Assignment #2 Strategic Management

1-Situational analysis 20 marks

Select a company product or service and conduct a full environmental scanning to determine either the situation is
favorable or unfavorable for this product/ service. The analysis should include the followings:
• SWOT analysis
• PESTEL analysis
• Market analysis
2-Startegies: 10 marks
For the same company that was used in first part of assignment 2 kindly mention the following items:

o Different types of objectives they use like financial, marketing and operational
o Corporate, business and functional strategies
o Key actions to actualize the strategies
o KPIs that were used to evaluate progress

Selected Company Details:

Company Name: National Construction Co. – SAMCO

Field: Construction

Product: Roads & Bridges

Market: EGYPT

1. Situational analysis
1.1 PEST Analysis:

 Political factors
1- Political environment in Egypt can be classified as tense and unstable. Some of the negative
factors are, for example, frequent changes in government composition
2- The government has set a policy statement which contains the following objectives:
 Government’s intention to implement national projects to limit the unemployment rate and
provide job opportunities for young people and improve the economic conditions of the
Egyptian people (Ex: The new administrative capital) The new administrative capital is one of
several mega-projects launched by Abdel Fattah Al-Sisi since he became president in 2014 in
an effort to reboot the economy and leave his mark on the most-populous Arab nation. Some
50 km east of the capital Cairo ،The new capital is supposed to be one of the solutions to the
chronic congestion of Cairo with a demographic burden of more than 20 million inhabitants.
The project is intended to offer thousands of jobs and stimulate the sluggish economy ،while
Egypt's government institutions are scheduled to move to the new capital within the second
half of 2019. The plan shows an expanse of high-rises and residential buildings. Foreign
embassies are also encouraged to relocate ،and businesses will be lured to a central business
district of 20 Chinese-built skyscrapers.
 New roads help reduce the traffic accidents in Egypt, which, according to a government
report in 2016, ranked 108th out of 185 countries in terms of annual number of road
accidents.
 Improving the traffic security on the roads, as well as separating the trucks and the private
cars in most of the roads, also reduced the number of accidents
 Egypt has prioritized transport infrastructure construction since President Abdel Fattah al-Sisi
announced the national roads project in August 2014 to build 4,400 km of new roads.
 Acceleration of construction of highways

 Economic factors
1- As reform momentum is sustained, economic activity is expected to improve and imbalances are
projected to narrow further. Real GDP is forecast to grow by 5% in FY18, and to increase
gradually to 5.8% by FY20. Growth is expected to be driven by resilient private consumption and
investment, in addition to a gradual pickup in exports (notably from tourism and gas).

The budget deficit is expected to narrow to 9.8% of GDP in FY18. This is slightly higher than
initially-budgeted, due to larger interest payments, higher international oil prices, and larger-than-
budgeted exchange rates. The fiscal consolidation program is expected to rely on revenue
mobilization, in particular the increase in VAT receipts, in addition to energy subsidy reforms. The
current account deficit is expected to narrow to 4.9% of GDP in FY18, from 6.6% of GDP in FY17.

2- Encouragingly, the government has upgraded its GDP growth estimate for the fiscal year 2017-18
from 4.8% to between 5.3% and 5.5%, and is projecting 6% growth for 2018-19, and targets a
 primary surplus in 2018/19 for the first time in more than 15 years. IMF financing with Suez Canal
and oil and gas revenues furthermore ensure the foreign currency reserves cover around five
months of imports

3- Population pressure is one of the key factors driving the national economic agenda. With an
extensive subsidy scheme and a large public sector in place, the country’s public finances have
become increasingly problematic in recent years. The current administration is attempting a broad
reform programme backed by a $12bn IMF loan that includes floating the currency and slashing
subsidies.

4- The devalued pound since it was floated has made Egypt cheaper and more attractive in that
respect, while simultaneously giving a lift to non-hydrocarbon exports. Moreover, the government
passed a new investment law in May 2017 offering incentives to attract foreign capital, and a new
bankruptcy protection law is currently working its way through parliament.

