Gorenje Adopts New Strategic Plan To Boost Profitability
Dec 22, 2011
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Velenje Slovenia-based appliance maker Gorenje Group unveiled a new strategic plan that will put the group's focus on products and services for the home. The new plan came about as a result of the challenging global business environment and as a result of the company's new composition after recent acquisitions and divestitures.
The company did not announce any specific manufacturing restructuring initiatives.
The new strategic plan for 2012 to 2015 put more focus on the core activity of products and services for the home, intended to be 90% of total Gorenje operations in 2015.
Key performance goals by 2015:
• profit of 5% in 2015
• increasing sales to 1.5 billion euros/year by maintaining a compound annual growth rate of 3.8% (which would have the company outpacing European appliance market growth, which it estimates will be 2.1%)
• increase in free cash flow to at least 40 million euros
• decreased overall debt
Read the complete ApplianceMagazine.com article:
Gorenje's New Strategy.
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