Emerson’s passion for progress is reflected in our disciplined planning and management process that enables the company to anticipate changing economic and industry conditions, thereby putting the company in position to create value for customer and shareholders.
Since 2000, Emerson senior management has pursued four long-term strategic imperatives to meet customer needs, drive higher profitability levels, and provide superior value creation for shareholders: strengthen our business platforms, pursue technology leadership, globalize our assets, and drive business efficiency.
Strengthen business platforms
Emerson is committed to creating global brand platforms that meet our customers’ needs around the world and to position our businesses to benefit from favorable industry dynamics. Moreover, our business platforms are collaborating to create new market opportunities.
Emerson has made a special commitment to invest in long-term strategic initiatives that are the engines for our growth: establishing and growing our presence in emerging market countries … expanding solution and service offerings to enhance customer value … meeting the needs of our key regional customers to help them grow … maintaining and strengthening our leadership positions in scroll compressor technology, telecom solutions, primary and backup power generation technologies, and PlantWeb™ digital architecture … and strengthening our presence at big box retailers.
Pursue technology leadership
Emerson’s long history of technology investment and product category leadership has provided the company with a competitive advantage and market differentiation for our customers. We have established engineering resources around the world that allow us to work seamlessly 24/7 to bring new products and technologies to market.
We are committed more than ever to developing game-changing products and technologies. Listening to our customers is essential to helping us deliver truly unique and innovations solutions that make an impact on their success.
Emerson’s new product and technology investments continue to pay off and are fundamental to our key growth initiatives. In 2005, Emerson had $5.2 billion in new product sales. In 2006, new product sales increased to $6.8 billion (or 34 percent of sales). Our long-term goal is to have new products account for 40 percent of sales.
Globalize assets
We have aligned our company’s global operations to meet our customer needs and to help penetrate emerging markets. Diversifying the geographic presence of the company serves to help enhance our growth profile. We are committed to maintaining and growing our market leadership in North America and western Europe. At the same time, we see emerging markets in Asia, the Middle East and Africa, Eastern Europe, and Latin America playing an ever increasing role in our future growth opportunities. We continually reposition our assets to drive profitability improvements and to better serve our customers.
Drive business efficiency
Emerson’s management team puts a priority on operational excellence, improving capital efficiency and generating a strong cash flow. We use global best-cost sourcing and cross-functional, sharing of expertise of our supply chain vendors to help drive greater business efficiency. We continually seek to improve our manufacturing processes, distribution logistics, and on-time delivery performance to exceed customer expectations.
Meeting today’s global trends
The company’s strategic growth initiatives help position Emerson to address the challenges and opportunities presented by four global trends:
Business without borders – Emerson operates as a global company able to participate in the growth of emerging economies by delivering the best possible solution regardless of the project or where it resides.
Energy responsibility – Emerson seeks to employ innovative thinking and new technologies to help customers and our world use energy resources in more efficient, cost-effective, and environmentally-sound ways.
Communications revolution – Emerson provides businesses with the resources they need to ensure reliable data, voice, and video transmission from wireless in processing plants to global telecom infrastructures.
Resources for the world – Emerson is focused on developing new and more efficient technologies to help our customers protect their assets and optimize productivity in using vital energy resources.
Emerson has responded to these global economic challenges and opportunities by repositioning the company to align with the changing marketplace. The result is a stronger Emerson with significant opportunities for growth and a cost structure that allows us to compete anywhere in the world.