Franke Washroom Solutions - Business Analysis Report - Academic Assignment - Top Grade Papers

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E-commerce Analysis
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GRBSOL Ltd.; ali [Pick the date]
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Solutions
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Franke Washroom
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Table of Contents
Introduction ........................................................................................................................................................ 2 History ............................................................................................................................................................ 2 Company vision.............................................................................................................................................. 2 Products .......................................................................................................................................................... 3 Franke Kitchen Systems ............................................................................................................................. 3 Franke Coffee Systems ............................................................................................................................... 3 Franke Washroom Systems ........................................................................................................................ 3 Franke Beverage Systems ........................................................................................................................... 3
Franke Statistics ............................................................................................................................................. 4 Environment at Franke ................................................................................................................................... 5
Product life cycles ...................................................................................................................................... 5 Accountability ............................................................................................................................................ 5 Open dialogue ............................................................................................................................................. 5 Market trends (Competitors and Customers) ..................................................................................................... 5 Competitors .................................................................................................................................................... 6
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Customers ....................................................................................................................................................... 7
Market Segments ............................................................................................................................................... 7 Basic Benefits of e-Commerce .......................................................................................................................... 8 Increased sales ................................................................................................................................................ 9 Decreased costs .............................................................................................................................................. 9 Provide price quotes ..................................................................................................................................... 10
Increased profits ........................................................................................................................................... 10 Other Benefits .............................................................................................................................................. 10
Customer Relationship Management ............................................................................................................... 11 Website evaluation ........................................................................................................................................... 12
References ........................................................................................................................................................ 16
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Company Standards .................................................................................................................................... 5
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Franke Foodservice Systems ...................................................................................................................... 4
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Introduction
Franke is the manufacture and distributor of stainless steel and composite sanitary ware, stainless steel industrial, retail and catering equipment and non-residential skins. The company is one of Europes largest manufacturers of stainless steel sanitary ware and the UKs leading manufacturer of industrial sinks and associated catering equipment. Franke is part of the Franke Group within the Washroom Systems division.
Michael Pieper joined the management Group in 1989. The rapid expansion and consistent Franke transformed into a conglomerate with operations worldwide. Today Franke has approx. 13,000 employees in over 70 companies in Europe, South America, North America, Africa, Australia and Asian.
History
The company was founded by Hermann Franke asa sheet metal business in his name in Rorschach, Switzerland, in 1911. Then in the late '20s economic recovery in industry and construction sector led to the incorporation of a sanitation department. Franke began with the manufacture of oven tops, skylights and dormers.
In the 30's began producing the first units Franke sink nickeline, monel-metal and later of stainless steel. Franke built a new factory with offices and residential buildings, and ten employees of the
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welded, good sink. products to European countries.
company moved to Aarburg, Switzerland. Franke began the first mass production and the first all-
Hermann Franke died on January 25, 1939, and his son Walter took over the business. The Second World War led to great difficulties in obtaining materials. During the years after the war the company expanded facilities and production factory kitchens, as it began. Franke began exporting
Company vision
The company has the following vision: As the worlds leading provider of intelligent systems for domestic kitchens, professional food service, coffee preparation, beverage delivery and hygiene solutions, we enable enterprise and a rewarding experience for all concerned. (Vision, 2010)
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Products
The company has the following product line and is well versed in all of them. They are particularly good with the products related to the in home consumer. The product lines discussed below include both the consumer products and the products that are specifically sold to the individual businesses.
This is the companys leading provider of intelligent systems for domestic kitchens, trusted by more users in more kitchens worldwide than any other manufacturer. The company draws on its long history of reliability and expertise, and they build rewarding and enduring partnerships. The company helps its partners enhance their businesses and ease their customers lives by making working in the kitchen a pleasure.
This product category in the worlds leading provider of intelligent coffee systems. The company serves its partners through innovation and customizatioed solutions, enabling successful service concepts and the fine art of coffee-making. The company offers their expertise and passion for coffee and the fine art of coffee-making as the foundation of their customers service concept and shared success.
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Franke Washroom Systems Franke Beverage Systems
This si the worlds leading provider of intelligent washroom solutions to the public, semi-public and commercial sector. The company continuously raises its capability and performance in reliability, service and innovation and know how, enabling their professional customers to set benchmarks of their own. They are expert partners, dedicated to create complete washroom systems that online the rest in functionality, design and durability.
This is the worlds leading provider of intelligent beverage systems. The company delivers innovative, effective and environmentally friendly products and services which add and retain value for our partners. The company is the preferred supply partner of containers to the global beverage industry, thanks to our innovative offering, delivery performance and environmental contribution.
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Franke Coffee Systems
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Franke Kitchen Systems
Franke Foodservice Systems This is the product line that is the worlds leading provider of comprehensive systems and services for the foodservice industry worldwide. The company has 35 years of experience on helping customers in the global quick-service segment to optimize their operations. The company continually seek and deliver innovations in both technology and services that minimize customer value and ensure that we and our customers succeed together.
Franke Statistics
The Franke Group in figures (IFRS)
Below are some of the companys facts and figures up to 2008.
2008 Net sales mio CHF (USD)
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2007 2006 3,021.0 2,440.1 (1,953.3) 368.9 (295.3) 15.1 318.4 (254.9) 13.0 810.6 (664.5) 42.4 178.1 (146.0) 8,738 279,200 (223,500) 82 (2,533.1) 398.5 (334.1) 13.2 319.4 (267.9) 10.6 1,027.1 (912.9) 43.8 409.1 (363.6) 10,728 281,600 (236,100) 81
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2,936.4 (2,715.9) 351.3 (324.9) 12 271.3 (250.9) 9.2 973.7 (915.8) 46.6 218.1 (205.1) 12,542 234,100 (216,500) 72
EBITDA mio CHF (USD)
Cash flow mio CHF (USD)
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- % of net sales
- % of net sales
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Equity in mio CHF (USD)
- % of total assets
Investments in mio CHF (USD)
Employees per capita sales in CHF (USD)
Number of companies
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2005 1,959.0 (1,557.4) 278.9 (221.7) 14.2 244.7 (194.6) 12.5 852.6 (648.6) 42.4 264.8 (201.5) 7,040 278,300 (221,200) 84
Environment at Franke
The company believes that it is the part of the society that it is in and because of this the company considers the environment to be an important part of their commercial and social duties. Ecological requirement is the company responsibility.
Company Standards
environment and in addition to that they strive to achieve even higher levels of environmental protection.
Product life cycles
The company uses raw materials, energy, water and other products as sparingly as possible. From development to disposal, the company bears in mind the complete life cycle of our products.The company takes great care to dispose of waste materials in an environmentally friendly way.
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Open dialogue
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Accountability procedures in their plants.
Every employee or member of the company is responsible for the environment within the context of his or her specific tasks. Employees are instructed and trained in safety and environmental protection
A local Environmental Protection Officer is appointed at every Franke location, and a member of the Group Management is in charge of environmental matters and is responsible for the coordination and supervision of various environmental measures.
Market trends (Competitors and Customers)

