Offer potential critical directing questions andspecific and constructive ideas for improving the analysis below.
For a company to know there competitors strengths and weaknesses and to also understand where they need to develop their skills and capabilities, it is important to analyse resources and capabilities of the competition in QGS's industry.
As Pitt, M., &Koufopoulos, D., (2012) states, an enterprise's resources and capabilities are key elements of effective strategies, and understanding those elements determines how the company adds value, or realizes where they need to upgrade or substitute what they have over time, but this can only happen when performance is measured and compared against. For QGS to understand it's competitors, a SCOT (Strengths, Capabilities, Opportunities and Threats) analyse is to be completed on QGS's main competitor in its industry, at this time the main competitor in a global sense is Hill International
Hill International is an international construction consulting firm, having offices worldwide and providing the skills and capabilities that QGS provides, however do Hill International have different skills and capabilities, what do they provide, are they QGS's competitor?
By understanding Hill International's skills and capabilities will provide QGS competitive knowledge and understanding to assist future potential within QGS, and as Schulz, W.C., III. (2012) refers, to understand and evaluate a competitor's potential, QGS needs to understand Hill International's competitiveness, which is defined as:
• Skills - The resources (people) that make a company good or bad
• Capabilities - Tangible assets (equipment, facilities etc.) that make a good company good or bad
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SKILLS
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CAPABILITIES
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Skilled, educated diverse staff
Experienced in construction
Trusted
Respected professionals spread across the world so can offer help and advice on all jobs
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Located in most countries - global presence
Make a commitment to every assignment/project undertaken
Great set up, IT, offices, easy to mobilise
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OPPORTUNITIES
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THREATS
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Brand Loyalty
Global Company with a global reputation
Offer Project Management Services and Claims Consultancy, not just one area
Use skills and capabilities to gain work
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New Boutique Consultancy with lower overheads - Cheaper prices
Complacency
Rely solely on brand and reputation, rather than work for new business
Large management structure
Large staff turnover, new staff not following process or procedure
Innovation? Rely on existing strengthsTable 1. SCOT Analyse (Hill International)
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Table 1. SCOT Analyse (Hill International)
Crittenden, V. L., & Crittenden, W., (2008) refers that for an organisation to confront their organizational (resources) weaknesses and overcome them for the weaknesses they have can become a capable organisation. Organisational weaknesses such as ineffective senior management team, poor vertical communication and inadequate leadership skills and development can affect an organisations value and damage objectives and performance.
This is evident in Pitt, M., &Koufopoulos, D., (2012), where value is created by creating an effective enterprise by deploying resources and capabilities for a single purpose, which is to create net external value and to enable this understanding competitors skills and capabilities and QGS's is the key.
To understand how a value can be created, and as referred by Pitt, M., &Koufopoulos, D., (2012), the following analyse is conducted to understand where the company is in the industry and where it needs to go or where the potential lies.
• Value-creating potential
o What value is created by the skills and capabilities in the organisation, and what extra could be done to provide the potential to create this value Rarity
o Are any skills and capabilities to achieve a value rare? Does demand outstrip who can do it or an item that needs to be produced.
Imitability
o What strengths does an enterprise have? Can the enterprise build solely on the strengths (skills/capabilities) that they have rather than rely on others or anything else?
Organisational appropriability
o How can an enterprise use and exploit the assets they have? To gain a value.
Substitutability
o If the enterprise doesn't have the skills and capabilities in place to achieve a value, can they be substituted, such as advanced technology?
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Each element can be rated on a four-point scale:
A = Outstanding generator of value and advantage - of genuine strategic significance
B = Valuable, but not a crucial source of advantage
C = Useful, but probably of declining significance
D = Already declining in significance and unlikely to be sustainable
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V
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R
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I
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O
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S
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Comments
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Skills
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1. Experienced and respected staff
2. Skilled and educated staff
3. Client satisfaction on staff
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A
A
A
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A
A
A
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A
A
A
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A
A
A
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C
C
C
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Educated, professional and respected staff is the number one factor in consultancy work, due to consultants working in clients office and providing a service
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V
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R
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I
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O
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S
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Comments
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Competencies & Capabilities
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1. Location - Global Offices
2. Provide PM Services
3. IT Technology
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B
B
B
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B
B
B
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B
B
B
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B
B
B
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C
C
C
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Location, services and IT are important and adds a value, however not as important as the skills of a consultant.
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V
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R
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I
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O
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S
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Comments
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Strategic Assets
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1. Strategic Partnerships
2. Strong in house leadership
3. Strong corporate culture
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B
B
B
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B
B
B
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B
B
B
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B
B
B
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C
C
C
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Strong in house assets, covering a large global area in partnering.
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Reeves, M., &Deimler, M., (July 2011) refers that even when environments are so unpredictable and organisations are overwhelmed with changes and differing information, managers cannot or are reluctant to pick up the right signals or even understand why they need to change or how to harness the change. Managers seem to stick to their one year or five year plan as that is the plan and they cannot deviate, however as we have explored above, and in previous chapters, it is imperative to understand your competitors and analysis your own weaknesses and strengths to align QGS's skills and capabilities to create a value.
References
Crittenden, V. L., & Crittenden, W., (2008) ‘Building a Capable Organization: The Eight Levers of Strategy Implementation', Business Horizons
https://www.hillintl.com
Pitt, M., &Koufopoulos, D., (2012), Essentials of Strategic Management, London: Sage
Reeves, M., &Deimler, M., (July 2011) ‘Adaptability: The New Competitive Advantage', Harvard Business Review
Schulz, W.C., III. (2012) ‘Towards a More Precise SWOT Analysis: SCOT Analysis & Competitive Potential', in Schulz, W. C., III., Using "Tools for Tracking Your Strategic Thoughts".