Morgan Advanced Materials
Learn more about our three strategic levers
Key messages:
- We are taking transformational steps in operational effectiveness by leveraging our scale in supply chain and back office by and focusing on fixing a few large underperforming sites
- We will rely less on the underlying growth of our markets. Instead, we drive margin enhancing growth through a much stronger alignment with our key customers and channel partners
- We are shaping our right to win and optimising our position in the value chain to maximise our portfolio value.
Our three strategic levers
1. Transform operational effectiveness
This lever is focused on capitalising on the Group’s scale and digital transformation.
Focus areas
- Leverage procurement opportunities: drive efficiency and savings through category management
- Operational excellence: align with continuous improvement initiatives
- Digital transformation: implement a global ERP and standardised processes across our global sites
Opportunities:
- Leverage procurement opportunities
- Centralise procurement at Group level
- Deploy Group-led category management for indirect spend
- Operational excellence
- Implement structured, multi-year transformation plans for underperforming large sites (20% of Group revenue)
- Optimise production cycles, simplify asset base and product portfolio
- Digital transformation
- Standardise back-office processes for consistent service and cost optimisation
- Enhance business analytics for faster decision-making and agility
2. Drive stronger growth
This lever is focused on leveraging our right to win and constantly upgrading our position in the value chain.
Focus areas
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Develop multifunctional sub-systems that simplify sourcing and maintenance for customers
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Collaborate with customers to create enabling technologies for next-generation products
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Form alliances with local players to penetrate markets where direct access is limited
Opportunities:
- Expand our market share and addressable market
- Strengthen strategic relationships and partnerships to access new markets
- Co-develop technologies that enable breakthrough performance in customers’ end-products
- Value chain advancement
- Upgrade our position in the value chain through innovation and integration
- Establish structural partnerships to secure a ‘right to win’ in new market segments
- Programmatic growth
- Scale proven approaches, such as co-development and partnerships, across more customers and geographies
- Leverage proactive, systematic execution over opportunistic wins
3. Maximise portfolio value
This lever is focused on establishing the market attractiveness and the strength of our 'right to win'.
Focus areas
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Complete a systematic portfolio review in which we apply a structured approach to assess market attractiveness and 'right to win'
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Reallocate resources to markets with stronger growth opportunities and which represent a strategic fit for our business
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Maintain flexibility to respond to the changing global business landscape
Opportunities:
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Portfolio Optimisation
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Redeploy capacity from lower-return segments to higher-potential markets
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If necessary, exit businesses with low market attractiveness and limited 'right to win'
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Strategic market positioning
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Preserve capability for future market recovery in US and Europe
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