5- After the central bank's decision to float the currency, the pound devalued by 32.3 percent and
continued to lose value. The International Monetary Fund (IMF) required the devaluation of the
EGP as a condition for Egypt to receive a $12 billion loan. Before the float, a U.S. dollar was worth
8.8 Egyptian pounds
6- Egypt’s annual consumer price inflation declined to 12.2 percent in January 2019, compared to 17
percent in January 2018, state-statistics body said Sunday, Feb. 10.

 Socio-cultural factors
The construction sector has helped in providing around 3.7 million jobs, representing 20 percent of total
workers in the domestic market.

The sector is expected to achieve 12 percent growth in the upcoming fiscal year.
Planning Minister Saeed shed the light on the importance of the construction sector and its role in
boosting growth and providing jobs.

She also referred to the importance of human resources development, saying that President Abdel Fatah
al-Sisi directed that state employees get the needed training.

Accordingly, Saeed said that agreements have been signed with prominent training academies to provide
state employees with trainings in a bid to enhance the efficiency of the state’s administrative sector.

Egypt's unemployment rate dropped to 11.3 percent in the last quarter of 2017, in comparison to 12.4
percent during the same period in 2016, according to Central Agency for Public Mobilization and Statistics
(CAPMAS).

The construction sector is an important sector in Egypt, but workers in the field face low job security and
have no access to pensions as they are paid on a daily basis.
Addressing these problems, President Sisi has issued directions recently to provide social insurance to
daily laborers.
Official estimates show that the number of informal workers, including craftsmen, daily-hire workers and
self-employed, is 15 million.

 Technological factors
Technological progress is a powerful tool to improve company competitiveness. It can positively affect
productivity, product quality or decrease production costs.
SAMCO actively adheres to the use of the latest construction technologies in its projects, through its
agencies and sister companies

Agencies Product

1 OVM post tension and other construction techniques

2 Tensar Manufactures geosynthetic products
3 Chemcrete Green Technology products
4 Maestria Roads Signage
5 Pyungsan Design & Manufacture Corrugated Steer Sheet Structures

Sister Companies Product

1 Hanotex Elastomeric bearings & expansion joints

2 Geotech Soil reinforcement
3 Beta Agent & Distributer of industrial and speciality Chemicals

1.2 SWOT Analysis

 STRENGTHS WEAKNESSES
1. Technological know-how
1. High turnover rates in Blue
2. Qualified Personnel (especially
Collar levels
engineers)
3. Respected name & position within 2. Reliance on the governmental
Projects which represents the
industry
largest proportion of the current
INTERNAL

4. Quality of construction
projects
5. Subcontractor relationship
6. Authorities for managers which makes 3. Cash Flow deficiency (due to
delay of payments from the
decision cycle faster
government side)
7. Integration Backward in construction
Raw Materials (Like Ready-mix Concrete, 4. Increased Overheads
Asphalt, Stones)

OPPORTUNITIES THREATS
1. Few competitors in the bridges and roads 1. Lack of qualified workforce
EXTERNAL

sector especially blue collars

2. New business opportunities in SUDAN 2. Rising Material Costs
3. New opportunities in the private sector (ex: 3. Legislations changes
New Capital City)
4. Political instability
4. New Governmental investments in roads &
Bridges

Based on SWOT Analysis it is recommended that the company opts for a MIN-MAX Strategy
(Minimizing weaknesses and taking advantage of Opportunities)

The Company has to focus on its key Segments where it has an essential expertise, Know-how and
experience.

1.3 Market Analysis:

The construction sector in Egypt is experiencing the best of times and the worst of times. On the one
hand, the government has placed the sector at the heart of its economic agenda, ensuring that there will
be plenty of contracts available in the foreseeable future. On the other hand, efforts to reform the
economy through the removal of fuel subsidies and the flotation of the Egyptian pound have led to
soaring costs and short-term pain for contractors. As such, many firms in the industry are simultaneously
faced with the prospect of a massive pipeline of work – and the prospect of bankruptcy.

