...Assignment 3 HONEYWELL INTERNATIONAL INC. Zuhaib Ahmed Date: July 23, 2011 TABLE OF CONTENS Executive Summary 3 Introduction & Company Overview 4 Mandate 4 Vision Statement 4 Mission Statement 5 Quality Policy 5 Code of conduct 6 Stakeholder analysis Error! Bookmark not defined. External Analysis 11 Internal Analysis 14 Strategic Options 17 Recommendation 20 References 24 Executive Summary The paper focuses on the growth of an age old company namely Honeywell International Inc and explores strategic options for it. Honeywell is a reputed name in the aerospace and engineering industry. It has been constantly involved in providing technologies for the betterment of the customers. It provides products whose customers range from individual users to big corporations to government agencies. The company has been in business since the early 20th Century. Since then it has been engaged in providing innovative solutions in the form of its products and services. The current Honeywell International Inc is the outcome of the merger between AlliedSignal and Honeywell International in 1999. Since Honeywell always had a better brand value than its counterpart, Honeywell International was chosen as the desired brand name of the conglomerate even after the merger. This shows the high popularity of the company, though it was much smaller than AlliedSignal. The rest as is said is history. After that, there has been no looking back for the company and it...
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...Decoding Financial Statements HW1: General Electric 1. What is General Electric’s core business? General Electric Company is one of the largest and most diversified technology and financial services companies in the world. With products ranging from aircraft engines (accounting for 15% of the total revenue), power generation (accounting for 17% of the total revenue), oil and gas production equipment’s (accounting for 11% of the total revenue), and household appliances (accounting for 6% of the total revenue) to medical imaging (accounting for 12% of the total revenue), business and consumer financing (accounting for 29% of the total revenue), and industrial products (accounting for 10% of the total revenue), it serves customers in more than 100 countries. 2. What is General Electric’s strategy for future? The firm’s strategy for future is to divest consumer-facing assets because of the volatile and highly competitive nature of the consumer facing business, and acquire and boost commercial- facing assets. 3. How does General Electric intend to grow? Does if grow through acquisitions? Yes, the firm grows through acquisitions. Its much-awaited “Alstom” acquisition is set to close halfway through the campaign. The firm’s strategic growth model focuses on building global relationships with sponsors, vendors, Original Equipment Manufacturers (OEM’s), and global mid-market corps. Expanding product franchising is also another key aspect of their model. The...
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...of a Fortune 500 company facing the recent economic trends and adapting to changing markets. A major part of the United States’ business success is due to an economic and social climate. Global economics and global politics also have a major influence on businesses in the United States (Nickels, McHugh, & McHugh, 2010). The recession of 2008 and the ever changing trends have had a major impact both at home and abroad. The last two weeks I began looking at Honeywell International and will conclude this three part series with looking at how the company is weathering the recession as well as adapting changing markets and the tactics used to do so. Economic Trends In 2006, the mortgage crises gripped the nation as well as the economic downturn around the world (Isidore, 2012). The labor market was drastically reduced in 2008 by cutting 1.2 million jobs in the first 10 months. Honeywell International was affected like most companies and knew that it needed to weather the storm. However, Dave Cote, CEO of Honeywell...
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...Analysis of Honeywell’s Current Risk Management Program Honeywell is a multi-billion dollar international corporation, managing operations in 95 countries. It was the largest producer of control systems and products used to regulate heating and air conditioning in commercial buildings. It was also a leading supplier of commercial, military and space avionics. Presently, active hedging or insuring of risks occurred only for currency, interest rate, liquidity risk, credit risk, pension fund and traditionally insured risk. Other risks were managed operationally. The Treasury group was composed of the following: 1. Capital Markets Unit: managed risks associated with the firm’s capital structure, including liquidity risk 2. Cash Management Unit 3. Financial Risk Management Unit: managed currency risk, interest rate risk and credit risk 4. Insurance Risk Management Unit: responsible for general liability, product liability, ocean marine transit etc. Each policy had a specified deductible in the range of zero to $6 million. Honeywell would absorb losses up to the retention level before it received any insurance payment. The Currency unit handled Transaction risks which were risks due to specific exposure on entering into a contact with a future payoff. A basket of 20 currencies was used which represented 85% of Honeywell’s foreign profits. Corporate headquarters received long-range estimates of the foreign-currency exposure from each operating unit. Features of the...
