Strategic Management in Sheerwin-Williams
Strategic management in Sherwin-Williams
Strategic management is important for organization success and hence it’s necessary for an organization to achieve growth in all aspects. Sherwin-Williams have achieved growth through consideration of strategic management of its various operational units. Planning for the future, decision making and considering the human resources are some of the major considerations for effective strategic management. Diverse natures of the market enables different companies adopt different strategies to achieve competitiveness in their respective industry. This research paper seeks to analyze the different areas in the company where Sherwin- Williams focus on strategic management to achieve massive growth in the highly competitive painting industry. The focus will be based on the company’s seven guideline values that remain a major consideration in company decision making.
Strategic management at Sherwin-Williams
Sherwin-Williams a company based in Ohio was incorporated in 1884 specializing in developing, manufacturing and selling paint and coatings and other related products has achieved massive growth over the years. Embracing a good operational structure helps it in serving its diverse market internationally. Sherwin-Williams high market growth, its brands and products, its organizational scale and a well established strategic management policy adaptation enables such high profile company gain competitiveness in the market. This paper, therefore, seeks to establish a report on analysis of strategic management and its role in ultimate growth of the company
Strategic management entails a range of functions summarized as cross-functional business analysis before implementation of any decision. Strategic management on wider scope includes SWOT analysis, devising action plans, implementing action plans and performing evaluations. Clear analysis leads to understanding the relevance of strategic management and its role in Sherwin-Williams company growth. Its divergence into many countries with an operation of 119 countries as at December 2014 is due to a massive effort by embracing strong strategic management policies in any organizational practices. The governance structure of Sherwin-Williams has committees in the highest governance body in charge of specific tasks that include setting strategies and organizational oversight.
Guiding values at Sherwin- Williams are the main pillars in the company strategic management. The guiding values are well developed and analyzed for the various stakeholders to have a clear understanding. These values include; Integrity defining who the company is and the aspect is reflected in various stakeholders, people who lay the foundation for company success, service that provides confidence over company products, quality is embraced with continuous product improvement, performance through a culture that is result oriented, innovation is adopted for new ideas and growth which is the hallmark of the company. The seven guiding values remain attainable because of the well-developed code of conduct. According to Knackstedt (2008) values play a significant role in determining interrelations within an organization and hence important for company growth
Owing to the nature of operations Sherwin-Williams in its strategic management considers environmental sustainability a key factor. Consequently, it has a well developed EcoVision for their internal sustainability initiative. The ultimate aim of the initiative is to achieve social improvement by protecting the environment. It revolves around five main considerations that include environmental impact consideration of company actions and contributing conservation of natural resources, developing innovative products to reduce impact to the environment, measuring progress in environmental sustainability, respecting social practices of society and employee defined roles in environmental sustainability. These five principles help in the EcoVision of the organization.
The company has an established process to determine composition, the qualification, and proficiency of members in highest governance body. Through this, the company considers the ability of any nominee to make contributions to the board. Consideration is given to people development through an established talent supply chain that can be well seen in its people development in 2014. The company hired more than 1500 management trainees; it was able to retain 90% of its entire global workforce, and it filed up 93% openings internally. Through this and massive training, Sherwin-William has achieved great personnel development.
According to Monkis John (2015) financial community presentation the focus to key success revolves on focus on market share growth and profit improvement in core business expanding, product offering through research and development, grow distribution organically and by Acquisition, accelerate volume, and market share growth in Latin America and build early momentum behind HGTV HOMETM by Sherwin-William at Lowe’s (Morikis). Further, the company defines competitive strengths and its controlled distribution policy on its products. Competitive strengths range from strategic global expansion; product distribution control and pricing controls brand power among others. The controlled distribution includes control on pricing, inventory, brands and staffing. Sherwin-Williams seek to grow its brand power.
Sherwin-Williams embrace membership in several trade and business associations. Membership to various bodies enables the company to participate in different forums which in term improves performance and embraces compliance according to industrial legal requirements. The company further considers performance evaluations and succession planning and widely advocates for communication among its various shareholders and mostly communication by the directors. Its listed shareholders include charities, their customers, and their current and future employee, government agencies, NGO’s, operating communities, shareholders, suppliers and trade unions. Sherwin-Williams tends to be inclusive in its operations by ensuring satisfaction to the various stakeholders
Through strategic management, the company seeks opportunities diversifying and tapping new markets. There is a sense of direction for the company and anticipating for the company future achieving efficiency and success. Success is shown by its successive increase in gross profit from the year 2009 to 2014, its market growth and market area operations. Sherwin-Williams give consideration to the management of its operations by committing resources on developing a strong management system. Through these, the company has achieved growth and worldwide acceptability increasing on its brands, improving them and maintaining a high level of customer satisfaction. The ultimate achievement is meeting shareholder value and overall company growth.
Knackstedt, V. Mary, (2008). Marketing and Client Relations for Interior Designers, Retrieved from http://careers.sherwin-williams.com/csr/gri-sustainability-report-index/organizational-profile/Morikis, John (2015, May 8). Sherwin-Williams Company. Financial community presentation, 4-7