending $5billion on a building like a giant spaceship. One of the biggest mistake of all successful
companies make is to become complacent, dump and happy. Only constant in construction is change, the reason
which corporate are spending billions is to adapt with change. The appropriate usage of technology and
digitalization in construction is utterly significant for success, Also sustainable construction solution is a key
strategy which are followed by intelligent corporate, however the research have shown this increases the initial
cost in the current scenario of construction, however it saves a lot on the operation cost as it is an energy
efficient method. Some companies starts in-house construction companies to make better margin, eventually
loosing focus in the core business due to construction activities, causing financial loses, outsourcing
construction is always a better strategy as there is lot of specialized people required to develop a cost-effective
sustainable facility.

8. 8
Figure 6:Apple-Campus-2-$5billion-project.
1.1 Sustainable Construction strategies : A cost in use savings method
The importance of sustainability and corporate responsibility in business has become a prior condition for
customers and investors. Sustainable Development is a process and a frame work aimed for social progress
redirecting our economies to enable all people to meet their basic needs to improve their quality of life, while
confirming that the natural systems/resources and bio-diversity upon which they depend are maintained and
enhanced for their and future generations benefit. Triple-bottom-line(TPL)-evaluation(fig-7) is in place of
traditional financial reports to clients. TPL brings major changes in the way a company operates in the areas of
design, construction and management of facilities. Demand of sustainability as a design and construction(D&C)
element is growing influencing real-estate suppliers to stay competitive and delivering sustainability without
depending on traditional profit method. Sustainable buildings delivers cost-in-use savings as the concept gains
acceptance as a benefit rather than a drawback in D&C of facilities. A Quadruple Bottom Line(QBL), a fourth
bottom line adding Purpose, often expressed as spirituality or culture which adds value based on the current
scenario of climate change, depletion of resources, management of water, waste, biodiversity, supply chain,
human rights, carbon and pollution.

9. 9
Figure 7:Triple Bottom Line-Evaluating business performance in a broader perspective sustainably.
Figure 8:Quadruple Bottom Line-Adding culture and faith development to the TBL as purpose and meaning to the business.
PEOPLE
PROFIT
PLANET
PURPOSE:
Spitrituality/Culture
Traditional Business :
Most of them depends
only on profit.

10. 10
Figure 9:Major pricing strategies for construction businesses
1.2 Importance of Technology in Construction
The engineering and construction(E&C) industry has been always slow in the adoption of new technologies,
some firms are still using paper-based processes which is very old-fashioned. Due to tight margins, E&C
companies are automating and streamlining the ways of carrying out projects in
design/engineering/construction phases. Adopting building-information-technology(BIM) and off-
shoring/consolidating design centers, automating much of the work and supplying critical information to
workers on the site itself are cutting costs. Information sharing by workers across project sites and sending it
back to the home office have reduced wasteful discrepancies, rework and boosted safety, these technologies let
companies understand the construction before project-initiation saving money, time and energy to solve
problems during construction. Detailed analyses of costs/scheduling can be done as well. Standardization and
modularization which are used in oil-gas construction and aerospace defense are becoming highly natural in
E&C ; 3Dprinting to produce components for prefabricated construction, drones and go-pros to inspect sites and
monitor progress, quality and safety are widely practiced. These techniques can speed up the design and
execution of projects lowering costs considerably but if they are not incorporated as the centerpiece of a larger

11. 11
strategic platform, the gains will disappear absorbed within the ongoing commoditization of the services
provided by E&C companies. Delaying the adoption of these technologies won't help but figuring out how to
gain competitive advantage in the market and differentiating themselves from the competition is the game
changer. The collaborative technologies for gathering information from subcontractors and suppliers
throughout the construction chain and hence developing a complete documentation using BIM of every aspect
of the E&C process for all projects,. The company can use this to provide its customers with a fuller and clear
picture of the progress of their projects gaining maximum advantage, demonstrating to clients its ability to
achieve better performance, communication, and open interactions at lower cost throughout the project, this will
outclass the E&C firm from its rivals for future efforts. This will act as a great advantage to win the volume
jobs because of their reputation for advanced capabilities to use their skills with new technologies to profit from
standardized projects and they will be lead-runners for more complex projects in difficult geographies.
Figure 10:Five digital trends which will shape construction and capital projects (McKinsey&Company)

12. 12
Figure 11:Construction Project Life Cycle
Figure 12:Common data environment process in BIM construction project life cycle
Brief
(Inception &
Feasibility)
Concept Defintion Design
Build &
Commision
Handover &
Closeout
Operation
Demolition
/Renovatio
n

