Corporate Parenting and Value Creation for CRH

Corporate parents always aim to enhance their business value by implementing innovative corporate strategies and policies. Corporate parent signifies the responsibility that the entire organization has to take for controlling the entire process of business (Kruehler, Pidun and Rubner 2012). Personals associated with the services are responsible for creating business value. The primary ways on how the corporate parents can create business values are as follows:

• Making the structure of business better
• Using acquisition model for enhancing the number of resources
• Enhancing the financial strength of the organization
• Rendering a dynamic pace on capital management

CRH is primarily known as top two leading global diversified building material company occupying predominant in different multinational countries. Headquartered in Dublin this very specific organization provides building construction materials. CRH has established the business process by merging with two Irish public companies. As per the current business scenario, CRH is considered as one of the most recognizable building material companies. In order to create effective business value the portfolio manager and synergy manager have to take major responsibilities (Johnson 2016). The primary responsibility of portfolio manager is to create and manage investment allocation for the private clients. By following a predetermined investment strategy the portfolio manager focuses to meet the needs and demands of clients.

CRH primary aims to make the structure of business very much systematic so that the clients do not have to wait for a long time while receiving the services. People from various geographical backgrounds are associated with the business process off CRH. Around 500 managers are recruited within the business process for maintaining the operation process. The portfolio manager as the representative of corporate parent tends to control the process of investment plan (Mahnke et al. 2012). CRH tends to focus on providing superior quality of products along with maintaining effective services. As a result, customers from different geographical backgrounds and attitudes do not have to face difficulties in dealing with the service providers of CRH.

The synergy manager primarily focuses on controlling the customizable alert notification system. With the emergence of new technology, the entire operation process of a business organization is highly dependent on surveillance process. By using software, synergy manager is able to maintain CRHonological database about the clients’ demands. As per the instruction provided by synergy manager, the employees have to provide effective services to the customers (Williamson et al. 2013). In order to render financial growth as well as business value the organization should know on how to satisfy the needs and demands of the customers. By maintaining effective communication with the customers, the service providers have to gain organizational image and reputation. Synergy manager primarily aims to render an effective business image by controlling the performance of employees along with fulfilling customers’ demand. 

CRH Portfolio Matrix Analysis

From the perspective of business industry, strategic business unit primarily focuses on product offering and market segmentation.  Based on the needs and demands of target group as per geographic, demographic and psychographic segmentation CRH has designed their long term strategic planning where to invest money for developing products and services (Campbell et al. 2014). Portfolio matrix is constituted with four major categories based on their market growth and market share. CRH being one of the most prestigious brands all over the World in providing building materials has €20bn stock market valuation as per 2015. With the help of portfolio matrix CRH has made an effective estimation about their growth opportunities by reviewing the portfolio of products and services.

Dogs

This particular portfolio matrix signifies that products are in low growth or market share. Marble and Carpet are the two products provided by CRH which has immense low market growth in the construction industry. People belonging to various geographical backgrounds have different psychological approach (Dixon et al. 2015). Therefore, these two products did not get much priority for every kind of customers. In addition, only premium customers are able to afford marble or carpet for enhancing the show of their houses. Therefore, these very specific products of CRH have low market growth.

Question marks

This particular category dignifies that the products are of high growth of market with low market share.   Wall covering, wallpaper, wall print materials have already raised a huge craze in the market. CRH however is not able to increase their market share on those particular products (Fitzpatrick and Williams 2017). However, in order to create business value as well as reputation of the organization in the global market, CRH can increase their market share.

Stars

In this very specific category, products with high growth markets with high market share are included. Plaster and Cement is the core product of CRH due to which this particular organization has received immense image and reputation. With the help of these two core products CRH has increased their market valuation. People from different geographical markets are willing to purchase their products and services from service providers (Alia et al. 2012). By maintaining low price, cost CRH has grabbed the attention of large number of customers in the market.

Cash Flow

This specific category evaluates the products on low growth of market with high market share. Ceramic tile, mosaic materials are not very prosperous in terms of market growth opportunity. Very specific group of target customers are able to purchase this particular product due to high cost (Hirawan and Toha 2013). However, CRH is endowed with good market share on these particular products. As a result, business managers have to face immense challenges in rendering sufficient profit from these products due to limited target market.

Recent Merger and Acquisition by CRH and Shareholder Reaction

By evaluating these four categories of portfolio matrix, it can be concluded that CRH would have to make more effective strategic plan. Based on these strategic plan and policy the organization would like to focus on maintaining quality of those products that are on high demand in the construction industry (Gurkov 2014).

In the year 2015, CRH has made the decision of merging their business with two largest industry players like Lafarage and Holcim. Lafarage was from the initial stage famous for cement and contraction aggravates. Headquartered in France this very specific company has international image and reputation for effective customer services. On the other hand, Holcim is a Swiss based company especially famous for global building materials. These two companies are already well-known for the product quality and service process in the international market (Loeser, Erek and Zarnekow 2013). After making an effective acquisition with Lafarage and Holcim, CRH has increased their assets value of €6.5 bn. The primary resources that CRH has increased after maintaining their merging policy include human resource, financial resource and technological resources. 

Human resource

As per the current needs of customers, the workforce strength of CRH alone was not possible to fulfill needs and demands of customers. In this situation, the organizational manager had to recruit more employees within services. While appointing the employees towards services the business organization like CRH would have to invest large amount of money for fulfilling the employee wages. In order to avoid this particular issue, CRH human resource managers have decided to make the merger plan with two recognizable business organization with the similar industry. As a result, the business experts would be able to accumulate the resources from these companies (Fulford 2013). After making the acquisition plan, the business experts have maintained the entire business process within control. Employees are efficient enough to maintain an effective balance between supply and demand (Landau and Bock 2013). In addition, CRH has now recruited large number of employees in the customer services. They are very efficient in delivering the products within proper time. As a result, customers have showed their level of satisfaction in using the products and services of CRH.

