A Strategic Analysis of Laing ORourke Construction Company - Case Study Example

Case study for Laing O’Rourke Construction Company Name: Institution: Course Title: Tutor: Date: Contents Contents 2 1. Introduction 3 2. The Scope of the Report 3 3. The company in brief 3 4. Vision and purpose 4 5. Section 1: the Company’s Current Mode of Operation /Strategic Management Plan in attaining its Vision 4 6. Section 2: Strategic Analysis 6 7. Section 3: Analysis of Alternative Directions 6 8. Section 4: Recommendations for Appropriate Strategic Direction to Increase Competitive Advantage 7 9. References 9 10. Appendix 10 10.1 Strategic Analysis 10 Case study for Laing O’Rourke Construction Company 1. Introduction The overall goal of any organization is to attain market leadership, satisfy customer needs and earn a profit. Moreover, firms develop products/services in order to meet customer needs while at the same time ensuring maximum returns for the company and market leadership (Cochran, 2003, p. 1 and 2). The development of products/services is a sure way of offering clients variety and a bid to capture different market segment. Any individual product or service must be developed in line with the firms overall mission and objectives (Onkvisit & Shaw, 2008, p. 7). These three basic tenets can only be achieved if management properly lays out strategic management plans as a roadmap to attaining the above three desires. According to Goldratt’s theory of system view, a business organization is viewed as system whereby if one department fails the others are likely to fail. Thus, satisfactory and successful service delivery relies on a holistic and concerted effort of all functional business areas such as production and engineering, processing, finance and human resource management (Dettmer, 1997, p. 7). This report, presents a strategic analysis of Laing O’Rourke Construction Company and possible improvements in order to achieve competitive advantage in their field of operation. 2. The Scope of the Report With the increased stiff completion in the construction, engineering and allied service, companies need to churn out road maps that will help them overcome internal and external challenges such as capital equipment acquisition, global recession, and competition. For a business organisation to overcome this, one sure step is towards enactment and implementation of strategic plan that acts as a principle guideline of the companies operation in relation to internal and external environment. Strategic management plan can help managers to overcome performance gap. In order to achieve the above goal, this report is divided into four major sections. The first section explores the current mode of operation of the company as outlined in its strategic management plan in order to attain their vision. The second is strategic analysis through PESTEL, SWOT and porter’s model. The third is analysis of alternative directions for attaining the vision. The fourth is on recommendations for the best way forward between the current strategy and the alternative strategies in attaining competitive advantage. 3. The company in brief Laing O’Rourke is the largest privately owned construction solutions provider in the UK. Formed over 30 years ago, the Group’s international operations posted managed revenue of £4bn in 2011. The business is made up of a range of engineering, construction, manufacturing and specialist services companies, which combine to provide prestigious clients with a comprehensive investment, development and management capability. Working across Europe, Canada, the Middle East, South East Asia and Australasia, their operations span a range of sectors, including: lifestyle; business; social infrastructure; transport; power; mining and natural resources; oil and gas and utilities and waste. In addition, their breadth of expertise and geographical reach means they are engaged on the full spectrum of projects - from remote desert railways to urban regeneration and transport infrastructure schemes (laingorourke.com). 4. Vision and purpose Vision acts as the main driving pillar of any organisation operation. All activities, ventures and formulations are done in line with the vision framework so that this noble aspiration is achieved. Vision can be seen as the ultimate goal of where an organisation wants to be in the future. It is futuristic dream that can only be realized with properly formulated strategic management plan. Laing O’Rourke vision is pegged on three fundamentals. These are to be the company of first choice for all stakeholders, challenging and changing the poor image associated with construction companies worldwide and adoption of leanness and agility process so as to compete with world-leading businesses. Apart from the above vision, the company has roughly six guiding prices that influence their basis of operation. They are to make safety personal and work responsibly, lead by example, work as a team, and listen to everybody, trying to find or follow a better way, delivering their promise and aiming to succeed and collaboration with clients and partners (laingorourke.com). 