Kohler Co.

Presented By :
Tousif Ahmed
150052
Content

 History
 Board of Governors
 Hierarchy
 About Kohler India Corpn. Pvt. Ltd.
 SWOT Analysis
 Summary
 PESTEL Analysis
 Thank you note
History
 Kohler Co., founded in 1873 by John Michael Kohler, is an
American manufacturing company 
 Kohler is best known for its plumbing products, but the company also
manufactures furniture, cabinetry, tile, engines, and generators.
 Early products included cast iron and steel farm implements, castings for
furniture factories, and ornamental iron pieces including cemetery crosses and
settees.
 In 2018 Kohler became a sponsor of English soccer club Manchester United. 
Board of Governors
 Former Wisconsin Governor Walter J. Kohler Sr. was president of Kohler Co.
  His son former Wisconsin Governor Walter J. Kohler Jr. served for many years in
senior management.
 The presidency of Kohler was passed down from Herbert Kohler Jr. to his
son, David Kohler, on June 1, 2015.
 With 31 years of experience with the company, David Kohler became President
and Chief Executive Officer of Kohler Co. in June 2015, after serving as President
and Chief Operating Officer since 2009. He is the fourth generation of the Kohler
family to lead the company since its inception in 1873.
 In 1998, Kohler made a plan to buy back any outstanding shares not owned by the
family. All family members had to exchange their common shares for shares with
limited rights that could not be sold.
Hierarchy

 Executive Chairman
 President and Chief Executive Officer
 Senior Vice President (Finance)
 Senior Vice President (Human Resources)
 Vice President
 Group President
 Chief Information Officer
About Kohler India Corp. Pvt. Ltd.
 Kohler India Corp. Pvt. Ltd. is a private limited company incorporated on 20
September 1999 .
 The main product/service of the company, which is the product/service from
which it earns maximum revenue is Sanitary wares of iron & steel.
 Kitchen & Bath Division and Others are the major revenue segments disclosed
by the company as per its annual financial statements for the year 2020-21.
 Kohler India Corpn. is a medium-sized company with revenues of Rs.8,241.8
million as per the latest annual report of the company for the year ended 31
March 2021.
SWOT Analysis
Strengths
 Kohler Co. is known around the world for producing a high quality product.
 When a consumer wants to purchase a beautiful product that will also last a long time,
Kohler is the right choice.
 Kohler’s prices stay competitive for the quality and craftsmanship of their final product.
 There are lower priced products available, but not with the high quality of a Kohler
product. This is a definite strength of Kohler – brand recognition and unsurpassed
quality.
 Another strength for Kohler is associate loyalty. While this is hard to scientifically
measure, the employee turnover rate is extremely low for a company of this size. Many
employees start working at Kohler and then continue until they retire. That is a rare
occurrence in business during the last few decades.
Weaknesses
 Kohler Co. is based on history, tradition, and a strong work ethic. All of these
traits sound good, right? Well, they are, except in a fast moving marketplace
 Manufacturing is not thought of as a fast moving marketplace, but there are other
competitors that race to get a new design on the market.
 This is where Kohler needs some work in order to increase the time it takes from
initial concept through engineers, sales, marketing, manufacturing, and to the
Kohler customers. The approval process should be shortened between each stage
in order to help make this happen.
 Another weakness is that Kohler has chosen to only sell directly to retailers,
government, hospitals, and wholesalers (plumbers, distribution centers,
designers, etc). This limits the consumer to purchase product through a
middleman.
Opportunities

 While Kohler is thought of as a kitchen and bath company, they have many
other products and services that they offer.
 Most of the revenue is generated through the plumbing organization. But
Kohler is also doing well in their hospitality division.
 Another opportunity for the company would be to sell product to all
consumers interested in purchasing Kohler product.
 Currently, Kohler does not sell directly to homeowners. A homeowner wishing
to purchase Kohler product must do so through a retail store, a builder, a
designer, a plumber, etc.
Threats

 The threats to Kohler can be defined by using Porter’s five forces: bargaining
power of suppliers, bargaining power of customers, threat of new entrants,
threat of substitutes, and competitive rivalry among existing companies
 The model of the five competitive forces was developed by Michael E. Porter
in his book ‘Competitive Strategy: Techniques for Analyzing Industries and
Competitors’ in 1980
Bargaining Power of Suppliers

 It is possible that companies that supply raw material and semi-materials to

Kohler could re-negotiate their existing contracts with Kohler.
 In this tight economy, it’s also possible that existing suppliers could go out of
business and new contracts would need to be created between Kohler and
other suppliers.
 While relationships and finances seem okay between Kohler and their existing
suppliers, new contracts that would increase the payment to suppliers or
decrease the amount of materials supplied to Kohler could really threaten
Kohler’s profits.
Bargaining Power of Customers

