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Strategic contexts of Lafarge Tarmac

Discuss about the Essay for Business Management of Integrated Strategy Framework (ISF) .

Introduction

Considering the construction business, there are two main things, which are required to be dealt with viz., the risks involved with the business processes along with the professional skills and high costs (Franks et al. 2014). However, the global construction companies are committed to their respective works by finding an appropriate way such that to conduct the construction processes in an eco friendly and sustainable manner. It should be noted that the UK is one of the most finely constructed countries in the world where the main credit for the same goes to the professional skills and the capabilities that the construction companies impart in the country. The company well knew entire UK for its role in construction business.

Vision, objectives, and goals of the company

The mission of the company is to be the first choice for the building materials and services for its customers around the world by providing them with the essential needs for the development. Basic vision of the company is to remain sustainable in the market with dedication to implement safety on the construction sites. In addition, the values of the construction company are diversified relating to the construction business. The company aims at developing a strategy, which needs to be playing a significant aspect in the business cycle. According to the annual report of the company in 2013, the company had stated safety to be the utmost priority such that the company would be focusing more on the safety in the construction process even before the revenue and profits (Coscelli and Horrocks 2014). The objectives of the company are to protect the environment. The main vision of the company is to operate its business processes in such a way that it is enhanced in the future with the minimum effect in the environment.

Strategic planning issues

An effective strategic plan requires the manager to properly plan before executing the same. It is the responsibility of the manager to implement an effective strategy such that to enhance the construction process of the company in an eco friendly manner. This could be achieved by implementing the latest technology within the business process (Floros 2015). Lafarge Tarmac aims at implementing the safety of the environment within its construction process. The managers are also required to implement an effective strategy planning such that to meet with the demand and expectations of the customers.

Vision, Objectives, and Goals of the Company

Strategic thinking: Ansoff’s growth vector matrix

Products

Markets

 

Existing

New

Market penetration

Product development

Existing

  • Building reputation
  • value added chain 
  • Repositioning
  • Exposure to international market

New

Market development

Diversification

·         Use of digital technology

·          hosting global events

  • strategic  partnership
  • gaining competitive advantage

Table 1: Ansoff growth matrix

Source: Created by author

From the analysis of the above Ansoff matrix, it can be evident that the strategy of the Lafarge Tarmac Company is governed by four factors. The market penetration strategy deals in understanding the needs of the customers such that to grow its existing roots in the market. The main aim of the company is to provide the best products and services to its customers such that to meet with their expectations. The market development strategy would thus, enable the company to expand the business and explore on the global market.

Planning system:

Lafarge Tarmac, as a part of the wider growth strategy, has plans to acquire Tarmac Building products from Anglo Americans, which could help in increasing the foot printing of the company in the fast growing rejuvenated market like the construction of a house (Bon et al. 2013). During the stabilization and integration phases, the company needs to maintain an effective relationship with its customers (Mende et al. 2013). This approach would be enabling the company to continue its legacy in the construction sector by improving on the customer service in the future as well. The managers are required to be trained such that to conduct portfolio analysis for the construction company, which could enable them in developing appropriate strategies for enhancing the growth, rate of the firm in the rapidly changing market. The development of an appropriate strategic plan requires the manager to implement various approaches including the upside down, bottom up and top down approaches. The managers should be implementing a combination of these approaches in order to meet with the objectives of planning an effective strategy for the organization.

Appropriate tools for the growth share perspective of the organization

Directional policy matrix

The technique is significant in formulating an effective strategy by incorporating two most important elements. First element is the positioning of the company on the market. The position of the business in the market is also known as the capability if the market (Proctor 2014). This element helps in defining the strength of the company in the market. Lafarge Tarmac Company has very strong market recognition as it is one of the leading construct service companies in the UK. The second element is the positioning of the company in respective of its products in the market. Now use the matrix, Lafarge Tarmac can be considered as a very strong competitor in the construction sector. The products of the company are attractive for the customers. Thus, from the information being gathered from the matrix, it can be evident that Lafarge Tarmac is one of the strongest competitors in the construction industry and has every opportunity to grow in the competitive market. Thus, as per the directional policy metric, the managers are required to plan and implement an efficient strategy for facilitating the growth of the company in the market in the UK (Proctor 2014).

