Linimar Ice Week

|

Linamar Corporation: Looking Ahead to 2020 |

ICE Team #16 |

|

Nick Ewanick, Maxine Luo, Yonas Mebrahtu, Greg Nosal, Alysia Wilfred |

Internal Board L |

|

Contents

Introduction 2

Analysis 2

Decision Criteria/Alternatives 5

Recommendation 5

Implementation 6

Introduction

Linamar is a highly established Canadian auto part and industrial equipment manufacturer that maintains a very diverse product and service offering. By correctly interpreting market trends and successfully managing a very broad business portfolio, Linamar has enjoyed steady rates of growth over the last few years. With sales of 2.2 billion dollars during the 2010 fiscal year, Linamar has set out on a number of strategies to expand on their recent successes. To maintain this opportunity of continual growth, Linamar is focused on a stepping stool strategy that emphasizes an increased global presence, greener product solutions and further diversifying their product offerings. By 2020 Linamar would like to be in a position where they have become a larger but more lean and efficient organization, ultimately generating revenue of 10 billion dollars, and a net income of 1 billion dollars.

Analysis

Linamar exists in a unique industry where there are few large direct competitors but many indirect ones. Magna International, and Martinrea are the two closest competitors in terms of focus, product offerings, and the level of product breadth. They all manufacture precision components for consumer and commercial type vehicles and distribute their products and offer services on a global B2B network. Although Magna is a much larger organization and Martinrea is a slightly smaller company than Linamar (in terms of 2010 sales), Linamar is the leanest and most efficient with the highest profit margins (see appendix 1 – competition chart).

Over the years Linamar has gone to different lengths to further diversify the existing business portfolio. Linamar has begun partnering with...