Avnet 2002 Annual Report Download - page 7

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IT capability is an important competitive advantage for our Company, just as research and
development are for a products-based company, fostering growth while maximizing profitability.
By integrating acquisitions such as Kent Electronics Corporation, which closed just before FY’02
began, Avnet gained specialist product divisions and removed redundant infrastructure, resulting
in permanent cost reductions that allowed us to leverage savings in the face of falling revenues.
UNPRECEDENTED OPPORTUNITY
Through the 1980s, Avnet focused heavily on organic growth, adding new customers and
suppliers, growing revenues and capturing market share. During the ‘90s, the Company focused
more on mergers and acquisitions, growing earnings and leveraging the economies of scale we
had built.Today, we possess a new code.With a fervent commitment to value-based management,
we have aligned our culture, goals, structure and compensation to accomplish a single overarching
goal: consistently increase shareholder value.
Avnet’s primary financial objective is, quite simply, to create shareholder value. Improving return
on capital employed (ROCE), accelerating earnings growth and improving earnings growth stability
will lead us to this overarching goal.
Our commitment to shareholder value creation does not stop with the executive team.
At Avnet, we are forging a culture driven by value. Each operating group president is measured
on ROCE and earnings growth. Every executive leading a specialized business unit is measured
and paid on return on working capital and earnings growth.The compensation of all employees
with variable pay plans is aligned with the fundamental goal of delivering shareholder value.
Creating Value for the Technology Supply Chain
Members of the Avnet Executive
Board average
more than 20 years of
industry experience. There
is no more knowledgeable team
in the business.
management strength
5