Challenges Of Construction Industry
The continuous changes in the construction industry environment are causing customers to have more power in this more interconnected world. With companies whose power is based on value creation and shared value. Construction Companies in Lahore.
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These are generating the challenge of strengthening capacities to capture opportunities from chaos and threats. Thus, globalization influences the way of living, the way of relating and doing business.
Mission For Construction Companies
Companies in the construction sector are not exempt from these challenges, as is the case of the member companies. The trade association whose main purpose considers promoting the development and promotion of the construction activity. As a fundamental lever for the development of the country in the context of a social market economy based on private initiative. It also seeks to support the welfare, especially construction workers and their families, through its Social Network; whose mission is:[Our mission is to support welfare through the development of the construction sector and private initiative. As a representative of national progress and equality with the improvement of the public sector.]
Fastest Growing Companies
According to state that the fastest growing companies in this new environment seem to be those that have taken advantage of these structural changes. And have innovated in their business models so that they can compete in a different way. Construction Companies in Lahore.
These companies have managed to survive over time and it is interesting to ask about the management tools they have developed. Specifically, the business model, and how they use it to manage their business and generate value.
Economic Value of SMEs
The (2013), poses within the strategic management tools that allow increasing the economic value of SMEs. There are business models. That in an increasingly competitive and changing environment, for companies has become a key element for their survival. Furthermore, according to the company’s ability to increase its economic value will depend on how it relates to agents that are part of this environment. And the negotiating power they have. Construction Companies in Lahore.
Business Logic and Interrelated Elements
A business model understood as a conceptual tool that contains a set of interrelated elements. That allows expressing the business logic of a specific company. In (2007), interpret it as the creation and capture of value of a central organization. Considering that the effectiveness of the business model requires alignment with the objectives, virtuosity, and robustness of the same.
Design Of an Organizational Architecture
The (2013) state that a business model is open, a modern and highly useful tool, used by companies to create and capture value in collaboration with external partners. This has similar approach in (2011). When describing the bases on which a company creates, provides, and captures value. From an external perspective, conceive it as the design of an organizational architecture that represents a business opportunity.
Business Model and Benefit for The Company
According the business model allows a company to take advantage of a business opportunity by creating value for the parties involved. That is, meeting the needs and creating surpluses for the customer. Thus, generating at the same time, a benefit for the company and its partners.
Therefore, “value” considered an important constituent of the marketing relationship. And the ability of a company to provide superior value to its customers and considered one of the most successful strategies. Such that economic value created. in a company when the profitability generated exceeds the opportunity cost of the shareholders.
Competition In the Market
Companies that generate innovative business models manage to create unexploited market spaces. And, therefore, niches within the sector. That allows them to grow without supporting the strong competition that exists in the market. This implies a strong engine for obtaining competitive advantages. Also, the dynamization of these. In turn, the business model provides a natural connection between the formulation and implementation of the strategy.
Strategic Management of Company
In this context, business models are a relevant contribution to the strategic management process. Which understood as a framework of action that allows the company to achieve its strategic objectives and goals. Such that, in Each of the stages of the process must establish an adequate integration of the organization with the environment. To achieve consistency between what the environment demands and the strategies formulated by the organization.
In turn, states that the strategic management of companies requires consistent operational actions. Therefore, its effective use requires executive practices aligned with the business model implemented.
Business Model and Benefits of Use
Considering the above, the objective of this research is to analyze the effective use of the business model for the creation of value. In the construction companies that are members of Chamber of Construction, determining its main challenges in the implementation process and benefits of its use.
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