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Title: AECOM’s case study report

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AECOM’s case study report

Executive summary

The study is concerned with the review of an engineering company in Australia. In this case, the

focus will be on AECOM Australia, a multinational organization that deals that has a network of

experts in various engineering disciplines that help in dealing with various day-to-day challenges.

The services that the company deals in include palming of new cities, the building of structures

such as roads, bridges, railways, airports, skyscrapers, etc. Aecom Australia is an extension of the

AECOM Corporation based in the US. It is also present in more than 56 countries around the

world. The company has been successful over the years and it has been featured in the fortune 500

companies in the United States. To better understand the success behind the company, this report

will focus on addressing on issues of a survey on management, its strengths and weaknesses, cross-

cultural awareness best practices and also solutions to the challenges encountered in gathering

information.
AECOM’s case study report

Introduction

Industrialization is taking a new shape in the engineering discipline in most countries.

There has been increased innovation especially through the application of information technology

knowledge. Due to this, therefore, the level of competition especially for the firms that are in the

same engineering industries have become so aggressive in their operations in that they ensure best

of the services and high evil innovations in order to gain competitive advantage and market share.

To ensure success for this, the organizations start the journey of success from within, where they

set up traditions and a culture that would help them gain the best in their operations. One of the

best practices they do to ensure they have a top-notch status in terms of service delivery includes

training their employees by strengthening their skills and development so that they can easily adapt

to the changes in technological operations. They have also mastered the art of technology and

innovation, whereby engineering of today is not similar as compared to some decades below. In

this case, organizations focus more on quality output rather than quantity of output. They,

therefore, have to invest more in technology to enhance high-quality product and services to the

customers.

When the firs have succeeded internally, they plan on how to expand their operations

outside the local market by expanding other countries. This is known as the internationalization

strategy. An organization that is able to successfully expand to other countries has a greater

advantage of gaining more customers and hence increasing its revenue and profitability. In this

study, the focus will be on AECOM Australia. The study will examine the features of the company,

including analyzing the survey on its performance issues, cross-cultural policies that enable it to

fit into diverse cultural lines, the Strengths and weaknesses, and the best practices in the industry.
AECOM’s case study report

The study will also highlight the problems experienced in conducting the research, and the

recommendations and lessons learned from reviewing the firm.

Company background.

AECOM Australia is a multinational engineering company that specializes in the provision

of specialized innovation solutions that helps in solving problems experienced in our day-to-day

operations. The company, AECOM was started in 1990, in Los Angeles, in the United States of

America. The company has grown tremendously to become of the best engineering companies in

the world. It has become relevant in this industry and has gained recognition in every country that

it operates in. O Australia, the company is one of the most respected and trusted for offering high-

quality services that include planning, designing and building of cities, brines, railways, ports, and

roads. Specifically, the company provides engineering, environmental consultancy, transport, and

building services. It carries out sophisticated projects that require site investigation, high-level

planning, designing, and construction services according to customer specifications

(aecom.com/au, 2017). The company has grown tremendously and has become a market leader I

engineering industry. It has over 100,000 employees worldwide where it has succeeded in areas

such as innovation, environmental conservation, and building different structures with excellence

and high-level knowledge. It has also featured in the Fortune 500 companies and it is worth over

$10 billion. The company is continuing to grow, courtesy of good management and the leadership

structure. The following is the organization structure of AECOM Australia.

AECOM’s case study report

Figure 1: Organizational Structure of AECOM Australia

Understanding sustainability and internationalization of AECOM

Sustainability in organizations refers to the means of survival, depending on how they

manage their resources such as finances or profits, social and environmental risks, and other

opportunities. Sustainability requires businesses to remain resilient and be able to survive shocks

when there are confidence in good environmental, economic and social conditions. The

sustainability of the business must follow the principles of sustainable development, where it

carries out development activities with the thought of sustainable future generations (McGillick,

2018). In the case of industrial sustainability organizations such as AECOM need to ensure its

sustainable development addresses. They, therefore, have to take into consideration issues such as
AECOM’s case study report

economic efficiency, social equity such as working with communities, ensuring their wellness and

also help eradication of poverty. The sustainability must also address the issues of environmental

accountability by being protecting biodiversity, and having the knowledge of climate change in

mind.

