Respecting stakeholder values A Michelin case study
Page 1: Introduction
Michelin continues to be the world's number one tyre manufacturer. The company has a unique and famous marketing emblem, 'Bibendum', more commonly known as the Michelin Man. As an international organisation Michelin has a sales network in more than 170 countries.
In 2004, Europe represented 53% of sales. North America had 33% and Asia, South America and the Middle East and Africa Zone took 14%. Not surprisingly, Michelin has a turnover in excess of 15,689 billion euros and an operating margin of 8.3%. It employs around 127,000 people across all continents.
Michelin's group mission is 'to make a sustainable contribution to progress in the mobility of people and goods by constantly enhancing freedom of movement, safety, efficiency and pleasure when on the move'.
To achieve this mission, it seeks long-term growth by:
remaining the leader in terms of innovation and differentiation in quality for tyres, suspension systems and related services
satisfying customers' needs by offering the best quality products and services at the best price in the markets Michelin decides to serve
providing growth and fulfilment for Michelin employees
targeting high value added and technologically sophisticated segments.
These aims are incorporated in Michelin's 'Performance and Responsibility' approach.
As Managing Partner, Edouard Michelin says: 'A company is not assessed only in terms of its fiscal results. It is also measured by its ability to develop its employees and take its place harmoniously in the communities and society around it.'
(See Michelin's case study in edition 10 for more on the company's objectives.)