Environment Strategy Structure Operations †MyAssignmenthelp.com

Question: Discuss about the Environment Strategy Structure Operations. Answer: Introduction Engineering management is an important aspect of company operations that help manage various engineering and construction services. As Chesbrough and Rosenbloom (2002) indicate, business models contribute to the success of the business or failure of the business. One example of a business that largely depends on a diverse business model is Element Engineering Australia. The company has been a key player in mechanical engineering and industrial management services. The following paper explores business model as applied in engineering management of Element Engineering Australia. Element Engineering Australia is a company that designs, analyses and certification of a current design, mechanical and production of a prototypes for customers in Australia and internationally. Element Engineering Australia operates in the industrial sector, particularly mechanical engineering and management services. The market where Element Engineering Australia is a key player formally includes Australian and New Zealand industrial or engineering market but currently Asia-Pacific region and South America (Element Engineering Australia, 2018). The market for Element Engineering Australia has been of both industrial and mechanical engineering management services sector. Through its mechanical services, Element Engineering Australia provides mechanical design services that also comprise of designing, building and maintaining these assets. Some of the products and services include mechanical designing services, wheel chock, marketing of designs, tyre inspection stand, mechanical analysis, rim component stand, tyre assembly stand and certification of a current design (Element Engineering Australia, 2018). Business model canvas of Element Engineering Australia Element Engineering Australia has an interesting business model that basically consists of servitization of products business model. The business model mainly consist of converting products into services that is evidence by wheel chock that is product yet offered as service. It is important to understand the business model based on the nine building blocks as indicated by business model canvas. In order to understand more about the business model and its building blocks each aspect of business are analyzed critically. Firstly, Element Engineering Australia key partners include local or indigenous communities, industrial key players, government agencies, and suppliers. The desire for partnership and collaborations is the key drive that glues together the company with its partners. For instance, the desire diligently serve local community is creating job opportunities for local communities. Secondly, the company has variety of key activities that forms its value proportion and some of these key activities include designing of structures, civil constructions, provision of structural maintenance, and delivery of certification of a current design services, provides outsourced facility services, and provision of mechanical services (Osterwalder, 2004). Element Engineering Australia value most of its activities as nearly all the activities contribute to the business revenue stream. Thirdly, the value proportion of the company is based on inclusivity and support for indigenous communities living in Austra lia through development and sustainability. The company creates employment opportunities for local community and procurement of local goods and services. Moreover, through projects within the local communities, the company stresses on the need to incorporate local community in the companys business model. Fourthly, the company business model offers a unique audience relationship that is fostered by their philosophy for customer satisfaction (Element Engineering Australia, 2018). Integration of audience expectation into the business model is key for success of the business especially those indigenous communities which is key goal of the business. Finally, the audient segment for the Element Engineering Australia includes construction sector, industrial sector, transport sector, and the general public. The most important audience for the company is majorly the community since the community plays an important role in provision of market and labor (Gordijn, 2002). Resource and channel of distribution Element Engineering Australia has many different key resources that range from human resources, raw materials, assets and revenues. Human resources mostly focus on managing employees and staffs that include management and casual laborers within local projects. Raw materials help the company in construction sites and manufacture of various products (Osterwalder, Yves Alan, 2010). Assets include motor vehicles and equipments that facilitate service delivery for many company projects and business. Finally, revenues include money received from projects management services and mechanical design services the company offered with certification of a current design. Secondly, the distribution channel for the business consists of wide network that interconnect key players in the business value chain. The business has both distribution channel for its products and services directly managed by marketing and distribution department. In some cases the project manager directly connects to local pr ojects and sometimes human resource manager play role in connecting with customers for the purpose of providing employment. Purchase department leads the supply channel while accounts section monitor revenue stream and these channels are interconnected (Magretta, 2002). The cost structure for the business model cut across various revenue sources ranging from multimillion-dollar projects to certification of a current design services. One of the most important cost include employees payment given the huge number of employees that the company has. Employees payment is important since the company has good reputation mostly focus on creating employment for locals and equally payment for such staffs. Secondly, Revenue stream for the company is obtained and mainly consist of revenue from sale of products, direct services and indirect services. For the products, Element Engineering Australia has a wide variety of products that are sold through various branches such as revenue from structural analysis, mechanical design services and certification of a current design services (George Bock, 2011). The relationship between nine blocks Nearly all nine building blocks are interrelated with one another and this relationship enables the business to operate and achieve its goals. Key partners are connected to key activities since various partners offers business services through business activities. The value proposition