Business at work - Report on Memec (Unique)

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Business at work

Report on Memec (Unique)

        Founded in 1974 Memec are a leading global semiconductor distributor. They specialize in demand creation and servicing the electronics industry. They are a large company with more than 2,400 employees, including 1,800 field application engineers (FAE’s), technical sales specialists, technical marketing professionals and account representatives.

        Even though they are not a publicly known company, they are very well industry known and sell to companies such as Sony, Motorola, Hitachi and Siemens, as well as buying from companies such as Ericsson, Intel, Sanyo, and NEC.

        Unique Memec is a branch of Memec, as well as Insight and Impact, but this report will look at Unique.

        Unique was created to further realize Memec’s technical focus of promoting a limited number of complementary semiconductor manufacturers. With their team of highly trained field application engineers Unique can specialize in providing their customers with the best they possibly can, ensuring they are pleased and continue to work with them.

        This success can be seen by the fact they have more than 140 contractual relationships, and through this they can offer over 20,000 specialized semiconductor devices.

Ownership        

        Unique memec is a private limited company that at the moment are looking into selling shares to the public and becoming a plc. A private limited company has over 20 owners and sells shares to employees and friends, not the general public. Private limited companies tend to be smaller then PLC’s but many actually have more share capital.

Advantages:

  1. The owners have limited liability – probably the most important advantage, means they are only liable for money they have put into the business, and no more
  1. Memec Unique have protection of the company name – the name they choose to use can only be used by them and no-one else.
  1. New shareholders and investors can be easily introduced
  1. There are better pension schemes and taxation
  1. Being a Ltd company not all account information has to be available to the public, it can be through choice, this can be a huge advantage to Unique
  1. Easy and inexpensive to set up
  1. As main shareholders are usually directors ownership and control are closely connected
  1. Easier to run than a PLC

Disadvantages:

  1. If owners don’t own shares they aren’t really involved in running of the business, the shareholders are
  1. The shares cannot be brought or sold with out agreement of the directors
  1. Shares are limited – can only be sold to family and friends
  1. Share capital cannot exceed £50,000
  1. Cheques may be classed as less reliable than those from a public limited company
  1. Cant benefit from economies of scale

Soon enough Unique Memec will be selling shares and turning into a Public Limited Company. They can sell shares on the stock exchange to the general public. Public limited companies include Boots, Sainsbury’s, Tesco etc.

Advantages:

  1. Unique will be able to raise capital from selling shares to the public
  1. They will be considered lower risk than private limited companies so may find it easier to obtain loans
  1. They will be able to get better credit off suppliers

Disadvantages:

  1. They will have to produce accounts which any rival business can see
  1. The cost of floating a business on the stock exchange is high
  1. Unique wont know who’s buying their shares

Strategic plan

        Memec’s strategic plan includes:

  1. vision 2005
  1. mission 2005
  1. core strategies
  1. core values
  1. they also have BHAG (Big Hairy Audacious Goal) of 777 by 2007

Vision 2005

“We are the global leader in design solutions and distribution of specialized semiconductors.”

Vision elements:

The people edge – we will be a great place to work where the development of our people gives us the competitive edge.

Information excellence – we will provide the information needed to measure, drive and grow our business.

Shareholder value – we will maximize shareholder value by delivering profitable growth and superior return on capital relative to our industry.

Valued partner – we are a team of highly motivated, focused professionals who are valued by out suppliers and customers. We will earn the right to serve out partners by providing flexible, responsive and cost effective means of meeting their needs.

Solution provider of choice – our design solutions are second to none!

Mission 2005

“We add value to suppliers and customers to bring technology products to the world. We integrate technical sales, design services and supply chain solutions for semiconductor manufacturers, OEM’s and EMS providers on a local, regional, and global basis. We maximize value to shareholders’ and partners while providing rewarding career opportunities for Memec employees.”

They have a BHAG of 777 by 2007 which means by then they want to be making $7 billion dollars with a 7% profit.

Core strategies

        Memec’s core strategies are the means and methods which they will use to move Memec from where it is today to their vision for 2005.

“IT systems – develop and implement IT tools to measure, drive and grow our business

Performance Excellence – develop our people and a performance culture as a great place to work to give us a competitive edge.

Process improvement – drive greater efficiencies, improved margins and best practices in all areas and functions of Memec.

Lead by design – enhance our demand creation and design services differentiation as our competitive advantage.

Customer Intimacy – enhance long-term customer relationships to become the provider of choice, globally.

Supplier portfolio – continuous development of product portfolio with high growth potential and characteristics attractive for demand creation”

Core values

        Their core values describe how they should act in order to accomplish the tasks that help them achieve their mission. Acting in accordance to these principles creates their desired culture and guides the behaviours of all Memec members as they serve their constituents.

“Accountability (be responsible for actions and results) – set and achieve clear, measurable objectives; do the right things and do things right; take responsibility for improving performance, knowledge and skills and lead by example.

Innovation (introduce creative new methods and ideas to adapt to changing business requirements) – create leading edge ideas and solutions; take the initiative to find new and better ways of doing things; be willing to act quickly and adapt to new challenges and introduce, manage and accept change.

Integrity (behave in accordance with the highest ethical and moral standards) – demonstrate honesty and truthfulness in all actions; uphold commitments and deliver on promises; act in accordance with company policies and be fair, credible and consistent.

Openness (be accessible, approachable, and willing to receive and share with others) – maintain an open door policy; make suggestions and be willing to challenge the status quo and seek out, listen to, and value the ideas, thoughts, and feelings of others.

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Passion (conduct our business with an intense desire to succeed and a drive for excellence) – be results-orientated and focus on excellence; take pride in all that you do and put your heart into your work and the company.

Teamwork (inspire people to work together as a team to reach common goals) – promote open and hones communication; involve other in decision-making process (get the data, debate the issue, make a decision, then commit to actively support the plan); value diversity of opinion, contribution and style; give and receive both positive and constructive feedback and respect each other and have ...

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