70434053 fortune 500 companies

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21, 07, 2010

Arvin Meritor, Inc.

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Table of content

1. Introduction....3

2. Arwin Merits Employee Relations...3

3. Research in Arvin Merit.4

4. Safety in ArvinMeritor, Inc..4

5. Product Success.5

6. Business Strategy..5

7. Benefit Packages5

8. ArvinMeritors Mission and Vision Statement..6

9. Management Philosophy of ArvinMeritor.6

10. Conclusion8

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Introduction

Arvin Meritor, Inc. is one of the largest global supplier and producer of wide range of

transportation vehicles, integrated systems and modules. ArwinMeritor, Inc. also serves

commercial trucks, trailers and specialty original equipment manufacturers (OEMs) and some

other after markets, and also provides services to light vehicle manufacturers.

This report seeks to research Arwin Metors in respect of its employee relations, research,

safety, product and their service success, business strategy, benefit packages and Arwin

Metors mission and vision statements.

Arwin Merits Employee Relations

Arwin Merit, Inc values its employees as they that their workforce is extremely

crucial for the company to achieve its goals and objectives. Arwin Merit offers attractive

compensation packages in order to attract the best talent for its workforce. The company

continuously seeks to train its workforce to enhance their skills and productivity. At 30,

September 2009, Arvin Merit had approximately 13,200 full time employees. About 686 of

their employees in the United States and Canada were covered by collective bargain

agreements, while most of the companys facilities all over the world are unionized. The

company works closely with employee union to resolve employee conflicts and other related

matters. The employee union helps the company to maintain good employer-employee

relationships which helps in contributing to more efficient performance.

In Arvin Merit, all the staff is advised about companys regulations, legislation, and

bargaining agreements. Moreover, employees are also guided and advised about their

grievance and appeal rights and discrimination and whistleblower protections.

Research in Arvin Merit

Arvin Merit, Inc. spends significant resources on research expenditure in order to

maintain its position and gain competitive advantage over the rival companies. The research

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expenditure includes developing systems and technology to increase operational efficiencies,

as well as research on new breakthrough products for their customers. Arvin Merits conducts

research for developing solutions to meet the efficiency, reliability and durability needs of

their customers. The company recently launched product such as Meritor MXL and

ArvinMeritors new PlatinumShield technology as a result of an in-house research. Apart

from the research and development, ArvinMerit spends significant budget on market research

to find out the new opportunities emerging in markets all over the world.

Safety in ArvinMeritor, Inc.

ArvinMeritor, Inc takes safety of its employees and its customers very seriously.

ArvinMeritor develops and manufactures a broad range of products for use of transportation

and industrial sectors. The companys manufactured trucks, trailers buses and coaches are

loaded with sophisticated and adequate safety features to ensure the safety and security of

their customers and public in general. Moreover, the safety of companys employees is given

great attention by making sure that they are given a safe and secure working environment.

Employees are provided with the adequate safety equipments while at work and there are

regular programs and sessions organized by the company to create awareness among the

employees regarding safety.

Product Success

ArvinMeritor has a large product portfolio consisting of drive train systems and

components for original equipment manufacturers and aftermarket. The product portfolio is

growing as the company successfully develops new and more reliable solutions for

customers. Recently the company has successfully launched Meritor MXL extended lube

driveline which provides customers with reduced maintenance costs and longer service

intervals. ArvinMeritor also launched a new PlatinumShield technology, which offers

revolutionary corrosion resistance protection for original equipment and aftermarket truck

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and trailer brake shoes. Both of these products have gained tremendous popularity among the

customers of ArvinMeritor.

Business Strategy

ArvinMaritors current and future business strategy will most likely be to focus and

concentrate more on their commercial vehicle and industrial business as the management

believes that this shift in business strategy will allow the company to capitalize on more

attractive and targeted investments which will earn the company more higher margins.

Benefit Packages

ArvinMeritor, Inc offers market competitive compensation and benefit packages. A

typical benefit package for ArvinMeritors employees includes insurance, medical cover,

pension funds, house rent, retirement benefit funds and conveyance allowance.

ArvinMeritors Mission and Vision Statement

Vision

ArvinMeritors vision is to be a leading global provider of innovative customer

solutions that enhance mobility, safety and the environment. (ARVINMERITOR)

Mission

ArvinMeritor, Inc. says about their mission that In our corporate communities, we

seek to utilize our human and financial resources in partnership with local, private and public

agencies in order to achieve measurable improvements in the quality of life. We do this

through a focus on education, cultural programs, civic responsibility, and health and human

services. (ARVINMERITOR)

Management Philosophy of ArvinMeritor

An organizations management philosophy is defined as the set of common values

followed by its members. ArvinMeritors managements philosophy seems to stem from the

companys three core values which are as under:

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1. Pursuit of Excellence

ArvinMeritors management believes and is committed to innovation and ongoing

improvement of companys people, processes and practices.

