Transcript The Construction Environment

7 International Construction
Management Philosophy and Goals.
Requested Reading:
Read this section in your own time.
Summary:
It re-groups the marketing/organizational factors
discussed in the earlier sections into a check list of:
things to watch out for, and
things to do,
to ensure success in international contracting
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9 International Project Organization.
Requested Reading:
Read this section in your own time.
Summary:
It re-groups the marketing/organizational factors
discussed in the earlier sections into a check list, with
emphasis on:
company organization and
the International Project Manager.
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– The role of the International Project Manager (IPM):
• manage solely design, or
• manage solely construction, or
• manage design and construction.
– May be based in US, and project country.
– Responsible for tasks such as:
• client (owner) liaison with design and construction teams and
associates;
• project planning and organization;
• budgeting, negotiations, and payments;
• staffing;
• establishing project controls & progress reviews;
• general leadership.
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10 International Construction
Marketing.
Objective:
To understand the principles of marketing in
international construction.
Summary:
10.1 Overview of Marketing.
10.2 Evolution of Marketing.
10.3 The Marketing Environment.
10.4 Strategic Planning and Marketing.
10.5 Understand the Consumers
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10.1 Overview of Marketing
• Objectives of marketing, identify:
–
–
–
–
–
who our customers are;
what goods and services to offer;
where to sell our goods and services;
what features to emphasize in advertising;
what prices to charge.
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10.2 The Evolution of Marketing
• Three phases in the evolution:
– Production era:
• output increased to meet demand;
• = retroactive.
– Sales era:
• products sold without determining consumer’s desires;
• = proactive.
– Marketing era:
• research used to determine consumer needs and wants;
• = predictive.
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10.3 The Marketing Environment
Uncontrollable factors (beyond control of individuals and organizations)
Controllable factors (directed by organization and its marketers)
Organization’s success / failure in reaching its objectives.
Feedback
Observe performance
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10.4 Strategic Planning and
Marketing
• A range of lengths for marketing plans:
Short term
Medium term
Long term
1 year
2 to 5 years
5 to 15 years
YEARS
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• Steps in strategic planning in marketing:
– Define organizational mission;
– Establish strategic business units;
– Set marketing objectives (stepping stones to achieve
mission, with dates, quantities, etc…);
– Perform situation analysis (legal, political, economic...);
– Develop marketing strategy (how to achieve the
objectives: resources needed, associates, advertise, etc..);
– Implement strategy;
– Monitor results;
– Adjust organization and strategy...
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10.5 Understand the Consumers
• Consumer demographics:
– distribution of potential consumers and their
characteristics (needs etc);
– objective and quantifiable, and easy to:
• measure; analyze.
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11 Decision to Export.
Objective:
To understand the steps to be taken in order to
make a decision on whether to export your
products and services.
Summary:
11.1 Decision to go Into International Market.
11.2 The Market Study.
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11.1 Decision to Go Into the
International Market
• Statistics show only about 5% of US manufacturers
have gone into non US markets seriously.
• Reasons for Moving into International Export
Market
– profitable, unexploited territory;
– your product is established, and you are just expanding
your market;
– US companies operating on large projects overseas will
often buy a lot of products from back home (familiarity
and less risk);
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– others… ?
11.2 The Market Study
• Find the international market that pays off:
– Start by looking where the competition is working;
– Sources of such information:
• Engineering News Record;
• Wall Street Journal;
• Economist; etc…
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• The study is a piece of research (identify prospects
and good strategies):
– Gather data;
– Analyze data to determine relevant facts:
• Total exports;
• Country by country exports;
• End user population.
– Establish attributes of target countries:
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•
•
•
Volume potential;
Accessibility;
Local skills and know-how;
Stability, etc…
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• For example:
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check out ENR annual listing of top 500 design firms;
identify 5 to 10 of your main competitors;
list countries where they worked last year;
where there are clusters, something is happening...
Countries
Competitors
A
B
X
$105M
$5M
Y
$25M
Z
$83M
C
D
$15M
– having identified potential countries, check out the
economic and political risks.
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Retrospective Literature Search
keywords
references
references
Once found some
articles, check the
references for similar
articles.
keywords
references
Computer search:
library,
e-Journals
web sites.
titles
titles
authors
Repeat the process using
references, as well as
authors, titles, keywords.
Retrieval rate reduces
after several iterations
references
authors
Retrieved articles get
older and thus less
relevant.
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Citations Index Search
Look up articles in
citations indices.
Articles retrieved
from retrospective
literature search
This will provide you
with a list of articles
that refer to your found
articles.
Articles become more
recent as the search
progresses.
Best strategy is to mix
both retrospective and
citations search.
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