13. 13
Chapter 2
Depression Handling Strategies in Construction by Corporate
E&C sector is facing a lot of depression in the world market, demand had significantly reduced as the sudden
fall in oil price during 2015 leading most companies to slowdown/postpone/cancel lots of projects all over the
world. E&C revenues is going down in 2017 due to the continuing global -economic instability directly
affecting the recovery from 2008-2009 financial crisis. In the U.S., construction starts were up to 17% in 2016
and are forecast to advance 7% this year which is a bright side. The worldwide annual infrastructure spending is
expected to grow to more than US$9trillion/year by 2025 from a little over $4.5trillion now as per some
analysts. The established companies also face strong competition from firms in low-cost nations, which weighs
on E&C profit margins, driving many in the industry to commoditize their services. The E&C companies have
moved to mergers and acquisitions(M&A) centered on acquiring companies promising new sources of value in
new geographies/new line of business as a measure against this. There are more threats for the construction
companies now, In response the corporate strategy to grow profits is by cutting cost and M&A.
Figure 13:Restructuring strategy by Corporate in UK as per global CEO (edited 2017)
0 10 20 30 40 50 60 70
Complete a domestic M&A
Complete a cross-border M&A
Sell a majority interest in a business or exit a significant
market
Outsource a business process or function
Insource a previously outsourced business process or
function
Implement a cost-reduction intiative
Enter into a new strategic alliance or joint venture
End an existing strategic alliance or join venture

14. 14
Figure 14:Top global trends to transform wider stakeholder expectations in construction over next 5 years
2.1. Return Of Lean and Six Sigma Times for the process improvement and
sustainability in Construction
The returning of lean and six sigma times shouldn't come as a surprise to E&C. Success has been fleeting
because E&C firms have not addressed the endemic problems faced by the industry by adopting new strategies.
Studying the volatility of the sector and increasing the strength in most profitable corners of the sector making
the most of commoditization and thereby implementing lean and six sigma, Wasteful/defective activities are
completely diminished. The redo work and extra transportation activities have been minimized.
 It is made compulsory that anything required on site be ordered right before time it has to be used, saving
extra transport, handling and storage cost and minimizing the wasteful activities.
 Time factor-Much time is reduced as all wasteful/defect activities are eliminated.
 Cost Factor-Reduced cost, improved quality standard. Financial goal is reached right-on-time and up-to
the mark.
 New process map-much refined and straight forward without inter-mixing with other activities, more
transparent and cost-effective-approach.
 The pull system-good in saving costs and recycling/reducing waste.
0 10 20 30 40 50 60 70 80
Demographic Shifts
Shift in global economic power
Resource scarcity and climate change
Technology Advances
Urbanization
Others

15. 15
Figure 15:6sigma+Lean strategy output
2.2 Green Construction Strategies in corporate construction
"We shape our buildings and, afterwards, our buildings shape us"-Winston Churchill, 1944
The largest global consumer of resources and raw-materials is E&C sector, 50% of global steel is consumed,
manufacturing of building products uses 3Bn.Tons of raw-materials worldwide, construction and
demolition(C&D) derives 40% Solid-waste in US so closed material loops in circular economy is required.
Building holds 25-40% of the global total for energy usage and thereby contributing to the release of carbon.
The quality of construction and materials used needs to be improved, adding value and contributing to a
healthier indoor environment, reducing cost of living and increasing sustainability, hence causing huge potential
benefits. Optimizing space and ensuring more efficient methods of heating, cooling and lighting are highly
prioritized. The industry should make use of off-grid or renewable power sources such as wind, geo-thermal
solar, tides, bio-gas and waves.
Lean:
*Eliminate Waste
*Shorten Cycle Time
SixSigma:
*Eliminate Process
variation
* Improve Process
Capability.
*Flawless Execution
*Impact Top &
Bottom Line
*Enhance customer
experience

16. 16
Figure 16:The life cycle analysis of a construction product
2.2.1 Circular Economy : A zero waste program
Figure 17-Circular Economy-an eco-efficient economy

17. 17
In a linear economy, raw materials are extracted from the earth, used and discarded: "take-make-waste". This
economy disengages the economic growth from the use of natural resources whereas in the reuse economy,
many non-recyclable materials are used again and hence the demand for natural resources and the emissions
increase as the economy grows. The ideal economy is a circular economy in which the raw materials are never
depleted, this economy is directly proportional to growth of economic and natural resources which leads to
positive footprints/negative emissions.
Figure 18:Linear, Reuse and circular economy themes.

