Finning International Inc.: Strategic Management Model
Eileen M. Holmquist
1) Define the business
Finning International Inc. is a company that sells, rents, and provides parts and service for equipment and engines to customers in Canada, South America and the United Kingdom. Finning is Caterpillar’s largest dealer. The company’s main line of business includes new and used equipment sales, customer support services (CSS), and equipment rental. Finning owns fleets of equipment for short-term rental and long-term rental, from items ranging from hand tools to smaller Caterpillar equipment such as mini-excavators and skid-steer loaders. The company’s dealership operations include equipment for construction and mining companies, as well as quarrying, forestry, power generation, and agriculture.
The company focuses on cash flow, building balance sheet strength, achieving operating efficiencies and containing costs. Finning seeks to prioritize return on invested capital (ROIC). The company works on a vision to be the sole Caterpillar dealer, purchasing leaderships in different countries to compete with other companies in the field. Finning focuses on becoming the exclusive caterpillar distributor, serving industry segments such as mining, oil sands, heavy construction, oil and gas, forestry, the government sector and the pipeline sector. As a service provider, the company is always looking to suit the needs of its customers.
According to the company’s Code of Conduct, Finning’s vision is stated as follows: “We will be Caterpillar’s best global business partner, providing unrivalled services that earn customer loyalty.” (Finning, 2010).
Finning works with trained technicians and a qualified sales force that develops relationships with customers, it ensures that the current equipment is ordered for each customer’s specific needs, agreeing on pricing and other contract terms, and delivering the equipment on schedule. The machines are assembled and modifications are added to meet local customer specifications. Finning’s sales staff works with potential customers to identify the most appropriate type of product to order, provide quotations on any customization needed and prepare after-sales service contracts for the life of the vehicle. The company ensures timely delivery of equipment, working with customers, ensuring that the correct equipment is ordered for each customer’s specific needs, and agreeing on pricing and other contract terms.
Finning’s Code of Conduct claims its focus on: “Great People. Great Solutions. Great Results” (Finning, 2010).
The company’s values are hand-in-hand with the mission and the vision of the firm. They guide the progress of the organization and define how the company delivers service excellence to its customers. The company takes responsibility on its operations and services delivered, modifying its products if necessary to suit the needs of its customers. Finning cares about its people and customers, maintaining a constant communication with the employees to make sure things are done properly, such as scheduling maintenance and ensuring that the equipment is up to date.
Finning’s Code of Conduct, defines the firm’s values as follows (Finning, 2010): – We Care. We depend on ourselves and each other for our safety and well-being. – We Communicate. We rely on open, honest and effective communication to work together. All contributions have value. – We Take Responsibility. Responsibility and accountability are rewarded. Together, we shape the Finning of tomorrow. – We Empower. We expect the best of each other. We encourage and value learning, innovation and personal growth. – We Trust. We work at building honest, constructive relationships with customers, suppliers and colleagues. – We Do Our Best. We continuously strive to make Finning the best place to work.
Finning’s philosophy its...
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