str 581 week 6 individual strategic plan and presentation

Running head: STRATEGIC PLAN AND PRESENTATION - CB&I 1

Strategic Plan and Presentation - CB&I

Julie L. Bentley

STR/581

April 6, 2015

Kenneth Chapman

STRATEGIC PLAN AND PRESENTATION - CB&I 2

Strategic Plan and Presentation - CB&IEXECUTIVE SUMMARY

Chicago Bridge & IronHorace E. Horton- Original FounderPhillip Asherman, CEO, PresidentOne CB&I Plaza2103 Research Forest Drive The Woodlands, Texas 77380 Telephone: 832-513-1000

Chicago Bridge & Iron (referred to from hereon in as the "Company") was established as a S Corporation at One CB&I Plaza, 2103 Research Forest Drive, The Woodlands, Texas 77380 with the expectation of rapid expansion in the energy infrastructure industry. 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.

Solicit financial backing in order to be able to introduce its products and services to new global areas (described below).

Business Description:

The Company was formed on August, 1889 as an S Corporation under Illinois state laws and headed by Horace E. Horton. Director of Development and introduction of Pratt-Truss Bridge. Director and opening of first fabrication plant in Washington Heights, IL. Product Development and Refinement of Energy Storage Tanks for water, petroleum, and natural gas. Development of first automatic girth seam welder which improved weld quality of storage tanks.

1889 - Establishment of Chicago Bridge and Iron 1889-Present - Operational Excellence, Customer Intimacy, and Product Leadership 1894 - First elevated steel plate water storage tank. 1923 - First floating roof tank for oil, natural gas, and petroleum. 1923- First Hortonsphere Pressure Vessel was designed and trademarked. 1930 - First Fractionating Towers were built for Standard Oil of Louisiana. 1959 - Development of Ornamental Water storage Tanks, Awards for global energy

storage devices used. Currently – Global Energy Infrastructure Organization.

Acquisitions:


Howe-Baker International, L.L.C. Shaw Group Pitt-Des Moines, Inc. John Brown Hydrocarbons, Limited Fabrication shop in Beaumont, TX, which has deep water access to Gulf of Mexico. Lummus Corp. Catalytic Distillation Technologies (CDTECH) E-gas solids gasification technology for conversion of coal and petroleum coke into

syngas. 1996- Praxair, Inc. merged with CB&I.

The Company currently employs 54,000 full-time employees and 4,868 part-time employees.

Management Team:

The Company has assembled an experienced management team:

President and Chief Executive Officer of CB&I - Philip K. Asherman, 35 years experience.Executive Vice President and operating group President of Engineering, Construction andMaintenance. - Patrick K. Mullen, 25 years experience.Executive Vice President and operating group President of Technology - Daniel M. McCarthy, 37 years experience.Executive Vice President and operating group President of Fabrication Services - Luke V. Scorsone, 34 years experience.Vice President and operating group President of Environmental Solutions - E. Chip Ray, 30 years of global experience in operations, business development, strategic planning, mergers & acquisitions, investor relations and marketing & communications. Prior to his current role, he served as Executive Vice President, Corporate Planning from September 2007. Before joining CB&I, he worked as Executive Director of Strategy and Marketing for Fluor Corporation. Before joining Fluor, he spent 13 years with Nalco Chemical Company.Executive Vice President and Chief Administration Officer - Beth A. Bailey, 39 years - in 1976 and has progressed through increasingly responsible roles in the IT organization. She was named Vice President –Information Technology in March 1999.Executive Vice President, Chief Legal Officer and Secretary - Richard E. Chandler, Jr., 30 years extensive experience in corporate law, mergers and acquisitions, antitrust and international business transactions. Prior to joining CB&I, he served as Senior Vice President, General Counsel and Corporate Secretary of Smith International, Inc. since 2005, where he was responsible for developing and managing the company’s international legal strategy, including the design and implementation of its legal compliance program. From 1986 to 2005, he served as Vice President & General Counsel of M-I/SWACO, a leading supplier of engineered drilling fluid systems and drilling waste management and environmental solutions.Executive Vice President of Global Systems - James W. Sabin, 30 years of project execution and information technology experience. Prior to his current role, Mr. Sabin served as Senior


Vice President of Global Systems and Senior President of Shaw’s Power Group. He previously held several senior leadership positions with increasing levels of responsibility within Shaw.Executive Vice President and Chief Financial Officer – Michael S. Taff, 30 years of financial and global industry experience. He joins CB&I from Flowserve Corporation where he served as Senior Vice President and Chief Financial Officer. He previously served as Senior Vice President and Chief Financial Officer for McDermott International Inc., and also for The Babcock and Wilcox Company following its spin-off from McDermott. Mr. Taff also has held finance leadership roles at HMT, Inc., Philip Services Corporation and British Petroleum Oil Company. He spent nine years in public accounting at Price Waterhouse, has a bachelor of business administration degree in accounting from Stephen F. Austin State University and is a certified public accountant. "Mike has extensive experience leading corporate financial organizations. His breadth of knowledge, particularly within our industry, makes him an ideal addition to CB&I's executive management team, and we are confident he will help the company continue to drive shareholder value," said Philip K. Asherman, CB&I's President and Chief Executive Officer.

Business 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).

New Product/Services:

Conglomerate Diversification strategy change where acquisition of business or competition would present the most promising investment opportunity available leading to increase in CB&I’s stock value, acquirement of needed resources quickly, achievement of tax savings 12-28%, increase in the efficiency and profitability of synergy between CB&I and the acquired business.

After a period of thorough trial and error, the Company is prepared to introduce the following product/services to the market – 4 new storage tank devices in Middle East and current restructuring of water supply system and storage in Japan.

Energy Infrastructure Storage Tank-Petroleum, Natural Gas, Water: Includes maintenance and environmental Services for new energy infrastructure projects.

