Strategic Plan

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  • Topic: Financial ratios, Automotive industry, Gross profit margin
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Strategic Plan
Johnson Controls
2012

History In 1885, Warren Johnson inspired the future, launching an industry focused on energy efficiency and a company poised to explore new ideas and enter new fields. This foundation has ignited the customer-focused innovation of thousands of employees for more than 125 years. Our 170,000 employees now creates quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Technology

Johnson Controls is also a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For nonresidential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls (NYSE: JCI), founded in 1885, has headquarters in Milwaukee, Wisconsin. What held Johnson Controls back in 2012? The firm’s, primarily an auto-parts maker, Johnson Controls' fortunes are largely tied to those of major automakers such as Ford , General Motors , and Daimler listed as its largest customers, Johnson Controls needs those companies to do well in order for it to maximize its success in the future.

Mission, Vision, Core Values

Mission Statement

“Exceeding our customers’ increasing expectations”

Vision Statement

Our future depends on us serving as customer advocates and increasing our customers’ success. We are proactive, hard-driving and easy to work with. We offer expert knowledge and practical solutions. We deliver on our promises.

Core Values

Integrity: Honesty and fairness are essential to the way we do business and how we interact with people. We are a company that keeps its promises. We do what we say we will do, and we will conduct ourselves in accordance with our code of ethics. Johnson Controls, Inc. engages in building efficiency, automotive experience, and power solutions businesses worldwide. Johnson Controls has a market cap of $20.62 billion and is part of the consumer goods sector and automotive industry. Because there is uncertainty in the markets because of many factors, Sub-prime, Fiscal Cliff, Congress, President (ETC) the firm has a five year goal to maintaining to industry levels and current market share in its HVAC assertion and Grow as the market allows in its automotive operations and other divisions. Johnson Controls (JCI) SWOT Analysis

Strengths

Internal
Strong market share, Diverse business, Strong financial performance Net operating cash flow has significantly increased by 54.17% to $794.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 28.53%. The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. The company managed to outperform against the industry average of 5.1%.Since the same quarter one year prior, revenues slightly dropped by 3.7%.

Weaknesses

Internal

Sluggish, automotive business in North America, Weak turnover ratio, Relativity low employee productivity. JCI's debt-to-equity ratio is low, the quick ratio, which is currently 0.70, displays a potential problem in covering short-term cash needs. The drop in revenue,

Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization In the Auto Components industry and the overall market, JOHNSON CONTROLS INC's return on equity is significantly below that of the industry average...
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