Management of Financial Resources and Performance

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As a Post Graduate Student, Preparation of Assignment of The Modules is part of studies. During the preparation of Assignment, students gain a lot of knowledge about their course, about the field in which field they will join. This assignment is about Management of Financial resources and Performance (MFRP).

The Question in which we are discussing about in this Booklet is,

"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".


During solve this Question we have achieve a lot of knowledge about strategy models, corporate Business and Operational strategies. Overview the Different new ideas, Rise and fall of the companies business and difficulties faced by the company. During discuss about these engineering companies a vast field of Business and operational strategy open at us.

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.

Overview of Assignment

In this section we discuss about the three civil engineering construction companies 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. And after that we will critically assess the sources of their competitive advantage against each other.

Three Civil Engineering Companies:

  • Balfour Beatty
  • Amey UK
  • Skanska

Now we will discus them one by one respectively according to their strategy models, corporate Business and Operational strategies.

1: Balfour Beatty:

Company Perspectives:

Balfour Beatty has an excellent record, in recent years, in creating shareholder value by providing value-added engineering, construction and service skills to customers for whom infrastructure quality, efficiency and reliability are critical.

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 have identified four areas for investment that will help them maintain their momentum in the medium and longer term.

The strength of the base on which they build their strategy is equally important in determining how successful they will be. They have a number of characteristics that, taken together, underpin the confidence they have in their long-term success.

The Group creates and cares for the essential assets that make their society work. These assets play an important part in people's daily lives and everyone within Balfour Beatty takes their responsibilities for first class customer satisfaction, service, safety and environmental care very seriously.

Their four business sectors work right across the supply chain, from initial concept to whole life management and the Group regularly puts together specialist teamsthat are unique in their ability to deliver complex projects on time and to budget.

Key Dates:

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

The company's first contract was for a new tramway system in Dunfermline in Fife. Worth £141,450, it involved laying new track and lighting cables and installing additional generating plant at the power house. The company subsequently moved into civil engineering when it was commissioned to build a five-mile-long aqueduct at Kinlochleven.

1914 - During First World War Balfour Beatty moved to new London offices, but within weeks the nation was at war.

1918- George Balfour was elected as the Conservative and Unionist member for Hampstead. He played a prominent part in debates on electricity in 1919, 1922 and 1926 as well as many discussions on unemployment.

1920-George Balfour and Andrew Beatty registered a new company, Power Securities Corporation Ltd, in 1922, to increase financial resources to fund more and larger projects including hydro-electric projects in Scotland.

1924- Balfour Beatty began its work outside the UK with hydro-electric projects in East Africa. This was extended in 1926 to work in Palestine to supply electricity and water to Jerusalem and Bethlehem.

1926-The Central Electricity Generating Board was set up to construct the national grid, at a cost of £26.7 million.

1929-By 1929 power facilities were being built all over the world, along with railways and tram systems. These included a railway in Bermuda, and Balfour Beatty offices were maintained in Buenos Aires and Montevideo.

1931-Balfour Beatty became engineers and agents to the Perak River Hydro-Electric Power Company in Malaya, at the request of the British Treasury. The company held an A gradual recovery brought good results until December 1941, when Malaya was invaded in the war.

1934-Iraq required gigantic irrigation schemes and the first task was to build a barrage across the river Tigris. This was completed in 1938.

1939 - Second World War

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

1951-Balfour Beatty continued to be successful outside the UK. This included the construction of the Wadi Tharthar project in Iraq. The £6 million project was opened by King Faisal in 1956.

1957-Nuclear power was an exciting new challenge and in 1957 work began on a power station at Berkeley.

1960-In the 1960s, Balfour Beatty built a second Black wall tunnel under the Thames.

1968, Balfour Beatty was well established and successful, but with the new 400kV Super grid in the UK now complete, the future looked less rosy.

