A proposed project is being procured through a Public – Private Partnership (PPP). In the PPP procurement process, two companies (the SPVs – special purpose vehicles) A and B with each having 0.5% chances of selection. The risks analysis document reveals that SPV ‘A’ has 0.4 risk of performance failure, whiles SPV ‘B’ has 0.3 risk of performance failure.

Using Decision Tree Analysis as as a project manager critically assess the options and advise on the best SPV to be chosen.

 

Question One

Hotbed Limited is trying to decide whether to sell up and build a new factory at a new site or rebuild its current facility. It has evaluated some of the costs and probabilities of its options, as well as some of the ‘what-if’ scenarios. It now wants to prepare a decision tree to assist with its decision making.

Prepare a decision tree to clarify the issues and present a recommendation.

Question Two

You are redesigning the company structure of an old established construction company to meet a growing need for project-based business. The business has to manage projects via project managers and teams allocated to each project. The business also has architects and structural engineers; purchasing staff for buying materials; pools of labour with specific skills such as brick laying, plumbing, etc.; and business development, sales/marketing, and finance departments. The company also has access to a large supply of subcontractors such as painters and electrical technicians.

Propose an efficient company structure that will be responsive to new growing demand for projects and discuss why you have chosen this structure.

GLOBAL ENGINEERING STRATEGY

CASE STUDY (Write 3,000 words)

Strategic management has been widely used by all enterprises to survive aggressive market competition. The strategic planning process is considered objective, logical, systematic approach for making major decisions in an organization (Breene et al. 2007, Brews et al., 2007). It allows effective decisions to be made under conditions of uncertainty. The strategic management process has three stages: strategy formulation, strategy implementation, and strategy evaluation (David, 1998). Strategy plan development is the first step and a vital element that companies should have to withstand fierce market competition and to improve its business performance.

A chemical household cleaning company located in Ghana has tried many different management methods during the last 4 years to improve its business performance.

Most manufacturing companies in the sub-saharan Africa are facing aggressive local, regional and international competition. Strategic management process equips the companies with set of capabilities that allow the companies to survive in such environment. Because of this, Ghanaian companies are forced to adopt strategic planning concepts. This will help set its vision, mission, and build strength. In addition, adopting strategic planning will help in resolving their weaknesses, exploiting opportunities, and avoiding threats. The chemical cleaning household industry is experiencing a very competitive era like many others, thus it is curial to find methods to reduce manufacturing costs, improve quality etc. Alaska Company for Chemical Industries started its operations in January 2018. It is located in the Industrial hub of the capital city of Accra. It specializes in the production of household cleaning chemicals such as dishwashing detergents, bleaching liquid, liquid laundry detergent, floor detergents, shampoo, body wash, and hairstyle gel. Currently, they supply their products to the local market.

The main objective of this strategic planning process is to develop a strategic plan for

the Alaska chemical cleaning household company. An effective strategic planning process

is achieved by developing an External Factor Evaluation Matrix (EFEM) and Internal Factor

Evaluation Matrix (IFEM) followed by a Strength Weakness Opportunity Threat (SWOT) and then finally a Quantitative Strategic Planning Matrix (QSPM) (Meredith et al., 2009). For

achieving the project’s objectives, the following methodologies were utilized and can be

summarized as follows; setting the mission and vision of the company, perform external

assessment, conduct Porter competitiveness Model, conduct Political-Economical-Social-

Technological (PESTLE) analysis, develop External Factor Evaluation Matrix (EFE), perform. Internal assessment and develop Threats-Opportunities-Weaknesses-Strengths Matrix (TOWS Matrix) and combine it with GSP. Finally, construct Quantitative Strategic Planning Matrix (QSPM) to evaluate possible strategies. Riston (2008) pointed out the benefits of external and internal analyses which can be summarized as follows;

• Increase managerial awareness of environmental change
• Improve resources allocation decision
• Facilitating risk management
• Acting as an early warning system
• Focusing attention on primary influences on strategic change

Company Information: The status of the company can be summarized as follows; The company has 24 employees, its market share is around 15% with average profit around 15.5%, it ranks 7 out of 20 among local competitors, it does not have strategic plan vision, mission statement, organization structure, or marketing techniques. It relies on labor –intensive manual processes, it does not have R&D activities, a moderate productivity is estimated with traditional inventory control, it has skilled labors with low turnover. The total sales of the company for the four years are presented in Table 1.

Table 1: Total sales and profit during the period 2010-2012

                                        2018 (GHC)  2019 (GHC)  2020(GHC)  2021 (GHC)
Sales                                1,891,840     1,920,785      2,040,896    1,906,725
Cost+ Expenses               1,601,443     1,603,856      1,722,517    1,611,183
Net Profit                         290,397        316,929        318,379       295,542
Net profit as % of sales   15.35%         16.5%           15.6%          15.5%

Within the global context critically assess the following major manufacturing decision categories and evaluate its impact on the manufacturing industry.

1. Facility (size, location and focus)
2. Capacity (amount, timing, type)
3. Vertical Integration and Partner management (direction, extent, interface, collaboration)
4. Production Technologies and Processese (equipment, automation,interconnectedness, scale, flexibility)
5. Workforce and Management (wage policies, security, skill levels)
6. Logistics and supply chain (logistics facilities and methods, inventory and policies, vendor coordination, production planning)
7. Organizational and incentives (structure, reporting levels, degree of centralization, role of staff, control and reward systems)
8. Business processes (interfaces and responsibilities, responsibilities, vendor development, monitoring and intervention