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Accelerating Growth through Enterprise Development SEDiC ; July 2011

Accelerating Growth through Enterprise Development SEDiC ; July 2011. FRAMEWORK. Definitions “THE key” Critical Success factors Market Size Market distribution amongst companies Instability and its Consequences Profitability. DEFINITIONS.

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Accelerating Growth through Enterprise Development SEDiC ; July 2011

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  1. Accelerating Growth through Enterprise Development SEDiC; July 2011

  2. FRAMEWORK • Definitions • “THE key” • Critical Success factors • Market Size • Market distribution amongst companies • Instability and its Consequences • Profitability

  3. DEFINITIONS • “Growth” = expansion of the capacity that exists; company/market • “Development” = creation of something new; more companies • Thus: • Can grow companies through ED • Cannot grow the market through ED • Can accelerate ED through market growth

  4. “THE KEY” “the lack of experience in management is the crucial missing link” the challenge is to mentor or guide or coach personnel/management of these new companies

  5. Low Risk High Risk Contract Models Qualified Resources - skills Risk vs. Reward Change Management Growth & Expansion Risk Management Process Project Development Portfolio Risk Client Management Low Bidding Status of Partner Schedule Design Development Payment “THE KEY”; international evidence

  6. CRITICAL SUCCESS FACTORS • Contractors must have some track record (must have technical knowledge); • Aptitude of owners • Medium term (up to 4 years) horizon critical/continuity of work • Flexibility of companies • Geographic mobility of companies

  7. LONG VIEW IN CONSTRUCTION

  8. MARKET GROWTH??

  9. INVENTORY OF PROJECTS NEDBANK

  10. HOPE OR REALITY??

  11. LESS CONSTRUCTION INTENSIVE NEDBANK

  12. New Tenders: Competition

  13. MARKET SIZE DISTRIBUTION; NEW

  14. MARKET SIZE DISTRIBUTION; MAINT

  15. THE TRAINING CONUNDRUM

  16. INSTABILITY = DISCONTINUITY

  17. EMPLOYMENT INSTABILITY

  18. INSTABILITY AND HUMAN RESOURCES

  19. INSTABILITY AND CAPITAL RESOURCES

  20. Profitability: History for Construction

  21. Profitability: SAFCEC members

  22. Profitability: CIDB Data

  23. FRAMEWORK • “THE key”; management knowhow • Critical Success factors • The Market is not infinite and competition is high • Instability and its Consequences • Profitability

  24. THANK YOU Henk Langenhoven hpl@safcec.org.za

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