1969-Balfour Beatty merged with the construction activities of BICC, the British cable-making giant. This strengthened existing disciplines and added related activities such as railway electrification and a diversification into new markets including motorway construction, building and property development.

1975-In the 1970s major projects were carried out in Iran, India and the UK. Work also began at the £350 million Mina Jebel Ali port in Dubai. Balfour Beatty was also heavily involved in the major expansion of the UK road network and urban traffic management schemes.

1976- Balfour Beatty Construction won a £30 million contract in a joint venture to build the Kielder dam in Northumberland.

1983-Balfour Beatty became one of Britain's top contractors with a turnover of £680 million.

1986-Balfour Beatty leads the UK-side of an Anglo-French joint venture awarded the turnkey contract to build the Channel Tunnel.

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

The Channel Tunnel linking Britain and France opened in 1994. Balfour Beatty had played an important part in its construction and continued work to build sections of the new fast rail link from the coast to London.

1997-Radical changes in worldwide cable markets hit the cable business hard and the losses in the manufacturing business mounted. In 1997 a strategic decision was taken to dispose of the cables businesses, the bulk of which was accomplished by 1999.

1999-The fast growing US transport market resulted in major contracts for Balfour Beatty in Texas, California and South Carolina. While in Hong Kong, a HK$2.2 billion contract to construct the Nam Cheong station in Kowloon was secured.

2000-In its aim to become a world leading supplier and maintainer of fixed rail infrastructure, the Group acquired Adtranz's rail electrification and traction power supply business. This gave the company an immediate and major presence in the worldwide high-speed rail market.

2002-The creation of Balfour Beatty Utilities enabled the Group to secure outsourced term contracts with many of the UK's privatised utility companies.

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

2006-By 2006 Balfour Beatty, with an established track record in airport infrastructure development, was selected by Devon County Council as preferred bidder to acquire Exeter International Airport.

2007/8-The acquisition of Centex Construction, a leading US construction management company and GMH, a major player in the US PPP military accommodation market creates a major business in the US.

2009-Balfour Beatty is now ranked 19th in the international league table of contractors. The Group is the largest fixed rail infrastructure contracting company in the world, a UK leader in roads, support services, electrical and mechanical engineering and other disciplines. Our excellent financial performance, all round strengths, clear strategy and strong cash position mean that we face the 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, plus private sector asset upgrade and maintenance.

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

  1. Building, Building Management and Services
  2. Civil and Specialist Engineering and Services
  3. Rail Engineering and Services
  4. Investments
  5. Turnover by destination 2008

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.


Balfour Beatty Capital, 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.

Balfour Beatty Capital Inc

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 seeks to be a leading provider of outsourced business support services, operating in all segments of the economy, adding value to its many quality clients in the process. Through the delivery of continuous improvement, supported by innovation, technology and investment, Amey will strive to exceed expectations in order to achieve lasting customer satisfaction. By striving for excellence, Amey will provide a challenging and rewarding environment for its employees, which will be the catalyst for the continuing growth of shareholder value.

Key Dates:

  • 1921: Ron Amey begins quarrying and gravel business in Thames Valley.
  • 1948: Company forms Amey Asphalt, dedicated to road construction.
  • 1963: Company goes public on London Stock Exchange.
  • 1973: Amey is acquired by Consolidated Gold Fields, which merges it with Greenfields and Roadstone Construction to form Amey Roadstone Construction (ARC).
  • 1989: Consolidated Gold Fields is acquired by Hanson Plc; ARC is spun off in a management buyout as Amey Construction.
  • 1991: Amey makes first move into facilities management sector.
  • 1994: Amey goes public as Amey Plc.
  • 1999: Amey acquires Comax, a specialist in high-security support services; this acquisition enables Amey to change its stock exchange listing to the support services sector.