 Since Kohler usually sells to larger customers that do not buy just a few
products at once, the larger orders that these customers purchase could be
stopped or threatened based on the bargaining power of the customer.
 For example, if Home Depot decided that they should pay 50% off list price
since that’s what they’re paying American Standard, Kohler would disagree.
 But what if Home Depot then said, it’s 50% off list or we won’t be purchasing
Kohler product anymore? This bargaining power would threaten the
relationship and the revenue that Kohler receives from Home Depot.
 Some type of compromise would need to be met and hopefully not all of the
larger customers would start bargaining in this way or it could mean a lot of
problems with Kohler’s revenue
Threat of New Entrants

 With Kohler being a 129-year-old company, new entrants do not usually scare
Kohler Co.
 The brand of Kohler is trusted as high quality and reliable products, so it
would take quite a new entrant to steal away customers from Kohler.
 But, it’s always possible.
Threat of Substitutes

 Since Kohler is slow to deliver new product from design to manufacturing, a

company that introduces substitutes could threaten Kohler’s earnings.
 Kohler realizes this and has been beaten on occasion for a product design to
reach market before they do.
 Therefore Kohler is working hard to improve the process and cut down the
amount of days/months between initial concept and reaching the market.
Competitive Rivalry

 Kohler’s closest competitors are Moen, American Standard, and Masco.

 If any of these companies focused more on quality and began creating a
product as good as Kohler’s products, then the company would need to sit up
and take notice more than they do today.
 These companies are already known in the marketplace, so they’d have to
improve their quality in their manufacturing and then make this known in their
marketing.
 If that were the case, then Kohler could be threatened with a loss of revenue.
Summary of SWOT Analysis

 After reviewing the analysis for Kohler Co. to identify the strengths,
weaknesses, opportunities, and threats (using Porter’s five forces), Kohler’s
core competencies are revealed.
 What makes Kohler stand out from its competitors is Kohler’s focus on high
quality, great design, history and tradition, and commitment to gracious living
for their customers.
 These competencies are revealed when analyzing Kohler’s strengths and why
customers purchase Kohler product or use Kohler’s services.
PESTEL Analysis
Political Factors
 These are the Kohler Co forces that tends to be altered by the influence of
government on the infrastructure of country.
 The political factors may involves environment regulations, employment laws,
tariffs, tax policy, trade restrictions, political stability and reforms. 
 It is noteworthy, that the charities needs to be included where a government
are not willing services and goods to be provided.
Economic Factors

 The Kohler Co economic factors or forces involves interest rates, inflation,

and growth of economy, cost of living, working hours, wage rate and
exchange rates. 
 Combining these factors, it last greater and inevitable impact on organization.
Social Factors

 The culture or social influence on certain businesses vary from country to

country. 
  It is significant to consider these factors. The social factors includes safety
and health consciousness, various demographics, population growth rates and
cultural aspects.
Technological Factors

 Notably, Kohler Co technology is one of the most important way of being

competitive in the highly competitive market arena. 
 Not only this, it drives globalization, the factors includes environmental and
ecological aspects, and available services as well as products. 
 An organization should innovate and be compatible with the technologies.
Legal Factors

 The Kohler Co legal factors involves the certain laws and regulations which
might effect on the business operations of an organization
 It also includes impending and current legislation that tends to impact on the
industry in areas including competition, employment, safety and health. 
 An organization should consider the influence of the national and international
laws where the organization would originate the business operations.
Environmental Factors

 The environmental factors include all those factor lasting impact or influence,
the surrounding environment most likely determine environmental factors.
 The factors involves awareness of the seasonal or climate change or terrain
variation.
 The analysis of the environment including internal and external elements is
vital for organization since it impacts on the performance of an organization.
Limitations of Kohler Co PESTLE
 The external factors are dynamic and can be change at a rapid pace. Overtime, the
changes might be occur in less than one day, therefore the companies should
make it tricky in order to predict how and why these forces might influence the
future or present of the certain project.
 There are many occasions, in which the environmental changes have an adverse
influence on the project that might not be noted in the initial stages of project,
indicating that the uncertainty sis still there even after the pestle analysis have
carried out. This in turn might defeating the prime reason of the pestle analysis.
 The usual or common procedure for pestle analysis is presenting a simple list of
the environmental factors affecting the project. Until& unless, the organization
critically examine the attributing factors, the analysis’s findings does not seem to
be of greater value or consideration.
 The analysis is supposed to be insufficient for the strategic planning objective,
since it likely scans the external environmental, whereas avoiding the competitive
scenarios and internal environment.
Total Income of Kohler last 5 years

March 2021 Kohler Co total income is declining about 10 crores.

Thank you……