Discovering External and Internal Capabilities of Aurecon
Discuss about the Comparison between Aurecon and KTC Civil Engineering.
New marketing world is uncertain and complex. Technology and innovation encompass all aspects of business. Hence strategic human resource management of an organisation needs always to pay concern on the external and internal variables regarding organisational business. In order to identify what are challenges and potentialities in a particular business, it is necessary to take PESTEL, porter’s five model, VRIO framework into account. However, the mentioned tools are not sufficient for investing human resources and strategic management within an organisation. This particular assignment is designed for giving a critical thought in developing human resource management for Aurecon which is one of the leading organisations in the field of engineering and infrastructure. The organisation is widely spanned across Singapore. The assignment 1 of this research is focused in discovering external and internal capabilities of Aurecon. Therefore, in that assignment PESTEL, porter’s five force model and VRIO framework have been used. It is found that Aurecon is integrated and successful organisation toward achieving organisational mission, vision and objectives. However, these three models are not enough to think dynamically about solving marketing challenges. On the other hand, the above mentioned models are traditional and common to be used in the research of marketing management. Therefore, the chosen approach in assignment is not the ‘best way’ in terms of incorporating latest management thinking. The purpose of this assignment 2 is to have latest cutting-edge solutions in order to deal with the management challenges of Aurecon. In the assignment 2 which marketing tools are applied, are VUCA, 7-S framework, blue ocean. It is because this models are effective to find out dynamic capabilities of an organisation the best. Hence major question of this research are mentioned below.
“How can Aurecon increase profit?”
VUCA is a managerial acronym of trend. As opined by Mack et al. (2015), it stands for volatility, uncertainty, complexity and ambiguity. It is one of the exclusive management tools to conflate four particular kind of challenges which to face requires four different kind of responses. VUCA helps Aurecon to understand what are the constant variable factors in their business. On the other hand, the application of this model let Aurecon gets always ready to face an uncertain situation in business. Every business has to deal with a number of complexities and issues. In order to cope up with those complexities and issues, the analysis of this model will be reliable for ensuring constant growth of Aurecon. Sometimes it is seen that being manifested by ambiguity an organisation cannot make its goal clear. Therefore, the organisation cannot understand how to make a situation favourable for increasing profitability. In business. The framework of VUCA will contribute Aurecon to gain a critical understanding its market variables, market uncertainty, complexity and ambiguity (Krämer 2016).
Figure: VUCA Model
(Created by Author)
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Complexity As a resource-scarce island, the high security of energy is mandatory in Singapore in terms of accomplishing building project. However, the organisation has less contribution in saving energy for future use. It is one of the major issue to continue production at all times in any way (Packowski 2013). Aurecon needs to take an effective initiation in order to save energy for ensuring nonstop production. |
Volatility Aurecon being an engineering sector needs to consider contact entries of new Information Technology and Communication (ICT) which contributes information and analysis in projects. There is correlation between technological innovation and CSR responsibilities (Burgartz and Krämer 2016). Therefore, with the continuous advancement of technological innovation, CSR responsibilities also needs to be developed on constant basis. Daily growing competition in the engineering market of Singapore results to decrease consumer demand for Aurecon. On the other hand, in order to execute CSR responsibilities, as a Singapore company, Aurecon needs to ensure lower carbon emission. |
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Ambiguity In order to expand in business continuously, Aurecon needs to increase their market share. The organisation needs to have the arrangement of a large amount of capital. However, lack of shareholders restricts the organisation to invest a large capital on business. The vision of the organisation is acquiring the first position in the engineering sector of Singapore. In this reason the organisation needs to represent the trendiest architecture. The organisation needs always keeps it mind that they are operating in the developed country like Singapore. However, this organisation still uses 3D Building Information Modelling (BIM) when real estate sector is going to enter into the era of 5D BIM. The use of this technology can save costs and times in accomplishing Aurecon projects. The performance of Aurecon is ambiguous in the mentioned area in this section in supporting their organisational vision (Kaivo-oja and Lauraeus 2018). For this reason, Aurecon may be unable to compete in the market. Hence, Aurecon needs immediate to upgrade their using BIM and increase the engagement of shareholders in the business in order to accomplish the market demand positively. Aurecon needs to be specific in targeting customer. In addition, the company requires to develop a strong brand value which will make it distinctive from the other companies. |
Uncertainty Business laws regulations and legislation is also considered as a changeable factors based on market economy and political situation of a country. The arising situation from the changes in business laws and regulation is completely unpredictable. This change may affect in business development of Aurecon. |
As per Akerib (2014), 7-S framework is one of the unique model to analyse what is the position of an organisation against its mission, vision and objectives. Some of the marketing management tools look into internal factors and some aims to evaluate internal factors of an organisation. Yet, it remains a question which factor will be most important to study for developing strategic management of an organisation. This framework let one to focus on strategic marketing management irrespective of external and internal factors of an organisation (Bauer et al. 2015).
