Hilti cut or Fasten?
Contents
Table of Contents
Hilti: Cut Costs or Hold Fast?
Overview
This case review was executed about a case study that was discussed in class on the operations of Hilti and its surroundings – Hilti is a global corporation based in Lichtenstein that is a market leader in drills, saws and fastening products. The analysis looks at the development of Hilti ever since it was founded, and the different strategies which have been implemented to get them to where they are now. For a company that has been very successful which is now going through a period of recession, with sales decreasing which has been caused by a global financial crisis – a question for the CEO whether to hold fast and risk an investment loss, or cut costs to reduce the impact of a drop in profits.
This report will provide an idea of Hilti’s current strategies and will look at the key strategic issues both internally and externally, and in conclusion will provide recommendations for what the CEO at Hilti should do moving forward.
Hilti’s Business Strategy – Current
The Current Business Strategy for Hilti has been quite successful since Michael Hilti took over from his father. Michael introduced the Champion 3C’s (Customer, Competence and Concentration) strategy in order to measure performance both internally and externally and saw the importance for a focus on the customers (external) and the product ranging (internal).
“Hilti has set itself the goal of being a great company. The priorities set to achieve it are growth, differentiation, productivity and employee development” (Hilti Annual Report 2008)
After conducting a Porters Generic Value Chain Analysis (Appendix C) it can be seen that the HR strategy in place at Hilti is very strong and must be working well. This finding can lead to assume that this strategy allows the company successfully look after their customers needs, being able to attract the right employees into the firm who bring along a positive attitude, good
Table of Contents
Hilti: Cut Costs or Hold Fast?
Overview
This case review was executed about a case study that was discussed in class on the operations of Hilti and its surroundings – Hilti is a global corporation based in Lichtenstein that is a market leader in drills, saws and fastening products. The analysis looks at the development of Hilti ever since it was founded, and the different strategies which have been implemented to get them to where they are now. For a company that has been very successful which is now going through a period of recession, with sales decreasing which has been caused by a global financial crisis – a question for the CEO whether to hold fast and risk an investment loss, or cut costs to reduce the impact of a drop in profits.
This report will provide an idea of Hilti’s current strategies and will look at the key strategic issues both internally and externally, and in conclusion will provide recommendations for what the CEO at Hilti should do moving forward.
Hilti’s Business Strategy – Current
The Current Business Strategy for Hilti has been quite successful since Michael Hilti took over from his father. Michael introduced the Champion 3C’s (Customer, Competence and Concentration) strategy in order to measure performance both internally and externally and saw the importance for a focus on the customers (external) and the product ranging (internal).
“Hilti has set itself the goal of being a great company. The priorities set to achieve it are growth, differentiation, productivity and employee development” (Hilti Annual Report 2008)
After conducting a Porters Generic Value Chain Analysis (Appendix C) it can be seen that the HR strategy in place at Hilti is very strong and must be working well. This finding can lead to assume that this strategy allows the company successfully look after their customers needs, being able to attract the right employees into the firm who bring along a positive attitude, good