Sustainability requires some best practices that include having well-structured

environmental management systems that assist in enhancing efficiency and incorporating this in

the organizational culture am this can help mitigate risks in the future. Industrial sustainability on

environmental management requires organizations to comply with the ISO 14001 certification.

There also needs to be stakeholder engagement in the organization. Stakeholders I this case refers

to the members of the surrounding communities, customers, and employees. Stakeholder

engagement ensures the organizations and the parties are able to handle opposition, and also

involving them in decision making. In the case of AECOM, sustainability keeps the organization

going (Hanly, 2015). The main aim of sustainability is to have societies that not only takes into

consideration of the development of social infrastructure and environmental aspects in order to

steer economic development but also ensures there is better and improved service delivery.

Meeting the requirements of the clients is a major contributor of sustainability for AECOM. The

Company has been actively engaging in operations such as water conservation, promotion of green

and renewable energy and reduction of greenhouse emissions. This greatly accelerates growth,

innovation, and resiliency and in the long run, they are able to get more projects from customers

and hence have a promising return on investment (Marshall, 2018).

Due to these achievements, AECOM has received several sustainability awards from

famous organizations that include the Climate Change Business Journal and the Environmental

Business Journal that are major players in the environmental industry and in the business
AECOM’s case study report

environment. The company also bagged a major award, i.e., the 2017 Business Green Leader

Award, for being actively involved in the optimization of resources use and delivering high-quality

models (aecom.com/au, 2017).

Other than focusing on environmental sustainability as a major contributing factor of

sustainability, AECOM encourages career development. This is a very important sustainability

issue as it is concerned with bringing out the best from all its stakeholders and in everything that

they do in a professional manner. Employees are encouraged to grow professionally and are

supported in every way possible a helps in improving the culture of the organization through the

protection of core values. AECOM employees are also included in the global wellness program to

ensure they feel comfortable and experience a sense of belonging in their operations.

Also, corporate responsibility is a major contributor for AECOM where is actively involves

in projects that help the community such as volunteering in helping communities, raising funds for

the needy, developing infrastructures and providing training for theft generation of leaders in the

industrial development.

Internationalization for AECOM

Internationalization, on the other hand, involves a process in which organizations develop

strategies of transacting in different countries. In such cases, most private organizations tend to

expand their operations across countries in order to increase their profit margins as their products

and services are able to reach to more customers in the market. AECOM is greatly involved in

global operations whereby it has spread its services to over 150 countries. It has partnered with

investors who help in creating connections in different countries and partner in investment and

development. Investors are getting new opportunities when they partner with AECOM where they
AECOM’s case study report

engage in developing high-quality infrastructural development such as building new cities. The

planning services for international development involve conducting a detailed feasibility of local

markets in foreign countries and then design operations that need to be accomplished after

fulfilling government regulation in these countries. After this is done, decision-making processes

are doe by a member at home and in overseas offices to ensure quality products and services are

achieved. For instance, the organization was started in the USA but it has spread to other countries

including Australia and become the main competitor o the new markets. With good leadership and

encouraging innovation and technology in its operations, AECOM is projected to win even more

markets and hence continuing to be in the leaderboard of the best engineering organizations in the

world. The company has developed a long-term growth plan that is aimed at expanding to greater

heights and making contracts with other multinational investors. This is how he creates more

connections new opportunities in various countries. In this way, the organization is able to connect

global expertise with the local lines and hence bringing together resources that produce high-

quality value and output. Also, through the support of the parent company, from the US, AECOM

Australia becomes highly resilient and in coping with the challenges of new markets as it already

has a strong brand name.

Survey results

This section is concerned with how AECOM has operates internally as guided by the 14

management principles. An organization such as AECOM requires good management strategies

in order to operate I the diverse environments. The modern culture in the workplace is greatly

guided by these principles, where there is assurance of success on productivity, efficiency, and

overall employee satisfaction. Although the organization may not lack some problems following

the 14 management principle can greatly reduce management issues.

