Video Case Study with Emma Hines, Tarmac
Tarmac one of the best and leading company that provides a sustainable building materials and construction solution. Tarmac has 150 years of experience and a good reputation around United Kingdom. They have worked across several projects since so many years and their employees are almost 8000 to 9000 which is in various departments and around 400+ strategically located sites, 120 Quarries, 74 Asphalt Plants, 100 Ready mix Concrete Plants, 22 Contracting offices and 3 Cement and Lime Plants. Their basic and primary type of business is by producing of aggregates, asphalt, ready-mix, concrete, cement and other products. But not only with this Tarmac also provides building contract service also. Now Tarmac has tied up with CRH the leading global construction company, so Tarmac can enter the global markets.
Tarmac’s new strategy is to ensure the importance of the upcoming future by adopting the approach of the whole life and their embedding sustainability in each and everything they do, from start to finish, from goods they purchase and their operation and logistics, but they also ensure the performance of their products in use and their reuse and recycle at the end of their life. Tarmac’s main and primary focus was to make sure the sustainability of the processes and thee materials which was caused by the increased awareness of the effect from climate change and furthermore, they started their new or they launched a new sustainable strategy which made them to get hold of the whole life cycle of the products in more sustainable and in a more effective way.
2. The Strategic Position of Tarmac:
The present position of Tarmac’s strategy is or the present strategic position. Tarmac has implemented new kinds of strategy’s like it is necessary to use analytical tools and techniques adequate for determination of the external environment, their strategic capabilities is in terms of resources and competences and cultural and ethical values as well as the stakeholders influence. Tarmac has established an External Sustainability Panel which is controlled by Lord Glentoran, who is to advise and challenge the business on its sustainability position and its strategic performance. This panel is to give the expert ideas or knowledge across the wide range of Tarmac’s sustainability issues that are more or the most important to the development of Tarmac and the stakeholders of Tarmac.
What is external environment?
External environment is nothing but the outer influence that makes a greater impact in the act of business and this must act or must react to keep up its flow of operations. The external environment is dived into two types:
• Micro environment
• Macro environment
Micro environment is the factors which influence the company directly with its operation.
Macro environment is the general influence of a business which typically do not have the control over it.
In construction business what is the basic things that we get in mind one is the noise made while construction and the another is the risks in construction with high cost and the professional skills. There are few construction companies around the world where they are very much focused in working in a sustainable and in friendly environment, so as per this United Kingdom is one of the best and finest country to work at macro level, and the construction companies in UK are also great at their working style and the very quick in it. And Lafarge Tarmac is one of those companies in UK and this company is following a very much simple strategic play and are following the same direction to achieve in the same manner and are working hard to remove any kind of difficulty that comes in their way. Tarmac is the construction company which is commonly known by many peoples in and around United Kingdom. Tarmac has joined hands with CRH to be the Ultimate Solution company in the global market in the construction sector. (Tarmac, 2016)
2.1 PESTLE analysis in macro environment.
What is PESTLE analysis?
PESTLE analysis is a tool that is helping us to find out the Political, Economic, Socio-Cultural, and Technological change in the business environment. And helps anyone to know the bigger picture of force that change to exposed to and from this and takes advantage of the opportunities that they present.
The political regulations of the UK government are clearly stated that the government has been pushing the companies to provide less people with a less expensive houses within the public sector and the private sector from that we can see that the political issue will rise in the terms of the affordable prices to the people. The UK government can’t allow itself to be emphatic towards the construction industry because of the very large terms of revenue reproduction and employment in UK. Through PEI or the private partnerships, the UK government is involved in most of the housing projects because the main feature is to get financing, building or operating for those projects so the political implications of choosing partners or for the selection of the projects can be done. Due to this political implication some of the projects can be delayed and some can be stopped for the permissions that has to been taken.
