Evaluate the Strategic Vision of Crh Plc. Who Are Its Key Stakeholder Groups and How Well Is Each Served by the Mission and Vision?
Evaluate the strategic vision of CRH PLC. Who are its key stakeholder groups and how well is each served by the mission and vision?
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” (Lynch 2006, p.351).
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’ (CRH Annual Report 2005, pp. 1, 2.)
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’ (Scholls et al. 2006).
Issues highlighted looking at the macro environment – Appendix 1
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. With technology having little competitive advantage in this industry and rising customer expectations CRH need to focus on
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” (Lynch 2006, p.351).
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’ (CRH Annual Report 2005, pp. 1, 2.)
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’ (Scholls et al. 2006).
Issues highlighted looking at the macro environment – Appendix 1
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. With technology having little competitive advantage in this industry and rising customer expectations CRH need to focus on