General Performance

Construction remains one of the most important contributors to the domestic economy. In 2016 the
sector’s output increased by 10.3%, a significant uptick after growing at an average of 5.3% in the
preceding four years. This growth trend has largely been maintained into 2017, growing at a rate of 7.3%
in the first nine months of FY 2016/17. This puts sector growth behind only tourism and communications.
In the same period, construction also accounted for the highest share of implemented investments in the
country. Of the LE391.7bn ($25.8bn) invested in the first three quarters of FY 2016/17, 18.5% was
directed towards construction activities.

Beyond its recent performance, the sector also holds significant strategic value for policymakers,
absorbing as much as 40% of the irregular and informal labour in the country. However, the availability of
skilled workers is a challenge. “Egyptian contractors face a structural lack of qualified human resources,
due in part to the outflow of local builders to the Gulf Cooperation Council markets,” Mohamed Ibrahim
Mahlab, president and CEO of Rowad Modern Engineers, told OBG. “However, this exportation of labour
will also open the country to greater foreign currency flows.” It is perhaps unsurprising, therefore, that
the industry is at the forefront of plans to revitalise the economy. The sector is bucking the trend that is
affecting its counterparts across the Middle East: while a sustained drop in the price of oil has led to a
retrenchment in public and private spending on construction in many parts of the region, Egypt continues
to build. “Generally speaking, construction is moving ahead. It shows no signs of stopping,” Sherif
Sweillam, director of business development at Gleeds, told OBG.

Indeed, a large part of the government’s growth strategy in the wake of the post-revolution turmoil
revolves around heavy spending on new projects, from the New Administrative Capital to the Suez Canal
Economic Development Zone. This government-led stimulus has benefits beyond the potential to boost
economic growth: many mooted projects will fulfil a real need within the country, from mitigating the
massive housing deficit to improving the domestic transport network.

Demand & Pipeline

As this suggests, there are significant demand drivers for continued construction expenditure. With an
estimated 98m inhabitants and an annual growth rate of 2.45%, the population will soon be over 100m.
Urban areas are under particular strain, causing significant construction investment. As of early 2018 just
over 43% of the population lives in urban areas, but this is growing at 1.8% each year and is likely to be
further boosted by plans for new cities. Existing urban areas are feeling the strain from this trend. The
capital, Cairo, has nearly 19m residents, while Alexandria, the country’s second-largest city, is
approaching 5m. With such growth, there is substantial demand for housing. Top-end estimates suggest
that the country has a housing deficit of 3m, with annual demand for an additional 350,000-500,000 units.

Furthermore, it is not only the need for housing that will provide a source of projects and contracts. The
same population pressure that has created high housing requirements has also placed a burden on a wide
variety of national and local infrastructure. For example, there are $117.4bn worth of power projects in
the Egyptian construction pipeline and $57.4bn worth of transport projects. In total, the country has a
projects market worth $395.7bn. Construction, narrowly defined as excluding the aforementioned
infrastructure areas, takes the largest share of deal values, with $129bn worth of projects. Given all these
demand drivers, it is perhaps unsurprising that the Egyptian market is forecast to remain on an upward
curve for some time to come. According to a forecast by Timetric, a business information service, the
sector was expected to grow at a compound annual rate of 8.03% between 2017 and 2021.

Spending

As such, and despite a 23% decline in the value of contract awards in 2016, Egypt is the third-largest
market in the MENA region for project awards, after Saudi Arabia and the UAE. Indeed, on a variety of
metrics the domestic construction market is one of the top performers in the wider region. According to a
report released by HSBC in the first quarter of 2017, Egypt is home to the most prosperous construction
market in the MENA region, not least because the market was set to witness a 95% increase in cash-led
construction spending in 2017. This contrasts sharply with Saudi Arabia, which is a larger market but was
expected to experience a 15% dip in spending over that same period.

