Political

·         Brexit, Threat. Uncertainty about (limiting of) free movement of people and goods is causing manpower and supply shortages (1).

Economic

·         COVID-19, Threat. Insufficient workforce, ban on construction activities and disruptions to the supply chain due to lockdown and other measures (2).

·         Shortage of housing in London and SE UK, Opportunity. (3)   

Socio-cultural

·         UK population growth, Opportunity. UK population is projected to grow by 3.7% by 2030 (4) which will result in increase of demand for housing. 

Technological

·         Building Information Modelling (BIM), Opportunity. An innovative initiative designed to significantly increase productivity within the Architecture, Engineering, and Construction (AEC) industry (5).

Ecological

·         Net Zero carbon and decarbonisation, Opportunity. An initiative to accomplish net-zero emissions by 2050 (13).

Legal

·         Real Estate Regulations in the UK, Threat. Several regulations must be met by firms in the industry, including Housing Act, Minimum Energy Efficiency Standard Regulations, and Heat Network Regulations. (6).

Resource

Explanation

Highly skilled workforce, Strength

1,735 male and 970 female highly skilled employees in 2021 (11).

Land plots, Strength

58,413 land plots across 98 sites (include 7,855 contracted land plots), which represents over 10 years’ supply of land (11).

Brands, Strength

Berkeley is the original brand, and St George, St James and St Joseph are owned by the Berkeley Group. St Edward and St William are a joint venture with Berkley group (11).

Berkeley Modular, Strength

Established to provide volumetric modular housing solutions specifically for the Berkeley Group (11).

Product portfolio, Strength

Due to its diversified property portfolio (family homes, country houses, apartments, mixed-use and commercial developments, and recreational facilities), Berkley Group enjoys a stable position among its competitors (2).

Ratio

2021

2020

Interpretation

ROCE (%)

12.98%

12.6%

Stable performance, even a slight increase in ROCE.

Current ratio (times)

3.07

2.74

Low risk in both years; year on year improvement.

Gearing (%)

7.75%

8.05%

Gearing is low meaning that he risk is low too. A slight decrease year on year.

Interest Cover (times)

52.32

40.15

They can easily afford their current borrowing.

Infrastructure

Berkley 2030 Vision: Transforming Tomorrow

Human

Resource

Management

Training Programs and Academy Schemes for staff development

Consumer Code for Home Builders

Berkley foundation

Technology

Development

(R&D)

Using Building Information Modelling

Developing MyHome Plus online portal

Procurement

Partnership with Travis Perkins

Using help to buy Scheme

Support activities

           Primary      

           activities

Inbound logistics

Lean procurement and logistics

Operations

Focus on large scale brown field sites

Providing energy efficient properties

Safety and quality

Outbound logistics

Participating developments

Marketing and sales

Direct Sales

Treating home buyers fairly

Services

Customer communication

Supporting Vulnerable People

Build Warranty

Competence / activity

(All Strengths)

Valuable

Rare

Inimitable

Supported by the Organisation

Implications (distinctive or Core competence)

Berkley 2030 Vision: Transforming Tomorrow

P

P

P

P

Core competence

Lean procurement and logistics

P

X

X

P

Distinctive competence

Customer communication

P

P

P

P

Core competence

Direct sales

P

X

X

P

Distinctive competence

Safety and Quality

P

X

X

P

Distinctive competence

Competence

Berkley 2030 Vision: Transforming Tomorrow

Valuable

Tackling the global climate emergency by creating resilient low-carbon buildings (value for customers).

Rare

No competitor can match Berkeley’s ability to accomplish its vision before 2040 or 2050 (12).

Inimitable

Berkeley’s Modular Factory, which produces sustainable materials and operates at low emissions (thus contributing towards vision 2030), is inimitable.

TOWS

Strengths

1.       Berkley 2030 Vision

2.       Lean procurement and logistics

3.       Customer communication

4.       Direct sales

5.       Safety and Quality

6.       Highly skilled workforce

7.       Land plots

8.       Brands

9.       Berkeley Modular

10.   Product portfolio

11.   …

Weaknesses

1.       Decrease in cash and cash equivalents

Opportunities

1.       Population Growth Rate

2.       Building information modelling (BIM)

3.       Housing Supply Shortfall in London and South-east

4.       Net Zero carbon and decarbonisation

S-O

S1,S2,S5,S6-O1,O3,O4

Build and develop net-zero carbon residential building

S1,S2,S5,S6-O1,O4,

Build and develop net-zero carbon commercial building

W-O

Threats

1.       Manpower Shortage

2.       Brexit

3.       Interruptions to supplies due to COVID19

4.       Real Estate Regulations in the UK

5.       Substitutes (5 Forces)

6.       Rivalry (5 Forces)

S-T

S1,S4,S5,S6,S8,S9- T1, T2,T4 Develop market in Europe Country

W-T