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Their operations can be majorly categorized across five units: 1. the organization achieves 48% of total revenues in New Zealand in Financial year 2013-2014. Residential & Land Developments They are the biggest organization which manufacture and distribute infra and building material in Australasia. infra and residential constructs in New Zealand and the South region of Pacific. Construction 4. Wikipedia: https://en. In terms of business units the organization has been operating. Their major strategy is to lever their operational capabilities and all the opportunities where growth is possible. The building product material division generates 15% of total revenue. Fletcher Building is the one among the biggest industry giants in New Zealand which has a market cap of over $7bn. Financial Information Discussing about how fletcher building ltd is geographical diversification. 4% of total revenues from Europe.000 employees across the globe and around 34 business units are operating under the same umbrella. They are based in New Zealand majorly operates in New Zealand and Australia. The organization has been involved in the construction & infra business since 1909.Q. Building products & materials 2. Provide a brief introduction of the organisation (existing or drawn from a scenario). focus and scope of its business . 5% of total revenues from North America. Distribution 5. The construction business division garners 15% of total revenue as per reported in financial year 2014-2015. also have their presence in more than 40 countries. the organization garners major of its revenue from its distribution business which was (25%) in Financial Year 2013-2014.wikipedia. 39% of total revenues from Australia. They are involved in some of the biggest projects in the region such as the NZD2bn Waterview Connection project which is the biggest road project in New Zealand.bmiresearch. The laminates and panels business unit generates 20% of its total revenue. Total word count: 325 Reference: 1. 3% of total revenues from Asia and the remaining 1% of total revenues from the rest of the globe.1. The Construction unit of Fletcher building is involved in commercial article=1266134&advanced_search=1&matches=152&page=1&position=4&keyword=fletcher %20building 2. in a manner that clearly outlines the overall nature. the Laminates and Panels division 3. They have 20. Business monitor online: https://bmo. The infra material business generates 25% of its total revenue.

Reference: .  Customers: concentrating on conveying what our clients esteem and making a difference for them to succeed. board and surface products. As far as focused development openings. developing leadership & capability skills and making a connected with. Infra Products. They are involved in manufacturing of concrete and cement material products.  Efficiency: utilizing our scale and ability to enhance the viability of their operations and drive down expenses  Profitable Growth: contributing where they can succeed. the organization has expressed that it will keep on focusing on its center markets . It stands for ensuring safety so that going home safe every day is guaranteed. Fletcher Building has strip and shut a few of its unfruitful organizations and is as of now bringing about cost reserve funds. bars and wire rods. Fletcher Building have held a solid position in the upstream piece of development section. and in addition in conveyance'. This program has been gaining noteworthy ground since its commencement in 2013. Present an analysis which identifies and distinguishes the organisational strategic hierarchy of the organisation in terms of the following levels of strategy and interrelationships between these levels? Corporate Strategy Fletcher building ltd being the greatest maker and wholesaler of infra and building material items in the Australasia area. Fletcher Building has four vital strategic needs that are being executed over each level of the association. Laminates & Panels. the manufacturing of reinforced steel. plumbing jobs and bathroom in New Zealand and Australia and in the rest of the region. especially in Residential. The organization will even now consider extending its nearness in New Zealand and Australia through infill and adjoining acquisitions.Distributions.Q. the organization will concentrate on developing naturally. called as the FBUnite business transformation programme. The Distribution business unit is into delivering supplies for building. however vast scale acquisitions in both nations are 'not a need'. Concerning extension designs past Australia and New Zealand. The Building Products Business units is involved in the manufacturing and distributing of plaster board. This is the thing that gives them a key upper hand in that segment. Development and Distribution. coating steel and aluminium products and materials. insulating material. Business Strategy Four out of its five major business units . The Infra Products business unit is into raw materials extraction. as observed with the expansion in working edge to a six-year high.New Zealand and Australia . Building Products are in manufacturing. The operating business units provide products and services that encompasses all of the important and vital raw ingredients and supplies for the building sector in the region. superior workforce over the whole business.2. Functional Strategy To leverage upon improving its operational efficiency. the organization is trying to make specific ventures to extend its nearness in the worldwide forming a business over the coming years.with 'the target of developing and keeping up positions in building and development items. the organization has brought in restructuring plan. These are:  People: making Fletcher Building a best place to work for. The Laminates & Panels Business units produces decorative laminates.1. To do that.

