Masco Corporation - IT Sales Opportunities - 2008

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					Masco Corporation
 IT Sales Opportunities - 2008
                                                                     Mas c o C or p or at io n - 2 0 0 8




                                   Table of Contents

1. Company Overvi ew ........................................................................ 4
  1.1 Bu sin ess Overview .................................................................... 4
  1.2 K ey Figu res ............................................................................. 4
  1.3 Corp orat e Headqu art ers ............................................................. 4
2. IT Sp ending and Depl oymen ts ......................................................... 5
3. IT Sal es Op p ortuni ties ................................................................... 6
  3.1 IT Sales Opp ortuni ti es - Software................................................. 7
  3.2 IT Sales Opp ortuni ti es - Hardware ................................................ 9
  3.3 IT Sales Opp ortuni ti es - Services ................................................ 11
4. Sal es Dri vers .............................................................................. 13
  4.1 Being Envi ron men tal F riendly ..................................................... 13
  4.2 Cap aci ty Exp an sion .................................................................. 13
  4.3 Cost Cu tting & Op eration al Effici en cy ........................................... 13
  4.4 Geog rap hic Exp an si on ............................................................... 14
  4.5 Globall y In t eg rat ed Su pply Ch ain ................................................ 14
  4.6 Imp rovi ng Cu st om er S ervice ...................................................... 14
  4.7 In trod uci ng New Produ ct s .......................................................... 15
  4.8 Lean & Agi le Manu factu ring ........................................................ 15
  4.9 Merg ers & Acquisi tion s .............................................................. 16
  4.10 Merch andi se Op timi zati on ........................................................ 16
5. Con clu sion ................................................................................. 17
App endix A: K ey IT S pen ding Deci sion Makers ....................................... 18
App endix B: Defi nition s .................................................................... 20
  B.1 Soft ware ............................................................................... 20
  B.2 Hard ware ............................................................................... 22
  B.3 Servi ces ................................................................................ 23
App endix C: Meth odol ogy .................................................................. 25
  C.1 Eval u ati ng Cri tical ity Score ........................................................ 25
  C.2 Eval u ati ng Demand Score .......................................................... 28
Oth er Rep ort s in This S eri es .............................................................. 29




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                                                                Mas c o C or p or at io n - 2 0 0 8




                                   List of Exhibits
Exhibit 2.1: IT Deploym ent Details ....................................................... 5
Exhibit 3.1: Soft ware Sal es Opportunities Map ........................................ 7
Exhibit 3.2: Opp ortunities and Related Sal es Dri vers for Software ............... 8
Exhibit 3.3: Hardware Sales Opportunities Map ....................................... 9
Exhibit 3.4: Opp ortunities and Related Sal es Dri vers for Hardware ............. 10
Exhibit 3.5: IT Services Sales Opportuniti es Map .................................... 11
Exhibit 3.6: Opp ortunities and Related Sal es Dri vers for IT Servi ces ........... 12
Exhibit C1: Cal culation s for Estimating Cri ticality Score ........................... 25
Exhibit C2: Cri tical ity Scores for Various Software Application s ................. 26
Exhibit C3: Cri tical ity Scores for Various Hardware Produ cts ..................... 26
Exhibit C4: Cri tical ity Scores for Various IT Servi ces ............................... 27
Exhibit C5: Cal culation s for Estimating Deman d Score ............................. 28




                                                                                                 3
                                                                 Mas c o C or p or at io n - 2 0 0 8




1. Company Overview

1.1 Business Overview
Masco Corporation manufactures, distributes and installs home improvement and building
products. The company operates in five segments: Cabinets and Related Products, which
includes assembled and ready-to-assemble kitchen and bath cabinets, home office
workstations, storage products, bookcases, and kitchen utility products; Plumbing Products,
constitues faucets plumbing fittings and valves, showerheads and hand showers, and spas;
Installation and Other Services includes the sale, installation and distribution of insulation
and other building products; Decorative Architectural Products, includes paints and stains,
and door, window and other hardware, and Other Specialty Products includes windows,
window frame components and patio doors, staple gun tackers, staples and other fastening
tools, and hydronic radiators and heat convectors.


1.2 Key Figures
The group recorded revenues of $11,700 million during the fiscal year ended 31st December
2007 down from $12,718 million during the fiscal year ended 31st December 2006. This
translates to a decrease of 8 percent.

The net profit was $386 million in 2007 down from $488 million in 2006, a decrease of 20.9
percent.

The company’s total assets witnessed a decrease to $10,907 million from $12,325 million.
Masco Corporation employed 52,000 people in 2007, down from 57,000 in 2006.


1.3 Corporate Headquarters
21001 Van Born Road

Taylor, MI 48180

				
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Description: Masco Corporation manufactures, distributes and installs home improvement and building products. The company operates in five segments: Cabinets and Related Products, which includes assembled and ready-to-assemble kitchen and bath cabinets, home office workstations, storage products, bookcases, and kitchen utility products; Plumbing Products, constitues faucets plumbing fittings and valves, showerheads and hand showers, and spas; Installation and Other Services includes the sale, installation and distribution of insulation and other building products; Decorative Architectural Products, includes paints and stains, and door, window and other hardware, and Other Specialty Products includes windows, window frame components and patio doors, staple gun tackers, staples and other fastening tools, and hydronic radiators and heat convectors. Industry trends and drivers have a direct or indirect affect on IT spending of all companies operating within an industry. For example – increase in sourcing from low cost countries might influence Masco to relook at their supply chains, resulting in selling opportunities for SCM solutions, collaboration tools etc. Thus, we can conclude that industry spending on any particular IT product or service is an important indicator of the criticality of that product or service for the industry. Based on the IT spend information available in ‘TechNavio’, we have computed a ‘criticality score’ for various IT products and services, for Masco. Various company level developments and events are important indicators of selling opportunities and drive the sales of IT products and services. For example – an acquisition by Masco might result in opportunities for IT migration and integration services. By tracking these sales drivers (using ‘TechNavio’), we have arrived at a demand score for each product and service. Through an in-depth analysis of industry trends and drivers and company level developments and events, we have made the ‘IT Sell
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