Q.1 What strategies does CRH pursue? Describe the main elements of the successful strategic approach employed by CRH in a difficult industry environment.
As the products of this industry are standardized, stable and similar across the markets, the mode of production is also standard within the industry and involves unsophisticated processes. This provides little ground for the implementation of product differentiation strategy for the firms in this industry.
With low chances of differentiation and intense competition due to low barriers of entry, the most suitable strategy for CRH is to diversify through market penetration. CRH initiated the competitive strategy of vertical integration in the domestic market and acquisition-led diversification overseas. This made it possible for CRH to diversify its risks and gain more opportunities.
In addition, CRH has grown in the market through pursuing relentless market penetration through acquisition-led strategy. They have the best track record of its peer group of growing returns through acquisitions and the Group’s acquisition performance was well known widely. Finally, rigorous, comprehensive and inclusive, CRH’s acquisition strategy was singular in conception and execution and had proven very difficult to duplicate.

Q.2 Outline the nature of parenting advantage provided by the centre in CRH and the extent of value created.
Most of CRH's acquisitions continue to operate under their former names and management, while taking advantage of their parent company's strong market position and international infrastructure. CRH have provided their subsidiaries control, direction and assistance through its many years experience.
Overtime, pool of managers had increased, as a result of continuing growth and relentless acquisitions. Managers were drawn from internally developed operating managers, experienced finance and development professionals, and owner-entrepreneurs from acquired company, providing a healthy mix and dept of skills. CRH’s headquarter send those managers to its subsidiaries to spread parent company’s culture and standardize the execution and performance.
We find that headquarters’ investments into their own relationships with the subsidiaries’ contexts are positively related to the value added by headquarters. Furthermore, this relationship is stronger when the subsidiary itself is strongly embedded.

Q.4 In light of the challenges and opportunities facing CRH in 2010, develop a programme for Myles Lee and CRH senior management.
According to the case, CRH signaled that the start of the year 2010 had been affected by prolonged severe weather in both Europe and North America. Moreover, construction output was forecast to decline in the Group’s major market, with shining exception of Poland. However, the Group was strong operationally and financially and well positioned to exploit the prospective sector upturn and emerging opportunities, including consolidation. Moreover, the stock market looked to the Group for a benchmark level of acquisition spending of €1billion annually.
In order to survive and overcome those crisis, Myles Lee and CRH senior management should seek an acquisition opportunities to invest in Poland as it tend to have the lowest risk among its Group’s major market.
During a downturn period, it is important for businesses to look for new ways to maximize performance. One such way is to improve efficiency across operations. Another way is to reinvest capital through the use of retained earnings reserves in the existing facilities. This helps to improve energy and operational efficiency and to match capacity to meet current and future demand.