Cimic Group Case Study

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Strengths

Large scale of operations

CIMIC Group has a fundamental strength in the large scale of operation in a variety of activates in the market they service, such as construction, contract mining, mineral processing, operations and maintenance, public private partnerships and engineering. Furthermore, the geographic footprint of CIMIC is widespread in more than 20 countries throughout the Asia Pacific, the Middle East, North America, Sub-Saharan Africa and South America. (CIMIC,2016)  As a consequence, it allows CIMIC to be able to maximise revenue as CIMIC can focus on various projects of  all different sizes and projects on a wider range of area. According to the CIMIC’s project statue, it is suggested that CIMIC has 177 completed projects and 115 current projects, which indicates that the scale of operation generates CIMIC a comprehensive range of project opportunities. (CIMIC, 2016) Besides, as the scale of operation become larger, so as the reputation is enhanced. Consequently, large scale of operation is a strength in which CIMIC is able to leverage its market leadership strategies upon, also a core competitive advantage to gain more potential customer and attain more project comparing to other competitors who only focus on one single area.

Strong focus on sustainability

Sustainability is recognised as an important index/part to assess companies’ quality of management and future performance potential. (ROBECOSAM, 2016) According to the sustainability report 2015, comparing with previous DJSI Sustainability score of 76 in 2014 and 2013, CIMIC achieved a higher score of 81 in 2015, which makes CIMIC become one of only two construction and engineering companies that was again recognised in DJSI’s Australia Index in 2015. (CIMIC, 2015) CIMIC’s grate effort on working on sustainability takes long-term imagine into account that could maximize long term shareholder value. It also helps to reduce waste so that lowering cost and benefiting the environment by using resources more efficiently.  Furthermore, risk management is also included as a focus in the sustainability assessment that enables CIMIC to provide safe communities and workplace so that would gain a communities’ and employees’ trust.