The economic deals with the factors which include the GDP/GNP, the inflation, the interest rates, exchange rates, the unemployment figures, the wage and price controls the fiscal and monetary policy. The availability of raw materials and the energy resources, the condition of infrastructure and the distribution networks and the changing nature of global competition may also be relevant. As per these factors the construction industry sector has made nearly 164 billion British pounds in the 2017, which is more than the value of which was recorded in the year 2000. And it is an exponential increase, so we can see that Tarmac will be the future of bigger scope in the construction sector. (Anon., 2016)
Tarmac in the socio-culture aspect has said in the video the main problem is that the employees in the company are struggling to get adapted to the change to the new culture of the bigger company like CRH. Social environment plays a major role in the business where the society are there consumers. As the matter of fact Tarmac must consider the social environment in UK because the society is the major factor of business which should be considered or there will be no more customers who will be interested in Tarmac.
As per technologies it is the most crucial and important rule or a main aspect that must be considered in the construction industry because the increase in the demand of better energy efficiency in the buildings which gives Tarmac the major investment and in last few years there are technological regulations which affect the construction industry, ever as especially in buildings. There are increase on the progress constantly, the demands are made for the faster process of developing buildings and the there are increase in the different styles in infrastructure which is been rising. So, the construction companies must invest new methods of developing that can satisfy the customers every time. As per the PESTLE analysis it is the powerful tool for the external environment of which it is been changing over the time and the needs of the constant attention, these factors are based on the perception and the assumptions of the people around United Kingdom and so they are maintaining a barrier to give the clear picture of the business and this PESTLE analysis in some cases it in not enough because the environment factors can affect the business.
As per Tarmac their sustainability is all about the secured long-term success and not only as a business, but it is for their customers, the employees and the communities in which they work, so this means continually improving the environment, the social and economic conditions all over the time. For a better result for the company Tarmac keeps a track of the positives and the negatives impacts of the business because they want to know how the products or goods that they buy or transport or the quality of the goods which are used for the construction process and while using them what happens to them when they are not at all required. And they accept them by adopting the whole life cycle approach which can continually improve the sustainability and rethink their business, products and their services, and develop an innovative idea that can satisfy the customers, and which could help them to create sustainable buildings and infrastructures. Tarmac’s key themes are:
People, Planet, Performance and Solutions.
This analysis deals with four key factors and they are the strength of the company, the weakness, opportunities and the threats. The strength of Tarmac is one of the market leaders in the cement industry worldwide. Tarmac operates over 50 countries, so it makes Tarmac as one of the global leaders in construction and real estate business, it has a strong supply of the goods which is been operating effectively. There are more than 60,000+ employees in Tarmac. The product portfolio includes Cement, Construction aggregates, asphalt production and concrete. Reshuffling in the top management has resulted in more focused and strategic business approach, and consistently improving financial trends have boosted the business operations. Tarmac company has done major innovations and made landmark monuments across the world in places like Greece, South Korea and etc… Tarmac’s internal and the external environment by the SWOT analysis can have limitation if preparation for analysis isn’t conducted within the company. I feel that things which is been given in the company’s website might be true, but I don’t think it always because sometimes any strength can become a weakness and any weakness can become the strength for the company, but I am offending it but just placing my opinion in front. If it is wrong I would like to correct myself.
‘TO BE OUR CUSTOMERS’ is the vision of Tarmac. They want to be the leading industry in the global markets, so they prefer the of sustainable solutions in the construction industry. They ensure that the customers are well understood and try to meet the needs of their customers and their clients for a sustainable embedding sustainability into the business, by working to continuously improve the environment, social and economic performance of their products and services, throughout their life cycle Solutions Supporting our customers by developing innovative products, services and solutions that add value and make a positive contribution to the whole life performance of buildings, infrastructure and the many other applications in which they are used. Tarmac stated in the “Code of Conduct” their position about company’s diversity and relationship with their stakeholders and defined values which need to be followed and they are:
We always put safety and health first of the employees and the customers
Commitment to our customers:
We commit to delivering value for our customers every day.
Passionate about business:
We are passionate about our business, set ambitious targets and drive to exceed them.
Fast and Flexible:
We act with an appropriate balance of speed and rigor
We are all one team
Trust and Respect:
We extend and earn trust and respect.