Amey Plc has tried on a new hat for the 21st century. Formerly one of the United Kingdom's largest public works construction companies, with a specialty in road building, Amey has shifted its focus to the support services sector, including railroad and highway maintenance services, facilities design, maintenance and management services for schools, hospitals, and other public and private structures, as well as infrastructure and support services for the public utilities and telecommunications sectors. The company also boasts a strong information technology component for both public sector and private industry customers. The company maintains a construction and civil engineering component, which does business primarily for its other divisions. In 2001, Amey restructured its operations into four primary divisions: Public Sector Services, Private Sector Services, Transportation Services, and Technology Services.

Company History:

Amey PLC was initially founded by Ron Amey as a quarrying operation and gravel producer in the Thames Valley region. The company expanded as a general aggregates producer in the years leading up to World War II. By the end of the war, the company had emerged as one of the United Kingdom's leading aggregates producers. The company leveraged this position with a move into road construction, setting up subsidiary Amey Asphalt. The company's timing proved fortuitous, as the post war reconstruction effort and then a lasting economic boom--which in turn sparked the rise of the automobile in the United Kingdom created strong demand for road construction in the 1950s.

The company, which listed on the London Stock Exchange in 1963, extended its construction interests into the civil engineering sector during the 1960s. By the early 1970s, however, Amey caught the attention of acquisitive Consolidated Gold Fields. The mining conglomerate had decided to expand its operations into the quarrying of aggregates for the construction industry, as part of an overall diversification program. In 1973, Consolidated Gold Fields acquired Amey, and then added the company to two other recently added quarrying operations, Greenfields and Amalgamated Roadstone. The three operations were combined into a single entity, Amey Roadstone Construction, or ARC.

Under Consolidated Gold Fields, ARC became a modernized company that helped to transform the quarrying industry in the United Kingdom. The company also began to expand geographically, adding operations in continental Europe, as well as in Africa and other parts of the world. ARC also continued to build its civil engineering and construction operations, notably through its Amey construction wing. The company's civil engineering and construction work led it into other public service areas, such as railway maintenance and services to various military installations. Emphasizing its expanding construction business, the company took on a new name, ARC Construction, in 1986.

By the end of the 1980s, Consolidated Gold Fields itself had come into the focus of one of the United Kingdom's largest conglomerates, Hanson PLC, which bought the mining giant, including ARC Construction, in 1969. Several months after its acquisition of Consolidated Gold Fields, Hanson agreed to spin off the ARC Construction component in a management buyout led by Neil Ashley, Eddie King, and other Amey directors. The management buyout, at a cost of just £6.2 million, was financed by backer Close Securities. The new company, placed as a subsidiary under the newly created Amey Holdings, was renamed Amey Construction Ltd.

Developing Independently: 1990s

Amey's first years as an independent company were hampered by the deep recession of the early 1990s, and particularly the crisis affecting the United Kingdom's construction sector in general. Led by Ashley as chairman and King as chief executive, Amey began making acquisitions, including acquiring a mechanical and electrical engineering business in 1990 and taking over the construction contracts, placed under the name Amey Building, from two failed construction companies that same year. Amey was unable to make a breakthrough with its new mechanical and electrical engineering wing, however, and, after posting losses, the unit was discontinued in 1993. Meanwhile, the company's house building unit, hard hit by the economic downturn, was also struggling.

Yet, Amey remained primarily a road building company that division, which built roads for the Department of Transport as well as for the Ministry of Defence and also provided road and related construction for the United Kingdom's civil airports, contributed more than 80 percent of its profits and the largest share of its sales. By the mid-1990s, the company was ranked sixth in the United Kingdom's road building sector.

By 1994, Amey had recovered from its financial difficulties enough to go public with a listing on the London exchange. While road construction continued to play a prominent role in the company's operations, especially with government plans to spend as much as £2.3 billion on road construction and maintenance in the mid-1990s, Amey increasingly turned its attention to expanding its facilities management and support services operations, a market it had first entered in 1991. An important moment in Amey's facilities management and support services operations came when the company won a management contract with the city of Portsmouth in 1995.

