The strategies implemented by major South African construction companies before and after the 2010 FIFA World Cup /
Date
2015-05-29
Authors
Panayi, Sergio
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Abstract
When countries get awarded to host a major sporting event such as the FIFA World Cup, construction companies play an important role, as they help develop the infrastructure required. Due to the environmental change in the South Africa at the time of the 2010 FIFA World Cup, construction companies needed to adapt their strategies in order to accommodate for unexpected changes in the needs of the country. Construction companies needed to acclimatise their strategies for the preparation of the World Cup and, once preparation was completed, needed to change them again. The effect of the World Cup for South Africa was different to past hosting countries as South Africa is a developing country compare to other first world countries, such as France or Germany, which required the country to invest in large amounts of infrastructure that previous World Cup hosts already had.
The study analyses and presents the core strategies implemented by major South African construction companies and will assess the changes before and after the 2010 FIFA World Cup.
The research was conducted using a qualitative methodology, based on six interviews with industry experts with data being assessed using thematic content analysis.
Construction companies changed their strategies in order to adapt to the change in environment. They used the basic components of business strategy namely, scope of business, competence and resources, competitive advantage, synergy and the external environment. The lessons learnt by these South African companies can be used to assist other developing economies in similar situations.
The key message taken from this study is that the planning and timelines put in place to meet the demands of construction can either make or break such a large project. In South Africa, shortfalls in expertise and management, sharp increases in demand, and poor time management resulted in substantial additional costs being incurred by the state as well as the companies. The study addresses these issues, detailing which methods worked well and which methods failed, which companies succeeded and capitalised from the opportunities presented by the world cup, and which companies could not handle the increased pressure.
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Construction industry -- South Africa -- Management.Soccer -- Economic aspects ;Strategic planning -- South Africa.