Franke Washroom Solutions - Business Analysis Report - Academic Assignment - Top Grade Papers

7/31/2019 Franke Washroom Solutions - Business Analysis Report - Academic Assignment - Top Grade Papers

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University Name

Franke WashroomSolutions

E-commerce Analysis

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Table of Contents

Introduction ........................................................................................................................................................ 2

History ............................................................................................................................................................ 2

Company vision.............................................................................................................................................. 2

Products .......................................................................................................................................................... 3

Franke Kitchen Systems ............................................................................................................................. 3

Franke Coffee Systems ............................................................................................................................... 3

Franke Washroom Systems ........................................................................................................................ 3

Franke Beverage Systems ........................................................................................................................... 3

Franke Foodservice Systems ...................................................................................................................... 4

Franke Statistics ............................................................................................................................................. 4

Environment at Franke ................................................................................................................................... 5

Company Standards .................................................................................................................................... 5

Product life cycles ...................................................................................................................................... 5

Accountability ............................................................................................................................................ 5

Open dialogue ............................................................................................................................................. 5

Market trends (Competitors and Customers) ..................................................................................................... 5

Competitors .................................................................................................................................................... 6

Customers ....................................................................................................................................................... 7

Market Segments ............................................................................................................................................... 7

Basic Benefits of e-Commerce .......................................................................................................................... 8

Increased sales ................................................................................................................................................ 9

Decreased costs .............................................................................................................................................. 9

Provide price quotes ..................................................................................................................................... 10

Increased profits ........................................................................................................................................... 10

Other Benefits .............................................................................................................................................. 10

Customer Relationship Management ............................................................................................................... 11

Website evaluation ........................................................................................................................................... 12

References ........................................................................................................................................................ 16






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Introduction

Franke is the manufacture and distributor of stainless steel and composite sanitary ware, stainless

steel industrial, retail and catering equipment and non-residential skins. The company is one of

Europes largest manufacturers of stainless steel sanitary ware and the UKs leading manufacturer ofindustrial sinks and associated catering equipment. Franke is part of the Franke Group within the

Washroom Systems division.

Michael Pieper joined the management Group in 1989. The rapid expansion and consistent Franke

transformed into a conglomerate with operations worldwide. Today Franke has approx. 13,000

employees in over 70 companies in Europe, South America, North America, Africa, Australia and

Asian.

History

The company was founded by Hermann Franke asa sheet metal business in his name in Rorschach,

Switzerland, in 1911. Then in the late '20s economic recovery in industry and construction sector led

to the incorporation of a sanitation department. Franke began with the manufacture of oven tops,

skylights and dormers.

In the 30's began producing the first units Franke sink nickeline, monel-metal and later of stainless

steel. Franke built a new factory with offices and residential buildings, and ten employees of the

company moved to Aarburg, Switzerland. Franke began the first mass production and the first all-

welded, good sink.

Hermann Franke died on January 25, 1939, and his son Walter took over the business. The Second

World War led to great difficulties in obtaining materials. During the years after the war the

company expanded facilities and production factory kitchens, as it began. Franke began exporting

products to European countries.

Company vision

The company has the following vision:

As the worlds leading provider of intelligent systems for domestic kitchens, professional food

service, coffee preparation, beverage delivery and hygiene solutions, we enable enterprise and a

rewarding experience for all concerned. (Vision, 2010)






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Products

The company has the following product line and is well versed in all of them. They are particularly

good with the products related to the in home consumer. The product lines discussed below include

both the consumer products and the products that are specifically sold to the individual businesses.

Franke Kitchen Systems

This is the companys leading provider of intelligent systems for domestic kitchens, trusted by more

users in more kitchens worldwide than any other manufacturer. The company draws on its long

history of reliability and expertise, and they build rewarding and enduring partnerships. The

company helps its partners enhance their businesses and ease their customers lives by making

working in the kitchen a pleasure.

Franke Coffee Systems

This product category in the worlds leading provider of intelligent coffee systems. The company

serves its partners through innovation and customizatioed solutions, enabling successful service

concepts and the fine art of coffee-making. The company offers their expertise and passion for coffee

and the fine art of coffee-making as the foundation of their customers service concept and shared

success.

