HAWASSA UNIVERSITY

INSTITUTE OF TECHNOLOGY

FACULITY OF CIVIL ENGINEERING AND BUILT ENVIONMENT

DEPARTMENT OF CONSTRUCTION TECNOLOGY AND

MANAGEMENT

STRTATEGIC MANAGEMENT

INDIVIDUAL ASSIGNMNET

NAME: YOHANNES TAMRAT

ID: 1842/10

SEC 2

SUBMITTED TO: ASRAT M

SUBMISSION DATE: MAY 7/2019

CONTENTS
PART ONE:-
1. CONCEPT OF STRATEGIC MANAGMENET
1.1 WHAT IS MANAGEMENT

1.2 INTRODUCTION/DEFINITION/MEANING OF STRATEGIC MANAGEMENT

1.3 CONCEPTS OF STRATEGIC MANAGEMENT

2. Strategic issues in construction industries

3. Strategic planning process for construction companies
4. Factors that affect the efficiency of strategic plan

Part two:-case study

1. Visit and prepare report for construction projects with their specific profile that are
under construction in Hawassa.
2. Make assessments on the type of construction companies currently executing
construction projects in Hawaasa.
3. Asses the practice of strategic management by local construction companies in
Hawassa
1. CONCEPTS OF SRATEGIC MANAGEMENT

1.1 WHAT IS MANAGEMNET?

MEANING OF MANAGEMENT?
 It refers to a group of people who are responsible for guiding and controlling the
organization (managerial personnel).
 Management is the process of running an organization (planning, organizing, staffing,
directing, and controlling).
 Management is a body of knowledge, a discipline.
 Management is a factor of production; economic resources as land, labor, and capital.

DEFINITION OF MANAGEMENT
 It is the art of knowing what you want to do In the best and cheapest way.
 It is the art of getting thing done through and with people in a formally organized group.
 It is the process of planning, organizing, staffing, directing and controlling the use of a
firm’s resources to effectively and economically attain its objectives.
 It is the art securing maximum results with a minimum of efforts so as to secure
maximum prosperity and happiness for both the employer and employee and give the
public the best possible service.

CHARACTERSTICS OF MANAGEMENT

 Goal oriented
 Universal
 A continuous process
 Working with and through people
 Multi-Disciplinary
 Decision making
 Not absolute principles

1.
 1.2 INTRODUCTUON/DEFINITION AND MEANING OF
STRATEGIC MANAGMENT

1.2.1 INTRODUCTON
Strategic management is all about identification and description of the strategies that
managers can carry so as to achieve better performance and a competitive advantage
for their organization .An organization is said to have competitive advantage if its
profitability is higher than the average profitability for all companies in its industry.

Strategic management is nothing but planning for both predictable as well as

unfeasible contingencies. It is applicable to both small as well as large organizations as
even the smallest organization face competition and, by formulating and implementing
appropriate strategies, they can attain sustainable competitive advantage.

It is a way in which strategists set the objectives and proceed about attaining them. It
deals with making ad implementing decisions about future direction of an organization.
It helps us to identify the direction in which an organization is moving.

Strategic management gives a broader perspective to the employees of an

organization and they can better understand he their job fits into the entire
organizational plan and how it is co-related to other organizational members. It is
nothing but the art of managing employees in a manner which maximizes the ability of
achieving business objectives.

1.2.2 MEANING AND DEFNITION OF MANAGMENET

Strategic management is defined as the art and science of formulating implementing, and
evaluating cross-functional decisions that enable the organization to achieve its objectives.
Generally, strategic management is not only related to a single specialization but covers cross-
functional or overall organization. Strategic management is a comprehensive area that covers
almost all the functional areas of the organization. It is an umbrella concept of management
that comprises all such functional areas as marketing, finance and account, human resource,
and production and operation into a top level management discipline.

2.
 Strategic management deals with organizational level and top level issues whereas
functional or operational level management deals with the specific area of the business.
 Strategic management relates to setting vision, mission, objectives, and strategies that
can e the guideline o design functional strategies in other functional areas.
 Strategic management is the set of managerial decisions and action that determine the
long-run performance of a corporation. It includes environmental scanning (both
external and internal), strategy formulation (strategic or long range planning), strategy
implementation, and evaluation and control. The study of strategic management
therefore emphasizes the monitoring and evaluating of eternal opportunities and
threats in lights of a corporation’s strength and weakness.

