MSc Project Management for Construction Strategic and General

Management
 Table of contents
1. Introduction................................................................................................................2
1.1. Aim of the study..................................................................................................2
1.3. Scope...................................................................................................................2
2. The organization.........................................................................................................3
3. Environment analysis.................................................................................................4
3.1. P.E.S.T.E.L. analysis............................................................................................4
3.2. S.W.O.T. analysis.................................................................................................5
4. AECOM strategy........................................................................................................9
4.1. Cost leadership strategy.......................................................................................9
4.2. Differentiation...................................................................................................10
4.3. Focus..................................................................................................................11
5. Recommendations for future directions...................................................................12
5.1. Opportunities.....................................................................................................12
5.2. Recommendations.............................................................................................12
Conclusions..................................................................................................................14
References....................................................................................................................15
Appendix......................................................................................................................16
P.E.S.T.E.L. analysis.................................................................................................16
S.W.O.T. analysis......................................................................................................19

1
1. Introduction
Although it's hard to predict the future, it's important to look ahead and
consider your options. Disruption is a part of daily life in the infrastructure sector for
asset owners, governments, contractors, designers, and the general public. As the
coronavirus pandemic has shown, there is always a chance for more disruption. The
future of the industry is evaluated in this report along with possible adjustments that
the infrastructure sector may need to make in order to thrive and advance in a volatile
world (Rahman, 2016).

In order to make predictions about the future, a broad group of AECOM

leaders and experts has spent the last six months going through a scenario planning
process with help and feedback from all around the company (Vrontis & Sharp,
2003). Every now and then, new services and technologies emerge that offer us a
glimpse of what's to come, like mobility-as-a-service or machine learning. However,
projecting the level of adoption of these new services or technologies posed a
significant challenge for scenario planners. The future is even more uncertain due to
geopolitical and regulatory uncertainties, making it extremely difficult to predict even
one scenario (Galpin, 2019).

1.1. Aim of the study

The purpose of the following report is to describe the strategic position of a
construction company, as a case study, namely AECOM. In more detail, the internal
and external environment of the company, its current strategic position, as well as
suggestions for a dynamic strategic future that will yield sustainability and a strong
competitive position will be made.

1.3. Scope
This report is prepared with input from AECOM's annual strategic reports,
financial analyses, PESTEL & SWOT analysis, publications on the company's
challenges and any other relevant sources.

2
2. The organization
A well-known multinational company in its targeted market segments is
AECOM Company. Without making major efforts, AECOM finds it difficult to
maintain its market leadership position and grow its market share in the face of the
industry's escalating competition. In order to maintain an advantage over competitors,
AECOM is being forced by the current business climate to do so (AECOM, 2022).

AECOM, a multinational brand with a significant global presence, has

established its competitive positioning around a few key elements that give it a
significant advantage over competitors.

3
3. Environment analysis
3.1. P.E.S.T.E.L. analysis
Political Factors

The variables that can affect AECOM's long-term profitability in a particular

nation or market are largely determined by political considerations. Because it
provides technical services in over a dozen nations, AECOM is subject to a variety of
risks pertaining to the political system and environment. Diversifying the systematic
risks of the political environment is necessary to succeed in the highly dynamic
technical services industry across multiple (AECOM, 2022) (Appendix p. 16).

Economic Factors

An economy's total demand and total investment are determined by

macroenvironmental factors such as the rate of inflation, savings, interest, foreign
exchange, and economic cycle. Conversely, the firm's competitive advantage is
impacted by microenvironmental factors like competition norms. The growth
trajectory of the organization as well as the –sectory name-- sector can be predicted
by AECOM using economic factors specific to the country, such as inflation and
growth rate, as well as industry-specific indicators, such as consumer spending and
the growth rate of the technical services sector (AECOM, 2023) (Appendix p. 16).

