CASE STUDY OF LAFARGE HOLCIM

Done by:
Karim KHALIFI
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LafargeHolcim is a,multinational building materials,company formed by the merger of two
leading cement producers, Lafarge and Holcim, in 2015. The company,has its headquarters in
Switzerland and operates in more,than 70 countries around the world. LafargeHolcim is a major
player in the construction industry and produces cement, aggregates, and ready-mix concrete.
The company,also provides innovative solutions,for sustainable construction, such as low-carbon
cement and concrete products. With a workforce of around 70,000 employees, LafargeHolcim is
committed to,providing sustainable,and innovative building materials,for a better and more
sustainable built environment.

Some of the main products and services offered,by LafargeHolcim include:

Cement: LafargeHolcim,produces a wide range of cement types and blends for,use in various
applications including ready-mix concrete, precast concrete and mortar.
Aggregates: The company,produces a variety of aggregates, including,crushed stone, gravel, and
sand, for use in,construction projects of all sizes.
Ready-Mix Concrete: LafargeHolcim provides,ready-mix concrete solutions,that can be
customized to meet specific,project needs and requirements.
Construction Solutions: The company,offers a range of construction solutions, including
waterproofing, repair and,protection, flooring, and insulation products.
Building Materials: LafargeHolcim provides a,range of building materials, including roof tiles,
pavers, and,blocks, for use in various construction projects.
Infrastructure Solutions: The company provides,infrastructure solutions such,as bridges,
tunnels, and roads to help improve transportation, and connectivity.

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Based on Lafarge's, mission statement, the following is an example of the company's vision:

Lafarge's vision is to be the,leading provider of innovative and, sustainable building materials

and, solutions with a focus on creating value for our, customers and shareholders, and
communities.
Lafarge's strategy,is focused on four main pillars:
Portfolio transformation: Lafarge aims to optimize its,portfolio by divesting non-core assets
and, investing in higher-growth markets ,and, products This will allow the company to better
align its operations, with the evolving needs of its customers and the construction industry as a
whole.
Operational excellence: Lafarge aims to improve its operational efficiency through the
implementation of lean manufacturing practices, the digitization of its operations, and, the
optimization of its supply, chain and logistics operations. This will allow the company to reduce
costs, improve quality and better serve its customers.
Innovation and sustainability: Lafarge aims to continue to invest in research and, development
to develop new and, innovative building materials and, solutions that are more sustainable and
environmentally friendly. The company also, seeks to reduce its carbon footprint and improve its
social and, environmental impact through various initiatives, such as waste reduction and
community engagement.
People and culture: Lafarge aims to attract, develop, and, retain top talent by promoting a
culture of innovation, collaboration, and, diversity and inclusion. The company also seeks to
provide its employees with, opportunities for professional development and growth, and to
promote health and safety in the workplace.

Overall, Lafarge's strategy is focused on creating value for its stakeholders by providing
innovative and sustainable building materials and solutions, improving operational efficiency,
promoting a culture of innovation and sustainability, and investing in its people and culture.
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Financial perspective:

Objective: Increase revenue and profitability.

Performance metrics:
-Revenue growth rate
-Gross profit margin
-Return on investment
-Earnings per share

Measures:

-Expand operations in high-growing markets

-Increase efficiency
-Reduce costs
-Improve the pricing strategies
-Invest in research and development to develop new and innovative products

Customer perspective:

Objective: Enhancing customer satisfaction and retention.

Performance metrics:
-Net Promoter Score (NPS)
-Customer satisfaction rate
-Customer retention rate
-Market share
Measures:
-Conducting regularly customer surveys to understand the needs and preferences
-Developing customized solutions for specific segments
-Invest in digital technologies to improve the experience for customers
-Establish long-term relationships with key customers

Internal business perspective:

Objective: Improve operational efficiency and quality.

