Burmeister & Wain Scandinavian Contractor (BWSC) is an international entrepreneur within engineering, procurement, and construction of turnkey power plants worldwide. BWSC has had a high increase in sales in the period from 2013 to 2016 but have not had the needed organisational setup to be able to establish project management groups and perform all the necessary tasks needed to build the awarded turnkey power plants within the contractual schedules. Ultimately this has led to the company being unable to stay within the sales budget, primarily due to the budgeted hours spent on projects being surpassed. Having to expand and establish multiple project management groups due to the high increase in sales, BWSC had to allocate needed resources from other divisions within the firm to perform operational tasks, hereby removing said resources from their strategic business area, from which they were originally hired to perform. Being unable to perform on the power plant projects has resulted in negative turnover for several years, 2020 being the highest negative turnover for the company with DKKm -229 as their yearly result. This has obviously impaired BWSC’s competitiveness and stained their reputation. Following the unsuccessful projects, the sales management team had to increase their tender price to prevent more unsuccessful projects, resulting in fewer sales in recent years in a highly competitive marked within the area of turnkey power plants. This thesis analyses the possibility of removing the newly allocated operational workload from key employees within the project management groups, to free their time to work with their core competencies on strategic business areas from which BWSC’s sales management can benefit. For this to be successful, the workload must be removed from said key employees and the tasks needs to be allocated elsewhere, which is why this thesis analyses the possibility of the tasks being outsourced to BWSC’s sibling company DASH, who is a service provider located in the Philippines. For BWSC to outsource operational project procurement tasks, there are undoubtably many challenges, which is why the following is analysed in the thesis: cultural differences, appropriate guidelines, and general communication. The outcome of the implementation of the international cooperation with DASH will create a benefit for the projects from an organisational and economical perspective, but only if the analysed challenges and risks are prevented before the establishment of the international cooperation – therefore an implementation strategy has been developed to successfully integrate DASH into BWSC’s organisation. Once implemented successfully, the outcome of the cooperation will be improved international competitiveness on the market for turnkey power plants and an optimised project organisation within BWSC to execute accordingly.
|Educations||Graduate Diploma in International Business, (Diploma Programme) Final Thesis|
|Number of pages||99|