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CSC 546: MANAGEMENT DECISION , CONTROL SYSTEMS PLANTING SEASON 2007 METTLER TOLEDO WORLDWIDE INC. DAILY NEWS 1: ORGANIZATION PROSPECTUS Because of March two, 2007 Published by: SUDEEPTHI MOGALLA SECTION OF COMPUTER SCIENCE NORTH CAROLINA STATE UNIVERISTY Email: [email, protected] edu INTRODUCTION Mettler-Toledo International Inc.

, headquartered in Greifensee, Swiss is the world’s largest manufacturer of analyzing solutions to get laboratory, professional and full applications.

With manufacturing features in UNITED STATES, Switzerland, Indonesia, United Kingdom, and China, and sales , service procedures in more than 35 countries, it is also a top global provider of finely-detailed instruments and services. It is a market leader in amounts and pipettes, and a premier provider of automated chemistry systems. It also holds leading market positions in several conditional instruments and process analytics applications. The industrial product line includes weighing sensors pertaining to production and quality, and inspection devices for manufactured goods. In addition, it provides evaluating solutions to get transportation, and food retail industries.

That supports its products through a comprehensive global services network helping customers by calibration to compliance with regulations. Additionally, it provides selling software to get fresh food management. Mettler-Toledo’s United states headquarters is located in Columbus, Kentkucky. In 2006, the business generated net sales of $1, 595 million, a 7% annual growth with an functioning income of $234 , 000, 000, a 13% increase via 2005. The company is traded on the Nyse under the ticker MTD. Mettler-Toledo International Incorporation. Page a couple of of twenty-three COMPANY BACKGROUND The company Mettler Instrumente AKTIENGESELLSCHAFT was made its debut in 1945 by Dr .

Erhard Mettler, a Swiss engineer, in Kusnacht, Switzerland. He developed considering balances that used one pans for laboratory applications. By 1973, the company moved into the electronic precision sector by creating the award winning electronic precision balance, the PT1200. With innovations applying microprocessor technology, new products just like automated titrators, and energy analyzers were added to the laboratory products. In 80, the company was bought simply by Ciba-Geigy AKTIENGESELLSCHAFT, which entered the retail scale industry and produced weighing approaches to manufacturing companies.

The company increased their sales and service network to various global locations. Toledo Scale Organization founded in 1901 and headquartered in Columbus, Ohio was the largest size manufacturer in US for industrial and retail marketplaces. In 1989, it was obtained by Mettler to form Mettler-Toledo International Incorporation. In 1997, the company proceeded to go public and started trading on the Nyse. Over the years, the organization undertook a few major acquisitions thus adding some major brands to the Mettler-Toledo group of companies. Mettler-Toledo Foreign Inc. Web page 3 of 23

PROGRESS BY PURCHASES Mettler-Toledo began its Item Inspection Division by attaining HI-SPEED Checkweigher Systems, a custom designer and company of checkweigher and product handling equipment in Ithaca, NY in 1981. In 1987, GARVENS based in European countries was purchased for its capabilities to produce checkweighing solutions intended for moving goods. The Product Inspection Division was completed by the acquisition of SAFELINE, a leading metallic detection manufacturer with services in UK and Polk, Florida in 1997. The method Analytics Split is began by the purchase of INGOLD in year 1986.

INGOLD gives pH and conductivity solutions for method measurements in chemical techniques and sterile applications. THORNTON, a service provider of industrial drinking water monitoring based in Bedford, Massachusetts was included with the group in 2150. Some of the marketplaces leaders that operate below their own brands are BERGEROT Instruments that uses powerful technology to analyze and purify chemical compounds intended for drug breakthrough discovery, CARGOSCAN that provides cargo space optimization solutions, LASENTEC that delivers solutions pertaining to in-process compound size and population examination and is component f the Automated Hormone balance Division, as well as the California based manufacturer of pipetting solutions, RAININ Tools. RAININ Mettler-Toledo International Incorporation. Page some of twenty-three holds a diverse range of us patents in the pipetting technologies and serves pharmaceutic, biotech, and research applications. Most recently, Mettler-Toledo acquired SOFTECHNICS INC. a provider of software solutions for food retailing applications in 2002. MANAGEMENT TEAM The management team at Mettler-Toledo is led by the President , CEO, Robert Farreneheit.

