Analysis of the External Environment
As stated by Gollay et al. (2016) one of the important factors that need to be taken into consideration while analysing the potential of business is the external environment. The factors that affect the external environment normally denote its existence in the business and helps in dictating strategies that can affect the growth of the business. The report provides an analysis of the external environment that assists in the growth of a business and its expansion. The focus is on the project delivery in Australia. The current and future trends is taken into consideration which includes the political, economic, social, technological, legal as well as the environment. An analysis of these factors is conducted and recommendation is provided so that the current trend can be coped up with and any future hazards from these factors can be mitigated.
The external environmental analysis is done to identify the forces that are present in a competitive environment, which may hinder the progress of an organisation. According to Grant (2016), the analysis of the external environment is mainly conducted based on the factors that are essential for the development of a business. As stated by Khan, Alam and Alam (2015) without any proper analysis of the existing environment, it can be difficult for a business to maintain dominance in the market. In the case of the project delivery in Australia, it is necessary that the external environmental factors be analysed so that the problematic trends for future project delivery can be identified. The analysis takes into consideration the factors that affect the external environment of a business in a competitive market.
The intervention of the Government usually denotes the activities that involve the political factor in a business environment. He (2015) stated that the interference from the Government may or may not be directly related to the activities undertaken by a country or the market. At the same time, support from the Government can provide a positive influence for the growth of a business sector. Apart from this, the political factors exercise the rules and regulations that are present in a country mainly due to the existence of any political party. However as observed by Hueske, Endrikat and Guenther (2015), the political interference can be seen in countries with a high rate of political influence.
As observed by Boasson and Wettestad (2016) in Australia, the rate of political influence can be considered as unpredictable and therefore, the advent of political parties or its influences in the field of operating in external environment can fluctuate. It has also been seen that currently in Australia the political disturbance had led to an increase in the social gathering among the politicians. Therefore, this signifies that the political system in Australia is unstable and that in the future it can pose threat to construction projects. In the case of project delivery, the political factor may have a significant effect. As stated by Hubbard, Rice and Galvin (2014) the fact that after declaring that land claims need to be dealt by fighting in groups the political scenario have become a turmoil in the country.
Political Factors
The construction project delivery services may face challenge in this case as to complete a project it is necessary to have a property of land. As stated by Modarres (2016) for the engineers to implement a project, the purchase of lands is essential and any legal or political interference may lead to failure of the projects. Therefore, this particular threat can be considered as an issue for the project delivery in the future. Hence, based on this recommendations can be made that can help in mitigating the factors that dictate the political system in Australia.
Analysis of the political factor states that the unpredictable nature of the political scenario may prove to be an effective reason for failure of the project delivery. However, as observed by Mazurenko, Hearld and Menachemi (2017) one of the bright aspects about Australia is that the country is open to trade and encourage the opportunities for growth of business. The self-elected Parliament in the country aims to work towards the development of the people and the country. Hence, as stated by Rastogi and Trivedi (2016) any changes in the political scenario need to be run by the higher authorities and on some occasion’s involvement of the people need to be made. For the construction project delivery services, the future can be considered as bright as the project delivery can help in the growth of the economy of the country.
Another recommendation for the mitigation of the political scenario is that the construction project developed needs to have an influence with the political activities in the country. It has been seen that support from the Government can be gained with the establishment of a business that brings about a growth in the economy. Hence, a relation can be made between the political as well as the economical factors of an environment (Gilbert 2015). In the case of the construction project factors, both factors have a direct impact and to ensure that overlapping of the situation does not place, the project delivery service need to be developed so that it can provide political support. According to Medina Munro and Belanger (2017), the projects undertaken can be outsourced in countries that possess trade relation with Australia. Hence, it can be said that the political scenario may have a negative impact on the development of the project delivery service in Australia.
The economy of Australia is a large mixed market economy in with a GDP of A$1.69 trillion. As stated by Kirlik (2018) Australia is the second wealthiest nation if calculated based on wealth per adult. The growth in the economy allow Australia to be dominated by the service sector and conduct an alignment of the country with the economy of its neighbour New Zealand which can be seen as an advantage. However, excessive reliance on service sector may open up vulnerability in the country. This includes any economical debacle such as economic fluctuation. Alden and Aran (2016) are of the opinion that any economic fluctuation may mean considerable loss for the country as the development of the service centres can be hindered.