Franke Washroom Systems

This si the worlds leading provider of intelligent washroom solutions to the public, semi-public and

commercial sector. The company continuously raises its capability and performance in reliability,

service and innovation and know how, enabling their professional customers to set benchmarks of

their own. They are expert partners, dedicated to create complete washroom systems that online the

rest in functionality, design and durability.

Franke Beverage Systems

This is the worlds leading provider of intelligent beverage systems. The company delivers

innovative, effective and environmentally friendly products and services which add and retain value

for our partners. The company is the preferred supply partner of containers to the global beverage

industry, thanks to our innovative offering, delivery performance and environmental contribution.






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Franke Foodservice Systems

This is the product line that is the worlds leading provider of comprehensive systems and services

for the foodservice industry worldwide. The company has 35 years of experience on helping

customers in the global quick-service segment to optimize their operations. The company continually

seek and deliver innovations in both technology and services that minimize customer value and

ensure that we and our customers succeed together.

Franke Statistics

Below are some of the companys facts and figures up to 2008.

The Franke Group in figures (IFRS)

2008 2007 2006 2005

Net sales mio CHF (USD) 2,936.4

(2,715.9)

3,021.0

(2,533.1)

2,440.1

(1,953.3)

1,959.0

(1,557.4)

EBITDA mio CHF (USD) 351.3

(324.9)

398.5

(334.1)

368.9

(295.3)

278.9

(221.7)

- % of net sales 12 13.2 15.1 14.2

Cash flow mio CHF (USD) 271.3

(250.9)

319.4

(267.9)

318.4

(254.9)

244.7

(194.6)

- % of net sales 9.2 10.6 13.0 12.5

Equity in mio CHF (USD) 973.7

(915.8)

1,027.1

(912.9)

810.6

(664.5)

852.6

(648.6)

- % of total assets 46.6 43.8 42.4 42.4

Investments in mio CHF (USD) 218.1

(205.1)

409.1

(363.6)

178.1

(146.0)

264.8

(201.5)

Employees 12,542 10,728 8,738 7,040

per capita sales in CHF (USD) 234,100

(216,500)

281,600

(236,100)

279,200

(223,500)

278,300

(221,200)

Number of companies 72 81 82 84






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Environment at Franke

The company believes that it is the part of the society that it is in and because of this the company

considers the environment to be an important part of their commercial and social duties. Ecological

requirement is the company responsibility.

Company Standards

Throughout the world the company respects all legal policies and requirements concerning the

environment and in addition to that they strive to achieve even higher levels of environmental

protection.

Product life cycles

The company uses raw materials, energy, water and other products as sparingly as possible. From

development to disposal, the company bears in mind the complete life cycle of our products.The

company takes great care to dispose of waste materials in an environmentally friendly way.

Accountability

Every employee or member of the company is responsible for the environment within the context of

his or her specific tasks. Employees are instructed and trained in safety and environmental protection

procedures in their plants.

Open dialogue

A local Environmental Protection Officer is appointed at every Franke location, and a member of the

Group Management is in charge of environmental matters and is responsible for the coordination and

supervision of various environmental measures.

Market trends (Competitors and Customers)

There is one in ten companies in the UK Toilet Cubicles and washroom Systems industry that couldchange ownership as a result of the current economic climate. With a surprising number of cash rich






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competitors that are waiting in the wings the market could be set for a prolonged period of

consolidation. It is safe to say that any director worth his salt would agree that, in the current climate,

there are simply too many companies chasing too little market. It is really a buyers market out there

where many directors eyeing the exit doors and highly leveraged buyouts consigned to history for the

time being especially for the cash rich companies. An analysis by the Pilmsoll Industry concludes

that there are 11 companies that have a sizeable cash reserve sat on their balance sheet that, due to

record low interest rates, is gathering nothing. These companies are now in the position to buy up

large chunks of market share at the rock bottom prices and make that money works for them. It is

just like kids in a sweet shop at the moment with all those distressed competitors available at a

fraction of their true value. The UK toilet Cubicles & Washroom Systems market is still widely

regarded as one of the UKs most fragmented sectors.