A substantial portion of the domestic construction drive is spurred by government spending. In FY

2015/16 public spending on building and construction increased by 16.3%, reaching LE23.9bn ($1.57bn),
according to the Central Agency for Public Mobilisation and Statistics (CAPMAS). The largest share of
spending was on road, bridge and tunnel projects, with implemented projects reaching a value of LE8.7bn
($573m), a 12.3% increase on the previous year. Sewage and water projects accounted for a further
LE4.9bn ($323m) and LE3.3bn ($217m), respectively, while the value of implemented residential building
projects hit LE2.5bn ($165m), an increase of 5.7% on FY 2014/15. This continued into FY 2016/17, with
budgetary spending on housing increasing by 276% during this fiscal period. Other segments also saw a
jump in spending, with electricity projects increasing by 45%, water by 44%, sanitation by 21%, and
transport by 10%.

Risks & Delays

While heavy spending is good news for the sector, it is not without its risks. Indeed, although
improvements have been made as the government embarks on an IMF-backed reform programme, the
country is still running a sizeable budget deficit. At the end of the last fiscal year in June 2017, the deficit
fell to 10.9% of GDP, down from 12.5% the year before. The primary deficit, which excludes interest
payments, fell to 1.8% of GDP, down from 3.5% in June 2016. Although the deficit has been improving on
the back of revenue growth of 28% and a significant reduction in recurring expenditure, including a range
of subsidy programmes and public sector wages, the administration, under President Abdel Fattah El Sisi,
will continue to be constrained by interest payments.

Indeed, funding arrangements have already proven a sticking point in one of the government’s flagship
construction projects. Plans for the New Administrative Capital outside of Cairo have shifted several times
as a result of complications over the funding and pricing of construction. The $45bn project was first
announced in 2015 with plans for Emaar Properties, a UAE-based real estate firm, to be the lead
developer. However, the parties could not reach an agreement over financing and the government then
turned to the China Fortune Land Development and the China State Construction Engineering Company
(CSCEC). As part of these negotiations, CSCEC secured a $3bn loan in September 2016.

In February 2017 this agreement fell apart over proposed costs for the project, and the Egyptian Ministry
of Housing, Utilities and Urban Development announced that the new capital will be built by local citizens.
“No agreement that satisfies both parties in terms of price per sq metre was reached,” Ayman Ismail,
chairman of the government-owned company charged with developing the new city, told Reuters.
Despite difficulties, CSCEC will ultimately be building part of the new city. This is not the first time that
funding and rising costs have challenged a large-scale, government-backed project: in 2014 UAE builder
Arabtec signed a $40bn deal to build 1m homes in Egypt, but the deal fell apart as disagreements arose
over the actual scope of the project.

As such, the attitude of construction firms and international investors towards many of these flagship
government projects is one of caution. David Lee, an infrastructure analyst told The National, a UAE-
based newspaper, that “extensive government control of and intervention in the Egyptian economy
leaves the delivery of projects exposed to abrupt policy changes, and fails to align with the long-term
clarity required by international investors looking to commit capital over a multi-year time horizon.”

Project Areas

These sources of funding, which often have a strategic motive and are offered on favorable terms, should
provide some reassurance to contractors and construction firms that the steady flow of capital running to
the industry is not going to dry up any time soon. Although there are concerns over the funding and
execution of some large-scale projects, the pipeline is so large that there will be plenty on offer even if
some plans are reduced in scope or cancelled. “Construction in Egypt is expected to boom, thanks to the
upcoming development of big government-related projects, such as the new capital city,” Ismail Shaker,
CEO of the Saudi Arabian firm Shaker Group, told OBG.

