CASE STUDY

Case Study

[Name of the institute]

Case Study at CHR

Answer 1

CRH has adopted one of the most successful strategies of vertical integration. There was noticeable downturn in the industry due to recession that shook almost every industry. CRH implied number of mechanisms to ensure their profitable existence. Vertical integration has always to be one tactic to expand the business in the market. The company adopted it to attain control over the value chain of the industry. They made superior alliances with their suppliers and distributors and brought them into a legal bondage. Their market penetration in 1970 proved to be highly supportive to acquire leading position in the industry. The company believes in vision and strongly focuses to attain and become responsible global leader in the sector of building materials to provide with at par performance and development. CRH purposely has envisioned a 'group' strategy to find new geographically located forums to incorporate in their core business. Most of the deals for CRH proved to be on the negotiating basis with tendered bids that was not common.They strive to earn an advantage of complementary product opportunities to attain the needed strategic balance. According to Perron et al. (2005, pp.1-26), this enables the company to develop more than one forum as to deliver the planned performance and achieve growth.

CRH has planned their growth via practicing their strategic composition of performance. They are growing their business by making variant investments in the new capacity. They are expanding their capacity as to cover more and more business in the market industry. They make new products to capture new markets and expand in the existing ones. Besides, acquisition has always remained their specialty since by acquiring and making growth mid-sized firms amplified from time to time making much larger deals in comparison to the past ones. On the other hand, there are two noticeable features that CRH propagates regarding their product and materials. Leadership and their broad-based geographic product segmentation are the two distinguishing features. The former feature is based on reflecting fragmentation of industry. They have adopted a 'group' focus on attaining and managing their leading standing in local markets as well through product segmentation or niches. According to Nilsson & Rapp (2004, pp.1-26), the second feature enhanced the impact of variable economic situations as to acquire greater chances and opportunities to have growth.

The company has a federal structure that has established small main headquarters and four regional product divisions. In order to expand knowledge of the local market, the company has developed operational managers who follow the Group Guidelines and Controls. Their local operating units and subunits possess operational self-sufficiency but unfortunately they are still dependent. They have divided their operations between the two countries; Europe and America. The operations are based on materials, products and distribution implications. They have learned the approaches to have continuous evaluation, approval and review of projects. They give immense attention on designing the planning phase as this is the main deal for the ...