Kanthal
Kanthal
Write-up Agenda
•
Background and Contest
•
Kanthal SWOT Analysis
•
Kanthal 90 Account Management System
•
Kanthal 90 AMS limits and improvements
2
Write-up Agenda
•
Background and Contest
•
Kanthal SWOT Analysis
•
Kanthal 90 Account Management System
•
Kanthal 90 AMS limits and improvements
3
Background and Context: Kanthal’s situation
•
Kanthal was founded in 17th century, specialized in the production and sales of electrical resistance heating elements. Kanthal had about 10000 customers and 15000 items that it produced.
•
Export sales, outside of Sweden, accounted for 95% of the total.
•
Kanthal manifacturing facilities located in Sweden, Brazil, Uk, West Germany, Usa and Italy
•
Kanthal consisted of three divisions:
– K. Heating technology, supplying wire, ribbon, foil elements and machinery to manufacturers of electrical appliances and heating systems (25% market share, main markets Far East and
Latin America)
– K. Furnace Products, producing a wide range of heating elements for electric industrial furnaces; K. Super is a new product generating high growth (40% market share, main markets
Usa, Japan, West Germany, UK)
– K. Bimetals, producing thermo-bimetals for temperature control devices (one of the few companies in the world)
4
Background and Context: Ridderstrale’s Strategy
Kanthal 90: Reallocating resources to increase profits while maintaining a return on employed capital in excess of 20%
•
Main Levers:
– Resources Allocation People and resources equally distributed across all products and customers, in future must be allocated in different roles/functions with the aim to increase profitability and growth.
•
Why: priority to high profit activities and customers
– Cost System Transition from costs as percentage of total revenues to costs measured on individual orders, customer by customer.
•
Why: structure of
Write-up Agenda
•
Background and Contest
•
Kanthal SWOT Analysis
•
Kanthal 90 Account Management System
•
Kanthal 90 AMS limits and improvements
2
Write-up Agenda
•
Background and Contest
•
Kanthal SWOT Analysis
•
Kanthal 90 Account Management System
•
Kanthal 90 AMS limits and improvements
3
Background and Context: Kanthal’s situation
•
Kanthal was founded in 17th century, specialized in the production and sales of electrical resistance heating elements. Kanthal had about 10000 customers and 15000 items that it produced.
•
Export sales, outside of Sweden, accounted for 95% of the total.
•
Kanthal manifacturing facilities located in Sweden, Brazil, Uk, West Germany, Usa and Italy
•
Kanthal consisted of three divisions:
– K. Heating technology, supplying wire, ribbon, foil elements and machinery to manufacturers of electrical appliances and heating systems (25% market share, main markets Far East and
Latin America)
– K. Furnace Products, producing a wide range of heating elements for electric industrial furnaces; K. Super is a new product generating high growth (40% market share, main markets
Usa, Japan, West Germany, UK)
– K. Bimetals, producing thermo-bimetals for temperature control devices (one of the few companies in the world)
4
Background and Context: Ridderstrale’s Strategy
Kanthal 90: Reallocating resources to increase profits while maintaining a return on employed capital in excess of 20%
•
Main Levers:
– Resources Allocation People and resources equally distributed across all products and customers, in future must be allocated in different roles/functions with the aim to increase profitability and growth.
•
Why: priority to high profit activities and customers
– Cost System Transition from costs as percentage of total revenues to costs measured on individual orders, customer by customer.
•
Why: structure of