Issues involved in the Strategic Planning of Lafarge Tarmac

Space matrix

The matrix is one of the best techniques for reverse engineering. The matrices in quadrants that help in defining the strategies that are required be implemented by Lafarge Tarmac Company. The quadrants incorporated in the matrix are Aggressive, Defensive, Competitive, and Conservative (Tafti et al. 2013). The strategy of the company to be implemented depends on the nature of the market and the demand of the customers in the market. Lafarge Tarmac is one of the leading construction service provider in the UK market and hence, it need to be dominating in the market. Thus, the managers are required to implement an aggressive strategic plan for facilitating the growth of the company in the market.

SWOT analysis

Strengths

Lafarge Tarmac is the leading service provider for the construction sector in the UK. The company is best known for its quality consecution products including cement and ready concrete cement.

Weaknesses

Though, the company provides the best quality products in the market, it lacks the implementation of the latest technology in its products. Moreover, the company does not implement diversification of its products.

Opportunities

Green living is what the majority of population are opting for in the present modern world (Shiva 2016). The company has been planning to incorporate the lasted technology in the production of the construction products, which could use less carbon content and hence, would be causing less pollution in the environment in the future.

Threats

The only threat that the company is facing is the threat for the competitors in the market who are better versed with the utilization of the latest technology in the manufacturing o their products (Bull et al. 2016).

Value chain analysis

The value chain analysis model implements the analysis of the activities of Lafarge Tarmac, which is followed by the evaluation of values at each step in the production. The evaluation of the value is conducted at the maximum potential. The managers are then, required to identify if any social change is required in the production process on the basis of the value being evaluated in the value chain technique (Jaligo et al. 2016). Analysing the business process of Lafarge Tarmac, it can be evident that the inbound logistics is the primary activity, which act as the raw materials for the company. The logistics includes the processing of tons of limestone for the production of cement. Moreover, the logistics of the company is highly valuable for the company, which includes the manufacturing of quality products. Marketing and sales of the company are the secondary activities, which are valuable for the company, helping in enhancing the profitability in the future. The managers of the company are required to implement the strategies such that to enhance the productivity of the business processes involved with the manufacturing process (Jaligo et al. 2016). They are also required to implement an effective marketing strategy, which could be helpful in promoting the products in the market and increasing the growth and profitability of company in the future.

Strategic Thinking: Ansoff’s Growth Vector Matrix

Scenario planning

The scenario planning or scenario analysis is used by the organizations such that to ensure long term plans for the business (Stewart et al. 2013). The Lafarge Tarmac is a provider of services and products related to the construction sector, which aims at incorporating the latest technology within its business processes. Thus, the managers are required to plan and implement an effective business strategy based on the existing technology and materials for a longer term.

Product Position

The product positioning strategy is the technique, which incorporates the comparison of the products with the competitive substitutes in the market (Gao et al. 2013). As Lafarge Tarmac is the leading provider of the construction product and services and hence, should be having a high level of opportunity to enhance its growth and profitability in the market.

Strategic positioning: There are many tools, which could be used by the managers to evaluate the strategic positioning of the company in the market. One of the effective tools for evaluating the position of the company in the market is the Ansoff matrix.

Ansoff matrix

First task in the matrix includes the evaluation of the market penetration. Lafarge Tarmac has signed the deals with the Holcim Ltd, which is itself a leading company in the cement industry. Second is the matrix development, which is conducted in order to evaluate the ability of the company to explore and sustain in the new market. The third part of the matrix is the product development, which could be helping in the development of the existing products and launching of new products in the market. The fourth matrix is the diversification, which can be defined as the combination of all other three parts of the Ansoff matrix (Hussain et al. 2013).

PESTLE

Political

The political section includes the impact on the business performance of the company in case the UK government launches some new policy of taxation for the construction sector.

Economic

Economic environment is very crucial for Lafarge Tarmac as the economic condition of the country and demand of the customers during a specified time would be deciding on the sustainability and profitability of the company.

Social

The company has planned to incorporate the health and safety of the individuals working in its business environment. This is an important factor, which deals with the safety of the individuals by providing the same with the utmost priority,

Planning System

Technological

The technology is another important aspect, which could help the company in renovating its products in the market.