Demand for safe, uncompromising standard of quality, and improvement of quality of life for people domestically and globally of energy infrastructure products with maintenance and service contracts for continuous improvements of product and service.


1) Major Events Milestones for Implementation of new strategic management initiative:

The following event milestones will be used for evaluation of continued implementation of new strategic management initiative of conglomerate diversification:

Event Department Responsible

Date Due: Responsible Person Contact

1. Beginning of Strategic Management Change

Corporate and World Headquarters: Administration, Executive Board, Board of Trustees, Governing Board

May 1, 2015 Phillip AshermanJames SabinMichael Taff

2. Implementation Internally

Operating Department – Domestic and Global

June 30, 2015 Phillip AshermanPatrick MullenBeth BaileyRichard E. Chandler, Jr.James SabinMichael Taff

3. Measurement of internal acceptance to expand externally

Operating Department

Every 3 months starting May 1, 2015, August 31, 2015, December 30, 2015.

Patrick Mullen, Richard E. Chandler, Jr.James Sabin, Michael Taff

4. Assessment of Measurement Controls

Finance and Operation Departments

Quarterly starting May 1, 2015, August 31, 2015, December 30, 2015.

Michael Taff, James Sabin, Patrick Mullen, Beth Bailey,

5. Completion of Strategic Management -Conglomerate Diversification

Regional and Corporate Headquarters, Operating Department

December 31, 2015 Phillip Asherman, James Sabin, Beth Bailey, Richard E. Chandler, Patrick Mullen, Daniel McCarthy, Luke Scorsone, E. Chip RayMichael Taff

2) Event Milestones for new storage tank contracted projects:

Event Responsible Region or Department

Date Due Contact Persons


Petroleum Storage Tank in Dubai

Middle East DivisionCorporate Operating Office

December 31, 2016 James SabinPatrick MullenE. Chip RayRichard Chandler Jr.Luke ScorsoneDaniel McCarthyBeth BaileyMichael Taff

Natural Gas Storage and Piping in Arab Emirates

Middle East Division and Corporate Operating Office


Water Storage Tank in Egypt



Water storage Tank in Japan with piping

Asia Division and Corporate Operating Office


Upkeep maintenance and service for Japan Water Storage Devices




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 Amount:

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:

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 for CB&I:

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. Implementation of the new

conglomerate diversification strategy may lead to growth and expansion where previously not

considered in domestic and global markets, with a tax savings of 12-28%, a ROI of 22.17% is

calculated from accounting department and will continue to be evaluated during the

implementation of the milestone objectives.

Strategic Plan

Chicago Bridge and Iron (CB&I) used grand strategies from the establishment of the

organization in 1889 by Horace E. Horton to the present day. These strategies have changed


throughout the 125 years that it has been in the energy infrastructure business, but it has never

lost the desire, need, or demand to not grow. Looking at these strategies can help show us how

CB&I use these strategies to grow and stay the leader in the energy infrastructure industry

(cbi.com, 2015).

Recommendations for Chicago Bridge and Iron would be along with the current

strategies of operational excellence, customer intimacy (domestic and global), product

leadership, differentiation, focus, concentrated growth of dominant product, market, and

dominant technology for the energy infrastructure products, product development, innovation,

horizontal and vertical acquisitions, concentric diversification, the addition of the grand strategy

of conglomerate diversification where acquisition of a business or competition would present the

most promising investment opportunity available for the shareholder of CB&I (Pearce &

Robinson, 2013). The potential for growth using implementation of the conglomerate

diversification grand strategy would be an 1) increase in CB&I’s stock value, 2) acquirement of

needed resources quickly (such as acquisition of fabrication shop in Beaumont, Texas, which has

deep water access to Gulf of Mexico, which increases CB&I’s capacity to fabricate and transport

large scale process modules, shop built vessels, and large steel plate subassemblies), 3)

achievement of tax savings (12-28%) if purchasing a firm that tax losses offset current or future

earnings for CB&I), 4) an increase in the efficiency and profitability of synergy between

Chicago Bridge & Iron and the company acquired (Pearce & Robinson, 2013).


Table of Contents

Title Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9 Event Milestone Graphs (ES) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,6Future Plans of CB&I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Strategic Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Company Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11External and Internal Environment Scan with Trend Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 12Most Important External Environmental Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Most Important Internal Strengths and Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 SWOT Analysis Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Sources to Perform an External Environmental Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Assessment of Chicago Bridge and Iron’s Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Competitive Position and Possibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Current Structure of Chicago Bridge & Iron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Best Value Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Best Generic Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20A Combination of Grand Strategies at CB&I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Recommendation of Strategy to Implement for Opportunity of Growth . . . . . . . . . . . . . . . . . . 23Implementation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Milestone Chart (New Strategic Management Initiative) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Milestone Chart (New Projects – Middle East, Japan) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Strategy Map Implementation Schedule with Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-31Control Plan For Chicago Bridge and Iron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Functional Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Resource Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Required Organizational Change Management Strategies for Implementation . . . . . . . . . . . . 33Budget, Forecasted Financials, and Break Even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Key Risks With Contingency Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37


Company Background

Chicago Bridge and Iron (CB&I – NYSE) was started in 1889 by Horace E. Horton with

the startup of Bridge-Truss which then after the first 3-4 projects turned into a fabrication shop in

Washington Heights, IL (cbi.com, 2015). It turned to acquisitions, and working with the energy

infrastructure development, and when war need and demand occurred it developed what was

needed for oil, and energy for the war efforts. It continued to develop and refine its current

products of water, petroleum, oil, and natural gas storage devices, and even developed and

engineered refinement of an automatic welder which increased finished production of the storage

devices in 1959. With continued growth, and sustainability, CB& I became the leader in the

energy infrastructure domestic and global business world which continues to this very day.

Following is their mission, vision, and value statements which describe what Chicago Bridge &

Iron is all about.