Spoerry that is also the Chairman of Board of Directors. Mister. Spoerry has served inside the positions of Head of Industrial , Price tag divisions to get Mettler-Toledo during the past. He is supported by the CFO, William S. Donnelly who was the Head of Product Inspection, the CIO, Jean-Lucien Gloor, and the Brain of Recruiting, Peter Burker. Table you lists the management crew. Table one particular: Mettler-Toledo Managing Team Term Robert Farreneheit. Spoerry Current Position President, Chief Executive Officer, and Chairman of Board of Directors Bill P.

Donnelly Jean-Lucien Gloor Peter Burker Olivier A. Filliol Chief Financial Officer Chief Information Officer Brain of Recruiting Head of Global Sales, Support , Marketing, and Brain of Method Analytics Mettler-Toledo International Incorporation. Page five of 3 Ken Peters Karl Meters. Lang Beat E. Luthi Urs Widmer Joakim Weidemanis Hans-Peter von Arb Standard Manager , North America Advertising General Director , Asia/Pacific Marketing Head of Clinical Division Brain of Industrial Section Head of Product Inspection Division Brain of Selling Division

KEY COMPETENCIES Mettler-Toledo was able to maintain its market management in numerous catalog primarily due to the ability to regularly develop new products and embrace new technologies. It has received a standing as a global innovator by simply successfully starting new products in several product lines every year. Research , Development has been its core competency from the beginning, and the company has increased the investment in R, D each year over the last few years. In 2005, the R, Deb spending was over $80 million, which can be 5. five per cent of the net sales.

Mettler-Toledo retains more than 1700 patents and trademarks in USA, Switzerland, Germany, UK, France, The japanese, and China. They produced strong knowledge base in automation, robotics, laser , optical applications, and commercial software development. Over the years, R, D for Mettler-Toledo features contributed through application of advanced technologies, feature-based enhancements in its products, increasing their products Mettler-Toledo International Inc. Page 6th of twenty-three reliability , accuracy, and developing fresh software capabilities for its products.

With a great R, Deb force of around 800 personnel, the company could focus on multiple development initiatives simultaneously. As increasing numbers of products in the company started out including improvements in user-interface through touchscreen and FLATSCREEN technologies, an important R, Deb effort entered developing the products’ user-interfaces, the helping software, and information devices for data management. The importance of software development as a essential R, Deb effort could be understood from the fact that nearly half of Mettler-Toledo’s R, Deb personnel are software engineers.

Beyond R, D work, Mettler-Toledo has also made profound inroads in managing the expense structure. The organization has developed a solid base of cost lowering functions through its Global Supply Cycle Group, including the Global Procurement, Global Electronic devices, and Global Logistics clubs. These groups work strongly with all the manufacturing facilities and marketing clubs on local and global initiatives to minimize manufacturing costs, internal process costs, total cost of purchase, and logistics costs.

In addition they work with the Information Technology teams to put into action new software tools that enhance interior process efficiencies, and provide effective data research solutions. Crucial initiatives just like supplier category management, company procurement credit card, and field Mettler-Toledo Worldwide Inc. Web page 7 of 23 staff automation have enabled Mettler-Toledo to reduce their functioning costs considerably. Members via Marketing, Getting, and Strategies work strongly with R, D and Engineering in product development , re-engineering to make sure that efforts are being made to reduce developing costs.

An additional aspect of Mettler-Toledo that makes it unique and minimizes its risk is the ability to work profitably in diverse markets. They have produced innovative products in most of the markets that they serve and have maintained a solid cross-segment knowledge-sharing that allowed them to make use of a technology in various segments. Crucial business functions like Finance, Supply Sequence, Service, Human Resources, and Legal are central. They support the decentralized business units to coordinate their R, G, marketing, and customer support features in product development and customer service.

