Running Head: STRATEGIC PLANNING STRATEGIC PLANNING 2 Strategic Planning ******** BUS/475 January 30, 2017 ************** Propose a new product or service for the new company division The company in question is Shaw Group Inc., located in the Eastern part of Canada. The company has been the leading community developers as well as natural resource manufacturers within this area. It focuses mainly on construction products and to do this effectively, the company has been divided into six main divisions. They include Clayton developments, Shaw precast solutions, Shaw brick, Ven-Rez, Shaw resources and Prestige homes. Each of these divisions are entitled with different activities and tasks that makes the company to be managed in a decentralized manner. Despite of that, the company has been very successful since it was founded in 1986 up to date. It has enjoyed a very high growth rate, high profits and revenues, presence experienced business units, among other key factors that have contributed to its success. The following paper addresses one key proposed new division that will also deal in a new product line for this company. Being a construction based industry, the proposed new division must still focus upon construction. The new division will therefore be known as Shaw Construction Vehicles. As the name suggests, the division will deal in construction vehicles as the main product. This will include the manufacture of these vehicles which will be made available to other construction companies for purchase and renting purposes. Alternatively, the vehicles will also be used for building and construction purposes for this company. Generally, construction must take place using construction vehicles; this is the key reason as to why this new division is expected to add value to all other divisions in this company. Some of the vehicles in which the new division will manufacture include loaders, excavators, bulldozers, cement mixer, backhoes and cranes. Describe how the division addresses customer needs and achieves competitive advantage The new division in question is aiming at ensuring the needs of the customers are well taken care of. In addition to this, it is aiming at obtaining a competitive advantage against other major firms which are already existing in the construction vehicle industry. Within any construction activity, the need of the customer to have quality goods and services. The new division, dealing in construction vehicles is aimed at manufacturing high quality construction vehicles. The division will manufacture its vehicles using the right metal raw materials among other factors in order to come up with a high quality product which is the concern of every customer (Wong & Chan, 2010). The company is also expected to use marketing techniques in ensuring to ad ...

1. Running Head: STRATEGIC PLANNING
STRATEGIC PLANNING
2
Strategic Planning
********
BUS/475
January 30, 2017
**************
Propose a new product or service for the new company division
The company in question is Shaw Group Inc., located in the
Eastern part of Canada. The company has been the leading
community developers as well as natural resource manufacturers
within this area. It focuses mainly on construction products and
to do this effectively, the company has been divided into six
main divisions. They include Clayton developments, Shaw
precast solutions, Shaw brick, Ven-Rez, Shaw resources and
Prestige homes. Each of these divisions are entitled with
different activities and tasks that makes the company to be
managed in a decentralized manner. Despite of that, the
company has been very successful since it was founded in 1986
up to date. It has enjoyed a very high growth rate, high profits
and revenues, presence experienced business units, among other
key factors that have contributed to its success. The following
paper addresses one key proposed new division that will also
deal in a new product line for this company. Being a
construction based industry, the proposed new division must
still focus upon construction. The new division will therefore be
known as Shaw Construction Vehicles. As the name suggests,
the division will deal in construction vehicles as the main
product. This will include the manufacture of these vehicles

2. which will be made available to other construction companies
for purchase and renting purposes. Alternatively, the vehicles
will also be used for building and construction purposes for this
company. Generally, construction must take place using
construction vehicles; this is the key reason as to why this new
division is expected to add value to all other divisions in this
company. Some of the vehicles in which the new division will
manufacture include loaders, excavators, bulldozers, cement
mixer, backhoes and cranes.
Describe how the division addresses customer needs and
achieves competitive advantage
The new division in question is aiming at ensuring the needs of
the customers are well taken care of. In addition to this, it is
aiming at obtaining a competitive advantage against other major
firms which are already existing in the construction vehicle
industry. Within any construction activity, the need of the
customer to have quality goods and services. The new division,
dealing in construction vehicles is aimed at manufacturing high
quality construction vehicles. The division will manufacture its
vehicles using the right metal raw materials among other factors
in order to come up with a high quality product which is the
concern of every customer (Wong & Chan, 2010).
The company is also expected to use marketing techniques in
ensuring to addresses the needs of the customers and also
achieve a competitive advantage. One key factor the division
will focus upon is the reliability of their construction vehicles.
Customers are always disappointed when they purchase a
product and it fails to be reliable especially in long term basis.
To therefore achieve satisfy the needs of the customers and also
gain a competitive advantage against other firms, there is need
to ensure the vehicles will be highly reliable; that is, they can
be used for long periods of time without any form of failure or
breakdown.
Pricing is another marketing technique in which this division is
expected to use in order to gain a competitive advantage. Being
a new kid in the industry, there is need for the division to use