There is one in ten companies in the UK Toilet Cubicles and washroom Systems industry that could change ownership as a result of the current economic climate. With a surprising number of cash rich
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Throughout the world the company respects all legal policies and requirements concerning the
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competitors that are waiting in the wings the market could be set for a prolonged period of consolidation. It is safe to say that any director worth his salt would agree that, in the current climate, there are simply too many companies chasing too little market. It is really a buyers market out there where many directors eyeing the exit doors and highly leveraged buyouts consigned to history for the time being especially for the cash rich companies. An analysis by the Pilmsoll Industry concludes that there are 11 companies that have a sizeable cash reserve sat on their balance sheet that, due to record low interest rates, is gathering nothing. These companies are now in the position to buy up large chunks of market share at the rock bottom prices and make that money works for them. It is just like kids in a sweet shop at the moment with all those distressed competitors available at a regarded as one of the UKs most fragmented sectors.
Competitors
A W Cubicles Ltd Bridgman Ibc Ltd
Aaztec Associates Ltd Bushboard Ltd
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Airdri Ltd
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Abbey Acoustic Systems Ltd Abp-Tbs Partnership Ltd Champion Fast-Track Ltd Acorn Powell Ltd Cistermiser Ltd Cotswold Autoflo Ltd Amwell Systems Ltd Cronation Ltd Anchorshield Ltd Cubicle Centre Ltd Aspect Interior Concept Ltd Cubicle Systems Ltd
Bushboard Washroom Systems Ltd
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Some of the companys direct as well as indirect UK competitors are as follows:
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fraction of their true value. The UK toilet Cubicles & Washroom Systems market is still widely
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Athena Solid Surfaces Ltd Cubicplanet Ltd Atlas Washroom Systems Ltd Dcs (First For Service) Group Ltd Avanta Uk Ltd Deb Dispensing Ltd Benedetti International Plc Decra Ltd Blackheath Group Ltd Detlef Muller Ltd Bobrick Washroom Equipment Ltd Dixon Timber Products Ltd Brent Plastics Ltd Dorma Uk Ltd
Leisure Engineering Projects Ltd
Excelsior Panelling Systems Ltd.
Customers
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Market Segments
Most of the companyscustomers are the individual businesses. These businesses buy products in large amounts from the company and this helps in creating an image that is of worth and a company that is trustworthy. The same goes for the individual customers; they too believe that the company delivers what they promise. And now the company has reached a point where they do not need to advertise much as they have reached at a level of resonance with the customers. There is no need for the company to advertise much, it has its core customers and with those customers it is able to build more customers through good word of mouth.
The companys market segment consists of individual customers and businesses. It has an ecommerce strategy that is both Business to Business and Business to Consumer. The company website is like a catalogue that it uses to cater to the customers. The customer is targeted by advertisements on conventional marketing tools. They also use other tools such as the internet to
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target their customers. But the existing customers that the company has make the company new customer. This is through good word of mouth. Frankes organizational structure
(Source: http://www.franke.com/frankegroup/main/en/home/about_us/organisation.html)
It can be seen from the picture that the company is a flat organization.There are a few people at the
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Basic Benefits of e-Commerce
top and then they have specific individuals at the business processes of the company.
The companyuses the internet to educate the customer about its products. The customer can then valuate the products and then choose the products of his/her choice and order them by calling the company. They can get the order delivered at their door step. Whereas for the businesses that the company targets, there is an individual that acts as the company representative and deals with the requirements of the individual businesses. The existing customer calls the company for their regular requirements whereas the new customers visit the website for acquiring knowledge about the products. The company uses both strategies of educating the customers through the website and it also sells through its physical store. This means that the company uses a modified bricks and clicks strategy to sell its products to the customer.
Some of the basic benefits of conducting a business through the internet are as follows:
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Increased sales
The first thing that comes into peoples minds is that they would be able to increase their sales if they were to sell through the internet. Why do they think this? This is because they are able to reach a wide audience. They can target an audience that is not even in the country. The internet opens up the world for the companies that adopt e-commerce. They are able to target each and every individual that uses the internet. But then the thing it is up to the organizations to look at the various individuals that fall into their target market and then come up with a strategy that would be better able to reach them.
It is common sense to notice that the cost of marketing the product and to create salience with the customer about the product or service would cost a lot if it were done physically. But when it comes to the internet, the cost of marketing your product to a large number of people is considerably low. The prices of banner ads on websites and the cost of pop-up ads are low and are decreasing with an increasing rate. All this suggests that the amount spent in order to target a companys product or service, reduces when it decides on adopting an e-Commerce strategy. Suppose that a company sells software thought he internet, it would be less costly for that company to produce that product again and again to sell it to the consumer. And if the company is selling