PRODUCTS , SERVICES The merchandise and companies of Mettler-Toledo can be extensively categorized into Laboratory Devices, Industrial Devices and Price tag Solutions. Procedure Analytics and Product Inspection are sub-categories within Lab and Industrial groups. The make up of its 2005 net product sales between these business segments is displayed in Figure 1 . Mettler-Toledo International Inc. Page almost 8 of 23 Figure one particular: 2005 Product sales ($ in millions) Retail Solutions, $193, 13% Laboratory Instruments, $667, 45% Commercial Instruments, $622, 42%

Lab Instruments Laboratory balances are the primary product group from this business part and are found in research , development, medication discovery, and process quality control. They may be capable of weighing from one ten-millionth of a gram to 32 kilograms. Other items offered in this segment consist of pipettes, analytical instruments, and automated hormone balance solutions. Titrators, thermal research systems, and pH metres form the analytical instrument group. The data catch, analysis and management will be facilitated by way of a Lab Software known as LabX.

Within this portion, Process Stats forms a significant subgroup of goods that are used in pharmaceutical, biotech, beverage, microelectronics and substance applications. They provide Mettler-Toledo International Inc. Web page 9 of 23 messfühler technology intended for pH, dissolved oxygen, carbon dioxide, conductivity and turbidity. They also include tuned and washing systems. Commercial Instruments This segment generally includes commercial scales and balances to get varying weighing needs and ranges. They are really used in testing, counting, ingredient mixing, and mail selecting applications.

Items in this part also offer in-process and in-motion measurement, dimensioning and id technologies. Analyzing scales pertaining to trucks and railcars make up the heavy tools products. All these products are supported by exclusive software just like FreeWeigh. Net for statistical quality control, and Formweigh. net pertaining to formulation , batching. Product Inspection is actually a key merchandise group through this segment the fact that company has invested more and more in the past few years. The items are used in food control , product packaging, pharmaceutical, and manufacturing industries.

They are made up of metal diagnosis systems, Xray visioning gear, and checkweigher systems. Retail Solutions Full segment is the smallest of Mettler-Toledo businesses in terms of revenue. These are scales used in grocery stores, and Mettler-Toledo International Inc. Page 10 of 23 food selling businesses intended for weighing and labelling applications. With Mettler-Toledo entering the different emerging markets like India, this organization segment can be expected to grow significantly. Mettler-Toledo also provides software solutions because of its retail products through its Softechnics department.

The software provides capabilities for retail products on hand management to get fresh food, and included data supervision. The various goods offered by Mettler-Toledo are listed in Table 2 . Table 2: Products , Service Offerings Product Categories Laboratory Evaluating Products , Solutions Mini and ultra-micro balances, conditional balances, accurate , high-capacity precision amounts, mass comparators, weighing segments, halogen water analyzer, pipette calibration workstation, and support software.

Conditional Instruments Cold weather values, cold weather analysis, titrators, pH-/cond-/ISE-meters, thickness meters, refractometers, and electrodes for laboratory and field. Pipettes , Tips One channel pipettes (manual , electronic), multiple channel pipettes, tips for Mettler-Toledo International Inc. Page 10 of 3 LTS , traditional pipettes ” biography clean, positive displacement pipettes , tips, and repeated pipettes. Automated Chemistry Solutions Lab software, chemical activity, chromatography, particle system characterization, reaction calorimeters, automated lab reactors, and informatics , workflow management.

Process Stats Transmitters , Meters, pH , Redox sensors, blended oxygen detectors, total organic and natural carbon devices, conductivity/resistivity sensors, dissolved ozone sensors, dissolved carbon dioxide receptors, flow detectors, and cleaning , tuned systems. Industrial Weighing Automobile refinish weighing machines, material transfer controllers, along with, compact and counting scales, overhead/monorail weighing machines, postal alternatives, weigh themes , fill cells, computer software, statistical method control, and weighing terminals. Product Inspection Transportation , Logistics Checkweighing, metal recognition, and Xray.