Environmental

The environment is yet another significant aspect, which requires the company to consider the same such that to minimise the effect of gather construction processes on the environment (Gillam and Siriwardena 2013).

Threat of the competition by new entrants

Lafarge Tarmac is the leading service provider of the construction products in the UK. Moreover, the merging of the company with the leading cement producer in the market has created a barrier for the new companies to enter into the merely.

Threat of the competition from existing companies

A stated earlier, the company has been the leading construction service provider in the market such that it is able to gain more market penetration than its competitors are.

Bargaining power of the customer

The company has been implementing various strategies and has planned to incorporate the latest technology within its manufacturing process such that to meet with the expectations of the customers.

Bargaining power of the suppliers

The company maintains a healthy relationship with the suppliers in order to get quality goods. This could help the company in manufacturing the best products in the market.

Rivalry

As the company is the leading company in the construction sector, it is obvious that the company has to experience serious competition by the existing companies in the market. However, owing to the unique strategic implementation, the company has been able to sustain in the market in a very shorter time (Anton 2015).

Stakeholders

Requirements

Objectives

Management Board

Guiding the proper implementation of the strategies

Facilitating the construction company with skillful resources

Managers

checking whether the strategic implementation is conducting properly

reducing down on the production costs associated with the construction project

Employees

Implementing the latest technology in the construction project

increasing the productivity of the construction company

Suppliers

Supplying quality raw materials including Limestone for the manufacturing of quality cement

Maximizing the productivity of the business

Table: Stakeholder analysis

Source: Created by author

Possible alternative strategies related to the substantial growth, limited growth for Lafarge

The substantive growth is also very successful way to grow in the market. Sustainable growth can be prove out be very beneficial for Lafarge Tarmac which would be helping in covering up the deficiencies in its business processes (Mitchelmore and Rowley 2013). Considering the construction business, there are two main things, which are required to be dealt with viz., the risks involved with the business processes along with the professional skills and high costs. However, the global construction companies are committed to their respective works by finding an appropriate way such that to conduct the construction processes in an eco friendly and sustainable manner. The market penetration strategy deals in understanding the needs of the customers such that to grow its existing roots in the market. The main aim of the company is to provide the best products and services to its customers such that to meet with their expectations. The market development strategy would thus, enable the company to expand the business and explore on the global market

Planning Techniques

Lafarge Tarmac, as a part of the wider growth strategy, has plans to acquire Tarmac Building products from Anglo Americans, which could help in increasing the foot printing of the company in the fast growing rejuvenated market like the construction of a house (Bon et al 2013). During the stabilization and integration phases, the company needs to maintain an effective relationship with its customers. This approach would be enabling the company to continue its legacy in the construction sector by improving on the customer service in the future as well. The managers are required to be trained such that to conduct portfolio analysis for the construction company, which could enable them in developing appropriate strategies for enhancing the growth, rate of the firm in the rapidly changing market (Hollensen 2015). The company, being the leader in the provision of quality products in the construction sector, it could grow sustainability in the market. The most commonly practiced techniques involved with the substantial growth are the merger an acquisitions. However, the main disadvantage of the substantial growth strategy is that there could arise a financial problem post the merging of two companies.

  1. Disinvestment strategy

The disinvestment strategy would be helping in enhancing the business performance of the company, which could help it to become more stable financially (García-Armesto et al. 2013). The company has been dealing with the production of wider range of products including cement, concrete, and bricks. However, the competition commission is requiring the company to be focusing on one of its products in order to impart more quality on the product. As a matter of consequence, the company has planned to focus on the cement by merging with the leading cement manufacturer, Holcim.

  1. Three strategies from the perspective of the competition commission and the shareholders

Market entry strategies: Market entry strategy for the company include its merging with the leading cement producer in the UK, Holcim. This alliance with the organization has helped the company to launch its products in the UK market (Holtbrügge and Baron 2013). However, the company should be looking forward to licensing for its branches such that to enhance its growth in the market.

