Kier group Research Paper
Kier group is one of the international companies based in the UK. In this report, various researchers will be collected and analysed based on this company. First Pestel model of analysis will be employed the Porter 5 forces model as a mode of analysis will be used to carry out the research. Secondly, the organization as a whole will be studied out. In completing such task SWOT analysis and Portfolio Analysis will best suit the case (Graham, 2015) Lastly is consolidating the personal strategy. If one intends to work in this company, there are some things to note before being hired. For this reason, one should critically analyse the company using the
Kier Group plc is one of the companies I intend to work with them if I could have an opportunity. Based on its feature, it is a construction company that offers construction services in the building as well as in civil engineering. It was found by y Jorgen Lotz and Olaf Kier, Danish engineers. This specialist task was part of a part of a pattern that eases the company advancement as it develops quickly in its operation. Some of its innovation included Civil engineering, techniques which are one of the bases of modern technology. The company’s buildings have a cooling tower which is long extending to about 300 feet high. It’s as well had complete power station and coastal works such as tanker berths, docks, and harbors. This company is essential to UK nation since it provides a source of employment. It is one of the best companies I wish to be working there (Best Companies 2007)
Porter’s Five Forces and Pestel analysis
Porter’s Five Forces is meant to assist the professionals including other managers in exploring five universal forces with determines the sharing of the power, Competition rivalry, Supply power, buyer power, substitution entry and new entry threat. On the other hand, PESTLE is intended to determine how the firm is affected factors such as environmental, political, socio-cultural, economic force, legal elements and advancement in technology (ELC International,1986).
Kier Group Plc PESTEL study is an essential tool which analyses the macro environment of the firm. Changes which may be experienced in the macro-environment aspect can have a direct impact on not only the organization itself, but it can as well affect the construction and materials manufactured. The factors affecting the macro-environment can impact the Porter Five Forces on the shaping approach and competitive setting. In this case, they affect individuals companies’ competitive advantage or the amount of the profit which the company may earn. Furthermore, PESTEL analysis is a driving tool which oversees the various challenges Kier Group Plc faces in a prevailing macro environment other than viable forces. For instants, a given industry may be earning a lot of profit having a steady growth curve however it cannot be suitable for Kier Group if it is located in an environment politically unstable
(Kier Group plc, 2012).
Organizational research is the other thing which is done before selecting the best company to work. In this case, SWOT analyses are employed
Strong order book since 20 16 the company have successfully secured more than 90% revenues which includes Construction and Services part. The organization’s contract momentum have a higher rating which consists of the benefit of the GBP2.7bn Mouchel order book and another most recent contract, for instances, GBP475m Smart Motorway. Working on great deals of contract means that the company is capable of running more significant projects (Kier s, n.d.).
Strategic alliances- Kier is considered to have a long-term partnership with public and private sector organizations to develop properties, mixed-use projects. The company’s Strategic alliances ensure that the company receives a continuous flow of business activities by securing profitable contracts where there is competitive procurement experienced in the current market(Company Profiles: (n.d.)).
Broad service portfolio: It is noticed that Kier provides an extensive ranges f portfolio of integrated services in this field of construction. As a result, the company is capable of holding large customers. It is, therefore, helps the company to offset the losses which may arise and to take up some risk in carrying out their business.
The geographical area where The Company is situated limits its operation and as a result, operates only in Uk. However, the company has other branches in the Middle East, Hong Kong where they contribute to its revenue is negligible. For this reason, UK dependence on this organization may affect the business whenever the country’s economy drops down.
(Environment Liaison Centre 2005).
There is Green and sustainable construction: The firm is capable of capitalizing on emerging trends in the durable and green construction sell mainly to drive the increase in profit. The Uk government has also been supporting the firm in various ways for instants they introduce buy to buy new home bonus scheme where $2% of company’s products are sold Such activities help boost the company’s operation and as a result, many employees are employed to work in the firm. Furthermore, the government has better strategies of in building infrastructures for example roads, water, and rails. Such projects help in manufacture and transportation of manufactured goods to the required destination (Environment Liaison Centre,2006).
In a profitable, useful firm, there are some threats which may be experienced in the business. One of the danger includes Shrinking supply of skilled workers: Currently, there is a growing shortage of skilled workers in UK state This shortage affects contractors works since most of them will not have experience individuals perform particular tasks. If for instant Kier is unable to attract, build up and retain capable workers, it is at a higher risk of losing its market in the sphere of commerce. Furthermore, the Company operates in a highly competitive market which includes Saudi Arabia. Such competitive market is working hard in producing better goods to compete with Kier Firm. Furthermore, Kier firm faces other challenges in that it should comply with federal state regulation concerning the emission of noxious gasses and noise pollution (Mark, A., & Morton, 2001).
Personal strategic Consolidation.
Using SPEAR model kier organization have been planning to strengthen its presence all over the world by winning contracts where they have managed to win a strategic alliance with other competitive companies in the core business products. It also has plans to work through a particular goal in widening the scope of the services that focus on cash and risk management which in the end run to increase the operational efficiency
If one intends to get employment in this company, I think many opportunities can be available. The reason is that even scholars studying in school will have a job opportunity in future times. One of the reasons for this is company’s vision of 2020. Kier aims at delivering double-digit on annual growth in its operational funds by the end of the 2020 Vision 2020 Kier aims to offer double-digit compound annual growth in such double size of operating profit will enable a wide range of services in the company. It means that large workforce will need to work in the professional task. According to (In Maduro, 2017) vision opens up room for the job seekers and young, educated generation.
Segment strategy is another policy which improves companies’ profitability. The segment plan is meant to extend its various services in the new sphere of the market which include care to residential homes as well as providing accommodation to students structured finance and PFI by advancing the free cash flow create from the Construction and Services segments.
The Segment strategy which deals with the services is also an essential factor to enhance efficiency in the company. Regarding this, the company intends to expand services which include power transmission, increasing telecommunication partnership with the private sectors and engaging with central government in ensuring that the company operates in a favourable environment. There is a definite outlook seen in the company progression in that the government is investing heavily in various utilities. In 2015 the company made some changes in their branding to Kier Business Services mainly to improve the business result and property management which is offered to local firms. The services provided also benefits police department, health, and education sector. Also, the acquisition has helped in improving its capability for the Uk nation and even in most parts of Middle East. As a result, the company extended its contracts’ for instants, the contracts for Northamptonshire County Council highways services of Kier’s local authority highways company was one of the companies to be awarded an extension of four years in completing their task with a worth of GBP200m, in JV. Such changes significantly affect the rate of employment positively, as the company expands job opportunities becomes available. Morever
In conclusion, the Kier Group Plc plays a vital role in the field of construction and building services. Such policy should be implemented to maintain company’s performance as well as ensuring that their product dominated the world market. The reason for this is to keep the excellent quality of the product. Good marketing should also be employed to cater for manufactured goods.
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Environment Liaison Centre (International). (2005). United Kingdom’s 3,000 largest companies. Oxford: ELC International.
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Mark, A., & Morton, A. D. (2001). Analysis of Kier company. Basingstoke, Hampshire: Palgrave.
In Maduro, M. P. (2017). Companies competition in Uk World press.