Every company is subject to the impact of business cycle, characterized by four phases: recession, depression, recovery and expansion. However, some industries like construction industry and construction-linked companies have very often experienced the thrill of a roller-coaster ride!
It is hence very important for construction companies not only understand the business cycle specific to its industry, but they also have to pre-empt and exploit the cycle into their favor. An EDG project will probably include the following deliverables:
- Coach top executives on the use of business cycle and tendering strategy.
- Review company's past 4-5 years financial performance, its growth drivers and weaknesses.
- Compare company's financial performance against the relevant business cycle.
- Find out which economic indicator(s) is most predictive of the relevant business cycle.
- Improve company's project pipeline monitoring system.
- Predict the next business cycle and formulate best strategic response during each phase of the business cycle.
- Capitalize on disruptive technology in the industry, if any.
- Devise a long-term strategy road map for improving business and financial performance in response to the business cycle.