MICHELIN - A BETTER WAY FORWARD!
Michelin is a tyre manufacturer based in Clermont-Ferrand in the Auvergne région of France. It is one of the two largest tyre manufacturers in the world along with Bridgestone. In addition to the Michelin brand, it also owns the BFGoodrich, Kleber, Riken, Kormoran and Uniroyal (in North America) tyre brands. Most companies identify the new Michelin Energy tire, introduced in the early 1980s. It is also notable for its Red and Green travel guides, its roadmaps, the Michelin stars that the Red Guide awards to restaurants for their cooking, and for its company mascot Bibendum, colloquially known as the Michelin Man.
Among Michelin's numerous inventions, there is the removable tyre, the « pneurail » (a tyre for trains made to run on rails) and the radial tyre technology now used in modern "green tyres" that reduce fuel consumption.
http://www.michelin.com/corporate/EN/group/group-media-gallery#video=http://viphttp.yacast.net/empreinte/michelin/Introducing-the-Michelin-Group.mp4
Founded 1888
Headquarters Clermont-Ferrand, France
Key people Jean-Dominique Senard(General partner and CEO),
Eric Bourdais de Charbonnière(Chairman of the supervisory board)
Products Tyres, travel assistance services
Revenue €17.89 billion (2010)
Operating income €1.695 billion (2010)
Profit €1.048 billion (2010)
Total assets €19.66 billion (end 2010)
Total equity €8.127 billion (end 2010)
Employees 111,100 (end 2010)
Website michelin.com
Two brothers, Édouard and André Michelin, ran a rubber factory in Clermont-Ferrand, France. One day, a cyclist whose pneumatic tyre needed repair turned up at the factory. The tyre was glued to the rim, and it took over three hours to remove and repair the tyre, which then needed to be left overnight to dry. The next day, Édouard Michelin took the repaired bicycle into the factory yard to test. After only a few hundred metres, the tyre failed. Despite the setback, Édouard was enthusiastic about the pneumatic tyre, and he and his brother worked on creating their own version, one that did not need to be glued to the rim. Michelin was incorporated on 28 May 1888. In 1891, it took out its first patent for a removable pneumatic tyre which was used by Charles Terront to win the world's first long distance cycle race, the 1891 Paris–Brest–Paris.
Michelin has made a number of innovations to tyres, including in 1946 the radial tyre (then known as the "X" tyre). It was developed with the front-wheel-drive Citroën Traction Avant and Citroën 2CV in mind. Michelin had bought the then bankrupt Citroën in the 1930s. As of August 2008, this tyre is still available for the 2CV. In 1934, Michelin introduced a tyre, which if punctured, would run on a special foam lining, now known as a run-flat tyre (self-supporting type).
In the 1920s and 1930s, Michelin operated large rubber plantations in Vietnam. The Vietnamese workers were exploited pitilessly and brutally, which led to the famous labour movement Phu Rieng Do.
"French Indochina - The French community of about 40000 lived in the European quarters, - for the mass of the population the reality was forced labour - working to produce the colony's exports of rice, tin, tea, and above all - rubber - the source of the fortune of the Michelin company."
In 1988, Michelin acquired the tyre and rubber manufacturing divisions of the American B.F. Goodrich Company founded in 1870. This included the Norwood, North Carolina manufacturing plant which supplied tyres to the U.S. Space Shuttle Program. Two years later, it bought Uniroyal, Inc., founded in 1892 as the United States Rubber Company. Uniroyal Australia had already been bought by Bridgestone in 1980.
Michelin also controls 90% of Taurus Tire in Hungary, as well as Kormoran, a Polish brand.
As of 1 September 2008, Michelin is again the world's largest tyre manufacturer after spending two years as number two behind Bridgestone. Michelin produces tyres in France, Spain, Germany, the USA, the UK, Canada, Brazil, Thailand, Japan, Italy and several other countries. On 15 January 2010, Michelin announced the closing of its Ota, Japan plant, which employs 380 workers and makes the Michelin X-Ice tyre. Production of the X-Ice will be moved to Europe, North America, and elsewhere in Asia.
Michelin first competed in the 1977 Formula One season, when Renault started development of their turbocharged F1 car. Michelin introduced radial tyre technology to Formula One and won the Formula One Drivers' Championship with Brabham, before withdrawing in 1984.