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less change in cost.
product knowledge, then it is extremely cheap to re-produce the product. It has been discussed earlier that the cost of marketing the companys product online, is much cheaper than the conventional ways. The most effective marketing tools i.e. the promotional materials are very cheap and changing them to the needs of the customers is also possible with a very
After marketing comes the distribution of the product. This is also very easy and less costly when a company uses an e-Commerce strategy. But for the company that is under consideration, Franke, it is still very easy for them to look at their distribution as the customers can order through the internet and look at the various products of the company. The cost of processing the order of the customer can also be reduced while using an e-Commerce strategy. The customer places an order and then checks out as soon as he is done with the checking process. It is made sure that the customer passes through minimum number of steps when they want
The most important thing that the customer is concerned about is his/her query about the product/service. The customer wants the problem to be fixed and resolved as soon as possible. And
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Decreased costs
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on a website the company can place the most frequently asked questions. The customer can look at those and can find their question and can get their query instantly resolved. The company that has an e-Commerce strategy has a low telecommunication cost and its cost for storing the information is also lower than the rest of its competitors.
Provide price quotes
On an ordinary convenient store it is hard to let the customers or the target audience know about the updated prices. They would only be able to know about the prices when they would visit the shop or when they would come across the companys advertisements. This little time lost while coming to know about the updated prices can easily cost the company a customer as he/she would buy the same product from a competitor at a low price. But by the use of the internet and by telling the customers of the company that the prices are listed on the website and that they are updated on a regular basis, they would come to realize that with a web site they could easily update themselves on the price and would also say their time and money. It is clear that in a printed catalogue you are stuck with the expense of printing a new version if you need to change prices.
Increased profits
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Other Benefits
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We should understand that profit is not the same as sales. A company can have higher sales but it can have lower profits and vice versa. By using an e-commerce strategy the company is able to expand the size of its market from regional to national or national to international level. This is the very reason why Franke has used this strategy. The internet opens up the world as said earlier. The company targets the individual businesses as well as regular customers. Hence it can use an eCommerce strategy to target these individual target markets separately but through a single website that is tailored according to them. This strategy allows for the company to target a specific market segments and therefore have a competitive advantages in satisfying their needs.
With an e-Commerce strategy the company is able to have a pull type processing. The customer is able to customize the product. Let us take the example of the company at hand. A customer that wants to remodel his washroom goes at the companys website and then looks at the various options that he has and then choses the best ones. Then he looks at the ones that would best suit his/her washroom. This choice of customization of various products with other stuff tells that the products
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are tailored according to the customers needs whenever they want them and how ever they want them. An e-Commerce strategy allows for an innovative business model. It allows for a high degree of specialization, it reduces the time exposure, the company has increased productivity and finally it improves the customer service.
By the use of an e-Commerce strategy, and by making use of all these benefits, the company is able to serve its customer better and thus giving it a competitive edge. With all of the benefits discussed above, the customer can easily meet his needs and the questions that are raised in his/her mind can be
service side, then it is the job of the product to do the rest. And it is evident from the long history of good quality products of the company; they always deliver what they promise.
does not go anywhere but come to them. The whole experience of the customer which include visiting the website, selecting the product, ordering the product, receiving the product, using and getting queries answered are all enhanced by the companys e-Commerce strategy.
Customer Relationship Management
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The employees of the company track the customers activity from the start of the buying process till
the end. They then analyse this and see what areas can be enhanced and what areas need improvement. So in a way the customer is looked at in an ethical way, without them even knowing it. There are two types of CRMs, operational and analytical. Operational CRM includes customer service support, and marketing automation. Whereas analytical CRM includes applications that analyse customer data generated by operational CRM application to provide information for improving business performance. This is exactly what the company does. Using applications that would track the customer behaviour on the website help the company in improving the performance
So in a way the customer does not need to improve their customer relations strategy. By using the current strategy they are able to cater to their individual and business customers needs. They are able to satisfy them by their applications and employees, making their strategy fool proof.
