The Times 100 - Edition 13 - Tarmac Brief Case Study

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Tarmac

Tarmac's functions - working together towards its mission statement

Introduction

Tarmac is part of Anglo-American plc. This group is a big concern. It had sales of around £21 billion in 50 countries in 2005. Tarmac is 90% of Anglo American's Industrial Minerals division. Its name comes from the inventor of the road surface, John MacAdam. In fact, Tarmac does much more than just surface roads. Its mission statement is 'to be the first choice for building materials and services that meet the essential needs for the development of the world in which we live'. This statement underpins its core values. The statement affects planning and the whole culture of the business. This is spread across all of its functions.

Functions

Tarmac's main functions can be split into three parts. These are operations, technical and commercial.

Operations

Operations involves managing raw materials and supply. It also covers health and safety. Production is managed to meet customers' needs. New projects linked to sustainability are managed and ideas are shared across the company. Operations can be further split into:

  • production - making Tarmac's wide range of products
  • engineering - looking after plant and equipment.

Technical

Technical staff solve technical problems. They meet with customers to discuss issues. They ensure that products meet quality standards.

Commercial

Commercial staff deal with customers and suppliers. They lead on finding new and bigger markets. Good service is vital to both customers and suppliers.

  • Customers rely on good communication. They can suggest changes to Tarmac. Tarmac has shown that customer service is key through its 'Customer First' programme.
  • Suppliers are seen as strategic partners. Tarmac builds long-term relationships with them. It promotes the same high standards from suppliers as it has itself. These include ethics, safety and value for money. It also promotes new thinking.

Human Resources

HR makes sure that all staff share Tarmac's core values. It recruits and selects staff. It looks after training and development. Its job also includes making bonus payments and looking after pensions. It has its own website for graduate trainees. The website shows that Tarmac is a good place to work.

Strategy

Strategy refers to the set of plans that a business uses to try to reach its aims. Key teams involved in Tarmac's strategy are:

  • Marketing. This team finds out what markets want and feeds this into new products. It manages the Tarmac brand through a range of communication channels, both inside and outside the company.
  • Technical. This team searches for new solutions to problems. It looks for innovation or new thought. Good solutions hit two targets. They reduce costs. They also reduce environmental impacts.

Finance

All business have to manage finance well. This includes accounting, credit control and tax. Tarmac is a global business. It therefore also needs experts in foreign exchange.

Conclusion

Tarmac is large and complex. It needs a range of functions to be efficient. These functions must communicate with each other. In Tarmac, all share a common vision. They have core values. These are linked to the mission statement.

     
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