The government’s plans for city and home building alone should provide a steady diet of contracts to
many local firms. The New Urban Communities Authority (NUCA), a newly established government body
tasked with overseeing the development of Egypt’s new cities, has already started work on LE37bn
($2.44bn) worth of projects, including developments in Al Alamein City, Assiut Hill, the New
Administrative Capital and West Qena. Indeed, despite funding problems, the New Administrative Capital
is still under piecemeal construction. There are 11 Egyptian contractors working at the site, including
national heavyweights Orascom Construction and Arab Contractors. NUCA is overseeing the completion
of 17,000 units at the new site. Moreover, Madbouly confirmed to a local construction conference in
March 2017, Bonat Misr, that there are more than LE1trn ($65.9bn) worth of projects scheduled for
completion in the lead-up to 2022.

The private sector is optimistic about several areas in the country. In addition to New Administrative
Capital and new Al Alamein, it sees considerable potential at New Cairo and Sixth of October. Real estate
developers are anticipating growth of 7-8% in 2018, with much activity driven by investors seeking to
profit from the high demand for housing units.

High-end developers have been especially active, noting that the revaluation of the currency has helped.
Egyptians with dollar savings now have more local buying power, while domestic prices are considered
relatively low on an international scale.

Transport Infrastructure

Beyond housing and city building, there is also a concerted push to improve transport infrastructure in
the country. At the aforementioned March conference, Hesham Arafat, the minister of transport,
announced that the government seeks “to develop at least 180 km of metro lines to accommodate 7m
passengers”. Indeed, the government has made urban transport – incorporating metro, light rail and river
transport – a key priority of Vision 2030, the government’s long-term planning document. A new light rail
system has received the most attention. The discussions with Chinese companies over the execution of
this project include plans for 66 km of track with 11 station stops. The network will connect the New
Administrative Capital with Cairo’s outer suburbs, including Al Salam City, Ramadan 10 City, Shorouk City
and Badr City. It will be linked to the third line of the capital’s metro network at Al Salam City. In July 2017
President El Sisi called for this light rail initiative to be completed within two years, although details over
cost and execution have not been finalized.

China Railway Group reported that work was commencing on the $1.24bn project at the end of 2017.
Daily capacity is estimated to be 340,000 passengers, and the system is expected to reduce traffic in
targeted areas by approximately 30%. Egypt is also planning to develop a number of high-speed rail lines.
Total investment is reported at €13bn. A Cairo to Luxor line will run 700 km and cost an estimated €6bn. A
Luxor to Hurghada line will run 300 km and cost an estimated €4bn, while an Alexandria to Cairo line will
run 210 km and cost an estimated €3bn.

Arafat has outlined a number of other projects on the boards. These include a 34-km underground rail
running from Imbaba to the airport, with a total investment of €934m, a passenger and freight line
running from Mansoura to Damietta and a freight line from Abu Tartur to Safaga.

Road & Air Projects

In addition to urban transport schemes, the Ministry of Transport is focusing on road improvements and
expansions. Since 2015 the country’s road network has been expanded by over 23% – more than 5000 km
– with most focusing on major highways and transport corridors.

Between 2014 and 2017 the country invested an estimated LE22.5bn ($1.48bn) into roads and bridges,
including 10 new roads and work on 2000 km of existing roads, according to a published statement from
the Ministry of Transport released in early 2018. Four interchange hubs crossing the Nile were completed
at the cost of LE1.9bn ($125m), while investment in bridges came to LE2.1bn ($138m). It was also noted
that the national roads project would involve the investment of LE16bn ($1.05bn). At the time of the
statement’s release, the country was in the midst of upgrading 2500 km of roads, at a total investment of
LE7bn ($461m), and constructing eight more interchange hubs (LE8.5bn, $560m), and 10 bridges
(LE1.4bn, $92.2m) .