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...Introduction Honeywell is a Multibillion dollar company, operating in 95 countries and is a pioneer in the field of control system and industrial appliances. With revenue over $7.3 Billion and income above $400 Million (December 1996), the company was exposed to several types of risk as it operated in a global territory. Previously, the company had a much compartmentalised approach to risk management, with individual departments managing individual risks pertaining to them. For instance, currency risks were hedged using futures contracts and under the supervision of the Financial Risk Management Unit while traditional (hazard) risks were insured by its treasury – Insurance Risk Management Unit. However, this individualistic approach did not serve the intent of the company well and hence in consultation with insurance specialists Marsh Inc., auditor Deloitte & Touché and insurance Underwriter AIG, a new cost efficient method for managing Honeywell’s risk was created. Thus, Integrated Risk Management Program was born that combined protection against Honeywell’s currency risk and other traditionally insurable risks. Decision to be made A decision has to be taken on the adoption of the new Enterprise Risk Management Program considering its cost implication and savings offered in perspective of adequate coverage of all risks. This decision could well lead on to establishing long term Risk policy for Honeywell as well as whether this integration approach would be suitable...
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...The History of Thermostats By Spring Quarter 2014 THE HISTORY OF THERMOSTATS Definition of a thermostat; A thermostat is a component of a control system which senses the temperature of an area so the area's temperature is maintained near a desired setpoint. The name is derived from the Greek words thermos or "hot" and statos or "a standing". Cornelius Drebble (1572-1634), a Dutch engraver and glassworker, invented the first thermostat in the early 1600’s, which was the first the automatic temperature control device. The thermostat was spawned from an elaborate toy he designed which operated on the basis of changes in the atmospheric pressure and temperature. The thermostat was created for a chicken and duck egg incubator and was the first mercury device that would hold the temperature constant. Around the same time frame, Drebble also invented the first self-regulating oven damper that was also mercury controlled. As the temperature went up, the damper would be closed by a primitive mercury switch. When the temperature cooled, the mercury would contract and open the damper adding oxygen to increase the fire. Before thermostats, the only way we could control the temperature of a home was to manually open or close the fireplace damper/ flu or open a window to regulate heat. Albert Butz, (1849-1905) was a Swiss born inventor, businessman and the father of the modern automated control industry, made a resemblance of today’s thermostat in 1885. It had an electric...
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...Acquisition of Honeywell Ishyta Hick Financial Decisions MGT 769 April 9, 2013 Honeywell Acquisition Jessica Gallinelli, managing director of Bancroft capital management is facing financial decision either to hold or sell her shares in Honeywell before Honeywell merge with GE. Gallinelli own 10 million shares in Honeywell and its short position of 10 million shares in GE. The key factors on Gallinelli either to sell or hold shares were based on the value of shares after the merger, also she wanted to know how the market will respond to Honeywell shares after decisions from both the antitrust regulatory of the European Commission (EC) and The U.S. department of justice. Gallinelli also planned to consider relevant personality and political issues. Both Mario Monti of European Commission and Charles James U.S assistant attorney general, Had personal interests in the outcome of the case. Because their job performances on political career depends on approve from the society how they perceive them as regulators. Allowing the merger will add the value to both Honeywell and GE shares and rejecting the merger will lead to loss for both companies’ shares. Valuation of Honeywell Common shares during merger (Year 2000) 801.4 million Price per share $ 36.72 Honeywell value = 801.4*36.72 = $ 29,427.41 billion Antitrust Concerns The market was careful waiting regulators responses toward the deal. In U.S the regulators consist of department of justice and U.S trade commission...
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...Koenig General Electric’s Proposed Acquisition of Honeywell General Electric’s Proposed Acquisition of Honeywell Investment Decisions Analysis of Investment Decisions Analysis of Table of Contents Executive Summary 2 Strategic Considerations 4 Political Complications 4 Personalities Involved 4 Valuation Methods 5 Early Closing of Positions 6 Situation Analysis 6 Investments Effects on Closing Positions on the 1st March 2001 7 Late Closing of Position: 8 Investments Effects on Closing Positions after the 1st July 2001 8 Arbitrage Spread 9 Conclusion 11 Executive Summary The proposed merger between General Electric (GE) and Honeywell has been praised by the Companies and up until 1st of March 2001 been called “the cleanest deal you’ll ever see” by Welch, CEO of GE. On the 1st of March the antitrust regulator, The European Commission (EC), announces that they will perform a full review over the potential merger. If GE were to acquire Honeywell, they could become a dominant player in the Aerospace industry. This fact is underlying reason for EC’s review as their main objectives are to prevent market dominance, as effects of un-proportional market shares, and by that stimulate efficient competitive markets. This announcement introduce large factors of risk that needs to be considered by Gallinelli, an arbitrageur currently holding a large short position in GE and a equivalent long position in Honeywell. Ganelli’s investment success is highly dependent...