5. Section 1: the Company’s Current Mode of Operation /Strategic Management Plan in attaining its Vision In order to efficiently carter for different segment of the market and deliver value for their customers as outlined in their vision, purpose and responsibility, Laing O’Rourke company operations are roughly divided into five segments. The first segment is of investment and development which aims at delivering maximum value on major public and private sector investment through whole- of-life-approach and partnership with PFI. In addition, this business segment is further subdivided into two. The first is ‘explore investment’ and the second is ‘explore living’. Explore investment works with leading property developers to avail high-quality portfolio of retail, commercial and residential property developments. On the other hand, explore living is chiefly focused on delivering residential homes (laingorourke.com). The second business segment is called ‘explore manufacturing.’ This segment of their business portfolio is concerned with availing state-of-art facilities through designing, manufacturing and assembling. Their main goal is to offer solution that drive down waste while delivering better quality structures that are safer to construct. This segment has roughly ten branches that are commission to attain the above desired vision of this segment. The branches include Austrak, CHt Offsite, Emirates Precast, Explore Manufacturing, Joinery, Malling, Modulor, Rebar, Redispan and Vetter. This segment has different branches like Austrak that delivers prestressed concrete slippers, bearers and associated products. These are used in heavy-haul industrial railroads and remote freight systems (laingorourke.com). The third segment is called construction and building segment. They aim at delivering end-to-end building and civil engineering services across every major sector drawing on the extensive experience that comes from a proud heritage of construction excellence. This segment has two more sub-branches. The first is ‘crown house technologies’, and the second is ‘Laing O’Rourke construction.’ Crown house technologies focus on creating superior client value by offering more efficient and cost-effective solutions by utilizing offsite modular technologies so as to reduce total energy and carbon impact over its lifetime. This is one of the UKs leading technologies. Laing O’Rourke construction branch aims at employing contemporary offsite manufacturing and preassembly capabilities directly into design. They also aim at managing, constructing, upgrading and maintaining some of the world’s most complex, and valuable built assets on time, and on budget (laingorourke.com). The fourth segment of the company is of infrastructure and services. This segment mainly works in energy, nuclear, mining, utilities, waste, water and transport. They design, engineer, construct and maintain essential infrastructure assets. Further, this segment has got three sub branches. These are expanded group, Laing O’Rourke Infrastructure and strong force. The expanded group branch provides a total capability in the early construction phases of major projects. This branch can deliver full range demolition, site remediation, piling, precast concrete, post-tensioning, stonework and structure techniques. Laing O’Rourke Infrastructure aims at providing clients with full-service civil engineering capabilities that optimises client value and minimises risk. Through partnership in the regulated private and public sector, they strive to provide sustainable, whole-life infrastructure asset services necessary to improve the quality of life for end-user and communities. They specialise in design, engineering, management and direct delivery of major capital projects. The final branch under this segment is the strong force sector. This sector is engaged in delivery of post-tension solutions which brings enhanced efficiency to the build process. They can help a developer of high-rise-buildings to weight save up to 40% (laingorourke.com). The final segment of this company that is geared towards addressing their vision is the support services. This segment provides the tools and technologies to manage projects through every stage. They offer specialist design, building information modelling and remote monitoring services, along with the UK’s largest plant hire company. The segment operates in two branches. The first is select plant hire and the second is insite. Select plan hire is one of the largest plant providers in UK, with operations in Europe, the Middle East and Australia with world’s largest fleet of towers cranes. They offer a diverse portfolio of plant, equipment and machinery to meet all construction needs. Moreover, they have large network of depots and tool-hire shops. The insite section of this business segment is geared towards cost planning functions. They engage in integration of cost planning with design from inception to completion so as to establish realistic and achievable budget (laingorourke.com). From the above observation it looks like the company has adopted business portfolio diversification approach. This kind of approach is a plus to them in attaining their vision, purpose and responsibilities as outline in the first section. First by having a broad network of business segments, a customer is guaranteed a one stop shop solution in the field of construction, engineering, civil woks and geo technical engineering. Moreover, this kind of diversification allows the firm to bid for different kind of works within UK and the rest of the world. Thus, they have more competitive advantage over other competitors who are highly specialised in one section of the construction industry. Apart from the above, this portfolio diversification can help them buffer and mitigate losses during harsh times since some segments will be able to be operational (Hagin, 2004, p. 4). As a result of diversification in their services, the company has been able to win numerous tenders. These include London Heathrow Terminal 5 completed in 2008, Al Raha Beach in Abu Dhabi, London Gateway Port, Atlantis the Palm in Dubai and Kwinana Power Station in Western Australia completed in 2008. 