Competitors

Some of the companys direct as well as indirect UK competitors are as follows:

A W Cubicles Ltd Bridgman Ibc Ltd Aaztec Associates Ltd Bushboard Ltd Abbey Acoustic Systems Ltd Bushboard Washroom Systems Ltd Abp-Tbs Partnership Ltd Champion Fast-Track Ltd Acorn Powell Ltd Cistermiser Ltd Airdri Ltd Cotswold Autoflo Ltd Amwell Systems Ltd Cronation Ltd Anchorshield Ltd Cubicle Centre Ltd Aspect Interior Concept Ltd Cubicle Systems Ltd






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Athena Solid Surfaces Ltd Cubicplanet Ltd Atlas Washroom Systems Ltd

Dcs (First For Service) Group Ltd Avanta Uk Ltd Deb Dispensing Ltd Benedetti International Plc Decra Ltd Blackheath Group Ltd Detlef Muller Ltd Bobrick Washroom Equipment Ltd Dixon Timber Products Ltd Brent Plastics Ltd Dorma Uk Ltd Leisure Engineering Projects Ltd Excelsior Panelling Systems Ltd.

Customers

Most of the companyscustomers are the individual businesses. These businesses buy products in

large amounts from the company and this helps in creating an image that is of worth and a company

that is trustworthy. The same goes for the individual customers; they too believe that the company

delivers what they promise. And now the company has reached a point where they do not need to

advertise much as they have reached at a level of resonance with the customers. There is no need for

the company to advertise much, it has its core customers and with those customers it is able to build

more customers through good word of mouth.

Market Segments

The companys market segment consists of individual customers and businesses. It has an e-

commerce strategy that is both Business to Business and Business to Consumer. The company

website is like a catalogue that it uses to cater to the customers. The customer is targeted by

advertisements on conventional marketing tools. They also use other tools such as the internet to






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target their customers. But the existing customers that the company has make the company new

customer. This is through good word of mouth.

Frankes organizational structure

(Source: http://www.franke.com/frankegroup/main/en/home/about_us/organisation.html)

It can be seen from the picture that the company is a flat organization.There are a few people at the

top and then they have specific individuals at the business processes of the company.

The companyuses the internet to educate the customer about its products. The customer can then

valuate the products and then choose the products of his/her choice and order them by calling the

company. They can get the order delivered at their door step. Whereas for the businesses that the

company targets, there is an individual that acts as the company representative and deals with the

requirements of the individual businesses. The existing customer calls the company for their regular

requirements whereas the new customers visit the website for acquiring knowledge about the

products. The company uses both strategies of educating the customers through the website and it

also sells through its physical store. This means that the company uses a modified bricks and clicks

strategy to sell its products to the customer.

Basic Benefits of e-Commerce

Some of the basic benefits of conducting a business through the internet are as follows:




http://www.franke.com/frankegroup/main/en/home/about_us/organisation.htmlhttp://www.franke.com/frankegroup/main/en/home/about_us/organisation.html


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Increased sales

The first thing that comes into peoples minds is that they would be able to increase their sales if they

were to sell through the internet. Why do they think this? This is because they are able to reach a

wide audience. They can target an audience that is not even in the country. The internet opens up theworld for the companies that adopt e-commerce. They are able to target each and every individual

that uses the internet. But then the thing it is up to the organizations to look at the various individuals

that fall into their target market and then come up with a strategy that would be better able to reach

them.

Decreased costs

It is common sense to notice that the cost of marketing the product and to create salience with the

customer about the product or service would cost a lot if it were done physically. But when it comes

to the internet, the cost of marketing your product to a large number of people is considerably low.

The prices of banner ads on websites and the cost of pop-up ads are low and are decreasing with an

increasing rate. All this suggests that the amount spent in order to target a companys product or

service, reduces when it decides on adopting an e-Commerce strategy.

Suppose that a company sells software thought he internet, it would be less costly for that company

to produce that product again and again to sell it to the consumer. And if the company is selling

product knowledge, then it is extremely cheap to re-produce the product.

It has been discussed earlier that the cost of marketing the companys product online, is much

cheaper than the conventional ways. The most effective marketing tools i.e. the promotional

materials are very cheap and changing them to the needs of the customers is also possible with a very

less change in cost.

