1. CE 726 STRATEGIC MANAGEMENT OF CONSTRUCTION COMPANIES INTRODUCTION 10 TH FEBRUARY, 2006 BY Assoc. Prof. Dr.Irem Dikmen Toker

2. CONTENTSCONTENTS WeeksMain topics 1 2 3 4 5 6 7-8 9 10-13 14 Introduction to concept of strategy: General outline of the course Introduction to strategic management: Definitions of strategy, strategic planning, strategic management framework, competitive advantage etc. Strategic Positioning – Part 1: The environment – Porter’s 5-forces model Strategic Positioning – Part 2: Strategic Capability – Porter’s value chain analysis Strategic Choice: Generic strategies, market strategies/diversification SWOT workshop Internationalisation: Porter’s diamond framework, Dunnings eclectic paradigm, reverse knowledge transfer theory Strategic planning: Organising for strategy Strategic decision making: Decision support tools for strategic decision- making Presentation of term projects and class discussions. Strategic integration - Overall evaluation of presentations and discussion on integrated management activities within construction companies

3. PRODUCT OR SERVICE COMPETITOR MARKET / TARGET STRATEGY IS ABOUT HOW YOU HIT THE BALL ! ORGANISATION WEEK 1

4. PROJECT LEVEL WEEK 1

5. WEEK 2

6. WEEK 3

7. WEEK 4

8. WEEK 5 HOW TO COMPETE WHERE TO COMPETE

9. WEEK 5

10. A SWOT example: OpportunitiesThreats StrengthsDamaged houses New regulations Tourism Geotechnical eng. ShrinkagePoliticalCompetition Technical capability+0++00+ Experienced staff++++00+ Client relations++0+++0 Good company image+++++0+ Cost advantage due to size +0+++0+ Weaknesses Focus on excavation works ---+-0- Low financial power-----0- Poor planning-----0- Low managerial capability -----0- Lack of political contacts 0--0--0 WEEK 6

11. Firm structure, strategy and rivalry Demand conditions Factor conditions Related and supporting industries Determinant? Chance Government Variable? Shape of the layer =? Relations (arrows) =? Number of layers =? PORTER’S DIAMOND MODEL AND ITS VARIATIONS WEEK 7

12. WEEK 8

13. STRATEGIC DECISION MAKING MULTI CRITERIA DECISION MAKING TOOLS (ANALYTIC HIERARCHY PROCESS) ARTIFICIAL INTELLIGENCE TOOLS (CASE-BASED REASONING, NEURAL NETWORKS AND EXPERT SYSTEMS) SOFTWARES WEEK 9

14. TERM PROJECT TOPICS “MARKETING” AS A VALUE ADDING ACTIVITY IN CONSTRUCTION “INNOVATION” AS A SOURCE OF COMPETITIVE ADVANTAGE IN CONSTRUCTION “CHANGE MANAGEMENT” AS A VALUE ADDING ACTIVITY IN CONSTRUCTION “KNOWLEDGE MANAGEMENT” AS A VALUE ADDING ACTIVITY IN CONSTRUCTION “IT” AS A STRATEGIC RESOURCE “PERFORMANCE MEASUREMENT” TO ASSESS STRATEGIC CAPABILITY “ORGANIZATIONAL EVOLUTION” AS THE THOERATICAL BACKGROUND OF STRATEGTIC MANAGEMENT WEEK 10-13