Strategic management guidelines for construction SMEs in the Eastern Cape
- Authors: Appels, Gaynor
- Date: 2010
- Subjects: Construction industry -- Management , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8663 , http://hdl.handle.net/10948/1414 , Construction industry -- Management , Strategic planning
- Description: SMEs fulfil an important role in the long-term growth and development of the economy of the country. The development and growth of construction SMEs are important for all countries, as a strong SME base has the capacity to produce a high-quality infrastructure for the country. Construction SMEs also stimulate economic activity in other sectors of the economy. Research has, however, shown that the failure rate of small businesses within the first five years is high in South Africa. Reseatch has also indicated that the lack of long-term planning and the lack of strategic thinking are major contributing factors to the business failure of SMEs. SMEs operating in the construction industry are faced with the same challenges as their counterparts in other sectors of the economy, but in addition to those difficulties, construction SMEs also have to deal with the unique characteristics of the industry that have adverse implications for them. The construction industry has experienced considerable growth and success, in the past decade, particularly as a result of the government's considerable infrastructural spending, especially in the run-up to the 2010 FIFA World Cup. The growth in the construction industry has, however, not resulted in similar results for Construction SMEs; and research has shown that most of them have not developed into more established entities. In fact, in the Eastern Cape, 91 per cent of all registered contractors fall within the lowest level of the Construction Industry Development Board's classification system. Many construction SMEs perform poorly, but among them there are those that have the potential to grow and develop into larger more established entities. Research has shown that contractor development programmes aimed at assisting the growth and development of construction companies have been successful in increasing participation in the industry, but not in ensuring that small enterprises grow into self-sustainable established enterprises. In contrast, the research has shown that SMEs that practice strategic management perform better, and that there are many advantages for SMEs in applying strategic management principles. This study, therefore, investigates how strategic management can be applied to address the problems faced by construction SMEs, and to exploire techniques and tools of strategic management that can make a significant contribution to their growth and development.
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- Date Issued: 2010
The risks of civil engineering project development in emerging nations
- Authors: Fyvie, Richard Michael
- Date: 2010
- Subjects: Engineering -- Management , Engineering firms -- South Africa , Construction industry -- Management , Project management -- South Africa , Civil engineering -- Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8632 , http://hdl.handle.net/10948/1481 , Engineering -- Management , Engineering firms -- South Africa , Construction industry -- Management , Project management -- South Africa , Civil engineering -- Africa
- Description: This research reviews the challenges and obstacles confronting multinational civil engineering consulting and contracting companies seeking to conduct project developments within Emerging Markets, specifically with regard to the regions of Africa and the Middle East. With the increasing convergence of the global economy towards an interconnected and co-dependant system, the emerging economies of previously underdeveloped parts of the world are now capturing the focus of the civil engineering industry as the primary area of operation. Multinational companies that historically were restricted to construction of the developed world must now adapt and reposition themselves with a footprint in these emerging markets, if they are to take advantage of the changing conditions within the global infrastructure construction industry. For companies historically unfamiliar with operating in Africa and the Middle East, a plethora of potential risks are associated with project development. This research incorporated a substantial literature study that determined a number of critical issues that directly and indirectly influence a company’s ability to complete a project within time and under budget. The literature bank was then tested against the expert opinions of four selected respondents utilising a case study research methodology, as detailed by Yin (1994: 1-17). The respondents represented two selected civil engineering consulting firms, one based in a developed country with an extensive interest in the Middle East, and the other based in an emerging country itself, with operations throughout Africa. The outcome of the research ii highlighted several internal risk factors affecting development in Africa and the Middle East, such as capacity, staff experience, available resources and corporate culture. External factors were, however, the primary focus of respondents’ feedback, and included the reliability of energy supply in the target country, the condition of the built infrastructure such as roads and ports, tax rates and cost of finance, the prevalence of corruption as well as the risk of civil conflict and political instability. The Project Risk Guideline was the final output of this research process, which represented a synthesis between the literature review, the case study investigations as well as synthesis of various accepted risk evaluation techniques. The Guideline is a stage-gate sequential process, and may be utilised by civil engineering consulting or contracting firms with an interest in risk profiling and mitigation for project developments in emerging nations.
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- Date Issued: 2010