SWOT Analysis for CH2M Hill Strengths Essay
SWOT Analysis for CH2M Hill Strengths
CH2M Hill has many strengths within the company; some of which will be identified in this section. CH2M Hill is a well established brand name with lots of successful Government projects and private projects including the Program Management of the Olympic venues for the 2012 London Olympics.
The company has a well defined code of ethics, outlined in “Jim’s Little Yellow Book”, that each employee should follow and an anonymous hotline, The Guideline, to notify the company of observed ethics violations. CH2M Hill is employee owned through an internal common stock market, giving the employees buy-in into policies and procedures (BUS100mottariano, n.d.).
The company has a diversified revenue stream utilizing various areas of expertise in several engineering aspects. CH2M Hill offers full-service capabilities in various business components, among three key operating divisions, Water, Energy & Facilities; Government, Environment & Infrastructure; and International. Business groups served include: Water; Transportation; Operations and Maintenance; Government Facilities and Infrastructure; Nuclear; Environmental; Energy and Chemicals; Power; and Industrial and Advanced Technology. CH2M Hill developed, upholds and brings out its own process for organization projects for clients, called the CH2M HILL Project Delivery System.
This system is such a comprehensive proven system that other firms have engaged CH2M Hill for training and a book has been publish by the firm on the process (Free SWOT Analysis, 2013). Weaknesses
Along with its strengths, CH2M Hill also has weaknesses that it needs to overcome to maintain its level of success. The company is rather large and occupies many offices around the world making it difficult to enforce the code of ethics it is so known for in the industries it serves. CH2M Hill has difficulty ensuring compliance to regulations while performing work in so many different states and countries, opening it up to fines and lawsuits. The firm has acquired and merged with other companies to increase its diversity and market position but in turn has had troubles ensuring that these new acquisitions conform to regular practices (BUS100mottariano, n.d.).
With the joint ventures CH2M Hill has entered into has come the inability to determine the exact effectiveness of that division where failure will lead to recognized losses. The firm’s high tech nature and complete reliance on computers and systems makes it vulnerable to financial losses and reputation loss if any of their networks or systems were to fail. CH2M Hill has an employment disadvantage as its existing work force continues to get older every year due to a declining incoming work force and its inability to attract or hire younger professional personnel (Wikidot, n.d.). Opportunities
The external market and business factors have created opportunities for CH2M Hill. As other countries develop their sustainable energy futures, there is great opportunity to work in these countries in energy development, one of the main business groups of CH2M Hill. During the course of projects CH2M Hill employees work alongside many subcontractors who could be acquired in the future so that the firm could offer whole project delivery. CH2M Hill‘s management is heavily involved in corporate responsibility activities that can increase the public view of the company (BUS100mottariano, n.d.).
The cost leadership that CH2M Hill enjoys as its market strategy has positioned it in the market, enabling it to become the most documented name in the business. This provides an opening for attracting new clients to its web of customers (Free SWOT Analysis, 2013). As developing countries or developed countries look to upgrade their deteriorating infrastructures, CH2M Hill who is known for resource and infrastructure management will have a greater potential client pool. CH2M Hill who has succeeded in form their own 100% secured cloud could offer rentable cloud computing networks for small companies.
C2HM Hill has vast experience in the asset management business and could offer this skill to others in North America. Although CH2M Hill has much experience in water management, they tend to work in smaller markets with the global water shortage the larger markets, such as China, are becoming more attractive. CH2M Hill could utilize its vast experience and expertise in renewable energy to gain new projects as the global market demand for cleaner energy resources increases. In addition to operational and maintenance aid in this increasing energy segment CH2M Hill could offer facilities management consultation to these plants (Wikidot, n.d.). Threats
Threats to CH2M Hill will come from many different sources; we will discuss
some of them below. A declining global economy with less money to invest in infrastructure and private projects will affect the amount of jobs to bid on. Even when there are jobs to bid competitors responding to requests for quotes and proposals can under bid and win projects over CH2M Hill (BUS100mottariano, n.d.). When jobs are won the unpredictable economic cycles could result in the failure of clients to pay their fees to CH2M Hill.
To win certain jobs CH2M Hill must rely on subcontractors and suppliers opening them up to any issues that company may have. Unstable economic and industry pricing could lead to losses especially in fixed price contracts. Tightening of and ever changing environmental regulations can make it hard for CH2M Hill to keep up with the changes (BUS100mottariano, n.d.). With CH2M Hills many government projects changes in and functions of government spending priorities can affecting future revenues and even contract risk of termination.
Being a part of the consumer industry and dealing with the consumption of fast moving consumer goods, CH2M Hill is highly affected by market trends worldwide. CH2M Hill suffers from the same employment that all North American companies face with the shrinking of the qualified labor force. International business and market risks relating to security corruption, weather and governmental policies threaten projects that CH2M Hill tries to win (Wikidot, n.d.).
BUS100mottariano. (n.d.). SWOT analysis. Retrieved from
https://sites.google.com/a/email.vccs.edu/bus100mottariano/home/swot-analysis Free SWOT Analysis. (2013). SWOT Analysis on CH2M Hill. Retrieved from http://www.freeswotanalysis.com/construction/596-swot-analysis-on-ch2m-hill.html Wikidot. (n.d.). CH2MHill Business Model. Retrieved from
Wikidot. (n.d.). CIV1299 intermin report. Retrieved from http://interimreport.wikidot.com/#toc4