This paper aims to appraise the companies strategies during the boom and investigate a more sustainable strategies for long term success.
The economy undergoes cyclical fluctuations between boom and bust. The boom introduces a number of opportunities and challenges. The impact of the business cycles on the economy, companies and people life is widely acknowledged. It becomes undoubtedly vital to understand how the changes during the boom impacts on the construction businesses. The adopted strategies by the British construction companies during the boom episode are discussed.
Responses from 30 executives from the top 100 construction companies are analysed in addition to the annual financial reports of 10 of the top companies. To assess the impact of the previous boom episodes (up to Q2 2008) on the companies strategies, the following areas are investigated: Early warning systems, impact on the construction companies, turn over, mark up and tender prices, cost of materials and subcontract works, impact on the different sectors of the construction industry and evaluation of main opportunities during the boom.
The different aspects of the companies’ approaches are appraised; companies’ objectives, strategies and plans adopted by different functions including finance, business development, contract and commercial management, supply chain management, site management and human resource management will also considered. The research concludes with recommendation of sustainable strategies to immunize companies from effects of ups and downs in the economy.
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