Social Factors

The manner of life and culture of the society have an effect on the
organizational culture in a given setting. The common views and beliefs of the
populace greatly influence how AECOM marketers comprehend a particular market's
clients and craft their messaging for consumers in the technical services sector
(AECOM, 2022) (Appendix p. 17).

Technological Factors

Technology is rapidly upending many different industries. An excellent

example to demonstrate this is the transportation sector. The industry has changed
incredibly quickly over the past five years, not even giving the established players a
chance to adjust. Players like Uber and Lyft now control the taxi industry. Technology

4
companies like Google are driving the automotive industry's rapid automation, and
Tesla is upending manufacturing with its declaration of an electronic vehicle
revolution. An organization ought to assess not just the industry's technological
landscape but also the rate at which technological advancements are upending the
sector. A business may have more time to adjust and turn a profit at a slower pace of
technological disruption than at a faster one (AECOM, 2023) (Appendix p. 17).

Environmental Factors

The norms and environmental standards of various markets can affect an

organization's profitability within those markets. States frequently have differing
environmental and liability laws, even within the same nation. Texas and Florida, for
instance, have different liability clauses in the event of accidents or environmental
disasters in the United States. In a similar vein, many European nations offer
substantial tax breaks to businesses engaged in the renewable energy industry. The
company should thoroughly assess the environmental requirements necessary to
operate in those markets before entering new markets or launching a new venture in
an already established market (AECOM, 2023) (Appendix p. 17).

Legal Factors

Many nations lack strong enough institutions and legal frameworks to

adequately safeguard an organization's intellectual property rights. Before entering
such markets, a company should thoroughly consider its options since doing so could
result in the theft of the organization's competitive advantage and secret formula
(AECOM, 2023) (Appendix p. 18).

3.2. S.W.O.T. analysis

Strengths

AECOM is a market leader in its industry and has many advantages that help it
succeed in the marketplace. These advantages aid in both breaking into new markets
and preserving market share in already-established ones. According to in-depth
research from Fern Fort University, AECOM's advantages include:

5
 1. Extremely effective in going to market with its products.
2. By creating new revenue streams, AECOM has demonstrated a fair degree of
success in the execution of new projects and has produced good returns on
capital expenditure.
3. AECOM has made numerous investments to create a robust brand portfolio
over the years. This is further supported by AECOM's SWOT analysis. If the
company wishes to branch out into other product categories, this brand
portfolio can be of great assistance.
4. AECOM has developed a reputation for successfully breaking into and
thriving in new markets. The company's ability to diversify its sources of
income and reduce its exposure to market-specific economic cycle risk has
been aided by its expansion.
5. AECOM boasts robust free cash flows, which give the company the resources
it needs to grow into new projects.
6. AECOM has developed a distribution network throughout the years that is
capable of reaching most of its potential market.
7. Thanks to its committed CRM division, the business has been able to cultivate
strong brand equity among prospective clients as well as a high degree of
customer satisfaction among current clients.
8. The company can overcome any bottlenecks in the supply chain because it has
a strong base of dependable raw material suppliers.

(Appendix p. 19).

Weakness

Compared to the industry's fastest-growing players, research and development

investment is lower. Even though AECOM spends more on research and development
than the industry average, it hasn't been able to match the industry leaders in terms of
innovation. It seems like a seasoned company eager to release goods with tried-and-
true features for the consumer. The company is raising more money to invest in the
channel because its days inventory is higher than that of its competitors. This could
hinder AECOM's long-term growth (AECOM, 2023) (Appendix p. 19).

6
 Planning finances is not done effectively and correctly. The company can use
the cash more effectively than it is now doing, according to the current asset ratio and
the liquid asset ratio.

While AECOM has had some success merging businesses with disparate work
cultures, it has also had some failures. Despite being one of the top companies in its
field, AECOM has had difficulty expanding into new product categories given its
current organizational culture. There was much room for improvement in the product
marketing. Although sales of the product are successful, its positioning is not well
defined, which leaves room for competitors to launch attacks in this market (Haron,
2016) (Appendix p. 19).

