case 10

Luck Companies: igniting human potential

please help me answer the following questions.

. . . Type and level of diversification strategy employed by Luck Companies. Commonalities and differences of the company's various divisions. Different forms (please do a research on internet on different forms) of the multidivisional structure for corporate-level strategies compare them. Explain which form of the multidivisional structure is most suited to meet the needs of Luck Companies. Evaluate Charles Luck's ability to fulfill the strategic leadership responsibilities required of his position. Provide clear examples to support your assessment. Critique Charles Luck's handling of the unexpected events that occurred during the second phase of the company's Value Journey Describe Luck's current five year growth strategy and objectives. What tools and resources are in place to help the company to achieve its aggressive goals? What are the likely challenges the company will face in executing this strategy? . . negative circumstances, Mark and rest of the leadership team believed in the mission and worked to develop new values based leadership model that would make it happen. To guide them in this development, the senior cam members relied on the Company Core Ideology and Beliefs as well as the "Values Based Leadership Value Proposition presented below opportunity areas that were entified. For example, Vacation Donation Policy was created whereby employ ces could donate nud vacation time to other empley ces in need. Annoal Associate Engagement Surveys have become common practice lack Companies and the management team continually challenges themselves to achieve best in class performance your everyone Core Ideology and Belief *We believe all people are born with the extraordinary potential to make a positive difference in the world. We believe making a difference is a choice, a conscious choice that begin with our own self-awareness and alignment Values Based Leaders consistently make this choice then insure thers do the same, positively impacting the lives of those around them." Value Proposition: At Luck Companies we believe doing good (making a dif ference) is the best path to doing well business perfor mance, and Values Based leadership is how we do good and why we do well." In 2on, Charlie put step 7 into effect and had the senior leadership team collectively go through a robust 360-Assessment process where each leader received feedback on how their behavior was aligned with the model. After the 360-Assesment processes took place, the leaders went through an intense period of values development and behavioral management training. The years 2012-2014 were very busy for Chief Leadership Officer Mark Fernandes. In an effort to share the Luck Companies' story, mission, and beliefs about Values Based Leadership, Mark and his team traveled locally, nationally and internationally leading speaking engagements on the subject of VBL. During this time period, Mark and his team began to provide consulting services to a variety of organizations on the subject of VEL The HayGroup was hired to evaluate the Values Based Leadership effortat Luck Companies Management consultants from the HayGroup constructed a survey that aligned with the Values Based Leadership program at Luck Companies and 98% of the firm's associates completed the survey. The results of this survey were very favorable, placing Luck Companies among the top companies in the world for employee engagement. The results were even more favorable than those from a sim ilar survey that had been conducted in 2on and manage- ment immediately took action on the few problem and The Future of the Values Journey The management team at Luck Companies used the 2013 to 2014 time period to rationaline and reflect on all they had learned about Values Based Leadership. Through all of their engagements and efforts to drive impacto the subject locally and globally, they realized that they Deeded a platform that would better lend itself to ped moting this model on a large scale. Purthermore, the demand from companies and individuals for Info mation and coaching on VBL began to outpace Lack Companies capacity. To this end, a decision was made in 2014 to establish a Values Based Leadership Institute in ons, called Inner Will. Furthermore, Charlie decided that this institute would be established as a sou-(016) not for profit organisation Charlie stated that, "My belief from the beginning was to give this. (Values Based Leadership to the world with nothing in return." The institute will draw on internal leadership talent as well as acclaimed professionals in the leadership field to advance the institute's mission. Luck Companies will ultimately become a practitioner of the institutes work. Through Inner Will, management plans to accomplish the follow ing three goals that are part of "Vision 2015 First, to increase the "Number of lives Impacted through Values Based Leadership Second, to ensure that the "Number of values based leaders developed" is increased, and third. to increase "Our global reputation: Top 5" in the field of Value Based Leadership, Vision 2020 Over the past ten years, there have been many changes at Luck Companies, from the rebranding of business units to the restructuring of sales teams. However, one con stant throughout this time period has been the mission of Luck Companies to Ignite Human Potential through Values Based Leadership and positively impact lives around the world. The dedication to fulfilling this mis- sion has been without question and Luck Companies continues to deepen their impact on people both internally and externally. Internally. Luck Companies 0123 Har-Tru Grow product basket Other Sports Identify and add surfaces, equipment and accessories for other sports that can be sold through our sales channels Other Tennis Products Identify and add other surfaces, equipment and accessories for tennis that can be sold through our sales channels Innovation Develop new products cates a challenged to think about their own pur pose and and are encouraged and wided in their imentally fuck Companies dedicate a sig cant amount of art and resort initiatives nich as the founding of the non-profit founded by Luck Companies to drive Values Based Leadership ploballyWhile iting Human Potential has remained unchanged the "Vision for 2010 will bring significant change to the company. However, these changes are fueled by one constant, the belief in the mission to ignite Human Potential Three of the four Luck Companies' business units underwent or were in the process of undergoing an intense s-year strategic planning process in 2014 and nous. Each strategic plan was developed with a focus on supporting Vision 2010, the most aspirational five year Vision in the companys 9-year history. Vision 2010 is built on the following four strategic objectives and high- level definitions Financial Performance Advance the Mission for future generations by insuring the long-term finan cial health of the company Leadership Development and Succession: Ensure we are developing the environment where each leader has the opportunity to optimize their purpose, passion, and competency in a way that prepares the company for the future Business Excellence: Optimize time, energy, and tal ent in order to build a healthy, profitable, and