EMERSON

VIMOKRAPISPATRES

TABLE OF CONTENTS

PAGE

Title Page
Table of Contents
Executive Summary........................................................................... 1
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.

Mission and Values...

Objectives..
Key Result Areas..
Performance Indicators
Strategies
Programs
Activities.
Tasks..
Resources.

2
3
5
6
12
14
16
19
21

Reference..................................................................................... 24

Executive Summary
Emerson is a diversified global manufacturing company that brings
technology and engineering together to provide innovative solutions to customers
in the industrial, commercial and consumer markets through its Process
Management, Industrial Automation, Network Power, Climate Technologies, and
Commercial & Residential Solutions businesses. Founded in 1890, its Revenue
$24.5 billion for the fiscal 2014 under leadership of David N. Farr, Chairman and
Chief Executive Officer and Approximately 115,000 worldwide (average during
fiscal 2014). It has five Business segments Emerson Process Management ,
Emerson Industrial Automation,

Emerson Climate Technologies, Emerson

Commercial & Residential Solutions and Emerson Network Power. Headquarters

in St. Louis, Missouri, United States of America. Emerson does business in more
than 150 countries. International destination sales, including U.S. exports,
totalled $14.2 billion in fiscal 2014, representing 58 percent of the company's
sales. Emerson has 220 manufacturing locations worldwide, of which
approximately 150 are located outside the United States. Emerson employees
were awarded more than 1,900 patents worldwide in 2014. Emerson ranked as
the No. 120 on 2015 FORTUNE 500, annual list of Americas largest
corporations, based on revenue. No. 484 on 2015 FORTUNE 500 Global, annual
list of the worlds largest corporations, based on revenue. 2015 FORTUNE
World's Most Admired Companies. Emerson was ranked No. 5 in the electronics
industry category in the magazine's annual survey on corporate reputations. And
2014 Thomson Reuters Top 100 Global Innovator, annual list of the world's most
innovative corporations, based on patent-related metrics.
This paper is a discussion of Emerson Vision, Mission, Objectives, Key
Result Areas, Performance Indicators, Strategies, Programs, Activities, Tasks,
and Resources (VIMOKRAPISPATRES). It is confidential for us employees to
disclose the specific activities, market strategies and operations thus the
information and discussions are based on the official Emerson internet website.

I.

Mission and Values

Mission and Values

Emersons corporate mission and values are expressed in the companys
brand promise to our shareholders, customers, and employees alike:
Emerson is where technology and engineering come together to create
solutions for the benefit of our customers, driven without compromise for a world
in action.
Our mission as a company is to create long-term value for our
shareholders, customers, and employees through a passionate commitment to
excellence and a disciplined management process, which together drive
sustained competitive advantage in a dynamic global market. We achieve
success by developing industry-leading technology, investing globally, and
delivering results for customers.
Our values are deeply rooted within the company and reflect our internally
disciplined character. Emerson is committed to being a well-managed, resultsoriented, engineering-driven organization whose people have a passion for
progress and a commitment to excellence. We constantly strive to be better
partners with our customers and to be more connected, more forward-looking,
and more customer-focused than our competitors.
Emersons disciplined management process enables the company to
focus on creating shareholder value while anticipating changing economic and
industry environments. This management process emphasizes current and longterm planning, disciplined control, and clear priorities. We leverage the combined
resources and know-how of our businesses for the benefit of our customers
around the world.

We know that everything we accomplish rests on the skills, integrity,

commitment, and dedication of our employees. We offer challenging, fair, and
rewarding employment for our employees and set high expectations for
performance. We seek to create an environment where people can make a
difference.
Everything we do reflects a commitment to the highest standards of
personal and corporate ethics. We reinforce these standards through ongoing
training programs that reach all of our employees around the world. Emersons
commitment to its shareholders includes a disciplined and transparent approach
to corporate and business governance.
II.

Objectives

Emerson Brand Promise

Emerson is where technology and engineering come together to create
solutions for the benefit of our customers, driven without compromise for a world
in action.

