Strengths and Weaknesses of Kier Group Company - Essay Example

? Kier Group Company. Kier Group Company Kier Group is a company based in the United Kingdom. It owes it origin from a Kier and Lotz, who set up a small firm in Britain. It went public back in the year 1963. It currently stands as a leading company that specializes in construction works housing, property development and financing of structured property (KIER, 2011.p.1). The company has subsidiary companies that also offer the same services. The company also boasts of employing 10700 people worldwide. The services offered at Kier Group are divided into three main groups. These groups are namely; Kier services, Kier construction and Kier property. Kier Group can be said to be involved in chain supply activities that are complete. This has been made possible by the wide network of Kier Group that is, the various branches in more than 50 regional offices as well as strong relationships locally. Market wise Kier Group has been able to achieve success despite the hard economic times. The survival during these hard economic times has been so due to the company’s diverse skills and well integrated models. Also, a rich pool of working staff has also seen to it that the company stays strong and competitive. Kier Group has a performance that would be said to be resilient. This has been sustained by ensuring cost control as well as ample risk management strategies. They also ensure tight cash management that is continual and also maintaining focus and investing in people (JENNINGS 2010, p.78). Other aspects are to have business models that are integrated as well as levering them and finally, pursuing new growth markets as well as possible frameworks, Financially Kier Group has been fairing on well. There was a marked increase of 4 percent that is to say 80 million dollars. Kier Group acquired Beco, a small company but quite significant. Beco was purchased at 2.4 million dollars. Beco deals with designing and installation of energy sources that are renewable. Basically involves the solar panels. The purchase of Beco in 2010 November and the sale of property as at 2011 April, led to 18 million dollars as a combined amount (KIER, 2O11, P.2). A reflection of strength and depth is seen when underlying growth is experienced that is with the exclusion of the land transaction in 2010. Before the amortization of assets, the operating profit was 23 percent and that are inclusive of the joint ventures. This is ahead of last year by 71.1 million dollars with 2.7 percent as the operating margins in the construction divisions. Kier has been able to deliver substantial results despite the hard economic times. The successful turnout is courtesy cash performance which can be said to have been robust with 129 million dollars as the net cash at the end of the year. This is as a result of massive investment deals across the group (CITB – CONSTRUCTIONSKILLS, 2010, p.49). Resources have been relocated so as to take care of the secured projects. This has improved on the operational efficacy hence, facilitating for cost effectiveness. Maintenance of focus to is done to ensure the provision of intelligent solutions to their prospective customers. This further gives room to Kier to continue to have access to opportunities on a larger scale across all divisions. The workers in Kier group have worked tirelessly to ensure they are able to meet the customers’ demands sufficiently. The pool of workers is rich in terms of skills and knowledge hence, sure success in terms of product or service delivery. The people working at Kier have worked hard and hence, success of Kier Group Company (JENNINGS, 2010, p.87). Kier Group is in partnership with the council. The council and Kier Group have worked real close to ensure customer satisfaction. Their contract has facilitated for improvements in service delivery. Kier Group has experienced a reduction in the operation cost. This is as a result of working efficiently as well as innovatively. It is not just Kier that benefited from the savings. This is so as Kier Group passed over a share of the savings to the council. The same share passed over can be used as reinvestment back into the properties. This partnership has allowed an opportunity to improve as well as ensure money value is well demonstrated for services offered by Kier Group. Another partnership that Kier Group has signed is the environment services contract (Major companies of Europe, 2011, p. 48). This is a contract to recycle waste materials. This has the effect of saving 30 million dollars on an estimate, in a period if a decade. This project is one of the largest that UK has experienced as it serves 200,000 residents. The discussed partnership has a positive impact on Kiers Group financial strengths in that the partnerships offer a wider working platform. It also facilitates for cost sharing as Kier Group is not forced to start projects from scratch but rather take up from where the projects are, hence minimal cost being incurred (JENNINGS, 2010, p.122). This ensures these funds are well spent. Another advantage of the partnerships is that they give room for Kier Group to give back to the society as well as boosting the local companies. Kier group also faces some weaknesses in their operation. One of them is the lack of penetration into the third world developing countries. These countries are potential markets since they are developing nations. The other chief weakness is the disposal of properties with greater potential. Good example is the Beco Company they sold yet could go to greater extents than they pushed it (Major companies of Europe 2011, p.63) Kier Group is committed to ensuring it meets its corporate responsibilities for the sake of the generations to come. Being a large company, it has greater effects to the societies in terms of economic, social and environmental well being of the society at large (DIMITRIJEVIC? & LANGFORD, 2002, p.87). Kier Group emphasizes on commitment at all levels of operations to ensure sustainability. Kier will invest majorly on educating its employees through training and development so as to ensure employees are well informed and better placed to handle their tasks. Bibliography The annual report of Kier company 2011. (2011) Retrieved from http://www.kier.co.uk/ar2011/downloads.aspx Rodelal. H (1999). The top 5000 global companies. London, Graham & Whiteside. CITB - CONSTRUCTIONSKILLS. (2010). Construction Industry Training Board (CITB Construction Skills) annual report and accounts 2009. London, Stationery Office. DIMITRIJEVIC?, B., & LANGFORD, D. (2002). Construction creativity casebook: www.ce.strath.ac.uk/nccc ; [NCCC, Network of Construction Creativity Clubs, an ARCOM initiative and an EPSRC funded project]. London, Telford JOHN, M. P. (2009). Civil engineering construction contracts. London, Thomas Telford. PAGELL, R. A., & HALPERIN, M. (2011). International business information: how to find it, how to use it. New York, AMACOM. Jennings A.R. (2010) Accounting and Finance for Building and Surveyors. MacMillan. Obtainable from bookshop, library and Academic Reserve Read More