Lagercrantz uses six strategies to achieve its goal of earnings growth and profitability:
- Decentralisation and management by objectives
- A strong corporate culture
- Businessmanship
- Strong positions in niches
- Increased value added
- Acquisitions
They were established following the strategy work during 2004-2005.
DECENTRALISATION AND MANAGEMENT BY OBJECTIVE
Lagercrantz Group has about 25 operating subsidiaries, each of which operates as an individual profit centre with its own identity, its own goals and under its own responsibility. In this way the mission-critical decisions are made close to customers and market. It is here that the knowledge about customers needs is the greatest. This also creates short decision-making paths and promotes a high degree of participation.
The subsidiaries are managed by objective, goals that are longterm based on the Group’s three main requirements, for growth, profitability and development. Business plans are drawn up each year for every company with quarterly goals for earnings and how much capital is tied up in the business. Plans are followed up on a regular basis and action is taken as needed.
STRONG CORPORATE CULTURE
Lagercrantz Group grows a strong corporate culture, which traces its origin in the way of working and the approach to business that is characteristic of a successful technology trading company. There is rich lode of collective experience in the Group and this is systematically exploited and disseminated in the form of courses and training, but also by encouraging engagement and team play between associates in different parts of the Group.
The common value base for Lagercrantz Group’s corporate culture rests on five concepts:
- Businessmanship – the ability to see opportunities, to create good relationships and to focus on earnings.
- Responsibility and freedom – the ability to take control and realise own ideas that generate earnings.
- Simplicity – the ability to work in a well thought-out and concentrated manner and to find simple solutions.
- Efficiency – the ability to prioritise the right things and to do them in the right way.
- Willingness to change – the ability to grasp new things and to adapt to the market.
BUSINESSMANSHIP
Businessmanship is something very basic for Lagercrantz Group and distinguishes all work that is done. This concept includes contributing knowledge and acting in such a way that added value is created for the customer – by refining the products of others or by offering our own products. Businessmanship means having a holistic perspective and the ability to recognise new business opportunities and future needs in the marketplace. It also means working close to your customers and to create good sustainable relationships on a long-term basis based on high ethics and honesty. Lagercrantz is a value-creating partner for buyers of technology.
STRONG MARKET POSITIONS IN NICHES
Lagercrantz Group’s subsidiaries strive to achieve a strong market position in their niche. A niche consists of a well-defined technology area, customer segment or geographic area with a total market value that is normally in the range of MSEK 200–1,000. This means working on a defined market with considerable possibilities of impacting business terms and conditions. Proximity to the customers, high technical competence and a focused method of working make it possible for us to create sustainable competitive advantages, even in relation to the largest international players. For Lagercrantz Group, having a leading position means to be number one or two in each respective niche.
INCREASED VALUE ADDED
Lagercrantz Group is focused on delivering high value added to its customers, and continually strives to raise it. With knowledge of a local market and specialised technical know-how, Lagercrantz Group contributes to the added value by customising, developing and combining products from different suppliers in the solutions presented to the customers. There is also customer benefit in the fact that Lagercrantz Group makes different manufacturers’ products available on the market and offers training, support and service. The degree of refinement is continually enhanced by phasing out standard components and replacing them with products with higher value-added for the customer. New products and services are also increasingly being offered. The development is in the direction of areas which are technically complicated, or open the doors for a unique offer.
ACQUISITIONS
Lagercrantz Group’s goal for earnings growth will be realised in part by organic growth and in part by acquisitions. The acquired companies strengthen the market position in existing areas. Acquisitions are also made in order to enter new and interesting areas. It is crucial that acquired companies have a welltested business model and earnings capacity, great competency among its leaders and associates and good growth opportunities. Expansion in the technology areas where Lagercrantz Group is already established are made all over northern Europe. For other areas, which are new to Lagercrantz Group, acquisitions will in the first instance be made in the Nordic Region.