6. Section 2: Strategic Analysis It is significant to note an organisation resembles an organism or a system. This means that it has both internal and external environment which affects its overall performance (Dettmer, 1997, p. 7). Internally, an organisation has to be efficient and adopt procedures that direct it towards attaining leadership by churning out good/ services that meet the customer expectations according to the market segment they are interested in. All basic internal operations of the company should be geared towards creating value for the end customer, attaining market leadership and profit making. The others are ensuring community social responsibility through functions like sustainability reporting. Internal efficiency can be achieved through various procedures. One of them is through organisational structure, human resource management, just in time production and lean management. An organisation is an open system whereby it interacts with its environment in terms of completion from new entrants, threats from substitute products bargaining power of customers and suppliers, legal regulations and macro economic factors such as taxation, subsidies, and price caps among others. Thus a strategic management plan should be able to address internal environment factors, external environment factors and the specific sector/ industry concerns (See Appendix). 7. Section 3: Analysis of Alternative Directions One alternative approach to attaining their vision is through concentration in their function and outsourcing the rest of the services. Currently, the company has diversified a lot into other services like research, support services instead of focusing on core function of construction and sub letting contracts to other players so that their main function is just winning contracts and quality supervision in these contracts. One way in which a firm can increase their profitability and market leadership is by reduction of operating cost through cost cutting measures. One key area of cost cutting measures is by concentrating on core functions of the firm. This can only be achieved by efficiently integrating suppliers, manufacturers, warehouses, and stores so that merchandise is produced and distributed at the right quantities to the right location and at the right time (Simchi-Levi, Kaminsky and Simchi-Levi, 2004, p. 2). However, this kind of arrangements normally faces numerous challenges which are dynamic and complex (Simchi-Levi, Kaminsky and Simchi-Levi, 2004, 4, 5 & 6). According to Simchi-Levi, Kaminsky and Simchi-Levi (2004, p. 7), in the 1980, companies discovered new manufacturing technologies and strategies that allowed them to reduce costs and better compete in different market segments. However, in the recent there has been a paradigm shift towards supply chain management so as to increase profit and market share. Thus, a firm should only engage in its core function so as to cut cost and direct most of her capital outlay to the core function. The challenge of this approach can be viewed in terms of supply chain management philosophy which is pegged on the system view approach rather than a set of fragmented parts. This translates to the fact that supply chain management extends the concept of partnership into a multiform effort to manage the total flow of goods from the supplier to the ultimate customer. Thus, each firm in the supply chain directly and indirectly affects the performance of all other supply chain members, as well as ultimate, overall channel performance (Mentzer, 2001, p. 9). Thus this approach does not work well where there is a lot of competition between supplier and the outsourcing company. 8. Section 4: Recommendations for Appropriate Strategic Direction to Increase Competitive Advantage Strategic plan are normally long term road maps indicating the desired direction the company wishes to pursue in present and future. This acts as the sole basis for directing the company so that they can attain market leadership/ competitive advantage, earn profit and guarantee customer satisfaction for the chosen market segment. This section is geared towards analysing how currently the firm is performing towards realising its goals, objectives, vision and mission so as to fulfil its present strategic plan (Sadler and Craig, 2003). From the above observation in section 4, the current strategic position of the company is geared towards a positive direction. This kind of vision has been able to propel the company from small holding back in 1977 to one of the privately owned construction companies that is dominant in UK and other parts of the world. The current strategy encourages responsibility towards numerous stakeholders. They recognise that modern business approach is not only based on utilitarian approach to business but also on responsibilities to stakeholders (Hubbard, 2011, p.824 and 825). In realisation that a company has to operate within certain parameters of responsibility, the company has put unto themselves to attain and adhere to five responsibilities during their engagements. The first is health and safety of workers and public. This is outlined through their quality, safety and health measures (QSHE). This concern adhere to country of operations occupation safety health regulation policies (OSHA). The second is responsibility to environment. In this instance the company usually conducts