Assignment Marketing 1 Adv-diplma-Ansell
Assignment Marketing 1 Adv-diplma-Ansell
Introduction:
Ansell designs, develops and manufactures a wide range of hand and arm
protection solutions, clothing and condoms. Ansell is a global leader in protection
solutions. Industrial workers, healthcare professionals and patients, and consumers
around the world invariably associate Ansell with premium quality, optimal protection
and superior comfort. Ansell's vision is to create a world where people and products
enjoy optimal protection against the risks to which they are exposed. People, be it at
work or during their leisure time, require the right protection solution for the right
application
After all, what better guarantee is there for increased safety, security and
productivity than through adequate protection? During the manufacturing process,
products need to be handled guaranteeing their optimal protection, so they meet or
exceed the quality requirements described in manufacturing processes.To complete
the vision , we have to approach on three major things:
Technological leadership
Ongoing dialogue
Strong global presence
Areas of expertise around which Ansell is organized are four Global Business Units.
Each GBU serves unique and different markets, but what connects all four is: the focss
on protection, comfort and quality, combined with a never-ending quest for
innovation.
Mission Statement:
Our commitment for protection
Vision of Ansell:
Ansell has been expanding and strengthening its position since its foundation, over
100 years ago, of
become a global player in the four main business segments where protection is
provided:
Industrial Solutions: Ansells Industrial Global Business Unit manufactures,
markets high-performance, multi-use protection solutions specific for hand, foot,
and body protection has been wide-range of Industrial applications. Ansell
protects workers and products around the world in almost every industry
including Automotive, Chemical, Metal Fabrication, Machinery & Equipment,
Food, Services and Agriculture, Construction, Mining, Do-it-Yourself,
Janitorial/Sanitation, Military, First Responders, and Household Goods.
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Code of conduct :
The wellbeing of the Ansell employees is vital to growing its business for the
benefit of customers, shareholders and the wider community. The company is
committed to provide a healthy, safe and engaging work environment. Ansell strives
to maintain a health and safety management system conforming to government
standards and industry best practices - integrated with the profitable operation of the
company.
The company's employment policies commit to:
Promoting a safe working environment with healthly and safety management in
all its businesses.
Creating an equal opportunity and committed to developing a diverse
workforce.
Promoting an environment where everyone get encourage to raise their full
potential through learning and development opportunities.
Organizational Chart:
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Chairman
Managing
Director
Marketing
and Sales
Department
Financial
Department
Cheif
Executive
Officer
Human
Resource
Managemen
t
Facility
Manangeme
nt
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Strength: Ansell is the leading multinational company with more than 11000
employees and millions of consumers. Beside this it specializes in four main
categories such as Medical solutions, industrial solutions speciality markets and
sexual wellness.
Weakness: Ansell as a multinational company from China, is experiencing huge
problem with diplomatic relation with other countries. The marketing strategies of the
company are outdated and bear a lack of expertise.
Opportunities: Ansell has a big chance of being a world leader in latex
manufactures. The huge manpower is actually an opportunity to success.
Threats: Ansell has risked its international market due to the products variety as all
products need different pricing and marketing strategies and hence cant be passed
through same margin for the possible costing that will incur.
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PEST analysis:
Cost-benefit analysis:
Extending the business foreign markets involves various studies and researches and
among them one very important analysis is analysis of the total costs and benefits in
the process.
Cost-benefit Analysis report for the financial year 2013/2014
Note 2014 US$m
2013
US$m
Revenue
Sales revenue
1590.2
1372.8
Expenses
Cost of goods sold including restricting and asset impairments
4(b)
(946.7)
(793.5)
Distribution
(74.9)
(61.9)
Selling general and administration including restructuring and asset impairments
4(b)
(485.1)
(346.9)
Total expenses excluding financing goods
(1506.7)
(1202.3)
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Net financing costs
(10.2)
Profit before income tax
Income tax expense
Profit for the period
Profit for the period is attributable to
Ansell limited shareholders
139.2
Non-controlling interests
Profit for the period
Earnings per share is based on profit attributable to Ansell Limited shareholders
cents 2013 US cents
Basic Earnings per share
106.5
Diluted Earnings per share
106.1
4(a)
6
(18.2)
(20.9)
44.4
(16.5)
143.3
41.8
2.6
44.4
4.1
143.3
2014 US
29
283
29
291
SMART objectives
Ansell accomplished significant strategic transformation in F14 through acquisition,
restructuring, and delivery against a broad range of initiatives which will create long
term benefit for shareholders. They have enhanced industry leading positions, with
exciting step change innovation in the works for F15 and will build their position as a
clear innovation leader in health and safety protection solutions.
