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Question: Discuss About The Journal Of Jilin Institute Of Chemical Technology? Answer: Introduction Aurecon is an architecture and engineering company that have made plans to design and elevate skyscrapers. However, based on the analysis of the statistics provided, it can be said that Auroon does not play major parts in engineering consultancy services in Australia. It does not provide environmental services and in the country. Some of the major competitors of the company include ALS Limited, SGS Australia Holdings Pvt Limited and so on (Aurecongroup.com 2018). Hence, making a move for expansion in a foreign land particularly in Asia can be a challenging factor for the company. The report highlights the challenges that Aurecon may face in the markets of Singapore. PESTEL analysis Political- According to Navarro-Garca, Arenas-Gaitn and Rondn-Catalua (2014), the political environment of Singapore is not hostile, and the state does not interfere with the affairs undertaken by the organisations in the country. This can be a huge opportunity for Aurecon to establish its business. Economic- The characteristics of the economic condition of Singapore can be made with its openness and the manner in which the country possess the ability to be a good financer for organisations. The stable growth of the economy can allow Aurecon to have a steady growth in the market. Socio-cultural- The analysis of the socio-cultural factor of Singapore shows that the country has a good amount of talents and skills in the economy (Lim 2018). It includes proper understanding and knowledge of the engineering that may help the company to gain success. Technological- This is one of the biggest threats to the company, as in the modern world technology is an important factor. The need for manual labour is more in the industry and thus, it is essential to hire people with proper technical expertise. Environmental- Herbet et al. (2014) stated that the environment of Singapore is one of the best in the world. The Government and legal rules apply for the protection of the environment. This can be a threat to the company, as construction sites may emit threat to the environment. Legal- Some of the areas in which Aurcon may face threat are the legal issues protecting the environment. Apart from this, the legal laws of Singapore provide opportunities for high growth in the market. To do so, sustainability needs to be a focus of Aurecon. Thus, based on the PESTEL analysis, it can be concluded that the external factors of Singapore are favourable for Aurcon. This is because the company can be benefited by the richness of economic growth and the talents that the country have. In the future, the growth of technology can help the company grow more in the economy. Hence, a technical expertise team is required for growth (Herbet et al. 2014). The important elements that affect the external analysis include the rate at which technology can grow in the market along with the opportunities that may befall Aurecon in the economy of Singapore. These two elements can help in determining the success and growth of the company in Singapore. Porter's five forces Threat of new entrants- According to Gilbert (2015), the threat of new entrants in the markets of Singapore can be considered to be medium, as Singapore is open to negotiating with a business organisation that brings about economic growth. Hence, engineering and construction industries with potential can have a significant impact on Singapore. The key elements for the new entrants include the technical advantage that the new organisation may impose in the market. However, it may lack the reputation to score big in the economy. Threat of substitutes- This threat can be considered as low as Singapore as the threat of substitutes mainly consists of replacing one product with other (Ismail and Kuivalainen 2015). In the case of Aurecon, the company is one of the biggest engineering companies. Hence, the rate of return that the company have and the fact that the Government finances it makes this threat looks insignificant. Bargaining power of buyer- The buyer includes the Government of the country. In this case, constructing skyscrapers require the legal permission from the Government. Hence, it is important for Aurecon to mitigate the high threat that may arise by providing proper sustainable factors that govern the industry. The key elements to this include the prices required for carrying out the construction and the features it may have for development. Bargaining power of suppliers- This threat can be low for Aurecon as the company is financed by the Government of Australia. Hence, the sellers of products to the company do not have much bargaining option (Kane, Aman and Alam 2015). The fact that Aurecon is famous for building sustainable products makes it difficult for sellers to re-negotiate terms and condition with the company. Degree of rivalry- Some of the rivals that Aurecon has included ALS Limited, SGS Australia Holdings Pvt Limited and so on. These companies have a stronghold in another such environmental science service, management consulting service and so on. Hence, this poses a high threat to the company. Thus, it can be concluded that overall the company can benefit from setting up business n Singapore. The factors that pose a threat to the industry can be mitigated by cashing-in on the opportunities that arise in the economic growth. The entry to the market may require an expenditure of huge revenue; however, owing to the reputation and the support from the Government, Aurecon can become a huge success in Singapore. Industry life cycle curve According to Yan-hong (2015), industry life cycle measures the success rate of a company or product. The manner in which a product or company may evolve in the industry is determined by analysing four stages that exist in the industry life cycle stage. These include introduction, growth, maturity and decline. In the case of Aurecon, the company may suffer a similar transition phrase in its quest to finding success in the markets of