“Identify three international organisations in the same league of business and summarise their journey from domestic to global. Identify their strategy models, compare and contrast their corporate, Business and Operational strategies. Critically assess the sources of their competitive advantage against each other”.


All the companies have the different strategy models, corporate Business and Operational strategies and Different new which ideas which have different advantages and disadvantages. After a deep conclusion we get the sources of competitive advantage in between these three Civil Engineering Construction Companies.


Three Civil Engineering Companies:

  1. Balfour Beatty
  2. Amey UK
  3. Skanska
  4. Balfour Beatty:
  5. Company Perspectives:

In recent years Balfour Beatty has a very good record, to make the value of shareholder by providing value-added service skills, construction and engineering for the critical infrastructure quality, reliable and efficient customers.

They have a clear strategy, which they believe will enable them to achieve their ambitions for continuing growth. In the short term, they believe growth is already built into their order book and the plans of their major customers and partners. They identified four parts for investment which will help them maintain their power in the both medium and longer term.

The power of the base to build their strategy is same important in discovering how they will be successful. They have a number of qualities for long term success.

The Group makes their society work essential assets with creates and cares. In the daily lives these assets play an important role and within Balfour Beatty everyone takes their responsibilities for satisfaction, service and environmental care of first class customer, very seriously.

Their business sectors are four which work right across the supply chain, from starting concept to all life management and the Group, regularly put specialist teamstogether which are unusual in their ability to produce complex projects in time and according to budget.

Key Dates:

1909:- George Balfour was the founder of Balfour Beatty, a Scots mechanical engineer, and Andrew Beatty, an English chartered accountant. The company defined itself as "general and electrical engineers, contractors, operating managers for tramways, railways and lighting properties and for the promoting of new enterprises."

The company got first contract in Dunfermline in Fife for a new tramway system worth of £141,450, it included putting down the new track, installing additional generating plant and fixing lighting cables in the power house. The company moved into civil engineering when it was chosen to prepare a long aqueduct of five mile at Kinlochleven.

1914 - At the time of First World War Balfour Beatty moved within a week to the new London offices, when all the nation was at time of war.

1918- George Balfour was chosen as Unionist member for Hampstead and Conservative. He acted an important role in speeches in 1919, 1922 and 1926 on electricity and discussions on unemployment as well.

1920-George Balfour and Andrew Beatty officially listed a new company in 1922 as Power Securities Corporation Ltd, to make more financial resources to fund important projects like hydro-electric projects in Scotland.

1924- Balfour Beatty started its work in East Africa with hydro-electric projects. In 1926 it was extended to work in Palestine for supplying water and electricity Bethlehem and Jerusalem.

1926-The cost of £26.7 million was set up to build the national grid by Central Electricity Generating Board.

1929-Power facilities were started to built all over the world by 1929, with tram systems and railways in Bermuda, and Balfour Beatty offices were based in Montevideo and Buenos Aires.

1931-At the request of British Treasury, Balfour Beatty started to the Perak River Hydro-Electric Power Company in Malaya as agents and engineers. Until December 1941 the company held a gradual recovery which brought good results, and in the war Malaya was invaded as well.

1934-Iraq needed gigantic irrigation schemes; first task was completed in 1938 which structured across the river Tigris.

1939 - Second World War:

In 1946, £4 million valued work included power plant of 100,000 kw, erecting transmission lines of 230 miles, reconstruction of the bomb damage, maintain the railway tunnel and coal mining opencast. Two other projects were started: a 345,000 kw station at Burry Port in south Wales and a 360,000 kW generating station at Staythorpe.

1951-Balfour Beatty was successful outside the UK. Wadi Tharthar project Construction in Iraq and project of £6 million was started by King Faisal in 1956.

1957- In 1957 work started in power station at Berkeley due to an exciting new challenge as Nuclear power.

1960- Balfour Beatty made a second Blackwell Tunnel in the 1960s under the Thames.

1968, Balfour Beatty was well furbished and successful, new Supergrid of 400kV in the UK has complete, its future is looking less successful.

1969-Balfour Beatty combined with the construction work of BICC, the British cable-making giant. This stronger existing control and added related work such as electrification of railway and a moving into new markets like building, motorway construction and property development.

1975- Major projects were started in India, Iran and United Kingdom in the 1970s. The £350 million Mina Jebel Ali port in Dubai work began as well. In the major expansion of the United Kingdom road network and urban traffic management schemes Balfour Beatty was also involved heavily.