1.3 CONCEPTS OF STRATEGIC MANAGEMENT

Following are the important concepts of strategic management

 Strategy-definitions and features
 Components of a strategy statement
 Strategic management process
 Environmental scanning
 Strategy formulation
 Strategy implementation
 Strategy formulation Vs. implementation
 Strategy evaluation
 Strategy decision
 Business policy
 BCG matrix
 SWOT analysis
 Competitor analysis
 Porter’s five forces model
 Strategic leadership
 Corporate governance
 Business ethics
 Core competencies

3.
 STRATEGY DEFINITIONS AND FEATURES
We have seen about definitions of strategy on the above sections now we are going
to see features of strategy.
FEATURES OF STRATEGY:-
1. Strategy is significant because it is not possible to foresee the future, Without a
perfect foresight, the firms must be ready to deal with the uncertain events
which constitute the business environment.
2. Strategy deals with long term developments rather than routine operations, I.e.
it deals with probability or innovations or new products, new methods of
productions, or new markets to be developed in future.
3. Strategy is created to take in account the probable behavior of customers and
competitors. Strategies dealing with employees will predict the employee
behavior.

COMPONENTS O STRATEGIC MANANAGEMENT

The strategy statement of affirm sets the firm’s long-term strategic direction and broad policy
directions. It gives the firm a clear sense of direction and a blueprint or the firm’s activities for
the upcoming years. The main constituent of a strategic statement are as follows:

1. Strategic intent: An organization’s strategic intent is the purpose that it exists and
why it will continue to exist, providing it maintains competitive advantage. Strategic
intent gives a picture about what an organization must get into immediately in order
to achieve the company’s vision. It motivates the people. It clarifies the vision of the
company.
2. Mission statement: Mission statement is the statement of the role by which an
organization intends to serve it’s stakeholders. It describes why an organization is
operating and thus provides a framework within which strategies are formulated. It
describes what the organization does, who all it serves and what makes an
organization unique.
3. Vision: A vision identifies where the organization wants or intends to be in future or
where it should be to best meet the needs of the stakeholders. It describes dreams
and aspirations for future. It is a potential to view things ahead of themselves. It
answers the question “where want to be”. It gives us a reminder about what we
attempt to develop.

4.
 4. GOALS AND OBJECTIVES: A goal is a desired future state or objective that an
organization tries to achieve. Goals specify in particular what must be done if an
organization is to attain mission or vision. Goals make mission more prominent and
concrete. The co-ordinate and integrate various functional and departmental areas
in an organization.

STRATEGIC DECISIONS
Strategic decisions are the decisions that are concerned with whole environment in which the
firm operates the entire resources and the people who form the company and the interface
between the two.

CHARACTERSTUCS/FEATURES OF SRATEGIC DECISIONS

 Strategic decisions have major resource propositions for an organization.
 Strategic decisions deal with harmonizing organizational resource.
 Strategic decisions deal with the range of organizational activities.
 Strategic decisions involve a change of major kind since an organization operates in
ever-changing environment.
 Strategic decisions are complex in a nature.
 Strategic decisions are at the top most level, are uncertain as they deal with the future,
and a lot of risk.
 Strategic decisions are different from administrative and operational decisions.

Closing thoughts: In recent years, virtually all firms have realized the importance of
strategic management. However, the key difference between those who succeed and
those who fail is that the way in which strategic management is done and strategic
planning I carried out makes the difference between success and failure. Of course,
there are still firms that do not engage in strategic planning or where the planners do
not receive the support from management.

5.
2. STRATEGIC ISSUES IN CONSTRUCTION INDUSTRY

Strategic issues in construction industries are

1. shortage of qualified workers

The construction industry has been on the rise for the past years and is expected to
continue to grow. Despite the growth, 70% of contractors say that they are having a difficult
time finding qualified workers or professionals to fill these growing positions.

This misalignment between the number of available jobs and the number of skilled workers
will continue to be in issue the construction industry will face. Up to this point companies have
taken some steps to try and combat this issue such as increasing pay and benefits and investing
in training. Despite these efforts, it is a continuing strategic issue that the industry has yet to
resolve.

Many firms are concerned that the lac o skilled workers will negatively affect safety. 47% of
contractors say that in experienced labor force is a safety concern. As the shortage of workers
continues to be a problem, firms will also have to be aware of safety concerns and adjust
appropriately.

