Emerson Electric Company Mcs
EMERSON ELECTRIC COMPANY
Table of Contents Company Overview 3 Organizational Structure 3
Strategy and Strategic Objectives 3 Corporate-Level Strategy 3 Business Unit Level Strategy 3
Situational Analysis 3 Porter’s 5 Forces Analysis 3 Key Success Factors (KSFs) 3 Boston Consulting Group (BCG) Matrix 3
Management Control Systems 3 Controls Needed To Meet The Best-Cost Producer Strategy 3
Conclusions 3
Appendix A – Organizational Structure 3
Appendix B – Staff Size Compared to Company Size iii
Appendix C – Boston Consulting Group (BCG) Matrix iii
Bibliography iii
Company Overview
Emerson Electric Company was founded in 1890 as a manufacturer of motors and fans. Today, Emerson is a major domestic electrical manufacturer. It manufactures a broad range of electrical, electromechanical, and electronic products for industry and consumers. In 1993, Emerson reported $708 million profit, which marked the 36th consecutive year of improved earnings per share. In addition, Emerson had $2 billion in unconsolidated sales in international joint ventures. International sales have grown to forty-percent of total sales and present a promising growth area for the company.
Organizational Structure
Emerson was organized into forty decentralized divisions consisting of separate product lines with the goal to be number one or two in the market for each product line. After 1990, Emerson reorganized its forty divisions into the following eight business segments: 1. Fractional Horsepower Motors 2. Industrial Motors 3. Tools 4. Industrial Machinery Components 5. Heating and Air Conditioning Components 6. Process Control Equipment 7. Electronics and Computer Support System
This new structure exploits common distribution channels, organizational capabilities, and technologies. To encourage open communication and interaction among all levels of employees, Emerson does not publish an official organizational chart but we have created
Table of Contents Company Overview 3 Organizational Structure 3
Strategy and Strategic Objectives 3 Corporate-Level Strategy 3 Business Unit Level Strategy 3
Situational Analysis 3 Porter’s 5 Forces Analysis 3 Key Success Factors (KSFs) 3 Boston Consulting Group (BCG) Matrix 3
Management Control Systems 3 Controls Needed To Meet The Best-Cost Producer Strategy 3
Conclusions 3
Appendix A – Organizational Structure 3
Appendix B – Staff Size Compared to Company Size iii
Appendix C – Boston Consulting Group (BCG) Matrix iii
Bibliography iii
Company Overview
Emerson Electric Company was founded in 1890 as a manufacturer of motors and fans. Today, Emerson is a major domestic electrical manufacturer. It manufactures a broad range of electrical, electromechanical, and electronic products for industry and consumers. In 1993, Emerson reported $708 million profit, which marked the 36th consecutive year of improved earnings per share. In addition, Emerson had $2 billion in unconsolidated sales in international joint ventures. International sales have grown to forty-percent of total sales and present a promising growth area for the company.
Organizational Structure
Emerson was organized into forty decentralized divisions consisting of separate product lines with the goal to be number one or two in the market for each product line. After 1990, Emerson reorganized its forty divisions into the following eight business segments: 1. Fractional Horsepower Motors 2. Industrial Motors 3. Tools 4. Industrial Machinery Components 5. Heating and Air Conditioning Components 6. Process Control Equipment 7. Electronics and Computer Support System
This new structure exploits common distribution channels, organizational capabilities, and technologies. To encourage open communication and interaction among all levels of employees, Emerson does not publish an official organizational chart but we have created
Bibliography: 1. Management Control Systems: Twelfth Edition. Robert N. Anthony and Vijay Govindarajan. McGraw-Hill Irwin 2007. 2. The Strategy Concept 1: Five Ps for Strategy. Henry Mintzberg. California Management Review 1987 3. The Strategy Concept 2: Another Look at Why Organizations Need Strategies. Henry Mintzberg. California Management Review 1987.