STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

Introduction

Strategic vision is, “a challenging and imaginative picture of the future role and objectives of an organisation, significantly going beyond its current environment and competitive position”. (Porter 1980:15-26)

The future role involves thinking who the company wants to serve (key stakeholders), the reason behind the desired future state, the objectives are the stepping stones in which to get there (strategy).

CRH's strategic vision is 'to be a responsible international leader in building materials delivering superior performance and growth'. (Mintzberg 2003:46-50)

Discussion

To evaluate CRH I have used various models and theories to understand; how factors in the macro environment may affect CRH, what is happening within the building materials industry and who CRH's key stakeholders are. 'Organisations exist in the context of a complex political, economic, social, technological, environmental and legal world...those variables will give rise to opportunities and others will exert threats on the organisation'. (Meyer 2004:84-95)

Economic and industry cycles differ with geographical regions, geopolitical instability may cause problems , by spreading their portfolio globally (growth) CRH can concentrate on markets that are prospering, thus increasing profits and spreading risk. With international trade barriers continuously reducing and harmonising building practices and regulations, CRH are able to do this.

Technology in the industry is proprietary and relatively unsophisticated; production processes are standard. Commodity sales make up 41% of business, another 36% involves selling products with little or no difference to the competitors.

CRH, the successful international building materials Group, has had 35 years of consistent performance and growth. CRH was founded in 1970 following the merger of two major Irish companies, Irish Cement and Roadstone. Growth has been achieved through acquisitions and organic growth.

CRH's strategic vision is to "be a reasonable international leader in building materials delivering superior performance and growth".(Pettigrew 2006:95-110)

Human Resource Management (HRM) is a core element of this vision.

CRH maintains a relentless emphasis on performance and looks to continuing progress in the years ahead.

This requires strong management with constant monitoring of all aspects of the business. CRH places special emphasis on attracting and retaining best-quality employees throughout its operations.

CRH plc has its headquarters in Ireland and operations in 25 countries, mainly in Europe and the Americas. CRH companies operate in three core businesses: materials, value-added building products and distribution. The organisation is decentralised with experienced operational managers given a high degree of responsibility and autonomy within clear group guidelines.

The focus of CRH's Human Resources function is on ensuring that the best team and organisation structures are in place to run the business today and into the future. This involves a: (Sutherland 2004:45-56)

federal Group organised for growth

tried and tested development strategy

focus on measured performance and growth

experienced management team

remuneration policy that rewards performance

responsible corporate citizen

balanced business.

With 66,500 employees at a cost of over €2 billion per annum, it makes business sense for CRH to invest in 'human capital'.

Employee innovation, motivation and professional development provides CRH with a competitive advantage in markets where rivalry between industry players can be very ...