Deliver Innovative Solutions with a Positive Business Impact Process

Systems and Solutions Objectives

CONNECTING TO CUSTOMERS - Become our Customers Trusted Advisor

Help our customer solve their toughest challenges
Invest to win in global markets with high potential
Provide relevant industry expertise and solutions
Deliver a customer experience that delights

PERFECT EXECUTION - Drive World-Class Project Execution

Lead the industry in driving improved project certainty
Leverage new technologies and tools to transform the way we execute
projects
Instil safety as an inherent value with all our employees
Strive to lead the industry in lead-times and on-time delivery

TECHNOLOGY INNOVATION - Be Recognized for Technology Leadership

Develop differentiated products that anticipate our customers needs
Expand DeltaVSIS business, both integrated and stand-alone
Deepen our Reliability Solutions offerings across software, online
condition monitoring and portable product lines
Enhance product quality processes and performance

LIFECYCLE SERVICES
Improve our Customers Return on their Automation Investment
Broaden our Reliability and Lifecycle Services portfolio to improve
customer loyalty and profitability

 Provide globally consistent service through investments in training,

certification, and infrastructure
Deliver responsive on-site and remote services, supported by a global
network of subject matter experts

Our Collaborative Culture - Foster an Achievement Driven Culture with a

Compelling Vision, Clarity of Responsibilities, and a Collaborative Work
Environment
Hire the best talent, develop employees, and share best practices to drive
innovation and secure future business
Establish leaders at every level through tools, training and management
development programs

III.

Key Result Areas

IV.

Performance Indicators
Emerson is known for its disciplined management process that helps us

meet our financial objectives and return value to shareholders. In fact, Emerson
has delivered nearly 60 consecutive years of increased dividends to our
shareholders a record matched by only a handful of companies around the
world. Strong results in uncertain economic times are no accident. This is
testimony to our relentless focus on execution on our four strategic imperatives:
globalizing our assets, pursuing technology leadership, strengthening our
business platforms, and driving business efficiency. By driving operational
improvement we meet our customers needs, achieve superior financial
performance, and generate cash to reinvest in innovation, technology and
productive assets.

Process Management - 2014

Description: Technologies and services that provide measurement, control
and diagnostic capabilities for automated industrial processes producing endproducts

such

as

fuels,

foods,

medicines

Segment Sales: $9.2 billion, 36% of Emerson total sales.

Number of Employees: 40,000.

and

power.

Industrial Automation- 2014

Description: Technologies and integrated solutions that deliver machine
reliability, energy efficiency and improved throughput to manufacturing
processes. Segment Sales: $5 billion, 20% of Emerson total sales.
Number of Employees: 25,000

Network Power- 2014

Description: Technologies and services for power conditioning, reliability and
environmental control technologies and services for telecommunications
systems, data centers and data networks and other critical applications.
Segment Sales: $5.1 billion, 20% of Emerson total sales.
Number of Employees: 24,000

Climate Technologies - 2014

Description: Technologies and services that enable homeowners and businesses
to better manage their heating, air conditioning and refrigeration systems for
improved

control

and

lower

Segment Sales: $4.1 billion, 16% of Emerson total sales.

Number of Employees: 17,000

energy

costs.

Commercial & Residential Solutions - 2014

Description: Tools for professionals and homeowners, residential and commercial
storage

organization

systems,

and

Segment Sales: $1.9 billion, 8% of Emerson total sales.

Number of Employees: 7,000

appliance

solutions.

V.

Strategies

Global Operations
With a global workforce of approximately 115,000 employees and 220
manufacturing

facilities,

Emerson

is

positioned

with

the

infrastructure,

knowledge, and experience to deliver its technology and product solutions to

customers around the world.
Each Emerson business is in an industry-leading position, making
Emerson the one company that customers in any country can go to for all their
infrastructure solutions, including: process automation, plant optimization,
telecommunications infrastructure, reliable network power, climate control, and
more.
Additionally, established companies looking to develop overseas industry
benefit from Emerson's global presence and technology expertise.
Emerson in Asia-Pacific
Emerson's Asia-Pacific operations employ more than 39,000 people and
we have 50 manufacturing locations in this fast-growing region. Asia-Pacific
customers accounted for $5.5 billion in Emerson sales, or 22 percent, in fiscal
2014.
We serve our Asia-based customers from our regional corporate
headquarters in Hong Kong and from satellite offices in China, India, Japan,
South Korea, Indonesia, Malaysia, Taiwan, and Singapore. We also serve
customers in Australia and New Zealand.
Emerson Process Management, Emerson Network Power, and Emerson
Climate Technologies have significant R&D, manufacturing, and marketing
activities in China, India, Malaysia, Thailand, Vietnam, and the Philippines.
Emerson in Europe
Emerson has had a long-time R&D, manufacturing and sales presence in
Western Europe, and a growing presence in Eastern Europe and Russia. We
employ approximately 25,000 people and have 60 manufacturing locations

across this region. Customers in this region accounted for $4.8 billion in sales, or
20 percent, in fiscal 2014. We serve our Europe-based customers from incountry offices maintained by our business units.
Our company has been an active investor in Eastern Europe and
Russia where we have established several advanced engineering design
facilities

and

number

of

manufacturing

sites.