After marketing comes the distribution of the product. This is also very easy and less costly when a

company uses an e-Commerce strategy. But for the company that is under consideration, Franke, it is

still very easy for them to look at their distribution as the customers can order through the internetand look at the various products of the company.

The cost of processing the order of the customer can also be reduced while using an e-Commerce

strategy. The customer places an order and then checks out as soon as he is done with the checking

process. It is made sure that the customer passes through minimum number of steps when they want

to buy a product.

The most important thing that the customer is concerned about is his/her query about the

product/service. The customer wants the problem to be fixed and resolved as soon as possible. And






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on a website the company can place the most frequently asked questions. The customer can look at

those and can find their question and can get their query instantly resolved.

The company that has an e-Commerce strategy has a low telecommunication cost and its cost for

storing the information is also lower than the rest of its competitors.

Provide price quotes

On an ordinary convenient store it is hard to let the customers or the target audience know about the

updated prices. They would only be able to know about the prices when they would visit the shop or

when they would come across the companys advertisements. This little time lost while coming to

know about the updated prices can easily cost the company a customer as he/she would buy the same

product from a competitor at a low price. But by the use of the internet and by telling the customers

of the company that the prices are listed on the website and that they are updated on a regular basis,

they would come to realize that with a web site they could easily update themselves on the price and

would also say their time and money. It is clear that in a printed catalogue you are stuck with the

expense of printing a new version if you need to change prices.

Increased profits

We should understand that profit is not the same as sales. A company can have higher sales but it can

have lower profits and vice versa. By using an e-commerce strategy the company is able to expand

the size of its market from regional to national or national to international level. This is the very

reason why Franke has used this strategy. The internet opens up the world as said earlier. The

company targets the individual businesses as well as regular customers. Hence it can use an e-

Commerce strategy to target these individual target markets separately but through a single website

that is tailored according to them. This strategy allows for the company to target a specific market

segments and therefore have a competitive advantages in satisfying their needs.

Other Benefits

With an e-Commerce strategy the company is able to have a pull type processing. The customer is

able to customize the product. Let us take the example of the company at hand. A customer that

wants to remodel his washroom goes at the companys website and then looks at the various options

that he has and then choses the best ones. Then he looks at the ones that would best suit his/her

washroom. This choice of customization of various products with other stuff tells that the products






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are tailored according to the customers needs whenever they want them and how ever they want

them.

An e-Commerce strategy allows for an innovative business model. It allows for a high degree of

specialization, it reduces the time exposure, the company has increased productivity and finally it

improves the customer service.

By the use of an e-Commerce strategy, and by making use of all these benefits, the company is able

to serve its customer better and thus giving it a competitive edge. With all of the benefits discussed

above, the customer can easily meet his needs and the questions that are raised in his/her mind can be

easily answered thus making the customer happy. And when the customer is happy on the customer

service side, then it is the job of the product to do the rest. And it is evident from the long history of

good quality products of the company; they always deliver what they promise.

The company has used an e-Commerce strategy that binds the customer to them. The customer then

does not go anywhere but come to them. The whole experience of the customer which include

visiting the website, selecting the product, ordering the product, receiving the product, using and

getting queries answered are all enhanced by the companys e-Commerce strategy.

Customer Relationship Management

The employees of the company track the customers activity from the start of the buying process till

the end. They then analyse this and see what areas can be enhanced and what areas need

improvement. So in a way the customer is looked at in an ethical way, without them even knowing it.

There are two types of CRMs, operational and analytical. Operational CRM includes customer

service support, and marketing automation. Whereas analytical CRM includes applications that

analyse customer data generated by operational CRM application to provide information for

improving business performance. This is exactly what the company does. Using applications that

would track the customer behaviour on the website help the company in improving the performance

as a whole.

So in a way the customer does not need to improve their customer relations strategy. By using the

current strategy they are able to cater to their individual and business customers needs. They are

able to satisfy them by their applications and employees, making their strategy fool proof.