CB&I’s strategic statement is stated as “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 reads, “Become a preferred global supplier in our strategic markets across the full

spectrum of our services. Sustain earnings (profit) growth at levels where stakeholders view


CB&I as a “growth” company” (cbi.com, 2015). The value statement is “At CB&I, we conduct

business in a fair, ethical, and lawful manner worldwide, and we associate with business partners

(customers, suppliers, subcontractors, and financial institutions) that share this approach. As a

company and as individual employees, the fundamental values that we will not compromise are:

1) safety, 2) integrity, 3) excellence, 4) innovation, 5) potential, and 6) accountability. Our code

of ethics is part of our value system and we will strive to uphold the highest ethical standards in

all our worldwide operations” (cbi.com, 2015).

External and Internal Environment Scan with Trend Analysis

External and internal factors are considered along with the structure of the organization

when looking at the internal operational performance and the effects that this entails on the

competitive position and possibilities of an organization (Pearce & Robinson, 2013).

Following is an analysis that will look at the external environmental factors and the

internal strengths and weakness of Chicago Bridge & Iron, along with the trends identified. It

will look at how the external and internal factors give assessment of Chicago Bridge & Iron’s

competitive position and possibilities, and how in evaluation and analysis this plays a part in the

structure and how this affects CB&I’s operational and internal operational performance.

Most Important External Environmental Factors

The most important external environmental factors include some from each environment.

In the remote environment, the most important external factors are economic, social, political,

and technological. In the industry environment, the most important external environmental

factors are supplier power and buyer power due to the global environment that CB&I operates.

The most important external factors in the operating environment are the creditors, customers,


labor, and suppliers which all determine when the projects are finished and when the final

product is done in the country that initially contracts the job (Pearce & Robinson, 2013).

The economic factors concern the nature and direction of the economy in which CB& I

conduct business affairs. Social factors that affect CB& I are the values, beliefs, opinions, and

lifestyles of the firm’s countries where projects are built. The stability and direction of the

political powers in control of the countries where it operates is another factor that determines the

strategic direction of the organization. Technological advances worldwide are enabling the

remote business of CB&I to go into areas where previously it would have been hard to conduct a

project, or other infrastructure endeavors (Pearce & Robinson, 2013).

In the industry environment the most important factors were supplier power and buyer

power. Supplier power is shown to CB& I by exerting their power over the prices charged for

the steel, and supplies needed to complete the infrastructure projects. Reduction of the quality of

the goods was also seen in some of the infrastructure materials used in China for a new waterway

system (cbi.com, 2015). Buyer power was used to force down the prices charged by CB& I of

the projects bid on, demanding higher quality and more service for the projects done (Pearce &

Robinson, 2013). Bargaining power is seen much in the Middle East region of Kuwait, and in

Qatar (cbi.com). In the operating environment, the customers, creditors, suppliers, and labor all

contribute to Chicago Bridge and Iron’s success or failure. The operating environment is also

known as the competitive or task environment and comprises factors in the competitive situation

that affects CB& I’s success in acquiring needed resources or profitably marketing its goods or

services (Pearce & Robinson, 2013). We will discuss the competitive position and environment

of CB&I in a section below. The customer profiles that are the market of CB& I determine the

strategic plan so resources can be reallocated if the country has political unrest, or resources are


unavailable. CB& I consumer and buyer behaviors in these countries globally, and determines

the cultural factors before even beginning an infrastructure project. Creditors are used to

determine if a project will be completed due to repayment schedules of the country that needs the

infrastructure project. Suppliers that are dependable are a must for CB& I. Long term

relationships are built with these suppliers due to the type of work that Chicago Bridge and Iron

does. The labor market is another operating environment factor that is most important when

working globally with infrastructure projects. Availability, reputation, and employment rates

internationally determine what type of worker that is available with the infrastructure projects

(Pearce & Robinson, 2013).

Most Important Internal Strengths and Weaknesses

Following is the SWOT analysis for Chicago Bridge and Iron. It shows that strengths

and weaknesses of the whole organization without being cut up into pieces regionally with

different offices throughout the domestic and international world.

Strengths

125 Year History

Energy Infrastructure World-Wide

58,468 Employee Strong

Provides Reliable Solutions

Focus on Safety

Uncompromising Standard of Quality

Weaknesses

Delay in Production Time Frame

Delay of Resource Materials

Opportunities

Energy Infrastructure Globally

Cross Cultural Learning Team

Threats

Global Competitors

Governmental Regulations and


Initiatives

Growth domestic and globally

Timely and Cost Effective Solutions

Restrictions

Lack of Cultural Resources –

manpower, machinery, weather, and

environmental factors.

Civil Wars Globally

The most important of the strengths are 1) 125 year history, 2) energy infrastructure

world-wide that provides reliable solutions and safety, and 3) uncompromising standard of

quality of every project that CB& I constructs (cbi.com, 2015). The most important of the

weaknesses are the delay in production time schedules, and the delay of resources due to

logistical shipment, political unrest, or environmental issues.

Sources to Perform an External Environmental Analysis

The sources used for the external environmental analysis is using factors from the remote,

industry, and operating environments. In the remote environment the research proposal will

concentrate on economic factors domestic and globally, social factors domestic and globally,

direction and stability of the political environment domestic and globally, and ecological factors

that will control and monitor pollution domestic and globally. Regulatory factors will be

followed internationally with using the less cost resources for ecological factors of air, land, and

water pollution prevention (Pearce & Robinson, 2013). Technological factors will be the last to

be analyzed due to the international regulation of internet and wireless electronic data transfer to

the home offices in 5 different continents.


In the industry external environment an analysis of competition in the industry will be of

great value to CB&I. Strategy for this industry environment is finding a way of coping and using

the competition as subcontractors for the infrastructure development of the project. Assessment

of the determinants of suppliers domestic and globally with be the main emphasis for this

industrial environment (Pearce & Robinson, 2013). Also, looking at the economies of scale with

the discounted governmental regulations will be of benefit for additional projects and the

integrity of work well done.