1976- Contract in a joint venture to make the Kielder dam in Northumberland worth of £30 million won by Balfour Beatty Construction.

1983- With a £680 million turnover, Balfour Beatty introduced as one of Britain's top contractors.

1986-Anglo-French joint venture awarded the turnkey contracts to make the Channel Tunnel by Balfour Beatty.

1994-£93 million contract was awarded to Balfour Beatty and Costain joint venture for the Cardiff Bay barrage. United State work is included the electrification of Amtrak's North East corridor link between Massachusetts, Boston, and New Haven in Connecticut.

In 1994 linking of the Channel Tunnel between Britain and France was opened. In this construction Balfour Beatty had played an important role and continued work to make new fast rail link sections from the coast to London.

1997- The cable business hit the cable markets very hardly in worldwide and manufacturing of business loss was increased. For disposing the cable business, strategic decision was implemented in 1997.

1999- Balfour Beatty got the contract by the fast growing US transport market in Texas, South Carolina and California. A HK$2.2 billion contract to make the Nam Cheong station in Kowloon was safe in Hong Kong.

2000-That's it aim to be a world important supplier and maintainer of fixed rail system, Adtranz's rail electrification and traction power supply business is acquired by the group. This provided the company a quicker and important presence high-speed rail market in the worldwide.

2002- Balfour Beatty creation of Utilities are able the Group to safe outsourced term contracts with many other UK's private utility companies.

2004-The Group show its presence in Hong Kong with the 50% purchase of Gammon Construction from Skanska.

2006- Best record in airport infrastructure development Balfour Beatty was chosen by Devon County Council as wanted bidder to acquire Exeter International Airport in 2006.

2007/8- An important player in the US PPP military accommodation market made an important business in the US by leading construction management company and GMH.

2009- International league table rank the Balfour Beatty is 19th in contractors. In the world this Group is the biggest fixed rail infrastructure contracting company, a UK roads leader, services support, mechanical and electrical engineering and also in other controls. Our financial performance is excellent, all round powers, simple strategy and cash position is strong, and it means that we will face our future with great confidence.

Group Structure:

A predominant and growing proportion of our revenue derives from the creation and care of large-scale public infrastructure, private sector asset upgrade and maintenance.

The range and depth of our expertise in key markets offers customers a unique range of skills.

Specialist areas:

Balfour Beatty is an international specialist in the Design, construction, programme management, electrical engineering, mechanical engineering, building and facilities management, social housing, refurbishment and fit-out, foundations including strengthening and testing, civil engineering, electrical engineering, transmission lines, road management and maintenance, utility upgrade and maintenance, professional and technical services.


Balfour Beatty promotes and invests in privately funded infrastructure assets and developments in selected sectors, in the UK and internationally.


, comprising:

  • PFI concession companies - Aberdeen Environmental Services, Connect Roads, Consort Healthcare, Health Management (UCLH), Power link and Transform Schools.
  • Non-PFI infrastructure - Barking Power and Regional & City Airports.

Specialist areas

Healthcare, education, roads, rail, airports, integrated transport, power systems, water.

Strategy and Vision:

Balfour Beatty is a world-class engineering, construction, services and investment business, well positioned in infrastructure marketsthat offer significant long-term growth. They aspire to being the pre-eminent infrastructure company in the world.

They work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Their skills are applied in appropriate combinations to meet individual customer need.

Their strategy is designed to continue reliable, responsible growth in shareholder value over the long term.

In 2006 they in identified four areas where they intended to further develop their business to ensure that they will be able to maintain t heir target growth rates over the medium and long term. These were:

  • UK regional contracting;
  • Professional and technical services;
  • Extension of our investment business into new markets;
  • Establishing strong domestic businesses in selected overseas markets based on our UK model.

Since then:

  • They have acquired Birse, Cowlin and a number of other small companies in the UK;
  • Their professional services organisation, Balfour Beatty Management, is one of the fastest growing consultancies in the UK;
  • Their UK Public Private Partnership (PPP) business, Balfour Beatty Capital, has established strong bases in the US, South-East Asia and Germany, and has acquired Exeter International Airport;
  • They have also acquiredCentex Construction in the US, which we renamed Balfour Beatty Construction.

They continue to take appropriate action to develop their strategy successfully

Ethics and Behaviour

Their reputation gives their customers, employees, partners, suppliers, investors and the many communities that they serve, the confidence to trust and do business with them. Their four Group-wide values of Integrity, Teamwork, Excellence, and Respect, are essential in helping to guide their employees and the way that they behave.

