Vesalius Porter’s Five Forces for The Company Bekaert I need an analysis of the five forces of Bekaert using all the material available online. Each force

Vesalius Porter’s Five Forces for The Company Bekaert I need an analysis of the five forces of Bekaert using all the material available online. Each force should have its own paragraph, where I need to discuss how does Bekaert does in each of the five forces.

Then i need the definition of the sixth force of the model (threats of complement) and relate it to Bekaert.

i’ll attach my started work and the rules for the assignments below.

if you want to correct what I have already done feel free do do it but it’s not required, i’m just struggling to find the information i need to complete the second part of the assignment.

btw the teacher hates bullet points, graphs and images. He only wants text and he advised us to use the annual report of 2018 (also linked below) and the information the company provided on itself on its website. ANNUAL
REPORT
2018
TABLE OF
CONTENTS
STRATEGY
AND LEADERSHIP
05
07
09
10
4
Message from the Chief Executive
Officer and the Chairman
Board of Directors
Bekaert Group Executive
Our strategy
STRATEGY
AND LEADERSHIP
INDUSTRY
OFFERINGS
25 Products and applications
24 INDUSTRY
OFFERINGS
SEGMENT
PERFORMANCE
27
29
31
33
35
26 SEGMENT
PERFORMANCE
EMEA
North America
Latin America
Asia Pacific
Bridon-Bekaert Ropes Group
REPORT OF THE BOARD OF DIRECTORS
EX ARTICLE 119 OF THE BELGIAN
COMPANIES CODE
39 Key figures
41 Key figures per segment
42 Summary of financial review
47 Corporate Governance Statement
47 Board of Directors and Executive Management
53 Remuneration Report
60 Shares
64 Control and ERM
69 Sustainability
80 References
OF THE BOARD
38 REPORT
OF DIRECTORS
FINANCIAL
REVIEW
84 Consolidated financial statements
91 Notes to the consolidated financial statements
193 Parent company information
194 Auditor’s report
81 FINANCIAL
REVIEW
STRATEGY
LEADERSHIP
AND
Annual Report Bekaert 2018
MESSAGE FROM
THE CHIEF EXECUTIVE OFFICER
AND THE CHAIRMAN
Dear Reader,
From a financial performance perspective, 2018 was deeply disappointing. The
results we posted in 2018 dropped far beyond our goals and reversed our successful margin improvement trend of the past years. The share price has been under
continuous stress amid the long series of profit warnings by sector players in our
industries and reflects both the weaker Bekaert financial performance in 2018 and
rising global economic uncertainty.
Despite softening GDP growth in 2018, induced by trade tensions and other political
and economic uncertainties, we achieved 5% consolidated sales growth and our
combined sales exceeded the € 5 billion mark for the first time in history. We haven’t
been able, though, to translate this growth into incremental profit. Underlying EBIT
reached € 210 million, representing a margin on sales of 4.9%, and reported EBIT
was € 147 million at a margin of 3.4%, far below the levels of previous years.
Some of the negatives of 2018 have been resolved or related to one-time corrections
and are not expected to affect our margins in 2019. The performance of BridonBekaert Ropes Group should improve according to the profit restoration plan that
has been put in place. We are resolving the start-up issues related to various major
expansion programs and our results should no longer be affected by the losses
generated in our sawing wire activities or by those incurred in the plants that we have
closed in the course of 2018. We regret that our actions to improve our performance
included decisions that affected jobs, but they were necessary to help turn the tide
from here onwards.
Bekaert has a strong track record of success and we want to return our business
performance as quickly as possible to the positive growth path that we set out in our
strategy and that we have been achieving until recently.
Matthew Taylor
CEO
As we enter 2019, the business conditions in various sectors have begun to trend
somewhat lower as a result of tighter markets and postponed investments. Given
the market evolutions and the anticipated continued price pressure, we will implement improvement actions that will reduce our cost structure significantly, helping
to enhance our competitiveness and improve our financial performance sustainably.
We designed and implemented a new organizational structure in early March 2019.
We are making those organizational changes to upgrade our capability and to take
out complexity from the organization. This will enable faster decision making, more
agility to respond to change, and enhanced ownership to drive performance and
customer centricity.
We are confident that our accelerated transformation drive and the improvement
actions we are taking, will help us rebuild the underlying EBIT margin to above 7%
over the medium term. We will also continue to put in place cash generation actions
to reduce our net debt leverage and we intend to bring net debt on underlying
EBITDA below 2.5 by the end of 2019.
