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e out any rubbish that can’t be recycled or shouldn’t be in that particular recycling line this doesn’t require high skills. The reason that it is not a Mass production is that there isn’t any variety between each product at the end (Evens, J. 1993).

The demand for the products and services the Kier Group plc produce usually depend on the economic state of the country but there are also other factors the affect the demand for the business. These factors include: globalisation, demand for more sustainable construction, demographic changes and increasing importance for technology use in construction.

The demand for the products and services that Kier Group plc produce usually depend on the economic state of the country but there are also other factors the affect the demand for the business. These factors include: globalisation, demand for more sustainable construction, demographic changes and increasing importance for technology use in construction.

The reason that the state of the economy affects the demand for Kier Group plc’s products and services is because buildings and infrastructure is capital which helps boost long term growth. These are the first things that are cut if the economy was to go into decline. When the recession hit in 2008 according to House of Commons there was a fall by 6.2% in gross value added for the construction industry, followed by a 7.9% fall in GVA, then an increase by 1.1% in 2011, and then followed by a 6.0% drop in GVA during the double dip recession (Rhodes, C. 2013). This data shows there is a correlation between the construction industry including Kier Group plc and the state of the economy.

The demand for more sustainable construction also impacts the stability of the demand of Kier Group plc’s products and services because if the business doesn’t offer the right amount of sustainable construction or by offering ‘green’ alternatives they may lose customers and clients. As new legislation is soon to be coming into action due to the UK’s recent air pollution issues this would mean a possible overhaul of more carbon producing processes. However to overcome this Kier Group plc currently generates 10% of its revenue by using recycled material, low energy alternatives and more sustainable materials (Fry, C. 2014)

Every business needs demand to be able to sell its good and/or services however you need to be able to have enough capacity to meet this demand. Capacity planning is vital in operations strategies. Capacity is best when it around 75-90% utilised. Having capacity between these levels means that you should still be able to cope with new clients without having to turn larger clients down and also you won’t be running with excess capacity. Excess capacity is a large cost on businesses and may lead to layoffs and department closures (Hill, T. 1991)

There are 3 different strategies that a business can use to plan capacity to meet demand. These policies are: Matching Capacity with Demand, Excess Capacity, and Capacity Shortage Policy. Matching capacity with demand means that the business tries to keep as close to demand as they possibly can.

This policy means that it sometimes has excess capacity in which it has the ability to get more clients or customers. However it also means there is a shortage of capacity. During these times a business would have to subcontract out work to get a short term increase