In evaluation of the research proposal in respect to the operating environment it is found

that CB&I has the capability of acquiring the needed resources and profitably marketing its

goods and services simply in relation to what the vision statement means when it states that 1)

“we expect consistent and strong growth regardless of market cycles”, 2) “we will focus on

earnings (profit) growth as our primary measure”, and 3) “we are continuing to focus our long-

term strategy on how to best grow our business based on our core competencies” (cbi.com,

2015).

Assessment of Chicago Bridge & Iron’s Resources

Chicago Bridge and Iron has three basic resources. The tangible assets are the physical

and financial means CB&I used to provide value to its customers (Pearce & Robinson, 2013).

The total assets that was evidenced by CB&I was from the balance sheet annual report that

totaled $9,389,593. That does not include the acquisition of Shaw Industries in 2013, which

Chicago Bridge and Iron bought because of external environmental factors of modulation, and

electrical energy infrastructure (cbi.com, 2015). The intangible assets are the company

reputation, organizational morale with 58,468 plus employees, technical infrastructure

knowledge, patents and trademarks, and the accumulated experience of 125 years (Pearce &


Robinson, 2013). Organizational capabilities are the other resource that CB& I utilizes to a

maximum to combine assets, people, and processes of taking inputs into output of superb global

infrastructure systems (Pearce & Robinson, 2013).

The trend analysis of Chicago Bridge and Iron monitors the performance over an

extended period of time and does annual reports with all accounting statements and financial

information filed with the Security Exchange Commission Office. Key performance indicators

are evaluated 4 times per year for CB& I and this information is used to refine the business

decisions and strategies. The measurements used with Chicago Bridge and Iron are the sales, cost

of goods and inventory sitting before going to a project, overhead, cash flow, net profits, and

ratio’s that are calculated to determine if the project needs additional manpower labor, or

resource materials. Another good trend that is used at CB&I is staff turnover and injury rate

which evaluates their core competency of 125 years of service in the infrastructure industry with

safety as one of their main competencies (Queensland, 2015).

Using the trend analysis for business improvement is one of the reasons that Chicago

Bridge and Iron has survived for so long with short and long term initiatives. They use the trend

analysis to identify areas of performing well, identify underperforming issues, and the trend

analysis provides evidence for strategic management decision making for continued projection of

future infrastructure projects in areas not previously entered globally (Queensland, 2015).

Competitive Position and Possibilities


Chicago Bridge and Iron has other competition which has been started in the early

1900’s. One is Spectra Energy, which is an infrastructure company (King, 2015), and a newer

competitor to the market is NiSource, which is separating its electric and natural gas businesses

so that it can create more value to its shareholders and value to its community and customers

(NiSource, 2015). One of the ways that I see competition position of Chicago Bridge and Iron is

that they may misread the signals that may indicate a shift in the focus of competitors in the

industry and a refinement of their present strategies or tactics to gain access to global job

projects. Another competitive mistake that may occur is the overlooking of a potential

international competitor that may have worked with CB&I in the past. Chicago Bridge and Iron

does acquire companies that exhibit a strong competition for them such as Shaw Industries in

2013 (cbi.com, 2015). CB&I does not hold any competition as far as experience and knowledge

goes because it uses the best people from diverse countries to accomplish its international and

global strategic plans. The only possibility was mentioned above which is the possible

international entry of a new competitor (Pearce & Robinson, 2013).

Current Structure of Chicago Bridge and Iron

The organizational structure of Chicago Bridge and Iron has a combination of three,

possibly four different structures. It has the traditional organizational structure with the

divisional aspect with a central corporate office located at The Hague, Netherlands. It also has a

matrix organizational structure where because of the increased diversity of the infrastructure

projects that it provides skill and resources where and when they are most needed or vital (Pearce

& Robinson, 2013). The matrix organizational structure also has a product team structure

element to it so that Chicago Bridge and Iron can strategically position its resources to important

projects where most needed (Pearce & Robinson, 2013). It has also started expanding its


structure into the agile virtual organization due to its acquirement of a modular organization of

Shaw Industries in 2013 (cbi.com, 2015). Due to all the regions that CB&I conducts business in

outsourcing some of the work to local areas has become the initiative.

Having a combination of these different organizational structures allows Chicago Bridge

and Iron to have the staying success of any infrastructure industry giant. As the growth into new

global markets continues with the knowledge and technological advances that 2015 holds, CB&I

can only expect that it will have advantages internally and with its organizational performance.

The new water containment system that was just built in Kuwait received an international award,

and other projects are held at high standards of safety and reliable solutions for our growing

world (cbi.com, 2015). As the market share continues to climb on the stock exchange that can

only mean a rise in salary and benefit packages for those that work hard to make sure that

Chicago Bridge and Iron stays on top of the infrastructure industry.

In conclusion of looking at the internal and external environment factors and how they

relate to the organizational structure and competitive position allows any company such as CB&I

to redefine and look at the strategic plans that they want to accomplish in the next 3-5 years.

Knowing that Chicago Bridge and Iron has stabile strengths and a competitive advantage over

the structures of other companies will ensure that the strategic plans are being followed and the

future trends that may occur will not affect it financially, structurally, or business sense wise.

Best Value Discipline


Chicago Bridge and Iron (CB&I) use a combination of all three of the value disciplines in

how they do business in the infrastructure industry – 1) operational excellence, 2) customer

intimacy, and 3) product leadership (Pearce & Robinson, 2013).

CB&I uses operational excellence by using technological and creative processes for

remaking the current product for the best safety energy storage devices known in today’s world

(Pearce & Robinson, 2013).

