Introduction Construction Company is incredibly profitable in the contemporary world. However it is very competitive and requires many resources in terms of capital and growth. The competition is also very high among the construction companies. The company requires sufficient information regarding the market trends so as to remain relevant in the industry. Constant research regarding the market trend is a must and may require a lot of resources. The business environment must be well understood at all times so as to make the right decisions (Wit, 2008) Good business strategies must also be developed so as to ensure that the business rows and it should be able to withstand rivalry and competition that exists in the market.
This will mainly require careful study of the market trends. The business strategies should also be good enough to avoid any mistakes during the implementation stage (Scott, 2007). The construction industry is very expensive if it is not well managed. This is mainly due to the high costs of building materials. It will therefore require good management practices to avoid any wastage that may lead to losses.
The paper will discuss in details both the internal and external factors that affect the development and growth of the business. The business environment will also be analyzed. The main company being focus in the paper is Hong Kong Construction Company based in China. Analysis of the Business EnvironmentThe business environment is quite competitive and various factors surround it. These factors affect the daily operations of the business. They include both the internal and the external factors. The external factors require a lot of efforts to deal with it while the internal factors can be manageable.
This is mainly because the external factors are beyond the control of the business and will require very good strategies so as to manage them. The internal factors are easy to deal with provided the management is committed to the process. If the company adopts the measures and strategies that encourage the growth of the business, then the company will be able to satisfy its customers and fulfill its major goals and objectives (Kim, 2005). External factors affecting the business environmentRivalry and competitionOver the past few years competition has intensified in the market due to entry of many other companies in the market.
This has seen the market share for the company educe which translates to reduced profits. The rivalry forces the company to change its strategies so as to remain relevant in the market. These strategies should be aimed at improving the quality of goods and services offered to its clients. This is mainly done for the sake of retaining the customers. If the clients are not satisfied with the services offered by the company, then they will easily seek services from a rival company (Mulcaster, 2009).
Strategies also need to be developed so as to increase the market share of the company. The company should intensify its advertisement strategies internationally so as to have other clients who will add value to the organizations. The company should also know the strategies that are being used y the rivals so as to compete with them without being beaten. Modern construction techniques should be adopted by the company so as increase the capacity of the company.
According to Slywotzky et al (1999), this will be important when it comes to competing with the rivals. The clients prefer the se of technological tools and equipment since it is quite accurate. The outcome of the work will also be improved when this tools and equipment are used. Most of the rival companies have not adopted these techniques ad it will therefore be beneficial to the company.