Our strategy pyramid describes how we work to grow the Group in a profitable manner. The pyramid comprises four levels and is based on long-term ownership, responsibility and efficient governance, in addition to four growth criteria and a clear focus on corporate acquisitions and organic development. It is this combination of components that generates profitable growth.
Long-term ownership means that the companies in the Beijer Alma Group are not developed with the aim of a future exit. Instead, the goal is to create groups of companies with industrially sound structures that achieve long-term success and in which sales and profitability grow over time.
Corporate social responsibility
To achieve our objective of profitable growth, we must take a responsible approach to business. This means that we limit our impact on the environment, assume a clear social responsibility, and offer a secure and stimulating work environment for our employees. It is equally important that our customers, suppliers and business partners associate Beijer Alma with sound values. We are a global company in which corporate social responsibility applies to all employees, managers and Board members, regardless of where they are in the world.
We work closely with our Group companies to assist them in setting and following up on goals and exercising long-term control. This work does not generally involve operational activities, but instead focuses on strategic development, acquisitions and investments, thereby providing our companies with access to management resources that are often lacking in medium-sized enterprises.
High customer value
A large portion of the Group companies’ products and services are adapted to meet specific customer needs or are based on unique product concepts. This creates higher value, for which customers are prepared to pay and which contributes to our profitability. As opposed to standardized volume products, adapted products and unique concepts with high customer value also provide greater leverage in sales and marketing.
International market coverage
Our production companies primarily focus on niche products, which are manufactured in relatively small series and generate higher customer value. To expand and grow with these types of products, the companies must engage in broad international sales.
Strong market positions
High quality, a broad product range, a high level of customization and outstanding service enable strong market positions. This allows the Group companies to compete by offering other forms of added value in addition to low prices, thereby creating the scope for a stronger profitability trend.
Diversified customer and supplier base
Our companies aim to have a broad customer and supplier base, thereby reducing their risk exposure and dependency on individual markets, industries or customers.
Organic growth refers to the continuous investments our companies make in product and market development. We prioritize this type of growth since it often results in higher quality and lower risk. Moreover, this work can be carried out in our existing organizations and allows us to focus on markets and products with which we are already familiar.
Corporate acquisitions include supplementary acquisitions in the Group companies, as well as the acquisition of new operations. Supplementary acquisitions can strengthen our position in selected markets or in specific technology or product areas. These types of acquisitions also carry a lower risk since they are conducted in familiar markets or areas. Acquisitions of new operations involves the acquisition of entirely new sub-groups, which provide Beijer Alma with a broader foundation.
It is crucial that we focus on growth, but to meet the requirements we have set for ourselves, this growth must be linked to strong, sustainable profitability. We accomplish this by ensuring that our companies systematically apply our four criteria as they focus on their own development – high customer value, international market coverage, strong market positions, and a diversified customer and supplier base. Add to this the remaining elements of the strategy pyramid – long-term ownership, responsibility and operational control – which contribute to the profitable growth of the Group companies.