They use customer intimacy such as the development of the ornamental pineapple water

storage tank in 1959 for the statehood of Hawaii (cbi.com). CB&I continues to develop storage

and infrastructure items individualized for customer projects with what the customer needs and

desires for the best impact for all. CB&I built trust using this value discipline (Pearce &

Robinson, 2013).

Chicago Bridge and Iron (CBI) uses product leadership as another value by production of

energy infrastructure products and services for projects with awards received for many of their

storage tanks and infrastructure projects completed (cbi.com, 2015).

Best Generic Strategy

Using the best competitive advantage to compete in the marketplace, there are two of the

generic strategies that Chicago Bridge and Iron use past, present, and future. They are 1)

differentiation, and 2) focus (Pearce & Robinson, 2013).

CB&I uses differentiation to stress the attribute of the final product above the other

product qualities, and thus, CB&I creates customer loyalty with growth into the other markets

that they have previously not made infrastructure products for (Pearce & Robinson, 2013). If

one petroleum, water, or natural gas storage tank is used for storage at a commercial place of

business, then the competition of that industry expects to use CB&I in development of their


natural gas, water, or petroleum storage tank. This promotes growth for Chicago Bridge and

Iron.

CB&I use focus strategy as a second generic strategy. A focus strategy attempts to attend

to the needs of a particular market segment (Pearce & Robinson, 2013). Chicago Bridge and

Iron has pursued putting water, petroleum, and natural gas storage tanks in isolated geographic

areas, and even a underwater oil storage tank in Dubai in 1969 (cbi.com, 2015). This contributes

to the focus strategy because of the needs of the smaller countries being able to have storage

tanks for the safe storage of water, petroleum, oil, or natural gas.

A Combination of Grand Strategies at CB&I

A combination of grand strategies is used at Chicago Bridge and Iron. A grand strategy is

defined as “a master long-term plan that provides basic direction for major actions for achieving

long-term business objectives” (Pearce & Robinson, 2013). The grand strategies have changed

as time progresses to capture new growth and markets in areas not previously tried. Expertise is

needed in all of the projects because of the magnitude, and immensity of the projects that

Chicago Bridge and Iron design and build in the energy infrastructure industry.

In 1889, concentrated growth was the grand strategy used by Horace E. Horton when he

established Chicago Bridge and Iron in Chicago, Illinois. Also, concentrated growth continued

with the opening of the first fabrication plant in Washington Heights, IL (cbi.com, 2015). The

beginning product and service was the Pratt-Truss Bridge built in Newton, IL, in 1890. The

conditions for CB&I that favor concentrated growth is the product market was sufficiently

distinctive to dissuade competitors in adjacent product markets from trying to invade CB&I’s

segments (Pearce & Robinson, 2013). CB&I also directed its resources to the profitable growth

of a dominant product, market, and had a dominant technology when combined with acquisitions


of other technology companies that caused expansion into the refinement of storage tanks for the

energy infrastructure industry (Pearce & Robinson, 2013).

Another grand strategy that was used by CB&I was product development which involves

the substantial modification of existing products or creation of new but related products that can

be marketed to current customers through established channels (Pearce & Robinson, 2013). This

was seen when in 1950, CB&I introduces the automatic girth seam welder which reduced the

hours required to build a tank while improving the weld quality of the storage tank projects

(cbi.com, 2015).

Innovation was a grand strategy used many times throughout the history of Chicago

Bridge and Iron’s energy infrastructure projects. Innovation is a strategy to reap the initially high

profits associated with customer acceptance of a new or greatly improved product (Pearce &

Robinson, 2013). This happened first in 1894 with the first elevated steel plate water storage tank

that is located in Fort Dodge, IA. Then, in 1923, CB&I introduced the first floating roof tank for

oil industry to reduce the product loss and fire hazards. The roof tank remains the industry

standard for safe and economical storage of petroleum products (cbi.com, 2015). In 1923, the

first Hortonsphere Pressure Vessel was designed which is trademarked. In 1930, the first

petroleum fractionating towers were built for Standard Oil of Louisiana in Baton Rouge, LA.

These fractionating towers offer comprehensive scale of technology and Environmental

Protection Containment services for refiners worldwide. The new products and storage

capabilities continue to this day for Chicago Bridge and Iron (cbi.com, 2015).

Both horizontal and vertical acquisitions are a grand strategy that continues with CB&I

with the acquiring of: 1) Howe-Baker International, L.L.C., 2) Shaw Group (Scott, 2012), 3) Pitt-

Des Moines, Inc., 4) John Brown Hydrocarbons, Limited, headquartered in London, England, 5)


fabrication shop in Beaumont, TX, which has deep water access to Gulf of Mexico, 6) Lummus,

7) Catalytic Distillation Technologies (CDTECH), 8) E-gas solids gasification technology for

conversion of coal and petroleum coke into syngas (cbi.com, 2015).

Concentric Diversification was another grand strategy that is used by Chicago Bridge and

Iron. Turnaround is another grand strategy that was used in 1996 when Praxair, Inc. merged

with CBI Industries in March of 1996. Praxair assembled a new management team that was led

by Gerald M. Glenn. CB&I Company remains with the Chicago Bridge & Iron Company N.V, a

Netherlands corporation and current parent company that remains to 2015 (cbi.com, 2015).

I am unsure whether there are joint ventures, strategic alliances, or consortia found in

Chicago Bridge and Iron. Further assessment and evaluation will be needed to answer this

question.

Recommendation of Strategy to Implement for Opportunity for Growth

Recommendations for Chicago Bridge and Iron would be the grand strategy of

conglomerate diversification where acquisition of a business or competition would present the

most promising investment opportunity available (Pearce & Robinson, 2013). The potential for

growth using implementation of the conglomerate diversification would be an 1) increase in

CB& I’s stock value, 2) acquirement of needed resources quickly (such as the acquisition of

fabrication shop in Beaumont, Texas, which has deep water access to Gulf of Mexico, which

increased CB&I’s capacity to fabricate and transport large scale process modules, shop built

vessels, and large steel plate subassemblies), 3) achievement of tax savings (if purchasing a firm

that tax losses offset current or future earnings for CB&I), 4) an increase in the efficiency and

profitability of synergy between CB&I and the company acquired (Pearce & Robinson, 2013).


