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A STUDY OF DIVERSIFICATION STRATEGIES IN THE

CONSTRUCTION INDUSTRY: THE CASE OF LIVING ROCK
coNsTRucrIoN, rNc.

Disseftation Paper submitted to the Faculty, Graduate School

Angeles University Foundation

in paftial fulflllment for the degree of

Doctor of Business Administration

Elinor PonioffiG
November 2008
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ABSTRACT

Name of Researcher : Elinor B. Ponio Torres

Specialization : Doctor of Business Administration

Title of Disseftation : A Study of Diversification Strategies in

The Construction Industry: The Case

Of Living Rock Construction, Inc.

This research was undertaken to explore the stimuli that motivated

Living Rock Construction, Inc. and other business flrms in general and

consequently evaluate whether such decision to diversify contribute to

better performance and/or growth of the firm taking into account the

following: a) global.factors affecting strategic decisions; b) information

technology as a vital strategic management tool; c) organizations'

obligation to build and sustain a competitive advantage to sulvive and

prosper in this new era; d) long-held competitive advantages having been

eroded and new ones formed; e) strategy formulation, implementation and

evaluation as well as decisions which are commonly made by a group of

individuals rather than by a single person; and f) identifying, monitoring

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and evaluating external opportunities and threats as essential for success

in implementing the diversification strategy in a firm.

This study on diversification has been concentrated on a specific

construction firm - LIVING ROCK CONSTRUCTION, INC. (LRCI) although

other relevant information covers that of the total construction industry as

a whole nationwide.

The researcher has focused on the evolution of the corporation, from

its inception in 1992 until what it is today - a diversified firm. Suruey

questionnaires were used to determine the perception of the organization's

human resource on its decision to diversiff - from shareholders,

managers/superuisors, rand and file employees and most importantly, its

clientS, from the main business which is general engineering construction

to the diversified projects - the subdivision development and the building

for lease. Quantitative analyses of data obtained from these

questionnaires proved that the decision of the firm's shareholders to

diversify was welcomed by a majority of the organization's human

resourie as well as its major clientele.

Documentary analysis was done on the financial portfolio of LRCI

which was made as the basis for validating LRCI's performance before and

after the diversification move

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The presentation of the infrastructure thrusts and policies by the

different administrators (presidents) strengthens the fact that construction

firms have a lot of opportunities to tap in the government sector.

However, certain regulations need some revisions to allow more of these

firms to take part in the numerous government infrastructure activities.

Fufthermore, this study opens the possibility of studying/tapping the

oppoftunity of opening global markets. LRCI may also be able to consider

offering its products and seruices to other countries while maintaining its

commitment to satisff its customers by delivering its products and

seruices with the best quality within reasonable cost and within reasonable

time.

Therefore, fufther studies are needed to explore more opportunities

and to be able to lessen the vacuum of challenges opened to construction

firms and other buslness firms, in generat, to be able to sustain their

existence in this era of modern technology resulting to complexity of needs

of the consuming public.