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 uses group-wide strategies and a strong corporate culture to achieve the set goals relating to earnings growth and profitability.
Strategies
Strong market positions in niches
All Lagercrantz subsidiaries strive for a strong market position within their own niche. A niche consists of a well-defined technology area, customer segment or geographical area with a total market value that normally amounts to MSEK 200-1,000.
High value added
With good market knowledge and specialised technical expertise, Lagercrantz' subsidiaries create added value for customers and suppliers by customising, developing and combining different products in the solutions offered.The degree of refinement has been continually enhanced by increasing the offer of proprietary products and phasing out standard components with low margins. The gross margin of the Group has increased for several years, from an average of 20 percent to over 30 percent.
Acquisitions
The growth targets shall be reached through organic growth and acquisitions. Acquired companies either strengthen the market position in existing areas or pave the way for entry into new areas. We strive to acquire companies with a proven business models, a strong market position in their niches, good earnings capacity, strong management and good growth potential. We aim to carry out 5-8 acquisitions per year, something we have achieved in recent years.
Corporate culture
Core values
Our core values are an important part of our corporate culture and consist of accountability and freedom, simplicity and efficiency, together with a willingness to change. In acquisitions, Lagercrantz builds on the strong corporate culture found in the acquired companies, thus strengthening both its own corporate values as well as those of the acquired companies.
Decentralisation and management by objective
Each subsidiary runs its operations with a great deal of freedom, but with accountability. Accordingly, the most important business decisions are made where the expertise it as its maximum - close to the customers and the market. Each subsidiary prepares an annual business plan with quarterly targets for earnings and working capital. Plans are followed up on an ongoing basis and action is taken by each subsidiary as needed. In addition, the companies are systematically compared to each other every quarter, which spurs improvements.
Businessmanship
Businessmanship is to create added value for customers by understanding the market, the technology and the customers' needs. This requires a holistic business perspective and an ability to recognise opportunities.