Amey continued building up its construction and road work operations in the mid-1990s, including winning resurfacing contracts for Manchester Airport. Yet road building by then accounted for only about one-third of Amey's total business. Instead, the company's interest was turning more and more to facilities management and support services. In 1996, the company paid £15 million to acquire majority control of Western Infrastructure Maintenance Company (WIMC), which had been part of the newly privatized British Rail (renamed Railtrack). The purchase was described by Ashley as representing a "quantum leap" in the company's facilities management and maintenance operations, and raised the portion of the company's profits generated by the sector to more than 75 percent of its total profits. Soon after that, the WIMC acquisition, Amey, together with partner Sir Robert McAlpine, was awarded a £175 million contract to build the Croydon Tramlink, a 28-kilometer light rail network. By the end of 1996, the company's sales had grown past £312 million.

The company's repositioning had been achieved just as the United Kingdom's support services sector promised to enter a new era of growth. In the mid-1990s, the British government had announced the creation of a so-called Private Finance Initiative (PFI) as it sought to turn over the management and maintenance of many formerly government-run services to the private sector. The new program was expected to provide a strong increase to the numbers of contracts turned over to non-government businesses, and Amey had placed itself in line as a strong contender for PFI contracts.

Meanwhile, the company continued adding to its road and rail operations, joining the Auto link Concessionaires consortium, with partners Sir Robert McAlpine and Taylor Woodrow Construction, to win a £370 million contract to build a highway linking Carlisle and Glasgow in 1997. The company also won a £40 million management and maintenance contract for roads spanning Buckinghamshire, Berkshire, Essex, Hertfordshire, and Oxfordshire. Then, at the beginning of 1998, Amey and French partner SECO/DEF won a rail replacement contract worth £140 million.

Amey sold off its homebuilding division in September 1998, to Try Homes for £4.8 million, as it turned its focus toward facilities management. The company also began petitioning the London stock exchange to change its listing from the construction and homebuilding category to the support services sector. Toward this aim, the company restructured these operations, placing its civil engineering and construction operations into a single division.

Core Values:

Amey and its employees actively subscribe to a set of Core Values. These values are adopted and promoted across 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 relate to our Code of Conduct, which provides guidance for employees in relation to the standards that the Company expects in the conduct of its operations.


Respect for all people - their ideas, their culture, their views, their health and safety, and their knowledge.


Integrity is non-negotiable they don't do it if it compromises the individual or the company's integrity. In particular, we will not compromise on safety either within our organization or in doing business with any of our clients or suppliers.


Challenge and seek to find a better solution, think outside the box and dare to do things differently. Be innovative and creative, don't just do it because we did it yesterday.


Redefine the way our business works by truly sharing knowledge, building on this and drawing insights. Through teamwork they value the insights of others and build on them they must truly take the time to help.


Amey strive for excellence in all we do. It is evident not only in the products and services they deliver, but in how they deliver them. Their employees embody excellence - whether it be in the decisions they make, the products they build, or the service they deliver. On construction sites in particular, but everywhere, excellence equals zero incidents.

Code of Conduct

Amey's Code of Conduct explains the standards the Company expects in the conduct of its operations. The Code supports the company's Core Values, especially Integrity (which "is not negotiable") and links these values to more specific global, regional and local business policies. The Code has been endorsed by the company's Board of Directors and applies to every employee of company and its subsidiaries.

Business Behaviour:

Amey aim 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 develop, build and maintain the physical environment for living, travelling and working. By combining its resources in these fields, the Group can offer clients attractive, cost-effective and thus competitive solutions.

Vision: Skanska shall be a world leader the client's first choice in construction-related services and project development.