Investment continues, with the Ministry of Transport overseeing a number of further road expansion and
improvement projects, including the Suez Road expansion, the development of the Shubra Road and the
Regional Ring Road. Arafat said at the Bonat Misr conference, “The country is on track in regards to
implementation; however, obstacles that delay national roads projects include the time consumed by
state in providing landowners ownership rights before they give up their agriculture lands to the state for
road development.”

Airports remain a priority for the country, and while major projects have taken some time, progress
continues. Sphinx International Airport is planned to open in the summer of 2018. The project, which cost
an estimated LE300m ($19.8m), is located in Giza, allowing for easy access to the major sites nearby.
Katameya International Airport, which is located in New Cairo and will serve the New Administrative
Capital, has also been inaugurated.

COST FACTORS: The investment environment is likely to improve further from government reforms and
an investment law that includes tax incentives for private investment, the re-establishment of private
sector free zones and subsidies for industrial land acquisition. This should ensure that construction
projects continue to be brought to market.

However, government policy has not been completely good news for the industry. Indeed, there have
been significant cost factors affecting the sector, including the devaluation of the Egyptian pound, the
new value-added tax (VAT) law and reductions in the fuel subsidy rate (see analysis).

Although headline problems perhaps give the impression of turmoil, the general outlook for the sector is
extremely positive The currency float in November 2016 created significant inflationary pressure on basic
building materials too. The Egyptian pound fell from its pegged rate of LE8.8:$1 and began to stabilise
around LE18:$1 in the first quarter of 2017. As a result, inflation began to increase, reaching 28.1% by
January 2017. In the same month, the price of certain steel and cement prices had increased by almost
100%. This has been compounded by various other factors. Cement prices have also been affected by the
introduction of VAT. A decision to increase VAT from 13% to 14% in June 2017 led to a jump in prices.
Abdul Aziz Qassim, secretary of the Building Materials Division at the General Union of the Egyptian
Chambers of Commerce, told Al Shaab newspaper in June 2017 that dealers had already been notified
that there would be a new increase in cement prices at the start of July as a result of the increase in VAT.
Prices were forecast to break LE800 ($52.70) per ton.

Building Materials

The reduction in fuel subsidies has also impacted the building materials sector. In June 2017 the
government announced fuel price increases of as much as 50%, the second increase since the currency
flotation in November 2016. Under the latest round of subsidy removal, fuel prices for the cement
industry were set to increase by 40%, reaching LE3500 ($231) per ton. These price pressures have a
detrimental effect on contracting firms, squeezing margins and leading to the bankruptcy and closure of
many smaller firms. The government has tried to address this issue by introducing a compensation law in
June 2017. Under the new regulation, contractors can seek redress and compensation for cost increases
and losses on public contracts stemming from government legislation introduced between March and
December 2016. As such, contractors should be able to ease their cash flow difficulties that have arisen as
a result of the government’s reform agenda.

Outlook

While the legislation will offer some respite, 2017 was a difficult year for many contractors. Unexpected
input cost increases and uncertainty around price risk management has left some firms vulnerable and
required government intervention to provide insurance against mass bankruptcies.

Although these headline problems perhaps give the impression of turmoil, the general outlook for the
sector is extremely positive. There is strong impetus for investment in construction projects, as the
government looks to boost the economy and improve living conditions and infrastructure reliability across
the country. Indeed, in terms of project values – both under way and in the pipeline – Egypt has emerged
as one of the hottest markets in the MENA region. Although not every project, whatever its size, will see
the light of day, there are enough contracts across a range of segments to make up for any delays and
cancellations. Therefore, as the government’s reform agenda beds in, the currency stabilizes, and
inflation subsides, the Egyptian market will become an attractive proposition for both domestic and
international construction firms.

Porter’s Five Forces Analysis

Competitive Rivalry: Weak

 Market are Dominated by Few Roads and Bridges Construction Companies (Oligopolistic nature
power with few major players)
 Construction companies are mostly involved in submitting competitive tenders to win contracts
  Construction products are very similar and are delivered by means of projects with variation
amongst retail, residential and leisure.

