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Manager’s strategy of negotiation with an investor
Written by Ing.Juraj Nagy   
Thumbnail image „The market has changed radically over past 10 – 15 years. The former investors have disappeared, namely the state-owned enterprises and national budged backed organisations, and new impetuous investors have succeeded.“  

 

 

Realty market overview

The market volume is given by industrial and socio-cultural centres of the republic. Investments take place in well-tried areas with built up infrastructure. The market has changed radically over past 10 – 15 years. The former investors have disappeared (namely the state-owned enterprises and national budged backed organisations), and new impetuous investors have succeeded.

Possible market is the whole territory of the republic, as well as the entire mid-European region. Dominant market segments are the great industrial zones, international gas conduits and pipelines. Transnational trade corporations and their subcontractors. This distinction should be based on reliability and financial discipline. (Goodwill, Case flow).

There is no market rating established in Slovakia, the deals made are mainly individual business transactions without a serious evaluation of investor’s behaviour. Development trends abroad depend on the position of Slovakia in the region. This position of Slovakia is currently being made out; hence there is no possibility of actual forecasting of development trends.

 

Customers of civil engineering:

The most important customers are: the government, banks, substantial private investors.

A civil engineering company that achieved a good repute among the customers together with a highly favourable product ranking, e.g. certified by honourable mentions such as “building of the year” can consecutively cover customer demand and meet their requirements.

Consumers mainly demand quality for a reasonable price and the guarantee of an accomplished work, which can only be provided by an upstanding company.

 

Marketing objectives and goals

Marketing strategy is rendered to the public; company should inform about its products, services and intentions in mainstream daily journals, specialized vocational magazines and give informational seminaries for employees.

The main point of the marketing mix is, on behalf of who as well as what to produce. This implies an informational strategy for addressing as many potential customers as possible on the whole market.

It is necessary to emphasize the need for quality, that means enhanced control and sequential advertising of own products.

Manager of a civil engineering company as a participant of the marketing process has to be a comprehensive specialist skilled in implementation with high moral qualities and a charismatic personality. They have to be mandatorily dressed in a formal dress the company shall supply.

Each success-willing enterprise has to pay maximum attention to educating its managers. Training and internships have to be a requisite condition for promotion, pay rise etc. Unity with the corporate identity, appreciation of the best employees preferably in a non-material form of foreign stages and conferences should be unquestionable in every company. Of course, for satisfying the basic needs, in order not to overload the employee, they must be given adequate salary.

Analyzing the situation of a civil engineering company manager on the contemporary Slovak market reveals a burden of recession in civil engineering, ongoing changes in enterpreneuring terms and nonexistence of the proper market environment.

The prime priority is demarcation of markets for further operations. This activity has certain sets of questions demanding answers:

  • what civil engineering segment is not market covered;
  • what civil engineering segment is the most easy competitive;

 

Profitability analysis

Product profitability is defined by the pricing strategy always specified for the current market and the particular customer.

Meanwhile, regional development trends have to be observed to secure the long-term profitability as well.

Nowadays only companies with a high added value accompanied with the high productivity of labour survive.

 

Prices

Price making underlies the purpose to get the job offer and create a sizeable profit. Prices are derived from the cost price calculations. These are, however, confronted with the pressure of competition.

Individual price calculation involves various possible influences the estimating clerk can identify. Total price finalization is influenced with negotiation agreements and supplementary trade terms. These influences are implementable with a supplementary charge or a discount; or the modification of the net price.

Understanding of price, value, pricing strategy and value strategy is an actual understanding of ‘the ivisible hand of the market’ securing order in the economic system.

When negotiating, manager presents the value of offered products to the client, which turns to be very complicated or even next to impossible on the present. Sometimes the customer’s concept is far beyond the real possibilities of the building company.

  • Top management takes part in price business negotiation and possesses information on how prices effect the production.
  • Monitoring and interpretation of pricing in civil engineering praxis; comparison to the subsistent legal order.
  • Analysis of importance of the company’s pricing strategy on the domestic market as well as in the international scope of the integrated market of Europe.
 
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