Key Dates:

  • 1887: Rudolf Frederik Berg founds AB Skå#ka Cementgjuteriet.
  • 1897: Company receives first foreign contract.
  • 1902: Company establishes production facility in St. Petersburg. 1927: Company completes first asphalt-paved road in Sweden.
  • 1952: Allbetong method of prefabricated construction is introduced.
  • 1965: Company lists on Stockholm stock exchange.
  • 1974: Company completes first turnkey hotel project outside of Sweden.
  • 1984: Company changes name to Skanska AB.
  • 1994: Skanska acquires Beers Construction Company.
  • 1995: Company wins contract to build Ã-resund link between Denmark and Sweden.
  • 1999: Company acquires A.J. Etkin (U.S.A.); Gottleib Group (U.S.A.); SADE (Argentina).
  • 2000: Skanska acquires Exbud (Poland) and IPS (Czech Republic).

Company History:

Skanska dates back to 1887 when Aktiebolaget Skanska Cementgjuteriet was established in Sweden. The company was founded based on experiences from its predecessor which specialised in manufacturing concrete products.

The company quickly diversified, and within ten years the now fully-fledged construction company received its first international orders, as well as playing a key role in building Sweden's infrastructure. In 1984 the company changed its name to Skanska.

In the mid 1900's, the company was also established as a developer of commercial properties and residential projects such as apartment houses and single family homes. The company was listed on the Stockholm Stock Exchange A-list in 1965.

In the 1970's the company entered the US market. Today, the US is Skanska's largest market, and Skanska ranks among the largest in the construction sector.

Skanska in the UK began its life as part of Trafalgar House, owning companies like Trollope and Colls, established in the London construction market in 1778.

In 1996 Trafalgar House was sold to Kvaerner who then sold its construction business to Skanska in 2000. And so Skanska UK Was born

Cementing Start in the 19th Century:

Skanska had its start in the late 19th century as a manufacturer of cement-based decorative building elements, used for dressing up Sweden's churches and other public buildings. The company was founded as AB Skå#ka Cementgjuteriet (or Scanian Pre-Cast Cement) by Rudolf Frederik Berg in 1887. Yet Berg's background as an engineer soon expanded the company's field of operations beyond decorative elements and into the construction arena itself. By the end of its first year, Skanska had begun producing materials for general construction, such as concrete blocks and other cement-based fittings. But the company also joined in construction projects itself, building upon its expertise in working with concrete.

By 1897, Skanska had begun to handle large-scale orders for its concrete fittings. This led to a contract with the United Kingdom's National Telephone Company to supply some 100 kilometres (approximately 60 miles) of hollow concrete blocks used for supporting telephone cables.

The British order led the company to seek further foreign contracts. A new large-scale order came at the beginning of the new century, when Tsarist Russia sought to replace the wood-based sewer system then in place in the city of St. Petersburg and throughout the Russian empire. Skanska won the contract to produce the concrete pipes that provided the basis of Russia's modern sewer system and opened its first non-Scandinavian facility in St. Petersburg in 1902.

Skanska's Scandinavian home base remained its primary market, however, and over the next three decades, Skanska was able to claim credit for building much of the modern infrastructure in Sweden, Norway, Denmark, and Finland as the company established itself as one of the region's largest construction companies. Among the company's most significant projects during this time was its construction of Sweden's first asphalt road, completed in 1927 in Boulanger in the country's central region. Skanska's completion of the Sandö Bridge in 1943 gave it another triumph: at 264 meters, the Sandö Bridge gained fame as the world's longest concrete-based arch-span bridge, a distinction held until the 1960s.

Building an International Construction Business for the 21st Century:

Skanska began to focus more and more on its international growth following World War II. The company marked a milestone with the introduction of its Allbetong method. Using this system, Skanska was able to produce prefabricated elements for large-scale construction projects, such as apartment buildings and others.

Manufactured in Skanska's factories, the elements were then put into place using construction cranes. The Allbetong method helped cut down on the time and labour involved in a construction project and played a pivotal part in Skanska's international development, as the company turned more and more to markets beyond its Scandinavian base.

