W.W.Grainger Strategic Plan
Strategic plan for W.W. Grainger
Jayme Knapp
June 17, 2008
Grainger will drive the future of material requirement for operations (MRO) purchases through strategic operations by focusing on growing current customers and embracing new technologies that will strengthen the company’s current capabilities. Over the last three years Grainger has made significant investments into emerging technologies that allow for more efficient workflow and faster turnaround times on sourcing quotes for those hard to find items or “one-offs”. An internal audit of Grainger shows that of a stable, forward thinking and very strategically planned company that looks for top quality people who will provide world class service to its customers. Grainger has two very strong key initiatives that they are focusing on. The first is market expansion - a multi-year program to gain share by improving customer coverage and overall positioning of its product and service offering in the top metropolitan markets in the U.S. The second is product line expansion - in 2006, Grainger begin introducing a broader and deeper product offering that will help them better serve customers across more unplanned purchasing situations. In order to achieve those goals, we need to assess there current and past performance, including there internal strengths and weaknesses. In comparison with the previous five years, Grainger’s financial strength is having an upward trend in the following areas: Net Sales, Net Earnings, Total Assets, and Cash Dividends paid per share. In addition to Grainger’s financial strengths the company overall has low debt and strong cash flow. Below is a detailed analysis of there financial position as of February 2008:
• Net sales have increased from $4.6 billion in 2002 to over $6.4 billion in 2007
• Net earnings have increased from $226 million in 2002 to over $420 million on 2007
• Total Assets have increased from $2.6 billion in 2002 to over $3.0 billion in
Jayme Knapp
June 17, 2008
Grainger will drive the future of material requirement for operations (MRO) purchases through strategic operations by focusing on growing current customers and embracing new technologies that will strengthen the company’s current capabilities. Over the last three years Grainger has made significant investments into emerging technologies that allow for more efficient workflow and faster turnaround times on sourcing quotes for those hard to find items or “one-offs”. An internal audit of Grainger shows that of a stable, forward thinking and very strategically planned company that looks for top quality people who will provide world class service to its customers. Grainger has two very strong key initiatives that they are focusing on. The first is market expansion - a multi-year program to gain share by improving customer coverage and overall positioning of its product and service offering in the top metropolitan markets in the U.S. The second is product line expansion - in 2006, Grainger begin introducing a broader and deeper product offering that will help them better serve customers across more unplanned purchasing situations. In order to achieve those goals, we need to assess there current and past performance, including there internal strengths and weaknesses. In comparison with the previous five years, Grainger’s financial strength is having an upward trend in the following areas: Net Sales, Net Earnings, Total Assets, and Cash Dividends paid per share. In addition to Grainger’s financial strengths the company overall has low debt and strong cash flow. Below is a detailed analysis of there financial position as of February 2008:
• Net sales have increased from $4.6 billion in 2002 to over $6.4 billion in 2007
• Net earnings have increased from $226 million in 2002 to over $420 million on 2007
• Total Assets have increased from $2.6 billion in 2002 to over $3.0 billion in