Page 1: Introduction
A business will not become the market leader by chance. It takes careful planning to build an organisation that outperforms its competitors. In business, these plans are called strategies. A business strategy can take many forms. For IMI, a leading engineering business, its strategies focus on growing the business within the niche markets in which it operates. A niche market is a relatively small and often highly specialised segment of a market.
IMI is a global engineering business focused on the precise control and movement of fluids in critical applications. IMI has five platform businesses which use its expertise in valve and fluid engineering in different markets:
- Fluid Power – specialists in motion and fluid control technologies, custom engineered for critical applications requiring precision, speed and reliability.
- Severe Service – highly engineered valves and controls that enable vital industrial and energy production processes to operate safely, cleanly and more efficiently.
- Indoor Climate – experts in hydronic distribution systems and room temperature control which deliver energy efficient indoor climate systems.
- Beverage Dispense – specialists in innovative beverage cooling and dispense solutions that contribute to increased sales and lower operating costs.
- Merchandising – specialists in bespoke point of sale merchandising solutions which improve retailer profitability by driving up sales.
IMI is a member of the FTSE 100, a list of the 100 largest UK organisations listed on the London Stock Exchange. The Group manufactures products in over 20 countries and has over 15,000 employees worldwide. Its employees focus on creating unique solutions to specific problems. In fact, around 70% of IMI’s products are engineered to order. Its employees’ global knowledge and skills are a key factor in its ability to differentiate its offering within a range of different markets including oil and gas, nuclear power and the food and drink industry. IMI’s products help its sector-leading customers to become more competitive whilst enhancing responsible business practice in their specific markets, for example, by improving efficiency, increasing output or reducing energy usage. IMI calls this Engineering Advantage.
Mission and goal
IMI’s growth strategies are set to help achieve its mission and goal. A company’s mission communicates the organisation’s core purpose to its stakeholders. IMI's mission is:
‘To become the most admired engineering solutions company of our size anywhere in the world.’
A company’s goal outlines what it hopes to achieve in the long-term. IMI’s goal is:
‘To become the world’s leading engineering company in each of the global niche markets we serve and to be admired for our innovation, applications expertise and global service.’
An organisation’s mission and goal provide a framework in which the strategies are created. This case study shows how IMI uses a variety of strategies to grow each platform of its business to work towards achieving its mission and goal.