La Societe Belge d’Electricite Place of meeting: room 434
List of participants: Turik Lilia- chairman Maria Shurakova- the financial manager Kate Boltunova- the production manager Elena Gladysheva- the sales manager Kate Klimanova- the quality control manager Ann Muravitskaya- the marketing manager Kate Metelitsya- the director of human resourses
Items on the agenda: which markets we most need to concentrate where we need increased production facilities which competitor(s) we should aim to take over
Candidates Firm, country Pros Sunnschein, Germany *would make SBE № 1 in Europe *makes good quality products *Germany is only major market where SBE has no factories *SBE needs production facilities in Germany (Europe) Madeburg Motor, Germany *would create balance between light and heavy motors Torredos, Spain Cons *SBE already has Spanish factory. *Spanish firm taken over in 1994 was difficult to integrate into group CGE, UK *cheap to buy *importance of UK market Bolton Electric, UK *would create balance in SBE group between heavy and light motors *small firm so cheap to buy and easy to handle *financial difficulties
Major problems: Imbalance of our European production structure Balance between light and heavy motors
Bolton Electric (UK) Make forklift motors guarantees a safe and have a good working environment 24 hour emergency service department
Magdeburg Motor (Germany) produced almost 3600 motors per year The most of them in use world-wide develop and strengthen its position as engine manufacturer with its own marketing of spare parts and service.
ts e id Eu 5% pe ro rs he ot 5 ou ce 10 en ed Sw 14% an 15 Fr y in ita Br an ain x 20 m er Sp lu ne ly % G Be Ita Percentages of sales, % 20% 19% 17% 13% 3% 5% 4% 0
La SBE
We will be leaders with Sunnschein Company’s market share Company’s name Market share Small companies 25% SBE 8% TXU Energy 7. 1% Bolton Electric 5. 4% Bonnie Drive 7% Sunnschein 23. 5% Torredos 6% Edison 6. 1% CGE 6. 2% Madeburg Motor 5. 7% Total market share – 31. 5%
BENEFITS OF COOPERATION Sunnschein
FINANCIAL DIFFICULTIES OF SUNNSCHEIN Time to take over
FINANCIAL DIFFICULTIES OF SUNNSCHEIN
Current situation in Sunnschein 5 Losses of Sunnschein 2009 -2012 (bn. euro) 4. 5 4 3 2 1 0 0 2009 0. 7 2010 1 2012 Productivity in Sunnschein 2009 -2012(%) 100 80 50 67 75 22 0 2009 2010 2011 2012
German customers like to buy from German firms. Belgian company take over Sunnschein(Germany) Loosing contracts with German firms(Bosch, Miele)
A takeover of Sunnschein + No contracts with German customer s Very low productivity No factories in German Company in trouble
Quality, % The quality of products in European countries 100 90 80 70 60 50 40 30 20 10 0 Germany Italia Belgium
SITUATION IN GERMANY
Our takeover: 1988 – Italian firms 1994 – Spanish factory
Results: Italian firms – no problems, good integration, increasing in profits; Spanish firm – problems in management, rejection of new head of firm, desire to be independent, decreasing in production etc.
To analyze the causes of problem we organize an interrogation the number of participants of interrogation 560; place where the survey was conducted – SBE Spain subsidiary; we ask every employees and employers one question : - “Why don’t you want to cooperate with your head office? ”
Results of interrogation
Growth forecast in the European electric motors market(2013 -2018), % 16 16 14 14 12 12 10 9 8 10 Britain 8 Germany 6 Spain 4 2 0 2013 2014 2015 2016 2017 2018
Important customers building new plant in Spain
What about Torredos? Household electrical goods market (2012), % 8. 2 Torredos Other firms 91. 8
Reasons for the takeover of Torredos • Good growth forecasts in the Spanish market • Important customers building new plant in Spain • Takeover gives a dominant position on the lights motors market
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