high performance company Growth Challenge ourselves to intentionally rein vent the growth process in a way that brings value to the company and grow sales from $240M to 5450M. Broaden and deepen connection to the customer Develop new relationships in the markets we serve Develop relationships in new markets Deepen existing relationships and increase knowl edge and awareness to better meet customer needs Pilot windscreen measurement and installation ser vice through Century Sports Luck Development Partners Lack Development Partners is charged with managing the many land holdings of Luck Companies besides those being used for mining activities. Some of these properties include industrial parks and others are per mitted for mixed use including housing and retail. While Luck Development Partners currently manages these holdings, the future of this business unit will be revisited in late 2015 2020 Objectives and Goals by Business Unit The following objectives and goals were developed in 2014 and 21s for each individual Luck Companies' busi- bess unit: Luck Stone Center Luck Stone: The 2015-2020 Growth Engine The 2015 mantra at Luck Stone was growth. The Chief Growth Officer and Corporate Development Team have been supported with significant resources to deliver the majority of the financial growth for Lack Companies. Management had considered getting into some of the businesses that utilized their aggregate but had concluded that the risks were not worth the rewards. For example, they had an opportunity to pursue business operations in the asphalt industry, similar to the vertical integration of Vulcan Materials with concrete production, but decided that doing so would put them in direct competition with some of their largest and most loyal customers. Therefore, in order to meet their growth goal and nearly double revenue from $240M to $450M by 2020, management decided that growth would be achieved by increasing the Expand builder model to all target markets Reestablish account base with countertop strategy Increase man-made product sales Increase accessory sales Focus on operational efficiency and customer ser- vice improvements Continue culture and training initiatives C-124 sales of aggregate while also expanding the offerings and breadth of the other business units. In establishing this growth goal, Luck Companies will allocate son of avail able capital to growing the Luck Stone business unit, while the remaining on of capital will be focused on growing the lack Stone Center and Har-Tru business units Luck Stone accounts for over Box of the total rey enue of Luck Companies, and will continue to lead the firm's growth over the next five years. While Luck Stonel growth plans do not include vertical integration there are opportunities for innovative new products to hdp drive these growth efforts. For instance, manage ment has identified a growing demand for engineered soils and bio filtration media. Engineered soils and bio filtration media are used in retention ponds to filter contaminates in water run-off before it is released into streams or large bodies of water. Management believes that new regulations that focus on water quality and eco-friendly systems will make this a viable new oppor tunity for their Lock Stone business unit. Some of the key inputs to these soils are taken from the top layer of material that covers the stone at quarries, known as over burden. Over burden is typically removed to reach the material below and is stockpiled on site, often tak ing up valuable real estate. This market has been served through a small division of Luck Stone called Luck Specialty Products. In 2015. Luck Specialty Products was rebranded into Luck EcoSystems and is now aggres- sively entering the engineered souls market and seeking growth opportunities. While some new product offerings and innovations in the industry are possible, the almost doubling of reve nue for Luck Companies is to be accomplished primarily through a strategy of acquisition and internal growth. Some internal growth is possible given Luck's investment in equipment, processes and people during the past five years. In addition, the volume of aggregate sales in ons is still below peak levels, therefore some capacity in cur rent operations is available Luck Companies devoted considerable effort to iden tifying acquisition targets Maps were constructed of all the growth areas from Virginia to Texas and over Independent agregate producers in the targeted mar. kets had been identified. In late son and early aos Lack Companies pursued and/or explored potential opporto nities in Virginia, North Carolina, Tennessee. Alabama South Carolina and Maryland. These conversations were typically started with an introduction to Lack Companied culture and Values Based Leadership model. Many of the quarries that Lock Stone targeted as potential acquisi- tion opportunities were small to medium sized family owned companies. These companies and their owners, similar to Luck, view their employees as an extension of their own family. If and when the various agregate producers decide to put their companies up for sale, is the belief of Lack's management team that some will want to sell to Luck Companies because of their reputas tion of igniting the potential in their associates through values based leadership, thus having a positive impact on all they touch. These owners truly care about their people and therefore do not want to sell to one of the large industry conglomerates. Furthermore, by targeting small to medium sized family owned companies with similar values and beliefs to lack Companies, it is the belief of management that the integration of these com panies into Luck Companies will come with less hard- ship and burden. Luck Companies was off to a fast start in 2005 with many "irons in the fire". The largest plant expansion in Luck Stone history was underway at Ball Run. Luck Stone Center was embarking on a new business strategy under a new brand. Luck EcoSystems was developing new products in a relatively new market and growing rapidly. Har Tru completed their first "turn-key tennis court installation supplying everything from court matt rial to netting and all other accessories Inner Will had put a board of directors and strategic development team in place and had submitted an application for soi(c)() status. Luck Companies overall was poised for tremen- dous growth over the next five years As Charlie reflected back on his time as CEO and thought forward to 2020 and beyond to future generations, he stated, "The firm is in strong financial condition and has many associates who have untapped potential and we need to give them opportunities to realize their wildest dreams. I feel a deep responsibility to handoff this company to the next generation of associates and family who will have signif- icant opportunities for decades into our second century of running a family business Side Note: In the northern region of Virginia, the Luck Stone Fairfar Plant has nearly reached the end of its reserve life. In antic- ipation of this event, Luck Stone has invested nearly 540 million into their Bull Run Plant, which is only ten min utes from Fairfax, to back fill demand from Fairfax By 2016, the Bull Run Plant will have the capacity to produce 5 million fons per year, making it the largest of any Luck Stone plant