Strategic Evaluation Of Grdm
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PRINCIPLES OF STRATEGIC MANAGEMENT
A STRATEGIC REVIEW OF GRD MINPROC IN TERMS OF THE TEN SCHOOLS OF THOUGHT
PART TIME MBA 2005/2008
PRINCIPLES OF STRATEGIC MANAGEMENT
LECTURER: D. ROSSOUW
SYNDICATE 8
C.P. CHAPPLE
M. FELIX
R. ELINGWORTH
P. MTHETWA
M. NKHUMELENI
29TH SEPTEMBER 2005
Word count 2094 (Body of document)
TABLE OF CONTENTS
OVERVIEW
Key elements of the organisational system
The external environment
The core operations
The value chain and vertical linkages
The customers
Financial performance
The organisation
Relevant schools of thought
Conclusions
Recommendations
References
appendices
OVERVIEW
GRDMinproc (GRDM) is a leading international engineering contracting company providing advanced technical and development solutions, project delivery and asset management services to the global mining, minerals processing, infrastructure and environmental sectors.
GRDMinproc undertakes projects from its head office in Perth, Western Australia and offices in Johannesburg, South Africa; Santiago, Chile; Belo Horizonte, Brazil and Lima, Peru.
Founded in the 1970s, the Australian public company grew rapidly on the strength of the high quality engineering services it provided to the Australian gold industry. In April 2000, the company was acquired as a wholly owned subsidiary of its major shareholder – GRD NL.
GRD is a resource and development company listed on the Australian and New Zealand stock exchanges with a market capitalisation of R2.6bn.
GRDs business base also comprises the Australasian gold producer, Oceana Gold and the innovative waste management operations of Global Renewables.
Today, GRDMinproc is among the few engineering companies that service the entire resources product development cycle, from feasibility, through to project delivery and into ongoing maintenance and operational needs.
Over the past two decades GRDM has
successfully completed more than 500 assignments, including 300 feasibility studies and 200 major design and construction projects in more than 37 countries across the globe.
GRDM comprises three operational areas being
Technical and development solutions
Project delivery
Asset management
The focus of this assignment is within the South African operational arena within the context of the strategy shaped by the group.
Key elements of the organisational system
The Mission of GRDM is to work in partnership with clients in the resources, environmental and infrastructure sectors to develop and optimise their assets by applying exceptional people, technology and systems. The organisations objective is to be the partner of choice for the delivery of resource, environmental and infrastructure solutions.
The organisational strategy is aimed at attaining the primary objective through creating a long term financially robust sustainable business involved in a global business with representation in the major resource areas. Sustained growth to be achieved by means of a continuous study and project pipeline such that revenue growth is in the order of ten fold and employing selective choice of clients and projects by means of risk management techniques. Project selection is based on the project / technology position in the lifecycle with the growth sector being the area of choice.
Aspects of the tactics are;
Increase the order book pipeline
Preferred bidder positioning
Selective choice of projects / clients
Technology differentiation
The key variables which influence the organisational impact and functioning are shown in annexure 1. The matrix shows that the following key variables are of major importance;
Commodity cycle
Service demand
Resource skills
Political stability
brand
SWOT incorporating PESTEL
Strengths
GRDM brand
African experience
BMS procedures
Innovative
Capital