Helping to fuel the company's expansion was its listing on the Stockholm stock exchange in 1965. Following the listing, Skanska stepped up its international growth, moving into new markets in Africa and the Middle East. After securing a strong position for itself in these markets by the late 1960s, Skanska returned closer to home, entering Poland and the Soviet Union in the early 1970s. Among the company's major projects in the Eastern European markets during this period was its construction of the Forum Hotel in Warsaw, which featured 750 rooms and also marked the first turnkey hotel project completed by Skanska outside of its Swedish home base.

Principal Subsidiaries: Barclay White Inc. (U.S.A.); Costain Group; Flexator; Heinz Essmann GmbH; Industriventilation Produkt; Poggenpohl Group (Germany); SADE Ingenieria y Construcciones S.A. (Argentina); Skanska AS (Norway); Skanska Denmark A/S (Denmark); Skanska Etkin Construction (U.S.A.); Skanska Europe AB; Skanska International AG (Switzerland); Skanska Oy (Finland); IPS Praha a.s. (Czech Republic; 66%); Skanska UK; Skanska Project Development and Real Estate; Skanska BOT AB; Skanska Oresund AB; Skanska Projektutveckling och Fastigheter AB; Skanska Projektutveckling Sverige AB; Skanska Services; SCEM Reinsurance S.A. (Luxembourg); Skanska Facilities Management; Skanska Financial Services AB; Skanska Forsakrings AB; Skanska IT Solutions AB; Skanska Teknik AB; Skanska Sweden; Skanska Industrial Construction; Skanska International Civil Engineering AB; Skanska Prefab AB; Skanska Road Construction; Skanska Sverige AB; Skanska Underground Construction and Bridges; Skanska (USA) Inc.; Beers Construction Co.; Koch Skanska Inc.; Slattery Skanska Inc.; Sordoni Skanska Construction Co.


Skanska aims to lead the field in both commercial success and quality. Their financial targets reflectour ambition to exceed the industry norm. In each of their geographic markets and specific segments, they have established what they call 'outperform targets.'

In addition to the financial targets - and as a means to reach them, they have also adopted qualitative targets.

The qualitative targets are expressed in Skanska's five zeros vision:

  • Zero loss-making projects. Loss makers not only destroy profitability, but also affect customer relationships.
  • Zero accidents, whereby the safety of their personnel as well as subcontractors, suppliers and the general public is ensured.
  • Zero environmental incidents, which meantheir projects, should be executed in a manner that minimizes environmental impact.
  • Zero ethical breaches, meaning that we take a zero-tolerance approach to any form of bribery or corruption.
  • Zero defects, with the double aim of improving the bottom line and increasing customer satisfaction.

The qualitative targets, as expressed in the five zeros, reflect their core values. The five zeros, as well as the outperform financial targets; provide the basis for incentive systems at various levels within Skanska.

Strategy and Values:

Skanska's strategy for achieving its operational and financial targets is:

  • To focus on core businesses in construction and development
  • To be an international company, with a leading position in selected home markets
  • To take advantage of Skanska's worldwide collective resources - brand, employee expertise and financial strength
  • To foresee and systematically manage risk
  • To enhance green expertise throughout our operations
  • To be an industry leader in green building and sustainability, in particularly in occupational health and safety, ethics and environment
  • To recruit, develop and retain competent employees and to achieve a greater diversity
  • To capitalise on urbanisation trends.

The five zeros:

        Clients, customers, investors and employees all care about what kind of company Skanska is.To take on board these demands and maintain the Skanska brand, we strive to succeed in our values of:

  • Zero loss-making projects
  • Zero accidents
  • Zero environmental incidents
  • Zero ethical breaches and
  • Zero defects.


During solving this question we have found that different companies have different Business and Operational strategies and strategy models, but it all depends upon the Goal, Which the company wants to achieve. These three companies have different kinds of Goal, therefore there Business and Operational strategies and strategy models are different.


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