Business, Strategic and Operations Management in CRH - Case Study Example

ASSIGNMENT, BUSINESS STRATEGIC AND OPERATIONS MANAGEMENT FOR CRH By: Introduction This paper delves in the discussion of the strategic and operations management. It is important to highlight that for the success of any business enterprise, the suitable site for the business location is a very important concept to be considered. The wrong location of a business can be a mess or a mistake that that can be almost impossible in the correction. It is therefore important for the various entrepreneurs to strategically locate the businesses at areas that can enable them to maximize profits. It is therefore important to highlight that this paper will focus concentrate on the discussion that is much associated with to CRH. This is one of the leading companies in the world with building materials. This company is however based in Ireland (Diana, 2013). Strategies that CRH pursue It is important to highlight that CRH is quite focussed and takes into consideration every business hitch and utilizes it for the better. The company realized the factors that lead to the business and noted keenly with a lot of concern that for the company to excel, the price that is charged on the various commodities should be relatively cheap and affordable that favours a large number of people. It is also important to highlight the other factors that the company considered; the quality of services that are offered. This is the overall view, perception as well as experience that the customers get after consuming the products. The value that the customer attaches to the product offered and how the interact with the persons providing the service depicts the quality as either high or low quality (Diana, 2013). The company being ranked as one of the top leading companies in the world in terms of the provision of the building materials, it is important to highlight that the company had to strategize and develop ways to meet the large demand for the products that they offer. This therefore means that the company had to be more reliable and accountable in terms of productivity. This also led to the company establishing smaller markets and enterprises within due to the variations in the legal issues in different parts of the world. This was in the essence that the company had consequently known that micro-markets enhance the successful business performance (Diana, 2013). The main elements of the successful strategic approach employed by CRH in a difficult industry environment In the realization of the tight as well as the difficult market environment, it is important to highlight that CRH developed strategies for the successful operations. These strategies were with certain key elements as they are well explained and clearly discussed below: Acquisition of land overseas for expansion It is also important to highlight that through the spread of the risks in the countries, the CRH developed better strategies of operations by the venturing into businesses that it is much familiar with in the country. This initiative was taken in the countries abroad through the globalization exercise to optimize as well as to maximize the profits. It is important to highlight that the company made this decision and invested by expanding its businesses in the various countries. Among the countries that the company first invested through the expansion process was United Kingdom and Netherlands. This was an apathy that was initiated by the company after the company had made arrangements and acquired a given piece of land in Europe (Diana, 2013). This has therefore led to the development of the company and its other branches expanding and developing in a rapid was and a manner that is quite rewarding to the company and thereby making the company to receive better rates of returns from the investments that they made in the overseas countries. This has made the company to make investments in various new market areas and also in the sale of the new market products that are in high demand by the people (Diana, 2013). Product focus larger acquisitions It is important to highlight that for the success of any business entity, a very vital role that should always be executed by the entity is the SWOT analysis. Under this, a business identifies and takes into account its strengths, weaknesses, opportunities available in the market and the possible threats in the market. This is actually a strategy that CRH also conducted in the companies’ strategies. It also involved itself in the product market concept and made its focus in the product. It is important to highlight that the product that a company offering the market is quite sensitive to the business. This is so because the product quality as well as the features that are attached to the product are the very crucial hitches that the customer focus are based and this is the reason as to why the company therefore did market research to enable it to produce and distribute products that are to the taste of the employees (Diana, 2013). Strategy It is important to highlight that CRH is a focused company that aims at being the leading in terms of the productivity of the building materials. This therefore explains the core business if the company. This is for the better excellent performance of the business. This is well achieved by the business following the vision as well as the mission to the latter. It is always quite important for the various companies as well as the other business entities to follow their given business missions and visions to enhance the success of the businesses. In the CRH Company, it is impossible to highlight that the company achieved this success through, the investments and developments in the various new capacities in the various companies. This is in the various countries that have business opportunities (Diana, 2013). Through the strategies that were laid by the company. It also made its operations in the difficult business environment by also creating new products and also through the making of improvements in the existing product as that was in the company. This was to enable the business to attract new customers and the same time retaining the available customers. The company ensured growth by the various investment procedures that kit did in the midsized companies that it acquired in the various geographical sites and locations (Diana, 2013). Product and markets It is also important to highlight that the company in question (CRH) had the various core centres of focus that it so much put stronger emphasis on. In this case it is clearly noted that the company could out do most of its competitors in the sales and the productivity. The company ensured this strategy in the sense that it developed two other elements that it used in the realization of this strategy. This was through the development of the leadership measures ion the company for the CRH product market portfolio. Leadership was the key weapon that the company used as a way of outdoing the other competitors in the market (Diana, 2013). This was in the sense that the company aimed and highly concentrated on the gaining, maintaining and securing the position of being the leading company in the area. This was through the fact that the customers had developed loyalty to the firm and that the employees had on the other hand become loyal to the company too. This therefore led to the quality of the services that were provided to be high so that the customers that had been in the custody of the