Case study: CRH plc.

Order Description

Answer ALL the following questions:

1. The case refers several times to the culture of CRH plc. Discuss the culture of CRH plc using any theoretical approaches you feel may be applicable.

2. Using any academic models with which you are familiar, assess the competitive environment of CRH plc in the building materials industry.

3. Comment on the likely usefulness of the SWOT analysis for CRH plc.

CRH plc SWOT analysis

Strengths

Strong Management Strong management can help CRH PLC reach its potential by utilizing strengths and eliminating weaknesses.

Economies of Scale Economies of scale is the cost advantages that CRH PLC obtains due to size. The greater the volume,€¦

Technology  Superior technology allows CRH PLC to better meet the needs of their customers.

Customer Loyalty When given a choice, customers are loyal to CRH PLC.

Brand Name  A strong brand name is a major strength of CRH PLC. .

Weaknesses

Opportunities

Online Market  The online market offers CRH PLC the ability to greatly expand their business.

Innovation  Greater innovation can help CRH PLC to produce unique products.

New Technology  New technology helps CRH PLC to better meet their customer’s needs with new and improved products.

Emerging Markets  Emerging markets are fast growing regions of the world that enable CRH PLC to quickly expand.

New Products  New products can help CRH PLC to expand their business and diversity their customer base.

New Markets  New markets allow CRH PLC to expand their business.

International Expansion  International markets offer CRH PLC new opportunities to expand the business and increase sales€¦

Threats

Volatile Currencies  Volatile currencies make CRH PLC’s investments difficult, because costs and revenues change so€¦

Bad Economy  A bad economy can hurt CRH PLC’s business by decreasing the number of potential customers.

Govt Regulations  Changes to government rules and regulations can negatively affect CRH PLC.

Change in Tastes  Consumers can change their tastes very quickly.

Political Risk  Politics can increase CRH PLC’s risk factors, because governments can quickly change business rules.

Volatile Costs  Volatile costs mean CRH PLC has to plan for scenarios where costs skyrocket.

Substitute Products  The availability of substitute products hurts CRH PLC’s ability to raise prices, because customers€¦

CA5 E S T U UV

CRH plc: successful corporate-level strategy

in a challenging enVIron-ment

Mike Moroney

Even with a small corporate headquarters in a challenging environment, it is clear that corporate-level strategy

can generate substantial value-added. Less well understood are the mechanisms of delivering these benefits at

this level of strategy. These issues are explored in this case study on CRH {an international building materials

company based in ireland). which is an exemplar of corporate-level management.

e e a

In March 2010, CRH(one ofthe top four building materials lightside’ building products (e.g., plumbing, heating.

companies in the world) announced financial