Bert De Graeve
Chairman
5
6
Annual Report Bekaert 2018
2018 has not delivered the results you expected from us,
nor the goals we set ourselves. The Board of Directors will
propose to the Annual General Meeting of Shareholders of
8 May 2019, a gross dividend of 70 eurocent. In line with the
company’s dividend policy, the proposed temporary dividend
cut reflects the lower earnings and high debt leverage of the
company.
We want to thank our customers, partners and shareholders
for their continued trust. And we want to thank our employees
for their commitment and drive to take on the new challenges
and realize our goals.
After 17 years with Bekaert, of which five years in the Chair
of the Board, my term will expire at the close of the Annual
General Meeting of Shareholders of 8 May 2019. I would like
to take this opportunity to wish the new Chairman, the entire
Board of Directors, and Matthew Taylor and his team success
in getting the company back on the value-driving growth path
where it belongs.
Matthew Taylor
Chief Executive Officer
Bert De Graeve
Chairman of the Board of Directors
Annual Report Bekaert 2018
BOARD OF
DIRECTORS
The main tasks of the Board of Directors are to determine the company’s general policy, to approve the strategy and to supervise activities. The Board of Directors is the company’s supreme decision-making body in all matters, other than those for which
decision-making powers are reserved for the General Meeting of Shareholders by law or by the articles of association. The Board of
Directors currently has 15 members. Their professional profiles cover different areas of expertise, such as law, business, industrial
operations, banking & investment banking, marketing & sales, HR and consultancy.
Bert De Graeve
Matthew Taylor
Celia Baxter
Leon Bekaert
Gregory Dalle
Charles de Liedekerke
Christophe Jacobs van Merlen
Hubert Jacobs van Merlen
Maxime Jadot
Pamela Knapp
Martina Merz
Colin Smith
Emilie van de Walle de Ghelcke
Henri Jean Velge
Mei Ye
Composition of the Board Directors
Bert De Graeve, Chairman
Matthew Taylor, CEO
Celia Baxter (1)
Leon Bekaert
Gregory Dalle
(1)
Charles de Liedekerke
Christophe Jacobs van Merlen
Hubert Jacobs van Merlen
Maxime Jadot
Pamela Knapp (1)
Martina Merz (1)
Colin Smith (1)
Emilie van de Walle de Ghelcke
Henri Jean Velge
Mei Ye (1)
Independent Directors
Changes during 2018
On 9 May 2018, the Annual Meeting of Shareholders approved the nomination of Colin Smith for appointment as independent
Director on the Board. Mr Smith replaced Alan Begg whose term of office expired and who was not seeking re-election.
7
8
Annual Report Bekaert 2018
The composition of the Board of Directors will change
in 2019
The Board of Directors of NV Bekaert SA has announced,
on 1 March 2019, the succession plans of its Chairman and
Directors of the Board.
»» Jürgen Tinggren has been nominated as next Chairman.
His nomination for appointment as independent Director
of the Board is subject to approval by the Annual General
Meeting of Shareholders of 8 May 2019 and will, upon
approval, take effect at the close of the Meeting.
»» Caroline Storme has been nominated as member of
the Board of Directors. Her nomination, too, is subject to
approval by the Annual General meeting of Shareholders
of 8 May 2019.
The term of office of the Chairman of the Board, Bert
De Graeve, will expire at the close of the Annual General
Meeting of Shareholders of 8 May 2019. After 5 years in the
Chair of the Board, Bert De Graeve seeks no re-election for a
new term of 4 years.
The terms of office of the Directors Leon Bekaert, Gregory
Dalle, Charles de Liedekerke, Hubert Jacobs van Merlen
and Maxime Jadot will also expire at the close of the Annual
General Meeting of Shareholders of 8 May 2019.
Gregory Dalle, Charles de Liedekerke and Hubert Jacobs van
Merlen are candidates for re-election. Maxime Jadot and Leon
Bekaert, both having served 25 years on the Board of Bekaert,
seek no re-election. Martina Merz, independent Director of the
Board, will resign on 8 May 2019, given her recent appointment as Chair of thyssenkrupp AG in addition to other mandates.
The new composition of the Board will reduce from 15 to
13 members. The responsibilities and composition of the
Committees of the Board will be determined and announced
when the abovementioned nominations become effective.
Annual Report Bekaert 2018
BEKAERT
GROUP EXECUTIVE
The Bekaert Group Executive assumes the operational
responsibility for the company’s activities and acts under the
supervision of the Board of Directors. The executive management team is chaired by Matthew Taylor, Chief Executive
Officer.
The composition of the Bekaert Group Executive has
changed in 2018
On 1 March 2018, Jun Liao became a member of the Bekaert
Group Executive and was appointed Executive Vice President
– Regional Operations North Asia.
