The document outlines CB&I's strategic plan to diversify into new business areas through conglomerate diversification. It discusses CB&I's current strategies of operational excellence, customer intimacy, and product leadership. The strategic plan proposes expanding into 4 new projects in the Middle East and maintaining Japanese infrastructure. It provides financial projections of a $2 billion loan over 15 years to fund staffing, equipment, legal fees, and transportation. Key goals are improving safety, quality, and reducing delays and turnover over 1-5 years while pursuing continuous innovation and product development long-term. The management team seeks board approval to invest in acquisitions to increase stock value and synergies between businesses.

1. By Julie L. Bentley
STR/581
April 6, 2015
Kenneth Chapman

2. What is Needed Currently that has
not been Tapped
GOAL INITIATIVE FOR STRATEGIC PLANNING:
 The company wishes to change the strategic planning of
this organization which already includes: 1) operational
excellence, 2) customer intimacy, 3) product leadership, 4)
differentiation, 5) focus, 6) concentrated growth, 7)
product development, 8) innovation, 9) horizontal and
vertical acquisitions, 10) concentric diversification, with a
change to include a new grand strategy of 11) conglomerate
diversification.
 New project developments – 4 areas in Middle East, Japan.

3. Business Mission
 Business Mission:
 "CB&I is the most complete energy infrastructure focused company in
the world and a major provider of government services. With 125 years
of experience and the expertise of approximately 54,000 employees,
CB&I provides reliable solutions while maintaining a relentless focus
on safety and an uncompromising standard of quality. As one of the
most complete providers of a wide range of services including design,
engineering, construction, fabrication, maintenance and
environmental services, no project is too big for CB&I. Our timely and
cost-effective solutions not only satisfy our customers' needs, but also
improve the quality of life for people around the world" (cbi.com, 2015).
 The Mission Statement states: "Sustain earnings (profit) growth at
levels where stakeholders view CB&I as a "growth" company" (cbi.com,
2015).

4. Customer Impacts: Employee Impacts:
1. Provides Reliable Solutions. 1. Builds trust
2. Major Provider of Govern- 2. Reliability and Training
ment Services. 3. Continued Accounta-
3. Relentless Focus on Safety. bility
4. Uncompromising Standard of 4. Continued Safety
Quality. 5. Builds Communication.
5. Design, engineering, construction.
6. Fabrication, Delivery, Maintenance
7. Assembly and Repairs.

5. Event Milestones for
Implementation
Schedule Dates:
Begin Date: April 1, 2015
Ending Date : December 31, 2020
First Milestone: 1) Major Events Milestones for Implementation
of new strategic management initiative: May 1, 2015
Second Project Milestone:
2) Milestones for new storage tank contracted projects:
Scheduled Dates can be found on the Executive Summary Sheet and
Proposal Agenda Sheet on pages: 5, 6, 24, 25.

6. Funding Request:
The Company requests a total loan of $2,000,000,000.00 over
the course of 15 years, to be used for the following purposes: 1) 4
projects - Middle East- Petroleum, Natural Gas, Water Storage
Facilities, and 2) Upkeep of Japanese water infrastructure since
environmental weather disasters.

7. • Staffing $8.4 million dollars
• Equipment- $1 billion dollars
• Contract Pricing- $10.5 million dollars
• Business Law/Legal Regulatory Licensure fees - $2 million
dollars
• Logistical Transport- $12 million dollars
• Long-term debt payment is a key feature of the Company's
financial plan. We expect to break even within an 8-12 year
time period following the introduction of our products.
Financial predictions suggest a minimum 22.17% percent
return on investment by the conclusion of the financing
period

8. Business Goals and Objectives
 Short-Term Goals:
 Continuous improvement of safety standards measured monthly for up to one year on OSHA
standards. Increase of 2-5% this year.
 Procurement of 99% quality steel within 6 months of new projects initiated in May 2015.
 Reduction of turnover rate of 3% for May 2015 - November 2015.
 Increase in contract approvals of 5%.
 Globally:
 Decrease in delay of fabrication of steel for petroleum storage - Monthly 1-2%.
 Decrease in transport time - 3% for next year.
 Increase in cultural standards of care for environment social issues with building of projects - 2-5%.
Measured monthly at end of month and sent to corporate headquarters.
 Increase in communication globally with project managers - 2-5% technology increase (Skype,
Email, Phone, Text).

9. Long Term Goals and Objectives
 Continuous product development.
 Innovation of greatly improved and new energy infrastructure projects - reap
initially high profits associated with customer acceptance.
 Differentiation: attributes of final product over other product qualities, and
customer loyalty.
 Focus: attend to needs of domestic and global projects. Maintenance and
service for infrastructure projects.
 Operational Excellence
 Customer Intimacy
 Product Leadership
 Concentrated Growth
 Market Development
 Horizontal and Vertical Acquisition
 Concentric Diversification
 Conglomerate Diversification - NEW GRAND STRATEGY INNOVATION
LONG TERM GOAL.

10. With the additional strategic plan of conglomerate diversification, the
management team is wanting to present to the Board and venture
capitalist group a most promising investment opportunity to increase
CB&I’s stock value for shareholders, achievement of tax savings, an
increase in the efficiency and profitability of synergy between CB&I
and the company or companies acquired (Pearce & Robinson, 2013).
We as Chicago Bridge & Iron’s strategic management team have
discovered that using a combination of the value disciplines, generic
and a combination of grand strategies that Chicago Bridge & Iron has
in the past, concurrently, and in the future will continue to be one of
the largest energy infrastructure organizations that shares its
knowledge and expertise domestically and globally.

12. If you have any Questions now
is the time to ask – The strategic
Management Team will answer
them at this time !!!!!

13. References
Chicago Bridge and Iron. (2015). CB&I. Retrieved from
http://www.cbi.com/
Pearce, J.A. & Robinson, R.B. (2013) Strategic
Management: Planning for Domestic and Global
Competition (13th ed). New York, NY: McGraw-Hill