The company returned to Formula One in 2001, supplying the Williams, Jaguar, Benetton (renamed Renault in 2002), Prost and Minardi teams. Toyota joined F1 in 2002 with Michelin tyres, and McLaren also signed up with the company. Michelin tyres were initially uncompetitive but by the 2005 season were totally dominant. This was partly because the new regulations stated that tyres must last the whole race distance (and qualifying), and partly because only one top team (Ferrari) was running Bridgestones, and so had to do much of the development work. Michelin in contrast had much more testing and race data provided by the larger number of teams running their tyres.
Following the debacle of the 2005 United States Grand Prix where, because of safety concerns, Michelin would not allow the teams it supplies to race, Michelin's share price fell by 2.5% (though it recovered later the same day). On 28 June, Michelin announced that it would offer compensation to all race fans who had bought tickets for the Grand Prix. The company committed to refunding the price of all tickets for the race. Additionally, it announced that it would provide 20,000 complimentary tickets for the 2006 race to spectators who had attended the 2005 event.
Michelin has had a difficult relationship with the sport's governing body (the FIA) since around 2003, and this escalated to apparent disdain between the two parties during the 2005 season. The most high profile disagreement was at the United States Grand Prix and the acrimony afterwards. Michelin criticised the FIA's intention to move to a single source (i.e. one brand) tyre from 2008, and threatened to withdraw from the sport. In a public rebuke FIA President Max Mosley wrote "There are simple arguments for a single tyre, and if [Michelin boss Édouard Michelin] is not aware of this, he shows an almost comical lack of knowledge of modern Formula One". Another bone of contention has been the reintroduction of tyre changes during pit-stops from 2006. Michelin criticised the move claiming "this event illustrates F1's problems of incoherent decision-making and lack of transparency."
In December 2005, and as a result of the difficult relationship with the sport's governing body, Michelin announced that it would not extend its involvement in Formula One beyond the 2006 season.Bridgestone was then the sole supplier of tyres to Formula One until the end of the 2010 season, with Pirelli providing tyres for 2011.
The last race won on Michelin tyres in Formula One was the 2006 Japanese Grand Prix, Fernando Alonso benefitting after the Ferrari engine of Michael Schumacher failed during the race. This gave Michelin a second consecutive Constructors' Championship win, with the 2005 and 2006, after Bridgestone's seven-year winning streak, and brought to a total of four the number of wins for Michelin since this event's inception back in the 1958 Formula One season; Michelin's other wins were in the 1979, and 1984 seasons.
Since 1889, Michelin has constantly innovated to facilitate the mobility of people and goods. today, it is setting the benchmark across every tire and travel-related services market, while leading a global strategy to drive sustainable, profitable growth.
To succeed in this new phase of assertive growth and meet its objectives, Michelin can capitalize on such solid competitive advantages as its technological leadership, superior products and services, demonstrated brand appeal, operational efficiency and robust balance sheet.
Objectives for 2015
Jean-Dominique SENARD
The Group is managed by Jean-Dominique Senard, Managing General Partner. He is assisted by the Executive Committee, comprised of eleven executives responsible for Product Lines, Corporate Services, Performance Divisions and growth regions.
François CORBIN
Eric de CROMIERES
Claire DORLAND CLAUZEL
Terry GETTYS
Jean-Christophe GUERIN
Jean-Michel GUILLON
Marc HENRY
Serge LAFON
Florent MENEGAUX
Laurent NOUAL
Bernard VASDEBONCOEUR
Among Michelin's numerous inventions, there is the removable tyre, the « pneurail » (a tyre for trains made to run on rails) and the radial tyre technology now used in modern "green tyres" that reduce fuel consumption.
http://www.michelin.com/corporate/EN/group/group-media-gallery#video=http://viphttp.yacast.net/empreinte/michelin/Introducing-the-Michelin-Group.mp4
SOME FACTS !