In defining these values they spoke to a broad range of stakeholders, including customers, suppliers, joint venture partners and employees from across the business. This research has helped them to reflect on who they are today, but also to look at what customers will be looking for in the years to come.

Balfour Beatty delivers projects principally in the UK, US, WesternEurope, South-East Asiaand the Middle East. They offer innovative solutions and expertise in a broad cross-section of markets, from healthcare and education through to rail infrastructure and utilities.

One of their distinguishing characteristics is our wide range of market leading skills and disciplines and their capacity to use an appropriate mix of these skills in combination.

2: Amey UK

Company Perspectives:

Amey want to be outsourced business support services leading provider, working in all the economy types. Using the continuous improvement delivery, helped by technology, investment and innovation, Amey will exceed all expectations to achieve satisfaction of customer. Amey will provide a rewarding and challenging surroundings for its employees, and that will be better for the continuing shareholder value growth.

Important Dates:

1921: Ron Amey starts gravel and quarrying business in Thames Valley.

1948: Company abilities Amey Asphalt, gave all energy and time to road construction.

1963: company moves to London Stock Exchange.

1973: Amey is acquired by stronger gold fields, which combine it with Road Stone Construction and to form as Amey Road Stone Construction (arc).

1989: Hanson plc acquired stronger gold fields; arc is turned off in a management buyout like Amey Construction.

1991: Amey made first movement to the facilities management sector.

1994: Amey moves to public as Amey plc.

1999: Comax is also acquires by Amey, high-security support services specialist; this makes a possibility for Amey to make different it's stock exchange to the support services sector.

For the 21st century, Amey plc tried a new hat, one of the united kingdom's biggest public works construction companies, specialty in road building, Amey moved its emphases to support services sector, railroad and highway maintenance services, maintenance and management services for schools, facilities design, hospitals, and other public structures, like public utilities and telecommunications sectors. The company improve a strong information technology component for public and private industry. The company construction and civil engineering component does business primarily its divisions. Amey recreated its operations in 2001 into four main parts: private sector, technology services, public sector, and transportation services.

Company History:

Amey plc was started by Ron Amey as a gravel maker and quarrying operation in the region of Thames Valley. The company increased as a producer in general aggregates leading up to World War II. At end of the war, the company had appeared as one of leading aggregates producers in United Kingdom.The company change its position into road construction, setting up big company as Amey Asphalt. The timing of company was unplanned, due to war reconstruction activities and then economic boom--which caused automobile rise in United Kingdom created road construction strong demand in the 1950s.

In 1963 the company listed on the London Stock Exchange, its construction interests was extended during 1960 into the civil engineering sector. In start of 1970s, acquisitive consolidated gold fields got attention by Amey. In 1973, Amey acquired consolidated gold fields, and added the company to Quarrying Operations, Amalgamated Road Stone and Greenfields. The three operations made a group into one, Amey Road Stone construction (arc). In 1986 the company move to new name arc construction.


Start of 1990s due to deep recession Amey as an independent company was hampered in the first years, and generally construction sector of United Kingdom effect by crisis. In 1990 Amey start processing acquiring electrical engineering and acquiring a mechanical business controlled by ashley (chairman and king as chief executive), and taking control the construction contracts, changed the name to Amey Building. In 1993 this unit was cancelled because after a big loss in electrical and mechanical engineering wing, Amey was not able make a breakthrough. The company's house building unit, was struggling due to hard hit by the economic downturn.

Until now, Amey mainly a road building company, which made roads for the transport department, for the Defence Ministry and related construction of civil airports for United Kingdom, more than 80 percent profit contribution and the biggest sale of its shares. By the mid-1990s, the company got sixth rank in road building sector in United Kingdom.

In 1994, Amey recovered from its financial problems, which was enough to go public on the London Exchange. While road construction was playing an important role in the operations of company, especially with government activities to pay £2.3 billion in mid of 1990s on maintenance and road construction, Amey was increasing moved its attention to increasing its support services operations and facilities management, market first entered in 1991. In 1995 the company won a contract of management with the city of Portsmouth due to a necessary occasion came for Amey in facilities management and support services operations.