environmental impact assessments and also engages on voluntary sustainability reporting. The third relates to their industry in which they aim at inculcating leadership as continuous process in achieving their goals. This helps them raise the bar in terms of values. The final one is the community whereby through social community responsibilities (CSR) they plough back certain fraction of their income back into the societies in which they operate in (Aras and Crowther, 2008, p. 279 and 280). Apart from this, the company has been engaged in strategic acquisition of John Laing plc in 2001, crown house engineering in 2004 and acquisition of Barclay Mowlem in Australia in 2006 creating today’s extended international construction solutions group. The other strength lies in the capital base, revenue and operating income. Revenue and operating income For 2010/2011 was estimated to be 3, 320 million pound and 51 million pounds respectively. This makes it possible for the firm to bid and undertake huge projects that require massive investments. In addition to the above, the company has a huge number of employees with diversified technical background who brings experience to their operations. This coupled with their able chief executive officer Ray O’Rourke; the company is able to attain greater results with a lot of synergy. Moreover, the CEO has a lot of experience gained while working at Kier plc and J Murphy & Sons (laingorourke.com). In conclusion, the company should continue with its current mode of operation since I feel it address the overall company vision, purpose and responsibilities. The current operational procedures based on the prerequisite requirements for achieving competitive advantage and market leadership is on course of being attained. However, there are other approaches that the company can adopt and still be in operation. However, to me this will not offer a one stop shop for their clients and will not proper exploit their wide capital base. The second option apart from this massive diversification and businesses segmentation, the company has an option of specialising in its core functions of construction while outsourcing other services. This would ensure the company directs its energy in one field. However, this is not a safe path in terms of financial risk management and meeting demands for highly differentiated sector like construction industry. 9. References Aras, G. and Crowther, D. 2009. Corporate sustainability reporting: a study in disingenuity. Journal of Business Ethics. 87: 279-288. Cochran, C. 2003. The continual improvement process: from strategy to the bottom line. California: Paton Press LLC. Dettmer, H. W. 1997. Goldratt’s theory of constraints: A systems approach to continuous improvement. Milwaukee, Wis: ASQC Quality Press Hagin, R. L. 2004. Investment management: portfolio diversification, risk, and timing- fact and fiction. Hoboken, New Jersey: John Wiley and Sons Hubbard, G. 2011. The quality of sustainability reports of large international companies: an analysis. International Journal of Management, Vol. 28, No. 3, part 2. Laing O’Rourke Company. About us. Retrieved from: http://www.laingorourke.com/aboutus/Pages/Home.aspx Mentzer, J. T. 2001. Supply chain management. Thousand Oaks, California: Sage publication Inc. Onkvisit, S. and Shaw, J. J. 2008. International marketing: strategy and theory, New York: Routledge Sadler, P. and Craig, J. C. 2003. Strategic management. London: Kogan Page Limited Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. 2004. Managing the supply chain: the definitive guide for business professional. New York: McGraw-Hill 10. Appendix 10.1 Strategic Analysis Macro-Environment Analysis (PESTEL) Political factor Order of Importance Issue +/- Effect on Growth Industry regulation Positive Recession Negative Instability Negative Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)-NEGATIVE Industry regulation is appositive factor in their operation since this allows for level playing field. For instance, the UKs government has numerous legal frameworks for construction industry. In relation to recession, this factor has a negative factor since it reduces disposable income of consumers and thus, they will only focus on basic needs rather than mega investments and this means construction industry will face a decline. Economic instability generally affects performance of a country. The economic instability can arise out of numerous factors like government change and recession. Economic factor Order of Importance Issue +/- Effect on Growth Financial crisis Negative Inflation Negative Weak profitability Negative Fluctuating foreign exchange Negative Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)-NEGATIVE The financial crisis experienced globally and with countries not yet fully out of this doldrums the operation environment is not that favourable for construction industry. On the other hand, with the increasing prices due to inflation it means operation costs are high and this has to be transferred to the customer thus, making end products expensive and less affordable to many. The above two factors of financial crisis and inflation translates to reduced profitability due to increased cost of operation. However, one of the main goals of a firm is to make tangible profit to its shareholders. Fluctuating foreign exchange affects the industry in negative way when the materials of construction have to be imported since the firm will use higher amount of money. Socio-cultural factor Order of Importance Issue +/- Effect on Growth Improved lifestyles