2. Generational differenes
Another issue that arises is the differences between generations. More and more
millennial are entering the job forces that have very different work ethics and sets of skills
than different generations in the field. This difference of opinion may cause conflicts to
arise, in particular between veteran employees and new employees.

3. Technology adoption
Technology has transformed the industry, and whoever cannot keep u will be left
behind. This has become especially true as competition increases both in attracting
workers and competing for project. Necessary construction technology includes cloud-
based software, integrated collaboration, and mobile project management. Companies
must be strategic when implementing new technologies to not upset the veteran
employees who are set in the traditional way of doing business. Companies must
implement technology slowly and steadily to reap its benefits with minimal blowback.

6.
 The use of building information modeling (BIM), laser scanning, and virtual reality will
also become more used and become a necessary practice for firms. BIM and laser
scanning are becoming more commercially affordable, and despite the initial
investment, save the company money in the long run by streamlining processes.

4. Environmental stability

The construction industry continues to face strategic issues combatting their adverse
effect on the environment as they produce 25-40% of the world’s carbon emissions. As
these problems become more at the forefront of the global agenda, they will have to
make changes to avoid negative attitudes from the public. This is not an easy feat for the
construction industry and will take many years to accomplish. Making significant
changes in carbon emissions requires an entirely new project management approach
focused on reducing energy emission and water consumption.
5. Project complexity

Construction projects are becoming more demanding and complicated in the design.
This trend will only continue and will pose a challenge or the scarce workforce.
Therefore, firms must be selective in what projects they choose to accept. Taking too
many projects may prevent companies from complete the job on time or cause them to
lose all profitability from data slippage. According to Accenture, only 30% of firms
currently deliver projects on budget and only 15% of deliver on time. This number of
firms able to deliver projects on time and budget will only decrease as the number of
skilled workers decreases and demand increases.
6. Poor productivity and profitability

Currently, the barriers to entry in construction are low, creating a saturated

marketplace with heavy competition. This competition is shrinkage pro profit margins
and constraining essential reinvestment in new technology and better business
practices. Stagnant construction labor productivity is compounding this problem.
Why is productivity stagnation? According to a construction owners association of
America (COSA) study, 63% of direct labor time on mega-construction projects is sent
waiting for materials and equipment. Consequently construction companies find
themselves between shrinkage profit margins and stagnant productivity, unable to
generate the profit necessary to invest in critical technology.

7.
3. STRATEGC PLANNING PROCESS FOR CONSTRUCTION COMPANIES

Strategic planning is the process of formulating decisions about an organization’s future

direction. This process is vital to every organization’s survival because it is the process by which
the organization adapts to its ever-changing environment. All organizations must be effective
and responsive to their environments to survive in the long run and the process is applicable to
all management level and all types of organizations.

Strategic planning for project management is the development of a standard methodology

that can be used for achieving the projects objective. Altogether, this is a simple process that
can be applied to each and every project. Without this process, subunits trend to drift off in
their own direction without regard to their role as a subsystem in a project.

There are 8 steps to strategic planning:-

1. Prepare to plan
2. Identification of a project’s vision, mission, goals and project goals
3. Analyze the internal and external environment
4. Identify the strategic issues
5. Define the strategic aims and develop strategies
6. Identify the resources required to achieve the strategic aim
7. Draw up an internal capacity building plan
8. Cost the plan

STEP 1: Prepare for planning

This step build consensus around some of the questions listed below.

 Who will be involved in this process? What will their precise role be? Who will be
involved from outside the organization? What kind of external perspectives and
experiences will help in planning?
 How much time will be set aside for strategic planning? And over what period of time?
How much time will different members of the team allocate to strategic planning?
What is the timetable?
 Planning will be quicker and easier if relevant documents are collected in advance.
Who will be responsible for collecting the relevant documents?

8.
 STEP 2: Identification of a project’s vision and mission: projects goal
At this step we are going to identify and define what mission, vision and goal the project has.