Opportunities

With the help of the new technology, AECOM can now use a differentiated
pricing strategy in the new market. It will allow the business to attract new clients
with additional value-oriented offerings while retaining its existing clientele with
excellent service (AECOM, 2023).

Government green initiatives will level the playing field for all participants in
the market and present a chance for state and federal government contractors to
purchase AECOM products. This presents AECOM with a fantastic chance to
highlight its technological edge and increase its market share in the new product line
(AECOM, 2023).

The way that business is conducted may be greatly impacted by the new tax
laws, which may also present new opportunities for well-established firms like
AECOM to boost their profitability. The business has made significant financial
investments in the online platform over the last few years. For AECOM, this
investment has created a new sales channel. The business can take advantage of this in
the coming years by getting to know its clients better and meeting their needs with big
data analytics (AECOM, 2023).

7
 The presence of steady free cash flow presents chances for investments in
related product categories. The company can invest in new product segments and new
technologies if it has more cash in the bank. This ought to present AECOM with
opportunities in other product categories. The market is more stable due to the low
inflation rate, which also allows AECOM's customers to get credit at a reduced
interest rate.

Reduced shipping costs can lead to a decrease in the cost of AECOM's

products, which presents an opportunity for the company to either increase
profitability or increase market share by passing the savings on to customers
(Appendix p. 19).

Threats

The last two years have seen an increase in industry players due to stable
profitability, which has decreased profitability and overall sales. The profitability of
AECOM may be seriously impacted by rising wages, particularly in China where
prices are rising to $15 per hour. Due to the company's international operations,
currency fluctuations are a risk, particularly in light of the unstable political
environment in many global markets (AECOM, 2023).

The company can face lawsuits in various markets given - different laws and
continuous fluctuations regarding product standards in those markets. Shortage of
skilled workforce in certain global market represents a threat to steady growth of
profits for AECOM in those markets.

Due to the seasonal nature of the demand for these extremely profitable
products, any improbable event that occurs during the company's busiest time of year
could have a short- to medium-term negative impact on revenue. The company has
created many goods over the years, but many of them are reactions to what other
competitors have developed. Furthermore, the irregularity in the delivery of new
products causes fluctuations in sales figures over time, both high and low. The product
of AECOM is also vulnerable to imitation of low-quality, counterfeit goods,
particularly in low-income and emerging markets (AECOM, 2023) (Appendix p. 19).
8
4. AECOM strategy
To combat the pressure of competition, the company has implemented a mix
of cost leadership, differentiation, and focus strategies. By concentrating on the most
appropriate intensive growth strategies based on three generic strategy streams (cost,
differentiation, and focus), the customer base expansion and sales growth objectives
are achieved (AECOM, 2022).

In order to meet its growth objectives, AECOM used intensive growth

strategies such as product development, market penetration, market development, and
diversification. This article goes into great detail on how AECOM uses intensive and
generic growth strategies to gain a competitive edge.

4.1. Cost leadership strategy

In a variety of consumer markets, AECOM's primary generic strategy is cost
leadership. Managing the value chain effectively is the main goal of this strategy,
which aims to maintain market leadership. With this approach, AECOM can increase
its market share by focusing on the middle class, which accounts for the largest share
of the consumer market mix in the majority of the countries. Cost leadership is the
best approach to meet the needs of this consumer segment, as middle class consumers
typically place a high value on pricing. In order to create a strong competitive
advantage, AECOM concentrates on making its produce affordable and easily
accessible worldwide. This approach results in increased brand awareness and sales
growth. In order to meet sales goals and withstand pressure from its nearest
competitor, AECOM regularly provides discounts and coupons. These sales and
marketing initiatives aim to boost brand recognition and stimulate consumer spending
(AECOM, 2022).

The benefits of AECOM's generic cost leadership strategy have been

discussed in detail, including the ability to quickly establish brand recognition, grow
the customer base, promote consumption, and meet sales targets by highlighting the
accessibility and affordability of the product. The analysis of AECOM's competitive
advantage strategies emphasizes cost leadership as the primary tactic, but the
company also employs differentiation in addition to cost leadership to create a
9
foundation for long-term competitive advantage in the fiercely competitive global
consumer market.

