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 customers 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 PLCs investments difficult, because costs and revenues change so
Bad Economy A bad economy can hurt CRH PLCs 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 PLCs 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 PLCs 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