BSBMGT615: Boutique Build Australia Is A Building Company Specializing In The Design And Building: Contribution To Organization Development Assignment, UA, Australia

Executive Summary

Established in 2013, Boutique Build Australia is a building company specializing in the design and building of high-quality designer homes for the Sydney metropolitan and surrounding areas.

Our vision – to be the best home builder in Australia – drives everything we do, from the friendly greeting we give to customers at our display center, to our supplier relationships, and to our employees’ professional development.

Vision 

To be the best quality home builder in Australia.

Our values are:

The core values underpinning our activities are:

1. Quality

2. Innovation

3. Leadership

4. Respect

5. Honesty and Reliability

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Strategic Priorities

Key strategies:

(A) To be well-led, high performing, profitable and accountable

1. Ensure that all financial operations, performance indicators and results support the strategic policies

2. Identify new and expand existing sources of revenue

3. Achieve profits of at least 10% per annum.

(B) Build high-quality residences to meet customer needs and aspirations

1. Increase sales of homes in the current Sydney market by 10% per annum over the next three years.

2. Establish a presence in Queensland and build at least 100 new homes in Brisbane and the Sunshine Coast during the period of the Strategic Plan.

3. Research and plan for the launch of new innovative, environmentally friendly homes

(C) Continue building deeper customer relationships

1. Customer-centered practice, with a focus on meeting their total needs for a high-quality home

2. Strengthen the skills of our people, to better support customers

3. Drive innovation to better meet customer demands

(D) Attract, engage and develop the best staff

1. Continuing the drive to a customer-centered, high-performance workforce and culture

2. Strengthening the skills of our people, to better support customer needs

3. Empowering innovation and responsiveness to change

4. Continuing to enhance the diversity of our workforce.

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Market characteristics & conditions

The construction industry had been facing a stagnant phase in recent times, however, experts predict a turnaround, providing real opportunities in the sector. Although much of the construction industry is expected to see real growth in the coming 12 months, it is the residential building sector that should experience the most growth.

The Housing Industry Association (HIA) recently released the summer 2015 edition of its National Outlook and announced that this year would see a new record of homes commenced.

According to the statistics, a record 195,936 new dwelling commencements were forecast in 2014/15 – a 7.7 percent growth on the previous year. It is also important to note that this represents the third year in a row where residential construction has improved. This is a vital part of the overall Australian economy.

Although a number of states are set for an increase, the Sunshine State is set to experience the most growth. The Queensland Government is providing support by offering first home buyer/builder grants as well as easier procedures for development application approvals.

If you were to compare all the major Australian industries – construction, manufacturing, engineering, and mining – construction is the only one that is expected to see real growth in the coming years.

Globally it is expected that the construction industry will grow from $7.2 trillion to over $12 trillion.

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The global construction industry has a number of challenges and opportunities according to a recent report by Global Construction Perspectives and Oxford Economics. A number of factors are expected to affect outcomes:

1. Countries’ decisions with respect to carbon reduction, climate change, waste disposal, clean technology and renewables?

2. Emerging economies, in general, are expecting large population increases in the coming decade creating demand for construction activity whereas population growth in developed countries will be flat.

3. The key area of construction growth in emerging countries will be infrastructure: transport, energy, social infrastructure, schools, hospitals, government accommodation, water, defense infrastructure and natural resources. These projects are expected to increase by 130% in developing countries by 2020 but by only 20% in developed countries.

4. Eastern Europe and Russia are expected to expand construction by 100% primarily led by Poland and Russia by 2020.

5. China is expected to become the world’s leading construction market by 2018 with a construction output of $2.5 trillion.

In the future, trends in technology, particularly information technology (IT), maybe the greatest driver of change in the building and construction industry. Electronic tendering and documentation, data communication, virtual design, shared project data and databases, construction automation, and energy management will have a significant impact on industry practices. Those parties that are slow to react to these trends will have difficulty in remaining competitive.

Project Managers, Structures Forepersons, and Commercial Contract Administrators will be at the top of any wish list for construction businesses this year.

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