Strategy Analysis

SDK (Sahand Dezh Kimia) is a private construction company, which tries to differentiate itself and succeed in construction industry. Maintaining previous contracts and old connections in one hand, and winning new contracts and finding new larger clients on the other hand are the biggest goals of SDK. SDK has tried to find new contacts by reputation of its finished projects and keeping the quality of company at a high level (employees, equipment, engineers…). Since there are many competitors in Iranian construction industry, it is quite critical for an organization or a company to consider all aspects when formulating and also implementing a strategy. Here we want to evaluate the company’s strategy by Rumelt’s framework (as the umbrella and other frames under that). There are four key elements that are considered critical criteria for a business to succeed in the market. We evaluate SDK’s strategy in these four steps and in some of the steps we get into deeper evaluation using other frameworks. Reader should be able to answer following questions after reading this report:

Does SDK’s strategy fit with what is going on in the external environment?

Is SDK’s strategy implementable?

Does SDK have enough resources to pursue its strategy?

Does SDK’s strategy exploit its key resources?

1- Consonance: a strategy must represent an adaptive response to the external environment and to critical changes occurring in it (compatibility). Changes in the external environment have always been a threat for SDK. This can be seen as changes in politics, technology, economy and etc. For this purpose, we can evaluate compatibility of SDK by using Andrew’s six environment elements and also the question of What SDK might or can do in terms of environmental opportunity and risk?

a) Technology: This factor is one of the most important ones in construction industry. SDK needs to expand its technology area to adapt to the external environment. Machinery equipment, Electronic...