AECOM’s case study report

In this case, the survey on AECOM starts from the management performance. Good

leadership in the organization has brought about great benefits in addressing the current issues and

the status of the company to succeed in various economies of the world. The leadership of AECOM

is one of a kind to be emulated by other organizations. The company, being in the leaderboard of

the top engineering organizations is led by highly qualified personnel. They ensure integration of

the best practices that are favorable to all workers who from various diversities. The leaders have

high-level expertise that helps in creating connections with experts from other parts of the world

who ensure the future challenges are tackled appropriately. They also play an important role in

enhancing innovation by helping the employees transform their ideas into reality (Dionisio, 2018).

This is enhanced by enabling customer growth and development by financing every idea that they

come up with and putting in practice. The management also encourages learning from others

through collaboration, exchanging ideas, and performing research and development. This helps in

producing high quality and unique designs and implementation projects according to the clients’

needs.

The organizations hold its core values a lot a lot that ensures that it safeguards the

diversities and upholding ethical integrity with safety and security. The management also inspires

and develop people into following their dreams and helping them achieve their goals and this

ensures that the communities that it serves are assisted in terms of improved living standard. This

is motivation and it is reflected back to the organization through the overall performance of the

organization in the long run (Hanly, 2015) (Fern-fort-university, 2018). The other important core

value is that the management anticipates and understands the various challenges and complexities

that the clients and other stakeholders go through while trying to get the best out of their

investments. This makes the organization put more efforts and delivering nothing less than the best
AECOM’s case study report

of products and services. With this, there is assurance of delivery of operational excellence that

puts the dream of the organization to reality.

In terms of how the organization carries its operations, or the achievement of its daily

works, the Human resource management in help in ensuring that all the departments are able to

meet their operational output. AECOM has a diverse portfolio that includes the construction of

cities, transport means, power production, and water treatment methods. In this case, the diverse

operations may bring confusion at work, but this has ever happened in the organization. Everyone

knows what they are supposed to do, and each department has to ensure they produce the works

as assigned to them (Hanly, 2015).

AECOM also plays a major role in enhancing corporate social responsibility and it is a

responsibility that is in the mind of individuals as they carry on with their activities. Corporate

social responsibility is not an activity that is done on special occasions but it is part of the culture

and traditions of AECOM. With this in mind, the company plays an important role in creating a

future opportunity for future generation by reducing adverse pressures on the environment and

also helping communities on how to conserve the environment as they prepare for the future.

Through the corporate social responsibility initiative, the company focusses on delivering strong

and secure infrastructures and puts enough resources so as those who use them can enjoy their

livelihood and be proud of being members of AECOM. The company also prides of creating

opportunities by developing future leaders who embrace diversity and are able to move the

organization from one high level to another (Riesz & Tourneboeuf, 2012).
AECOM’s case study report

Analysis of the organization's cross-cultural awareness and impact on management

processes.

AECOM is a diverse organization. It has a tradition that encourages integrity ethical

integrity by enhancing teamwork in solving challenges. By believing in values held by different

cultures, the company benefits from brand strength as it is seen as a reflection of the cultural

diversity and hold each culture accountable to steer the development of the organization. The

cultural diversity is part of the core values that enhance the success of the organization. The most

important thing to consider about the embracing the cultural awareness policies for AECOM is

that it enhances innovation as people are from diverse backgrounds. In this way, it is possible to

understand the different needs of clients and be able to handle them according to different talents

from the diverse workforce (McGillick, 2018).