Positive Improved environmental awareness Positive Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)-POSITIVE One social factor that contributes to massive growth of real estate sector especially in home construction is the improved lifestyles. With improved lifestyle people will demand fancy and classic housings to meet their living standards and social status. This creates more opportunity for construction firms. The next positive point is the improved environment awareness where people are now seeking housing units that are environmentally friendly. This calls for increased investment and thus, more work opportunity for construction firms. Technological factor Order of Importance Issue +/- Effect on Growth Innovation Positive E-commerce Positive Globalization Positive Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)-POSITIVE Innovation allows industry to minimize on its operation costs, production costs and availing of affordable housing and other infrastructures that are durable and environmentally friendly. Thus, this creates more opportunities and reduced cost for both consumer and the producer. The same applies for globalization which translates to expanded market opportunity for Laing O’Rourke. Lastly, e-commerce allow for paperless trading and one irrespective of his global location can access designs allow it to be modified and accept terms and condition in online format without being physically present. This allows for ubiquity and thus, positive steps towards global reach and increased interaction. Legal factor Order of Importance Issue +/- Effect on Growth Decrease of international barriers Positive Tension in some countries Negative Costly insurance Negative Increased willingness of courts to award damages against companies for service failure Negative Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)-NEGATIVE A decrease in international barriers means that construction firms can expand so as to net more customers in different parts of the world. Tension in some countries is not well with construction firms since investment in these services are expensive and if they form object of target and sabotage then the operations become tough. Other legal factors that impact negatively include costly insurance premiums which are very crucial for this sector. Other is the damage award at a time which is too high. Thus, this calls for construction firms to engage in environmental friendly services. From: McDonnell, A. 2011. Strategic Management. Lecture Notes. Analysis Political factors combine to affect Laing O’Rourke Company negatively through much government regulations. Additionally, the economic, environmental and legal factors do not favour the growth of the construction industry due to issues outlined above. On the other hand, technological, demographic and socio-cultural factors do have positive effects on the industry growth. This is terms of a growing population increasing demand for the products. Industry Environment Analysis (porter’s model of five forces) Threat of new entrants Factors (affecting the threat of new entrants) Analysis Threat Rating of New Entrants Economies of scale The Laing undertakes production on a large scale reducing costs of production Medium Product differentiation Laing produces products which are unique compared to rivals Low Product identity Liang services are known all over the World Medium Customer-switching costs Customers can easily switch to other brands as costs involved are low Medium Capital requirements There are high requirements to enter this industry Low Access to distribution Open market means any player can enter the industry High Government policy Issues of deregulation and privatization allow new players High Overall Rating: (LOW or MEDIUM or HIGH)-MEDIUM Bargaining power of suppliers Factors (affecting the bargaining power of suppliers) Analysis Rating of Supplier Power Product differentiation Many suppliers are involved Low Switching costs of suppliers Liang has to get raw materials from suppliers always Low Presence of substitute inputs There are lots of substitute inputs Low Importance of volume to suppliers There many suppliers for inputs meaning they have a small base of buyers Medium Decision maker’s incentives Given the high number of suppliers, Liang does not need any incentive to buy Low Overall Rating: (LOW or MEDIUM or HIGH)-LOW Bargaining power of buyers Factors (affecting the bargaining power of buyers) Analysis Rating of Buyer Power Differentiation of outputs Products are differentiated Low Switching costs of buyers High number of suppliers means no costs are involved in switching High Presence of substitute outputs Buyers have more power as there are many substitutes products High Industry concentration relative to buyer High number of suppliers means that buyers do hold more power. High Buyer profitability In case the industry is unprofitable then products are sold at lower prices Medium Decision maker’s incentives Buyers are motivated through discounts Medium Overall Rating: (LOW or MEDIUM or HIGH)-HIGH Intensity of industry rivalry Factors (affecting the intensity of industry rivalry) Analysis Rating of Industry Rivalry Industry growth rate Growing high due to increasing demand Low High fixed costs Product prices are less flexible depending on the supply Low Switching costs Increased rivalry means buyers can switch with no costs High Concentration and balance Concentration is high due to many industry players High Exit barriers Exiting the industry is costly due to high entry costs. Mergers are good High Overall