Philosophy and Policies

Market

Aim:
To grow stronger than our competitors in attractive markets and to become leaders in selected markets. In less attractive markets we will maintain our position as long as we enjoy a return on our investment, while anticipating the potential need for withdrawal.


a) We will achieve our desired market positions and planned growth:

• first and foremost through a continuous expansion of our own activities;
• through acquisitions which complement positions we have already achieved;
• through strategic alliances with third parties.

b) The Strategic Business Units and the strategic goals and directions of the Group are established centrally and reviewed triennially.


The Strategic Business Units and the strategic goals and directions of the regions and Subsidiary Companies are established within the framework of the corporate strategy and reviewed periodically. In doing so, both the market conditions and the local marketing and technical competence are given due consideration.


c) The operational marketing activities are decentralised and implemented primarily by the Subsidiary Companies or secondly by affiliated companies or representatives.


The introduction of a central marketing organisation working at a regional or supra-regional level is considered, if a strategic goal can be achieved either more quickly and/or on a more permanent basis.


d) The sales organisations are basically divided into specialised branches, permitting separate review of their successes. A branch for contracting operations can be created if it is profitable on its own and strengthens the overall market position of the Subsidiary Company.


e) Sales are carried out worldwide with the maximum uniformity of product formulations possible and under the same internationally protected brand names and emblems. Supplying fellow producers and customers under 'private label' can be considered only if this improves our overall market position both immediately and in the long term.


f) Product pricing is established to achieve the planned level of profit and cash flow. It must, however, respect the strategic goals.