On 15 November 2018, Bekaert announced the departure of
Beatriz García-Cos Muntañola, Executive Vice President and
Chief Financial Officer. Frank Vromant, Executive Vice-President Bekaert Americas, was appointed Chief Financial Officer
ad interim with immediate effect, in addition to his executive
responsibilities for the Regional Operations Latin America.
After 36 years with Bekaert, and a lifelong career built on
business and technology expertise, Geert Van Haver, Chief
Technology Officer retired on 31 December 2018. The responsibilities of Geert Van Haver have since then been coordinated
internally, with a direct reporting line to the Chief Executive
Officer and since 1 March conform the new organizational
structure.
At the end of 2018, the Bekaert Group Executive consisted
of 8 members:
»» Matthew Taylor, CEO
»» Rajita D’Souza, Chief HR Officer
»» Lieven Larmuseau, Executive Vice President — Rubber
Reinforcement
»» Jun Liao, Executive Vice President — North Asia
»» Curd Vandekerckhove, Executive Vice President — Global
Operations
»» Stijn Vanneste, Executive Vice President — EMEA, South
Asia and South East Asia
»» Piet Van Riet, Executive Vice President — Industrial &
Specialty Products
»» Frank Vromant, Chief Financial Officer and Executive Vice
President — Latin America
The composition of the BGE will significantly change
in 2019*
As announced on 1 March 2019, the composition of the
Bekaert Group Executive will change according to the new
organizational structure which consists of four Business
Units and four Global Functional Domains. The team, led by
Matthew Taylor, CEO, will focus on value growth and
higher-level performance.
Business Units:
»» The Business Unit Rubber Reinforcement (serving
industries that use tire cord, bead wire, hose reinforcement
wire and conveyor belt reinforcement), will be led ad interim
by Lieven Larmuseau, until the appointment of a Divisional
CEO Rubber Reinforcement.
»» The Business Unit Steel Wire Solutions (serving industrial,
agricultural, consumer and construction markets with a
broad range of steel wire products and solutions), is led by
Stijn Vanneste, Divisional CEO Steel Wire Solutions.
»» The Business Unit Specialty Businesses (including
building products, fiber technologies, combustion technology and sawing wire) is led by Jun Liao, Divisional CEO
Specialty Businesses.
»» Bridon-Bekaert Ropes Group (BBRG, including the
ropes and advanced cords businesses) is led by Brett
Simpson, CEO of BBRG.
The business units will have global P&L accountability for
strategy and delivery in their distinct areas and therefore have
dedicated production facilities and commercial and technology
teams within their respective organization. This will help them
develop a customer-centric approach aligned with the specific
needs and dynamics of their markets.
Global Functions:
»» Frank Vromant will continue as CFO ad interim, until the
new incumbent joins the company.
»» Rajita D’Souza remains Chief Human Resources Officer.
»» The appointment of an externally recruited Chief Strategy
Officer will be announced shortly.
»» Curd Vandekerckhove has been appointed Chief
Operations Officer.
The functions will take a role as strategic business partners,
accountable for providing specific expertise and services
across the Group, and ensuring the business has the right
capability to deliver on short and long term goals.
* More information on the BGE composition is available in the Corporate
Governance Chapter.
9
10
Annual Report Bekaert 2018
OUR
STRATEGY
Who we are
Bekaert is a world market and technology leader in steel wire transformation and
coating technologies. We pursue to be the preferred supplier for our steel wire
products and solutions by continuously delivering superior value to our customers
worldwide. Bekaert (Euronext Brussels: BEKB) was established in 1880 and is
a global company with almost 30 000 employees worldwide, headquarters in
Belgium and € 5 billion in combined revenue.
What we do
We seek to be the best in understanding the applications for which our customers use steel wire. Knowing how our steel wire products function within our
customers’ production processes and products helps us to develop and deliver
the solutions that best meet their requirements and, through that, we create value
for our customers.
Transforming steel wire and applying unique coating technologies form our core
business. Depending on our customers’ requirements, we draw wire in different diameters and strengths, even as thin as ultrafine fibers of one micron. We
group the wires into cords, ropes and strands, weave or knit them into fabric, or
process them into an end product. The coatings we apply reduce friction, improve
corrosion resistance, or enhance adhesion with other materials.
How we work
better together sums up the unique cooperation within Bekaert and between
Bekaert and its business partners. We create value for our customers by cocreating and delivering a quality portfolio of steel wire solutions and by offering
customized services on all continents. We believe in lasting relationships with our
customers, suppliers and other stakeholders, and are committed to delivering
long-term value to all of them. We are convinced that the trust, integrity and irrepressibility that bring our employees worldwide together as one team also create
the fundamentals of successful partnerships wherever we do business.