1. MISSION STATEMENT: A project mission statement descries its reason for existence in
general terms that capture its unique purpose and functions. It typically describes the
organization, what it does, why it does it, and for whom.
2. VISSION STATEMENT: Is a brief, forceful statement describing the project as its more
effective, or as it will be when it achieves its desired goals and outcomes.
3. GOALS: Are broad, high-level, issue-oriented statements of outcomes that an
organization will strive to achieve. They should fit well with the mission statement and
values, and answer the question, “What must we do to accomplish our mission or
achieve a result?”
4. OBJECTIVES: Objectives break down goals in to smaller, more specific pieces

STEP 3: Internal and external environmental analysis

1. Assessment of external challenges and opportunities

A good strategic plan will describe important external factors that that affect the ability to
achieve goals and performance targets. Organization should consider changes in this kind of
factors in their analysis and whether they affect the project upon whom you heavily depend:

 Related markets or industries

 The law or regulatory environment
 The natural environment
2. Assessment of internal capacity and financial health

The strategic planning process also provides a good opportunity for an organization to a
stock of its strengths and weakness, and to examine internal organizational factors that can
impact its ability to accomplish the mission, goals, and objectives. For example:

 What are key workforce issues that affect projects performance?

 What workforce issues must be addressed to achieve projects goal?

9.
STEP 4: IDENTIFYING STRATEGIC ISSUES
This step draws together and builds on the work completed in the previous steps. It is
design to help answer the questions: What are the key strategic issues that the organization
wants to address? It is important to identify the strategic issues that have emerged from the
analysis so far because this helps to:

 Focus attention on really important issues

 Identify the major choices facing the organization
 Highlight areas needing changes
 Provide insights above how to resolve the issues.

STEP 5: DEFINING STRATEGIC AIMS AND DEVELOP STRATEGIES

In this step the purposes is to identify three or four strategic aims to guide the project
and identify what strategies should be used to achieve this strategic aims.

1. What is strategic aim?

A strategic aim states clearly and precisely what the organization wants to achieve from the
project during this time and hoe it intends to achieve it.

2. What are strategies?

Strategies are statements of method to achieve an objective. While goals and objectives
state what the organization wants to achieve, strategies state how goals and objectives will
be achieved. Strategies are the paths that the organization will follow as it works towards
achieving the identified strategic aims.

For maximum Impact, it is advisable to select a combination of strategic for each strategic
aim.

The key questions to ask in this step are:

 What are the strategic aims of a project?

 Which strategic aims should be prioritized?

10.
STEP 6: IDENTIFYING RESOURCE NEEDS
Once the strategies have been defined, it is necessary to work out what human and financial
resources will be needed to achieve the aims of strategic plan. Through this step it is needed to
answer the following questions:

 What financial resources are currently available for which aspects of the work planned?
 What human resources are currently available for the project
 What are the gaps between what is available and what is needed?
 How might these gaps best be filed?

STEP 7: INTERNAL CAPACITY BUILDING PLAN

During the strategic plan process a significant number of strategic issues will have been
identified that relate organizational capacity, its strength or weakness directly to use the final
strategic aims.

It is important to link them to the strategies for achieving those aims. However, some issues
will be broader and are best addressed by developing an internal capacity building plan. This
will help to ensure that the organization successfully builds on the strengths it has identified
and minimizes or overcome its weakness.

The internal capacity building plan should specify what areas of capacity need to be
addressed and how they will be addressed.

STEP 8: COSTING THE STRATEGIC PLAN

This step concerns the resources that will be needed to implement the strategic plan. In
other words it will need to cover the strategic identified for each strategic aim and the internal
capacity building plan. At this stage it is sufficient to have to have an estimate of project costs.
Below are some factors to consider when costing:

 Identify the inputs: - required to implementing each strategy in terms of people

equipment, services and materials.
 Categories the cost of inputs: - One way of doing this is to distinguish between indirect
and direct costs.

11.
4. FACTORS THAT AFECTS THE EFFICIENCY OF STRATEGIC PLAN
There are many factors that affect the efficiency strategic plan for example:

1. ORGANIZATIONAL STRUCTURE
Every organization has a unique structure that reflects its current image, reporting
relationship and duties. Leaders must consider whether the organizational structure
facilities the free flow information; co-ordination and the co-operation between
management and other functional areas. Simplistically, structure informs “who does
what”, and “levels of accountability”. This clearly shows the organizational structure is a
fundamental factor for the efficiency of strategic plan. Without proper structure then
the strategic planning might not be efficient in some organizations because structure
play a major roles in delivering the expected results.

2. ORGANZATIONAL CULTUTRE
Organizational culture is the behavior of human beings who are part of an
organization and are attached to the action that they perform within the organization.
This includes organizational values, vision, symbols, beliefs, norms, habits etc…and these
are pattern of beliefs and assumptions that an organization as developed for a period of
time and that are taught to new employees who are joining the organization as the way
of a pursuing thinking and feeling about the organization. Most organizations have its
own unique cultures that affect efficiency of strategic plan.
In order for organizations to have efficient strategic plan it’s evidently important
that the organizational culture plays a major role and the top management should be
able to embrace culture change within the organization. This can only happen if the
entire management and the employees believe that culture is essential for both
successful organizational culture and maximizing the value of human capital.