Limited growth strategies: An effective strategic plan requires the manager to properly plan before executing the same. It is the responsibility of the manager to implement an effective strategy such that to enhance the construction process of the company in an eco friendly manner (Grant 2016). This could be achieved by implementing the latest technology within the business process. Lafarge Tarmac aims at implementing the growth strategies within its construction process. The managers are also required to implement an effective strategy planning such that to meet with the demand and expectations of the customers.

Produce an Organizational Audit for Lafarge Tarmac

Growth strategy: Lafarge Tarmac, as a part of the wider growth strategy, has plans to acquire Tarmac Building products from Anglo Americans, which could help in increasing the foot printing of the company in the fast growing rejuvenated market like the construction of a house. During the stabilization and integration phases, the company needs to maintain an effective relationship with its customers. This approach would be enabling the company to continue its legacy in the construction sector by improving on the customer service in the future as well. The managers are required to be trained such that to conduct portfolio analysis for the construction company, which could enable them in developing appropriate strategies for enhancing the growth, rate of the firm in the rapidly changing market (Grant 2016). The development of an appropriate strategic plan requires the manager to implement various approaches including the upside down, bottom up and top down approaches. The managers should be implementing a combination of these approaches in order to meet with the objectives of planning an effective strategy for the organization

  1. Most feasible strategy suitable for Lafarge

Strategy selection:

Lafarge Tarmac is the joint venture and has signed for merging with Holcim Ltd. and hence the best option for the organization would be to diversify in the countries other than the UK. In this sense, the diversification would be the best option to diversification would be the best option of growth for the company (Pachur and Galesic 2013). The diversification strategy would be helping in the growth of the company in the market but also gain the competitive advantage over the competitors. The strategy of diversification would be thus, highly acceptable for the Lafarge Tarmac.

Strategists and their responsibilities

Management Committee

The management committee is the most important stakeholder of the Lafarge Tarmac who would be responsible for implementing the strategies within the work culture of the company (Kerzner 2013). The main responsibility of the committee would be to implement the process determination. The committee would also be responsible for evaluating the improvement during the management of the controlling function.

Board of Directors

One of the most important strategies involved with the strategic implementation of the Lafarge Tarmac Company would be the Board of Directors (Knyazeva et al. 2013). The activities involved with the strategic implementation of the Directors would be the design the mission statements.

Marketing managers

The marketing managers are responsible for facilitating the strategic implementation with tin the workplace by conducting the environmental analysis (Lantos 2015). The analysis would be conducted by implementing the surveys and interviews. 

Strategic managers

The strategic managers would be responsible for the evaluating the competitive advantage of the company in the market (Hill et al. 2014). The managers would also be responsible for analyzing the market on the basis of the financial reports of the company. 

Strategy Practice model

There are three basic influences of the business operations involved with the strategy pricing model in Lafarge Tarmac includes the culture, system and structure of the company. The impact of the influences on the business operations has been described below as:

Strategy implementation

Culture

The culture as evident in the workplace environment of the company is influenced by the strategies being implemented in the workplace (Moghaddam and Russ 2015). The strategy of the company to provide the best quality products and services to its customers should be reflecting in the work culture and employees for getting the strategy to be oriented with one common objective.

Structure

The three aspects, which have a deep impact owing to the strategic implementation in the workplace, includes the decision making, communication and coordination among the different teams in Lafarge Tarmac. The employees would be required to be responsible for changing in a positive way for increasing the productivity of the company in the future (Black and Kim 2012).

System

The systems involved with the various business processes of the company would be having an impact owing to the implementation of the new strategies. This implementation would be responsible for creating a greater impact on the output of the organization. The strategies would also affect the employees and the integrating system of the company as well (Cina 2013).

The realization of the strategic plans should be implemented by implicating a proper communication of the strategy plan with the employees of the company.

Resource requirements to implement a new strategy

a.) Resource allocation:

Finance

As Lafarge Tarmac has been established by the venture between two market leaders of the construction industry, the assets of the organization are double the value of its liabilities. Thus, the financing would not be an issue for the company to implement the strategic implementation within the workplace. However, the financial manager is required to estimate the budget for the implementation of the implementation project within the specific timeline.

