Executive summary This report was purposed to investigate into the statement that ‘Marketplaces are always volatile, none more so than the global or domestic construction marketplace in UK’ and how strategic management which provides various tools such as SWOT and STEP analysis models has come to help the enterprises that operate in the industry overcome the prevailing challenges not only at home but globally. This report has managed establish that indeed volatility in the construction and property market is a reality and it is there both at global and domestic markets.
Even, though competition and political interference have been cited as sources of some of the forces that affect the stability of the market, global recession and persistent financial crises is the major cause of the witnessed volatility. Further, the report has also found out that STEP and SWOT analysis have been very critical in analyzing the market by the enterprises in order to take various measures to counter any anticipated uncertainties. Finally, it has been found out that even though strategic is being used in this sector, there are some forces that are beyond organizational or industrial strategy and good example is the political interference.
For this reason therefore, it’s recommended that stakeholders partner to petition various government to enact legislations that prohibit interference by various politicians and governments. 1.0 Introduction Despite the continuous growth of the construction and property enterprise markets globally, stability of the market has been a major challenge for many of these businesses. Research has shown that a number of factors have played a major role in determining the direction and the survival of investors in this sector of the economy.
Irrespective of the economic status of a country, the development and expansion of construction and property enterprises has been of great significance. This is has been attributed to the role they play in terms of supporting and developing the process to avail and acquire property (Chea and Chew 2005). This sector is especially characterized by its dealings in developing and managing different constructions both from public and private sector view. The sector in more understandable terms is known to be a key player in infrastructure development of any given country.
Perhaps this is the reason as to why many governments have paid much attention to this industry. However, with globalization of the global market, it has absolutely very difficult to have stable markets. With globalization factors such as competition, global recession and political instability, have led to a situation where the market for these enterprises has become very volatile not in the United Kingdom but globally (Skaik 2009). It’s with this concern that strategic management in construction and property enterprises sector is becoming of great significance.
This is because strategic managed is believed to bear the solution to this market volatility. Strategic management is used to enable the enterprises operating in this sector to build their capacity in dealing with eventualities in the global market (Acar and Yazici 2006). This report is concerned with taking a critical view on the role of strategic management in dealing with market volatility in the construction and property market. This will allow for exploration on the various techniques that strategic management provides in dealing with market volatilities.
Important to note, this report make use the case of the United Kingdom to reflect on what is happening in the global market.