4.2. Differentiation
Another popular general tactic for creating a competitive edge is
differentiation. To meet its growth goals, AECOM combines the cost leadership
approach with differentiation. By focusing on the distinctive aspects of its products,
differentiation, as a secondary generic strategy, enables AECOM to grow its customer
base. By integrating innovation, AECOM hopes to differentiate itself from
competitors and meet the growing health concerns of its clientele. For instance,
AECOM expanded the range of products it offers after researching consumers'
shifting preferences in order to set itself apart from rivals and broaden the range of
business opportunities. AECOM has amassed a solid and devoted clientele thanks to
its unique offering and cost leadership (AECOM, 2023).

By using a differentiation generic strategy, AECOM makes a difference and

sets itself apart from competitors with its product offerings. The company uses
differentiation as a tactic to lessen the pressure from other brands because it is a well-
established, seasoned brand. To set itself apart from other brands, AECOM invests
heavily in marketing, advertising, and celebrity endorsements (AECOM, 2023).

In the company's marketing and communication strategies, differentiation

factors such as extensive experience, being the oldest brand, and strong global
presence are emphasized. In addition to these, the basis for differentiation is also
established by the brand logo. Customers now associate the brand with strength and
distinctiveness thanks to its logo. The fundamentals of the brand have not changed
despite numerous revisions, which is a powerful differentiation. In addition, the
company provides a broad range of aspects to accommodate customers' distinct taste
preferences. It makes use of innovation as a tool to provide unique augmented
services that could please clients and make them choose AECOM over competing
products (AECOM, 2022).

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4.3. Focus
The third generic strategy for competitive advantage is focus, which motivates
businesses to concentrate their efforts on growing the specific segments they are
targeting. Using niche marketing as the foundation of their competitive advantage,
businesses that implement the focus strategy cater to specific market segments. In
order to provide the best value while maintaining low costs, AECOM employs the
focus strategy. By providing for a niche market segment’s need at the lowest feasible
cost, the low-cost focus strategy is implemented. On the other hand, the best value
focus strategy prioritizes the product's taste, size, and design in order to best meet the
needs and demands of the target market (AECOM, 2022).

In order to meet the psychological expectations of customers and optimize

value for money, AECOM continuously refines its branding strategies and makes
modifications to the product design and packaging by concentrating on its product
attributes.

11
5. Recommendations for future directions
5.1. Opportunities
More customers are adopting a green lifestyle that involves buying organic
and ecologically friendly goods. It is recommended that AECOM prioritize the
diversification of its offerings by incorporating eco-friendly products and services that
promote environmental sustainability. By growing and strengthening its position in
developing nations like Brazil, China, and India, AECOM can diversify its sources of
revenue. AECOM's long-term position can be strengthened by the potential for
business enhancement and additional business development. By increasing the
portfolio's diversity and broadening its business operations, the AECOM organization
can reduce its dependence on its current ventures and subsequently strive to enhance
its overall income development (AECOM, 2023).

The competitive strategy and overall directive strategy of AECOM both show
that diversification is currently a minor strategy. The business environments also show
the opportunity to improve the capabilities and strengths of the company. Through the
associations with various businesses, this will also boost its share of the industry as a
whole. A collaboration with actual retailers, for instance, enhances dispersion
(AECOM, 2022, 2023).

The business can also negotiate new contracts and business-to-business

relationships with corporations and other businesses. The external key factors, as seen
in this SWOT analysis section (Appendix p. 19), show that by expanding its
operations to take advantage of the opportunities in the global business markets,
AECOM can strengthen its industry position.

