Comparison Of Brickworks Limited With CIMIC Group Limited

Background of Brickworks Limited and CIMIC Group Limited

This report compares and contrasts the company Brickworks limited with the company CIMIC. This report will highlight the major strategy and the operation of both companies (Park, 2020). The study includes the facts and the comparison of their structure, people, market segments, risk, finance, proprietary system, and the new initiatives. 

Brickworks Limited is one of the largest publicly listed brick companies which drives and makes the revenue from manufacturing the building products. It was founded in June 1934 in NSW. Soul Pattinson and company limited owns the major share of Brickworks with a 44% majority share (Verdes, 2019). The managing director of brickworks limited is Lindsay Partridge. The number of employees in Brickwork is around 1958 full-time employees. The products of Brickworks limited include Bricks, pavers, blocks, timber products, and roof tiles. The moto of the company is to ensure the REA (Remote Executive Assistant) is the great success drives for their customers.

CIMIC Group Limited is an Australian contractor. It is active in engineering, telecommunications, environmental services industries, infrastructure, property and building, resources, and mining. It was founded in 1949 and the founder of the CIMIC is Stanley Leighton (Jenkins, 2019). The CIMIC stands for “Construction, Infrastructure, Mining, and Concessions”. Around 32,579 employees work under the CIMIC group across 8 locations. The moto of the company is to generate the returns for their shareholders by delivering more projects to the clients.

Brickworks uses the sustainability approach to recognize the social impacts and the sustainable environment to attain its competitive advantage. This company emerges and adopts the expansion strategies by providing some innovative and effective products to the target market (CIMIC, 2022). Brickworks has a diversified structure which delivered stability of generating from long term revenues whereas the strategy of CIMIC group has a disciplined approach which helps in generating the sustainable returns for the shareholders and it helps to deliver their mission in building a portfolio of complementary capabilities across the assets, resources and the infrastructures to extend the ultimate value. The operations of the CIMIC groups focused to make the business of construction better and more efficient.

Brickworks Limited has a structure that diversified its delivered stability of earnings from the long term. The division of brickworks group structure includes Building products Australia, property, building products north America, and investments. Building products in Australia is one of the leading distributors of building products across Australia which provides Australian bricks, austral precast austral masonry, and bristle roofing (Wardle, 2021).  In North America, the brickwork leading position spread across Midwest, and Mid-Atlantic states. In contrary to the structure of the CIMIC group businesses which includes: CBP contractors, Broad, Leighton Asia, Thiess, Sedgman, Pacific Partnerships, UGL limited, Venetia, EIC activities. CIMIC group provides different services like construction, services, mining, consultancy, and public-private partnership.

Brickworks employees and other workers include 1181 total workforce in Australia and 777 total workforces in North America (Park, 2020). The female breakdown in the workforce includes 20.9% in Australia and 17% in North America. Female senior executives include 27.3% in Australia and 15% in North America (Park, 2020). The average age of employees includes 43.1 in Australia and 46.5 in North America. Aged employees over 50 include 32.3% in Australia and 46.1% in North America in contrary to CIMIC groups around 40200 employees work under the company across 20 countries (Verdes, 2019). Around 88% of direct employees completed code of conduct training, around 2250 employees engaged in high-risk roles, 10,254 employees took face-to-face EEO (Verdes, 2019).

Strategies and Operations of Brickworks Limited and CIMIC Group Limited

The trade of the Brickworks focused on a dynamic and innovative group that provides building material and specifically focused on investment, property, distribution, and manufacturer for the commercial and residential market. The clients of the brickworks include enterprises, consultants, government bodies, SMB, entrepreneurs, and professionals (Yacob, and Au-Yong., 2022). The projects of the brickworks include cement, timber, roofing, masonry, and precast whereas the trade of CIMIC groups focused on providing better services to their target customers. Australia-Singapore military training initiative, west gate tunnel, cross river rail’s systems, and integration package, Dawson south mine, Byerwen operations, stations, and development package are the projects of the CIMIC group.

The patent was provided to the brickworks limited on August 6, 2019 and the patent number of Brickworks building products is D911556 (Wardle, 2021). The intellectual property of the company brickworks is owned by soul Pattinson and company limited which is the first largest shareholder. Robert Millner and Milton corporation limited are the second and third largest shareholders. Whereas in CIMIC groups, the patent was provided to the company in December 2015. The patent number of the CPB contractor is 79180493 (CIMIC, 2022). This intellectual property is owned by the CIMIC group. CMIC group owned the Thiess, EIC, Venetia, and BI contracting property.

Table 1. Financial Statement

According to this financial statement, the brickworks show a profit of 206015 thousand dollars whereas in CIMIC shows the loss of 15610 thousand dollars (Market Screener, 2020). The direct cost relates to the acquisition in Brickworks is around 6403 thousand dollars whereas the direct cost of the CIMIC group is around 12545 thousand dollars (Market Screener, 2020).