Singapore. Introduction- During the introduction stage, Aurecon can witness the small amount of response from the customers and sellers. This is because the company brings in new expertise in the market that can be used effectively for ensuring the growth of the market in a proper manner. Growth- At this stage, the company can build in the required reputation to excel in the market. The growth can be measured by the amount of response the company is getting and the quality of service that is being provided keeping in mind the environmental laws of the country. Maturity- This is the stage where Aurecon, can develop ways to stabilise its growth. This can be done by innovating and creating new ideas about the ways to improve the services. For example, as stated by Dibrell, Fairclough and Davis (2015) Aurecon can focus on maintaining the sustainability of the environment. Decline- At this stage, the customers starts to lose its interest from the company or product. This is usually because of the emergence of a new market or due to the longing for new and innovative services. Aurecon needs to come up with innovative constructing ideas to mitigate its decline. Needs of the customers Price- According to Dockalikova and Klozikova (2014), one of the most important aspects that customers need to be perfect is the price. Customers need to have the best quality product at a pocket-friendly price. Hence, it is essential for the Aurcon to maintain the prices of the construction of their project at a minimum amount. Quality- As stated earlier, price and quality exist side-by-side. Quality of service has to be good so that customers can have faith in the product or company. In the case of Aurecon, it is essential that the company ensure that the best quality is maintained by analysing the needs and demands of the customers. Dependability- Another important quality is the number of dependence customers can have on a company. This can be related to the stages of product development, as fall in the quality of services or products can hamper any chance of maintaining a steady growth in the market (Kuratko, Hornsby and Covin 2014). Flexibility- Flexibility means the ways by which a company can innovate its product. In the case of Aurecon, the company need to ensure that the flexible nature of its operations can help it to gain success in Singapore. This includes maintaining sustainability in the environment. Speed- The speed at which products and services are delivered is also taken into account (Grnig and Khn 2015). Hence, it can be said that Aurecon needs to finish its constructions at a quick time so that customers can appreciate the project of the company and help in its reputation. After the analysis, it can be said that Aurecon provides a reasonable price for the services that it provide. This leads to the gain of profit in the company. The fact that the company segments its market is another huge advantage for the company. In this manner, Aurecon can be flexible in the work it does and aims to meet the requirements of the customers. Efficiency In the light of the analysis of the needs of the customers and the services provided by Aurecon, a spider web diagram can be drawn that can help in understanding the rate at which Aurecon satisfies its customers. The factors presented in the chart are similar to that presented in the analysis of the needs of the customers. Price: It has been seen that the price of the products and services of the company is reasonable and customers can afford to invest in the construction company. In Singapore, the price does not pose a threat as the country has a rich economy that helps in the survival of the people. Quality: The quality of the service provided by the company is usually high and it is important that the company maintains its efficiency in the market. The sustainability factor needs to be maintained so that Aurecon does not violate any legal laws related to the environment in the country (Aurecongroup.com 2018). Dependability: With the high quality of the products and services, it is easier for the company to earn the trust of the people. This is an important step for maintaining a competitive advantage as Aurecon needs to increase the reputation in the market to grow and dominate the engineering industry of Singapore (Armstong et al. 2015). Flexibility: The flexibility of the company depends upon the services it provides. Aurecon needs to ensure that the flexibility it provides is line with the services that it provides to the company. Speed: The speed at which the company completes its works aligns with the resources and capabilities it possesses. Expertise According to Eisingerich et al. (2016), the expertise of a company depends upon the ways by which the resources and capabilities are utilised. Expertise may consist of the knowledge and skills of a company and the manner in which it can implement it to get favourable results for the benefit of the company. The analysis of the external factors that may help Aurecon set up a profitable business in Singapore shows that the company needs to improve in its technical level. In the modern day, technology plays a key role in the success of a company (Albrecht et al. 2015). Hence, it is necessary that Aurecon maintain its technical expertise in order to gain success in a technical market. The analysis of the company suggests that the engineering and construction industries are indulging in the aid of technology to reduce the amount of human labour. This can be an advantage for the company as a cost of paying the labours can be reduced with the help of technology. Thus, this expertise needs to be developed so that Aurecon can be competitive in the markets of Singapore. Strategic capabilities The strategic capability of a company includes the variations that it can make to its products. The variations include certain factors that need to be fulfilled to ensure that the company does not deal with the competitive disadvantage that may come in its way. According to Blut et al. (2015), the resources and capabilities of a company remain in focus while maintaining the strategic capability. In