CRH Plc.: Comprehensive strategic analysis of CRH Plc and recommended strategy
1.2 Choose the Model for CRH
Strategy literature offers many techniques and models suited for systematic strategic analysis. The SWOT analysis, the PESTEL analysis, the Five Forces analysis framework are the prime examples of techniques that can be adopted for strategic analysis. This assignment will use PESTEL and Five forces model to analysis the environment of CRH plc. PESTEL analysis is to identify and analyze the strategy and business environment, it is stand for Political, Economic, Social, Technological, Legal, and Environmental factors. This model is to assessing the current environment and potential changes. If it is better than other project competitors, it would be able to respond to changes more effectively. Five forces analysis model is to analysis the strategy of competition, can analysis customer competition environment effectively, In addition, this assignment will use Ansoff’s matrix to analysis the strategic options of CRH plc. 1.3 advantage, disadvantage and limitation of model
Pettigrew, Thomas and Whittington (2001) argue that strategic management that involves usage of analytical models is constrained by its inherent weaknesses and the changing context of business. Strategy analysis suffers from its obsession with ‘rationally intended purposeful thought’ (Pettigrew et al., 2001, p.12) and intended choices pursued as the outcome of analysis are not always realised. There is a great scope for ‘emergent’ strategy – that spontaneously unfolds irrespective of any plan or grand design, and carries with it the potential to produce superior results. Other reasons for which analytical models have their limitation are: ‘the theory and practice duality’ and the ‘constantly changing context’ (Pettigrew et al., 2001, p.11). Time and place are seen to be important influencing factors on ‘managerial practices and the patterns of...
References: and Bibliography
1. Pettigrew, A.M.; Thomas, H. and Whittington, R. (2001); Handbook of Strategy and Management; Sage Publications Ltd.
2. Smyth, J. (2012); CRH cuts forecast as Sandy hits US unit; Financial Times [Online], available at http://www.ft.com/cms/s/0/50865f18-2da0-11e2-9b88-00144feabdc0.html#axzz2EvrOlKH9, accessed on 12 Dec. 2012.
3. Wit, B. De and Meyer, R. (2008); Strategy: Process, Content, Context – An International Perspective; Thomson, 3rd Edition.
4. Mazzucato, M. (2002). Strategy for Business. Sage Publications Ltd.
5. Porter, M.E. (1980); Competitive Strategy: Techniques for Analysing Industries and Competitors; Free Press, New York.
6. James Cunningham, Brian Harney(2012); Strategy and Strategists; Oxford University Press.
7. Johnson, G. and Scholes, K. (2002), Exploring Corporate Strategy, 6th Edition, Pearson John Wiley & Sons, Inc., New Jersey.
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