com/investor-centre/corporate-governance/ Business monitor review https://bmo. They are focused on making reasonable incentive for their key partners and conveying solid income development and top quartile shareholder returns. the business and the groups they work article=1220690&advanced_search=1&matches=152&page=1&position=15&keyword=fletcher %20building Question 1. Political environment for fletcher industries has remained conducive and is expected to remain so in coming years . that is energetic & passionate about their clients.htm Q 2. examine the organisation external macro environment for its impact on business situation. Their yearning is to run the best building items and construction organizations.2 on each of the following: Their values. Government has increased the spending in the construction and infra sector. frameworks and procedures are intended to guarantee that Fletcher Building meets best practice principles of administration.1: By applying at least one analytical tool or a combination of tools. connections.fletcherbuilding. who bring an abundance of experience and comprehension.Fletcher buildings official website http://www. Management decision-making style The Management team is guided by the Directors of the Board.fletcherbuilding. groups and shareholders Organisation’s Business Conduct. Your discussion must include each of the following macro environment factors: Political: There has increasing trend in the buying by government the construction structure. by adopting a policy of customer first to guarantee that their organizations are worth more together than they are separated.3 Present an analysis that provides implications of the organisational strategic hierarchical framework that you have discussed in Q beliefs and practices are formed by a long history of useful and continuing connections inside their business. Government’s support for the growth of the sector has been increasing since the past 10 years. Consolidating business divisions will help them to achieve this while at the same time will improve their performance as they attempt to leverage on growth opportunities present in the market. guaranteeing all choices and decisions are taken with utmost care keeping in mind long term corporate vision and mission Reference: Fletcher buildings official website http://www. and with their numerous clients. Fletcher Building's structure of guidelines. Organisation’s business conduct: They want to make Fletcher Building accessible to do business with for their customers. sustainability and future Statement by Fletcher Building chief executive officer Mark Adamson http://www. their community. Fletcher Building is driven by an accomplished and administration group.scoop.

the business is affected by constraints in capacity. Legal infrastructure is well established in New Zealand. Industry size. the industry's yield esteem ascended at a compound yearly development rate (CAGR) of 6. in spite of the fact that this is required to decelerate somewhat to 6. it becomes essential for organizations like to adapt to changing technological landscape around it. Fletcher buildings have invested into digital transformation stream. exchange rate have a major impact on the business. Reference: Business monitor review https://bmo. The objective of the lab is to ensure that business divisions work on smaller. sustainability and future outlook. digital projects and moving forward if they can add value to customer. migrants policy. as per expectations.0%.60% amid the survey time frame (2011–2015). Major drivers for the industry is increased use of new technologies. During the time of economic downturns.cio. trends and growth: Fletcher Building revenue increased by 3% from NZD 8.Legal: The kind of sector fletcher industries operates in. In genuine terms. Changing labour laws. Globalisation: With diminishing boundaries across the globe. “Unprecedented growth” is a phenomena which is being seen in few of the regions and is expected to continue over the coming 10 years. examine the organisation external micro environment for its impact on the business situation. Fletcher building having core business functions across more than 50-plus business divisions across the globe. They have established a Digital Innovation Lab. Fletcher building’s New Zealand revenue recorded an increase by 10%. The government of New Zealand thus becomes a key stakeholder in this. it becomes very vital for it to keep track of legal environment for the grand scale of investment it has put it. There is very clearly defined guidelines for Different materials.07% over the forecasted time period. Technological: With rapidly changing technology and upcoming innovations in the field.6billion for the year to June 2015. Economic: The industry is characterized by heavy volatility in terms of unemployment and gross domestic product as compared to other sectors in new article=1220690&advanced_search=1&matches=152&page=1&position=15&keyword=fletcher %20building Newspaper article Q 2. There is stringent requirement to follow New Zealand health and safety laws on the worksite.4billion to NZD 8.2 By applying at least one analytical tool or combination of tools. revenue generated from Australia decreased building methods and building standards to forward with construction and buildings. employment is shed away and is moved to some other sectors. rapid growth in population and urbanization. Competition: . Your discussion must include each of the following micro environment factors: Industry drivers: New Zealand is in the having one of the biggest construction boom in last 40 years. Full-year profit fell 20% after NZD150mn in one-off charges. is prone to abruptions in global environment. the threat of entrants grows day by day.bmiresearch. while the remaining of the world increased by 3% and. Whenever comes an economic upswing.

