ANNUAL REPORT 2006 - Skanska

Strategy for profitability
SKANSKA’S STRATEGY FOR ACHIEVING ITS
OPERATIVE AND FINANCIAL TARGETS IS TO:
• maintain a disciplined focus on the core business carried
out in four business streams – Construction, Residential
Development, Commercial Development and Infrastructure
Development
• be an international company with local businesses that have
leading positions in selected home markets
• recruit, develop and retain highly competent employees
while working to bring about greater diversity
• take advantage of the collective resources and strengths
of the Group – brand, employee expertise and financial
strength
• foresee and manage risks in its business with the help of
well-functioning risk management systems
• be an industry leader in sustainability, particularly in
occupational health and safety, ethics and the environment
• take advantage of the existing potential to coordinate
the Group’s purchasing as well as the efficiency gains that
can be achieved through greater industrialization of the
construction process
Construction and project development – complex businesses
Unlike industrial production at fixed plants, in construction and
project development most projects are unique. In principle, each
project is implemented in a new location, in a new environment
and with a unique design. Customers are usually local and many
projects are carried out for completely new customers. Market conditions
also vary between both countries and regions.
As a rule, construction projects are large. It is not unusual for
them to be the customer’s largest single investment. Another distinguishing
feature of construction is the large number of local players
involved in each project – public agencies, architects and engineers,
financiers, consultants, suppliers and subcontractors. This is why
Skanska consists of local units in a global network.
MISSION
Skanska’s mission is to develop, build and maintain the
physical environment for living, traveling and working.
VISION
Skanska shall be a leader in its home markets – the
customer’s first choice – in construction and project
development.
GOALS
Skanska’s overall goal is to generate customer and
shareholder value. Projects are the core of Group
operations and value is generated in well-implemented
and profitable projects.
Skanska will strive to be a leader, in terms of size
and profitability within its segments in the home
markets of its construction business units, focusing
on “Outperform” margins and cash flow.
Skanska shall be a leading project developer in
local markets and in selected product areas such
as residential, office, retail and selected types of
infrastructure development projects.
The Group’s financial targets are described on page 7.
Customers
Employees
Media and general public
Skanska’s key stakeholders
Shareholders
Local residents
Suppliers and subcontractors
Voluntary organizations
National, regional and local
government agencies
All construction projects in a community have an impact on people and
environments. As a responsible company, Skanska contributes to social
development, generates value and satisfies the interests of different groups.
4 Mission, vision, goals and strategy
Skanska Annual Report 2006