Essay on Emerson Electric Company Mcs

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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
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Emerson’s domestic mission is placed in the “star” or hold quadrant. This means that Emerson should focus on protecting its business unit’s market share and competitive position. Both of these missions are further explained under the BCG section of this report.
Situational Analysis
In this section, we have performed a few relevant situational analyses to demonstrate Emerson’s current competitive position.
Porter’s 5 Forces Analysis
Intensity of Rivalry among Existing Competitors:
Competition is stiff within the industry. Domestically, the major competition is General Electric, Westinghouse, and Honeywell. Internationally, competition includes Siemens and Hitachi. Emerson’s future success requires beating not only the domestic competitors but also the large global Japanese and German manufacturers. Emerson must differentiate itself from the competition using its cost-reduction, quality improvement, and superior marketing and distribution channel strategies.
Bargaining Power of Customers:
The stiff competition leads to customers having strong bargaining power. Customers can choose the product based on cost, quality, availability, and performance specifications. This is evident as switching costs are low for customers as it is as easy as choosing General Electric products over Emerson products. Emerson must continuously enhance its position in these dimensions to create and enhance its name in global marketplaces, and

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