Threats of New Entrants: Weak

 Entrance are very Difficult when it comes to roads and bridges sector, Roads & Construction needs
a very large investment and experience in Equipment and strong work history to win projects in
Roads & Bridges from Government and Military.
 Customers are not very loyal, the lowest bid always wins in the residential/building contracting
 Low switching costs as new projects means new consultants, contractors and suppliers
 Capital requirements for property development are high
 The construction industry is highly risky and filled with uncertainty
 Access to inputs such as skilled labour is difficult

Threats of Substitutes: Strong

 New and emerging innovative methods and processes within construction industry.
 New innovative methods are at a lower cost than traditional methods
 Low switching costs once a project is complete, new consultants may be appointed

Suppliers Bargaining Power: Weak

 Industry members such as the principal contractors’ are integrating backwards into the business of
suppliers
 Construction materials are readily available from many suppliers
 Switching costs of contractors Q.S firms are low
 Contractors, sub-contractors and manufacturers have to work together for successful delivery of
the project

Buyers Bargaining Power: Strong

 Construction developers have a high quality of information for decision making

 There are few developers and construction clients compared to the many service providers
available to deliver project
 Developers and clients have the ability to postpone projects until a later stage when they can
secure lower costs of building

The Overall Industry attractiveness is Very High. The Collective impacts of the five competitive forces
will result in high profitability of the industry participants. The Rivalry amongst competitors is very low.
The Entry barriers are very high and will not allow new rivals to gain a market foothold. There is no
intense Competition from Substitutes due to the high differentiation of the product especially of Roads
& Bridges; Buyers are able to exercise considerable bargaining leverage.
 Competitive Advantage:

SAMCO has been able to integrate backward that will allow the company to obtain their
raw materials (Ready-mix, Asphalt and stones) at a very low price, this allows the
company to under bid its rivals and achieve a low cost leadership role.

2. Strategies

Goals & Objectives, Strategies & KPIs

Type of
Objectives Action/Strategy KPI
Objective
1- Seeking Loans 1- cash flow sufficiency
2- New Projects 2- Availability of funds for
Objective

To obtain additional
Financial

3- Planning on basing dividends payouts business Growth

funding to fuel
on overall performance and health of the 3- Revenues from new projects
continued expansion
company and may decide to retain such 4- % of realization of cost-
& Solve Cash Flow earnings for future growth reduction targets
Deficiency 4- Decrease Overheads by moving to low- 5- % of return on Capital
cost operations model Employed
1- by establishing branches in Sudan as
requested from current customers
1-Business Development Plan
2- Participate in international construction
2- # of exhibitions/events
Become active in the Exhibition/events
participated in and the
Marketing Objective

international 3- Local/International Construction

Feedback from the clients
construction scene Magazines and Brochures and Catalogs
survey
4- Increase general awareness of our
company and its outstanding track record
both locally and internationally
1- Market Development (Taking
Advantage of new business
opportunities Globally)
2- Product Development (Enter the field
Expand in new 1- # of new markets entered
of residential/buildings construction)
markets to improve 2-# of new projects wined in
3- Market Penetration (Taking advantage
profit margins buildings contracting
of new governmental investments in
Roads/Construction Sector)
4- Develop a list of possible new market
areas
Objec
ation
Oper

1- Conduct a survey to find the reason of

tive

Decrease Turnover
al

the turnover Rate of Turnover

rates of Blue Collars 2- Increase of retention programs
 1- Maintain close partnership with Egypt's
Technical universities
Invest in Career
2- Establishing relations with Various # of attracted calibers through
Development
educational institutes this programs
Programs 3- Introduction of Special Trainee
Programs

To become registered
as class “A” in Significantly expand into the commercial,
turnkey construction residential/building contracting market to # of new projects in
from the Egyptian improve profit margins and increase local commercial, residential/
Federation for market share building contracting
Construction & At least 2 projects yearly
Building