Contemporary developments in business and management

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Contemporary Developments in Business
and Management

EXECUTIVE SUMMARY
This report is commissioned to evaluate and examine contemporary developments in
business and management. The organisation Balfour Beatty has been chosen to bring attention
regarding certain factors that have influenced business operations. The Standard Industrial
Classification of Economic activities has subjected specialised construction activities in section F
43. Balfour Beatty is functional under this segment. The assessment will help in analysing and
understanding major external factors that influence this construction business. A qualitative
description of company's relations with technological changes has been provided in this report.
The investigations reveal that PESTEL (political, economical, social, technological,
environmental and legal) factors highly influence the functioning of Balfour Beatty. Formulation
of strategies is done only when PESTEL analysis is performed. Contribution in the development
of country by the company is based on fluctuations in these factors. Further investigation reveals
that technology is important to support construction industry. Specialised activities that are
carried by Balfour Beatty are demolition, site preparation, drilling, boring, building, finishing.
Installations, etc. These cannot be effectively executed if technological support is not provided.
Henceforth, it is recommended that Balfour Beatty has to maintain good coordination
with advancements in machinery and automation. This will help in implementing latest
functional technology in day to day activities which will result in quick completion of projects.

TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
TASK 2 ..........................................................................................................................................8
2. i) Relevance of technological changes and their influence..................................................... 8
2. ii) Effectiveness of organisation's response.......................................................................... 10
2. iii) Areas for improvement in response of company ............................................................ 11
CONCLUSION ............................................................................................................................13
REFERENCES ..............................................................................................................................14
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INTRODUCTION
Emergence of concrete jungle is the symbol of development and progress. These
contemporary developments in businesses have helped people transform their imagination to
realities. Buildings, bridges, highways, resource network systems like water lines, electricity
grids, dams, tunnels, etc. are all constructed and maintained by constructional groups. Growing
population means excessive demands for new habitats. On top of these requirements, application
of technology is also necessary for organisations so that consumer expectations are not hindered.
Disruptive technology is the current technique for imbibing innovation in the company. Hence, it
is important that organisations must keep pace with external environment. Critical consequences
can be avoided if analytical approach to business environmental factors is cultivated.
The aim of this report is to give deep knowledge regarding influence of external business
environment on the functioning of Balfour Beatty. It's strategies are regularly coordinated with
realistic market conditions. The company is known for its infrastructural investments and
efficient constructional designs in different parts of UK and US. This assessment will also focus
on technological changes and its implications on this aspect on business and construction
industry so that appropriate responses and improvements can be generated. The final section of
this report will demonstrate areas of Balfour Beatty which require certain changes.
TASK 1
PESTEL analysis refers to the major components of external factors that affect
functioning of an organisation (Seddon, Calvert and Yang, 2010). Basically, when a company's
external business environment is to be analysed then PESTEL analysis tool is used. Balfour
Beatty has been functioning since the year 1909. A large number of transformational changes
took place during these many years both in external and internal environment of company.
P-Political
Government that rules over a country is majorly responsible in defining the dynamics and
internal structure of every company. The political factors are formed by actions and reactions of
these ruling bodies. Balfour Beatty's economy is influenced by political activities of the
government. There are certain parties that practise unfair activities for which private companies

have to suffer. Economy is ruined when politics takes a brutal face. Corruption is the major
factor that deteriorates the economic status of companies especially in the private sector (Naidoo,
2010). New tax laws or export import duties that are introduced by government are influenced by
politics in the country. Fiscal policy is also a major component of political factors affecting a
business environment externally.
Running with a motive to earn profits, Balfour Beatty has been leading as the top British
multinational company in the field of construction. There are certain specialised services which
are to be performed by company before building a foundation for new construction. These
services require permission from government officials after they screen and test the validity and
strength of materials to be used. Investments are influenced by political activities going in a
country (Needle, 2010). If any sort of changes are made and introduced by ruling parties
regarding employment laws and trade policies then, Balfour will face a difficulty in developing
its strategies and tactics for completing a particular project.
E-Economical
Economy is vital for survival where Gross Domestic product is a figure that determines
whether a country is developing or developed or even under developed. Classification of
countries on the basis of their annual income is important for understanding its financial status in
the world. Foreign trade policies and competition laws are certain examples that have been
formulated according to the economic conditions of nations (Chittithaworn and et. al., 2011).
Business environments are crucially affected by economic factors. Effects of these changes in
economic policies often have a long term impact on the firms.
Balfour Beatty has to develop its working techniques by keeping appropriate margins for
economic changes. Sudden rise in prices may often lead to increasing cost of projects. As a
result, company has to gather more funds for successful completion. Inflation rates, interest rates,
foreign exchange policies, foreign investments, recession factors, growth patterns, etc. are certain
significant elements of economic factors influencing Balfour's external environment.
S-Social
Constructions are made for the public use. Be it a private sector company or public sector
organisation, their purpose is to serve citizens that are residing in the country. Buildings, bridges,
parks, etc. are classified under constructions (Menguc, Auh and Ozanne, 2010). Government

