Sir Robert McAlpine Case Study
Key Reasons for Sir Robert McAlpine’s Success:
- Sir Robert McAlpine has been established for nearly 150 years and, in this time, has developed a market leading reputation amongst both customers and competitors alike. Sir Robert McAlpine’s reputation in the industry has allowed the company to bid on large scale projects that can be charged at a premium, due to the level of expertise required to complete them successfully.
- Over the years, Sir Robert McAlpine has moved into new areas such as nuclear power and mining, which is highly specialist, with very little in the way of competition. Investing time in developing these technologies has enabled Sir Robert McAlpine to gain full benefit from this lucrative areas of construction.
- Staff teams are located around the UK, with local expertise in their own specific areas. This is invaluable as construction often requires local geographical knowledge. By having the local bases yet the national structure, Sir Robert McAlpine has ensured that it has the necessary specific knowledge, backed up by a huge bank of information gathered over the years.
- As well as being at the forefront of construction development, the company has invested considerable time and money in its own internal infrastructure. For example, the company has state of the art information technology systems to allow staff to work smarter, not harder. It also uses national video conferencing facilities to allow for the sharing of information, quickly, between the various offices.
Threats and Problems Sir Robert McAlpine May Face in the Future:
- Currently, construction is not a fast moving sector. More specifically, construction is one of the most fragile sectors as companies fail to gain financing for large building projects. This will undoubtedly put cost pressures on the company to ensure that it remains suitably competitive to attract customers, but also to make long term profits.
- Expertise is at the heart of Sir Robert McAlpine; in particular, there are key individuals in every project who are seen as central to the whole issue. These individuals could easily leave the organisation, possibly joining a competitor. Without their expertise, Sir Robert McAlpine may find that retaining the relevant clients is difficult. For this reason, even the large contracts can be particularly fragile and dependent on one or two key relationships.
- Such a large company has substantial overheads, which can quickly render the company unprofitable, if the company fails to attract a regular stream of contracts. It is absolutely essential, therefore, that a regular supply of contracts is provided, which given the scale of the construction projects undertaken is not always easy, particularly during times of economic turmoil.
- Whilst Sir Robert McAlpine has rightly developed a reputation as being able to tackle the largest, most complex construction projects available, this can sometimes prove a long term weakness. Some companies would be reluctant to approach Sir Robert McAlpine for fear that their project is not sufficiently large or profitable. This may result in Sir Robert McAlpine missing out on some lucrative contracts.
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