1 / 27

Competitive strategies for Swiss industries Philip Mosimann, CEO

Competitive strategies for Swiss industries Philip Mosimann, CEO. Contents. Brief portrait of Bucher Industries Pre-conditions in Switzerland Examples of competitive strategies Some personal considerations Discussion . Our businesses – since 1807. Agricultural implements

lynne
Download Presentation

Competitive strategies for Swiss industries Philip Mosimann, CEO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Competitive strategies for Swiss industriesPhilip Mosimann, CEO

  2. Contents • Brief portrait of Bucher Industries • Pre-conditions in Switzerland • Examples of competitive strategies • Some personal considerations • Discussion

  3. Our businesses – since 1807 Agricultural implements World’s leading manufacturer of specialised agricultural machinery for tillage, seeding, fertilisation, spraying, landscape maintenance, hay and forage harvesting, livestock bedding and feeding. Sales CHF 1000 m Employees 4 500 Municipal vehicles European and Australian market leader in municipal vehicles, offering a whole range of compact and truck mounted sweepers, winter maintenance equipment and refuse collection vehicles. Sales CHF 400 mEmployees 1 500 Hydraulic systems International leader in the design and manu-facture of custom mobile and industrial hydraulic system solutions, offering an array of products encompassing pumps, motors, valves, power units, elevator drives and control systems. Sales CHF 400 mEmployees 1 700 Glass container machinery World market leader in glass container manu-facturing and inspection machinery, offering a portfolio ranging from glass forming and inspection machinery to complete production lines and components for the glass container industry. Sales CHF 350 m Employees 2100 Small businesses Machinery and equip-ment for winemaking, systems and machinery for processing fruit juice, instant products and dewatering sewage sludge as well as the Swiss distributorship for tractors and agricultural machinery. Sales CHF 200 m Employees 600

  4. Major manufacturing sites worldwide

  5. Bucher group strategy (1) Principles • “Stakeholder approach” with long term, industrial view • Increase of enterprise value (RONOA>>WACC) • Businesses with worldwide technology and market leadership with #1 to #3 market positions • Profitable growth, where profit growth is prioritised • Focus on organic growth enhanced with specific targeted acquisitions strengthening existing businesses • Strong balance sheet with high liquid funds for independance from banks and stock exchange

  6. Bucher group strategy (2) Implementation of principles: • Do what we understand: machinery and vehicles • Do what we can best: “Best owner” of our businesses • Do what we can handle: number of businesses 4 to 6 • Do what we can finance: Cash-flow and growth • Do what creates value: Innovation and profitable growth Consequences in group management • Lean and decentralised management structure • Lived entrepreneurial attitude with common methodologies • Balance of trust and reasonable controls

  7. Pre-conditions in Switzerland • Generell environment • Excellent infrastructure for business, living, and leisure • High security level politically, socially, financially • Internationally open society, entrepreneurial freedom, competitive tax systems both in business as well as in private • High cost country with strong currency • Education and innovation • Universities, technical high schools, dual education system • Established knowledge transfer fro universities to businesses • Swiss businesses • No or very small home market • Quality, reliability, innovation, automisation, work ethics • World champion in exports per capita

  8. FOREX issues – a new phenomena? USD / CHF

  9. Euro – Problems with previous currencies and related governmental behavior? EUR / CHF

  10. Competitive strategiesTopics on any board agenda • Access to main markets which are outside Switzerland • Manufacturing at one place, export worldwide • Split of value & supply chain: why, how? • Protectionism today and tomorrow • Which technologies for which markets • What can we do better here than elsewhere? Why, how? • What exactly means “better” – customers decide! • For which technologies, products, applications is “Swiss made” the best solution? For which ones not?

  11. Internal & external growth Investments: 70% internally, 30% externally Net sales CHF million

  12. Acceleration of structural change CHF million 2008: Net sales CHF 2.8 bn 8‘400 employees 2004/06: Divestment Laeis Division 1998: Acquisition Emhart Glass 1996: Creation of divisions 1986: Public offering Net sales CHF 0.4 bn 2‘730 employees 12 Acquisitions Focus Europe, first transaction in Asia 1 Divestment 5 Acquisitions USA, CN, Europe1 factory closed 1 Divestment 23 Acquisitions EU, USA, India, Brasil 6 factory closed 8 Divestments 3 Acquisitions in DT and FR

  13. Global Footprint (1) 1807 - 1990: Focus Europe (CH, FR, GE)

  14. Global Footprint (2) 2012: 36 production sites worldwide

  15. Acquisition… 2002 Knight Manufacturing, Brodhead, USA

  16. …integration and internal growth Agricultural machinery, Brodhead today • USD 30 million invested in buildings since 2003 • Total campus: 13 ha + 32 ha testing area 2006 2008 2004 2011 2008 • Number of employees doubled in the last 6 years

  17. Production and R & D Glass container industry 2007 R&D Center Windsor (USA) 2008 Johor Bahru (Malaysia) 2011 Majority interest in Sanjin (China)

  18. Swiss success story (1) Hydraulic systems, Frutigen 2000 1974 – 1993 Bei der Übernahme 1997 Heute

  19. Swiss success story (2)Hydraulic systems, Neuheim • Bilder folgen

  20. Swiss success story (3)Municipal vehicles, Ventspils, Latvia

  21. Swiss factory (1) High automisation

  22. Swiss factory (2) Automated manufacturing

  23. Swiss factory (3) Rationalised assembly & testing

  24. Swiss owned & run factory (4) Manufacturing and assembly WTO 27 March 2012

  25. Investments since 2002

  26. Personal considerationsCometitiveness in Switzerland • Expand excellent pre-conditions in Switzerland • Intensify co-operation with universities • Innovation and R&D: Continuity as success factor • Make structural changes fast; position company in major markets • Adapt supplier base to major markets • Permanent modernisation and automisation of factories • Create culture of continued improvement „Kaizen“ • Secure strong balance sheet and financing in good times • Understand FOREX hedging as buying of time • Build dedicated, competent and creative work force

  27. Thank you for your kind attention

More Related