3. LEADERSHIP
Leadership is the process by which a person influences others to accomplish an
objective and directs the organization in a way that makes it more cohesive and
coherent. Leaders carry out this process by applying their leadership attributes .It is
important to note that leaders are expected to be mentors who can be dependent on y
the people that one is leading .This means that the leaders should be able to exercise
skill so that the people will be able to appreciate his leadership skill. In management
there is difference between a leader and a manager because the latter wants to
12.
 maintain the status quo whereas a leader will always question the existing position.
Therefore it’s important to note that leadership in any organization will always affect the
efficiency of strategic plan.

4. HUMAN RESOURCES
Most organization views the department of human resource as an administrative
function within the organization but they forget that the department has a big
opportunity to align it with its strategic plans. In the event that the human resource I
include the strategy of an organization, its alignment may not go beyond a forecasting
function. The main reason is that human resources is not aligned with the strategy of an
organization and in most cases the department does not participate in the strategic
planning considering that the most of the strategic plan meeting are associated as a
support team. So organization can make their strategic plan efficient by looking at
human resources as unique assets.

There are also other factors that affect the efficiency of the strategic plan such as:

 Internal factors
 Stakeholders of the organization
 External factors
 Political factors
 Economical factors
 Social factors
 Technological factors

13.
 PART TWO
1. VISIST AND PREPARE REPORT FOR CONTRUCTION PROJECTS WITH
THEIR SPECIFIC PROFILE THAT AR UNDER CONSTRUCTED IN
HAWSSA

1.PROJECT: MODJO – HAWASSA HIGHWAY PROJECT

The project, which was commenced three years ago at a cost of 14.2
billionbirr, is being built in four phases – Modjo-Meki, Meki-Batu, Batu-Arsi
Negeleand Arsi Negele-Hawassa.
performance of the 201-kms highway project is slow due to
problemsassociated with rights of way and input supply shortages. The
Modjo-Meki segment of the project has reached 70%, but only 14.7 km of
the 37-kms Meki-Batu section has been built so far.
Similarly, the level of performance of the 57kms Batu-Arsi Negele is at
1.5%now. the authority is currently working with local administrators to
resolve problems associated with rights of way in order to accelerate the
construction of the four-lane highway project and finalize it as per
schedule.
The project is expected to be completed by 2021.The Modjo- Hawassa
highway is part of the major Mombasa- Nairobi-Addis Ababa highway. The
direct beneficiaries will include transporters, travelers, traders, agro-
businesses, and others who will benefit from an improved road connection
toAddis Ababa.

2. Hawassa University Mixed Use Package 02

Construction Project
Client : Hawassa University
 Total Project Amount:ETB 148,297,184.30
Consultant: Zeleke Belay Architects
Location: Hawassa university compound

3.. Public library G+3

Owner:SNNPR
Project duration: 3 years
ADDRESS: Hawassa
Contractor:Desalegn Asrade
Communication address:
Phone 046220 16 02 (Office)
Fax 046 220 18 34
4.Mall G+7
Owner:Abera Kebede
Contractor:Admas Tesfa
Consultant:Admas Tesfa
Project duration:5 Years
Address: Hawassa
Communication address:
Phone 046220 3169 (Office)
Fax 046 220 7214
5. Office G+5
Owner:Hawassa University
Contractor: Zeleke belay
Consultant:Yohannes Abay Consulting Archtects and Engineering PLC
Total Project amt.:478,203,365.57ETB
Project duration:6years
Address:Hawassa
2
YIRGALEM CONSTRUCTION PLC