Industry Auto and Truck partsFounded 1888
Headquarters Clermont-Ferrand, France
Key people Jean-Dominique Senard(General partner and CEO),
Eric Bourdais de Charbonnière(Chairman of the supervisory board)
Products Tyres, travel assistance services
Revenue €17.89 billion (2010)
Operating income €1.695 billion (2010)
Profit €1.048 billion (2010)
Total assets €19.66 billion (end 2010)
Total equity €8.127 billion (end 2010)
Employees 111,100 (end 2010)
Website michelin.com
HISTORY
Two brothers, Édouard and André Michelin, ran a rubber factory in Clermont-Ferrand, France. One day, a cyclist whose pneumatic tyre needed repair turned up at the factory. The tyre was glued to the rim, and it took over three hours to remove and repair the tyre, which then needed to be left overnight to dry. The next day, Édouard Michelin took the repaired bicycle into the factory yard to test. After only a few hundred metres, the tyre failed. Despite the setback, Édouard was enthusiastic about the pneumatic tyre, and he and his brother worked on creating their own version, one that did not need to be glued to the rim. Michelin was incorporated on 28 May 1888. In 1891, it took out its first patent for a removable pneumatic tyre which was used by Charles Terront to win the world's first long distance cycle race, the 1891 Paris–Brest–Paris.
Michelin has made a number of innovations to tyres, including in 1946 the radial tyre (then known as the "X" tyre). It was developed with the front-wheel-drive Citroën Traction Avant and Citroën 2CV in mind. Michelin had bought the then bankrupt Citroën in the 1930s. As of August 2008, this tyre is still available for the 2CV. In 1934, Michelin introduced a tyre, which if punctured, would run on a special foam lining, now known as a run-flat tyre (self-supporting type).
In the 1920s and 1930s, Michelin operated large rubber plantations in Vietnam. The Vietnamese workers were exploited pitilessly and brutally, which led to the famous labour movement Phu Rieng Do.
"French Indochina - The French community of about 40000 lived in the European quarters, - for the mass of the population the reality was forced labour - working to produce the colony's exports of rice, tin, tea, and above all - rubber - the source of the fortune of the Michelin company."
In 1988, Michelin acquired the tyre and rubber manufacturing divisions of the American B.F. Goodrich Company founded in 1870. This included the Norwood, North Carolina manufacturing plant which supplied tyres to the U.S. Space Shuttle Program. Two years later, it bought Uniroyal, Inc., founded in 1892 as the United States Rubber Company. Uniroyal Australia had already been bought by Bridgestone in 1980.
Michelin also controls 90% of Taurus Tire in Hungary, as well as Kormoran, a Polish brand.
As of 1 September 2008, Michelin is again the world's largest tyre manufacturer after spending two years as number two behind Bridgestone. Michelin produces tyres in France, Spain, Germany, the USA, the UK, Canada, Brazil, Thailand, Japan, Italy and several other countries. On 15 January 2010, Michelin announced the closing of its Ota, Japan plant, which employs 380 workers and makes the Michelin X-Ice tyre. Production of the X-Ice will be moved to Europe, North America, and elsewhere in Asia.
MICHELIN IN MOTOR SPORTS
Michelin participated in MotoGP from 1972 to 2008. They introduced radial construction to MotoGP in 1984, and multi-compound tyres in 1994. They achieved 360 victories in 36 years, and from 1993 to 2006, the world championship had gone to a rider on Michelins. In 2007, Casey Stoner on Bridgestone tyres won the world championship in dominating fashion, and Valentino Rossi and other top riders complained that Michelins were inferior. Rossi wanted Bridgestones for the 2008 season, but Bridgestone was reluctant to provide them; Dorna threatened to impose a control tyre on the series, after which Bridgestone relented.
In 2008, Michelin's tyres continued to be perceived as being inferior to Bridgestone's, and Michelin committed errors of judgment in allocating adequate tyres for some of the race weekends. Dani Pedrosa's team switched to Bridgestones in the midst of the season, a highly unusual move that caused friction between Honda Racing Corporation and their sponsor Repsol YPF. Other riders also expressed concerns and it seemed that Michelin might not have any factory riders for the 2009 season, leading to rumours that Michelin would withdraw from the series altogether. Dorna and the FIM announced that a control tyre would be imposed on MotoGP for the 2009 season and Michelin did not enter a bid, effectively ending its participation in the series at the end of 2008.
MICHELIN IN FORMULA ONE
Michelin first competed in the 1977 Formula One season, when Renault started development of their turbocharged F1 car. Michelin introduced radial tyre technology to Formula One and won the Formula One Drivers' Championship with Brabham, before withdrawing in 1984.