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...financial difficulties. Honeywell is one of the biggest American conglomerate company which is very famous for its aerospace systems, automatic system solutions, turbocharger of automobile, special materials and other variety of commercial and consumer products. * On October 20th2015, Honeywell just purchased the three famous brand from Sigma-Aldrich, a famous American life science company which produce mainly chemical and biochemical products used in scientific research, drug development and diagnosis of disease. These three brands which bought from Sigma-Aldrich are Fluka ( chemicals and reagents used for biochemical and pharmaceutical research). Hydranal( titration reagents used by laboratories to measure moisture content in liquids and solids) and Chromasolv( high-purity solvents for chromatography, a technique used to separate and analyze complex mixtures). These three brand products are all chemical and biomedical reagents and bio-chemical laboratory related. Honeywell company, even it’s a highly product diversification, but the specialized field of this company are still mainly focused on industrialized products and technological solutions. Why Honeywell would have interest in life science area. * Even life science area is a new area to Honeywell, but Honeywell still can manage company’s internal resource to adapt into this new area because Honeywell already has its strong chemical expertise and research experience.(Background info: Honeywell has its own fine chemical...
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...Pillsbury v. Honeywell Inc. In the case of Pillsbury v. Honeywell Inc. it is clear that Pillsbury’s motivation for wanting access to Honeywell Inc.’s shareholder ledger and corporate recordings dealing with weapons manufacture was both personally and politically motivated. The facts of the case clearly state that Pillsbury was opposed to the Vietnam War and believed that America’s involvement in the war was wrong. The facts also state that Pillsbury bought several shares of Honeywell stock after finding out that a family trust that he was a beneficiary to owned several shares of Honeywell stock. Pillsbury bought several shares of Honeywell stock in his own name so that he could have a voice in Honeywell’s business affairs, and also to persuade the company to cease munitions productions. This is clear evidence that his motivations for wanting access to the records were both personally and politically motivated and not economically motivated as Lawyer O’Brien argued. The fact that Pillsbury bought the Honeywell stock after the discovery that his family trust owned several hundred shares of Honeywell Inc. stock is also evident of his personal and political motivations. If the family trust wouldn’t have owned stock in Honeywell Inc., Pillsbury wouldn’t have purchased several shares of Honeywell in his own name. He didn’t just randomly choose a company in which to purchase stock, and he didn’t purchase the stock for monetary gain or any other financial purpose. He intentionally...
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...Harvard Business School 9-200-036 Rev. July 12, 2000 Honeywell, Inc. and Integrated Risk Management I. Introduction In one week, on July 10, 1997, the Finance Committee members of Honeywell Inc.’s board of directors would vote on whether to proceed with a new risk management program. For the past two years, members of Honeywell’s Treasury Management Team, in conjunction with insurance specialists J&H Marsh & McLennan (now Marsh Inc.), auditor Deloitte & Touche, and later with insurance underwriter American International Group (AIG) had worked to create a new, more costefficient method for managing some of Honeywell’s risks. Their proposal, the first of its kind, provided combined protection against Honeywell’s currency risks along with other, more traditionally-insurable risks, in a multiyear, insurance-based, integrated risk management program. Honeywell had a long history of product innovation; this new proposal would extend its innovation to the financial arena. While a significant amount of time and effort had been invested in developing this new concept and in simulating program results, the absence of a precedent was a source of concern. The Finance Committee’s vote depended, in part, on whether the anticipated savings of the program would be realized, and whether the coverage provided by the new contract would be adequate. Because Honeywell viewed the proposed plan as a first step in a firm-wide integrated (sometimes referred to as enterprise) risk management program...
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...Honeywell, Inc. and Integrated Risk Management Case Analysis Submitted to: Prof. A. Kanagaraj By Vivek Gupta Section C, 944 Executive Summary: Honeywell was a multibillion-dollar, International Corporation employing 53000 people and managing operations in 95 countries. It was the largest producer of control systems and products used to regulate heating and air conditioning in commercial buildings and of systems in avionics systems. Carrying out business in 95 countries firm faced a number of risks. Honeywell’s risk management activities were dispersed throughout the firm as shown in the table. Other risks were managed operationally. [pic] The committee voting for this new program depends on whether the anticipated savings of the program would be realized, and whether the coverage provided by the new contract would be adequate. The proposed plan is a first step in a firm wide integrated risk management program that would extend to cover all of Honeywell’s financial and operational risks, the finance committee’s decision would establish Honeywell’s risk management strategy for some years to come. Honeywell’s existing strategy was consistent with its risk management objective of minimizing earnings volatility and its cost of risk. The team wondered about the applicability of the relatively new concept of enterprise risk management, which is grouping many risks together into a portfolio of risks, rather than managing each risk separately. The team thought...