Air cargo scales, dimensioners, forklift weighing scales, post/mail alternatives, rail weighing machines, and Mettler-Toledo International Inc. Page doze of 3 weighbridges , truck weighing scales. Food Full Scales (basic, retail table, self assistance, retail suspending, checking , receiving), gift wrapping machines, car labelling , security tags, and price tag software. BUYERS The customer foundation of Mettler-Toledo is distributed across quite a few industries like chemical, pharmaceutic, biotechnology, food , refreshment, raw materials, pulp , paper, jewellery, travel , logistics, OEM, machinery , automotive, and selling.

Most customers will be serviced through their three business section groups, Research laboratory, Industrial and Retail. Specific key accounts with which the company has developed ideal relationships over the years are maintained and maintained their Ideal Accounts group. The customer foundation of Mettler-Toledo is also very diversified with sales by each of their top consumers accounting for less than 3% of total net sales. MANUFACTURING Mettler-Toledo’s developing facilities known as Producing Agencies (POs) can be found primarily in USA, UK, Switzerland, Australia, and Cina.

Each PO dedicates their product Mettler-Toledo International Inc. Page 13 of 3 development and manufacturing attempts to a certain number of product lines and serves a global needs of these products. This enables Mettler-Toledo to lower R, G costs, maintain a customer target, and to develop product leadership by a PO in its line of business. The Detras work with each other in their product development, manufacturing, and procurement attempts, and with the advertising groups understand customer requires.

Safeline, Garvens, and High speed, which serve the Product Inspection markets, function very closely in coordinating their particular efforts. With regards to the manufacturing ability and capacity constraints, particular POs act as internal suppliers to other POs who may use all their manufacturing solutions. MARKETING, PRODUCT SALES , SERVICES Unlike the Producing Businesses, the Advertising Organizations (MOs) at Mettler-Toledo are segmented based on all their geographic focus. The MOs are located around the globe, with the greatest groups in USA and Europe.

This permits them to understand the specific local needs in the customers, and develop close relationships using their entire customer base. The revenue and assistance efforts parallel that of the marketing therefore maintaining a close loop for the customer marriage. MettlerToledo keeps a large staff base of 5000 staff that is Mettler-Toledo International Incorporation. Page 18 of 3 spread over thirty-five countries as marketing, assistance technicians and customer service pros.

Mettler-Toledo also offers numerous providers in the form of repair , support maintenance, and value-added providers for regulatory compliance. These are offered across the globe depending on local regulations. Their global service network has widened over the years because they explore many emerging markets. In 2006, revenues via service agreements, repair, and spare parts constituted 23% in the company’s net sales. TECHNOLOGY , MIS The company’s IT operations happen to be lead by their corporate team in Switzerland, which preserves the globally used systems, providing frequent updates and support.

All their global contracts with crucial hardware and software vendors ensure merchandise standardization and concurrent improvements. They have on the other hand decentralized most of the locally operated systems, like their MRP and ENTERPRISE RESOURCE PLANNING solutions in the manufacturing services and marketing organizations. Like a highly decentralized organization, aside from some global software systems, most THAT infrastructure is usually maintained regionally. The regional IT teams also manage the telecommunications, mobile phone, and data networks for their place.

The company features continuously manufactured significant purchases to standardize the THIS operations wherever Mettler-Toledo Worldwide Inc. Webpage 15 of 23 required, and presented the flexibility to local products when bigger efficiencies could possibly be gained through local marketing. The company uses ERP deals from recognized providers like Baan and Oracle, and in addition from small companies like Fourth Move, and MAPICS. The company uses numerous organization software intended for various revenue and assistance operations, along with hosted solutions for e-procurement and e-commerce applications.