Yirgalem Construction is a Grade-1 General Construction Company whichis

established as a sole proprietor in 1989 E.C owned and managed by
Engineer Zelalem W/Amanuel.
Yirgalem Construction has undertaken construction projects such
asbuildings, roads and water works in different parts of the country.It has
anestablished management team and competent staff most of them
havebeen with the company since its inception. The organization currently
hasover 10,000 skilled & non-Skilled working manpower in 35 active
projects with the machinery and equipment requirements are satisified as
pereach contract. Yirgalem Construction Plc is proactive and
professionalfrom tender stage through to project completion.
The company’s ethos is one of openness and co-operation.The companyhas
its own office in Hawassa and a liaison office in Addis Ababa. Overthe last
17 years the company’s turnover has steadily increased. Thiscontrolled
expansion of the business to continue with a sharp focus ondelivering all
projects in program, safely and to the quality required by theclients. It has
successfully executed different types of civil engineeringworks in all parts of
the country. These projects include different types ofbuildings, schools,
hospitals, university infrastructures, airports, dry port,sugar factory,
laboratories, water supply works, urban drainage, arterialroads, concrete
asphalt roads, bridges, and monuments and so on.Currently it has become
the leading multi sartorial construction workscontractor, construction
materials producer and supplier private companyin SNNPRS striving to take
the lead at the national level.
General objectives
Constructing buildings and related schemes

 Constructing roads and road accessories

 Constructing water works constructions
 Drilling shallow and deep wells
Specific objectives
 Implementing designed constructions
 Constructing multi-story buildings
 Constructing site works

 Constructing storm water drainage lines

 Constructing road accessory structures
 Constructing water supply schemes
 Constructing irrigation structures
 Constructing Real state houses
Goals
• Promotion of the construction activities of the country
• Accomplishing the construction projects in quality basis and timely
• Preparation of the real states and living houses for different clients
Vision
To see the firm participating and accomplishing various levels
ofconstruction services in the national levels by strengtheningtechnical
professionals and important equipments for the sake ofbetter
performances in scientific and efficient approach in thecoming ten years.
In the coming five years the contractor will hopeto become class one
competent in large levels of constructions suchas high ways and roads.
VALUES
Well qualified and experienced working man ship with a number
ofprofessional Engineers and related professionals that arecollaborated
with good management team and efficient equipmentsand materials. The
company has owned a number of largemachineries and vehicles that can an
input for the constructionworks of different projects in parallel manner.
Quality Policy
The top management of Yirgalem Construction PLC and its staff are
highlycommitted to achieve and sustain a reputation for excellence in
thedomestic and international construction industry by construction
andtransferring technology of high standards of buildings, roads and
waterworks that can satisfy customer,, stakeholders and regulatory
requirements.
This is achieved through maintaining and continually improving the
qualitymanagement system based on ISO 9001:2008.

Zamra Construction P.L.C.

Zamra Construction PLC is one of Ethiopia’s leading multi-disciplinary
construction firms with over thirty completed projects to its name. As a
Grade one contractor we operate throughout the entire spectrum of
Ethiopian Construction.
Zamra Construction is the name behind some of the most major
construction projects in Ethiopia to date. We strive, time and time again, to
provide our clients with reliable solutions to their most complex
construction challenges. Over the past decade, Zamra has managed to
establish itself as a market leader; acquiring reputation for always
delivering quality finished products to meet the expectations of our clients .
We are recognised for our fresh and creative approach to time
management which enables us to always complete our projects quickly and
within our allotted time frames. More and more of our clients are turning
to us as a result of this. Our expertise spans through the complete range of
construction possibilities, from our smaller projects to multi-million
birrventures.
Local offices allow us to offer the dual benefits of a strong local presence
and broad geographic reach. We support our clients throughout the
entirety of the project, from its inception to the commissioning of the fully
operational facility. Whatever your construction needs we have the
experience, personnel and resources to provide the highest quality results
on schedule and within budget.
Vision
To become the primary firm in the construction sector by executing
projects in a safe and timely manner to deliver outstanding results for our
stakeholders.
Mission
To construct quality buildings, roads, bridges and others with proficiency
that meet the required standards
By creating strong links within the construction industry to produce and
supply industrial products necessary in building construction both for
national and international markets Through strong manpower and material
capacity and organization to expand and begin to undertake projects at an
international level..
The Top Management of Zamra Construction PLC and its staff, being
involved in building construction, are totally committed to meeting the
needs and expectations of customers, stakeholders, statutory and
regulatory requirements through applying appropriate technology, skilled
manpower, and establishing and implementing quality management system
based on ISO 9001:2008 in its processes.
Zamra is committed to maintain and continually improve the quality
management system by reviewing customer and stakeholder’s feedback,
internal quality audit results, and reports on performance of the quality
management system.
YOTEK CONSTRUCTION
YOTEK Construction plc. Was established in 1998 G.C by Yohannes Teklay.
In the last 21 years the Company has established itself as one of the leading
construction company in Ethiopia providing Various construction services
like construction of buildings, roads, special factory Foundations, bridges
and various types of civil engineering edifice contributing to the
development Of the construction industry. YOTEK construction is fully
equipped with modern machineries and tools in accordance With the
applicable regulations of the FDRE Ministry of Works and Urban
Development /MoWUD/, and has been participating in different regions of
Ethiopia. Rendering services of High quality, time lines and cost effective
management schemes are principal concern.
So far YOTEK Construction Plc. has carried out different projects worth
more than ETB 9 billion and currently has a project worth ETB 4.5 billion at
hand. Currently YOTEK has More than 5,500 employees which include 780
 permanent employees. Armed with strong, stable, experienced and sound
management gained ever since its establishment.