Performance metrics:
-Manufacturing cycle time
-Defect rate
-Energy consumption
-Carbon emissions
Measures:
-Implement lean manufacturing practices to improve efficiency
-Invest in equipment and technology to reduce waste and improve quality
-Develop and implement sustainability initiatives to reduce energy consumption and carbon
emissions
-Streamline supply chain and logistics operations to improve efficiency

Learning and innovation perspective:

Objective: Develop and retain talent and enhance organizational culture.
Performance metrics:
-Employee satisfaction rate
-Employee turnover rate
-Training hours per employee
-Innovation rate
Measures:
-Invest in employee training and development programs
-Promote a culture of innovation and continuous improvement
-Establish diversity and inclusion initiatives
-Develop and implement employee wellness programs

By aligning these objectives, performance metrics, and initiatives with Lafarge's overall strategy,
the company can track progress and ensure that it is achieving its goals in all four perspectives of
the BSC.

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Financial perspective:
Revenue growth rate: By increasing revenue, Lafarge can continue,to invest in its operations,
research and,development, and other areas that,contribute to the sustainability of the company.
Gross profit margin: Improving profit margins,allows Lafarge to generate,more cash flow and
reinvest,in the business, which can lead to long-term,sustainability.
Return on investment (ROI): By focusing on ROI, Lafarge can ensure that it is,investing its
resources in,projects and initiatives that will generate positive returns, and contribute to the long-
term, sustainability of the company.
Earnings per share (EPS): Lafarge can attract and retain investors which, can provide the
capital needed to sustain the company's operations, and growth over the long term.

Customer Perspective:

Customer retention rate: By retaining customers, Lafarge can reduce the costs,associated with
acquiring new,customers which can improve profitability, and contribute to sustainability.
Market share: Maintaining or growing market share, can help Lafarge remain competitive and
sustain its operations over the long term.

Internal processes perspective:

Manufacturing cycle time: By reducing manufacturing cycle time Lafarge can improve
efficiency reduce costs, and increase output, which, can contribute to the sustainability of the
company's operations.
Defect rate: Reducing the defect rate can improve product quality, and customer
satisfactionwhich, can contribute to the sustainability of the company's revenue streams.
Energy consumption: By reducing energy, consumption, Lafarge can improve its environmental
sustainability, and reduce costs associated with energy usage.
Carbon emissions: Reducing carbon emissions, can contribute to Lafarge's efforts to be more
environmentally sustainable, and socially responsible, which can help the company maintain its
license to, operate over the long term.
Learning and growth perspective:
Employee satisfaction rate: High employee satisfaction can lead to reduced turnover, improved
productivity, and a more,positive company culture//which can contribute to the sustainability of
the company's, operations.
Employee turnover rate: By reducing turnover, Lafarge can reduce the costs associated with
recruiting, hiring, and training new employees, which can contribute to the sustainability of the
company's operations.
Training hours per employee: Investing in employee training can improve skills and
knowledge, which can lead to improved efficiency, productivity, and innovation, all of which
can contribute to the sustainability of the company's operations.
Innovation rate: By promoting innovation, Lafarge can develop new products, services, and
processes that can help the company remain competitive and sustain its operations over the long
term.

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By incorporating these elements into its BSC, Lafarge can create a more comprehensive and
useful framework;for measuring, and improving its performance, and, demonstrate its
commitment,to sustainability and, long-term success.
Target values: Setting target values can help,Lafarge measure its performance against its goals
and identify,areas where it may be falling short.
Action plans: Developing action plans,for each objective can help,Lafarge identify specific
steps it needs to take to achieve its goals,and improve its performance.
Regular review and evaluation: Regularly reviewing and, evaluating Lafarge's BSC can, help
ensure that it remains relevant and, aligned with the company's goals and objectives, and,
identify areas where changes may be necessary.
Using tools: Lafarge could also use some frameworks like PESTEL and SWOT, and 5 forces of
porter, in order to be more accurate, and concentrate on some points, that the BSC doesn’t cover.
sustainability: bettering the communication working on supplier relations and transparency,
could help the company become durable and sustainable.
References :
https://www.lafargeholcim.ma/fr