PERSONNEL , TRADITION Mettler-Toledo follows a highly decentralized organization composition providing excessive levels of autonomy to the sections, encouraging gumptiouspioneering, up-and-coming responsibility and accountability for growth and success. The merchandise development and manufacturing activities are performed by the producing organizations, where the marketing, product sales and support functions would be the responsibility from the marketing organizations. All Detrás and Without difficulty are maintained corporate global functions.

Mettler-Toledo employs a lot more than 9000 fulltime employees throughout the world with more than four thousand in Europe, over 3000 in the Unites states, and about one thousand in Asia. About fifty percent of the staff is element of their global sales and support network. R, D with over 800 employees is likewise a key function in the organization. The company provides various worker benefits including a pension , post-retirement personal savings plan that cost them $1. your five Mettler-Toledo Intercontinental Inc. Web page 16 of 23 , 000, 000 in 2005.

Their medical benefits price over $10,50 million annually. Employee Obtain Programs through corporate deals are provided for products just like personal computers, office supplies, customer technology, mobile phone services, and home mortgage. Mettler-Toledo is an equal opportunity company and employs employees from diverse social backgrounds and geographic places. Due to their occupation, they generally hire engineering graduates coming from well known establishments in Switzerland, USA, and China.

Almost all of their mature management contains a strong deductive background with engineering, math concepts, or finance focus and many middle supervision and elderly management employees hold advanced degrees in engineering or business. In USA, they will recruit new graduates within their Initial Profession Experience program (ICE) a rotational plan for undergraduate degree holders. They also offer internship options in IT, marketing, and provide chain administration, and offer fulltime opportunities after their graduation.

Mettler-Toledo keeps a core set of cultural ideals it wants its workers to follow inside their day to day operations. It includes preserving a strong give attention to quality in both its products , solutions, and its inner processes. This stresses the importance of being extreme in checking out new marketplaces, and adopting new technologies. There is also a solid need to be Mettler-Toledo International Incorporation. Page 17 of twenty-three cost-conscious in order that it can maintain its competitiveness against larger players and unsuitable market forces. It desires employees to exhibit initiative and leadership features.

Employees must also be progressive and be willing to face the hurdles in executing their particular ideas. Having a global marketplace in place, the business should be agile allowing it to quickly react to alterations. A semi-formal work environment is usually maintained to formulate closer employee relationships. The organization restricts alone in the use of titles to its administration and in reality doesn’t make use of “Vice President as a name. Except for department heads, who also are both known as a Head of split or Standard Manager, all the others are known as Managers, Engineers, or perhaps Analysts.

An enterprise casual costume code is usually maintained whatsoever of its locations. COMPETITIVE LANDSCAPE The markets Mettler-Toledo are operating in are highly competitive, and fragmented by site and program. In most markets, they face stiff competition from corporations that are focussed and specializing in their offerings. In many cases, the focussed competitors are small divisions of very large international companies with extensive resources. These elements further symbolize the necessity intended for Mettler-Toledo to develop efficient R, D and manufacturing operations to maintain its cost structure.

Mettler-Toledo International Inc. Page 18 of twenty three The major competitors of Mettler-Toledo are Beckman Coulter Incorporation. with $2. 5 billion in total annual revenues, Siemens AG with $117 billion in total annual revenues, and finally Thermo Fisher Scientific Incorporation. with $3. 8 billion dollars in twelve-monthly revenues. Amongst these Siemens AG operate in many other markets and businesses that MettlerToledo will not involve in. Due to its expense structure advantage, Mettler-Toledo was able to maintain working margins of over 13%, when their particular competitors have recorded all of them at below 10%.

RISK FACTORS Mettler-Toledo notes that since it operates in numerous countries, its operating income could be affected by forex fluctuations. It is international procedures also deal with risks as trade limitations, employee preservation in developing markets, deficiency of protection for its intellectual home, nationalization, and economic and political stability in some countries. Some of the market segments are highly competitive and hence can be difficult to constantly maintain industry leadership in multiple products.

