Marketing Strategy
CASE STUDY
Paul Harvey Construction PLC
1.) Introduction
Paul Harvey is a traditionally organized company which is narrowly specialized. The company is not risk accepting and reluctant to change in accordance with market changes. It is regionally organized and centralized. 90 % of operations in terms of turnover are in UK, while 10 % are in joint-ventures with a French company in Spain, Holland, Australia and the US.
Paul Harvey is not market oriented, does not try to take over new segments of market and it is not sensitive to market changes.
Company is by type of work divided into 9 divisions which have following shares in turnover in 2002:
EU Building and Engineering 30%
Civil Engineering 20%
Industrial Engineering 14%
Homes 14%
Overseas 10 %
Development 7%
Plant and Transport 3%
Products and other trading 2%
In EU building and Engineering Division which is in terms of turnover and profits largest division of the company with 30 % of share in turnover, serves:
Commercial sector 30%
Industrial sector 26%
Government 31%
Repair and maintenance 8%
Due to recession in recent years company increased number of smaller projects with smaller profit margin.
2. Strengths and weaknesses
Weaknesses
Strengths
– mechanistic organizational structure – high technical skills
– poor flexibility – corporate identity
– lack of good marketing strategy – good commitment and morale
– poor market research – good company image in public
– poor extent of
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