Presentation on theme: "To make people more comfortable & more productive, to make the world"— Presentation transcript:
1 To make people more comfortable & more productive, to make the world a better place to live in…. forever..Willis Carrier
2 OUR TEAM BSJ present… Willy Hillenmeyer Alexandre Hollander Current/permanent address:20 rue de l’Orangerie Versailles FranceAlexandre HollanderCurrent/permanent address:3 rue du 29 juillet Paris FranceOksana MarchandCurrent/permanent address:2 av Pasteur Martin Luther King Le Pecq FranceLutz QuietmeyerCurrent/permanent address:8 rue Saint Famille Versailles Francepresent…
3 The world leader in heating, ventilating and air conditioning systems A UTC FAMILYThe world leader in heating, ventilating andair conditioning systemsUTC is a $ 28 billon global corporation, with over 2000 locations in more than 180 countries. It employs 155,000 people worldwide, of which are based outside the United States. It is ranked the 49th largest US corporation (2003), 141st in the world, and is a component of the Dow Jones industrial average.United Technologies Research consists of seven operating centers.UTC's business units are:Carrier – heating, ventilating and air conditioning (HVAC) equipment for commercial, industrial and residential sectors.Chubb – security and fire protection servicesHamilton Sundstrand - technologically advanced aerospace and industrial productsOtis - the world's largest manufacturer, installer, and service provider of elevators and escalators Pratt & Whitney - designs, manufactures and supports aircraft engines, gas turbines and space propulsion systems Sikorsky- designs and manufactures advanced helicoptersUTC Power - produces fuel cells for commercial, space and transportation applicationsCurrent revenues contribution: Otis, Carrier – 54%; others – 46%
4 HISTORY 1902: Willis H. Carrier invents modern air conditioning 1915: Willis Carrier and other six engineers foundedCarrier Engineering1922: Public debut of Carrier air conditioning at a theatrein Los AngelesIn 1934, as a result of federal opposition to the continued affiliation of airlines with aircraft equipment manufacturers, United Aircraft & Transport was broken up into three new corporations: United Aircraft, the Boeing Airplane Company and United Air Lines Transport. In 1975 United Aircraft Corporation changed its name to United Technologies Corporation "to connote the breadth of its products, markets, and activities."1952: Carrier introduces the first mass-produced unitfor central air-conditioning in homes1979: UTC* acquires Carrier
5 1993: Paris*, France – The UTC capital in Europe; CARRIER IN FRANCE1993: Paris*, France – The UTC capital in Europe;Headquarters for Europe, Middle East &AfricaThe capital of the UTC subsidiariesFuture synergiesUTC auditing teamUTC treasuryMarket expansionAfter a presence of thirty years in London, UK, in 1993 the Carrier HQ was moved to Paris, France. At that time, the headquarters of other UTC subsidiaries such as Otis, Pratt Whitney and Hamilton Sundstrand were already located in Paris. As a result, UTC centralized its subsidiaries’ headquarters in one European location, with potential future synergies in mind, consolidated services from auditors and the treasury.The revenues/losses of the subsidiaries are consolidated before taxation, and UTC, as a group, sustains much stronger negotiating powers with banks, than would one separate business unit.Last but not least, France offers special fiscal regime for the headquarters such as negotiated tax, which accounts approximately for 8 per cent of the costs.* In 2003, as part of a cost-cutting strategy, the EMEA headquarters were transferred from the expensive business area of Paris (La Défense) to the suburb of Paris, Rueil Malmaison.Before the official presence of Carrier in France, it had official independent distributors. In 1993, Carrier started acquiring these distributors under the umbrella of Carrier EMEA. Since then, the company has pursued its acquisition policies with Electrolux and Toshiba Air-conditioning, which increased its market share and provided new technologies .
6 KEY BENEFITS OF PARIS, ILE de FRANCE LocationEfficient transportation networksTime zoneCultural capitalTechnological epicenterFiscal PoliciesSpecial rules for HeadquartersSpecial regime for ExpatriatesR&D tax creditWith 108 legal entities in Europe, Middle East and Africa, Carrier couldn’t find a better place in Europe for its HQ: 142 airlines operate out of the Paris, Ile-de-France region, serving 510 destinations in 135 countries (the 3rd place in air traffic after New York and Chicago). In addition, France is famous for its fast and vast railroad network, which facilitates the frequent trips of Carrier employees in France (the commuting time to Montluel, where the factory is located, is 1 hour 15 minutes by TGV), and to neighboring countries ( 2 hours by TGV to Brussels).The location allows to connect three locations by video or teleconferences: when it’s 13H00 in Paris, it’s 06H00 in Farmington, US (the Carrier Worldwide Headquarters) and 19H00 in Singapore (the Carrier Headquarters for Asian Pacific Operations).The adaptation of the expatriates (who till recently made up 60 % of the headquarters’ employees) runs smoothly thanks to the charm of the city, its various activities, such as museums, restaurants and shops. The children are easily integrated into the international schools in Paris and its suburbs (at present there are 52 international schools in Ile-de France). For the spouses, there are numerous expatriate clubs and community circles.Being a technology-oriented company, Carrier is taking advantage of the concentration in international research centers around Paris, as well as that of the renowned graduate engineering and science universities.