Rating: (LOW or MEDIUM or HIGH)-HIGH Power of substitutes Factors (affecting the power of substitutes) Analysis Threat Rating of Substitutes Relative price/satisfaction from substitutes Products are highly differentiated Medium Switching costs Buyers incur costs to switch to substitutes Low Buyer propensity to substitute differentiated products mean any product can’t be used by buyer Low Overall Rating: (LOW or MEDIUM or HIGH)-MEDIUM From: McDonnell, A. 2011. Strategic Management. Lecture Notes. Analysis The rate of threats of new entrants is medium given that many factors come into play. The bargaining power of suppliers is low given their high number. Buyers have a high bargaining power due to many players in the field. Internal Analysis (SWOT) Strengths Order of Importance Issue +/- Effect on Growth Technological skills Positive Leading brands Positive Product quality Positive Scale Positive Management Positives Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)-POSITIVE Weaknesses Order of Importance Issue +/- Effect on Growth Absence of important skills Negative Weak brands Negative Poor access to distribution Negative Low customer retention Negative Unreliable products/ services Negative Sub-scales Negative Management Negative Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)- NEGATIVE Opportunities Order of Importance Issue +/- Effect on Growth Changing customer tastes Positive Technological advances Positive Changes in government politics Positive Lower personal taxes Positive Change in population age Positive New distribution channel Positive Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)- POSITIVE Threats Order of Importance Issue +/- Effect on Growth Changing customer base Negative Technological advances Negative Closing of geographic markets Negative Changes in government politics Negative Tax increase Negative Change in population age Negative New distribution channel Negative Overall Rating: (+ POSITIVE or NEGATIVE or BALANCED)- NEGATIVE Analysis Strengths The company’s greatest strengths lie in three factors. The first is the technological factors whereby the company has been able to invest heavily in numerous research arms for production of better quality products in the construction field. The other strength that is connected to this is the production quality. The company has been engaged in numerous projects which they have delivered with high precision and quality. In addition, the company is able to enjoy economies of scales due to their numerous business segments and subsidiaries. This allows them to cut costs while acting as a one stop shop. Moreover, the company is one of the leading brands in UK construction sector. This is evident with the number of high profile contracts they have won like terminal five of Heathrow airport. Finally the other strength lies in their management hierarchies whereby their CEO is one of the experienced players in construction field having worked for companies like Kier. Weaknesses With the present observation, the company has been able to address well numerous sources of challenges like low customer retention, weak brands, and unreliable product among others. However, one challenge that can be noted in their mode of operation is the attempt of being a one stop solution provider. This at a time might cause them to behave like a closed system that does not interact with its environment. This can make them miss inputs from other valuable players in the industry. Opportunities The greatest opportunities lie in the changing customer tastes whereby most are embracing sustainable developments in terms of energy efficiency and environmental friendly designs. This is one of the areas where the company is able to deliver due to their advancement in technological aspects. The other opportunity lies with change in population age where majority are ageing. This calls for redesign of certain buildings to accommodate the elderly needs. Thus, this offers an avenue for more contracts. Threats The greatest threat to the company at the moment is the economic volatility that which most of the countries where the company operates in are still reeling from its effects. The other probable threat is the technological changes which forces the company to be abreast with any technological advances in construction industry. Internal analysis Tangible Resources People More valuable Money Valuable Company assets Valuable Intangible Resources Data Most valuable Information Valuable Knowledge Valuable Mergers Valuable Capabilities Learning and training Improves skills Knowledge transfer Helps in decision making Implementation and integration Essential in research and development Experimentation Necessary for innovation Problem solving For decision making VRIO Test Potential Strategic Capability Valuable? Rare? Costly to imitate? Can organisation exploit now? People Yes No Not costly Temporary as other organizations can hire new people Data Yes Yes Yes Yes, can be exploited for a competitive advantage Knowledge Yes Yes Yes Yes, can be exploited for a competitive advantage Mergers Yes Yes Yes Yes, can be exploited for a competitive advantage Company assets Yes No Not costly Temporary as other organizations can imitate it From: McDonnell, A. 2011. Strategic Management. Lecture Notes. Analysis The valuable tangible resources of Liang O’Rourke Company are people, money and resources. On the other hand, the intangible resources are data, information and knowledge. Liang O’Rourke Company uses all these resources in order to gain a competitive advantage in the industry. Read More