3. Strategic Planning practices in Construction

Companies
Strategic planning is an essential function of senior management in any
business firm. Planning involves the firm's behavior in a competitive market
and adaptation of the company's resources towards the selected market
strategy. This procedure consists of the following stages.
First, examine the company's mission. The mission reflects the owners'
views with regard to the company's scope of activities and objectives.
Second, survey the company's business environment. The environment
includes both general economic factors that affect all types of business
activity and additional factors, specific to the construction sector.
This survey should reveal the specific “packages” of prospective project
opportunities and highlight potential threats to a company's orderly
activity.
Third, analyze the company's main resources. The main resources in this
respect include the construction capacity, the procurement system, the
marketing system, the organization, personnel, finances, and knowledge.
The relative strengths and weaknesses of each resource, in light of market
needs, are identified.
Fourth, develop a strategy. The development of a strategy is based on
“mapping” of the relative attractiveness of the various possible activity
areas. This strategy can follow one of several generic types that must be
adapted to particular conditions of the market and company. It affects the
subsequent choice of a strategy for development of the company's own
resources. The choice of the optimal strategy, from several available
alternatives, should follow a careful analysis of the costs and benefits
inherent in the implementation of each. Permalink
The management of an organization’s resources in order to achieve its
goals and objectives. Strategic management involves setting objectives,
analyzing the competitive environment, analyzing the internal organization,
evaluating strategies, and making sure that the strategies are rolled out
across the organization.
The company follows many procedures
• Formulating
• Organizing
• Implementing
• Controlling
The company practices
1. SWOT factors:-The first meeting was convened to address the
strategic factors associated with the proposed PMIS. Firstly, the group
collated a list of relevant external opportunity and threat factors,
considering the macroscopic level of the construction industry and the
microscopic level of construction projects. Secondly, the group examined
the organization’s internal strengths and weaknesses, which may enhance
or hinder the efficient and effective implementation of the proposed PMIS.
A total of 28 strategic factors were collated and grouped into four
categories: strengths, weaknesses, opportunities and threats
2. SWOT analysis:- In the subsequent meeting, the list of SWOT factors
was analyzed using the developed hybrid SWOT/AHP technique mentioned
previously to establish the priority of each factor. The priorities of the
factors included in the SWOT analysis were estimated by pairwise
comparisons
3. The next task of the RC was to develop a diffusion strategy that
elaborates on the significant SWOT factors detailed previously. The
diffusion strategy describes how the proposed project will benefit the
organization, how organizational assets and processes will be affected by
the new PMIS and what changes will be necessary to take full advantage of
the PMIS capabilities.
4. Operational strategy:-The diffusion strategy mentioned above was
then codified in terms sufficiently clear to render them formally
operational. The diffusion strategy was analyzed in terms of functions
(business systems), hierarchies and responsibilities (organizational
structure), as well as in terms of the technical architecture required for the
building of the PMIS and associated tools
5. Implementation strategy ‘action plans’ In a subsequent meeting, the
RC developed action plans for each function or element of the operational
strategy.
6. After defining the implementation requirements, the RC began to
elaborate on the objectives, timing, cost, resources and coordination
dimensions of these functions
7. Monitoring plan Finally, the RC decided to implement a performance-
monitoring plan to continually evaluate the implementation and usage of
the PMIS. A limited number of IT/IS performance indicators and associated
measures were selected to serve this purpose.
8. managers develop goals that corresponds to the efforts of the top
management overall goals and strategy. This requires operational plan
aimed at administration and coordination of Stakeholders, Processes and
Resources.
9.They organize and arrange material and human resources and allocate
each task for them and formulate departements