- As per this framework, Aurecon requires to develop entire performance of a company. In this reference, Aurecon needs to develop human resource management and an effective workforce plan. Human resource management of Aurecon needs to consider in announcing a good amount of money as incentives for doubling the performance of the employees. It helps Aurecon to make a challenging work environment which will ensure more than 100% productivity (Guenzi and Storbacka 2015). In addition, employees need to be treated with full of respect and humanity.
- The real estate business will be more progressed in the future with the development of technology and information. In addition, the growing competition in the market can bring a major effect in the employment market of Aurecon.
- The organisation requires to let their department of information technology more advanced. Human resource department of an organisation needs to ensure effective communication between all the department in Aurecon.
- One of the important vision of Aurecon needs to gain the support and trust of the employees in terms of implementing change management.
The Limitations of Traditional Marketing Management Research Tools
All the mentioned perspectives are necessary for Aurecon to take into account. Based on these perspectives 7-S model is applied on Aurecon. The model has seven independent factors which are divided into two categories such as hard elements and soft element.
Figure: 7S Model
(Source: Mithas and Rust 2016)
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Hard elements |
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Strategy |
Structure |
Systems |
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Aurecon strategic management is focused in developing green projects in Singapore. They think that this initiation of them help to take competitive advantage in the market. However, the construction projects in Singapore is highly exotic with trendy facilities and amenities. Customers also prefer to experience lavishing engineered construction with all the ultra-modern facilities and amenities. However, Aurecon lakhs to represent such construction within a reasonable price change. Hence, the organisation can receive a great treat in order to go in the first position in the engineering market of Singapore. |
Organisational structure of Aurecon is well integrated. The hierarchy of Aurecon are – co-founder and chief executive officer, chief financial officer and president, chief technology officer, chief growth officer, chief revenue officer and the head of SVP, data and research. It seems that the organisation has all the important departments which they need to have in terms of being continuously successful in business expansion. The organisation also has an excellent customer support team. Effective communication of today has been followed in order to align the activities of all the department in Aurecon. The organisation is focused in developing cooperative teams. On the other hand, the organisation gives reward and justified performance appraisal to all the employees. In this way the organisation is able to achieve employees’ trust and dedication. It maximises individual employee performance and organisational profitability. Therefore, implementing change management is not a complicated issue in Aurecon. |
Human resource management of Aurecon is extremely strategic and concerned in order to keep their employees motivated. They have an excellent incentives plan. It helps the employees to stay competitive in terms of advancing their career within the organisation. The organisation also has an effective financial team in order to develop revenue growth. In this reference the organisation requires to promote B2B sales and marketing data and information. However, it is seen that the organisation cannot to achieve desired business revenue. It is because that the organisation has performance gap. In order to mitigate the performance gap, Aurecon can hire more employees or the organisation can announce a high amount of incentive schemes, effective compensation and benefits in terms of urging employees in putting extra effort and labour. In this way the organisation can make their performance gaps in order to ensure high revenue growth. Aurecon management cooperatively supervises the employees in terms of aligning their performance with organizational performance. The organisation has a very positive attitude towards global cultural diversity. It is one of the important organisational ethics to attract the engineering talents across the world. |
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Soft elements |
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Shared values |
Skills |
Style |
Staff |
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Aurecon is focused to develop green projects. This is one of the core values of the organisation. The corporate culture of that organisation is generous in satisfying its every external and internal stakeholder. As an evidence, it can be asserted that the employees in Aurecon are highly engaged and stays for long term. The customers of Aurecon also seem satisfied. |
Human resources are the main asset for an organisation to grow up. Hence the organisational competencies are determined based on the skills and abilities of the employees within an organisation. One of the important skills represented within the company is the communication for sharing data and information. The strongest skills which is represented by the company is the use of information technology (Awino, Njeru and Adwet 2017). Maximum amount of workforce is represented in the company by the today’s generation. Therefore, there are little presence of skill gaps which is created by personal ability and disability of the people. Training and development programme of Aurecon are extremely effective to monitor and assess in bettering the skills of individual employees. |