Our strategy
Continuously driving value creation for our shareholders by cost effectively
creating superior value for customers is our strategy. Our vision and core strategies form the foundation of a transformation of our business towards higher level
performance.
Annual Report Bekaert 2018
Our Vision – Our Field of Play
Consistent with our better together aspiration, we relentlessly pursue to be
the preferred supplier for our steel wire products and solutions,
by continuously delivering superior value to our customers around the world.
Goal Statement
for the Heart
Goal Statement
for the Head
Drive value creation through a One Bekaert
Team with the passion to win, operating in a
no-harm-to-anyone working environment
Increase: Revenue
Profit
ROCE
Our Long Term
Core Strategies
Our Immediate
Must Win Battles
1.
2.
3.
4.
1.
2.
3.
4.
5.
Drive the customer into the heart of our business
Value driven growth
Technology leadership and speed
Leverage scale, reduce complexity and
reach lowest total cost
Engage and empower people
Fit for Growth
Build a winning business portfolio
Install manufacturing excellence
Build the future for Bekaert in
North America
5. Drive customer excellence
Our Values
We act with integrity – We earn trust – We are irrepressible!
Our Vision
Consistent with our better together aspiration, we relentlessly pursue being
the preferred supplier for our steel wire products and solutions by continuously
delivering superior value to our customers around the world.
With this Vision statement, Bekaert has explicitly determined its ‘field of play’:
it describes what we want to be, where we want to compete and invest, and
how we want to differentiate ourselves.
Our Long-term Core Strategies
Our five core strategies form the basis of Bekaert’s priorities and
decision-making process towards driving value and growth. These strategies
put the company’s vision into practice and reflect the direction and priorities
over the longer term:
1.
2.
3.
4.
5.
Drive the customer into the heart of our business
Value-driven growth
Technology leadership and speed
Leverage scale, reduce complexity and reach lowest total cost
Engage and empower people
To give our core strategies a much more immediate focus with dedicated
resources and close progress monitoring, we also define our Must Win Battles. Must Win Battles receive a special level of attention from the entire organization and, as a result, enable the deployment of the five core strategies
across teams worldwide.
11
12
Annual Report Bekaert 2018
Progress on the core strategies
1) Drive the customer into the heart of our business
Bekaert has always believed in customer collaboration and co-creation as
drivers of sustainable partnerships and customer satisfaction. However, we want
to do better and become a truly customer-centric organization. This strategy is
about gaining insight into what value means to our customers and acting on it.
It is about continuously prioritizing our customers in whatever we do, at all levels
and wherever in the world.
In 2018, we continued to improve our customer service models. It is one of the
tangible impacts of the Bekaert Customer Excellence (BCE) transformation
program and helps us to obtain better customer insight and to use more
enhanced tools.
NPS
Bekaert completed a Net Promotor Score (NPS) Survey across all businesses and
on a global scale. In 2017, the first customer group covered 50% of Bekaert’s Top
80% revenue customers. In May 2018, the remaining 50% were asked to participate. It was the first time that Bekaert organized a global, full scope NPS survey.
The combined score from both phases was 49, much higher than the average
for international B2B manufacturing companies. The survey gauged the loyalty
of customer relationships by measuring the likelihood that customers would
recommend Bekaert to other companies, colleagues or business partners. ICMA
Group, an independent market research agency, handled the coordination and
analysis of the survey.
The Net Promotor Scores for international B2B manufacturing companies usually
average 20 to 30. Bekaert was very pleased with the score of 49. Furthermore,
the 28% response rate, compared to a typical benchmark of 10 to 15% for online
surveys, reflects the high level of commitment of our customers to work closely
together as business partners.
The more important results for Bekaert are those for each business activity and
region, from which we can learn to better understand and improve customer
relations and excellence. A new NPS survey is planned in 2019.
Customer week
Growing customer insight is not only relevant to our marketing & sales or business
development teams. Bekaert organizes a Customer Week every year in various
locations around the world. Through information sessions, workshops and customer visits, employees from all departments learned about who our customers
are and how we can best serve them.
In 2018 we further expanded the concept geographically. Bekaert Wire Indonesia, for instance, organized the event for the first time. Four key customers came
to display the products they manufacture with Bekaert steel wire and shared
information on what they find important in terms of quality and service. Meeting
customers in person and learning more about their processes, products and
markets, made the event a true eye-opener to our employees.
0
49
NPS
-50
-100
50
100
Annual Report Bekaert 2018
Customer-centricity during the quota and tariff turmoil…
Purchase answer to see full
attachment