collects revenues from citizens in the form of various taxes that are applicable on using national
facilities. A part of these revenues are utilised in the construction business. Social acceptance of
every infrastructure that is made is essential. Use of different culture and beliefs in structural
designs must be in accordance with the social demands of community.
Culture and heritage of a society and community are influenced by beliefs and behaviours
of people residing there (Tompkins and et. al., 2010). Balfour has to keep in mind the taste,
expectations and cultural preferences of people before opting or designing a project.
Determinants that function in the social factors include market structure, cultural trends,
population demands, tastes of consumers, etc. If these elements are not considered in activity
planning of company then consequences would be harmful.
T-Technological
Growing scientific researches and developments have helped mankind to achieve comfort
and facilities that were just imagination few decades ago. Innovation is essential for every
business organisation to survive in such an intense competition (Ball, 2014). When blended with
technology, innovation can become much more resourceful. Construction business depends
largely on technology. For undisturbed business operations, technological factors must always be
considered during strategic planning. Market feasibility and production cost are highly affected
on the nature of technology used and implemented in the product. Strong economies are the ones
that go hand in hand with technology. Their perception for success is a step ahead from current
trends in the markets.
Skills and education level of employees should be appropriate to handle the technology
appropriately (Harris and McCaffer, 2013). Often mishandling of equipment leads to disastrous
outcomes. Balfour Beatty PLC has to meet certain conditions that are to be met before applying
technology. Automation, more investment in research and developments, etc. are the
determinants of technology. These not only help in producing the best outcomes but also
improves reputation in the global markets. The functioning of company depends on awareness
about latest technology and its applications.
E-Environmental
Every human activity has some effects on the environment. Globalisation and
industrialisation has led to various deteriorations in natural balance. Resource depletion, ozone

reduction, etc. were the consequences of these activities (Kibert, 2016). Hence, governments
major nations decided to implement certain laws which will reduce damaging activities of
industries. Maintenance and care of surrounding environment is therefore essential. Particular
industries like tourism, farming, agriculture, construction, chemical production, etc. have a great
impact on the surroundings in which they operate.
Balfour's activities are regulated and monitored by government so that any sort of
infrastructural changes that may harm environment can be detected. Weather conditions are
crucial before taking any decision in construction business. Storms, tornadoes, floods,
earthquakes or any other natural calamity that occurs during execution of a strategy form a part
of environmental factors for a company. Dominant environmental factors are not in the control
of organisation or government (Scarbrough and Corbett, 2013). Precautionary measures have to
be planned in such a manner that no major loss would occur to labourers and people that reside at
constructional site. Balfour group has to effectively choose working locations and make
decisions accordingly so that less loss to economy is experienced during crisis times.
L-Legal
Internal and external business environment has to be guided by rules and regulations that
are put forward by company and the ruling government. Legislations are passed so that certain
level of discipline is maintained in the country (Bloom and et. al., 2014). In order to prohibit
illegal activities or protect consumers from exploitations, rules are defined. Human resources are
the drivers of a company. Generally, private sector organisation get engaged in certain activities
which involve undeclared use of labour so that more profits can be earned. Exploitation of
human resource can only be handled if government intervenes and monitors organisational
activities (Ashworth and Hogg, 2014). Hence, legal factors have a great impact on organisational
dynamics.
Balfour Beatty has to obey federal laws and changes that occur in these laws. Consumer
Protection acts, labour laws, customer service policies, etc. are declared under the legal factors of
external environment. Organisational structure has to be made according to the legal
complications of a country. Infrastructures that are not in consonance of legislations of UK will
be demolished or prohibited from further construction (Finkel, 2015). An analytical view must

