Océ Presentation Lecture 5.1
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Océ aims to be a top 3 player in select markets, achieve 13% return on capital employed, 5% organic revenue growth, and maintain gross and balance sheet ratios from 2007-2010. The three strategic initiatives are distribution power through expanding distribution alliances and sales force, innovation in product portfolio through new products and services, and operational excellence through reducing supply chain costs and optimizing processes. Key risks are market, credit, and liquidity risks.
Océ Presentation Lecture 5.1
- 1. Océ Critical Success Factors, Quality, and Risks
- 2. Strategy 2007-2010 Aims: Top 3 spot in select markets RoCE 13% Organic revenue growth 5% Maintain gross margin 40.8% Maintain balance sheet ratios
- 3. Strategy 2007-2010 Three Strategic Initiatives: Distribution Power Innovation in Competitive Portfolio Operational Excellence
- 4. Distribution Power Continuing & expanding distribution alliances (Fujifilm, Konica Minolta, Founder) Expansion sales force (organic expansion) Vertical integration (M&A expansion) (e.g. Imagistics, Intersoft) Earning major contracts Maintaining 24/7 service force Maintaining customer-driven sales force
- 5. Innovation in Product Portfolio New product development Offer a full portfolio by adding OEM products where no own (alliance with KonicaMinolta) New services products R&D focus on unique strengths – wide format color
- 6. Operational Excellence Reduction in supply chain costs Harmonization of business processes and IT systems Optimization of working capital (incl. reduction inventory) Savings in non-product related procurement, out-of-pocket costs Headcount reduction Involvement of the ‘Social Partners’ Further centralization of capital markets presence Keeping restructuring costs low
- 7. Design Quality Relatively easy to use High display quality Low use of energy High speed Low costs for supplies and maintenance High productivity Functionality Low total cost
- 8. Conformance Quality Increased market share for 6th year at a row in US Market leader in US (60%) Awards
- 9. Risks Market risk Credit risk Liquidity risk
- 10. Conclusion