Industry Analysis: Real Life Implications Of Managerial Concepts

Submitted By shorokhan
Words: 4135
Pages: 17




Table of contents

# | Contents | | Industry analysis | | External environmental factors influencing industry change | | Background of the company | | Product description : | | Business process for Atech Solutions | | Business process flowchart | | Atech supplier’s flowchart | | Value Chain | | Activities and cost drivers | | Fixed cost and variable cost identification: | | |


Introduction to construction industry
Construction industry consists of those businesses mainly engaged in construction of residential and non-residential buildings, engineering structure and related trade services classified under the Australian and New Zealand standard industrial classification (ANZIC) 2006.
Construction industry has increase its importance as a share of economy over the last 10 years, from 5.6% of gross industry value added in 1996 to 7.3% in 2006-07. Between 2008-09 and 2009 and 2010, total income for the industry increase by 6% to $281 billion. Capital expenditure decreased overall by 3% between 2008-9 and 2009-10 with a fall of 17% in construction services. One of the strongest performers in Australian economy over the past twelve periods is the non- residential construction industry that contains infrastructure, commercial property and mining and resource projects.
Industry structure
The construction industry in Australia comprised of about 320,000 enterprises, of these enterprises about 60% are sole traders with nearly employing between 1 and 4 people. Overall the sector is employing more than 1,000,000 people.
In 2002-03, the construction and building industry in victoria contributed 6% to Gross state product, making it the sixth largest industry. In victoria this contribution has fluctuated from a low of 5.2% in 2000-01 to a high of 6% in 2002-03. There was an increase of construction work in 1999-2000 because of work was brought forward prior to the changes in new tax system, followed by a large downturn in 2000-01 after its implementation.
In 2002-03, the industry employed 183,800 people which are 7.7% of total workforce in victoria. Of the total work force employed in the industry in Victoria, 64.3% were employed in construction trade service and 35.7% were employed in general construction.
Graph: Contribution of construction to GSP and GDP

External environmental factors influencing industry change
Factors of changes are the drivers that make a difference in industry. These factors lead the company to change their planes and actions because they change the industry. The challenges and factors that change the industry includes social, technological, environmental, economic and political.
Population growth and demographics
Population growth affects planning, transport and housing. The Australian population is expected to grow to approximately 30 million by 2021. The aging of population is expected to increase from 36.8 in 2007 to 40.7 by 2026. Thus, aging population may look for safe, low cost and low maintenance housing options.
Skill shortage
Skill shortage may also affect the ability to design, develop and manufacture building materials in Australia. The aging population growth also affects the people in work and therefore available to the building products industry. Declining number of students enrolling in science and technology affect the provision of relevant specialists
Affordability and access
Affordability may also affect the building material industry; it put pressure on building cost, limiting the uptake of enabling to those that reduce material costs. On other hand access to the market is a critical factor to the industry future.
Consumer attitude affect technology uptake
Changing in consumer demand affects technology uptake. Changing consumer’s taste may drive demand for different