8 NORTHWEST CONSTRUCTORS INC.
EXTERNAL ANALYSIS STRENGTHS The risk management approach by Northwest Constructors Inc. has proven to be successful. In the current year they have increased their "Cost Plus-Guaranteed Maximum" contract types up to 45%, up from only 26% three years prior. The profits of the company during that time have increased by 42% with a dollar amount of $5,276,000 earned. Earnings
Contract Types
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000
Fixed Price 23% Cost Plus Fee- Guarnteed Maximum 45% Cost Plus Fee 32%
0 Year 2020
Year-1
Year-2
The extensive lists of major clients and networking capabilities to be short listed for jobs is impressive. The company provides a wide range of services, project types and scales. There is a huge advantage of tenure of working in the Puget Sound Region for notable businesses mentioned. WEAKNESSES The company sees its highest revenue in the second and fourth quarters each year, determining there are issues such as clients need to complete work by spring or fall and weather factors. It is not understood as to why the company has a diverse project type portfolio and list of clients for this to be an issue. There is a great weakness in broken cash flows twice a year. In addition, the backlog has decreased from $211 million Year-2 to $142 million in 2020. The company's current organizational structure does not indicate team members who are dedicated to serving the greater pacific northwest projects. The project and client focus for the Alaska, Oregon, Montana, Idaho and California regions should be a specialized sector, capable of growing the company outside of western Washington, providing stability.
2021 STRATEGIC PLANNING