contractors and manufacturers have to work together. with a predicted peak value of $19. contractors and suppliers  Highly capital intensive scenario  The industry in which it operates is very volatile. ambiguous and filled with uncertainty  Procurement of inputs such as skilled labour force is difficult to obtain Substitutes: Strong  New and developing imaginative techniques and procedures inside development industry. sub .  The new innovative methods are available at a lower cost than conventional methods  new consultants might get appointed once project gets completed as low switching costs Suppliers Bargaining Power: Weak  Consolidation of value chain players at the bottom of value chain are integrating backwards into supplier  Construction materials are easily accessible from many suppliers  For a project to be successful.  Non-residential building might have a significant growth.  d.The major competitors for fletcher building limited are BORAL ltd.  Low switching costs is observed as getting new projects stands for new consultants.  It is forecasted for Further growth of 12% per annum in next two years. CSR ltdand LafargeHolcim Ltd inn new Zealand Market Potential:  The total value of all construction has increased between 9% and 12% per annum over each of the past three years. ·New Entrants: Weak  The lowest bid wins most since the clients in the field are not very loyal. It will result in construction activities to increase by more than 10% per annum for around 3 and half years which is eighteen months longer than in previous booms. residential and leisure. Approx 67. with an estimated maxima of $17. all the players like Contractors.5 billion per annum in 2017.000 new homes are estimated to be built across nation in the coming five years between 2015 and 2019.2 billion per annum in 2016 Porter’s Five force analysis Industry Competitors: Strong There has been a decrease in demand for construction projects and this has resulted in excess capacity  Construction firms are majorly into depositing competitive tenders to win the contracts. Residential building promises heavy growth and is the prime area of activity.  Organizations which serve quantity have to compete against one another by offering the service at minimum price provided to keep customers intact  Construction projects are similar in nature and are delivered via projects with variation across retail. Buyers Bargaining: Strong  Construction developers have a high quality of information for decision making .

superior workforce over the whole business Infrastructural: They are based in New Zealand majorly operates in New Zealand and Australia.3 By applying at least two analytical tools or a combination of tools.60% amid the survey time frame (2011–2015). also have their presence in more than 40 countries. examine the internal environment for its impact on the business situation. developing leadership & capability skills and making a connected with. They place significant importance on attracting. retaining and nurturing their workforce. It stands for ensuring safety so that going home safe every day is guaranteed.  There are few developers and construction clients compared to the many service providers available to deliver project  There has been a decline in the developers and client’s demand for construction projects  Developers and clients have the ability to postpone projects until a later stage when they can secure lower costs of building Reference: D&B hoovers analysis http://www. The objective of the lab is to ensure that business divisions work on smaller. Financial: In genuine terms. They have established a Digital Innovation Lab. in spite of the fact that this is required to decelerate somewhat to 6. .07% over the forecasted time period. digital projects and moving forward if they can add value to customer.ea9f15fcf6690612.html Q.hoovers. Your discussion must be based on an analysis of each of the following resource strengths and weaknesses: Product: o Building products & materials o the Laminates and Panels division o Construction o Distribution o Residential & Land Developments Technology: Fletcher buildings have invested into digital transformation information/cs/competition. employee engagement diversity and HR innovation programmes. the industry's yield esteem ascended at a compound yearly development rate (CAGR) of 6. competitiveness and sustainability. 2.fletcher_building_limited. Human: They have human workforce of 19000plus employees. They have won multiple awards for their training. Organisation culture: Making Fletcher Building a best place to work for.