7 KEY BENEFITS OF PARIS, ILE de France (cont.) Product qualityLow product costHigh productivityBrand imageMarket PotentialNew residential productsProduct adaptationOpportunities in Eastern EuropeFrance offers a special tax rule for headquarters: taxable income is calculated on the basis of costs – between 5 and 10% of operating expenses (8% for Carrier). This implies more predictable tax liabilities.The expatriate enjoy allowances for housing, reimbursement of additional taxes, social security contributions, paid trips home (if their families stayed in the home country). The Finance Amendment Bill 2003 adopted on November will render the expatriate regime even more attractive, thru deduction of French social security and retirement contributions, etc.For a company like Carrier with heavy R&D investments, a tax credit applied to income tax is a significant relief.The production process for Carrier in France includes the conception, the development and the final assembly of new products in Montluel, and all the intermediate steps are outsourced. This practice leads to a reduction of final costs.In an era when temporary workers substitute permanent workers in production, Carrier believes in retaining workers, training them to be multifunctional with the goal of increasing productivity.A leader in commercial systems, Carrier faces an increasing demand in residential products in Europe. The company has to rethink its strategy: whether to invest in R&D for products (whose market is already quite saturated) or to continue to develop the commercial systems.Several products were modified to satisfy demand in France. For instance, the heat pump was complemented with additional power since the original version was not sufficiently resistant for winter.With a fast growing economy in Eastern Europe, Carrier, and many of its major competitors, are competing for market shares in these countries. The last five years witnessed an increasing number of distributors and JVs.“A walk about Paris will provide lessons on history, in beauty,and in the point of life”.Thomas Jefferson
8 Human Resources Adaptation RecruitmentManager/ExecutivesSupporting StaffCompensation/BenefitsHigher than national average salariesProfit sharingSaving planEmployee scholar programLoansCommittee d’Entreprise (discount travel, holiday gifts)Headcount (2002) 777: manufacturing 414, Service 104, warehouse 9, SG&A 198)Managers, and more so, executives, are almost never recruited from “outside”, they are “brought in” Carrier, or in other UTC subsidiaries, such as OTIS or Pratt&Wittney. Present in 180 countries, there is a big pool of selection. An “outsider” goes thru a long process of selection (interviews with top management) and in the end goes 2-3 weeks in the US for training. Interestingly, the factory management is almost 100% French, and the turnover is very low.In hiring the supporting staff, Carrier relies on the interim agencies, such as Kelly Services, Manpower and others. Hiring and paying costs are lower than in the US and UK, however, the social and dismissing charges can be quite heavy due to strict French labor regulations.Carrier’s salaries are higher than “plafond national”, their revision takes place every year, and the progression is usually quite fast.Until 1996, the employees benefited from profit sharing, but then staff was reduced to 45 employees, and according to French law, profit sharing was no longer obligatory.The employees of Carrier can buy UTC shares three times a year in the amount of 2,000 euros, and deposit them on savings account at Crédit Lyonnais, and following marriage, birth of a second child, purchase of real estate or the eventual departure from the company, employees retrieve twice the accumulated amount.UTC is very proud of its Employee scholar program (it celebrated its 10,000 degree attainment). Unfortunately, Carrier France’s contribution to this attainment is quite low, since part-time education is not very common in the nation’s educational system (the employee continues to work while pursuing the degree to have full-tuition paid). The counterpart for the UTC program in Europe is the congé de formation via FONGECIF or FAFEIC (the government organizations benefiting from taxes d’apprentisage). None of the requests from the employees to leave on congé de formation has been ever denied.The young managers are going through the Leadership Advanced Program (LAP) which consists of 3 rotations of 6 months in different locations around the world. The top executives are selected for a prestigious 3-months management program at Darden, University of Virginia, USA.Management DevelopmentLeadership Advanced ProgramDarden Program
9 Human Resources Adaptation (cont.) Performance AppraisalMotivationBonusStock optionsInternational transfersCommunication PoliciesFor Performance Appraisal, Carrier France uses the forms and procedures established by UTC: at the beginning of the year, the subordinates (direct reports) complete the “Objective” form, which is reviewed and discussed with the hierarchy. At the end of the year, these objectives are matched with results.Based on achieved results, executives are awarded stock option plans, and others – annual bonuses. International transfers are also viewed as a sort of compensation, and consequently motivation.Every month the elected Délégué de Personnel assembles confidentially the questions from the employees and addresses them to the PDG and VP, Human Resources. The “compte-rendu” of this meeting is sent to each employee by .If issues remain unsolved, the employee(s) can address them confidentially thru the UTC Dialog program directly to Farmington, Carrier worldwide headquarters. company policy stipulates that issues should be clarified/resolved within the following two weeks.In addition, the company has a very well-run intranet system. The major events, policy modifications, etc, are transmitted in every corner of the world.Délégée de PersonnelDialogIntranet“Embracing the notion that a skilled and better-educated workforceis good for business and good for society, UTC actually pays its employeesto continue their education”ABC’s Good Morning America
