Strategic Evaluation Of Grdm

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

By 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

1. OVERVIEW 3

2. Key elements of the organisational system 5

3. The external environment 9

4. The core operations 12

5. The value chain and vertical linkages 13

6. The customers 13

7. Financial performance 13

8. The organisation 13

9. Relevant schools of thought 13

10. Conclusions 13

11. Recommendations 14

12. References 14

13. appendices 14

1. 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.

GRD's 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.

2. 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

...