18. 18
Figure 19:Positive Effects of successful communication and other strategies in different perspective of organization

19. 19
Chapter 3
Corporate communications strategy in construction
It is obviously desirable that the various perceptions that people have about a company's image should be
favorable; so it is important to take a proactive approach to managing the way it communicates to customers,
suppliers, competitors, share-holders, clients and the world-at-large. The successful internal communications of
E&C organizations are critical to the effectiveness and success of the management of that company, therefore to
the success of the business. Communication of key corporate messages concerning strategy, safety, quality or
environmental aspects is fundamental to company's very culture and also meeting the corporate objective, i.e.
that of giving out serious management messages for future corporate development. The main objective is to
motivate and inform the company staff in order to help achieve the overall business goals successfully. This
could be through a variety of media and concern any aspect of the corporate strategy. The communities in which
construction companies operate are critical for business and project success. Construction community
involvement can be approached at two levels, corporate and project level and should be based on focused
approach which has a strong business case. The use of annual report as a communication tool to stakeholders
should be carefully considered in terms of design and content. An open channel of communication with the
client during construction phase is important to reduce conflict between the parties. Complaints handling
procedure should be effective and needs to encourage clients and their advisors to communicate their views,
feedback and criticisms which helps in improving all services. The 3Ts( targeting-tailoring-trimming) needs to
be targeted at those within the client team who will be involved in the decision-making process; to be tailored to
the client's specific requirements; and to be trimmed, ie concise and to the point which have been identified as
effective rules in the provision of promotional material to highly experienced and technical audiences. Safety
communications with own staff and the community is vital, managing incidents so that mole hills don't become
mountains. The managers of the construction site has an important role to fulfill in the overall business success,
the Manager has a very far reaching influence on the way the project is portrayed. The team needs to fabricate
the message to the correct audience understanding the backgrounds, needs and interests of the people they are
communicating. Positive messages should be generated about the project which can be used in wider marketing
communications efforts.

20. 20
Chapter 4
Strategic Ways to the future of Construction Industry
Talent shortage in the sector is becoming more severe, E&C firms are also making talent acquisitions simply to
build up their human resources because the talent pool is getting older and sector is becoming more dependent
on talents in specific locations. Since they rely heavily on buildings assets, E&C will remain cornerstone of the
world's economy and of almost all other industries, and it will continue the same as homes, workplaces and
travel method are all components of the built environment. Its labor productivity, static for decades, is
increasing/will rush once the new digital technologies are adopted more widely. The new construction era will
bring great benefits by reducing construction costs and adverse social effects and environment impacts over
time, by improving the efficient use of scarce and for the economy, it will narrow down the global
infrastructure gap and boost economic development. All stakeholders along the value chain (individual
companies, the industry as a whole and governments) should take action to move the industry forward, Private
companies should be active in shaping the transformation. Companies stand the best chance of success when
implementing the opportunities on a large scale if they structure their organization optimally. The industry
should enhance coordination and cooperation across the value chain agreeing on common goals and standards.
The industry needs to work collectively with all stakeholders to gain support of society at large along multiple
dimensions. The cross rail project in the UK showed how public projects can spread and speed up the adoption
of new technologies in the industry, The government as a regulator and a key project owner, should create a
fertile environment for the transformation of the E&C sector.

21. 21
Figure 20:UK government Strategy 2025 (NBS)
Figure 21:UK 2025, 3 Strategic priorities (NBS)
UK 2025
• Smart Construction & Digital Design
3 Strategic
• Low Carbon & Sustainable Construction
Priorities
• Global Trade

22. 22
Figure 22:The key questions and answers for strategic decision-makers in corporate construction.

23. 23
Conclusion
Very successful organizations do not achieve what they do by accident; they do so by considerate management
of people and careful utilization of technology and other valuable resources. Most of all, the managers of such
organizations constantly scan the environment which they operate to search for opportunities and to avoid
potential threats. Armed with the requisite intelligence, these managers will then consider what they must do in
order to alter or adapt the organizations resource base to maximize its potential. This process is continuous, it is
not wise to be complacent. There may be a need to constantly adapt strategy in order to survive or radically
change so that it best matches the conditions that are considered most likely to pertain. There is no theoretical
model that provides all of the answers, nor indeed that guarantees success. The hardwork by all concerned and
the importance of dedication to the achievement of satisfaction by those who either purchase or consume the
products and/or services. Different Companies have different circumstances and starting points based on their
region, sector of activity and size, So the numerous developments and measures discussed in this report
described holistically as part of a single transformation framework is not equally relevant to any particular
company. Based on the ambitions and client needs, the Corporate companies have to choose the innovations and
action areas that best suit them. If they choose wisely and pursue the choices actively and accurately, they will
secure their own future, and ensure a flourishing, successful and exciting future. Competitive advantage is not
about how good you are but about whether you're faster, better, or cheaper than competitors in your particular
market. By creating, building, manufacturing and maintaining the workplaces enabling our businesses to
flourish, the economic infrastructure to develop including our schools, hospitals, and homes, Construction has a
wide significance to the economy and the whole life value of facilities is critical, touching everybody's everyday
life in some way. An innovative industry which uses smart systems and technology to overcome today's
challenges adapting to whatever the future is holding
"Construction is so much more than what most people think. Its impact on society, the economy, jobs and
other industries is massive." - Chris Blythe, Chief Executive, CIOB
Hoping that the strategic ways of Building Tomorrow will attract the next generation into one of the most
exciting careers today.

24. 24
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