Description
SWOT ANALYSIS OF BALFOUR BEATTY

Balfour Beatty

Parent Company

Balfour Beatty

Category

Construction Services

Sector

Real Estate and Construction

Tagline/ Slogan

Providing the assets that societies need to function, develop and thrive

USP

Global knowledge across the infrastructure lifecycle

STP

Segment

Real estate and construction services

Infrastructure investments, professional services, construction services, support services Target Group US and UK are major target markets

Positioned as a company that strives to provide world class Positioning infrastructure services across the infrastructure lifecycle

SWOT Analysis

1. Well diversified business across geographies and markets – In uncertain times, diversity is the strength. Breadth of diversity across geographies and markets provides balance and resilience to counter the economic uncertainties that remain in some of its markets. 2. Ability to provide integrated business solutions - will increase the company's revenue and hence profitability 3. Successful implementation of cost efficiency programme - resulted in savings. Successful implementation of cost efficiency programme results in great savings for the company and helps it improve its margins. Strength 4. Over 50,000 people are a part of the company

1. Given, the company’s declining debt servicing capabilities it could face tough conditions for refinancing its debt. 2. Deficit in pension funds increases liability - Balfour Beatty's pension liabilities may impair its liquidity and place the company at a competitive disadvantage compared to some of its competitors who do not have such liabilities and cash requirements. Deficit in pension funds Weakness may increase the company’s liability.

3. Excessive dependence on the UK and US markets is a concern

1. Infrastructure business offers outstanding opportunities in emerging economies 2. Positive trend of power sector - The global power generation industry grew by a substantial amount, this could benefit the company’s success. 3. Acquisition of smaller firms can enhance the company's image and Opportunity position

1. Regulatory pressures - Companies such as Balfour Beatty engage in construction activities and are exposed to high level of safety and security regulation by the government. Regulatory pressures may pose a threat of depressing future prospects. 2. Intense competition - would increase the operational risk for the Threats company and will pressurize its operating margins

Competition

1. Bechtel Group 2. Fluor Corporation 3. URS Corporation 4. Carillion 5. Costain Group 6. Interserve 7. Kier Group 8. Keller Group Competitors 9. North Midland Construction



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