company to be hold. This therefore translated to better sales in the company despite the challenges that the company faced in the view that in operated under harsh market conditions (Diana, 2013). Another element that the company used in its operation to maximize on the sales during the harsh climatic conditions was the fact that the company tried to decentralize, delocalize as well as to devolve most of the products that the company offered to the customers. This therefore led to the broad and wide development of the wide base for the company operations to realize better sales in the difficult market situations. It is also important to highlight that this delocalization exercise by the company was based on the geographical location of the market, the product itself, the sector as well as the by the use of the product. This therefore led to the broad market created for the business and to optimize on sales as it maximizes on the profits hence laying firm foundation for the company to grow in the various areas of concern of the company (Diana, 2013). Effective management and organization strategies CRH Company ensured that effective management controls are properly executed by the decentralization of the management unit. The company has at the same time distributed the products divisions and segmentations in the various regions in the world. This has enabled the company’s products to be effectively managed and resources reaching the deeper areas in the various localities that the company markets are suited and located and even the other areas that the company targets to provide its products to (Diana, 2013). Still on the management strategies by the company, it is important to highlight that the company through the various key managers in the relevant departments that are in the company that is to say the chief executive, the company has therefore been appropriately evaluating the products in careful approaches that are quite selective in terms of their approval as well as the review. The company therefore incorporated the duo necessities for the effective business performance. These were at the same backed up by other five development strategies that the company put in place during the operations (Diana, 2013). It is important to highlight that the company therefore went to the drawing board on the determination of the areas that it needed to work on so as to operate effectively in the business market. This led to the formulation as well as the strategizing of a five year term development plan that fostered for the company development for the five years (Diana, 2013). The types and nature of parenting advantage Parenting advantage is the case whereby the business or company puts more positive attributes and reputation to itself, the customers that jut serves as well as to the mother entity. It is important to highlight that the CRH Company has adopted various types of parenting advantages for its effective operations in the market for the better of its sales. The company (CRH) similarly enhanced the various types of parental advantages that have been employed by the business to enhance the effective company performance. These clearly highlighted below: Stand alone influence:- This is a case whereby the company or a business entity uses ion the sense that it tends to decentralize and globalize thereby treating each segment or branch of the company as a separate entity. Under this, it is clearly evident in the case of the CRH Company as it has had several business locations art various parts and treats each entity as independent. By this, it is quite advantageous to the business in the perception that the business is able to optimize in the business opportunities in various areas thereby maximizing on profits. It is therefore important as each branch of the company is seen to be a profit yielding center (Diana, 2013). Linkage influence: - under this, it is important t highlight that there is the creation of the value through the improvement in regards to better understanding. This has been well implied by CRH through the rewards tom the employees (Diana, 2013). Central functions and services: - in this case, it is important to note that CRH has offered the administrative roles and management to the company (Diana, 2013). Corporate development: - under this, it is clear noted that the portfolio of the CRH company is effectively managed (Diana, 2013). Critical analysis of the style of corporate-level management employed by CRH It is quite needful in the assessment and the evaluation of the various corporate levels of management CRH had adopted in the management system. It is therefore important to highlight that the company is very active in the application of the federalism concept in management. With the few number of the employees, it is important to highlight that the company. The key areas of management in the company were on the finance and the development of the business. The company formed a development team that would help in the development matters in the other regions. These were very vital in the escalating the contemporary issues in the newer regions of conducting the business. The company has on the other hand been so firm on the management issues and that the company enforces standards on the management essentials. This was enhanced through the proper vetting of 400 managers. This was to ensure that the people who are given the managing responsibilities are well skilled with the management requirements for the better of the business. It is also important to highlight that through the management seminars that were conducted in the country, it provided the new managers with the management basics that were quite ideal for the effective of the business (Diana, 2013). The development of the Leadership Development Program, (LDP) that was conducted in by the senior managers and it involved the exhibition of the various management strategies. It is as well important to highlight that Business Leadership Program (BLP) similarly helps in the mentoring of the experienced managers with the senior leadership roles (Diana, 2013). A program of future action for Myles Lee and CRH senior management with detailed rationale For the future developments of the CRH Company, it is therefore important to highlight that the company needs to develop better ways that it can use to increase the sales as well as profitability. This can be enhanced by the company merging with the other companies to form establish a larger enterprise that it may optimize on sales (Diana, 2013). The other future that is to be employed by the company is by the company involving itself in franchising exercise. This would help in the company realizing better sales as it has good reputation due to the customer loyalty that is developed by the CRH Company. This would help in the company to realize better sales of the products that they offer to the clients hence maximizing on the profits (Diana, 2013). It is also recommended for the company to also engage itself in the online sales and marketing of the products. This would help the company’s customers to make online reservations for the business products. This would assist the business in the extending the market in the various parts of the world. It would as well enhance the better customer link with the management thereby making them to know the customer requirements (Diana, 2013). References Diana, L.( 2013) Teaching as a Design Science: Building Pedagogical Patterns, UK, Routledge Publishers, page 107. Read More