is also connected to key activities since those activities help the business offer value to customers (De, Bouwman Timber, 2013). Value proposition plays role in the audience relationship since core value is linked to the audience through the cost of services. Audience segment, on the other hand, is related to value proposition through the relation the business has with customers. In the next level of the business model key partners is linked with business resources since key partners such as suppliers provide resources such as raw materials that are used for key activities of the business. These key resources also form the basis for the creation of value proposition which is engineering services. Var ious engineering service is offered to customers through distribution channel which as per the model used by Element Engineering Australia is division based. Distribution channel forms the connection for offering mechanical engineering services to audience segment. The overall business model aims to generate revenue without high cost (Burkhart et al, 2011). There are some factors that have to lead to the success of Element Engineering Australia in industrial and mechanical engineering sectors in Australia. Some of these factors include product diversification, good business niche, industrial position and good reputation. Firstly, Element Engineering Australias product diversification has been achieved through venture in many different industrial product design and mechanical engineering sector (Robin, 2008). For instance, Element Engineering Australia has upper hand in structural analysis, mechanical engineering, mechanical design and certification of a current design. Secondly, the industrial position is another success factor that helps the company to sail higher in the mechanical engineering sector of Australia. Element Engineering Australia is a leading industrial company in the engineering, mechanical design and certification sector of Australia and this is evidenced by the ability of the company to grow faster and overall net wort h of the company. Thirdly, the business strategy venture into new business niche has made the business to offer diversified products. For instance, the company offers unique services that has attracted few key players and is promising. The reputation of the company rests on the various unique service lines the company has and its ability to diversify more (Element Engineering Australia, 2018). The downside risk that is most likely to rock the company includes a management structure due to fast growth, over delayed projects and limited investment in mechanical design engineering. Firstly, the management structure is one factor that is most likely contributes to downside risk. Fast growth of the company contributes to organization management challenge and is most likely to contribute to the downside of the organization. Moreover, changes in the management and organizational culture due to incorporation from different services that were not previously part of company services. Collaboration with other companies specifically has very many organization changes that can highly contribute to the downside of Element Engineering Australia (Robin, 2008). Secondly, over delay on project completion leading to high maintenance cost for various structural analysis in construction sites. Tough economic times in Australia and New Zealand have resulted in a delay for many projects. Delays are projecting to contribute to the companys downside in the near future. New Zealand particularly faces an economic challenge since the earthquake that rocks the whole country. Thirdly, low government investment in the infrastructure development that is currently witnessed in Australia is also posing risk to major industrial players. The company faces the risk of limited growth due to a low number of mechanical projects expected in future (Element Engineering Australia, 2018). Changes I would make to the business model There are many different changes that could to be made to the business if it was my business. Firstly, I would introduce the modern and current technology into the business model to assist in the monitoring of various divisions (Peterovic Kittl et al, 2001). There is need to incorporate the information technology into the business to facilitate communication between staffs and customers. Secondly, I would introduce a strong engineering consultancy services as another service to the already available portfolios (Lim, 2010). The importance of consultancy services that the business can offer to customers help deal with the tough economic conditions that are currently rocking the industry. In addition, consultancy services will increase customer relationship hence increasing service delivery to the local community. Finally, focusing on sustainable management practice will also help the business to tackle the current global sustainable calls that affect most of the industries. Sustainabl e business practices also have a role in the society which is currently the primary focus of the company. Business models with sustainable management strive and attract the attention of investors that form part of the normal business environment (Linder Cantrell, 2000). Conclusion In conclusion, Element Engineering Australia remains a key player in industrial, construction and mining sector. The company uses the business model that focuses on local communities through more need to be done to incorporate current modern technologies. There are also some factors that have contributed to the success of the company and other factors are most likely to contribute to its downside risk. In understanding the business model canvas the nine building blocks clearly show interrelationship. Reference Burkhart, T. et al, (2011), Analyzing the Business Model Concept A Comprehensive Classification of Literature, Proceedings of the International Conference on Information Systems (ICIS 2011). Paper 12. Chesbrough H. Rosenbloom, R. S. (2002), The Role of the Business Model in capturing value from Innovation: Evidence from XEROX Corporation's Technology Spinoff Companies., Boston, Massachusetts, Harvard Business School. De, R., Bouwman, M.H. Timber H. 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(2000), Changing Business Models: Surveying the Landscape, Accenture Institute for Strategic Change. Magretta, J. (2002), Why Business Models Matter, Harvard Business Review, May: 86-92. Osterwalder, A. Yves P. Alan S. (2010), Business Model Generation, and 470 practitioners from 45 countries, Wiley published. Osterwalder, A. (2004). The Business Model Ontology - A Proposition In A Design Science Approach. The Ph.D. thesis University of Lausanne. Peterovic, O. Kittl, C. et al., (2001), Developing Business Models for eBusiness., International Conference on Electronic Commerce 2001.