Electrolux 2010 Annual Report Download - page 57

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annual report 2010 | part 1 | strategy | action plan
ACTIVITIES
Electrolux can increase the pace of future growth through innovative products, a strong brand in the
premium segment and the utilization of global economies of scale. The aim is to grow faster than the
market, at least 4% per year, and to achieve this while maintaining profitability. What is required to
realize this target?
Action plan
– to generate added value
• Utilize global initiatives to reduce costs and increase the speed and precision
of product development
• Complete the restructuring program
• Continue to expand in growth markets, organically and through acquisitions
• Further increase presence in the premium segment
• Accelerate growth in profitable product categories
• Grow through acquisitions in closely-related segments
• Continue with initiatives to turnaround weak markets and product segments
Growth %
Improved growth
Operating margin, %
Improved profitability
8
7
6
5
4
3
2
1
0 1 2 3 4
Enterprise value
Electrolux has undergone an important and extensive transforma-
tion of operations, which has led to increased profitability and
improved capital turnover. The operating margin has improved
to 6.1%. Obtaining a sustainable profitability level has been
prioritized before growth. Now, Electrolux will increase focus
on profitable growth.
Operating
margin to be
improved first
Growth then
becomes
a priority
53