aluminium.1 to Q 2.  There is a dearth need of Reconstruction efforts in the Canterbury region  There exists a major opportunity generated due to rising Australian government expense on infrastructure which will ensure many new public sector contracts will come up. Weaknesses  They have to face fluctuations in currency as they generate 50% or more of its revenues from regions outside its domestic market. roof tiles. plasterboard. identify key success factors for the organisation.  The Auckland Unitary Plan is going to expand the city's urban area by 2030.  They are heavy diversification across the building materials industry .the company's products include cement. insulation and laminex. Thus it will dampen the demand for mining-related fixed assets Reference: Business monitor review https://bmo. SWOT analysis Strengths  It is Largest integrated manufacturer and distributor of infrastructure and building products in the Australasia region. steel. bathroom. Opportunities  There is long term deficits in infra and buildings for many neighbour Asia Pacific countries which will ensure that many contracts are up to be article=1220690&advanced_search=1&matches=152&page=1&position=15&keyword=fletcher %20building Q 3.3.1 In light of the analyses and discussion in Q 1. concrete.  They are Relatively low net gearing.  Primarily exposed to markets that are relatively mature in their level of fixed asset build-up.  There has been ongoing restructuring of Chinese economy from fixed-asset investment which is going to result in demand for raw materials in Australia weaken. Threats  There has been a considerable upheaval in New Zealand real estate market.bmiresearch. pipes. Key success factors may include but are not limited to the following:  Advancement in technology and investment in research and development  Enhancing efficiency in manufacturing process .

enhancing internal efficiency. accessibility of bank loans and rest credit factors. Marketing-related: marketing along push lines do not go a long way. political stability and a conducive environment to growth. namely sufficient knowledge and experience. It is very important to keep few factors in control. market specialization. formation of joint ventures. operations need to have a turnaround and this is possible only through advancement in technology. there is a high need for investment in technology and improvement in R&D sector. Manufacturing-related: Since the kind of sector fletcher industries operate in. good site management. Good management: consists of different factors: namely.1 to Q 3. government support in terms of bureaucracy. competitive prices of products and good relations with customers.1 for its implications for the organisation. efficient management of cash flow. skilled workers. enhancing and educating participating members and availability of capital investment. diversified expertise. Location: Location plays a major role since transportation costs are huge as they are low value per volume products.2: a) Identify sources of competitive advantage and sustainability for the organisation . Technology-related: With the globalisation and rapid advancement in technology across the globe. commitment to customer satisfaction. So products and offered services must be marketed in a way so that pull forces starts operating and business becomes a success. Q 3. Projects must be completed on time due to heavy investment involved.2 Critically analyse each of the key success factors that you have identified in Q 3.3 In the light of the analyses and discussion in Q 1. Entering into mergers and acquisitions. So the locations has to be at strategic places so that distance from supplier and customers are minimum and high operational efficiency is achieved Human resource related: The Human Factor comprises of six factors. liberal economic policy of government. Distribution-related: Most optimum distribution model has to be followed to minimize costs and ensure on time delivery. Emphasis has to be laid upon acquiring and retaining a good talent pool which can define the strategy and guide fletcher towards success. namely. consolidations in the value chain. efficient management of company. technical expertise and good team members. tax incentives. laws of the land.  Adopting an efficient distribution model  Adoption of new marketing strategies to establish a brand name  Focus must be customer centric to increase Customer Orientation  Location must be strategic to suit needs of operation  Acquiring and retaining efficient talent pool  Good management is a must for giving organization’s strategy a direction Q 3. on the job safety and security. which is highly labour and time intensive. With the customizing demand . All such scenarios are a day to day phenomena and business strategies and decisions must be aligned with that. Focus must be customer centric so as to keep the strategic headed in direct direction. The Environmental Factor: this factor needs to be kept in consideration so as to align the company’s strategy with changing external scenario. Customer Orientation: Consists majorly of these factors. effective organizational structure.

