Question

Caplin Construction is a construction company founded in 2005. Most of Caplin's clients are government entities such local city and state government agencies. The company has little experience bidding on, or designing projects, for private businesses or industries. Recently budgets for government projects have been cut and the company now sees that they must begin to pursue contracts with private businesses and industries. The company has learned about a new large hotel chain entering the state. Caplin knows the hotel chain will need parking structures and parking lots for all of the new hotel properties and Caplin would like to bid (and hopefully win!) the contract. Which function of Caplin Construction would have primary responsibility for defining a business strategy that would create success for the company in this environment?

Answer 1

Answer:

In the case of Caplin construction, the business function would be primarily responsible for defining the business strategy to ensure success in this environment.

Explanation:

Strategy is a set of guidelines that help a in the field of business to steer a company in a direction that will improve its ability to succeed in the ever competitive business environment.

The construction industry in particular has been changing drastically over the years in terms of the clients. Traditionally, the construction industry received contracts from the government more than private businesses or industries, however this has been changing in modern times with the growth in the private sector.

Additionally, each sector has unique expectations not only in how successful bidders win, but also in the quality of the construction works. This means that bidders need to have specific strategies in place to be successful.

In the case of Caplin construction, the business function would be primarily responsible for defining the business strategy to ensure success in this environment. Since the government had budget cuts, this means that opportunities for making money in the public sector were reduced there for minimizing Caplin Construction's ability to succeed as a business. This means that in order to succeed in the new business environment, the company needs to form sound business strategies.