The repositioning of the company had achieved only the support services sector of United Kingdom and promised that a new era of growth will enter. In the mid of 1990s, British Government announced the Private Finance Initiative (pfi) creation, it was seek to take over the maintenance and management of many old Government-run Services to the private sector. This new program was expected to supply powerful increase numbers of contracts moved over to non-government businesses, and Amey placed itself as a powerful contender for pfi contracts.

Meanwhile, the company was increasing its rail and road operations, becoming the member of the auto link concessionaire's consortium, with partner's Taylor Woodrow construction and Sir Robert Mcalpine, for winning a £370 million contract to making a highway link between Glasgow and Carlisle in 1997. They also won a contract worth of £40 million maintenance and management for roads spanning Berkshire, Buckinghamshire, Hertfordshire, oxfordshire and Essex. The starting of 1998, Amey and her French partner Saco/def won a contract of rail replacement worth of £140 million.

Amey has sold its homebuilding parts in September 1998, to attempt homes for £4.8 million, like it became its focus to the facilities management. The company also started requesting the London Stock Exchange to change the records to services sector support from construction and homebuilding category. Toward this intention, the company operated these works, civil engineering is placing and construction operations are going to a single division.

Core Values:

Amey and its employees involves subscribe a set of Core Values. These values are chosen and promoted all of our businesses around the world. They underpin the way in which we conduct our business, interact with our stakeholders and operate as individuals or teams within company. The values also connected to our Code of Conduct, which provides advice to employees in connection to the standards which the Company expects in its operations conduct.


Respect the people in their ideas, culture, views, health and safety and their knowledge.


Integrity is non-negotiable if it accepted by the individual or the integrity of the company. Specially, we will not accept on safety within our organization or with any of our supplier or client involve in business.


To find a better solution, consider outside the box and be brave to do different things. Try to do new things and ideas, don't think and do same things which we have done yesterday.


Explain the method that our business works as truly sharing knowledge, build and draw insights. Using the teamwork they value the insights, build on them and must take the time to help truly.


Amey work hard for excellent quality in all which we do. It is understood not only in the services and products they deliver, but in how they deliver them. Their employees represent excellence quality - whether be they make the decisions, they build the products, or they deliver the service. In particular on construction sites, everywhere, extremely good level zero incidents.

Code of Conduct

Amey's Code of Conduct describes the quality of the Company expects in its operations conduct. This Code helps the company's Core Values, particularly Honesty and link between the values of more particular global, regional and local business policies. This Code has been supported by the company's Board of Directors and implement to each employee of the company and its subsidiaries.

Business Behaviour:

Amey aims to work directly in partnership with a select number of like-minded clients so that we can gain an in-depth knowledge of their business and in return, add more value.

Long-standing relationships enable teams to progress from one project to another within a client's overall portfolio. This underpins their ability to leverage knowledge and experience and deliver greater certainty and predictability.

Our aim is that our business behaviour is typified by:

  • Being authentic at all times, with every team member, through every project
  • No surprises in our performance, delivery schedule or financial reporting
  • Not litigious by nature
  • Innovative solution finding, not passive problem raising
  • Longer-term, trusting relationship building over short-term opportunism
  • Positive and tangible environmental, people, industry and community legacy

3: Skanska:

Company Perspectives:

Mission: Skanska's mission is to grow, create and provide the physical environment for life, working and travelling. By grouping its resources in these areas, the Group can provide clients pleasure and cost-effective.

Vision: In construction-related services and project development Skanska will be first choice of client like a world leader.

Key Dates:

1887: Rudolf Frederik Berg discovered AB Sk&aring#ka Cementgjuteriet.

1897: Company gets first foreign contract.

1902: Production facility establishes in company in St. Petersburg.

1927: First asphalt-paved road finishes by the company in Sweden.

1952: Allbetong way of prefabricated construction is placed.

1965: Stockholm stock exchange got the list of the company.

1974: First turnkey hotel project finishes by company outside of Sweden.

1984: Company name came to different to Skanska AB.

1994: Beers Construction Company acquires by Skanska.

1995: Company wins contract to create Öresund link between Sweden and Denmark.

1999: Company acquires A.J. Etkin (U.S.A.); Gottleib Group (U.S.A.); SADE (Argentina).

2000: Exbud (Poland) and IPS (Czech Republic) acquires by Skanska.

Company History:

Skanska started in 1887, when in Sweden Aktiebolaget Skånska Cementgjuteriet was established. The company was based on the experiences from its specialised in products manufactured by concrete.

