Strategy

Lagercrantz Group shall confirm its position as a profitable and growing company by developing its existing operations and by acquiring more companies with strong positions in well-defined niches.

Lagercrantz Group uses six group-wide strategies to achieve the set goals relating to earnings growth and profitability:

  • Decentralisation and management by objective
  • Strong corporate culture
  • Businessmanship
  • Strong market positions in niches
  • Increased value added
  • Acquisitions

DECENTRALISATION AND MANAGEMENT BY OBJECTIVE

Our subsidiaries run their operations with a great deal of freedom under their own responsibility. The most important business decisions are made where expertise is at its maximum – close to the customers and the market.

Each subsidiary prepares an annual business plan with quarterly targets for earnings and return on working capital. Plans are followed up on an ongoing basis and action is taken by each subsidiary as needed.

STRONG CORPORATE CULTURE

Lagercrantz Group cultivates a strong corporate culture. The common values  are an important element of the corporate culture. More detail under Values.

BUSINESSMANSHIP

Businessmanship is to contribute and to act in such a way that added value is created for the customer. This requires having a holistic business perspective, the ability to recognise new business opportunities and future needs. It also involves cultivating good relationships, a creative ability and personal sales.

STRONG MARKET POSITIONS IN NICHES

All of 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 geographical area with a total market value normally in the order of MSEK 200-1,000.

INCREASED VALUE ADDED

With local market knowledge and specialised technical know-how, Lagercrantz Group contributes added value by customising, developing and combining different products in the solutions offered to customers. The degree of refinement is continually enhanced by increasingly offering proprietary products and phasing out standard components with low margins.

ACQUISITIONS

The growth targets shall be reached through organic growth and acquisitions. Acquired companies strengthen the market position in existing areas, or pave the way for entry to new areas. It is crucial that acquired companies have a well-tried business model, good earnings capacity, strong competencies, limited risks and good growth potential.