Human Resources

The human resource manager is required to manage the resources of the company by allocating the tasks according to the capabilities of the individuals. The main responsibility of the human resource manager would be to explore on the performance of the individual according to their potentials such that to ensure the successful implementation of the strategies.

Physical resources

Infrastructure and raw materials for the manufacturing process of the products are highly valuable assets of the company. The strategy of the company to manufacture quality construction products would depend on the quality of the limestone and other raw materials being supplied by the suppliers of the company.

The targets for achieving and monitoring the strategy of Lafarge Tarmac includes the tools of evaluation, theoretical standpoints and the targets to be evaluated in the strategic implementation process.

Benchmarking

The benchmarks for the monitoring of the given strategy within the work culture of the company would be evaluate the perforce of the entire business process by comparing the performance of the organization with the performance of entire construction solution providers in the industry.

SWOT analysis

The strategists are required to evaluate if the strategies being implemented in the work culture actually, help in increasing the strengths of the company. It the strategies are evaluated to be increasing the weaknesses of the company, then, the managers should not be continuing to implement the same within the business processes of the company.

KPIs (Key Performance Indicators)

Evaluation of the key processes for the organization would be helpful in finding out the effectiveness of the strategies as implemented in the business processes (Parmenter 2015).

References

Anton, R., 2015. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces, Diamond, PESTEL, and SWOT Analysis.

Black, B. and Kim, W., 2012. The effect of board structure on firm value: A multiple identification strategies approach using Korean data. Journal of Financial Economics, 104(1), pp.203-226.

Bon, J., Crocioni, P. and Sala, F., 2013. There is Always a First Time: Coordinated Effects via Vertical Structural Changes in Anglo/Lafarge.Lafarge (June 11, 2013).

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework. Ecosystem Services,17, pp.99-111.

Cina, C., 2013. Creating an effective customer satisfaction program. Journal of Consumer Marketing.

Coscelli, A. and Horrocks, A., 2014. GREAT BRITAIN & EUROPE: Making Markets Work Well:" E UK Market Investigations Regime. Competition Pol'y Int'l, 10, pp.24-346.

Floros, J.D., 2015. Academic Leadership through Strategic Planning.Academic Leadership in Higher Education: From the Top Down and the Bottom Up, p.161.

Franks, D.M., Davis, R., Bebbington, A.J., Ali, S.H., Kemp, D. and Scurrah, M., 2014. Conflict translates environmental and social risk into business costs. Proceedings of the National Academy of Sciences, 111(21), pp.7576-7581.

Gao, Y., Liu, Z., Song, S. and Zheng, J., 2013. Technological Capacity, Product Position, and Firm Competitiveness: An Empirical Analysis.Chinese economy, 46(1), pp.55-74.

García-Armesto, S., Campillo-Artero, C. and Bernal-Delgado, E., 2013. Disinvestment in the age of cost-cutting sound and fury. Tools for the Spanish National Health System. Health policy, 110(2), pp.180-185.

Gillam, S. and Siriwardena, A.N., 2013. Leadership and management for quality. Quality in primary care, 21(4), pp.253-259.

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Jaligot, R., Wilson, D.C., Cheeseman, C.R., Shaker, B. and Stretz, J., 2016. Applying value chain analysis to informal sector recycling: A case study of the Zabaleen. Resources, Conservation and Recycling, 114, pp.80-91.

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Lantos, G.P., 2015. Consumer behavior in action: Real-life applications for marketing managers. Routledge.

Mende, M., Bolton, R.N. and Bitner, M.J., 2013. Decoding customer-firm relationships: How attachment styles help explain customers' preferences for closeness, repurchase intentions, and changes in relationship breadth.Journal of Marketing Research, 50(1), pp.125-142.

Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs. Management Decision, 51(1), pp.83-96.

Moghaddam, H. and Russ, M., 2015. A Study on the Effect of Culture and Human and Social Capital on Entrepreneurial Strategies in Family Businesses in Iran. Quantitative Multidisciplinary Approaches in Human Capital and Asset Management, p.153.

Pachur, T. and Galesic, M., 2013. Strategy selection in risky choice: The impact of numeracy, affect, and cross‐cultural differences. Journal of Behavioral Decision Making, 26(3), pp.260-271.

Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons.

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