The leadership style of Aurecon is enough participative. They are very polite in behaving with the employees. Aurecon management have effective communication in order to look into where the employees are facing problem in term of representing workforce. In addition, Aurecon management give regular feedback of employee performance. The employees in that organisation are competitive and cooperative both. However, they are focused in to take all the responsibilities of team work in terms of achieving team goal. The team members within that organisation are not nominal groups, they are the functioning body of real team. |
Employees in the Aurecon are highly skilled in representing their engineering work. In this reference it is necessary to note that Aurecon recruiting and employment plan is highly effective. |
Blue ocean strategy has been first introduced by W.C. Chan Kim and Renee Mauborgne. According to Kim and Mauborgne (2014), this strategy is used to develop strategy beyond tradition. This strategy will help Aurecon to have an uncontested market space. In addition, this strategy is helpful for developing a new consumer value in decreasing costs (Agnihotri 2016). This strategy is regarded in creating market in own way of an organisation. However, at the present time it is tough for Aurecon to go in the position of having ‘uncontested space’ as the organisation has a number of substitutes in the market. The organisation requires to develop such a brand value and consumer value where with Aurecon no one can compete (Randall 2015). The organisation may sale their products at the most reasonable price range, such a price range which is not possible to be served by any other organisation in that industry. This condition will be the most effective for Aurecon in order to maximise their sales. In this reason, the organisation requires to seek cost effective labour and cost effective techniques in terms of developing workforce on daily basis (Sharma 2016). In this reference the organisation needs to use cost effective techniques to save energy. Otherwise in the country like Singapore, the organisation never can fulfil their project within time and therefore the organisation has to bear a large amount of labour expenses.
Figure: Thoughts of Blue Ocean Strategy
(Source: Kim and Mauborgne 2014)
KTC Group of Singapore is one of major competitors of Aurecon Singapore. The management of the organization is extremely strategic to hire the best engineering talents from all over the world. The organization is also successful in retain their engineers and other important staffs for their entire career long. The organization constantly represent business innovation in terms of taking competition advantage and distinguishes themselves than the others. This company is also considered as one of environmental friendly organizations. It’s one of the greatest examples is that the company discharges their liquefied stabilized soil to designated fill area with concrete pumps. This environmental friendly behavior of the company also helps them to make their reputation.
The above analysis makes it very clear that the organisation has all the creative and necessary competencies in order to lead the construction market of Singapore. The organisation has an exclusive team of engineering talents. Therefore, the organisation is able to produce exclusive design of construction. Representing green projects are their one of the best innovations (Felin, Foss and Ployhart 2015). However, this is not sufficient enough to develop a unique consumer value to acquire uncontested space. The human resource management of Aurecon is dynamic as it never fails in terms of implementing change in accordance with the change variables in the market. In addition, integrity of that organisation is another important dynamic capability which is regarded in terms of fighting with any uncertain and opposite situation (Jonker and Cullis 2017). The financial team of the organisation is exclusively dynamic. They hold exclusive sense of business laws and legislation and therefore their solution for budget is highly beneficial in terms of accomplishing Aurecon organisational project within limited time (Khanam, Siddiqui and Talib 2016). The another important dynamic capabilities of the organisation are the cooperation of team. Between the team members there are good relationship. In addition, the management of Aurecon always take humanitarian approach in order to cooperate with the staffs. In this reason, the management and staff relationship in Aurecon is also important to take into account in the context of dynamic capabilities of Aurecon (Moore and Naelini 2017). The most dynamic department of the organisation human resource department which executes their all the traditional responsibilities very well.
Latest Cutting-Edge Solutions for Dealing with Human Resource Management Challenges at Aurecon
Conclusion
In conclusion, it is necessary to say that the growth of organisation is good towards fulfilling their business mission, vision and objectives. Team spirit and bonding of Aurecon is also necessary to take into account for the success of organisational objectives. However, it is the time when the organisation needs to widen their way to be more flourished. The vision of the organisation is to be the number one leading company in the engineering sector. In this reference, the performance of the organisation needs to take into such a dimension where no one can raise a single question on the performance of Aurecon. The organisation needs to concentrate in initiating such a product innovation so that a consumer value can be developed. In that case the organisation can achieve uncontested market space where the organisation has not to consider any pressure of pricing.
Reference list
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