5.2. Recommendations
By developing new goods and services, AECOM can counter the threats posed
by new competitors. Unique offerings not only attract fresh clientele but also furnish
existing clients with a motive to purchase AECOM's merchandise. Additionally,
creating economies of scale to reduce the fixed cost per unit might be a wise move.
enhancing capabilities and investing funds in research and development. In a dynamic
industry like AECOM, where established players define standards on a regular basis,
12
new entrants are less likely to enter. It discourages new players in the industry by
drastically reducing the window of extraordinary profits for new firms (Scholes &
Whittington, 2013).

With the help of several suppliers, an effective supply chain, and product
design experiments utilizing a variety of materials, AECOM can address the issue of
suppliers' bargaining power and enable the company to switch to a different raw
material in the event that prices increase. cultivating dependable suppliers whose
success is reliant on the company. The fact that Wal-Mart and Nike have created third-
party manufacturers whose entire business depends on them and who, as a result, have
far less negotiating power than these companies is one of the lessons that AECOM
can take from these two companies (Meissner & Wulf, 2015).

Developing a sizable clients list will be beneficial in two senses. It will lessen
the buyers' negotiating power and give the company a chance to optimize its
production and sales processes. Customers frequently look for deals and discounts on
well-known products, so if AECOM continues to develop new items, it may reduce
their ability to negotiate better terms. Additionally, new products will prevent
AECOM's current clients from switching to its rivals (Hussain et al., 2013).

The problem of substitute goods and services is one that AECOM can handle.
By putting the customer's needs first rather than just what they are purchasing, by
emphasizing services over products, and by making switching more expensive for
them. By creating a sustainable difference, growing its market share to improve its
competitiveness, and working with rivals to expand the market rather than just vying
for a small market, AECOM can address the fierce rivalry among its current
competitors in the infrastructure services sector (Baker, 2010).

13
Conclusions
One of the main factors contributing to AECOM's success is its aptitude for
selecting the best mix of suggested intensive and generic growth strategies depending
on the state of the market and competition. Overall, the analysis indicates that there
are differences in the costs and risks related to each intensive growth strategy, and that
the firm's selection of each intensive growth strategy is influenced by its choice of
generic growth strategies.

14
References
AECOM. (2022). Environmental, Social & Governance. Annual Report.
AECOM. (2023). Challenge 2023: Scenarios for our future success. Annual Report.
Baker, M. J. (2010). Growth Strategies. Wiley International Encyclopedia of
Marketing.
Galpin, Timothy. (2019). Strategy beyond the business unit level: corporate parenting
in focus. Journal of Business Strategy, 40(5). doi: 10.1108/JBS-01-2018-0011.
Haron, A. (2016). Standardized Versus Localized Strategy: The Role of Cultural
Patterns in Society on Consumption and Market Research. Journal of Accounting and
Marketing, 5(1).
Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix,
environment, and growth-an interactive triangle. Management and Administrative
Sciences Review, 2(2), 196-206.
Meissner, P. & Wulf, T. (2015). The development of strategy scenarios based on
prospective hindsight: an approach to strategic decision making. Journal of Strategy
and Management, 8(2), 176-190.
Rahman, K., M. (2016). Strategic Planning and Marketing Models. In Strategic
Marketing Management in Asia: Case Studies and Lessons across Industries (pp. 59-
110). Emerald Group Publishing Limited.
Scholes, K. & Whittington, R. (2013). Fundamentals of Strategy. Pearson Education
UK. Chapter 1, 1-15, Chapter 2, 19-42 and Chapter 3, 49-70.
Vrontis, D. & Sharp, I. (2003). The strategic positioning of AECOM in their global
marketing operation. The Marketing Review, 3(3), 289-309.

