Beijing Urban Construction Company Strategic Management Research

As an important pillar of Chinese economy, construction industry is expected to maintain a good developing momentum in domestic construction market for a long time and thus offer an external environment for the growth of construction enterprises. However, with global economy integration and the development of politics, economy, society, science and technology, they have to face more and more intense competitions. Therefore, to the Fourth Construction Engineering Co., Ltd, Beijing Urban Construction Group, a national excellent construction enterprise, a pressing step to be taken is to identify external and internal environments and make effective management strategies to survive the drastic competition and grow stronger. For this purpose, this paper combines the theory and method of strategic management with industrial characteristics of construction enterprises to give an in-depth study on the development strategy of the Fourth Construction Engineering Co., Ltd. By analyzing the changes of its external industrial environment and its internal resources, this paper is intended to help position the enterprise's development strategy and provide references for other construction enterprises.This paper provides a systemic and detailed analysis of internal and external environments of the Fourth Construction Engineering Co., Ltd. using SWOT method, and identifies its internal advantages and disadvantages as well as external threats and opportunities. Though the analysis of industrial value chain this paper comes to the conclusion that construction companies face throat-cutting competition among themselves, and that the link the company is positioned at today is engineering construction, which represents the lowest profitability across the value chain. The development strategy of the company will be divided into real estate development, turnkey project contracting, professional constructing, labor company, property management company, etc. However, integration should be taken on as a strategy for further development. The Fourth Construction Engineering Co., Ltd boasts strong construction capability, advantage in brand and scale, good customer relation resources, and the ability of integrating external resources. These advantages, along with valuable opportunity of state-owned enterprise reorganization and private capital input, expand the possibility of integration. To develop, the company should bepositioned as a turn-key company upstream the value chain. It also needs to identify new economy increasing point with a focus on engineering construction, and supplementation of real estate development as a profit increasing point. We will shape strengths and cast the brand image in segmented markets, so as to transform the company into one of management and intelligence intensive type and featuring strong competitiveness and modernization.