Economic Factors
Hence, it can be said that for the construction project delivery sector to continue with the plan of developing in the Australian society, support from people based on the economic condition need to be considered. With the current fluctuation in the economy, Australia can be vulnerable in terms of development of the service centres. Wheelen et al. (2017) is of the opinion that with a mixed economy, Australia can be considered as a country that can help with the development of business. Hence, the construction project delivery sectors need to predict the future trends in terms of contribution that can be made for the growth of the economy. It can be said that the economic growth can be related to the political support that is received by the country.
Kuznetsova et al. (2017) is of the opinion that one of the main reasons for the development of economic is the fact that it can help in bringing about income for the country. As stated earlier, the support from the Government can be gained only if organisations provide an opportunity to increase the income level. Hence, it can be said that in the case of the construction project delivery, assurance need to be made that brings about success in the economy. In this regard, recommendations can be provided that can help in reducing the impact of the economic growth.
One of the recommendations that need to be made is the fact that the economic environment need to be considered based on the development of the country and the contribution made by an organisation. As seen by Herbet et al. (2014) that the project delivery system can bring about an improvement in the economy as the construction project can be based on the factors that are underdeveloped. In Australia, employment can be a problem as the population is less and labour force is required in an excessive manner in organisations (Xu 2015). Hence, the construction project delivery system can bring about an improved rate of employment in the country that can help in gaining the trust of the Government.
At the same time another important recommendation that can be made is the fact that export and import rate need to be improve. According to Zheng and Manoharan (2015), the future of the economy of Australia depends upon the fluctuation that exists in the economic market. This can be mitigated with excessive import and export strategies so that the construction project delivery services can continue on its growth in the market. The construction project delivery can be export projects such as delivering wool or milk that is common business deals in Australia. However, the engineering project delivery needs to focus on export and import that enriches the Australian economy. In this case, a relation to the technical aspects of the environmental factor can be considered as it can help in bringing about the required changes in the country. Ingram et al. (2015) stated that support from the society is also required for the implementation of changes in the country.
Recommendations
As stated by Trainor et al. (2014) the social factor depends upon the manner in which support from the society is gained for the growth and development of an organisation. A developed society can provide assistance in helping for the growth of a business organisation or unit. One of the most important aspects that need to be considered is the fact that social support can be in form of helping in the development of an organisation and at the same time providing moral support for the betterment of the organisation. At the same time, Hutchinson et al. (2015) stated that the social influence could even get a company to recede its existence due to the illegal activities carried on in an organisation.
In the case of Australia, it can be said that the social influence can be positive but can shift to bring about negativity with any misstep. This is mainly due to the small size of population in the country. Apart from this, it is seen that Australia protects the environment in which organisations operates. Hence, it can be said that in the case of the construction project delivery service, the support of the society can be a big controversial factor. This is mainly because the construction project delivery service can be in any form and it may have a negative effect on the social activities as well as the environment of the country (Gilpin 2016).
Blaikie (2016) is of the opinion that the social influence can be helpful for organisations as it helps in maintaining an economic growth which in turn contributes in enriching an organisation with human resources. In the case of the project delivery, the social influence can help in the growth of the service and gain employment as the completion of any type of construction project require the force of labour. Hence, objectives behind the growth of society can be achieved. Therefore, recommendations for gaining positive influence of the society can be made.
One such recommendation can be the fact that the project delivery service need to predict the increase in population of the country. Haggard and Kaufman (2018) stated that the population of Australia have been on an increase in the last 5 years and the rate at which it increases can bring about huge changes in the demography of a country. Predictions are made that within 2020, the population of the country can be 27 million. Therefore, for the development of the construction project sector, it is important that it assume the change in demography so that projects can be confirmed accordingly. At the same time, Rubin and Babbie (2016) states that the economic factor also needs to be considered so that predictions about the political scenario of the country can be made.
