Application of the model in CRH Plc will enable the company identify the external forces that affects the external activities of the company. This enables the formulation of improvement strategies that enhances performance in the changing marketing environment. The model generalises the strategies required in gaining competitive advantage in the industry for easy application (Onsman, 2004). However, application of the model may be misleading because it assumes a classic perfect market although it is clear that the construction and building industry is faced with numerous challenges. The SWOT analysis is crucial because it summarises the both the internal and external environment of a company i.e. strengths and weaknesses coupled with the opportunities and threats. The knowledge of both the internal and external environment will enable the company adopt measures appropriate for addressing both the internal and external challenges. However, analysis of the strategic management status of the company by use of the SWOT framework requires considerable time and energy when being applied in large corporations. The PESTEL framework assists in the identification of the macroeconomic factors that affects the whole industry, certain markets or the company. This is because many factors in the macroeconomic environment have significant impact on the overall managerial behaviour. According to the Global Industry Analysts (2011), the tool is crucial in understanding the factors that can influence the industry growth and decline. PESTEL analysis can also guide the company on the direction that they should take in avoiding failure or losses. However, undertaking the PESTEL is tedious and may be ineffective to large organisations. The framework is also limiting because it only focuses on the external environment of the company. Critical Analysis Porter’s Five Forces Analysis Rivalry among the Existing Firms The company has numerous competitors in the industry, especially the well established multinational companies such as Lafarge S.A. and Holcim Ltd. In 1990, the market was dominated by large companies that capitalised on the strength in their local markets to expand internationally. According to Davenport (2002), the competing companies increased their supply rate when the market for construction industry was booming locally; leading to increased competition for the local markets. This made CRH to venture into acquisition of smaller companies in both local and international hemispheres such as 26% shares of a North-eastern Chinese plant and a 50% stake of an Indian company in order to increase dominance both local and international markets (Batchelor, 2001). Bargaining Power of Customers The construction industry is extremely fragmented with the production rate varying depending on the location as well as other factors such as values and cultures. The application of the building regulations regarding the location of the
Table of Contents Table of Contents 1 Company Overview 2 Introduction to Analytical Models 2 Critical Analysis 3 Porter’s Five Forces Analysis 3 Rivalry among the Existing Firms 3 Bargaining Power of Customers 3 Bargaining Power of the Suppliers 4 Threat of Substitutes 4 Threats of New Entrants 5 SWOT Analysis 5 Strengths 5 Weaknesses 6 Opportunities 6 Threats 7 PESTEL Analysis 8 Political Factors 8 Economic Factors 8 Socio-Cultural Factors 9 Technological Factors 9 Environmental Factors 10 Legal Factors 10 Conclusion 11 Strategic Management for CRH Plc Company Overview CRH Plc is an Irish international company involved in the production and supply of building materials…
The system would primarily emphasise on the key operational staff which would include the area managers and the restaurant managers. This represents the top 20% of the operational staff in the organisation whose salary exceeds $60,000 per annum. The project tries to identify and bring forth the loopholes of the previous performance management system in the organisation.
on stage 13 Growth stage 14 Maturity Stage 14 Decline Stage 14 Conclusion 15 References 16 Bibliography 16 Introduction In the world of consumer electronics, copy cat brands are in abundance. Consumer usually buy products belonging to such brands when they do not want have to pay higher prices required to buy products of reputed brands.
It requires the assessment of the strength and weakness of the organization. It also requires establishment of the long term goals and objectives of the organization with the help of strategic assessment models like strength, weakness, opportunity and threat analysis and also the external analysis of the business environment (Toy Industry Association, 2012).
Strategic management is involved with the strategic analysis of the goals of an organization (Strategic objectives, vision and mission) together with the organizations internal and external environment and also involves competitive advantage to determine why some firms do outperform others (Dess, Lumpkin, Eisner, McNamara, & Kim 2012).
The company was launched with the vision to establish connection between car companies, battery companies, utilities and consumers. The company’s mission is to diminish and ultimately eliminate the requirement of oil in the automobile industry. Therefore, the company focuses on manufacturing of electric cars that are run by chargeable batteries.
The project tries to identify and bring forth the loopholes of the previous performance management system in the organisation. Based on the drawbacks, a new system is developed. The impetus for the new system of
Application of Porter’s five forces in the company will help in the identification of its strategic position with respect to the external environment. Application of the model in CRH Plc will enable the