In conclusion, we have discovered that using a combination of the value disciplines,

generic strategies, and a combination of grand strategies Chicago Bridge and 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. Implementation

of a different grand strategy which is may lead to growth and expansion where previously not

considered, as only time will tell once implementation initiates, starting April 30, 2015 for

implementation of the new strategic planning choice in addition to the current ones being used.

Implementation Plan

1) Major Events Milestones for Implementation of New Strategic Management Initiative:

The following event milestones will be used for evaluation of continued implementation of new strategic management initiative of conglomerate diversification:

Event Department Responsible

Date Due: Responsible Person Contact

6. Beginning of Strategic Management Change

Corporate and World Headquarters: Administration, Executive Board, Board of Trustees, Governing Board

May 1, 2015 Phillip AshermanJames SabinMichael Taff

7. Implementation Internally

Operating Department – Domestic and Global

June 30, 2015 Phillip AshermanPatrick MullenBeth BaileyRichard E. Chandler, Jr.James SabinMichael Taff

8. Measurement of internal acceptance to expand externally

Operating Department

Every 3 months starting May 1, 2015, August 31, 2015, December 30, 2015.

Patrick Mullen, Richard E. Chandler, Jr.James Sabin, Michael Taff

9. Assessment of Measurement Controls

Finance and Operation Departments

Quarterly starting May 1, 2015, August 31, 2015,

Michael Taff, James Sabin, Patrick Mullen, Beth Bailey,


December 30, 2015.10. Completion of

Strategic Management -Conglomerate Diversification

Regional and Corporate Headquarters, Operating Department

December 31, 2015 Phillip Asherman, James Sabin, Beth Bailey, Richard E. Chandler, Patrick Mullen, Daniel McCarthy, Luke Scorsone, E. Chip RayMichael Taff

2) Event Milestones for New Storage Tank Contracted Projects:

Event Responsible Region or Department

Date Due Contact Persons

Petroleum Storage Tank in Dubai

Middle East DivisionCorporate Operating Office


Natural Gas Storage and Piping in Arab Emirates



Water Storage Tank in Egypt




Water storage Tank in Japan with piping



Upkeep maintenance and service for Japan Water Storage Devices



Strategy Map Implementation

President – CEO, CFO, COO, and Executive Board

Human

Resources

Purchasing Operations Production Finance Logistics Marketing R & D


Recruitment

of employees

with Team

Concept –

starting daily

April 2015

through

December 31,

2020.

1. Purchase

of

Resources-

daily starting

April 30,

2015 –

December

31, 2020.

Regulation

changes

depending on

project

culture- daily

starting on

April 30,

2015,

monthly

starting April

30, 2015.

Daily

production

schedule –

daily

starting

April 1,

2015 –

December

31, 2020.

Exchange

rate

changes –

daily

starting

April 1,

2015 –

December

31, 2020.

Shipment

dates and

times –

daily

starting

April 1,

2015 –

December

31, 2020.

Evaluation

of culture

advertise-

ments -

weekly,

monthly,

yearly.

Current

Product

Assess-

ment –

daily,

weekly,

monthly,

yearly.

2. Benefit

Packages-

daily.

2. Purchase

of

Maintenance

items –

equipment.

2. Inventory

assessment

and data for

purchasing

department.

2.

Inventory

assessment

2. Daily

production

sales.

2.

Assessment

of ways for

efficient

travel.

2.

Magazine

and News

Article

Stories.

2.

Yearly

Convent

ions for

new

innova-

tive

techni-

ques.


3. Reward

Compensa -

tion

Packages-

monthly

starting April

30, 2015.

3. Purchase

of additional

buildings for

continued

production

growth.

Every 6

months

starting in

April 2015

through

2020.

3. Division

offices data

reporting –

daily with

date starting

in April 30,

2015.

3.

Employee

cross

training-

weekly

starting in

April 2015,

monthly

2015,

yearly 2015

– 2020.

3. Daily

inventory

counts –

starting

April 30,

2015. Send

to the

Financial

and

Operations

office.

3.

Regulation

assessment

of transport

system-

licensing,

insurance,

weight

daily

starting

April 1,

2015 –

December

31, 2020.

3. Introduc-

tion in New

Markets-

monthly

starting

May, 2015,

and yearly

2015-

2020.

3.

Global

Technol

ogist,

science

innovati

on, and

physics

seminars

- weekly

starting

May,

2015,

monthly

2015 -

2020,

and

yearly

2015 –

2020

.

4. Retirement

and Social

4. Rentals for

space and

4. Machine

maintenance-

4. Line

evaluation

4. SEC

regulations

4.

Evaluation

4.

Documen-


Security

Issues- daily

starting April

30, 2015.

production

needs – 6

months to 12

month

assessment

which starts

in May,

2015.

daily starting

in April, 30,

2015, weekly

starting

April, 30,

2015,

monthly

starting April

30, 2015, and

yearly

starting

2015-2020.

and

controls –

starting

daily, April

30, 2015.

and audit

reports –

every 3

months

starting

April 1,

2015. The

quarterly

months will

follow like

banking

quarters. 1st

Quarter –

Jan., Feb.,

March, 2nd

Quarter –

April, May,

June, 3rd

Quarter –

July,

August,

September,

4th Quarter

of air, train,

highway,

and sea

costs for

transport –

Monthly

starting on

April 30,

2015.

tary clips

and photos-

monthly

starting

April 30,

2015, and

yearly

starting

April 30,

2015 –

December

31, 2020.