10 Hydronic Technology in Montluel, FRANCE PRODUCTSRESIDENTIALLIGHT COMMERCIALCOMMERCIALWRACsPortablesHiwallsConsolesHeat pumpsAquasmartVRFSatellitesCassettesUnder-ceilingAquasnapChillersRooftopsLarge packagesAHUCarrier product lines include: air conditioners, heat pumps, furnaces, programmable thermostats, humidifiers, air cleaners, ventilators for homes (Carrier pioneered the application of chlorine-free, environmentally-sound refrigerants with the introduction of its industry leading, Puron-based residential products; air handling units, compressors, condensers, unitary packaged and split system air conditioners, packaged terminal air conditioners, central station air conditioners, hermetic absorption and centrifugal water chillers, open drive centrifugal chillers, hermetic screw chillers, reciprocating air and water cooled chillers, dehumidifiers and others for light commercial (restaurant, schools) and commercial (hospital, stores).Light commercial and commercial products represent 90% of total sales - Carrier activities in France are primarily B2B.All the models produced in Montluel (a suburb of Lyon), France, are based on so -called hydronic technology (water is used for cooling and heating) Two other technologies are frigorifique and air condensation. Such factory specialisation is a response to traditional ways of heating (plumbing system) in France.Hiwalls systems are rarely used in France due to numerous construction restrictions.A heat pump had to be supplemented by an additional heating power since the traditional pump is insufficient for French winters.90 % of salesHydronic Technology in Montluel, FRANCE
11 INSTALLERS/DISTRIBUTORS SIMPLICITY CLIENTSTHEIREXPECTATIONSINSTALLERS/DISTRIBUTORS SIMPLICITYCONSTRUCTORS PRICEARCHITECTS DESIGNAmong the major clients, architects are the primary targets of the company. They have the role of “prescribors”, and carry a lot of influence on final client decision. To establish loyalty, the company provides architects with advanced engineering computer programs that help their work.The major advantage of Carrier over its competitors (Trane, Diakin) is the location of its factory in France (Montluel, a suburb of Lyon). The proximity of the factory assures the efficient and productive collaboration with clients via product demonstration, testing, innovations, and respect of order delays.The strength of Carrier is the integrated offers, I.e., provides different components of the required system at the same time, with no need to contact several manufacturers.Some of the famous clients:Gare de LyonOpera BastilleFollowing the heat wave of summer An increased collaboration happened between installers and distributors as demand for air-conditioning at hospitals and retirement homes skyrocketed (the adaptation of several products is in progress, such as distant control, air purification systems with ultraviolet filter).INDIVIDUAL BUYERS COMFORT
12 COMPANY’S VALUES CUSTOMER SATISFACTION Carrier Factory Authorized Dealer DesignationGrowing PartnershipsENVIRONMENTAL AWARENESSYou need AIR, AIR needs CARRIERFrance is notorious for bad services. In 1990, as a result of the multiple complaints from customers, Carrier established the Factory Authorized Dealer designation. Only those dealers who meet the highest standards -- not only for their technical expertise, but also for their business practices and customer service quality – earn this distinction.The company is developing a partnership with dealers to help grow their professionalism, to support the pre-sale phase, sale to the end user and after-sale maintenance to ensure the highest consumer satisfaction and business success.Carrier’s mission is to maintain a responsible balance between the comfort today and the air tomorrow. It has identified 6 areas to set new environmental standards: energy efficiency, chlorine-free alternative refrigerants to preserve the planet from ozone depletion, quieter equipment, air quality, optimum air distribution, and packing power into smaller and higher units.As a result of our emphasis on employee safety, on-the-job injury rate has steadily improved. A conventional measure for employee safety is Lost Workday Incidence Rate. This rate represents the number of lost workday cases due to workplace injuries per 100 employees. In 2002, Carrier’s incidence of lost workday cases due to workplace injuries declined by 27 percent.CUSTOMER SATISFACTION“Successful businesses improvethe human condition…”UTC’s Commitments
13 ConfidentialityAs a publicly traded company, UTC’s subsidiaries are fully consolidated and include group wide sales revenue figures per country.As a result of Carriers policy, company specific financial results would not be disclosed to our group.
14 OUR SPECIAL THANKS TO Mr Jean-Pierre Levrey, VP Marketing and Product Development, Carrier EMEAMme Muriel Makharine, VP Legal AffairesMr Sergio Gonzalez, VP FinanceMme Sophie Loulergue, Human Resources DirectorMr Alain Lemat, Supply Chaine Directorand their assistants: Mme Martine Vanderlin,Mme Rosemary Coyle, et Mme Claudine HenryAddress: Tour Albert 1er, 65 avenue de Colmar, Rueil MalmaisonTel.: 33 (0)
15 REFERENCES 2002 UTC annual report, “The nature of United Technologies” 2002 year in review, “The nature of United Technologies”“Paris, Ile de France…..the Decision makers’ choice”, DATAR,Invest in France Network, 1997(intranet)(intranet)