CASE Creative Construction Company (CCC)

The given case is an international construction company, which is an invented case but will have similarities to existing businesses. Information not provided in this material may be taken from typical real-world cases out of the industry; but must be supported by current active reference material.

The key facts are:

21. The Creative Construction Company has its main offices in Birmingham, UK. It currently manages over 3000 construction projects per year and has a typical procurement spend value of 2.5Bn (2.5 billion pounds) in the UK alone.
22. The company is an international giant, employing over 20,000 people worldwide across all function or disciplines (e.g. Operations, administration, HR, finance etc.) with offices in Lyon, Amsterdam, Madrid, Berlin, Munich, Budapest, Sofia, Ankara, San Francisco, Houston, Kansas, Chicago, New York and Montreal.
23. The company has never addressed the problems it faces with volatile procurement prices of raw materials, finished goods, logistics and transport services, technical expertise and equipment across its portfolio of global projects.
24. This is now a major focus of the Board of Directors as they feel it is restricting growth for new projects and limiting access to new yet untapped markets. In addition to the procurement issue, many believe this is also due to problems such as seasonality issues for labour and transport, unpredictable weather conditions, social and environmental restrictions in the local project areas etc.

Creative Construction legacy issues due to their successful growth in recent years:

21. Procurement has not been a strategic focus of the company and is traditionally managed locally at the construction sites across the globe.
22. This has reduced the potential for leveraging purchasing volumes of core products (concrete, steel, glass etc.), transforming and developing supply chains, access to skilled workforce and technical expertise.
23. A lack of central co-ordination and management of procurement is believed to be at the core of the issues now under investigation by the Board of Director

please provide the answer for this question below i need 2000 word

4. Ethical Practices

40 Marks

Consider the ethical and environmental issues, specifically relating to procurement, that may affect a business like CCC with special consideration for the production, handling, transportation and disposal of the three product types; Concrete, Steel and Glass identified in Question 1. Consider any issues with the distribution and storage of these product types that affect this type of industry.

You should support your response with relevant examples from construction or other industries or your own experiences.