– Oct.,

Nov., Dec.,

Starts April

2015-

December

31, 2020.

5. Employee

education and

cross-training

monthly April

30, 2015 –

December 31,

2020, and

yearly 2015 –

2020.

5. Inventory

of licenses

for

equipment-

and space-

monthly

starting April

30, 2015 –

December

31, 2020, and

yearly 2015 -

2020.

5.

Assessment

of storage

devices and

safety issues-

(QI) (OSHA)

- daily

starting April

1, 2015

through

December

31, 2015 -

2020

5.

Assessment

of

expiration

dates for

materials-

daily

starting

April 1,

2015 –

December

31, 2020.

5. Monthly

finance

reports and

data audits

– monthly

starting

April 1,

2015 –

through

December

31, 2020.

5.

Monitoring

of daily

travel

logistical

issues –

starting

April 1,

2015 –

through

December

31, 2020.

5. Consul-

tation for

additional

means of

Marketing

Product-

daily

starting

April 1,

2015 –

through

December

31, 2020.


6. Insurance

and safety

(OSHA) –

daily starting

April 1, 2015

– December

31, 2020.

6. Regulation

fees for

storage

facilities

monthly

starting April

1, 2015

through

December

31, 2020.

6.

Evaluation

of

marketing

response –

monthly

using

current

customers

starting

April 1,

2015

through

December

31, 2020.

The strategy map table above is used to direct the organization throughout the

organization to reach the goals individualized for the different departments (Kaplan and Norton,

1996). Timeframes for evaluation and completion of the goals are following the different goals

and the due date of implementation is found in the Executive Summary. Having a strategy map

using short-term objectives, functional tactics, policies that empower, and rewards that align the

manager and employee priorities with organizational objectives and shareholder value provide

very effective direction in strategy implementation (Pearce & Robinson, 2013).


The action bullets are many for a big organization such as Chicago Bridge and Iron. The

dates are listed in the tables as was requested at our last meeting. I hope that this will guide the

board and the venture capitalist in making a final decision. Next, we will discuss the control and

contingency plans.

Control Plan For Chicago Bridge and Iron

Strategic control is described as “concerned with tracking a strategy as it is being

implemented, detecting problems or changes in its underlying premises, and making necessary

adjustments” (Pearce & Robinson, 2013). Chicago Bridge and Iron uses mostly implementation

control using key strategic thrusts and milestones for the different projects globally with the

storage devices made specifically for water, petroleum, natural gas, and other energy items.

Other control measures that CB& I uses is a mixture of the other three different types which

include premise control, strategic surveillance at a low scale, and special alert controls due to

energy regulations on the global scale at locations where the storage devices are used (Pearce &

Robinson, 2013). CB& I bases their strategic controls on major and minor environmental and

industry variables that are affected by the global market for energy and the storage of the

petroleum, natural gas, and water (Pearce & Robinson, 2013).

Along with the implementation control measure, Chicago Bridge and Iron also uses the

balanced scorecard for measurement of: 1) learning and growth, 2) business process, 3) customer

perspective, and 4) financial perspective with resource movement if needed (Pearce & Robinson,

2013). Using this scorecard approach enables the strategy of CB& I to be linked with the

shareholder value while providing several outcomes that are measurable that guides and monitors

strategy implementation with the strategic thrusts that occur with the global energy market for


storage devices (Pearce & Robinson, 2013). All of the above mentioned are measurable and

results are reported monthly to the corporate and division Chicago Bridge and Iron offices.

Functional Tactics

In the implementation process, functional tactics that are used daily at Chicago Bridge &

Iron with the implementation of the short and long term objectives is one of specificity due to the

different cultures the projects are designed in, the logistics of moving and transporting the

finished product, and the function of the finished product. Specificity is used by CB& I due to

the clear time frame for development and assembly of the products that are bought globally for

the energy infrastructure of cities and countries, and the identification of who is responsible in

the region for who is building, transporting, and final assembly in the receiving site for these

structures (Pearce & Robinson, 2013, pages 288-289).

Resource Allocation

Resources are allocated to Chicago Bridge and Iron per job project MCR (Master Control

Resource) sheet. Regional offices are alerted to what resources such as equipment, licensure,

manpower, and supplies are needed daily. When logistical shipment and transport are not

available there is a delay in project completion which is electronically communicated to the

different division project work site and administration.

Required Organizational Change Management Strategies for Implementation

Managers show a commitment to innovation and change by embracing three interrelated

activities: 1) clarifying strategic intent, 2) building an organization, and 3) shaping organizational

structure so that culture will be exemplified through each employee working at CB& I and will

be evident in the work completion competitively while discussed at the tables globally and

domestically (Pearce & Robinson, 2013).


Chicago Bridge & Iron uses strategic intent which is a clear statement of where they want

to lead the company and what results they expect to achieve with printing and sending to

shareholders the annual report (Pearce & Robinson, 2013). This is also communicated internally

to employees through a monthly newsletter Email which shows which direction the company

would like to go, and how this relates to yearly work performance evaluations and compensation

with wage increase or bonuses (Pearce & Robinson, 2013).

CB& I implements building an organization into their everyday activities functionally by

building the organization and ensuring a common understanding about organizational priorities

in the monthly newsletters, clarification of responsibility among managers and organizational

divisional areas, education of leadership development as part of the weekly initiatives and

education on safety along with wage increase, opening authority to lower managers at CB& I,

and communicating the changes inside and outside the organization with its regional and global

customers – mostly individual countries due to the energy infrastructure business (Pearce &

Robinson, 2013). Advisory groups and research and development teams are assigned to daily

and weekly look at the existing products and projects and to creatively innovate and develop new

ways of sustaining better and bigger projects. Principles are used according to culture and

project for safety, integrity, and ethical factors environmentally and socially (Pearce &

Robinson, 2013).

