The Grafton Group Project
Student Names: Stephen Bray B00037534 Johnny Geraghty B00020240 Alan Lennon B00020051 Emmet Toft B00015911 [pic]
Module Name: Strategic Management 2
Lecturer: Mr Liam Bolger
Submission Date: 29th April, 2010
Word Count: 10,413
Table of Contents
Background of the company: 2
History of the company: 3
The Environment 7
PESTEL analysis 7
Political 7
Economic 7
Sociocultural 8
Ireland population by Age 2006 9
Technology 10
Environment 10
Legal 10
Key drivers for change 10
The Industry 11
Porters Five Forces analysis 11
Substitute products/services 12
Bargaining power of buyers 12
Bargaining power of suppliers 12
Rivalry/Competition 13
Opportunities and Threats 14
Opportunities identified 15
Threats identified 16
Financial Information Analysis 17
Analysis of Financial Reports 18
Liquidity Ratios 18
Profitability Ratios 20
Net Profit Margin per Segment 20
Earnings per share (EPS) 21
Analysis: 23
Liquidity: 23
Profitability: 24
Debt: 24
Return on Investment: 24
Borrowings: 25 problems with accessing credit. 25
Share Price 26
Source http:investor/graftongroupplc.com 27
Liquidity: Excellent 27
Financial Strength: Excellent 27
Profitability: Fair 27
Growth: 0 27
Source www.corporateinformation.com 27
Outlook for the Future 28
Rationalisation measures: 29
Plans for 2010: 29
Opportunities 2010: 29
Group Strengths 30
Weaknesses 31
Strategic Capability 31
Critical Success factors for customers (a sample of but not limited to): 33
Corporate Governance 35
Grafton Group’s Compliance with the Combined Code 36
The Board – who reports to whom? 37
Directors’ Independence and Board Balance 38
Performance of the Board 39
Corporate Social Responsibility – CSR and Ethics 39
Shareholder and Stakeholder Expectations and Influences 41
Culture of Organisations and Grafton Group 43
Strategic Direction and Corporate level strategy 44
Corporate Parent 44
The corporate parent as a Synergy manager
Module Name: Strategic Management 2
Lecturer: Mr Liam Bolger
Submission Date: 29th April, 2010
Word Count: 10,413
Table of Contents
Background of the company: 2
History of the company: 3
The Environment 7
PESTEL analysis 7
Political 7
Economic 7
Sociocultural 8
Ireland population by Age 2006 9
Technology 10
Environment 10
Legal 10
Key drivers for change 10
The Industry 11
Porters Five Forces analysis 11
Substitute products/services 12
Bargaining power of buyers 12
Bargaining power of suppliers 12
Rivalry/Competition 13
Opportunities and Threats 14
Opportunities identified 15
Threats identified 16
Financial Information Analysis 17
Analysis of Financial Reports 18
Liquidity Ratios 18
Profitability Ratios 20
Net Profit Margin per Segment 20
Earnings per share (EPS) 21
Analysis: 23
Liquidity: 23
Profitability: 24
Debt: 24
Return on Investment: 24
Borrowings: 25 problems with accessing credit. 25
Share Price 26
Source http:investor/graftongroupplc.com 27
Liquidity: Excellent 27
Financial Strength: Excellent 27
Profitability: Fair 27
Growth: 0 27
Source www.corporateinformation.com 27
Outlook for the Future 28
Rationalisation measures: 29
Plans for 2010: 29
Opportunities 2010: 29
Group Strengths 30
Weaknesses 31
Strategic Capability 31
Critical Success factors for customers (a sample of but not limited to): 33
Corporate Governance 35
Grafton Group’s Compliance with the Combined Code 36
The Board – who reports to whom? 37
Directors’ Independence and Board Balance 38
Performance of the Board 39
Corporate Social Responsibility – CSR and Ethics 39
Shareholder and Stakeholder Expectations and Influences 41
Culture of Organisations and Grafton Group 43
Strategic Direction and Corporate level strategy 44
Corporate Parent 44
The corporate parent as a Synergy manager
Bibliography: Bolger, Liam. ITB Lecturer, Strategic Management 2, 2009-2010 Cadbury, Sir Adrian UK, Commission Report: Corporate Governance 1992 Cannon (1992, p. 33) de Wit, Bob and Ron Meyer, 1998 Guidelines on Corporate Governance of State-Owned Enterprises, Page 37, 2005 Johnson, Gerry, Scholes, Kevan, Whittington, Richard – Exploring Corporate Strategy, 8th Edition, FT Prentice Hall, 2008 Date: 29th April, 2010