A Study On The Strategic Option And Development Planning Of Medium-sized Construction Enterprizes

And medium-sized construction enterprises play an important role in China’sconstruction industry, is an important part of the construction market. Medium-sizedenterprises advantage is capital demand, flexible operation, convenient transfer ofadvance and retreat, to adapt to rapid changes in the requirements of the constructionmarket. At the same time, medium-sized building enterprise also has some not easy tosolve in the development process, such as capital, project, technology, talent,development strategy and planning. Analysis of the problem, some medium-sizedconstruction enterprises lack strategic thinking and long-term development planning isone of the most important reasons.Based upon the researching of Qingdao A Construction Group, this paper studies thestrategic choice and development planning of medium sized construction enterprises,trying to explore the proper method and effective approach of construction enterprise’sstrategy choosing and development planning. Practical significance is to find somemedium-sized building enterprise development slow or even decline crux, capital,projects, technology, talent and other factors into a unified system, integration of all theseelements from the perspective of strategic management, optimization of medium sizedconstruction enterprise management and operation, and promote the development ofenterprise, the entrepreneurial team.Explaining how market and benefit serve as the two core elements of enterprisedevelopment strategy, the paper further utilized the SWOT analysis (Strength, Weakness,Opportunity and Threats) and took reference from Potter’s Model of Five CompetitiveForces to develop a suitable overall strategy for Qingdao A Construction Group. First ofall, the group needs to enhance both the pace and scope of its development, and become alarge-scale construction enterprise in3to5years. Secondly, it shall strengthen businessin all of its7sub-industries. Thirdly, to accelerate the development of markets in Philippine. Fourthly, to implement debt reduction, diversification in financing sources,and improvement of the corporation’s asset structure. Fifthly, to value science andtechnology, and to emphasize research and development in boosting enterpriseperformance. The paper further makes development plans for the enterprise based uponthe aforementioned5core strategies. In short term, the group should give play to itsadvantage in contracted business operations, to seize the opportunities derived from therecent construction peak in housing sector, industrial park development and cityinfrastructure sector, making the business boom facilitate its rapid growth. From the viewof medium term, the corporation needs to stably improve its contracted constructionbusiness, and to enhance its operations in its7sub-industries such as electrical andmechanical equipment installation, architectural decoration, urban landscape greening,highway engineering construction and so on. In terms of the long run, the company shallturn itself into an influential corporation in Qingdao’s construction industry, securing thetransition from a medium-sized construction enterprises to a large-scale company. Theplan detailed in specific measures as follow: in term of building the enterprise’s corecompetitiveness, the group shall enhance enterprise innovation, increase high-techcomponent, get more involvement in Qingdao’s significant construction programs andgovernment image projects, and in the same time reduce debts and increase investment.In the aspect of operational measures, it needs to expand domestic markets, improvemarket effectiveness, and to utilize benign radiation effect in overseas expansion, makingthe several breakthroughs in foreign market cover their adjacent areas respectively. Inbuilding enterprise culture, the group is encouraged to forge enterprising spirits, tocultivate common value, and to implement management concepts in its employees. Instrengthening financial management and financing ability, the scientific use ofinvestment funds, preparing for IPO, securing loan channels and cooperation withexternal investment organizations are all valued. At last, in terms of social repaying, theenterprise should improve quality of its construction programs, promote localemployment, and participate in social charity works.