15
Appendix
P.E.S.T.E.L. analysis
PESTEL ANALYSIS - AECOM
CATEGORY RISK IMPACT
Regulator Must adhere to complex
POLITICAL
y regulations, which can
Complianc affectproject timelines and
e costs.
Infrastructur Access to government funds
eInvestment can lead to significant
businessopportunities.
Governme Dependence on government
ntContracts projects can affect stability
dueto policy changes.
Economic Projects like the California
and High-Speed Rail can enhance
Environment public perception and
alBenefits support.
Communit Requires navigating political
y entities, which can be
Engageme complex
nt and time-consuming.
Diversity and Legislation and public
Inclusion policycan drive
Initiatives organizational changes.
Support for Response to crises like
SocialCauses Ukrainecan affect brand
image and stakeholder
relations.
Financial Strong financial results can
ECONOMIC
Performance attract investors and provide
capital for growth.
Investment in Strategic resource allocation
Growth can lead to long-term
economic benefits.
Market Position Competitive advantage and
earnings power affect
stakeholder confidence.
Job Creation Job creation through projects
like the California High-Speed
Rail supports economic
development.
Investment in Human capital management is
People key to operational success and
employee satisfaction.
Corporate Awards and rankings boost
Recognition brand value and market
attractiveness.
Community and Philanthropic efforts enhance
Social Investment CSR and brand reputation,
impacting economic standing.
MITIGATION
Use of advanced tools
likePlanEngage™ to
ensure compliance and
effective
stakeholder engagement.
Staying abreast of IIJA grant
requirements and aligning
business strategies
accordingly.
Diversifying contract portfolio
andmaintaining strong
government relations.
Emphasizing the project's
benefitsin public
communications and
government dealings.
Developing strong local
partnerships and
community
programs.
Implementing robust
D&I programs and
monitoring legislative
changes.
Strategic CSR initiatives and
alignment with company
values.
1
Continuous improvement of
operational efficiency and
strategic investments.
Focused investments in high-
growth areas and talent
acquisition.
Innovation and maintaining a
strong brand presence in the
market.
Engaging with local communities
and small businesses for inclusive
growth.
Offering competitive benefits and Investing in employees ensures a skilled workforce
development opportunities to
retain talent.
Leveraging recognition in
marketing and stakeholder
engagement strategies.
Strategic CSR initiatives that align
with business objectives and
values.
MSc Project Management for
Construction Strategic and
General Management
NOTES
Compliance ensures project legitimacy and can
enhance reputation, but requires diligent
management and can increase operational
costs.
The IIJA presents growth opportunities, but
competitive grant processes and compliance
withstringent requirements are necessary.
Government contracts provide steady work but
carrythe risk of political shifts that can alter or
cancel projects.
Such initiatives align with sustainability goals and
canattract support, but may face political
opposition or budgetary constraints.
Engagement can build trust and support for
projects,but may require significant investment and
can be
affected by local political climates.
These initiatives can improve company culture
andcompliance with laws, but may require
ongoing adaptation to evolving political
landscapes.
Support for social causes can enhance reputation,
butmust be managed to align with stakeholder
expectations and company interests.
Robust financial performance positions AECOM for
growth but requires maintaining industry-leading
margins and managing cash flow effectively.
Investing in growth areas and professionals is crucial
for future success, but must be balanced with current
economic conditions.
AECOM's market position influences its economic
stability; thus, it must continually adapt to maintain
its competitive edge.
Job creation not only fulfills social responsibilities but
also enhances AECOM's economic contribution to
local economies.
but requires significant financial resources and a
supportive corporate culture.
Recognition enhances AECOM's economic prospects
but must be part of a broader strategy to capitalize
on the brand's value.
Community investment can improve brand reputation
and stakeholder relations, contributing to economic
success, but must be carefully managed to
align with business goals.
16
 Equity, Diversity, and Enhances innovation and Implementing global training and AECOM's commitment to ED&I is crucial for

SOCIAL
Inclusion (ED&I) client outcomes. measuring progress against ED&I fostering an inclusive culture and can lead to
targets. better business outcomes, but requires ongoing
effort and accountability.
Community Strengthens brand Philanthropic efforts and programs Community engagement enhances AECOM's
Engagement and reputation and stakeholder connecting communities with the social footprint and can lead to new
Support relationships. industry. opportunities, but must be aligned with core
business values.
Employee Resource Promotes an inclusive Support and promotion of ERGs within ERGs contribute to employee engagement and
Groups (ERGs) workplace and employee the company. retention, but their success depends on active
satisfaction. participation and company support.