The company returned to Formula One in 2001, supplying the Williams, Jaguar, Benetton (renamed Renault in 2002), Prost and Minardi teams. Toyota joined F1 in 2002 with Michelin tyres, and McLaren also signed up with the company. Michelin tyres were initially uncompetitive but by the 2005 season were totally dominant. This was partly because the new regulations stated that tyres must last the whole race distance (and qualifying), and partly because only one top team (Ferrari) was running Bridgestones, and so had to do much of the development work. Michelin in contrast had much more testing and race data provided by the larger number of teams running their tyres.
Following the debacle of the 2005 United States Grand Prix where, because of safety concerns, Michelin would not allow the teams it supplies to race, Michelin's share price fell by 2.5% (though it recovered later the same day). On 28 June, Michelin announced that it would offer compensation to all race fans who had bought tickets for the Grand Prix. The company committed to refunding the price of all tickets for the race. Additionally, it announced that it would provide 20,000 complimentary tickets for the 2006 race to spectators who had attended the 2005 event.
Michelin has had a difficult relationship with the sport's governing body (the FIA) since around 2003, and this escalated to apparent disdain between the two parties during the 2005 season. The most high profile disagreement was at the United States Grand Prix and the acrimony afterwards. Michelin criticised the FIA's intention to move to a single source (i.e. one brand) tyre from 2008, and threatened to withdraw from the sport. In a public rebuke FIA President Max Mosley wrote "There are simple arguments for a single tyre, and if [Michelin boss Édouard Michelin] is not aware of this, he shows an almost comical lack of knowledge of modern Formula One". Another bone of contention has been the reintroduction of tyre changes during pit-stops from 2006. Michelin criticised the move claiming "this event illustrates F1's problems of incoherent decision-making and lack of transparency."
In December 2005, and as a result of the difficult relationship with the sport's governing body, Michelin announced that it would not extend its involvement in Formula One beyond the 2006 season.Bridgestone was then the sole supplier of tyres to Formula One until the end of the 2010 season, with Pirelli providing tyres for 2011.
The last race won on Michelin tyres in Formula One was the 2006 Japanese Grand Prix, Fernando Alonso benefitting after the Ferrari engine of Michael Schumacher failed during the race. This gave Michelin a second consecutive Constructors' Championship win, with the 2005 and 2006, after Bridgestone's seven-year winning streak, and brought to a total of four the number of wins for Michelin since this event's inception back in the 1958 Formula One season; Michelin's other wins were in the 1979, and 1984 seasons.
GEOGRAPHICAL SPREAD
VISION AND MISSION
Michelin is dedicated to helping to enhance mobility and create value while demonstrating respect for customers, people, shareholders, the environment and facts.Since 1889, Michelin has constantly innovated to facilitate the mobility of people and goods. today, it is setting the benchmark across every tire and travel-related services market, while leading a global strategy to drive sustainable, profitable growth.
To succeed in this new phase of assertive growth and meet its objectives, Michelin can capitalize on such solid competitive advantages as its technological leadership, superior products and services, demonstrated brand appeal, operational efficiency and robust balance sheet.
GROWTH STRATEGY
Built on a foundation of growth, competitiveness and commitment, Michelin’s strategic vision is designed to deliver strong, diversified growth by capturing the full value of its products and services in mature markets and expanding more quickly in new markets. As we continue to make our organization more competitive and cost-effective, the mutual commitment of the Company and its employees will enable us to successfully move forward together.Objectives for 2015
- Growth in sales volumes of at least 25% over the 2011- 2015 period.
- Operating income of around €2.5 billion in 2015.
- A more than 9% return on capital employed each year.
- Annual capital expenditure of around €2 billion.
- Positive free cash flow over the 2011-2015 period.
- A dividend payout rate of around 30% of consolidated net income, before exceptional items.
PRODUCTS
MANAGEMENT TEAM
Jean-Dominique SENARD
The Group is managed by Jean-Dominique Senard, Managing General Partner. He is assisted by the Executive Committee, comprised of eleven executives responsible for Product Lines, Corporate Services, Performance Divisions and growth regions.
François CORBIN
Director of Geographic Zones.
Eric de CROMIERES
Director of Commercial Performance.
Supervises the distribution networks (Euromaster and TCi), Michelin Global Solutions (MGS) and the Supply Chain and Logistics Performance Department.
