Strategic Plan and Implementation Proposal

By Julie L. BentleySTR/581

April 6, 2015Kenneth Chapman

What is Needed Currently that has not been Tapped

GOAL INITIATIVE FOR STRATEGIC PLANNING:

The company wishes to change the strategic planning of this organization which already includes: 1) operational excellence, 2) customer intimacy, 3) product leadership, 4) differentiation, 5) focus, 6) concentrated growth, 7) product development, 8) innovation, 9) horizontal and vertical acquisitions, 10) concentric diversification, with a change to include a new grand strategy of 11) conglomerate diversification.

New project developments – 4 areas in Middle East, Japan.

Business MissionBusiness Mission: "CB&I is the most complete energy infrastructure focused company in

the world and a major provider of government services. With 125 years of experience and the expertise of approximately 54,000 employees, CB&I provides reliable solutions while maintaining a relentless focus on safety and an uncompromising standard of quality. As one of the most complete providers of a wide range of services including design, engineering, construction, fabrication, maintenance and environmental services, no project is too big for CB&I. Our timely and cost-effective solutions not only satisfy our customers' needs, but also improve the quality of life for people around the world" (cbi.com, 2015).

The Mission Statement states: "Sustain earnings (profit) growth at levels where stakeholders view CB&I as a "growth" company" (cbi.com, 2015).

Impact of Strategy to Customer and Employee

Customer Impacts: Employee Impacts:1. Provides Reliable Solutions. 1. Builds trust 2. Major Provider of Govern- 2. Reliability and Training ment Services. 3. Continued Accounta-3. Relentless Focus on Safety. bility4. Uncompromising Standard of 4. Continued Safety Quality. 5. Builds Communication.5. Design, engineering, construction.6. Fabrication, Delivery, Maintenance7. Assembly and Repairs.

Event Milestones for ImplementationSchedule Dates:

Begin Date: April 1, 2015 Ending Date : December 31, 2020

First Milestone: 1) Major Events Milestones for Implementation of new strategic management initiative: May 1, 2015Second Project Milestone: 2) Milestones for new storage tank contracted projects:

Scheduled Dates can be found on the Executive Summary Sheet and Proposal Agenda Sheet on pages: 5, 6, 24, 25.

Funding Initiatives Needed

Funding Request:The Company requests a total loan of $2,000,000,000.00 over the course of 15 years, to be used for the following purposes: 1) 4 projects - Middle East- Petroleum, Natural Gas, Water Storage Facilities, and 2) Upkeep of Japanese water infrastructure since environmental weather disasters.

Purpose Loan Amounts -$• Staffing $8.4 million dollars• Equipment- $1 billion dollars• Contract Pricing- $10.5 million dollars• Business Law/Legal Regulatory Licensure fees - $2

million dollars• Logistical Transport- $12 million dollars• Long-term debt payment is a key feature of the

Company's financial plan. We expect to break even within an 8-12 year time period following the introduction of our products. Financial predictions suggest a minimum 22.17% percent return on investment by the conclusion of the financing period

Business Goals and Objectives Short-Term Goals:  Continuous improvement of safety standards measured monthly for up to one year on OSHA standards. Increase of 2-

5% this year. Procurement of 99% quality steel within 6 months of new projects initiated in May 2015. Reduction of turnover rate of 3% for May 2015 - November 2015. Increase in contract approvals of 5%.  

Globally:  Decrease in delay of fabrication of steel for petroleum storage - Monthly 1-2%. Decrease in transport time - 3% for next year. Increase in cultural standards of care for environment social issues with building of projects - 2-5%. Measured

monthly at end of month and sent to corporate headquarters. Increase in communication globally with project managers - 2-5% technology increase (Skype, Email, Phone, Text).

Long Term Goals and Objectives Continuous product development. Innovation of greatly improved and new energy infrastructure projects - reap

initially high profits associated with customer acceptance. Differentiation: attributes of final product over other product qualities, and

customer loyalty. Focus: attend to needs of domestic and global projects. Maintenance and

service for infrastructure projects. Operational Excellence Customer Intimacy Product Leadership Concentrated Growth Market Development Horizontal and Vertical Acquisition Concentric Diversification Conglomerate Diversification - NEW GRAND STRATEGY INNOVATION

LONG TERM GOAL.

Future Plans with Your Help

With the additional strategic plan of conglomerate diversification, the management team is wanting to present to the Board and venture capitalist group a most promising investment opportunity to increase CB&I’s stock value for shareholders, achievement of tax savings, an increase in the efficiency and profitability of synergy between CB&I and the company or companies acquired (Pearce & Robinson, 2013). We as Chicago Bridge & Iron’s strategic management team have discovered that using a combination of the value disciplines, generic and a combination of grand strategies that Chicago Bridge & Iron has in the past, concurrently, and in the future will continue to be one of the largest energy infrastructure organizations that shares its knowledge and expertise domestically and globally.

A HUGE THANK YOU FOR YOUR TIME AND

CONSIDERATION OF THE MATTER.

Questions

If you have any Questions now is the time to ask – The strategic Management Team will answer them at this time !!!!!

References

Chicago Bridge and Iron. (2015). CB&I. Retrieved from http://www.cbi.com/

Pearce, J.A. & Robinson, R.B. (2013) Strategic Management: Planning for Domestic and Global Competition (13th ed). New York, NY: McGraw-Hill