be obtained by Balfour Beatty before making strategies. This view must consult legislations and
competitor activities so that no human rights or laws will be disrespected.
TASK 2
2. i) Relevance of technological changes and their influence
Science has been an inseparable part of every individual's life irrespective of their stream
of learning and working. Every single human being is connected to science and technology in
some way or the other. Changes are as constant as time. Technological advancements take place
when scientists develop their working capacities and come up with new ideas. Construction is
one such industry that has evolved immensely (Kelly, Male and Graham, 2014). Automation
systems have helped businesses to complete complex structures. Balfour Beatty has to develop
strategies every time a new technology is introduced in the global markets. Investments in
research and developments helps companies gather more profits because the rights are reserved
by company for using particularly developed technology.
Disruptive innovation is a technological change that has given businesses a chance to
create new markets and value chain network after current markets are disrupted. There is a big
difference between disruptive innovation and revolutionary changes. The similarities between
these two concepts is quite less. Balfour Beatty is an organisation that can opt for technological
disruption for producing competent markets and incremental growth in the newly developed
markets.
There are certain specialised activities that are conducted by construction businesses.
Aforementioned activities can only be carried with help of equipments and devices that use
information and technology for performing certain tasks. Day to day operations are easily
executed with help science and technology (Handmer and Dovers, 2013). Computers, internet
and their accessibility have helped businesses to acquire more information related to specific
tasks. 3-D modelling and virtual architecture help designers that are hired by construction
companies to visualise the project on computer screens. This not only helps in better practical
applications but also detects flaws or loopholes in the proposed structure (About Us, 2017).
Citizens do not have to suffer any sort of losses due to wrong constructional design.

Intelligence when combined with smartness helps in performing actions with greater ease
and comfort. Smart building structures is one such aspect that has changed with scientific
developments. BAS or building automation system is one such structure that monitors complete
functioning that is related to a building (McCabe, 2014). It helps in conserving energy by
gathering all information at one place or centre point. Efficiency has increased with technical
advancements and business organisations require less human resource to operate huge tasks. The
perseverance of construction as a labour oriented industry has changed. Less labour can execute
good quality and quantity of work in short period of time.
Generally, innovative disruption is a technological intervention that is produced by
outsiders and entrepreneurs. They create their own market which will allow organisation to
explore and innovate without getting pressurised by competitors. Balfour Beatty has to gather
abundance of resources when such technology is used. Although leaders do not tend to opt for
this strategy of growth, but once implemented huge profits can be earned very easily.
Technological change definitely influences policies and decision making of Balfour
Beatty. Highly advanced equipments require highly skilled labourers and employees to operate
them. Hence, education level is the first consideration for any organisation before it recruits a
candidate. Balfour Beatty being a multinational has to look after complex network solutions.
Since, its operational areas are UK and US; the responsibility of giving high quality services
increases. The company has to keep pace with technology because developed nations have
greater access to technology. Recruitment policies are improvised when technological changes
are introduced in the company (Forcada and et. al., 2013).
Balfour Beatty has to implement certain technology in its organisational structure.
Training and development programmes becomes growing need when these are implemented. The
reason behind sudden need of training is that employees are the one who will use this technology
to complete specific projects (Fulford and Standing, 2014). If they are not taught about basic
operation then, expected results won't be obtained. Moreover, productivity of the company will
decrease rapidly. Hence, strategies have to be changed and recreated so that technology doesn't
become a curse for the company (Aziz and Hafez, 2013). There are some more influences that
technological changes have on policies and decision making of Balfour Beatty:

 Valuable production is achieved. Customers are attracted towards advancing technology.
When these are used in constructing projects or buildings, then more clients would like to
work with the company. Balfour Beatty can acquire greater market share in this sector.
Hence, decisions regarding business expansions are influenced.
 Being the primary external factor that influences business environments, changes with
rapid technical progress means more investment for purchasing high tech equipments.
This requires acquisition of capital either through government support or through
increasing selling prices. This will incur more revenues from clients, which can be
invested in research and development projects.
2. ii) Effectiveness of organisation's response
Balfour Beatty was introduced to major technical advancements during the on set of 21srt
century. Computers and automation have helped construction industry to flourish internationally
(Groff, 2015). It was highly difficult to develop pathways and highways in hilly areas or were
terrain was not even. Certain equipments and diamond cutters helped in solving this problem.
Tunnels were made from inside cliffs and mountains. Small villages and big cities were
connected through transportation networks. Railways, roadways and airways developed rapidly.
Living standards of individuals changed. People wanted more comfort and less pain in
performing their daily tasks. Hence, technology has played a vital role in a person's life.
Organisational response to this development has been positive.
Organisation's response to this innovative technology is quite weird because majority of
leaders and managers are against this approach. The reason behind this rebellion is involvement
of large amount of risk and resource investment. Creating a new market means starting right
from zero and applying complete assets of the company for benefit of that are just future
estimates.
Balfour Beatty group was highly dependent on daily wage labourers. Technology helped
them reduce their dependency on human resource. Major contribution to this advantage was from
the automation industry. CAD systems are helpful in designing a layout for prosed design. From
manufacturing to production; complete operations chain was transformed (Ball, 2014).
Blueprints that were usually manually designed are not digitally framed and organised. It
becomes more accessible to designers and company executives. Moreover, loss of information to