Supervises the distribution networks (Euromaster and TCi), Michelin Global Solutions (MGS) and the Supply Chain and Logistics Performance Department.
Claire DORLAND CLAUZEL
Director of Communication and Brands.
Supervises the Public Affairs Group Departement, Michelin Travel Partner and Michelin Lifestyle Limited.
Supervises the Public Affairs Group Departement, Michelin Travel Partner and Michelin Lifestyle Limited.
Terry GETTYS
Director of Research and Development.
Jean-Christophe GUERIN
Director of the Materials Product Line.
Supervises the Purchasing Group Department.
Supervises the Purchasing Group Department.
Jean-Michel GUILLON
Director of Personnel.
Supervises the Quality Group Department and the Security Group Department.
Supervises the Quality Group Department and the Security Group Department.
Marc HENRY
Chief Financial Officer.
Serge LAFON
Director of the Truck Product Line.
Florent MENEGAUX
Director of the Passenger Car and Light Truck Product Line.
Supervises the Competition and operations led by Jean-Christophe GUERIN.
Supervises the Competition and operations led by Jean-Christophe GUERIN.
Laurent NOUAL
Director of Corporate Development.
Supervises the Information Systems Group Department and the Standards and Regulations Group Department.
Supervises the Information Systems Group Department and the Standards and Regulations Group Department.
Bernard VASDEBONCOEUR
CUSTOMERS AND VENDORS
Segment
|
Automobile industry, Specialty equipments
|
Target Group
|
2-wheeler, passenger, luxury, SUVs. LT, HT, trucks. Bus and specialty equipment manufacturing companies
|
Positioning
|
Safety, reliability, strength, durability, technologically superior and innovation
|
CHAMPIONSHIP WINS
MICHELIN made its first racing appearance when Charles Terront won in 1891 the longest non-stop bicycle race ever to be held: Paris-Brest and back (1,200 km). After 71 h and 18 mn of racing and 9 hours ahead of his closest contender, Terront had provided an excellent demonstration of the superiority of the MICHELIN detachable tire.
Racing is the best laboratory for testing technological innovations in extreme situations. It is a powerful driver of progress. MICHELIN tires continuously undergo the toughest of all reality checks: championship racing.
Racing is the best laboratory for testing technological innovations in extreme situations. It is a powerful driver of progress. MICHELIN tires continuously undergo the toughest of all reality checks: championship racing.
SWOT ANALYSIS- MY UNDERSTANDING !
Strength
1. One of the
largest manufacturers of tyres with manufacturing facility in 18 countries
and being sold in over 170 countries across the world.
Weakness
1. Stiff competition
from existing tyre brands
Opportunity
1. Emerging
economies as huge potential markets
Threats
1. Volatility in raw
material prices.
SWOT ANALYSIS- MY UNDERSTANDING !
|
|
Strength
|
1. One of the
largest manufacturers of tyres with manufacturing facility in 18 countries
and being sold in over 170 countries across the world.
2. Excellent brand
equity with high market share
3. They have global
presence with over 110,000 employees
4. Strong and competent R&D with spirit
of innovation
5. They have strong financial position.
6. They have diversified portfolio with
products in almost all the segments.
7. They offer ‘Maps and Guides’ and have an
excellent service ‘Via Michelin’ that helps in planning a trip along with
their 24/7 online shopping.
|
Weakness
|
1. Stiff competition
from existing tyre brands
2. Not entered the
emerging economies in a big way
3. Over leveraged financial position
|
Opportunity
|
1. Emerging
economies as huge potential markets
2. Building
awareness about their other services
3. Scope for improvement in logistics and
distribution system
|
Threats
|
1. Volatility in raw
material prices.
2. Increasing prices
of Crude Oil.
3. Stiff competition both from national and
international companies.
4. Government Policies w.r.t export duties,
import duties, tax levied on automobile industries and economic condition of
nation as it determines the sale of automobiles.
5. Introduction of other transport
facilities like metro, monorails and local trains keeping pollution hazards
caused by combustion of automobile fuels.
6. Fluctuations in
exchange rates
7. Cheaper Imports from China
|
NATIONAL GEOGRAPHIC MEGA FACTORIES !
SIGNING OFF WITH AWESOME ADVERTISEMENT BY MICHELIN !
REFERENCES
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