Emerson

also

has

established strong relationships with major customers in Poland, Hungary,

Turkey, Azerbaijan, Kazakhstan, and other countries in this region.
Emerson in Latin America
In Latin America, Emerson has approximately 18,000 employees and 30
manufacturing locations across the region. Latin America accounted for
$1.5 billion, or 6 percent, of Emerson sales in fiscal 2014, and the region is
poised for continuing growth. Emerson maintains corporate offices in Argentina,
Brazil, Colombia, Mexico, and Venezuela.
Emerson in Middle East and Africa
Emerson has had a steadily growing presence in the Middle East and
Africa for nearly two decades. Emerson has approximately 1,000 employees and
five manufacturing locations in this region. Customers in the Middle East and
Africa accounted for $1.5 billion or 6 percent of Emerson sales in fiscal 2014.
Emerson Process Management has major customers in the oil and gas industry
throughout the Middle East and Africa, where our plant automation and Smart
Wireless technologies are in great demand. Emerson Climate Technologies and
Emerson Network Power have also established strong and growing sales in the
Middle East and Africa to serve the residential, commercial, and industrial needs
of emerging economies of this region.

Emerson in North America

Emerson has approximately 32,000 employees and manufacturing
facilities at 75 locations across North America (U.S. and Canada). North America
is Emersons largest market and all of our businesses have a major presence in
the region. Customers in the U.S. and Canada accounted for $11.2 billion of
company sales, or 46 percent, in fiscal 2014. Emerson maintains its global
corporate headquarters in St. Louis, Missouri, where the company was founded
in 1890. Our corporate headquarters in Canada is in Markham, Ontario.
VI.

Programs

Our Approach to Innovation

Solving our customers problems is our passion. As a technology leader,
we recognize that the key to customer satisfaction and our long-term success is
to anticipate customer needs and develop new technologies and innovative
solutions that provide our customers with a distinct competitive advantage.
Emerson has established a reputation around the world for technology innovation
and industry leadership. Our game-changing technologies have served to
transform whole industries.
Here are just a few examples:

PlantWeb digital architecture and Smart Wireless products and

solutions; from Emerson Process Management have enabled our
customers in process-manufacturing industries around the world to
achieve more efficient, productive, and safer plant operations.

Copeland Scroll compressor technology from Emerson Climate

Technologies has become the workhorse that provides the cooling power
for energy efficient air conditioning and refrigeration systems around the
world.

From its innovative Trellis platform for data center infrastructure

management, to the industry's leading array of power conditioning, power
reliability and environmental control solutions, Emerson Network Power is
enabling the growth of the information-based economy by ensuring
business-critical continuity and high availability of electronic equipment
used in telecommunications, data centers, and other businesses.

We are committed to driving continued technological progress, setting new

industry standards, maintaining a strong commitment to research and
development, and increasing the pace of our new product development and
speed to market. Our approach includes extensive research on both emerging
technology trends and key global market trends and customer challenges that
enable us to prioritize our R&D efforts.
At Emerson, we are particularly proud of the array of technology solutions and
products that our engineers have developed to help industrial users, commercial
businesses, and consumers use energy more responsibly. Today we are hard at
work developing the next generation of technologies and services that can
continue to improve energy efficiency, lessen impact on the environment, and
provide energy resources for our world.
We take pride in developing forward-thinking technologies that help our
customers stay ahead of the curve. Our product development teams follow a
systematic approach to developing new products listening to and collaborating
with our customers, generating ideas for new products and services, developing
the right designs and engineering approach, establishing the manufacturing
infrastructure, and providing marketing, sales, and customer service support for
the product launch and market success.
Our company and management teams take serious our role as industry
leaders. Our employees are active in and play leadership roles in dozens of
industry trade associations and professional societies to help us better

understand and anticipate our customers concerns and to share our expertise.
We work with governments around the world to fashion and support policies that
promote progress and improve quality of life.
New Technology Investment
Emerson is creating a culture and infrastructure that helps the company
take its innovation momentum to the next level. The company invested
approximately $805 million in engineering and development during fiscal 2014.
Additionally, Emersons commitment to new technology development and
commercialization is underscored by the 1,900-plus new patents earned in 2014
by Emerson employees globally.
Business Segments
Emerson markets its products and services and reports its financial results
in five business segments (corporate brand platforms):
1. Emerson Process Management
2. Emerson Industrial Automation
3. Emerson Network Power
4. Emerson Climate Technologies
5. Emerson Commercial & Residential Solutions

VII.

