Page 2: Growth as a business strategy
The purpose of a business strategy is to create a competitive advantage in the market place. Strategies are the means by which an organisation can achieve its goals. IMI’s strategies are therefore focused on growing each of its five business platforms to become the world-leading engineering company in these niche markets.
Each business is different. Strategies are heavily influenced by the business’ values. Values outline its behaviours, often referred to as ‘the way we do things around here.’ An organisation’s values underpin all decision making and play a vital role in setting strategies and goals. IMI’s values are part of its unique selling proposition (USP). A USP is something the company offers that its competitors do not. For IMI, this code of conduct is referred to as ‘The IMI Way’. This states that an IMI employee:
‘Pursues excellence and delivers results; innovates and provides value to our customers and acts with integrity.’
This is true for IMI employees around the world and demonstrates their commitment to doing the right thing for the business and for its customers.
Every business is affected by factors in its external environment. Monitoring and assessing the likely impacts of these external factors will highlight challenges and opportunities for the business. IMI has identified four global long-term trends which are shaping the future direction of the business. These growth drivers are:
- Climate change – providing green technology solutions to improve energy efficiency and environmental impact.
- Resource scarcity – innovative products to manage energy, water and waste more efficiently.
- Urbanisation – the increasing movement of populations to cities adds pressure in areas such as improving the operation and maintenance of older buildings, enhancing building design to improve efficiency and providing better transport links.
- Ageing population – delivering niche products to support healthy lifestyles.
Growth is a common goal, also known as a business objective, for many organisations. A business may pursue a growth strategy to increase its market share, improve efficiencies through economies of scale or to increase revenue.
IMI’s growth strategy focuses on the markets where it is, or has the potential to become, the market leader. It uses innovation and its expertise in the four growth drivers to enhance its position in these markets. The benefit to IMI is that the business achieves higher margins (the amount of profit once costs have been subtracted), greater product differentiation and improved customer intimacy. IMI’s objective is to focus on these markets over the next 5 years. This objective drives all of IMI’s investment decisions and supports its goal to grow to become market leader in its niche markets.