SWOT analysis for ARCADIS as a whole

Strengths	Weaknesses
Home market positions in Europe, United States and South America	Limited position in Asia
Focus on three business lines with growth potential	Relatively high fixed costs, labor intensive services
Extensive client list with multinational companies	Visibility outside the Netherlands
Stable cash flow and healthy balance sheet
Opportunities	Threats
Synergy based on expertise and client relationship	Shortage in labor market
Climate change and sustainability push demand	Rapid market decline caused by credit crisis
Outsourcing by companies and privatization by governments	Weakening of U.S. dollar (translation risk)
Further expansion through acquisitions

INFRASTRUCTURE

SWOT analysis for Infrastructure

Strengths	Weaknesses
Strong local positions and broad service offerings	Insufficient recognition internationally
Specialist in rail, water management and large transportation corridors, including bridges and tunnels	Reputation in water limited to water management
Opportunities	Threats
Major investments in (public) transportation	Sudden reductions in government spending
Climate change pushes water management in delta areas	Increasing competition based on price
Increase in public-private partnership projects
Privatization by governments

Ambition in Infrastructure

Recognized global infrastructure player based on local strength
We plan to achieve this by:

• Building leadership positions in rail, water management and large transportation corridors (including bridges and tunnels) by focusing on knowledge exchange and development through our newly established Global Knowledge Networks. The focus for each of these activities is different. For rail, the focus is on the Netherlands, the United Kingdom, France and Poland; for water-related services, on the United States and Europe; and for large transportation corridors, on large, multidisciplinary projects, including design-build or PPP schemes.
• Growing select mining accounts, especially in South America and the United States, by leveraging the relationships we have with major clients.
• Continue expanding our strong home market positions through organic growth, as well as acquisitions.
• The goal for organic growth is 6%; the target margin is 8% to 9%.
  

ENVIRONMENT

SWOT analysis for Environment

Strengths	Weaknesses
International footprint with home-country strength	Developing position in Asia and the Middle East
Strong client base and client-focused approach	Gaps in our network where we need to rely on strategic partners
Cost-effective remediation technologies and GRiP®	Visibility outside the Netherlands
Health and safety culture
Opportunities	Threats
Vendor reduction by multinational companies who look for global service providers	Economic decline: less environmental spending
Redevelopment of contaminated industrial sites	Reduction in environmental spending by the U.S. Department of Defense
Services related to climate change and sustainability

Ambition in Environment

Global leadership in environment
Our goal is to expand our position as the world's single leading provider of environmental services to private-sector clients. We plan to achieve this by:

• A clear, relentless focus on multinational and key national clients,  who will largely be private-sector clients but will also include important public-sector clients.
• Truly operating as one firm, sharing clients and knowledge across borders while seamlessly delivering an increasing array of services.
• Expanding services especially in strategic environmental consultancy and D4 (Deactivation, Decommissioning, Decontamination, Demolition) services, with a continued investment in our site evaluation and remediation capabilities.
• Strengthening our geographic presence in Europe and Brazil while expanding into Asia.
• Continued development and sharing of innovative technologies.
• Leveraging our strength in Environment into other business lines.
• The goal for organic growth is 12%; the target margin is 12% to 13%.

BUILDINGS

SWOT analysis for Buildings

Strengths	Weaknesses
Strong in project management across countries	Limited presence in specific countries
Global brand in architecture/planning with RTKL	Limited number of facility management services
Independent position in facility management
Opportunities	Threats
Demand for integrated services, including sustainability	Sensivity to economic cycles
Demand from international property investors	Sudden declines in real estate investment
Outsourcing of facility management by companies

Ambition in Buildings

A leap forward in Buildings
The buildings' goal as defined in our revised strategy is to achieve leadership by providing differentiating value to clients: design excellence, successful delivery and global reach.

• Design excellence stands for high-profile design and superior functionality created by the best. It will be achieved by growing the RTKL design and master planning activities and leveraging these across the Company.
• Successful delivery has to be established through our network of project and program management companies and an investment in a globally consistent project execution process that meets the high standards required by our rapidly growing international client base. Successful delivery is also key to the facilities management business, which is expected to achieve strong growth by adding several large clients and expanding the business beyond the Netherlands.
• Global reach translates to seamless delivery internationally and implies expansion of our project management capabilities (United States, France and Middle East), broadening the RTKL business geographically and offering tailored and packaged solutions to clients globally, using ARCADIS Worldwide Project Consulting (AWwPC).
• The organic growth goal is 8%, with a margin target of 10% to 11%.