Ratio Analysis
Common Size Income Statement
VII. Implementation
One strategy to improve the company’s profitability is to focus on its other operating segments despite the decline in growth of the Valve and Controls segment
Board members with international operations experience needs to be recruited specifically in previously untapped developing countries such as India and Brazil
Improvement in the production process of future products in order to accelerate the production period
VII. Evaluation and Control
MIS development in order to simplify the production process of future products while minimizing backlogs
The recently acquired Erico Global Company have a different organizational culture from Pentair, which means that the company values must be indoctrinated to the employees of acquired companies
The design of the current production facility must be examined to determine maximization of plant use. The purpose of which is to upgrade the current equipment to improve production efficiency.
Best practices of the production facilities of the acquired companies can be implemented in the parent company’s production facility and vice versa. The purpose of which is to improve the production facilities of both parent and subsidiary companies.
IX. Biblical Evaluation
The examination of the current strategies reveal that these may not be relevant for future use since the company is affected by the current economic difficulties of the oil and gas industry. Needs a modification of the current strategy to take advantage of opportunities and strengths and minimize weaknesses and threats.
The company states that it is still experiencing difficulties in minimizing the backlog of customer orders, which means that production process efficiencies are not adopted in the design stage of core products.
The company increased its inventory volume with the acquisition of Erico Global Company under the Technical Solutions segment, which is a forecasted growth industry
The continued economic condition of the US market requires the expansion of the company operations to developing markets, despite a potential price competition with regional and global businesses
The need for an increased focus on production and marketing of products under the Water Quality Systems and Technical Solutions segment since net sales and profits have been improving in the last three years
Requires an increased focus on end user consumers to improve the generation of revenue and profits
References
Pentair. (2016). 2015 annual report. Pentair. Retrieved from http://www.pentair.com/en/investors/annual-and-other-reports
Wheelen, T. L., and Hunger, J. D. (2012). Strategic management and business policy toward global sustainability (13th ed.). Boston: Pearson.
Appendix A. SFAS Matrix
Appendix B. TOWS Matrix