Chicago Bridge and Iron shapes organizational culture by creating a passion with

employees domestically and globally (contracted workers) for the values that CB& I holds in

each and every energy project that it develops, initiates, and completes. It also looks, recruits,

develops, and retains talented operational leadership project teams. Pearce & Robinson, 2013,

states, “leaders look to managers they need to execute strategy as another source of leadership to


accept risk and cope with the complexity that change brings about” (p. 364). The culture of

Chicago Bridge and Iron means that each employee’s beliefs and values influence the opinions

and actions internally in the firm, and is shown externally in the cities and countries where the

project is built (Pearce & Robinson, 2013).

Budget, Forecasted Financials, and Break-Even Analysis

Using assumed assets, sales, and costs for implementation of the conglomerate

diversification strategy identified last week is a budget set for one petroleum storage tank project

at $8.4 billion dollars which holds 700,000 gallons of off-shore petroleum. The current market

share is $43.13 per share. Conglomerate diversification raises the market share per share to

$52.16 which is a 9.03% increase with 100 shares. In evaluation of the Price-earnings share ratio

the formula would be $52.16/$3.20 earnings per share (Parrino,2012). Projected financials for 5

years would be 3% for the first 2 years, then years 3 and 4 – 2.8%, and with the final 5 year

financials being at 2.2%. The simple calculation of sale of the infrastructure project assumed sale

price is $10.6 billion dollars with a liabilities cost of $8.4 billion to build as mentioned above.

The gross profit margin is calculated using the formula: sales minus cost of goods sold divided

by the sales, which is 0.21 or 21%. This amount over the next 3-5 years will continue to be

analyzed for continued growth advantages. The return on assets (ROI) for this one project is

calculated by taking the net earnings divided by total assets, which is $ 10.6/$47.8 billion dollars

(Parrino, 2012). This amount is 22.17%. This might look good for a temporary fix, but continued

analysis will need to be completed (Pearce & Robinson, 2013). A break even analysis was not

done due to individual pricing for each project that is done in different countries, cities, etc.

Key Risks with Contingency Plan


In the changing environment of working with energy infrastructure such as Chicago

Bridge and Iron key risks are monitored. When faced with concentrated growth due to the

storage containers for energy, two of the risks is economic and lack of resources to complete the

project.

Contingency plans are based on environmental, culture, and psychological behaviors that

are seen in the different areas of the world. There is always a delay with each product and

storage device, and when these contingency plans are initiated due to factors that are seen and

unseen, the customer, supplier, and project team is notified electronically so other options can be

reviewed and acted upon (Pearce & Robinson, 2013). The contingency plans are implemented

with local contractors and environmental safety officers that are appointed in the local culture

domestically and internationally. There is a contingency office director that is assigned at

Corporate Headquarters at The Hague, Netherlands.

The risk management plan would be technological advances throughout the project sites,

and another would be communication with logistical and transport personnel when weather

delays delivery of the needed supplies, and final completed project. Risk management would be

evaluated for need for shorter time span for regulation paperwork controls, and building

approvals at the global and domestic sites.

In conclusion, there are many factors that can affect, change, or move the implementation

plan and strategic plan for the organization. Following the strategy map, and looking at the

control measures with the functional tactics can lead to a more efficient way of teaching and

making the strategic implementation part of the everyday environment at the organization.

Chicago Bridge and Iron uses a 5 minute message at the start of each work day to inform

employees how that plan is going to go for the day, and how that will affect the final project


regionally, division, and corporate wide (cbi.com, 2015). Having a contingency plan is

important for delay of supplies, service, and employees to complete the tasks assigned and the

timeframes given for completion of each project.

A leader manager is one that can show and teach, and react to change and use that to

instruct the culture of implementation strategic management to make it understandable for a

project well done and the implementation of the new strategic planning initiative of

conglomerate diversification.

References

Form Swift Builder. (2014). Retrieved from http://formswift.com/builder.php?member=1

&documentType=executive-summary-template&ses=8e5c518e04c0a4ee

Kaplan, R.S., & Norton, D.P., (1996) The Balanced Scorecard: Translating Strategy into

Action (1st ed). Presidents and Fellows of Harvard College, US.

King, B. (2015). “A Pipe Dream Come True: Spectra Energy Corp.” Retrieved from

http://dailyreckoning.com/free-reports/investing-in-energy-infrastructure/

Master Production Schedule. (2015). Retrieved from http://(https://www.google.com/search?

Q=msp+schedule&sourceid=ie7&rls=com.microsoft:en-US:IE-SearchBox&ie=&oe=&gws_

Rd=ssl#rls=com.microsoft:en-US:IE-SearchBox&q=master+schedule+plan

NiSource. (2015). Creating Two Infrastructure Companies. Retrieved from https://www.nisource


.com/about-us/creating-two-energy-infrastructure-companies

Parrino, R., Kidwell, D.S., & Bates, T.W. (2012) Fundamentals of Corporate Finance

(2nd ed). Hoboken, NJ: John Wiley & Sons.

Pearce, J.A., & Robinson, R.B. (2013) Strategic Management: Planning for Domestic and

Global Competition (13th ed). New York, NY: McGraw-Hill.

Scott, M. (2012). Chicago Bridge & Iron to Buy Shaw Group for $3 Billion. Retrieved from

http://dealbook.nytimes.com/2012/07/30/Chicago-bridge-iron-to-buy-shaw-group-for-3-

billion/?ref=topics&_r=0

Queensland Government. (2015). Trend Analysis for Business Improvement. Retrieved from

https://www.business.qld.gov.au/business/business-improvemtn/trend-analysis-business-

improvement

Form Swift Builder. (2014). Retrieved from http://formswift.com/builder.php?member=1

&documentType=executive-summary-template&ses=8e5c518e04c0a4ee

str 581 week 6 individual strategic plan and presentation

Documents