The Times 100 - Edition 13 - Tarmac Case Study Summary

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Tarmac

Tarmac's functions - working together towards its mission statement

Introduction

Tarmac is part of Anglo-American plc, a group which in 2005 had sales of around £21 billion in 50 countries. It is 90% of Anglo American's Industrial Minerals division. Although its name comes from the inventor of tarmacadam, John MacAdam, it 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'. The mission statement is used to underpin corporate values, planning and culture in all of its functions.

Functions

Tarmac's main functions are divided into operations, technical and commercial areas.

Operations

Operations involves managing raw materials, health and safety, the supply chain and production to make sure that customers' needs are met. It also manages the sharing of ideas across the company and sustainable projects. Operations can be further split into two areas. These are:

  • productions operation and management - making the wide range of products and services that Tarmac produces
  • engineering - developing and maintaining the plant and equipment.

Technical

Technical staff solve technical issues, liaise with customers and ensure that products meet national and international quality standards.

Commercial

Commercial staff deal directly with customers and suppliers and take the lead on developing markets. The service aspect of Tarmac's operations is vital in both customer and supplier relationships.

  • Customers are asked to suggest improvements. Good communication in both directions is seen as key. Tarmac has shown its commitment to customer service through its 'Customer First' programme.
  • Suppliers are seen as strategic partners with which Tarmac can build long term relationships. This includes expecting the same high standard from suppliers as it promotes itself, including safety, value for money, innovation and ethical working.

Human Resources

HR makes sure that Tarmac's core values are shared across all staff. It carries out recruitment and selection and makes training and development opportunities available. It also monitors bonus payments and pensions. It has its own website for graduate trainees designed to show that Tarmac is a good place to work.

Strategy

Strategy refers to the set of plans which a business uses to try to reach its aims. Key teams involved in strategy development are:

Finance

Good financial management is vital to the success of any business. This involves accounting, credit control and taxation, as well as financial expertise in global transactions involving foreign currency.

Conclusion

Organisations like Tarmac are complex, and need a range of functions to support their efficient operation. These functions must communicate with each other and all share a common vision, linked to the mission statement.

     
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