Emerson Electric Co.

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Internal Analysis
* 36+ years of improved EPS.
* Domestic electrical manufacturer.
* $708M in profit in 1993.
* $2 billion in international sales.
* Joint ventures are a growth area with 40% of total sales. * Divisions are organized into eight segments.

External Analysis: 5 forces
* New Entrants: Low because there are only a few key successful players in the industry. * Rivals: High because competition among key players is fierce; all big brand names. * Threat of Substitutes: Medium/Low because there are substitutes but they are of lower quality and do not have the brand recognition.

Company Strategies
Corporate Strategy
* Related Diversified: Emerson Electric Co produces a broad range of electric, electromechanical, and electric products for industry and consumers * Diversified St. Louis company.
* Related through core competencies:
* The eight segments share distribution channels, organizational capabilities, as well as technologies. * Corporate staff is small; top management believes a large corporate staff will create more work for the divisions.

Business Strategy
* Build: international joint ventures are a growth area with 40% of sales. * Emerson follows a growth through acquisition strategy but no one acquisition has been very large. * CEO believes in constant improvements in order to achieve growth and strong financial results. * Increased investments to 1.8 billion.

* Growth rates are set above economic expectations.
Competitive Advantage
* Best Cost: went from low-cost to best cost and focused on: * Quality & customer satisfaction.
* Knowledge of the competition.
* Process and Product design.
* Employee communications and involvement.
* Cost reduction.
* Strategy.
Key Success Factors

* Quality: less than 100 defects per million motors.
* Capital investments were made to...
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