Financial Resource

In order to render market growth, product diversity as well as proper services every business organization should have economic strength. Based on economic strength the organization is able to recruit large number of employees towards the services. In addition, in order to increase market share on the products like carpet, tiles, mosaic and so on the business experts need to have sufficient financial resources (Ito and Souissi 2012). However, after the merge with Lafarage and Holcim, CRH has achieved immense financial support for rendering product diversity. At the same time, the organization has recruited large number of employees as well base on which the customers are able to receive the services within proper time. After being accumulated with the financial services, the organization had developed their hierarchical structure as well for controlling the business more systematically and effectively (Abdullah and Mehmood 2013). People belonging to various geographical backgrounds and attitudes would not have to face challenges in receiving the services within proper time.

Key Issues for Diversified Organizations Expanding into New Markets and Product Portfolios

Technological resources:

In order to maintain the entire process of business systematically, the business experts have to render advanced technology within services (Okamoto et al. 2013). By rendering advanced technology the customer service providers of CRH can collect direct feedback from customers about the quality of their products and services. CRH alone was not able to implement advanced technology in every department of organization. After making merge with Lafarage and Holcim the business experts have implemented advanced technology within every single department. As a result, it is very much beneficial for the business experts in maintaining CRHonological data record.   

Every business organization tends to follow a particular ethics, beliefs and values. Employees have to get accustomed with the organizational culture (Ciabuschi, Forsgren and Martín 2017). CRH intended to maintain a participative form of management style at the workplace while maintaining strategies. Employees were very much liberal in sharing their own decision regarding business policies and strategies. After the plan of acquisition, CRH has to face diversified organizational culture and policy. As a result, the business experts have to face immense challenges in being accustomed with the service method. The primary issues that CRH had to face after implementing diversified organizations are as follows:

Issues in work culture:

Work culture varies from one particular organization to another. The business experts of CRH after facing effective issues and challenges after merging their business process with Lafarage and Holcim have faced immense difficulties in providing effective services. As per the ethical belief of CRH, the managers are very much comfortable in maintaining participative form of leadership at the workplace. As a result, the employees get liberty in sharing their views and thoughts with the managers. After business acquisition, the employees did not get enough opportunity to share the thoughts and views (Hotz and Pantano 2015). Managers intended to follow autocratic form of leadership style by imposing their own decision on employees. As a result, the employees did not get enough motivation for providing good services. 

Communication issue:

After business acquisition employees have to deal with the people of various cultural backgrounds and attitudes at the workplace. Language is one of the most effective issue due to which employees cannot share their thoughts and ideas with each other. In order to run a business organization in a construction industry the business experts have to maintain effective interaction with each other while providing services (Decreton et al. 2017). Language is one of the most effective reasons due to which the employees fail to maintain effective interaction with each other. As a result, customer service is getting affected immensely.  

Personal Development and Assessment of Soft Skills for Employability

Psychological issues:

Employees associated with CRH process are from various psychological backgrounds and attitudes. Business experts while making an effective strategic decision in reaching the future goal have to face challenges (Elmore and Gaylord-Harden 2013). Employees tend to provide different point off views due to which managers have to face challenges in making a proper and effective strategic decision. As a result, it hampers the rhythmic flow of business.

Issues in operating business:

After merging with Lafarage and Holcim, CRH has become very much dependent on the advancement of technology. It has been observed that not every business expert of CRH was very much efficient with the advancement of technology. As a result, they had to face immense issues in operating computers and software (Hotz and Pantano 2015). Being unable to maintain appropriate database about organizational performances CRH employees failed to meet customers’ needs and demands.  This particular issue left a major impact in reducing the success of business in global market. Being unable to connect with the service providers, the customers have provided dissatisfaction about the services of CRH.

However, in order to overcome these kinds of issues CRH would have to make an effective training and development session. With the help of an effective training and development session, employees would be able to enhance their professional skill and competency. In addition, training on communication skill would be very much effective for those employees who have language barrier. An effective training enables the employees for maintaining effective coordination with each other. They would not have to face issues in exchanging necessary views and thoughts (Abdullah and Mehmood 2013). As a result, both the customers as well as service providers would get equal benefits and facilities. 

In order to evaluate a brief overview about my personal development on employability skill I would have to use Kolb’s Learning Cycle. This very specific theory is constituted with four major parts including experience, reflect, conceptualize and plan or experimentation. As an individual professional, I have gathered immense experience on how to make proper decision in order to meet the needs and demands of the customers. I have gone through the people of various psychological as well as cultural backgrounds and attitudes. After facing business crisis, I have gathered knowledge on how to overcome any kind of sudden crisis. While reflecting my own experience I got to know on how I should implement innovative strategies and policies at my workplace that could help me in overcoming any kind of challenges.

While communicating with the professionals from other cultural backgrounds I have faced immense difficulties in exchanging my thoughts and views. As a result, I failed to deliver proper services within time. However, while conceptualizing I would say that these difficult challenges have given me effective learning experience. I got to know on how to meet the needs and demands of customers. I have learnt to control my emotion at the workplace while facing difficulties. As a result, professional competency has been developed with the flow of time. In the last part of planning, I have determined to identify some of my major drawbacks of mine in quest of improving skills. I should give more focus in increasing my communication skill with the people of other cultural backgrounds. As a result, I can exchange my thoughts and views with them. On the other hand, effective communication would help me in providing more productive group work from the next time.   

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