patents which not only supports their cutting edge technology base but also provides with a sustainable competitive advantage. improper flow of communications can be disastrous. Ownership of capital equipment: they have already invested a huge in the existing business and thus pose a strong barrier to new entrants Q 3. depending on the economy and interest rates  Cost Overruns . A dynamic home market: market conditions existing in new Zealand is very conducive for growth of fletcher industries Related and supporting industries: Fletcher buildings have very solid network of supporting industries comprising of suppliers and buyers which provides it with an advantage over competitors Strong research and development capabilities: Fletcher buildings have invested into digital transformation stream. In light of the analyses and discussion in Q 1. It again presents a standard principal agency problem. which makes it hard to postpone investments.1 & 3.1 & 3. There are some factors such as raw material costs. Access to intellectual properties: They have accumulated over the year multiple research papers and intellectual properties.Costs that exceed estimates can result in losses for organizations. especially in infrastructure and housing.4 In light the analyses and discussion in Q 1. the domestic market is still important for New Zealand contractors. They have established a Digital Innovation Lab. New Zealand is a developing country with a rapidly increasing population. The objective of the lab is to ensure that business divisions work on smaller.b) Analyse above sources in terms of the to meet the key success factors for growth and organisational sustainability that you have didentified in Q 3. In such contracts they bear the risk for cost overruns. Some of the major construction contractors have multiple numbers of projects based on fixed price contracts. digital projects and moving forward if they can add value to customer.  Unreliable Subcontractors. economic conditions. The subcontractors are not trustworthy and adversely affect company profits  Demand for new residential buildings can change rapidly. Lack of communication is one challenge fletcher buildings is facing.1 Determinants for the source of competitive advantage for fletcher buildings Favourable factor conditions: Although it has been stagnant in recent years.3: a) Identify key strategic challenges the organisation is facing b) Critically analyse the impacts of identified strategic challenges on the organization’s business and growth potential  Human resource plays a important rule in companies like fletcher buildings which are operating in the construction domain. and weather conditions delays could result in losses for organizations.4: a) formulate strategic options for the organisation . So the industry as a whole is facing challenges in terms of lack of Skilled Worker  In a big organizational structure like fletcher buildings.

this dominating position of in the Australasia building materials market allows the firm to have greater say in commanding prices to its customers. The company should ponder upon increasing its presence in New Zealand and Australia through joint ventures and adjacent acquisitions.1 Critically examine the role and implications of Environmental Management for the organisation in terms of the assumption under each of the following: a) political b) practical c) ideological The Environmental Factor: this factor needs to be kept in consideration so as to align the company’s strategy with changing external scenario. accessibility of bank loans and rest credit factors.1: a) develop and recommend solutions that address identified challenges and provide growth and sustainability potential for the organisation b) develop plans for implementation of strategies and solutions you have recommended above c) develop performance measures such that implementation plans can be monitored against desired results In my purview.  Attempting its construction unit to operate at a minimum cost base as supplier for its construction projects are assured at fixed cost from the other divisions  Avoid cost overruns to minimize losses  Entering into profitable and strategic merger & acquisitions. tax incentives. Forward ahead. For that purpose. allowing it to extracting higher margins than its competitors in other regions. the company must focus its attention to its core markets . as well as in distribution segment. laws of . Entering into mergers and acquisitions. 5. the company must attempt to make thoughtful investments to increase its existence in the global formica business in the coming years. Very big scale acquisitions in both countries is not a priority. Discussing regarding targeted growth opportunities.2 In light of the analyses and discussion in Q 1. the firm will focus on growing organically. Regarding the expansion plans beyond Australia and New Zealand. formation of joint ventures. Q 4. government support in terms of bureaucracy. Fletcher Building must focus its strategy centred on enhanced operational leverage and targeting growth opportunities.1 & 4. I understand this superior position in the Australasia building materials market also let its construction unit to operate at a minimum cost base as supplier for its construction projects are assured at fixed cost from the other divisions. The objective to be upheld by firm must be of growing and sustaining positions in building and construction products. consolidations in the value chain.New Zealand and Australia .b) analyse and evaluate each of the above strategic options for their strategic fit and trade-offs for the organisation  Strategic human resource management which will allow them maintain a competitive position in the era where there is dearth of skilled talent pool. liberal economic policy of government.