As Mettler-Toledo grows by means of acquisitions, it has the risk of compression challenges, not enough focus on crucial initiatives, and loss of essential employees. Because Mettler-Toledo operate in many marketplaces subject to regulations, they have the risk of not meeting a few of the regulations with time. Exposure to additional income taxes and unanticipated duty Mettler-Toledo Foreign Inc. Webpage 19 of 23 laws are also a few of the perceived hazards faced by simply MettlerToledo. ECONOMICAL PERFORMANCE Mettler-Toledo International Incorporation. has been delivering strong economical results through the years.

It produced net revenue of $1, 596 mil in 2006, a 7. 6% increase from its 2005 sales revenue of $1, 482 million. Figure 2 shows 2006 product sales by geographic region. Number 2: 2006 Sales ($ in millions) by region Asia , Rest of the Globe, $287, 18% Europe, $670, 42% North , To the south Americas, $638, 40% The chart in Figure three or more shows Mettler-Toledo’s financial efficiency since 2001. It shows that net sales have elevated at an normal of 7% year over year. The operating cashflow increased to $192 million in 2006, an 8. 5% increase from $177 Mettler-Toledo International Inc. Page twenty of twenty-three million in 2005.

The adjusted functioning income (gross profit less R, D and SG, A expenses) increased by simply 13% to $234 mil in 2006 via $207 , 000, 000 in 2006. Figure 3: Financial Info (2001-2006) Net Sales $1, 800 Working Cash Flow Altered Operating Profits $1, 595 $1, six hundred $1, 482 $1, 404 $1, 304 $1, 214 $1, 148 $1, 400 $ in millions $1, 200 $1, 000 hundreds of dollars $600 $165 $179 $167 $102 $115 $165 two-hundred dollar $0 2001 2002 the year 2003 Years $117 2004 $166 2005 $177 2006 The business reported Revenue per Discuss (EPS) of $3. 86 for 06\, which is a 29% growth from $2. 52 in 2006. Through these results the organization has shown a strong “balance sheet” and a substantial cash flow generation.

POSITIONING TO GET 2007 AND BEYOND The corporation exceeded anticipations in 2006 with strong economical results, and it is expected to succeed in 3 years ago and past. With rising cost demands due to cost increases for oil, steel, paper , pulp, and other raw materials, the business Mettler-Toledo International Inc. Webpage 21 of 23 $192 $400 $207 $234 must continue to boost its cost composition through effective and effecient processes. A few of the key customercentric marketing endeavours undertaken by the company like “Spinnaker have been successful in generating fresh customer qualified prospects and enhancing existing client relationships.

Their new product commences have been successful in 2006, plus the company continually develop new items in many of its business segments. In 2006, the company was very successful in elevating its market share in appearing markets like Russia and India. While using acquisition of syndication channels in these countries, its market share can be expected to increase at significant rates in 2007 and beyond. The analysts calculate that profits for Mettler-Toledo would increase to $1. 69 billion dollars in 2007 and to $1. 78 billion dollars for 2008. It symbolizes an annual increase of six. 3% for 2007 and 5. 3% for 2008.

In the short term, the company aims to merge all it is existing market positions inside the various products it today holds the very best positions, specifically industrial and laboratory instruments. It aims to increase their market share in retail considering market simply by focusing on appearing markets, that offer the greatest likelihood of untapped market segments. In the long term, the company will appear to be the market leader in every product portions ranging from clinical Mettler-Toledo International Inc. Web page 22 of 23 devices, industrial musical instruments, process analytics, product inspection, and biochemistry solutions.

Additionally, it plans to consolidate its retail market talk about through relationships with global retailers. The strong beliefs developed by its employees, the continued purchase in developing innovative products, diversified consumer bottom, and global service network should make certain that Mettler-Toledo is within a strong location to fulfil both it is short-term and long-term objectives. REFERENCES 1 . Mettler-Toledo web page (http://us. mt. com) 2 . Yahoo Financial (http://finance. yahoo. com) three or more. Hoovers (www. hoovers. com) 4. The Wall Street Journal Online (http://online. wsj. com) Mettler-Toledo International Incorporation. Page twenty-three of twenty-three

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