Briggs & Stratton Case Analysis
Briggs & Stratton
Case Analysis
Introduction
History
Stephen F. Briggs and Harold M. Stratton founded Briggs and Stratton Corporation in Milwaukee in 1908. Briggs was an inventor and Stratton was a successful businessman.
The first product developed by Briggs was too expensive to produce and the partners were out of money. In 1909, Briggs filed a patent for a gas engine igniter to replace the existing magneto system in automobiles. This product was the beginning of Briggs and Stratton becoming the largest US producer of switches and locks for automobiles.
Briggs and Stratton tried other products in the 1920’s, but they were not competitive with the Model T. Eventually, Briggs and Stratton came up with a different version of their first motors that worked effectively for washing machines, lawn mowers and garden tractors; which they put into full production by 1936.
In 1953, Briggs and Stratton recognized the potential in the lawn mower market and therefore developed a lighter weight, lower cost engine made of aluminum alloy targeted to this market. The company opened a new engine plant in Wauwatosa, Wisconsin to manufacture this engine.
By 1995, Briggs and Stratton ranked 717th in sales on the Fortune 1000 list of largest U.S. industrial and service corporations. Briggs and Stratton’s revenues are 90% from the sale of small gas powered engines and the remainder in selling ignition switches and locks for the automobile industry. In Briggs and Stratton’s small engine market, they have an estimated 75% of the U.S. market and 50% of the worldwide market.
A. Financial Ratios
BRIGGS AND STRATTON SAW A SALES INCREASE AT AN AVERAGE ANNUAL RATE OF 3.1% BETWEEN 1990-1994
AS CAN BE SEEN EACH YEAR THEIR SALES WERE CONSISTENTLY GETTING STRONGER. COST OF GOODS SOLD INCREASED DUE TO SALES INCREASING.
THE MORE THEY SOLD THE MORE THEY HAD TO PRODUCE.
BRIGGS AND STRATTON HAS SEEN AN INCREASE IN THEIR GROSS PROFIT MARGIN OVER THE PAST 5 YEARS.
Case Analysis
Introduction
History
Stephen F. Briggs and Harold M. Stratton founded Briggs and Stratton Corporation in Milwaukee in 1908. Briggs was an inventor and Stratton was a successful businessman.
The first product developed by Briggs was too expensive to produce and the partners were out of money. In 1909, Briggs filed a patent for a gas engine igniter to replace the existing magneto system in automobiles. This product was the beginning of Briggs and Stratton becoming the largest US producer of switches and locks for automobiles.
Briggs and Stratton tried other products in the 1920’s, but they were not competitive with the Model T. Eventually, Briggs and Stratton came up with a different version of their first motors that worked effectively for washing machines, lawn mowers and garden tractors; which they put into full production by 1936.
In 1953, Briggs and Stratton recognized the potential in the lawn mower market and therefore developed a lighter weight, lower cost engine made of aluminum alloy targeted to this market. The company opened a new engine plant in Wauwatosa, Wisconsin to manufacture this engine.
By 1995, Briggs and Stratton ranked 717th in sales on the Fortune 1000 list of largest U.S. industrial and service corporations. Briggs and Stratton’s revenues are 90% from the sale of small gas powered engines and the remainder in selling ignition switches and locks for the automobile industry. In Briggs and Stratton’s small engine market, they have an estimated 75% of the U.S. market and 50% of the worldwide market.
A. Financial Ratios
BRIGGS AND STRATTON SAW A SALES INCREASE AT AN AVERAGE ANNUAL RATE OF 3.1% BETWEEN 1990-1994
AS CAN BE SEEN EACH YEAR THEIR SALES WERE CONSISTENTLY GETTING STRONGER. COST OF GOODS SOLD INCREASED DUE TO SALES INCREASING.
THE MORE THEY SOLD THE MORE THEY HAD TO PRODUCE.
BRIGGS AND STRATTON HAS SEEN AN INCREASE IN THEIR GROSS PROFIT MARGIN OVER THE PAST 5 YEARS.