DE LONGHI



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De Longhi

Overview

De Longhi is an Italian company that distributes and manufactures electronic appliances and goods meant for household. The company operates in America, Middle East, Europe and Asia. The company operates in the appliance market with the products like treatment, food preparation, treatment, heating and cooking. The ironing and domestic cleaning are disbursed through retail channel under the brand name of De Longhi, Ariete and Kenwood trademarks. The company segment also includes air-conditioning, dehumidifiers, air purifier and air conditioner which are portables.

The household segment of De Longhi includes food and cooking appliances consist of products like coffee grinders, blenders, coffee maker, electric grill, electric deep fryers, contact grill and ice cream makers' pasta cooker and microwave ovens (America 1990). The total employees of the company are 5603 from the entire world. In fiscal year of 2011; the company recorded a revenue of Euro 1807.8 million and, there was an increase of 11.2% in the revenue as compare to the year 2010. The operating profit of the company was Euro 182.8 million for the same period of 2011. This was an increase of 23.8% as compared to the year 2010. The net profit of the company was Euro 90.2 million, which was an increase of 20.5% as compared to the year 2010.

Goal Setting and Achievements

In the last few years, there has been a serious change in the global economy, with the post recession era taking place. Europe faces the other debt crises and recession issue. Thus, the global scenario is affecting every nation, market and industries of the world. Although, De Longhi is not immune to these troubles some time, the affects of it are also faced by the company. Yet, the company has been able to overcome the hard times of the world by the quality efforts put in by the group company (Wilson 1994 pp 68). The company has been able to reduce its debt from a record high to a record low and has been able to complete the manufacturing units in the China and Russia.

The company has a vision of attaining the global leadership in the coffee, comfort and selected homecare and kitchen category. Thus, in alignment with its vision the company has been able to achieve the global leadership in the air conditioning and portable heating. It also has been able to achieve leadership in food preparation, this it has done with the help of Kenwood brand. In the espresso coffee machine the leadership was achieved through the De Longhi brand. The company has been able to maintain its number one position in the Europe in the professional division which is related to the production of thermo cooling machines which was marketed under the Climaveneta brand.

In the long run, the company plans to go for sustainable growth. It also plans new ways for increased margins by introducing new ways of cost cutting, product differentiation and control on working capital. The company plans to bring in more stylish products, ...