The company diversified very quickly as fully-fledged construction company, it received its first international orders within ten years, and playing an important role in Sweden's infrastructure building. The company changed its name in 1984 to Skanska.

The company established as a developer of commercial and residential projects like apartment and single family houses in mid of 1900s. In 1964 the company listed in A-list on the Stockholm Stock Exchange.

The company entered in US market in the 1970s. Today, largest market of Skanska is US in the sector of construction.

In the UK Skanska started life as part of Trafalgar House, in 1978 London construction market established by owning companies like Trollope and Colls.

Trafalgar House sold to Kvaerner in 1996, who sold its construction business in 2000 to Skanska and Skanska UK born.

Start in the 19th Century:

Skanska started at the end of 19th century as a cement-based decorative building elements producer, for the dressing up the Sweden's churches and the other public buildings as well. The company was based by Rudolf Frederik Berg as AB Sk&aringka Cementgjuteriet in 1887. Berg expanded the field of company operations to the decorative elements and into the construction arena by itself. Skanska started producing the materials for general construction at the end of first year, like concrete blocks and the other cement-based fittings. The company also connected in construction projects by itself.

Skanska started to handle large-scale orders for its concrete fittings by 1897. It supplied 100 kilometres (approx 60 miles) of hollow concrete blocks which used for telephone cables supporting due to contract with National Telephone Company of United Kingdom.

Led by British order the company tried to search more foreign contracts. At the start of new century, large scale order was issued by Tsarist Russia to replace the wood-based sewer system in place in the city of St. Petersburg and in ever part of the Russian empire. Skanska won this contract the concrete pipes production that supplied the basis of Russia's modern sewer system and in 1902 its first non-Scandinavian facility opened in St. Petersburg.

Skanska's Scandinavian's primary market was home base, and during the next three decades, Skanska demands credit for building of the modern infrastructure in Norway, Sweden, Finland and Denmark and the company discovered as one of the region's biggest construction companies. Through this time the most significant project of company was construction of Sweden's first asphalt road, which was completed in Borlänge in the country's central region in 1927. In 1943, Sandö bridge completion gave another triumph to Skanska: the Sandö Bridge at 264 meters, increased fame as the longest of world longest concrete-based arch-span bridge, until 1960 a distinction was held.

21st Century's Building an International Construction Business:

Skanska started to focus on its following international growth as World War II. The company introduced of its Allbetong method. Skanska was able to produce prefabricated elements by using this system for large-scale construction projects, like apartment buildings and others as well.

Skanska factories manufactured, using construction cranes, the parts take into place. With the help of Allbetong method the time and labour involved in a construction project was cut down and played an important role in development of Skanska's international, the company moved to markets beyond to Scandinavian base.

In 1965 the expansion of company was listing on the Stockholm stock exchange due helping to fuel. Skanska moved up its international growth, new markets in Africa and Middle East. At the end of 1960s making a strong securing position in these markets, the start of 1970s Skanska came back near to home, moving Poland and Soviet Union.


Lead in commercial success and quality is the Skanska aim. In geographic markets and specific segments, they established 'outperform targets'. They also adopted the qualitative targets in addition of financial targets.

Qualitative targets in vision of Skanska's five zeros:

  • Zero loss-making projects. Loss makers not destroy profitability only even it also affects the customer relationships.
  • Zero accidents.The safety method is ensured of their personnel, suppliers, subcontractors and the general public as well.
  • Zero environmental incidents.It meanstheir projects, should be punished in a way which minimizes the environmental impact.
  • Zero ethical breaches.It means that we get a zero-tolerance approach to any form of corruption or bribery.
  • Zero defects.The double aim of increasing customer satisfaction and improving the bottom line.

The qualitative targets expressed in the five zeros show their core values. The five zeros and outperform financial targets provide basis for incentive systems at different levels within Skanska.

Strategies and Values:

The strategy of Skanska for achieving operational and financial targets is:

  • To focus the core businesses in development and construction.
  • International company in selected home markets with a leading position.
  • To take benefits of Skanska's worldwide collective resources like brand, financial strength and employee expertise.
  • To manage systematically risk and foresee
  • To improve green expertise throughout operations
  • To become Industry leader in sustainability and green building, particularly in ethics and environment and health and safety
  • To appoint, retain and develop competent employees and to gain a greater diversity.
  • To develop urbanisation trends.

Source: ChinaStones - http://china-stones.info/free-essays/accounting/journey-from-domestic-global.php

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