Social Value and Projects like Network Rail in Strategic partnerships and community- Adding social value through projects can improve
Economic the UK contribute to societal focused projects. public perception and create economic
Opportunities development. opportunities, but requires strategic alignment
with broader company goals.
Workplace Attracts and retains talent by Expansion of flexible work policies and Flexible work arrangements can lead to a more
Flexibility respecting diverse work programs. satisfied workforce, but must be managed to
styles. ensure productivity and collaboration.

Investment in Employee development leads Personal and professional development Investing in employee growth is key to AECOM's
People to a more skilled and loyal initiatives. success, but requires a commitment to long-term
workforce. investment in human capital.

Social Enterprise Builds relationships with Initiatives like the Innovate Cultural inclusivity initiatives can enhance
and Cultural indigenous communities and Reconciliation Action Plan and Te Kaa AECOM's social responsibility and market reach,
Inclusivity promotes inclusivity. Program. but must be genuine and well-integrated into
company operations.

Technical Skill Enhances service quality and Structured learning opportunities AECOM's focus on technical skill-building is
TECHNOLOGICAL

Building and innovation. through Technical Practice Networks essential for maintaining a competitive edge and
Professional and Academies. fostering a culture of excellence, but requires
Development continuous investment.
Digital Tools and Improves efficiency and Launching digital-focused groups and The adoption of digital tools like BIM and GIS is
Platforms client engagement. utilizing advanced platforms like critical for modern project management, but
PlanEngage™. must be integrated smoothly into existing
processes.
Digital Adoption Drives business growth and Aligning Technical Practice Groups with AECOM's investment in digital innovation
and Innovation service improvement. digital solutions and investing in AI and positions it at the forefront of industry trends,
geospatial analytics. but requires ongoing R&D and market
adaptation.
Global Accelerates project delivery Leveraging digital tools for remote The ability to collaborate globally is a significant
Collaboration and and expertise sharing. collaboration across the EC. advantage for AECOM, but depends on robust IT
Work Sharing infrastructure and a culture supportive of work
sharing.
Digital Product Meets evolving client needs Development and launch of digital AECOM's digital product development indicates a
Development and opens new markets. products like PlanEngage™ and proactive approach to market needs, but requiresa
PipeInsights™ on platforms such as clear strategy for R&D and commercialization.
Azure.
Learning Platforms Ensures workforce is up-to- Providing access to learning resources Continuous learning is vital for employee
date with the latest through AECOM University and development, but must be aligned with the
technologies. partnerships with LinkedIn Learning, company's strategic technical direction.
Autodesk, Bentley.

Sustainable Aligns with global ESG Advisory practice and setting net AECOM's strategy positions it as a leader in
ENVIRONMENTAL

Legacies Strategy sustainability trends and zero targets. sustainability, but requires continuous innovation and
client expectations. adherence to rigorous standards.

Environmental Enhances reputation in Involvement in complex remediation Providing remediation services showcases AECOM's
Remediation environmental management. projects like the Faro Mine Program. commitment to environmental stewardship, but
Services projects must be managed to mitigate any potential
risks.
Water Addresses global water Implementing advanced water AECOM's work in water treatment demonstrates its
Purification and scarcity and sustainability. purification programs. role in sustainable development, but requires staying
Treatment at the forefront of technological advancements.

LEED Gold- Reflects commitment to Designing and completing sustainable Pursuing LEED certification for projects enhances
certified Projects sustainable construction and certified infrastructure. AECOM's marketability, but involves stringent
practices. compliance with environmental standards.

