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My aim is to examine how Spirax Sarco as a company, becomes successful with just experience in steam engineering alone. As we know, with only just one type of engineering speciality alone, it is tough to be successful as compared to companies that have multiple engineering specialties.
The company continued its international expansion, adding subsidiaries in the Netherlands, Austria, and Singapore. In 1972, Spirax-Sarco added an Australian component, soon followed by operations in New Zealand as well. Spirax-Sarco then entered the Japanese market in 1973. Later, Spirax-Sarco's presence in Asia expanded to include China, Taiwan, Malaysia, Thailand, Korea, and other markets.
Office provides sales and technical services to customers for the entire of Philippines. While the main sales office is located in Makati which is equipped with warehousing facilities. To better serve the customers, there are also satellite offices located in Bacolod, Cebu, Davao and Iligan
Spirax Sarco Indo-China
At present, sales office in Vietnam take care of customers from the Indo-China countries, namely Vietnam, Cambodia, Laos and Myanmar
The main office for Spirax Sarco Vietnam is in Ho Chi Minh with a satellite office in Hanoi.
A Vietnam agent - Delta Hardware & Industry Ltd - handles the sales operations while Spirax Sarco provides the sales and technical support to both the agent and the valued customers.
Conclusion about from the subsidiaries/branches
I've learnt that the objective from these various subsidiaries is still to provide services & products relating to steam engineering, there is also a shortcoming due to the lack of control over these subsidiaries all over the world.
Major achievements throughout the years
The company has 4,500 people employed around the world including 1,750 specialist sales, support and technical engineers.
It has 7 strategic manufacturing plants committed to customer service, 46 companies in 33 countries providing solutions for customers in steam and fluid handling.
There are 35 training centres dedicated to spread knowledge to the customers and over 1million students have completed their distance learning courses.
100,000 customers buying regularly.
The company has increase a total of 86% in revenue and operating profit of 107% from year 2000 to year 2009.
As a heat source, steam is the natural choice in most industrial processes due to its high heat carrying capacity, controllability, sterility & efficiency as a heat transfer fluid.
Steam itself is also an environmentally friendly medium, being non-toxic and non flammable. Although system leaks are avoidable, when they do occur, they pollute the environment less than, for example, oil, gas and refrigerants. Steam is still the prime medium used for power generation and for product processing across a significant range of industries.
The benefits of using steam systems, include improved overall boiler efficiency, improved energy efficiency of plant processes, reduced consumption of water and water treatment chemicals and lower production of effluent and emissions, all of which have a significant and positive impact on the environment.
It also focus on the energy saving aspect of those products which, if not installed, would result in a significant increase in energy consumption and hence CO2 production.
Spirax Sarco provides a broad range of fluid control products, engineered packages, site services and systems expertise for its diverse range of over 100,000 industrial and institutional customers worldwide. The company helps its customers to optimise production capacity, reduce energy costs and emissions, improve product quality and enhance the safety of their operations.
Weakness & measures taken against these weaknesses
The weaknesses are in the form of principal risks & uncertainties which are strategic, commercial, operational and financial in nature.
Strategic risks & uncertainties include customer relationships, the competitive environment, political and economic disturbances, technological changes, the regulatory and legal environment, and investment in acquisitions.
Measure taken: The business is spread across the world so that the company do not rely on any one customer, product application or industrial sector.
Commercial risks & uncertainties include issues such as product design & performance, product liability, competitor activity, relations with customers and suppliers, pricing and profit margins.
Measure taken: Invested significant resources in the training & development of people so that able employees can properly manage & mitigate risks & uncertainties.
Operational risks and uncertainties include health, safety and environmental issues, employee relations mitigation of, and recovery from, major disasters & product quality and customer service.
Measure taken: By implementing appropriate measures in manufacturing companies, improvements in health & safety in the operations in the year. General managers of operating companies are responsible for local compliance with the Group's policy and with local legislation, and are required to report regularly
Financial risks and uncertainties include exchange rates exposures, interest rate movements, financial instruments, financial irregularities and protection of assets including pension fund assets.
Measure taken: There is a comprehensive treasury policy covering many of these issues & defining approaches to minimise and mitigate such risks.
A single or combination of these weaknesses may harm the company's objective as stated above.
The company has came up with some innovations or assistance which may help boost the company's reputation or sales. Below are some examples.
Spirax Sarco has developed the followings:
2 electronic process controllers putting you back in control of your process plant.
SX80 - A user-friendly process controller for simple temperature and pressure control applications.
SX90 - An easy-to-use, feature-loaded and extremely flexible controller
providing solutions for a vast range of demanding plant control applications.
EasiHeat - The EasiHeat system has a compact, skid-mounted assembly, complete with all the necessary ancillary equipment. At its heart is a plate heat exchanger, which is more responsive and easier to control than bulkier shell-and-tube versions. Tt can use plant steam to provide a reliable supply of on-demand hot water at a precise temperature.
Packaged plant systems - are skid-mounted, factory-built modules designed and fabricated for a specific application. The systems include all the components needed to meet the required demand, such as heat exchanger, steam conditioning equipment, controls and condensate recovery. Systems are delivered to site pre-assembled and factory tested, for quick hook up to the site's services.
SPIRA-TROL - control valve in 6- and 8-inch sizes and with more control options, reliability and ease of maintenance
Steam powered car - Spirax Sarco has provided specialist support and equipment to a team of British engineers that has successfully broken two land-speed records for a steam powered car. During the car development, the team consulted Spirax Sarco who advised that the first boiler design had insufficient output due to a lack of heat transfer area.
Mobile Steam Sampling Cart - is engineered and fabricated to improve safety, efficiency, and operability in the collection of pure clean steam samples for testing within the pharmaceutical and biotechnical industries. The unit is specifically designed for taking critical quality samples for total organic carbon (TOC), conductivity, microbial levels, and endotoxin monitoring.
Computational Fluid Dynamics - has the capability to tackle a wide range of engineering challenges using CFD analysis, from heat transfer problems to understanding dynamic flow systems. As a result of the success of the CFD project, a second KTP has started with the University of Southampton.
Spirax Sarco has been the most innovative vendor of plant engineered systems in recent years, with its Flash Recovery Energy Management Equipment (FREME) winning the IChemE's Innovation and Excellence Award in Energy in late 2009, its proven ability to achieve energy savings of up to 26 percent in industries as diverse as brewing & distilling, food & beverage, healthcare and oil & petrochemicals, among others.
These threats are exterior and are in the form of rival companies.
Some examples are ZF Friedrichshafen AG; KSB Bombas Hidraulicas S.A.; Parker Hannifin Corp.; Rinar Joint Stock Co.; Dalenergomash Joint Stock Co.; Wuzhong Instrument Company Ltd.; Burkert GmbH und Co. Fluid Control Systems KG; Tomkins PLC; Flowserve Corp.
I think Spirax Sarco has done a good job in expanding its businesses & industries worldwide with just focusing on a single speciality and at the same time be successful at generating large amounts of revenue. It shows that with a great amount of knowledge & experience of what you're doing, can help oneself be successful in whatever he/she do.
I think Spirax Sarco should stop focusing on expanding its company worldwide, but instead focus on training their workers in the various branches across the world, as from the services provided in each country may not be up to the same standard as the main branch in America.
Interview with a secretary working for the local branch