At the same time, it is also necessary to understand the contributions that the society can make. Padgett (2016) is of the opinion that the society needs to understand the contribution it can make to the project and at the same time ensure that the people involved can contribute for economic development. Without proper support from the people of the society, it can be difficult for the construction project delivery to continue with its development. Hence, corporate social responsibility can be taken into account so that the support and positivity of the society can be gained. At the same time, it has been seen that the construction project delivery need to provide employment as well as maintain the sustainability of the environment (Payne 2015). Therefore, the environmental factor can be linked with the development of the society for positive support in project delivery.
As stated by Gollay et al. (2016) in the modern world, technology plays an important role for the development of an organisation. The dependence of an organisation is mainly based on the technological influence and the role played by technology for the development and growth of a business. Grant (2016) is of the opinion that Australia is one of the technologically advanced countries in the world. The influence of technology is used by business sectors in the country and at the same time, ensures that it helps in the development of a steady economic growth.
Therefore, implementation of technology in Australia can be considered as a positive influence for the development of the construction project delivery system. The development can be made with the help of the technological factors such as recent trend in terms of machinery used. Khan, Alam and Alam (2015) observed that with the effective application of technology, the project delivery could receive positive feedback and support from the society. This is mainly because the service can receive instructions from the main organisation and at the same time with the help of technology, the project delivery can ensure growth within the economy of Australia. This can help in maintaining an effective communication with the main organisation and at the same time ensures that the support from the society is received. Hence, the technological involvement can help in the development of the project delivery and assist to develop delivery service by predicting the future trends that can be used in the business.
The technical growth can help in the development of the construction project delivery and ensure that Australia remain one of the best technically developed country. As stated by He (2015) one of the considerations that need to be made is the fact that the technology can bring about development in the business organisations. People in the society need to be aware of the changes that exist in the market and the application of the technological aspects. The link between the society and the technology need to be maintained in this case as it is imperative that the technological changes be made in order to develop the people. Therefore, as stated by Hueske, Endrikat and Guenther (2015) the technological changes is one of the most important considerations that need to be made by construction projects so that delivery can be successful.
In this case, recommendations can be made that acknowledges the technological development in an organisation. As stated by Boasson and Wettestad (2016) technological development does not only help in making communication with the organisation but at the same time ensure that support from the community or society can be obtained. The construction project delivery sector can gain support from the society and contribute for the development of the society by communicating with potential clients outside the country. This can provide an excellent mode of marketing strategy so that the construction project delivery can help in the development of an economy.
Another useful contribution that can be made is the fact that the technological advancement can provide an understanding of the overall factors related with the development of an organisation. As stated by Hubbard, Rice and Galvin (2014) the technological influence in the society can help in improving problems related to environment as well. This is mainly because the development of sustainability can be made as the technology can provide a sense of relief in the long process of work undertaken. Therefore, it can be said that the technological influence is one of the most and influential factors that the construction project delivery need to consider for securing a proper future in terms of its development.
According to Modarres (2016), it is necessary to understand the legal rules and practices that are followed in a country before starting up an organisation or business. The reason to do so is that this can help in maintaining the legality of a business and at the same time assures that support from the society is received. In the case of Australia, the influence of the laws of the country is derived from the laws stated in the Commonwealth and Australian Capital Territory. Hence, any organisation that might decide to set up a business in the country need to understand the laws of Australia and identify any changes that exist between the laws of the country of its origin.
However, an advantage may be gained for those organisations originating from Australia. Therefore, it can be said that in order to continue business in Australia, the legal policies that can be related to the establishment of business, policies and rules while engaging in business activities need to be understood and considered (Kirlik 2018). In the case of the construction project delivery, it is necessary that several laws related to the construction sites be developed. Hence, a proper analysis can be made so that Australia can be made into a business dependent country by considering its legal impact on organisations and business.
As stated earlier the Commonwealth and Australian Capital Territory dictates the laws and rules of the country. Therefore, a link can be made between the current political scenarios of Australia with that of the established legal rules. Mazurenko, Hearld and Menachemi (2017) is of the opinion that it has been seen from the earlier discussions that the political condition is in a turmoil state and the fact that engaging in the purchase of land is made illegal can have a major force in the development of an organisation. The construction project delivery needs to be made based on the analysis of every law that exists in the market and at the same time provide an understanding of the business activities.