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...marketplace by illustrating an example of a global corporation that enables it to achieve short and long term objectives. The study was undertaken through searching and analyzing the HR policies and practices of Honeywell and discusses the importance of HR in driving organizational success. The main research findings were Honeywell HR practices help in motivate, increase employees' performance, productivity, satisfaction, create a positive environment, adopt to change and ultimately lead to achieving organizational strategic and operational goals. The report findings are significant in that, they show the importance of Honeywell HR practices in guiding the organization's success and work like an index to show whether the organization is in the right direction or not towards achievement of its objectives. Contents ABSTRACT 2 Introduction 4 Honeywell overview 5 Honeywell HRM practices 6 Honeywell HR Functions 7 Management and HR function of Honeywell that support its objectives 7 Honeywell performance management 9 Rewards and Recognition Methods within Honeywell 9 Methods Honeywell uses to improve employee morale and job satisfaction 10 Methods for measuring employee morale and job satisfaction 11 Honeywell challenges 12 Honeywell Major Recommended Strategy 13 The value gained by implementing the strategy 14 Conclusion 15 Reverences 16 Introduction (Human resource is an essential part of successful of an...
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...have shrunk the global landscape and created an opportunity for MNCs to prosper and flourish for improvement of services and products for the consumer and created job security for the worker. The forms of integration relate to the aspect of the driving forces of globalization and the reduction of barriers from investing. Therefore, with improved communication, supply chains, and transportation effectiveness the MNCs can prosper and improve profit margins. Often start-up companies work diligently with their product performance to create an opportunity to be bought out by a larger company, which is all part of the various forms of integration. Nonetheless, there are critics of MNCs as was illustrated by the EU and the GE merger with Honeywell. Though the EU viewed the merger as a complete monopoly it did not stop GE from continuing to expand its market share in other aspects of its organization as the company focused on solar and wind energy (Anwar, 2005). Companies desire to grow and improve efficiencies along the way and understanding the various forms of integration assists in the comprehension of what is the best option for one’s own merger...
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...trong kinh doanh honeywell THôNG Điệp Từ TGĐĐH Của CHúNG Ta Các đồng nghiệp thân mến: Do honeywell liên tục phát triển nên chúng ta phải duy trì sự tập trung vào những kỳ vọng và cam kết của mình vào tính minh bạch và Mười hai hành vi của honeywell. Quy tắc ứng xử trong kinh doanh của chúng ta là lộ trình để giúp bạn điều hướng các môi trường hoạt động trong bốn doanh nghiệp của chúng ta, bao gồm một số lĩnh vực năng động nhất trong nền kinh tế toàn cầu. Chúng ta có vị thế cao trong những ngành tốt và chịu trách nhiệm với hành vi của chính mình với mức độ minh bạch cao nhất ở mọi khía cạnh hoạt động. Tính minh bạch giúp đảm bảo rằng chúng ta tiếp tục giữ vững được sự tín nhiệm của thương hiệu, duy trì uy tín cao và xây dựng một bảng thành tích về tăng trưởng và hiệu suất. Quy tắc và Mười hai hành vi của chúng ta áp dụng cho mọi người và giúp chúng ta tạo thành một thể thống nhất tại honeywell. Hãy bỏ thời gian để đọc hết Quy tắc của honeywell và hiểu tài liệu hướng dẫn này. Nếu bạn có bất kỳ câu hỏi nào về Quy tắc, hoặc cần giúp đỡ để hiểu cách thức tài liệu này được áp dụng vào công việc của mình, hãy tìm kiếm lời khuyên từ bất kỳ nguồn nào được liệt kê. Công ty chúng ta sẽ không bao giờ dung thứ cho hành vi trả đũa chống lại người nào đã đưa ra câu hỏi hoặc quan ngại một cách thiện chí nên bạn có thể yên tâm khi thực hiện việc này. Chúng ta cũng kỳ vọng rằng nếu bạn thấy bất kỳ người nào trong số các đồng nghiệp không tuân thủ Quy tắc của honeywell, thì hãy báo cáo những...
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