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The company has used an e-Commerce strategy that binds the customer to them. The customer then
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easily answered thus making the customer happy. And when the customer is happy on the customer
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Website evaluation
The customer website is tailored to the customers and the customer can easily navigate through the website easily. The overall design of the website is also in a way tailored to the customer. For example, the customer visits the website; he then chooses the type of product that he she wants. There are no hindrances on the way, there are no useless advertisements. And it is like ABC for the customer to meet their needs. Let us look at the simple aspect of the company website. When a customer wants to just have knowledge about the company and its products, he is bought to the following layout:
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)
(Source:http://www.franke.com/frankegroup/main/en/home/businesses/franke_kitchen_systems.html
The customer is able to look at the various products of the company and they at the same time can look at the continent and the country that the products are available. With this the customer also gets a brief description of the product category that he/she is looking at. Another very good aspect of the company website is that they provide their potential customers with full navigation option right on the homepage. This can be seen in the picture below:
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This is also a very good tool used by the company.
Looking at the company website, it looks structured and depicts the companys culture. The website uses a grid layout that effectively conveys the company products. It is advised not to place boxes everywhere on the website.
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Placement of Ads Colour scheme Ease of use
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customer.
Looking at the website there are no excess of boxes placed on the website. As this is not advised, it gives the company an advantage over its competitors. Placing boxes does not get attention of the
The focus should be on whats important For Franke, the company focuses more on the products that offer the most value to its customers.
As product is the main focus for Franke but still it does not create the website all about the products. It concentrates on what the company actually delivers.
The company uses a colour scheme that suits it. Franke has Orange colour in its website. It can be clearly seen that there has been no overuse of colours by the website.
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It is advised that the structure of the webpage should be structured
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Most of the customers would not even spend 5 minutes trying to figure out what the company website is about and what it has to offer. But the best way to ensure that the company is getting the right information out to its target market is to make the page easy to scan. Franke has made its website pages easy to scan.
Looking at the overall layout of the website, Franke has the simplest website. Franke as a brand itself depicts sophistication and professionalism, and these brand elements are evident in its website layout as well. Franke should keep in mind that the reader should feel easy and comfortable which can be
Navigation
The websites has a bar on the left of the webpage that tells them about the company and its products and services. The company uses a drop down menu that is reviled when the cursor moves across it. Secondly the website makes it sure that the readers or customers dont need to search to find something. Everything is in front of the reader and so that the search bar does not have to be used.
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Font Visual Appeal
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The font is consistent in the website.
Load times
Another important and ignored fact is load time. The website needs to be used at optimal speeds and allow the page to load in around 1-2 seconds. This could be done by making sure that .css files are compressed, using the Google hosted JavaScript files and ensure that the page is coded and designed with optimal speeds in mind. The company has taken this into consideration and has thought this through. For me the Franke website loaded faster than others, but this was a minor difference.
The consumer is always attracted by the visuals of the website. One of the first things that people see is the web design is the companys brand. This first impression is all that it takes to gain a good impression. The company has stressed on the company brand and image. It is clear from the brands themselves that the customer is able to get what he/she desire.
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done by pretending to be a 4 year old that would be viewing the website.
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Simplicity
Irrelevant Stuff Many websites use animated gifs, but these two havent. Franke has a big picture on the home page that suggests and portrays its company vision. It does not use irrelevant stuff when it comes to the home page considering its competitors. What the competitors do is all irrelevant. But overall Franke
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has an upper hand.
References
2010 Plimsoll Analysis - Toilet Cubicles & Washroom Systems . (2009). Retrieved May 4, 2010, from RESEARCH AND MARKETS:
_and.htm
(2010). Retrieved April 4, 2010, from FRANKE: http://www.sissons.co.uk/casestudies.asp
(2010). Retrieved May 4, 2010, from Franke: http://en.franke-ws.com/publicrelation_en.html Businesses. (2010). Retrieved May 4, 2010, from FRANKE:
http://www.franke.com/frankegroup/main/en/home/businesses/franke_kitchen_systems.html Organization. (2010). Retrieved May 4, 2010, from FRANKE:
http://www.franke.com/frankegroup/main/en/home/about_us/organisation.html Vision. (2010). Retrieved May 4, 2010, from FRANKE:
http://www.franke.com/content/frankegroup/main/en/home/about_us/vision.html
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http://www.researchandmarkets.com/reports/359782/2010_plimsoll_analysis_toilet_cubicles