competitors is not faced when technological implications are mentioned. Effectiveness of
Balfour Beatty's responses to technological changes can be clearly understood from following
facts (Chaffe, 2016):
1. Internet and its applications: Internet has definitely helped organisation to gain better
information management. Technical growth is not only useful in progress of the
company but also helps in adding values to production of services and products. Better
customer relations are developed due to global access through internet. This response to
technological change has been greatly effective in long run for Balfour Beatty.
2. Social media: Digital communities have developed with emergence of internet in the
present era. These are supported on platforms like Facebook, Twitter, Youtube, etc.
Balfour Beatty can use this disruptive innovation technology as their marketing platform
so that huge positive influence is felt on company's current communication channels.
3. Cloud computing: This technology is a source of managing and transferring huge amount
of information without actually utilising large storage space. This disruptive technology
has helped businesses to manage and look after entire international operations with great
convenience.
4. Construction management software: Managing tasks at national level is not easy.
Budgets, bills and time all have to be handled crucially. Company has adopted well to
construction management software that tackle all these processes efficiently.
5. Computer Aided Design: Before taking initial steps in construction, CAD or computer
aided design helps in hosting possible issues that can occur during execution of action
plan. The company was able to evaluate better designs and create remarkable structure
with technological support (Fulford and Standing, 2014).
6. Drones: Drones were recently introduced in the past decade. They gathered a lot of
publicity and favouritism from consumers because of its compact design and easy
adaptability. Balfour Beatty were relived up to a great extent with launch of this technical
device. The functions and operations of surveillance, mapping and evaluating specific
constructional areas is performed easily through this device. Company can easily monitor
activities at any point of time and heigh with help of this supportive equipment.

7. Health and safety: Company's adaptability to technical products have ensured greater
health and safety standards of employees. Casualties have declined. Unlike earlier times,
it was difficult for workers to carry heavy slabs of concrete and marbles from one place
to another. Transportation, cranes and other supporting equipments have helped solve
these problems (McCabe, 2014). Moreover, awareness in industries regarding safety
measures and regulations also ensure health benefits of workers and employees.
These technological changes and advancements along have been positively adopted in the
dynamics of organisation. Response to such changes have been gathered but every step that
business organisations take have certain impact. The effectiveness of this impact is understood
only when functioning of the company is hindered.
2. iii) Areas for improvement in response of company
Country's development totally depends on the development of its citizens and economic
contributors. Construction is one such industry that signifies large scale development by giving
habitation facilities to people (Finkel, 2015). Manufacturing and up-gradation both go hand in
hand. Several equipments and digital devices help mankind in executing particular task with least
number of errors. Balfour Beatty has been experiencing various technological changes in its
functioning styles (About Us, 2017). The company has bought various equipments and software
that help in managing constructional activities. The company focuses on details which assures
exemplary output. As discussed earlier, there are certain complicated effects which are faced by
an organisation and its related industry when certain changes are introduced. These are described
below:
 Lack of skills and efficiency in existing human resource of the company
 Disruptions caused to natural environment
 Implementation and maintenance costs are to be recovered.
These areas can be improvised and utilised for collective growth of organisation as well
as operational country. Human resource management techniques must be scaled and strategically
implemented to get increased productivity levels. Skills and knowledge can only be enhanced
when trainings or learning sessions are involved. Apart from induction trainings, it is an essential
duty of organisation to provide regular trainings. This improves comfort levels of employees.
Usability of technology increases when required skills are learnt and imparted. Hence, it is