Natural Capital Contributes to environmental Conducting long-term environmental AECOM's involvement in environmental restoration
Laboratory restoration and value. projects to restore natural capital. projects underlines its dedication to sustainability,
but such projects require long-term commitment and
resources.
Social Enterprise Connects community Supporting initiatives that educate and AECOM's support for social enterprises like The Land
and engagement with involve youth in sustainability. Collective integrates social responsibility with
Environmental environmental goals. environmental education, but effectiveness depends
Sustainability on the impact and reach of these programs.
Innovate Promotes inclusivity and Developing frameworks for inclusion The Reconciliation Action Plan in Australia reflects a
Reconciliation environmental stewardship. and participation of indigenous holistic approach to business that includes
Action Plan communities. environmental considerations, but requires genuine
engagement and continuous dialogue.
Cultural Builds cultural appreciation Leadership training in programs like Te AECOM's cultural inclusivity efforts in New Zealand
Inclusivity and and environmental Kaa to understand Māori culture and enhance its environmental understanding, but must
Environmental awareness. environmental perspectives. be integrated into business practices to be truly
Understanding effective.

17
 Compliance with Ensures investor confidence Adherence to SEC regulations and AECOM's compliance with securities regulations is

LEGAL
Securities and market integrity. robust disclosure controls. mandatory for legal and reputational reasons, but
Regulations requires diligent internal controls and transparency.

Internal Control Prevents misstatements and Maintaining strong internal financial Effective internal controls are critical for AECOM's
over Financial supports regulatory controls and regular audits. financial integrity, but the complexity of regulations
Reporting compliance. requires ongoing vigilance and adaptation.

Litigation Risks Potential financial and Legal risk assessments and proactive AECOM faces inherent litigation risks which can
reputational damage. litigation management. impact finances; managing these requires a strategic
legal approach and contingency planning.

Restructuring Legal scrutiny and potential Compliance with labor laws and clear Anticipated restructuring within AECOM must be
and Related costs associated with communication of contractual changes. legally compliant, considering labor laws and
Costs restructuring. contractual obligations, but must also be managed to
minimize disruption.
Corporate Affects stakeholder trust and Following best practices in corporate AECOM's adherence to corporate governance
Governance corporate compliance. governance and board management. standards is essential for maintaining trust and legal
compliance, but requires a balance between
oversight and strategic flexibility.
Intellectual Protects competitive Vigilant protection of IP rights and legal Intellectual property is a valuable asset for AECOM;
Property Rights advantage and innovation. safeguards for designs and protecting it is crucial for legal and competitive
technologies. reasons, but requires robust legal strategies.

Contractual Legal binding agreements Ensuring contracts are clear, compliant, AECOM's contractual obligations are a legal
Obligations with clients and partners. and managed effectively. foundation for its operations; managing these
effectively is crucial to avoid disputes and ensure
compliance.
Environmental Impacts project costs and Adherence to environmental laws and Environmental compliance is legally necessary for
Compliance execution. proactive management of AECOM's projects and can vary by region, requiring a
environmental risks. comprehensive understanding and management of
environmental laws.
Health and Protects employee well-being Implementation of rigorous health and Compliance with health and safety regulations is non-
Safety and company liability. safety protocols. negotiable for AECOM, necessitating continuous
Regulations monitoring and enforcement of safety standards.

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S.W.O.T. analysis

STRENGTHS WEAKNESSES OPPORTUNITIES

Extremely effective in going to market
with its products.
Good Returns on Capital Expenditure
Robust Brand Portfolio
Research and development AECOM can now use a
investment is lower. differentiated pricing strategy.
Planning finances is not done Green environmental trends in
effectively and correctly. the market.

Excellent Performance in New AECOM has had difficulty Taxation.

Markets
Robust Free Cash Flow
Robust distribution network
High degree of customer satisfaction
Reliable suppliers
expanding into new product
categories given its current Investments on online
contribution.
organizational culture.
Steady free cash flow.
AECOM positioning is not well
defined. Reduced shipping costs.

THREATS

Unstable political environment

globally

Raising payments

Competition

Imitation of low-quality/
counterfeit goods

Different law regulations in each

country

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