Activities
Emerson brings technology and engineering together to provide innovative

solutions for customers in industrial, commercial and residential markets around

the world.

Process Management

Industrial Automation

Network Power

Climate Technologies

Commercial & Residential Solutions

Technology Center Network

The world of business has no borders and neither does Emersons
network of professionals who drive our product innovation. We have technology
and design facilities around the world that enable Emerson to work closely with
customers in the regions of the world where they are located and to speed our
innovation process with around-the-clock collaboration capability. Our more than
7,000 talented engineers are working to develop solutions that address and
anticipate

our

customers

challenges

wherever

they

may

be.

Emersons networks of technology and design centers are located in more than
20 countries around the world. The corporate network includes two centers of
excellence the Emerson Software Center of Excellence and the Emerson
Advanced Design Center that focus on software development and R&D across
the Emerson family of companies. These centers, based in the United States,
coordinate with our network of product engineering and software design
professionals around the world to share best practices and to bring the best
minds together within our company and from outside resources to meet the
needs of customers. Emerson has also established corporate-sponsored
engineering and design centers in Pune and Chandighar, India and in ClujNapoca, Romania, to strengthen the companys global R&D capabilities. In
addition, many of Emersons business units have established their own R&D
facilities in many of the countries in which they operate to meet their specialized
needs.

Advanced Design
Behind Emersons progress in industrial technologies is an expansive
network of research and development professionals that identify hardware issues
before they become problems. Since its establishment in 1988, the Emerson
Advanced Design Center (ADC) has focused on developing and maintaining a
go-to network of external resources to assist in new product development. The
centers main objective is to gather a world-class group of experts who can
analyze a project before it gets off the ground and assess technical risk.
Headquartered in Columbus, Ohio (USA) within the Battelle Memorial
Institute campus, whose labs operate the largest R&D consultancy in the United
States, the Emerson Advanced Design Center supports all of Emersons global
businesses.
The Emerson Advanced Design Centers worldwide virtual network of
experts includes engineers at various institutes and university research centers
throughout North America, Europe, and Asia. With immediate global access to
the best design professionals in the world, the Emerson Advanced Design Center
is able to custom build the best research and development team for each project
depending on the technologies and materials being used and the specific issues
that the project demands.
Software Engineering
Software engineering is a vital part of Emersons new product initiatives.
The Emerson Software Center of Excellence, established in 1998, facilitates the
consistent application of best practices in all dimensions of the companys
software engineering, including people, process, and technology.
The Center taps an elite group of experts who serve the companys
operating divisions around the world. Their mission is to ensure that the leadingedge software that Emerson develops for its products and services is best-in-

class. They are also responsible for engaging and maintaining a virtual network
of external resources to support cost-effective engineering. They look for
opportunities to apply software developed for one business to other customer
needs across the company.
Headquartered amid the renowned software and computer engineering
faculty at Carnegie Mellon University in Pittsburgh, Pennsylvania (USA), the
Emerson Software Center of Excellence taps the talents of experts there and
elsewhere in the world to serve on-site at any of the companys facilities.
The Centers work is wide-ranging, from code quality review for
sophisticated software embedded in such products as Emersons innovative
RIDGID SeeSnake video inspection equipment to troubleshooting computer
networking problems to identifying and assembling internal and external
software experts for new product technology initiatives. The Centers experts also
consult on functional and technical requirements for projects, conduct software
code reviews, augment staff when necessary, and negotiate agreements with
third parties.
VIII.

Tasks
Emerson has a large pool of engineers and innovators, a lot of technical

people that innovate solutions and solve customer problems. We are not allowed
to disclose our individual task from the engineering and process works thus Im
citing a work from the field indicated to one of our services brochures, heres
what we have been doing in valve maintenance, some of the activities of
engineers in the field.
From seals to bearings, springs to diaphragms, everything in Fisher
rotary control valves and actuators is designed to avoid unscheduled
maintenance. In fact, we put every Fisher rotary control valve and actuator to the
test long before you do. You can forget leakage, forget failure, and forget poor
control. Instead you will realize improved product quality, safety, and availability.

