Video Case Study with Emma Hines, Tarmac
Tarmac one of the best and leading company that provides a sustainable building material’s 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 ha 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 is 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.
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.