EMERSON ELECTRIC COMPANY

Table of Contents Company Overview 3 Organizational Structure 3
Strategy and Strategic Objectives 3 Corporate-Level Strategy 3 Business Unit Level Strategy 3
Situational Analysis 3 Porter’s 5 Forces Analysis 3 Key Success Factors (KSFs) 3 Boston Consulting Group (BCG) Matrix 3
Management Control Systems 3 Controls Needed To Meet The Best-Cost Producer Strategy 3
Conclusions 3
Appendix A – Organizational Structure 3
Appendix B – Staff Size Compared to Company Size iii
Appendix C – Boston Consulting Group (BCG) Matrix iii
Bibliography iii

Company Overview
Emerson Electric Company was founded in 1890 as a manufacturer of motors and fans. Today, Emerson is a major domestic electrical …show more content…

Additionally, strategic international joint ventures can be used to obtain supplies in the most beneficial arrangements. Since raw materials are scarce bargaining power of suppliers is also strong. Fewer suppliers and a greater number of manufacturers gives suppliers the power to set prices.
Threat from Substitutes:
There are no direct substitutes for Emerson’s products because they produce motors. There are threats of consumers purchasing one brand over another but not actually substituting the product.
Threat of New Entry:
Difficult to compete as a new entrant within this industry due to high capital requirements, limited access to distribution channels, economies of scale, and the technological complexity of the products and processes.

Key Success Factors (KSFs)
Emerson’s key success factors are its quality (measured in defective products per million produced), cost reduction strategies, delivery of products (superior distribution channels), and growth through acquisition of related companies. A differentiation advantage is obtained by imitating competitor’s products, producing them at lower costs, and passing on the cost savings to the consumer.
Boston Consulting Group (BCG) Matrix
The Emerson Electric Company has been growing many facets of their business such as revenues, profits, and in turn earnings-per-share consistently over the past 36 years without fail. With this in mind,