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Website evaluation

The customer website is tailored to the customers and the customer can easily navigate through the

website easily. The overall design of the website is also in a way tailored to the customer. For

example, the customer visits the website; he then chooses the type of product that he she wants.There are no hindrances on the way, there are no useless advertisements. And it is like ABC for the

customer to meet their needs. Let us look at the simple aspect of the company website. When a

customer wants to just have knowledge about the company and its products, he is bought to the

following layout:

(Source:http://www.franke.com/frankegroup/main/en/home/businesses/franke_kitchen_systems.html

)

The customer is able to look at the various products of the company and they at the same time can

look at the continent and the country that the products are available. With this the customer also gets

a brief description of the product category that he/she is looking at. Another very good aspect of the

company website is that they provide their potential customers with full navigation option right on

the homepage. This can be seen in the picture below:






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This is also a very good tool used by the company.

It is advised that the structure of the webpage should be structured

Looking at the company website, it looks structured and depicts the companys culture. The website

uses a grid layout that effectively conveys the company products.

It is advised not to place boxes everywhere on the website.

Looking at the website there are no excess of boxes placed on the website. As this is not advised, itgives the company an advantage over its competitors. Placing boxes does not get attention of the

customer.

The focus should be on whats important

For Franke, the company focuses more on the products that offer the most value to its customers.

Placement of Ads

As product is the main focus for Franke but still it does not create the website all about the products.

It concentrates on what the company actually delivers.

Colour scheme

The company uses a colour scheme that suits it. Franke has Orange colour in its website. It can be

clearly seen that there has been no overuse of colours by the website.

Ease of use






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Most of the customers would not even spend 5 minutes trying to figure out what the company

website is about and what it has to offer. But the best way to ensure that the company is getting the

right information out to its target market is to make the page easy to scan. Franke has made its

website pages easy to scan.

Simplicity

Looking at the overall layout of the website, Franke has the simplest website. Franke as a brand itself

depicts sophistication and professionalism, and these brand elements are evident in its website layout

as well. Franke should keep in mind that the reader should feel easy and comfortable which can be

done by pretending to be a 4 year old that would be viewing the website.

Navigation

The websites has a bar on the left of the webpage that tells them about the company and its products

and services. The company uses a drop down menu that is reviled when the cursor moves across it.

Secondly the website makes it sure that the readers or customers dont need to search to find

something. Everything is in front of the reader and so that the search bar does not have to be used.

Load times

Another important and ignored fact is load time. The website needs to be used at optimal speeds and

allow the page to load in around 1-2 seconds. This could be done by making sure that .css files are

compressed, using the Google hosted JavaScript files and ensure that the page is coded and designed

with optimal speeds in mind. The company has taken this into consideration and has thought this

through. For me the Franke website loaded faster than others, but this was a minor difference.

Font

The font is consistent in the website.

Visual Appeal

The consumer is always attracted by the visuals of the website. One of the first things that people see

is the web design is the companys brand. This first impression is all that it takes to gain a good

impression. The company has stressed on the company brand and image. It is clear from the brands

themselves that the customer is able to get what he/she desire.






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Irrelevant Stuff

Many websites use animated gifs, but these two havent. Franke has a big picture on the home page

that suggests and portrays its company vision. It does not use irrelevant stuff when it comes to the

home page considering its competitors. What the competitors do is all irrelevant. But overall Franke

has an upper hand.






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References

2010 Plimsoll Analysis - Toilet Cubicles & Washroom Systems . (2009). Retrieved May 4, 2010,

from RESEARCH AND MARKETS:

http://www.researchandmarkets.com/reports/359782/2010_plimsoll_analysis_toilet_cubicles

_and.htm

(2010). Retrieved April 4, 2010, from FRANKE: http://www.sissons.co.uk/casestudies.asp

(2010). Retrieved May 4, 2010, from Franke: http://en.franke-ws.com/publicrelation_en.html

Businesses. (2010). Retrieved May 4, 2010, from FRANKE:

http://www.franke.com/frankegroup/main/en/home/businesses/franke_kitchen_systems.html

Organization. (2010). Retrieved May 4, 2010, from FRANKE:

http://www.franke.com/frankegroup/main/en/home/about_us/organisation.html

Vision. (2010). Retrieved May 4, 2010, from FRANKE:

http://www.franke.com/content/frankegroup/main/en/home/about_us/vision.html



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