the case of Aurecon, the company needs to analyse its resources and the capabilities that it has that may make it favourable in the market of Singapore. From the analysis, it has been seen that Aurecon have a vast number of resources that can help the company to cope up with the challenges that exist in the market. The capabilities of the company depend upon the response provided by its target customers and the manner in which customers accept the service. For example, it has been seen that Aurecon manages the construction sites in a different manner. Before investing in a new venture, the company conducts a proper analysis of the market. This helps it to understand the level of threat that exists in the market and the level of support that the organisation can provide it (Aurecongroup.com 2018). During the construction of skyscrapers, the company need to ensure that the competitors replicate the resources. Instead, it needs to be valuable to the customers so that loyalty is maintained among the customers. VIRO Resource or capability Valuable Rare Imitable Organised to exploit Impact on competitive advantage Presence in the global market Yes Yes Yes Yes Competitive parity Talented employees Yes No No Yes Competitive advantage Technical expertise No No Yes No Temporary Competitive disadvantage Regard to environmental sustainability No Yes No No Temporary Competitive disadvantage Table 1: VIRO analysis (Source: Created by author) The VRIO analysis shows that Aurecon has a competitive parity in the global market. This means that the competitors can easily use the products and services manufactured by the company. However, the main concern is the fact that the company lacks technical expertise and a regard for the sustainable environment. This can be a huge weakness for the company not only in Singapore but also in other areas (Aurecongroup.com 2018). Sustainability and technology are the two factors that are important for the steady growth and survival in a competitive market. Hence, it is essential that Aurecon develop these services so that it can beat its competitors. However, the positive factor from the VIRO analysis is that the company have talented employees that can help in overcoming this challenge. This is one of the advantages of the company based on which the internal capability of the company can be forecasted. SWOT Strength High profitability High revenue Barriers to new market entry Weakness Future market growth Brand Lack of technical expertise Opportunity Newmarket Venture in capital Steady economic growth Threat Risks in external business Price exchange Technological problem Table 2: SWOT analysis (Source: Created by author) From the analysis of the SWOT, it can be concluded that Aurecon has a huge profit and revenue collection that makes it possible for the company to grow and expand. Due to the high profitability and revenue, it creates a barrier for new markets to enter as it provides stiff competition. However, one of the major weaknesses of the company is its lack of technical expertise. This weakness has been the factor in the stunted growth of the organisation. The brand name of the company cannot be recognised without the implementation of proper tactics that involve the technical expertise in the market. Hence, it is required that the strengths of Aurecon act provide the support necessary for mitigating the weakness of the company. The SWOT analysis also provides useful insights about the opportunities that the company can endure. The fact that it is planning to expand its business in a new market is an opportunity for growth. The capital required for this venture can be derived from the revenue. The steady growth in the economy of the country is another factor that provides an opportunity for the company. However, the risk that is posed by the external business is an indication that Aurecon may have its resources easily imitated by its competitors. The rate at which the company exchanges its prices also provides threats that need to be mitigated by the company. Similarly, the weakness of technical factor also poses a threat to the company. This is because the company need to ensure that the threats posed by the lack of the technical expertise also exposes the company to its competitors. Based on the SWOT analysis it can be said that the major threats and weakness of the company include the lack of technical expertise and its brand image. Hence, to take the opportunities provided to them, it is essential that the company hire local people. This can be risky given the fact that not all people in the locality are technically sound. Another way to mitigate the issue can be by establishing a technical branch in a foreign country and import technical people from the branch. Confrontation matrix Madhavaram, Hunt and Bicen (2017) stated that the confrontation matrix can be used to further analyse the SWOT matrix. It provides an analysis of each combination of strengths and weakness that exist in the internal environment. This helps to identify the most important strategic issues that a company faces. Opportunity Threat O1 O2 O3 T1 T2 T3 Strength S1 8 4 6 3 3 4 S2 3 2 6 7 S3 5 8 2 Weakness W1 4 7 4 3 W2 1 6 5 7 W3 5 5 9 Table 3: Confrontation matrix (Source: Created by author) Conclusion Thus, it can be concluded that in order to grow in the competitive market, Aurecon needs to analyse the resources and capabilities it possesses. The manner in which the company can rectify its technical drawback depends upon the support it receives from its employees. Furthermore, the opportunities derived by the company after analysing the external factors shed light on the fact that Aurecon has the potential to grow in the market of Singapore. The richness of the economy and the growth in the market of Asia over the last few years can contribute towards the success of the company. The strengths and opportunities of the company can help it to gain the necessary focus for the advantage in the market. However, it is necessary to analyse the threats and weaknesses that exist in the market. 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