The cross-cultural awareness policy helps in understanding the communities in which the

organization works in and hence creating a long-lasting relationship that in turn lead to increased

innovation and growth. At AECOM cultural awareness I expressed in terms of diversity where the

management identifies and respects people in different cultures and going them equal

opportunities. The diversity respects age of all individuals working or pertaining to be a customer

and gives everyone an opportunity to enjoy partnering and transacting in the company. The

company also respects issues of gender expression, gender identity, marital status sexual

orientation and sex of all the members across the diverse culture where it has roots (Dionisio,

2018). This made AECOM be the best place to work for people with different sexual orientations

including the LGBT in 2018, where it was given the accolade by the Human Rights Campaign

Foundation. It was accorded 100% corporate equality index, which is rare to get for most

organizations. It was also voted to be the most outstanding company in gender diversity in 2016
AECOM’s case study report

by the Engineers Australia (A. E. C. O. M. 2009). The company also has put tremendous effort

into giving people of different national origin, where they can work in any country where it renders

its services. People with different faith in religion also can work freely with the freedom to practice

what they believe in with no intervention. The organization provides equal opportunities for work

for people with disabilities or any medical condition. There is no discrimination whatsoever that

they cannot deliver as long as they are of sound mind. This issues among others made AECOM to

be voted by Fortune Magazine to be the most admired company in the world. It has received more

over 50 accolades for being the best in most diversity issues that most organization as are not able

to meet (Dionisio, 2018).

By having an inclusive culture, the organization creates an active and dynamic culture by

creating an enabling environment for everyone and hence creating organizational performance,

where opportunities are created equally for all employees. Stakeholders are given an opportunity

to contribute their views and opinions and hence enabling them to operate at full potential and this

is an advantage not only for the organization but also for stakeholders. The objectives of employees

are taken seriously and the management ensures there is no biased is used in judging and making

decisions especially when awarding employees for merit and in promoting them for meeting the

objectives of the organization. The values of the organization are cultural-based and ensure that

all the stakeholders are protected and safeguarded from potential vices and ensure they are

strengthened even more and this creates a strong brand with a good reputation (Delivers, 2013).

The company reviews its code of conduct where new standards for ensuring good working

conditions in the industry were enforced to ensure safety over aspect including the assurance that

workers are treated with dignity, respect and also making sure that every activity is conducted with

ethical practices in mind to fit all the requirements in different cultures. This feeling of belonging
AECOM’s case study report

and association with the company made employees be 100 percent committed to work at their best

and uphold their standards in the code of conducting training.

The above descriptions are an indication of safety and fairness that are upheld me the

organization. Employees are also assured of a workplace that is free from harassment and this

ensures that a productive and conducive environment is accorded to all, where every employee is

treated with maximum level respect and without any sort of discrimination and this helps them

unleash their potential, where this is a major reason behind its success (Agrawal et al, 2012). The

management ensures that the company upholds the global employment law standards in every

place that the organization does its business. Managers may not track everything that is happening

to its employees but due to good morals and practices instilled in the employment law standards,

the output of work is always the best.

Strengths and weaknesses of AECOM

Strengths

Being one of the leading firm in the engineering discipline and I the world, AECOM enjoys

strengths that makes it stand out as compared to other firms in the industry. The strengths help the

firm enjoy a competitive advantage as the strategies that it follows are unmatchable to most of its

competitors. One of the strengths is that the firm has a very strong brand image and portfolio. It

has invested a lot in building the portfolio where it becomes easy for the firm to establish itself

easily in new and foreign markets and also when it has plans for expansion in providing new

products. The company enjoys excellent performance and growth, especially in the new markets.

It has built expertise in various areas and hence creating more revenue streams through

diversification in areas such as environmental management, water, green energy and building, and
AECOM’s case study report

construction. It ensures perfection in every area it invests in and hence more economic benefits.

This also increases cash flow that helps it in providing resources for expanding more in new

markets. The company also enjoys a strong distribution network for its products that enables easy

reach to its potential customers. The other important strength is that customers experience high-

level satisfaction from the services that they get. This builds increased trust as it continues creating

a relationship with them and providing them with what they need. This is a major contributor to

brand equity. The company also enjoys reliable suppliers who ensure that the production and

service delivery is not halted. In this way, the organization is able to meet the needs of customers

at any time (Fern-fort-university, 2018).