3. pricing strategy as a way of gaining competitive advantage.
Construction vehicles are generally expensive and this is the
reason as to why some companies will prefer to rent them
especially when they are using them for a short period of time.
The new division is aiming at making this product very much
affordable and its prices will not necessarily be based on the
prices set by competing firms. Affordability in this case will be
key towards bring customer loyalty which will in the end result
into a competitive advantage against other companies in this
industry (Pearce & Robinson, 2013).
Lastly, having an effective communication system will be key
towards achieving a competitive advantage. The division will
ensure it has a feedback system from the customers so that it
can identify and understand the areas it requires improvements.
This will be important in constant improvement in the products
and also service delivery and this will ensure the division gains
a competitive advantage and also address the needs of the
customers.
Create a vision and a business model for this new division that
clearly demonstrates your decision on what you want your
business to become in the future
The new division is expected to have a vision that will provide
the blue print in which the division will follow towards its
success. Its vision will therefore be to become the world’s best
construction vehicle manufacturer by attaining extraordinary
outcomes for the customers and also building nourishing careers
for the employees of this division. From this vision, it is clear
that the division is aiming at growing and expanding to become
great in the near future.
To facilitate the realization of this vision, it is important to
come up with the correct business model. A business model can
be described as a design that ensures the successful operation of
businesses. It is based upon describing the revenue sources,
products, financing and also the customer base. For this case,
the division is expected to run its initial business using finance
that had been invested previously by the company. The capital

4. will used in obtaining all the key resources required to
manufacture the vehicles. The key processes involved will be
the manufacture of the vehicle and once the process is finished,
the profit formula will depend upon the resources used. In this
way, the company will determine how revenue will be made.
Explain how the vision, mission, and value of the new division
align with the company's mission and vision
The mission of Shaw Group Inc. is to be driven by leaders who
have strong vision as well as strong entrepreneurial spirit. It is
from this mission in which the company has been able to grow
and develop into the different divisions seen. The mission has
resulted into the company diversifying to different sectors such
as technology, fabrication, construction, industrial and also
environmental sectors. The company also has a total of 26,000
employees, all located in different parts of the world, where the
company exists. The mission of the new division completely
aligns with this new mission from the fact that the new division
already has a vision and a leader ready to bring the vision into
reality.
The vision of Shaw Group Company is to ensure rapid growth
basing on certain core values which include honesty in decision
making, leadership by example and personal accountability.
These are the main principles that have facilitated the growth of
this company. The vision of this division as stated previously is
to become the world’s best construction vehicle manufacturer
by attaining extraordinary outcomes for the customers and also
building nourishing careers for the employees of this division.
All these can be attained if and only if there is constant honesty
in decision making, personal accountability and also leading by
example. In this way therefore, the vision and values of the
division and that of the company are aligned.
Summarize how the vision, mission, and values guide the
division's strategic direction
Vision, mission and values of an organization provide the way
forward in which the organization should take (Plunkett &

5. Allen, 2008). A vision is a long term statement of where an
organization or a division wants to be. To facilitate the
attainment of this vision are the mission and the values. Mission
defines how the vision will be achieved while the values guide
the method in which an organization uses to achieve the vision.
In this case, the division wants to be the best worldwide in the
activities it does. This will be achieved by focusing on the
mission by providing best quality products. Values such as
honesty, ethics, and team work, among others will be key in
guiding the daily activities of the division in achieving the
ultimate goal, which is its vision. In this way therefore, vision,
mission and values provide strategic direction for the division
to follow.
Define your guiding principles and values for your division in
the context of culture, social responsibility, and ethics
Principles and values perform a key role in ensuring tasks are
done in the right manner while also guiding the relationship
between and among the employees. Some of the guiding
principles for this company include safety and quality in all the
operations it conducts (Mohamed, 2002). This ensures the
division is able to bring up a culture of safety as well as quality
work among the employees. Values such as honesty, equality,
trust, sustainability and innovation are important towards are
important towards ensuring the division practices social
responsibility within the division and also within the
surroundings of the company at large. These values are also key
in guiding the behavior of employees and other key
stakeholders, therefore enabling good ethics within the division.
All these will therefore result into an enabling environment for
better working hence leading into a successful division.
References
Mohamed, S. (2002). Safety climate in construction site
environments. Journal of construction engineering and
management, 128(5), 375-384.

6. Pearce, J. A. & Robinson, R. B. (2013).Strategic Management:
Planning for Domestic and Global Competition (13th Ed). New
York, NY: McGraw Hill.
Plunkett, W. & Allen, G. (2008). Management: Meeting &
Exceeding Customer Expectations (9th Ed.). Mason, OH:
Thomson South-Western.
Wong, J. M., & Chan, A. P. (2010). Strategic planning for the
sustainable development of the construction industry in Hong
Kong. Habitat International, 34(2), 256-263.