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Company Standards .................................................................................................................................... 5

Franke Foodservice Systems ...................................................................................................................... 4

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Franke Coffee Systems

Franke Kitchen Systems

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Below are some of the companys facts and figures up to 2008.

2008 Net sales mio CHF (USD)

EBITDA mio CHF (USD)

Cash flow mio CHF (USD)

Equity in mio CHF (USD)

Investments in mio CHF (USD)

Employees per capita sales in CHF (USD)

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Product life cycles

Market trends (Competitors and Customers)

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A W Cubicles Ltd Bridgman Ibc Ltd

Aaztec Associates Ltd Bushboard Ltd

Bushboard Washroom Systems Ltd

Some of the companys direct as well as indirect UK competitors are as follows:

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Leisure Engineering Projects Ltd

Excelsior Panelling Systems Ltd.

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Provide price quotes

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Customer Relationship Management

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This is also a very good tool used by the company.

It is advised that the structure of the webpage should be structured

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done by pretending to be a 4 year old that would be viewing the website.

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has an upper hand.

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(2010). Retrieved April 4, 2010, from FRANKE: http://www.sissons.co.uk/casestudies.asp

http://www.franke.com/frankegroup/main/en/home/businesses/franke_kitchen_systems.html Organization. (2010). Retrieved May 4, 2010, from FRANKE:

http://www.franke.com/frankegroup/main/en/home/about_us/organisation.html Vision. (2010). Retrieved May 4, 2010, from FRANKE:

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