Weaknesses

AECOM, despite being successful in almost every field, it experiences some problems that

it needs to improve on. One of the weaknesses is that it experiences difficulties in integrating firms

that have different work culture. The partnership is essential for every organization that needs to

expand. However, when the work cultures and traditions do not match, it may become hard to

conform to the cultures of other organizations and hence becoming a weakness to AECOM. The

organization also has higher daily inventory as compared to most of its competitors. This is mostly

attributed to diversification and portfolio and failure to solve the issue at early stages can prove to

be a problem in the long run. The company is also associated with problems with financial planning

when especially through consideration of the current asset ratio and the liquid asset ratio this can

lower performance in the future. Despite having a strong brand image, the company does not get

it easy when it engages in businesses outside the core areas that it specializes. The present culture

cannot allow not to be flexible enough to move to other products. The ratio of net contribution to

that of profitability of AECOM is below average to of the industry (Fern-fort-university, 2018).

AECOM’s case study report

Industry best practices.

One of the best practices that AECOM is actively involved in is encouraging environmental

conservation and green buildings. This is important especially in this period of industrialization.

The company is concerned about the future and it ensures that it carries out projects that ensure

environmental conservation such as clean energy generation, water management and conservation,

and building of green cities and other infrastructure (Papargyropoulou, Harrison & Preece, 2012).

The corporate social responsibility of the company not only enhances its sustainability but also

plays an important role in elevating the standards of living of other people especially the

communities that are located in areas that it operates. The structures that the company builds are

not only helping creating reputation of the quality products it provides but ensures sustainability

of the future generations (Harris, 2007). Leadership at AECOM is something to be admired by

even other organizations. There is good coexistence between employees and management where

they support each. The company believes in the efforts of teamwork and hence employees are

encouraged for career developments through training and personal development. It is by this that

there is increased innovation within the company and harnessing this innovation for future

developments of goods and services ensure high-quality output. AECOM is very conscious of the

health of its employees whereby it takes into consideration the occupational health and safety for

them. Employees working at their best always ensures the success of the company and thus they

are assured of their wellness. When they are motivated and comfortable with their work, they tend

to be more aggressive and passionately live their work (Harris, 2007). This, in turn, improves the

profitability of the firm and ease in meeting goals and objectives in the long run.
AECOM’s case study report

Recommendations

The world is changing in terms of technology where it has enhanced innovations each day.

With this, therefore, AECOM has a good opportunity to leverage in technological advancement.

The company is known to produce some of the best technological innovations. However, it needs

to invest further in technology by embracing digital disruption. Digital disruption involves the use

of digital devices and knowledge in implementing some of the challenges that are encountered

during the planning and designing phases of engineering projects. With this, the company will be

able to improve the productivity of Australia’s construction sector and the world at large. The

company need also to invest in digital engineering that can be obtained from the use of open source

building software that enhances 3D engineering. This improved quality of work and also

enhancing the delivery of services by meeting the customer demands. The company also need to

invest in online tools such as the Geographic information systems GIS. These devices can greatly

reduce the cost of production and operations since it enhances survey of the site before engaging

in construction. This also helps in accelerating planning and development of projects and hence

enhancing proper planning and utilization of the available resources.

Challenges faced

One of the challenges experienced in conducting this research was in getting the relevant

data from the relevant sources. The study relied on secondary sources of information which was

not enough to write a reliable report. There was also a challenge of getting up to date information

from the various sites that the data was sought. This led to issues in capturing the right information
AECOM’s case study report

as some of the sources had to contradict information. Thus, this led to more tike taken in compiling

relevant information by comparing with what has been posted by AECOM’S own publications.

Lessons learned

I learned that AECOM is one of the most successful companies that has leveraged use of

technology in making state-of-the-art engineering work that has enabled it to gain a competitive

advantage. This has also been contributed by devotion and competency of management who

encourages and the employees and supporting them to embrace ovation.

The other lesson learned is that for organizations to succeed now and the future, they must

focus on the corporate social responsibility that caters for future generations. Thus, they engage in

activities that do not harm the environment but adopt new ways of operation to ensure that the

communities are not left behind while the company is developing and moving to greater heights

of success.

I have also learned that the success of an organization is not a result of individual efforts

but require inputs of both the leaders and other employees. This is well reflected in AECOM

whereby there is a great collaboration between all the stakeholders. This enhances sustainability

and growth that greatly determine the growth of the organization.

