Evaluate the Strategic Vision of Crh Plc. Who Are Its Key Stakeholder Groups and How Well Is Each Served by the Mission and Vision?

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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…show more content…
CRH have been awarded for their environmental and safety practices, this is ‘responsible’ and minimises interference by regulating bodies. Opportunities and threats highlighted looking at Porter’s five forces framework – Appendix 2 Economies of scale only beneficial within around 150km radius as transport costs exceed weight to value ratio. To combat the problem CRH has expanded in order to reach a wider market by way of acquisitions and mergers. The existing customers they receive directly increase market share, CRH can then proceed to dominate the potential market through each output. This was a quick way to rapidly expand and reach a larger market share, enabling them to be one of the international leaders in the industry. Threat of entry to the mature markets is low, with slow market growth the market leaders are directly competing for market share. Acquisition led expansion reduces competition, gains market share and gives CRH access to the existing supply and distribution channels from the previous operator. Competitive success factors are also maximised through the ability to provide personal service, local contacts, close operational control and ability to react to change. This is possible for CRH on a global scale due to their transnational structure (appendix 4), giving high degree of individual responsibility to operational managers while

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