Page 2: Developing a clear strategy
Organisations must have a clear sense of direction if they are to be effective. This involves establishing a goal and a strategy (plan) to achieve this goal. Corus has established its goal (for its Construction and Industrial Business Unit):
'Achieve a 15% return on net assets with real profit growth through the cycle by providing products, solution and expertise to our customers in the construction and industrial markets.'
This is to be achieved by using the resources of the business unit to sustain a leading position in the market in the UK, Europe and in global markets whilst also maximising profits. Corus is seeking to drive down its cost of production while continuing to focus on doing those things that it does best. At the same time, it is also seeking to build new skills and expertise.
One of the major actions involved in the new strategy is that of creating partnerships with customers and suppliers that change the market or transform the interface with customers.
What this means, is that a customer like British Waterways will deal with one Corus account manager rather than having to buy different types of steel from a range of sales staff and locations as was the case in the past. The new account managers at Corus not only need to be enterprising but also have an extensive understanding of the company they work for, its range of products and of the needs of the companies that they are selling to.
Corus’ customers are businesses seeking solutions in wire drawing, foundations, ship building, energy, heavy engineering and construction steel amongst others. Today they are able to build a relationship with one point of contact - the account manager who represents Corus (a multi-product organisation).