AECOM’s case study report

References

aecom.com/au. (2017). About AECOM. Retrieved from www.aecom.com:

https://www.aecom.com/au/about-aecom/

Agrawala, S., Matus Kramer, A., Prudent-Richard, G., Sainsbury, M., & Schreitter, V. (2012).

Incorporating climate change impacts and adaptation in environmental impact

assessments: Opportunities and challenges. Climate and Development, 4(1), 26-39.

Australia, A. E. C. O. M. (2009). Economic Viability of Electric Vehicles, for the Department of

Environment and Climate Change: 88.

Delivers, A. I. (2013). Collaboration the Key to Boosting Cons. Australian Concrete Construction,

9.

Dionisio, J. M. (2018). AECOM Code of Conduct. Los Angeles: AECOM.

Fern-fort-university. (2018). AECOM SWOT Analysis / Matrix. Retrieved from Fern Fort

University: http://fernfortuniversity.com/term-papers/swot/1433/156-aecom.php

Hanly, D. (2015). An investigation into the application of the aerotropolis strategy to the Cape

Town International Airport from a global south urban planning perspective (Doctoral

dissertation, University of Cape Town).

Harris, S. M. (2007). Does sustainability sell? Market responses to sustainability

certification. Management of Environmental Quality: An International Journal, 18(1), 50-

60.
AECOM’s case study report

Marshall, J. (2018, Jun 21). AECOM strengthens commitment to corporate responsibility with the

launch of the Blueprint Travel Grant program. Retrieved from aecom.com:

https://www.aecom.com/ae/press-releases/aecom-strengthens-commitment-corporate-

responsibility-launch-blueprint-travel-grant-program/

McGillick, P. (2018). Cross-cultural practice. Architecture Australia, 107(1), 66.

Papargyropoulou, E., Padfield, R., Harrison, O., & Preece, C. (2012). The rise of sustainability

services for the built environment in Malaysia. Sustainable Cities and Society, 5, 44-51.

Riesz, J., & Tourneboeuf, E. (2012). Delivering energy price security in an age of

uncertainty. AECOM Australia.

AECOM’s case study report

Appendix

Survey results

Not at all To a To a To a large To a very

weak moderate extent large
extent extent extent

Principle 1: Alignment

Our business has aligned employee behaviours 1 2 3 4 5

with stated company values and direction.

Principle 2: Distributed Leadership

In our business, individuals and work teams are

assigned, and accept, responsibility for 1 2 3 4 5
operational decision making and performance
improvement.

Principle 3: Integration of Effort

Our business is not a functional/ hierarchical 1 2 3 4 5

organisation but a value creation/process
focused organisation.

Principle 4: ‘Out-Front’

Our business takes a lead in determining 1 2 3 4 5

industry standards and practices.

Principle 5: ‘Up-Front’

We apply high standards of integrity and 1 2 3 4 5

openness in everything we do.

Principle 6: Resourcing the Medium Term

Our business is able to effectively balance short- 1 2 3 4 5

term and medium term issues and
requirements.

Principle 7: Time Based

Time is a critical organisational value in our 1 2 3 4 5

business.

Principle 8: Bias for Action

Our business is good at implementing ideas and 1 2 3 4 5

strategies.

Principle 9: Learning Focus 1 2 3 4 5

AECOM’s case study report

Everyone in our business is involved in a

learning/development program.

Principle 10: Discipline

We invest in policies, procedures and standards 1 2 3 4 5

and apply a strong systems perspective in our
business.

Principle 11: Measurement/Reporting and

Publication

Our business measures and reports to our 1 2 3 4 5

employees, the financial and non-financial
performance information needed to excel.

Principle 12: Customer Value

In our business, all employees strive to enhance 1 2 3 4 5

customer value creation.

Principle 13: Capabilities Creation

Business and organisational capabilities are 1 2 3 4 5

defined as priority areas for development and
investment.

Principle 14: Micro to Macro

Our employees know how their individual 1 2 3 4 5

efforts contribute to business success.