Steam test skid. A fully instrumented skid was installed at a power plant to
test Fisher rotary valves in steam service. The skid isolates steam supply and
records leakage while the valve assembly is at elevated temperature.
Cycle life. We cycle test rotary valve bearings and seals at elevated
temperatures in a hot air system to evaluate their performance and reliability.
Field trials. Prototypes of Fisher rotary valves undergo field trials in actual
plants. This prototype valve is installed in a vacuum system application in a pulp
and paper mill.
Fatigue failure. This square-end shaft was tested in the drivetrain fatigue
apparatus described on the opposite page. The test was stopped shortly after the
fatigue crack started. By determining how long our drivetrain components last
under certain loading conditions, we can establish load limits to provide long life
and high reliability.
Design optimization. By optimizing the size of the hole for the valve diskto-shaft connection, the fatigue life of the entire joint is improved. A larger hole
makes the shaft weaker but allows the pin to be stronger. A smaller hole through
the shaft does the opposite. Through testing we have proven that the joint as a
whole is significantly stronger.
Drivetrain testing. Our test apparatus determines the fatigue cycle life of
drivetrain components. It monitors parts and stops cycling after a crack starts.
Spline- and square-end shafts of various sizes and materials are tested in
addition to disk-to-shaft connections.
Cold box testing. To enable Fisher rotary actuators to withstand the
demanding requirements of various applications, we use an environmental
chamber to test the springs, rod-end bearing, and diaphragms.

Optimal control. With its characterized disk, the Fisher Control-Disk

valve controls within the optimal loop gain of 0.5 to 2.0 from 15 to 70 percent
valve travel.
Understanding customers requirements is a top priority for us. In fact,
millions of dollars are invested annually to test Fisher rotary valve designs using
up-to-date equipment and procedures. Customers can forget about unscheduled
rotary valve maintenance when you use Fisher rotary valves and actuators from
Emerson.
IX.

Resources

Our Team
Emerson is comprised of forward-thinking technology experts capable of
creating integrated solutions that best address the needs of our customers. We
are able to anticipate global trends and continue to win business as a result of
our outstanding management and planning process.
Career Development
Not only does Emerson excel at serving our customers, but also at serving
our employees. We recognize and reward the talents and commitments of our
employees and provide new members of our team the opportunity to learn from
the best managers and engineers in their respective industries.
Emerson also places a strong focus on career development; we offer employees
a variety of development paths that enable them to quickly contribute to company
goals.
Ethics & Community
Emerson takes pride in the people who make up our team. From our
senior management officers to our line production workers, we seek to conduct

ourselves in a way that demonstrates uncompromising ethical standards with

customers, suppliers, governments, the public, and each other.
We also practice corporate social responsibility. Emerson places a major
emphasis on corporate philanthropy, employee volunteerism, and environmental
stewardship.
Together, we're changing the world.
Imagine being surrounded by a team of intelligent, driven and passionate
innovators all working toward the same goalto create groundbreaking solutions
that leave our world in a better place than we found it.
If that sounds like the career for you, watch these videos to get an even better
idea of what working at Emerson is like.
Commitment to Diversity
Emerson works hard to create a global workplace that supports and
promotes diversity, embraces inclusion, and cultivates respect for the individual.
We believe that bringing together bright, enthusiastic, and talented people from
various backgrounds promotes the birth of new ideas and an exciting energy
level.
As a result, we have an active program to recruit and hire women and
minorities to our management ranks. We seek to create an employer of choice
environment in terms of promotions, transfers, compensation, benefits, career
mentoring, company-sponsored training, tuition assistance, and social and
recreational programs for our employees.
Emerson's equal opportunity employment policy assures that there will be
no discrimination or harassment against an employee or applicant on the
grounds of race, color, religion, sex, sexual orientation, gender identity, age,

disability, national origin, veteran status or any other factor considered unlawful
by applicable laws and regulation.

FINANCIAL RECORD

YEAR

2012

2013

Sales

$24.4 Billion $24.7 Billion

2014
$24.5 Billion

Net Earnings Common Stockholders $2.0 Billion

$2.0 Billion

$2.1 Billion

Net Earnings Per Share

$2.67

$2.76

$3.03

Dividends Per Share

$1.60

$1.64

$1.72

Return on Total Capital

15.8%

16.4%

17.5%

Return on Common Stockholders'

Equity

19.0%

19.2%

20.7%

Reference
Electronic Source

About Emerson (n.d.) Retrieved October 15, 2015 from www.emerson.com/enus/Investors/Pages/company profile.aspx#sthash.czzgSvBA.dpuf