Hence, recommendations can be provided that can help in identifying the factors that result in maintaining the legality of business in Australia. Rastogi and Trivedi (2016) are of the opinion that currently the legal system in Australia is strict in terms of conducting business with foreign nations. Hence, the project delivery system needs to identify the legal activities that contribute for the development of business in the foreign environment. Another important consideration that needs to be made includes the environmental stability. It has been seen that the environmental stability in the country require importance as the sustainability is one of the most important aspect for the country. Therefore, as observed by Gilbert (2015) the legal laws in Australia provide an understanding of the factors that can be made while considering the establishment of an organisation. Hence, link and analysis of the environmental factor can also be conducted while analysing the set up of the project delivery in Australia.
The future of the legal laws also needs to be taken into consideration while conducting business. As stated by Medina Munro and Belanger (2017) the current strict legal laws of the country may become more compact mainly because of the strict rules around the world. Hence, Alden and Aran (2016) is of the opinion that Australian Government can pose restrictions while trying to identify the factors that help in the development and contribution of legal activities in the business environment. The construction project delivery need to ensure that the future of the construction industry are safe and that despite the application of modern technologies and increase of labour force, the legal system continue to exist and assist in the development of the delivery services.
The environmental influence is one of the most essential factors that are needed to be considered by a business organisation. According to Wheelen et al. (2017), the manner in which an environment can help in influencing the growth of an organisation is that it can help in the development of sustainability. As stated by Kuznetsova et al. (2017) sustainability is one of the most important aspects that are needed so that an organisation can develop and determine the factors responsible for the growth and development. In Australia, the environment is considered as one of the best in the world, and the people remain aware of the activities that are needed to protect any harmful effects in the environment. The picturesque environment that exists in Australia is considered as one of the best in the world and as stated by Herbet et al. (2014) is even considered as the reason behind the attraction of the tourists and business organisations.
Hence, for the development of the construction project delivery, the environmental aspects that exist in the country are needed to be considered. According to Xu (2015), this is mainly because of the fact that the implementation of the project delivery based on the construction of projects may prove harmful for the environment. With the status of the environment that exists in Australia, it can be said that this environmental factor may pose a serious threat for the development of the construction project delivery in the country. Hence, the environmental factor can be considered as an important aspect for the development and growth of the business as well as for the development of the construction project delivery (Zheng and Manoharan 2015).
Hence, recommendations can be provided that can help in identifying the factors that is necessary for the development of the environment and at the same time contribute for the development of the construction project delivery. As stated by Ingram et al. (2015) the development of the environment can be made by considering the harmful effects that may be involved in the analysis of the external factors. The link between the external environmental factors can be made by taking into consideration the effects that are involved in the development of a business. The construction project delivery needs to understand the environment so that while undertaking the construction projects it can help in maintaining the sustainability of the environment. Therefore, it can be said that the environmental factor need to be considered for understanding the link between the external environments within the country (Trainor et al. 2014).
Hence, it can be said that link between the external factors is prominent and it can be said that every factor is dependent upon the other. As stated by Gilpin (2016) the political and economic factors of Australia may provide restrictions in the development of the construction project delivery but on the other hand, support from the technological and social factors may help in its growth. At the same time, legal factors need to be considered that define the environment of the country and based on it the construction company can maintain its business in the competitive market.
Conclusion
Therefore, it can be concluded that the development of a business require proper analysis of the factors that help in identifying the external environment. The construction project delivery in Australia need to identify these actors based on the current scenario as well as the future scenario. The analysis show that risks in the environment exist and that mitigation tactics that are developed may not be enough to continue and meet the threats posed from the factors. The most important aspect that needs to be considered is the legal factors as it is seen that Australia is a country that maintain rules within its market. Hence, it can be said that in order to continue with the development of a business it is necessary to foresee the future and make recommendations based on the factors that can help in gaining a strategic business.
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