Enhance differentiation through technology-based innovations and new services that will meet customer needs.
Generate cash to support strategic initiatives, to manage the portfolio of businesses, and to pay dividends.
Using Pareto analysis, PPG then identified the 20% of strategy options that would have 80% of the impact that could be derived from pursuing all of them. Developing a technology that would reduce the minimum efficient scale of its manufacturing facilities, executives felt, would be a key action. Reducing the scale would allow PPG to respond to a range of issues:
It would enable the company to expand into countries and regions that lacked the demand to support the scale of its current technology.
It would reduce warehousing and inventory levels as well as improve delivery times by allowing factories to be located closer to customers.
It would use less energy in each location and disperse energy consumption.
It would require lower levels of investment by the company.
The efforts to reduce the scale would most likely give rise to newer, more efficient, and more reliable technologies.
Generate cash to support strategic initiatives, to manage the portfolio of businesses, and to pay dividends.
Using Pareto analysis, PPG then identified the 20% of strategy options that would have 80% of the impact that could be derived from pursuing all of them. Developing a technology that would reduce the minimum efficient scale of its manufacturing facilities, executives felt, would be a key action. Reducing the scale would allow PPG to respond to a range of issues:
It would enable the company to expand into countries and regions that lacked the demand to support the scale of its current technology.
It would reduce warehousing and inventory levels as well as improve delivery times by allowing factories to be located closer to customers.
It would use less energy in each location and disperse energy consumption.
It would require lower levels of investment by the company.
The efforts to reduce the scale would most likely give rise to newer, more efficient, and more reliable technologies.