2 Critically examine the business practices the organisation engages with. To put in simplified words they work together with their employees. They have made arrangements for relocation of endangered geckos. political stability and a conducive environment to growth. making the system more energy efficient. Some of the key initiatives has been listed down below. in a manner that demonstrates the social and environmental conscience of the organisation. Together encapsulates their attempt to sustainability and environment protection. and discuss impacts of these practices on the environment and sustainability Fletcher building’s vision of Building Better. their clients and their communities around to achieve their aspirations in sustainability.2.the land.000 trees.3 In light of the analyses and discussion in Q 1. When it is about protecting environment and minimize the impact of operations on the environment.1 & 5. staffs. It helps in creating new and more sustainable products and innovative ways of doing things. and thus improvement the way the organization is run. fletcher buildings will continue to focus on improving their performance in . All of the Fletcher building’s sustainability initiatives work within a framework of economic and technological innovation. develop social responsibility and environment sustainability strategies for the organisation. safety and wellbeing of our employees and communities they operate in  Fletcher building will Invest and support the communities in which they operate Sustainability is about efficient management of resources. Q 5. It is Fletcher building’s business units which have the maximum ability to make a difference for the environment. One of project site of fletcher buidings alone has planted over 700. Health and Safety team providing direction and key performance indicators which includes the monitoring of their carbon emissions. Fletcher buildings have three major areas of focus for environment protection and sustainability:  Fletcher building will protect and minimize impacts on the environment  Fletcher building will protect the health. In the coming days. Fletcher building’s attempt is to have strong business units which is assisted by an active centre. Fletcher building have a diversified portfolio where they have many inspiring examples of businesses which reduce waste. Fletcher Building businesses divisions are into in all kinds of possible environmental sustainability initiatives. All such scenarios are a day to day phenomena and business strategies and decisions must be aligned with that. It is also about using and manufacturing environmentally responsible products which do not harm environment and manage impact on environment. This framework gives direction for their focus areas. Q 5. There have been numerous initiatives which has been taken to develop social responsibility and environment sustainability strategies for the organisation. The team has developed a sustainability framework. Sustainability and care to environment is essential to the customer since it will deliver real value and is vital to the life of their business. Fletcher buildings have introduced lean construction methods and they have also been nominated for environmental awards in recognition of their commitment to rehabilitate former quarry sites and innovations that significantly reduce waste. Fletcher building have adopted a business strategy to put into action which shall make the difference. Fletcher building have a centralized Environment.

where they are centralized. ecological and social effects. administration frameworks. Your discussion must be based on a critical analysis of at least one of the following methods: AA1000 arrangement: The motivation behind the AA1000APS (2008) is to give associations a globally acknowledged. Fletcher Building is focused on giving solid administration in reasonable business so that social duty is coordinated all through the Fletcher Building organizations. oversee. Fletcher Building have made some commitments  They will work together to protect and sustain the environment  They will reducing the impacts associated with their manufacturing. They have moved imperilled geckos.4 In light of the analyses and discussion in Q 1. wellbeing. assess and convey their responsibility. ISO14000 arrangement: ISO 14000 is a progression of universal. In 2015 another board advisory group was framed. in a manner that ensures engagement with stakeholders. supportability administration. Supportability detailing in view of the Standards gives data around an association's certain or negative commitments to economic advancement. checking and audit of wellbeing. aides. regulate.2. safety and the environment and in development of their people and in sustaining their communities. executing projects to meet destinations. committed to security. and specialized reports.1 & 5. In New Zealand. wilful ecological administration norms. deciding natural effects of items or administrations. arranging natural goals. uninhibitedly accessible arrangement of standards to casing and structure the route in which they comprehend. condition and manageability execution GRI arrangement: The GRI Standards speak to worldwide best practice for revealing openly on a scope of monetary. execute. Fletcher Building is dedicated to investing into and assisting the communities in which they operate. The panel gives administration of arrangement and arranging. present an analysis that identifies methods that the organisation could potentially engage with for communicating its commitment to corporate social responsibility and environmental sustainability. wellbeing.the area of health. and directing restorative activity and administration survey. presented lean development strategies and been named for natural honours in acknowledgment of their sense of duty regarding restore previous quarry destinations. they have a proven record of supporting youth employment programmes . condition what's more. Fletcher Building organizations have been included in a wide range of natural activities. construction and extraction operations and will strive for sustainability  They will reducing the impacts generated with the distribution and consumption of their building materials  They will build leadership capability to ensure sustainable growth  They will support and invest in the communities in which they operate  They will manage health and safety risks across their various business divisions  They will strive to work with collaborative strategy along with central and local government stakeholders so that it helps to facilitate employment or training opportunities for unprivileged youth  They will have workplaces that strive to provide development opportunities for our people. focused on high engagement and high performance Q 5. The benchmarks indicate prerequisites for setting up an ecological arrangement.

com/doi/abs/10.ft. Official website of Fletcher building 3. . http://www. https://markets. References: 1.h 8.1080/01446199200000049?src=recsys 6.chron.globalreporting. 2.fletcherbuilding.tandfonline. http://smallbusiness. https://www. article=1220690&advanced_search=1&matches=152&page=1&position=15&keyword=fletche r%20building