Description
Our paper about the strategic management of construction companies during recessionary cycles.
1
Navorsingsartikels • Research articles
Fanie Buys & Roelof van Rooyen
The strategic management of construction
companies during recessionary cycles
Peer reviewed and revised
Abstract
This article reports on the results from a study done on the strident economic times
in the construction industry following the FIFA Soccer World Cup – from August
2010 to December 2012. The research was conducted among Grade GB7, GB8
and GB9 main contractors in the Eastern Cape Province, South Africa, to identify
the key strategies that are able to keep construction entities in operation. The
study further investigated the key elements of a successful turnaround strategy,
as well as the most effective methods of implementing strategies in construction
organisations. A survey among twenty-two construction companies was
conducted, using a questionnaire in which a 5-point Likert scale was used to
assess the opinions of the respondents.
Results from the study showed that companies tendered on more than one type
of work (residential, commercial and/or industrial projects) during recessionary
times, whereas they usually tendered on one type of work only. It was also
noted that not only did the majority of the companies tender on different
types of work (residential/commercial/industrial) during the recessionary period
(2010-2012), but this was also found to be the most effective means of ‘keeping
their doors open’.
Construction industry companies are also advised that they should revise their
short-term strategic plans on a quarterly basis, while the long-term vision should
be assessed and adapted annually, whenever necessary.
Keywords: Strategic management, survival strategies, turnaround strategies
Abstrak
Hierdie artikel doen verslag oor resulte uit navorsing wat gedoen is oor swak
ekonomiese toestande in die konstruksienywerheid na afoop van die FIFA 2010
Sokker Wêreldbekerkompetisie tussen Augustus 2010 en Desember 2012. Die
navorsing is gedoen onder Graad GB7, GB8 en GB9 hoofkontrakteurs in die
Oos-Kaap, Suid Afrika, om die belangrikste strategieë om in moeilike tye staande
te bly, te identifseer. Die doel van die navorsing was ook om die sleutelelemente
van ’n omkeerstrategie te bepaal, asook die mees doeltreffende metodes om
dit te implementeer. ’n Opname deur middel van ’n vraelys aan twee-en-twintig
Prof. Fanie Buys, Department of Quantity Surveying, PO Box 77000, Nelson Mandela
Metropolitan University, Port Elizabeth, 6031, South Africa. Phone: 041 5042023, email:
Mr Roelof van Rooyen, Department of Quantity Surveying, PO Box 77000, Nelson Mandela
Metropolitan University, Port Elizabeth, 6031, South Africa. Phone: 041 5042669, email:
doc_579681693.pdf
Our paper about the strategic management of construction companies during recessionary cycles.
1
Navorsingsartikels • Research articles
Fanie Buys & Roelof van Rooyen
The strategic management of construction
companies during recessionary cycles
Peer reviewed and revised
Abstract
This article reports on the results from a study done on the strident economic times
in the construction industry following the FIFA Soccer World Cup – from August
2010 to December 2012. The research was conducted among Grade GB7, GB8
and GB9 main contractors in the Eastern Cape Province, South Africa, to identify
the key strategies that are able to keep construction entities in operation. The
study further investigated the key elements of a successful turnaround strategy,
as well as the most effective methods of implementing strategies in construction
organisations. A survey among twenty-two construction companies was
conducted, using a questionnaire in which a 5-point Likert scale was used to
assess the opinions of the respondents.
Results from the study showed that companies tendered on more than one type
of work (residential, commercial and/or industrial projects) during recessionary
times, whereas they usually tendered on one type of work only. It was also
noted that not only did the majority of the companies tender on different
types of work (residential/commercial/industrial) during the recessionary period
(2010-2012), but this was also found to be the most effective means of ‘keeping
their doors open’.
Construction industry companies are also advised that they should revise their
short-term strategic plans on a quarterly basis, while the long-term vision should
be assessed and adapted annually, whenever necessary.
Keywords: Strategic management, survival strategies, turnaround strategies
Abstrak
Hierdie artikel doen verslag oor resulte uit navorsing wat gedoen is oor swak
ekonomiese toestande in die konstruksienywerheid na afoop van die FIFA 2010
Sokker Wêreldbekerkompetisie tussen Augustus 2010 en Desember 2012. Die
navorsing is gedoen onder Graad GB7, GB8 en GB9 hoofkontrakteurs in die
Oos-Kaap, Suid Afrika, om die belangrikste strategieë om in moeilike tye staande
te bly, te identifseer. Die doel van die navorsing was ook om die sleutelelemente
van ’n omkeerstrategie te bepaal, asook die mees doeltreffende metodes om
dit te implementeer. ’n Opname deur middel van ’n vraelys aan twee-en-twintig
Prof. Fanie Buys, Department of Quantity Surveying, PO Box 77000, Nelson Mandela
Metropolitan University, Port Elizabeth, 6031, South Africa. Phone: 041 5042023, email:
Mr Roelof van Rooyen, Department of Quantity Surveying, PO Box 77000, Nelson Mandela
Metropolitan University, Port Elizabeth, 6031, South Africa. Phone: 041 5042669, email:
doc_579681693.pdf