Crh - Strategic Management

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SIST Off-Campus Centre for University of Sunderland

Strategic Management
Assignment

Done by: Supervised by: Jalal BENAMEUR Mr. ANBARI

Academic Year: 2009-2010
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TABLE OF CONTENTS

❖ Introduction……………...…………………………………………….3

I- PESTEL Framework……………………………………….….……..………4

II- Organization standing……………….………..……………………….…7

III- Mission and strategy of CRH………………………….…………….…8

IV- Distribution of responsibilities in the organization………….…8

V- SWOT analysis……………………………………………………..……….10

VI- Problems faced by CRH…………………………………….…………..11

VII- Solutions proposed……………………..…………….…………….….11

VII- Conclusion……………………………………………………………......12

❖ Referencing……………………………………………………………13 [pic] [pic]

INTRODUCTION

CRH is an Irish company founded in 1970 after the merger of two public companies (Cement limited and Roadstone limited). Forty years ago, the company was a local player in Ireland and was supplying the local market with building material. Nowadays, CRH is one of the five biggest building companies in the world; it employs 95.000 employees in 26 countries and operates in over 3000 locations.

The company is present in Europe and North America in markets that are mature and full of competition.

CRH received many awards especially for financial reporting and innovation in environmental and safety practices.

During this assignment, I will try to present the strategic characteristics of the building materiel industry and show how CRH adapted its strategy to respond to its environment by treating a number of points and analysing several aspects of the company’s internal and external environment.

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PESTEL FRAMEWORK

According to Johnson G., Scholes K. and Whittington R.:”The PESTEL framework categorises environmental influences into six main types: Political, economic, social, technological, environmental and legal.”

Like every company in the world, CRH is influenced by its environment. That is why the company must adapt its strategy and have a good vision on the environment in which it operates. The environmental influence on the company’s strategy and performance is presented below:

• Political environment:
- CRH is facing in some regions of the world problems which are due to local political instability but in the majority of the countries where the company is operating the geopolitical situation is stable.

- CRH beneficiates of low barriers to entry which gives the opportunity to the company to penetrate markets and easily compete with local companies.

- Foreign trade is regulated by the World Trade Organization (WTO). However, there are some regional agreements in countries where CRH is operating such as: the “European Union” between all the members of the EU or the “North American Free Trade Agreement” (NAFTA) between the United States, Canada and Mexico. [pic] [pic]

• Economic environment:
- The economic crisis that hit the world had harmful consequences on the worldwide economy. Unemployment is increasing and incomes are going down which means that the demand is affected and people can not afford to build or buy houses built by other companies.

• Social environment:
- The trend of an ageing population in many countries can constitute a problem for the company especially in finding local labour but it also can constitute an opportunity because this third age population will need special buildings and facilities like nursing homes for example.

• Technological environment:
- Some...
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