Larabarge Tarmac Executive Summary
A number of factors that can affect a threat of substitutes are relative price performance of substitutes, Perceived level of production differentiation, product innovation and technology change. For Lafarge Tarmac, the threat of potential substitutes is low as the company is the merger of two of the leading business of UK.
Rivalry among Existing Competitors
The intensity of competition is Low as the company operates in the industry which is not highly competitive. Not much companies are dominant in the cement and construction industry therefore rivalry among the existing competitors exits but is relatively low (Lafarge Tarmac, 2015)
2.3 Significance of Stakeholder Analysis
This tool that can be helpful in seeing how desires of groups and …show more content…
people impact the aims and objectives of organisations. Shareholder analysis is a procedure that one can use to distinguish and survey the significance of key individuals, gatherings of individuals, or foundations that may altogether impact the achievement of a business action. In graphical terms examination of shareholder can be outlined with the accompanying's utilization Power/Interest (Stake) framework: LOW STAKE HIGH STAKE
LOW POWER
HIGH POWER
Mapping Stakeholders
Stakeholder Power / Potential Low Stake/ Importance High Stake / Importance
High Influence / Power
Keep Satisfied –
This can be valuable in seeing how Useful for choice and feeling definition. For instance administrative bodies should be kept satisfied Manage Closely –
Most basic groups of shareholders: work together closely.
Low Influence / Power Monitor (minimal effort) –
The stakeholder group which is at least priority should be monitored and ignored. Keep Informed –
Critical group of stakeholders, needing strengthening: include, construct limit and secure interests.
The above grid characterizes shareholders in connection to the force they hold and the degree to which they are liable to show enthusiasm for the association's systems. The grid likewise sets up the sort of relationship which the association should set up with every partner bunch. The above examination can help to recognize which groups of partners are prone to be the key blockers and facilitators of progress are in connection to new strategy formation. This is essential as chiefs need to recognize clashing desires of groups of shareholders and need to build systems to suit their business objectives and destinations and in the meantime oversee shareholders desires to guarantee acknowledgment of the techniques which are planned.
TASK 3 3.1 New Strategy for Lafarge Tarmac
Substantive growth strategies: Substantive growth strategy involves diversification horizontally and vertically through related or unrelated diverse products. Diversification is a type of development procedure. Development methodologies include a noteworthy increment in execution goals (for the most part deals or piece of the overall industry) past levels of execution. Numerous associations seek after one or more sorts of development procedures. One of the essential reasons is the perspective held by numerous speculators and officials that "greater is better." The supposition is regularly made that if deals build, benefits in the long run will follow eventually (Amit & Schoemaker, 2012).
3.2 Justification of Strategy
Rewards for administrators are typically more noteworthy in the diversification strategy when a firm is seeking after a development system. Supervisors are frequently paid a commission in light of offers. The higher the business level, the bigger the pay got. Acknowledgment and power additionally accumulate to directors of developing organisations. They are all the more oftentimes welcomed to identify with expert gatherings and are all the more frequently talked with and expounded on by the press than are chiefs of organisations with more noteworthy rates of return however slower rates of development. Consequently, development organisations additionally turn out to be better known and may be better capable, to draw in quality directors (Casadesus-Masanell & Ricart, 2010).
TASK 4
Strategy Implementation Business Operation
(The impact of strategy implementation on the operations of the Business)
Culture The culture will be improved due to the implementation of new strategies.
Structure The structure of the organisation will remain the same. The new strategies will not have any impact on the structure of the business
Systems The systems will be enhanced which were already in use. New systems will also be required by the company to implement the new strategy
Table 4.1 (a)
4.1 (b) Roles and Responsibilities of Personnel
Strategists (Who?) Activities (What?) Methodologies (Which?)
Managing Director
Formulating Polices
Assessing variable factors internal and external that can have effect on the business
Through the use of various internal and external environment analysis tools.
Such as Ansoff’s matrix, PESTLE etc.
Directors Assessing the policies and helping Managing Director in formulating them Through the use of various internal and external environment analysis tools. Such as Ansoff’s matrix, PESTLE etc.
CEO
Conduct internal audit of the company and keeping control the current methods and practices Through internal analysis tools such as SWOT analysis and by keeping check on the KPI’s.
Legal Advisor
Advise on the legal implications and deals with the legal matters Through constantly checking the legal requirements set by the law formulating authority of the region
Company Secretary Maintaining records and keeping check and balance for the new policies Through proper management of the record and through the procedure as laid down in the law.
Table 4.1(b) 4.2 Analysis of the Estimated Resource Requirements for Implementing a New Strategy for Lafarge Tarmac
Type of resources required Access to / availability of resources Constraints/ obstacles that may affect the
implementation
Financial Through arranging finance by obtaining loans from the financial institutions Legal requirements and limits.
Human Resource Through attracting new talent from the market
Non-availability of the deserving and eligible candidates.