Risk management of the brickworks includes Credit risk management, Operational risk management, and market risk management. Credit risk management includes the development of scoring and rating of the models, vendor grading framework (Leighton, 2017). Operational risk management includes the estimation of historical loss events and the data, Market risk management includes computation of portfolio, Validation, and preparation of stress testing policy whereas CIMIC group define the risk management framework which is continually focused, assess and treatment of the risk which has the potential impact on people, operation, reputation and the financial prospectus of the group.

The new initiative of the brickworks is informed by the GRI (Global Reporting Initiative) standards. As this is one of the largest leading manufacturing companies of quality building in Australia. The Brickworks purpose sustainability at their core is to initiate and create beautiful products that remain last forever (Market Screener, 2020). This design of sustainability offers greater resources and energy to provide better efficiency over the lifetime of the building. In contrary to the new initiative of the CIMIC group includes the comprises their construction of business CPB contractor to provide better service to their target market.   

The brickwork company helps in manufacturing the brick, focused on marketing and distributing the clay products mostly in Australia and North America whereas the CIMIC group is a contractor company in Australia. The company provides world-leading manufacturing, mining services. This group business has a diverse and proud history of redefining the construction and engineering service (Miller, 2019). The strength of the CIMIC group includes the high level of customer satisfaction, better returns on capital expenditure, reliable customers, a strong network of distribution, highly skilled workforce, a strong brand portfolio whereas in contrary to the strength of the Brickworks which include strong free cash flow, successful track record, strong dealer community, and better performance in new markets. The weakness of each company includes the similarity in their company which is the profitability and the net contribution of both the company are limited, Stock is high compared to their competitors, Limited success outside the core business, need more investment in new technology.     

Both the company have their values in the market which includes the major issues in the market. This is highly recommended that spending more on economic uptick can make their profitability ratio better for both the company. The company needs to use the marketing strategy to advertise their invention and facilities which increases the demand forecasting of their product and service which leads to higher revenue in comparison to their competitors. This study endorses both the company to make more investment in the technology which helps to increase their core business in the targeted market (Ross, 2015). This study recommends that the CIMIC should make efficient and proper financial planning which helps in reducing financial losses. Both the company should focus on their intense competition. Both the Company need to focus on more expansion strategies to grow in the market of local distributors which can present an opportunity in the target market which help in attaining the competitive advantage.      

Conclusion

This study comprises the major strategy and the operation of both companies. An expansion strategy helps to expand the business in the market. Brickworks uses this expansion strategy which leads to expanding the service to their target market. As a result of this study investing more in the technology helps in increasing both the company revenue. Proper financial planning helps in decreasing financial losses. 

References

CIMIC, 2022. Asset, infrastructure and resources leader of CIMIC Group. [Online] Available at:

https://www.cimic.com.au/Asset-infrastructure-and-resources-leader-of-CIMIC-Group/[Accessed 24 January 2022].

Jenkins, L., 2019. A CIMIC contribution to assessing progress in peace support operations. International Peacekeeping, 10(3), pp.121-136.

Leighton, 2017. Governance of leighton: Supporting the misson and principle. [Online] Available at:

https://www.leightonasia.com/en/our-company/governance[Accessed 24 January 2022].

Market Screener, 2020. CIMIC GROUP LIMITED (CIM). [Online] Available at:

https://www.marketscreener.com/quote/stock/CIMIC-GROUP-LIMITED-21890656/news/CIMIC-Group-s-UGL-Secures-297-Million-Locomotive-Manufacturing-Contract-36576993/[Accessed 24 January 2022].

Miller, J., 2019. Risk Models and System of Bricksworks. [Online] Available at: https://www.brickworksanalytics.com/risk-models.aspx[Accessed 24 January 2022].

Park, H., 2020. Annual Report , Melbourne Victoria: Brickswork Limited.

Ross, W., 2015. SWOT Matrix Strategies Objective of CIMIC Grou. [Online] 

Available at:

https://fernfortuniversity.com/term-papers/swot/nyse/4231-cimic-group-limited.php#:~:text=Strengths%20of%20Cimic%20Group%20Limited%20%E2%80%93%20Internal%20Strategic%20Factors&text=High%20level%20of%20customer%20satisfaction,equity%20among%20the%20potentia[Accessed 24 January 2022].

Verdes, M. F., 2019. Annual Report, New South Wales: CIMIC Group.

Wardle, J., 2021. Brickworks purpose has sustainability approach. [Online] Available at:

https://www.brickworks.com.au/Brickworks-purpose-has-sustainability-approach[Accessed 24 January 2022].

Yacob, S., and Au-Yong., 2022. Factors Contributing to Building Defects. Managing Building Deterioration, pp.41-63.

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