15 april 2015 - Melbourne, Australia Ansell Limited (ASX: ANN), a global leader in protection solutions,
Today announces half-year results for the six month period ending 31 December 2014.
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The global economy remains mixed. We currently see improving conditions in the
US, offset by weaker demand in Europe and Brazil, economic turmoil in Russia and
uncertainty in the Middle East and Africa. These uneven conditions are expected to
continue in the second half of F15.
Organic growth momentum continues despite the more difficult conditions while
the FX exposures of the group are being managed with hedging aimed to
significantly offset FX headwinds to US$ based results in F15.
F15 EPS guidance is maintained at US118 to US126 (up 7%-15%) with full year
DTA/NOTI in the range of US2.5 to US3.5 compared to US5 in F14.
Ansell continues to expect F15 EBIT percentage growth against underlying F14
EBIT to be in the high 20s based on organic growth and the successful integration
of recent acquisitions.
Sexual Wellness GBU 13% of revenue and 10% of Segment EBIT
After a weak F14, the business has stabilised with sales up 0.7% and EBIT up 5.0% on
improving margins. Constant currency organic revenue growth was 2%. SKYN
continues to grow and results are starting to improve in the parts of the business that
underperformed in F14. A new President of the GBU commenced in November and
the outlook remains positive for this business going forward.
Acquisitions & Divestments
During the first half of F15 we completed the acquisition of Hands International a
privately owned Sri Lankan company. The acquisition enables Ansell to integrate
backwards and largely take in-house the Companys knitting operations for Industrial
multi-use gloves. This capability is particularly important as we strengthen our in
house yarn wrapping and other capabilities. Ansell disposed of its holding in Lakeland
Industries during the half for $10m with the resulting pre-tax $7.1m gain over the
original purchase price recorded in equity rather than the P&L.
As part of the restructuring announcement released on 30 June 2014 Ansell
announced it was looking to exit its military glove business. Ansell has now entered
into an agreement to sell Hawkeye, its military glove business, which will be finalized
in the coming months.
Cash Flow and Financing
Ansell continues to generate strong cash flow with the half producing a 45% increase
in free cash flow to $67m based on strong EBIT growth. Capex, working capital and
interest were higher but partially offset by lower tax. The balance sheet remains
strong and the company has excellent liquidity levels. Net Debt: Last twelve months
EBITDA continues to improve at 1.44x.The F14 financings have resulted in an average
go forward interest cost of 3.42% and EBITDA: Net Interest cover stands at 12.5 times.
Dividend
An interim dividend of US20 (US17 in F14) per share unfranked has been declared,
representing an increase of 17.6% over the prior period. For shareholders receiving
their dividends in A$ this represents an A$ dividend increase of approximately 40% at
the current A$ exchange rate of 0.7800. For non-resident shareholders, the dividend
will not attract withholding tax as it is sourced entirely from the Companys Conduit
Foreign Income Account. The record date will be 16 February 2015 and the payment
day 11 March 2015.
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Baseline Data
Ansell does not currently have formally
documented implementation of ECoPP or SPG in
procurement policies
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Contingences needed:
1. Organisational changes to integrate acquisitions and implement new GBU
structure.
2. Details on exit from US Military glove manufacture expected to be finalised in H1
F15.
3. Year End results will show new GBU structure, with pro-forma reconciliation to old
GBUs.
4. Shah Alam shutdown and production transfer expected to be complete by end F15.
5. Implementation of branding consolidation expected to take approximately 12
months First new
Ansell products to be launched under Micro flex brand in H1 F15.
6. Continued execution against revised ERP strategy expected through F15.
7. No impact from restructuring anticipated on F14 dividend which is expected to be
confirmed with yearend results.
8. Guidance for F15 to be provided at time of year-end results.
References:
Ansell Crop. 2000, Accessed on APRIL 20TH 2015 from,
http://www.ansell.com/en/About/Corporate/About.aspx
Ansell Crop. 2000, Accessed on APRIL 21ST 2015 from,
http://www.ansell.com/~/media/618DD6ABEB6A498AAEEFBE2F62F8608D.ash
x
Ansell Crop. 2000, Accessed on MAY 5TH 2015 from,
http://www.ansell.com/~/media/1E1A4146E29540C98A735F958CD8E171.ash
x
Ansell Crop. 2000, Accessed on MAY 9TH h 2015 from,
http://www.ansell.com/~/media/0CBF4880BA78420CB7C31EF6ED63CDA0.ash
x