essential for Balfour Beatty to improve its labour force management to get uninterrupted
progress.
The biggest impact of any sort of organisational change in construction industry if faced
by environment. Natural surroundings are depleted in search of resources and sustainability
options decrease as a result (Tompkins and et. al., 2010). The principles of sustainable
development include looking after environment, people and profits all together. There are certain
limits up to which resources can be drained. If this limit is crossed then ecological balance is
disturbed. After satisfying needs and demands of employees, strategies must be developed in
such a manner that natural ecology is not damaged. Technological changes must be included but
with precautionary measures and a set up that will help in contributing to sustainable business
(Bloom and et. al., 2014). Environmental laws and conservation policies must always be kept in
mind before commencing any project. CAD is a tool that helps in analysing these facts. With
help of such tools a premature design can be prepared that will give Balfour Beatty an idea
regarding impact of proposed design.
Sustainability is a concept that has evolved over time. Increasing awareness of people and
business environments regarding environmental issues have helped markets to evolve with
technologies which can support ecological balance. There are various forms of disruptive
technologies which have been discussed earlier. Email and social networking is the most
popular platform for disruptive innovation. The goals of Balfour Beatty's leaders cannot ignore
the importance of this technological aid because it reinforces the business objectives and
provides larger audience for marketing company's products and services. Disruptive technologies
and innovation can be used for creating efficient strategies regarding marketing.
Profits earning motives help in acquiring great business positions in international
markets. There are various digital platforms and techniques that determine budgets and billing
processes which will be required for future plans (Ashworth and Hogg, 2014). These can be used
for improving profit approaches of the company. Investments are made with an objective to
receive appropriate returns. Despite of using high tech supplies a project doesn't help in incurring
all expenses, this means that proper budgeting was not performed. This can only be resolved if
finance department of company is managed and effective (Ball, 2014). As every technical

change requires certain investment and regular maintenance for long term benefits, costing and
pricing strategies must be correctly designed.
Response to internet and its application by Balfour Beatty was quite positive. From
clients to employees all were easily connected by emails and social networking platforms.
Moreover, professional communication got a different perspective after technology progressed
(Scarbrough and Corbett, 2013). This transformation definitely helps in stepping ahead of
competition but effective management skills must be utilised so that sustainability in markets is
maintained.
CONCLUSION
Ruling government organisations are responsible for major developments and
deteriorations in a country. Their actions and decisions majorly affect business organisations and
their environment. Balfour Beatty has been affected by certain policies and reforms which
include labour laws, consumer protection laws, trade restrictions, social and cultural
complications and certain environmental factors. These legislations are constituted in external
influential factors that affect Balfour Beatty, in the above assessment. Major aim of the report
was to get an understanding of business functioning when certain factors are introduces.
Companies face certain effects when changes are introduced in their organisational structure.
Here, technological changes are discussed. When equipments and computerised software are
introduced for performing certain tasks then, less time is consumed for execution. Employees
gain valuable skills with help of technological developments and this helps in reducing human
errors.
Transitions from traditional working systems to automated ones causes a lot of changes
in company dynamics. The adaptability of these changes defines organisation's response. There
are certain areas which can be improved for gaining better response of organisation. These are
human resource, sustainable development and budgeting departments. Although technology
brings in a lot of support and progress when correctly implied, there are chances that misuse of
this technology will lead to closure of the company. Recommendations that are mentioned at last
can be imbibed by Balfour Beatty to improve its response.

REFERENCES
Books and Journals
Ashworth, A. and Hogg, K., 2014. Added value in design and construction. Routledge.
Aziz, R. F. and Hafez, S. M., 2013. Applying lean thinking in construction and performance
improvement. Alexandria Engineering Journal. 52(4). pp.679-695.
Ball, M., 2014. Rebuilding Construction (Routledge Revivals): Economic Change in the British
Construction Industry. Routledge.
Bloom, N. and et. al., 2014. The distinct effects of information technology and communication
technology on firm organization. Management Science. 60(12). pp.2859-2885.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Finkel, G., 2015. The economics of the construction industry. Routledge.
Forcada, N. and et. al., 2013. Knowledge management perceptions in construction and design
companies. Automation in construction. 29. pp.83-91.
Fulford, R. and Standing, C., 2014. Construction industry productivity and the potential for
collaborative practice. International Journal of Project Management. 32(2). pp.315-326.
A Sample Report on Business and Management
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