As per my knowledge in this company’s site they are been taking the leadership has a serious value and pride and are working in a very intense manner. They have different superior employees to each department and are maintaining them to make sure that the work is going good and senior staffs to make the other employees to teach them to adopt to any new situation, change and the support for the people. “Managers are the people who do things right and leaders are people who do the right thing. The difference may be summarized as activities of vision and judgement-effectiveness versus activities of mastering routines-efficiency”
Bennis and Nanus are stating that the “Strategies for taking change” means that manager will be the persons who make things right, but leaders are the people who make the right thing. We can see that Emma Hines is the leader and she illustrates that she has always been a part of the team and she has been having many commendations of the people who always mention about effectiveness and she wants to make Tarmac a best place to choose and in the video she has said that working with the team is for the sustainability, this gives more value.
Emails, social medias and online networking for sharing the stories and such, it is also a very good platform to share your ideas and other people can suggest according to your ideas. Tarmac has a certain department which receives the comments and feedbacks and has discussions with the people working in Tarmac to see is the business is in a right path or should the company have some changes. CRH company are helping the Tarmac through external communication by sending newsletters.
In this section I am going to tell about some issues that has to be got on track and I think these recommendations can be used as a necessary information for the betterment choice:
When we see as per the PESTLE analysis that states in the political section the first thing is the Affordable houses
Affordable housing – As per the analysis of the SWOT and the PESTLE shows that the UK government is been stating the construction companies for providing the people with a less and affordable price houses for the people and I feel that Tarmac is still off track with the government rules so Tarmac needs to prefer the government’s PESTLE and should focus on the prices of the house. To develop the strategy changes in the leadership style, which need to exist. Company’s approach towards employees should focus on the expurgated cost in every aspect of the development process.
Customized housing – As the Tarmac must think of building such environments the needs to be more sustainable and if there is any profits or benefits from the contribution that the construction industry in making to the long-term success of the UK economy while tackling the challenges passed to our environment and the society which we live in. and the company can set a long term commitment for improve the environmental performance of all the buildings, across the cycle and beyond the zero-carbon. This will create a long-term incentives and policies certainly to UK construction sector to invest in any related R&D and innovation which are tax free, Tarmac can pursue this idea, this can give a advantage to the business contrary to competition and also it increase the entry for new candidates and sympathy from their customers and thus prevent new substitutes to change their product. This idea can get more new customers, so Tarmac has to thick of changing the leadership strategy in the business.
Sustainable cities: Tarmac should have to pursue this idea further of building future sustainable environment. Tarmac is one of the leading brands around UK, as per the survey. Building future cities is not a play it needs more man power and resources, and shareholders they will be needing a great leader as a company. As the government is encouraging the companies for exploitation of PEI and forcing sustainability strategy, Tarmac need to use these resources. Tarmac is providing a good sustainability for the whole life cycle of the products as prevention against need for resources in the future, but more changes need to be done. The technology is been on the rising hand of exponential and it will be further continuing, so I hope future cities will be with the best use of the technologies for providing more faster and upgraded solution as it can be seen from the SWOT analysis.
Tarmac must focus on the cost strategy as it was mentioned earlier some of the competition companies are following the cost strategy. In this environment, it is necessary for the company to fellow the competition and counter the attacks of strategies that the other companies execute. Tarmac’s strategy allows to competition and in the increase in the market shares. There are three factors that need to be satisfied and it the value chain or the viable part of finances. (Whittington, 2008)
Tarmac can satisfy two conditions like the distinct value chain and they need to provide a faster and a good sustainable housing and distinct part of the value chain as they can have a different process of manufacturing like having 3d print, the circular economy based on which they are providing a sustainable material and they have already invested upon the 3d printing which lowers the cost of development and the speed of construction. This proposed strategy will be having a wider impact on the company’s direction because they need to change the way of approach to the business processes.
Focusing on the differentiation strategy can be implemented for this case. There are strategies having the similar factor of success which we previously mentioned. The difference is the strategy that Tarmac is focusing on the targeted customers to whom they can provide a premium price for the product, indeed the product is having sustainable materials and costumed innovation based on the customers choice. This can a less impact on the business