Financial limitations
Technological Through implementing new soft wares and working with high tech consultation companies Financial limitations
Table 4.2
4.3 Evaluation of the Contribution of Smart Targets to the Achievement of Strategy Implementation in Lafarge Tarmac
Targets(corporate, operational & individual) to be reviewed and evaluated SMART principles (specific, measurable, achievable, realistic and time constrained) Tool of evaluation/control and its suitability to evaluate/control the target
To become the leading company of the industry
To mix the best policies and practices of both the companies To increase the profit
To obtain sustainability in its products
Effective policies Checking KPIs and constantly checking controls
Through the performance and monitoring growth of the business
Reducing waste
Efficient Working
Through KPIs
Table 4.3
Rivalry among Existing Competitors
The intensity of competition is Low as the company operates in the industry which is not highly competitive. Not much companies are dominant in the cement and construction industry therefore rivalry among the existing competitors exits but is relatively low (Lafarge Tarmac, 2015)
2.3 Significance of Stakeholder Analysis
This tool that can be helpful in seeing how desires of groups and …show more content…
people impact the aims and objectives of organisations. Shareholder analysis is a procedure that one can use to distinguish and survey the significance of key individuals, gatherings of individuals, or foundations that may altogether impact the achievement of a business action. In graphical terms examination of shareholder can be outlined with the accompanying's utilization Power/Interest (Stake) framework: LOW STAKE HIGH STAKE
LOW POWER
HIGH POWER
Mapping Stakeholders
Stakeholder Power / Potential Low Stake/ Importance High Stake / Importance
High Influence / Power
Keep Satisfied –
This can be valuable in seeing how Useful for choice and feeling definition. For instance administrative bodies should be kept satisfied Manage Closely –
Most basic groups of shareholders: work together closely.
Low Influence / Power Monitor (minimal effort) –
The stakeholder group which is at least priority should be monitored and ignored. Keep Informed –
Critical group of stakeholders, needing strengthening: include, construct limit and secure interests.
The above grid characterizes shareholders in connection to the force they hold and the degree to which they are liable to show enthusiasm for the association's systems. The grid likewise sets up the sort of relationship which the association should set up with every partner bunch. The above examination can help to recognize which groups of partners are prone to be the key blockers and facilitators of progress are in connection to new strategy formation. This is essential as chiefs need to recognize clashing desires of groups of shareholders and need to build systems to suit their business objectives and destinations and in the meantime oversee shareholders desires to guarantee acknowledgment of the techniques which are planned.
TASK 3 3.1 New Strategy for Lafarge Tarmac
Substantive growth strategies: Substantive growth strategy involves diversification horizontally and vertically through related or unrelated diverse products. Diversification is a type of development procedure. Development methodologies include a noteworthy increment in execution goals (for the most part deals or piece of the overall industry) past levels of execution. Numerous associations seek after one or more sorts of development procedures. One of the essential reasons is the perspective held by numerous speculators and officials that "greater is better." The supposition is regularly made that if deals build, benefits in the long run will follow eventually (Amit & Schoemaker, 2012).
3.2 Justification of Strategy
Rewards for administrators are typically more noteworthy in the diversification strategy when a firm is seeking after a development system. Supervisors are frequently paid a commission in light of offers. The higher the business level, the bigger the pay got. Acknowledgment and power additionally accumulate to directors of developing organisations. They are all the more oftentimes welcomed to identify with expert gatherings and are all the more frequently talked with and expounded on by the press than are chiefs of organisations with more noteworthy rates of return however slower rates of development. Consequently, development organisations additionally turn out to be better known and may be better capable, to draw in quality directors (Casadesus-Masanell & Ricart, 2010).
TASK 4
Strategy Implementation Business Operation
(The impact of strategy implementation on the operations of the Business)
Culture The culture will be improved due to the implementation of new strategies.
Structure The structure of the organisation will remain the same. The new strategies will not have any impact on the structure of the business
Systems The systems will be enhanced which were already in use. New systems will also be required by the company to implement the new strategy
Table 4.1 (a)
4.1 (b) Roles and Responsibilities of Personnel
Strategists (Who?) Activities (What?) Methodologies (Which?)
Managing Director
Formulating Polices
Assessing variable factors internal and external that can have effect on the business
Through the use of various internal and external environment analysis tools.
Such as Ansoff’s matrix, PESTLE etc.
Directors Assessing the policies and helping Managing Director in formulating them Through the use of various internal and external environment analysis tools. Such as Ansoff’s matrix, PESTLE etc.
CEO
Conduct internal audit of the company and keeping control the current methods and practices Through internal analysis tools such as SWOT analysis and by keeping check on the KPI’s.
Legal Advisor
Advise on the legal implications and deals with the legal matters Through constantly checking the legal requirements set by the law formulating authority of the region
Company Secretary Maintaining records and keeping check and balance for the new policies Through proper management of the record and through the procedure as laid down in the law.
Table 4.1(b) 4.2 Analysis of the Estimated Resource Requirements for Implementing a New Strategy for Lafarge Tarmac
Type of resources required Access to / availability of resources Constraints/ obstacles that may affect the
implementation
Financial Through arranging finance by obtaining loans from the financial institutions Legal requirements and limits.
Human Resource Through attracting new talent from the market
Non-availability of the deserving and eligible candidates.
Financial limitations
Technological Through implementing new soft wares and working with high tech consultation companies Financial limitations
Table 4.2
4.3 Evaluation of the Contribution of Smart Targets to the Achievement of Strategy Implementation in Lafarge Tarmac
Targets(corporate, operational & individual) to be reviewed and evaluated SMART principles (specific, measurable, achievable, realistic and time constrained) Tool of evaluation/control and its suitability to evaluate/control the target
To become the leading company of the industry
To mix the best policies and practices of both the companies To increase the profit
To obtain sustainability in its products
Effective policies Checking KPIs and constantly checking controls
Through the performance and monitoring growth of the business
Reducing waste
Efficient Working
Through KPIs
Table 4.3