Finning International

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Finning International Inc.: Strategic Management Model
Eileen M. Holmquist

1) Define the business Finning International Inc. is a company that sells, rents, and provides parts and service for equipment and engines to customers in Canada, South America and the United Kingdom. Finning is Caterpillar’s largest dealer. The company’s main line of business includes new and used equipment sales, customer support services (CSS), and equipment rental. Finning owns fleets of equipment for short-term rental and long-term rental, from items ranging from hand tools to smaller Caterpillar equipment such as mini-excavators and skid-steer loaders. The company’s dealership operations include equipment for construction and
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With this slogan in mind, Finning’s employees are guided towards the company’s goals and high operational level.

Ethical Considerations: Finning follows a Code of Conduct focused on guiding its employees towards a delivery of excellent service with high standards, always maintaining a loyal relationship towards employees, shareholders and the customers. Finning encourages an environment of transparent communication and concern for following an ethical behavior in everyone’s best interest.

2) Analysis • Porter’s Six-Forces Model: 1. Threat of new entrants Not only do the current competitors represent a threat to any organization, but they also convey the possibility of bringing new competition to the industry. Some industries have stronger barriers for new companies to enter the market, making it more difficult for competitors to join in, increase the competition and affect the organizations’ profits. When Finning started business in the United Kingdom the agreement in this market included market-share growth targets and acceptable levels of financing. This practice facilitated the financial paperwork and requirements, making it easier for other companies to join the market. This more relaxed procedure without high barriers to meet, leads to new potential competitors that can enter the market at any point which represents a threat for Finning. The company must then be aware and prepared for new competition.

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