2. Integrity

This urges that the company should do what it believes to be right and deliver on

their commitments to their shareholders, customers, communities and each other.

3. Teamwork and Respect for each other

In ArvinMeritor, everyone is encouraged to achieve their full potential while valuing

the contribution and personal respect of each individual, while working together as a team.

The above management philosophy of ArvinMeritor has proved to be very effective in

achieving the organizational objectives. However, there are few things which can help the

management to further improve the companys performance. For instance, ArvinMeritor can

use an inclusive management approach rather than a self centered management approach.

Inclusive management approach is extremely useful because it seeks to makes every one

collectively responsible for everyones decisions. An inclusive management approach guides

managers to adapt and live according to the values which regards people and their feelings

very highly and considers the purpose of an organization different from purely commercial

one. (ARVINMERITOR)

An inclusive management approach follows a set of values that will include respect

for each individual, the elevation of service and duty above self-interests. This approach

helps restraining an individual manager in his or her use of power and places a collective

concern for sustainable development. This management and leadership approach not just be

followed by an organizations management but in fact such an approach flows down to every

level of staff, organizations customers, its shareholders and suppliers too.

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ArvinMeritors financial performance seems to be deteriorating as is evident by the

fall in its stock price. There was a significant decline in the sales for the year ended 2009 than

the previous financial year of the company. In 2008, ArvinMeritor, made the sales of $6,390

million, where as in 2009, sales were reduced to $4,108 million. This means that the

companys sales showed a decrease of more than 35 in 2009. This is certainly an alarming

situation for ArvinMeritor. The company witnessed decline in sales in all of its product

segments including commercial truck sales, industrial sales, aftermarket and trailer sales,

light vehicle system and inter-segment sales. However, the commercial truck sales took a

most hit as these were down by 46% in 2009 than the previous year. The decline in sales

revenue though had a positive effect on the cost of sales which were reduced by 35% in 3009

than the previous year. However, despite the decrease in cost of sales, there was a net loss

incurred in 2009 of $(1,212) million as compared to the net loss of $(101) million in 2008.

ArvinMeritor is operating in a highly competitive environment which means that it has to

face the erosion in the margins. The company competes worldwide with some of the biggest

companies in the industry which unfortunately are someway or the other owned by or

associated with some of ArvinMeritors customers. That is why ArvinMeritor is facing an

increasing price pressures from the customers as they have a more bargaining power now

because of a highly competitive environment.

If I were to take the reigns of ArvinMeritor as the chief executive of the company, I

will seek to give it a new strategic and management direction to change the fate of the

company. I would like to completely turn around the company for bringing the financial

viability. First of all I would like to introduce an inclusive management approach

immediately into an organization which will help delegating the tasks to the lower staff which

will help everyone to work more effectively. Secondly, I would like to diversify companys

operations into less competitive industries. As we know that the company is struggling to

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maintain margins on its sales because of a bargaining power of customers and the competitive

nature of the industry, I would seek to acquire some of our competitors in order to decrease

the competition level. I will also like to allocate more resources to research and development

in order to produce new breakthrough products so that we can outperform our competitors

and create a new niche for the company.

Conclusion

ArvinMeritor is currently struggling as far as its financial performance is concerned

though it is largely due to the current economic downturn all over the world but it has to be

said that perhaps companys management failed to be proactive in current circumstances.

ArvinMeritors management should have acted proactively in the current economic downturn

and citing the competitive nature of the industry and increasing price pressures from the

customers. They should have looked to diversify companys operations into in other markets

which are yet to be explored by the company. But since it is one of the leading firms in the

industry and has a glorious history, so I believe that once we carve out a right strategy and

move the company in the right direction it is very much possible to bring back the financial

prosperity that it used to envy in the past.

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Works cited page

ArvinMeritor.2009 Annual Report. ArvinMeritor. 2009.21 July 2010.,

Arvin Meritor. Company Profile. n.d., 21 July 2010.,

ArvinMeritor.Stock quote.arvinmeritor.com, 22 July, 2010., 21 July, 2010.,

ArvinMeritor.Historical Highlights.ArvinMeritor. n.d., 21 July 2010.,

ArvinMeritor.Stock chart. ArvinMeritor.n.d., 21 July 2010.,

Crim. Management Philosophy.CRIM.n.d., 21 July 2010.,

ArvinMeritor. Dividend History. ArvinMeritor. n.d., 21 July 2010.,

ArvinMeritor. Earnings Estimates. ArvinMeritor. n.d.,21 July 2010.,

http://phx.corporate-ir.net/phoenix.zhtml?c=122961&p=irol-estimates

ArvinMeritor. Guidelines. ArvinMeritor. n.d.,21 July 2010.,

1000Ventures. Inclusive Leadership. 1000ventures.com Defined. n.d., 21 July 2010.,

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