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DURR Environmental Case Analysis

Background
Durr Environmental Controls is a German conglomerate which

produces air emission control systems


The company is considering to introduce offerings in the US market

and has surveyed 31 companies across food and energy sector on the following parameters
A.

B.
C. D.

Efficiency Delivery Time Price Delivery Terms

Segmentation
Energy industry
Bigger more profitable, with

Food industry

lower growth
Technological advancement is

Smaller and less profitable but with higher growth


Technological advancement is an important factor Delivery time matters more

not an important factor


Sensitive on pricing and after

sales service is also important

K- Means Clustering
If Sig>0.05 accept null else reject null Null HypothesesThere is no significant relation between the variables Alt. HypothesesThere is significant relation

Data Analysis
Report
Cluster Number of Case
Mean N

SalesGr Sales$ Employ owth_( Top Engineer Profit% ROE _2004 ees 2003- Mgt ing 2004)
34.133 9 9.611 19.467 9 9 56.33 9 9.467 9 18.89 9 2.713 20.11 9 3.296

Fin
28.89 9 3.180

Purchas Growt Profit ing h


32.11 9 3.983 21.89 9 2.315 28.33 9 2.828

Tech Mkt Corp Leader Share CitEnv ship


14.22 9 2.819 15.78 9 2.489 6.00 9 3.000

Gov Reg
13.56 9 7.452

Std. 41.9710 11.8505 13.6689 67.050 12.0271 Deviati on Mean N 4.464 22 3.764 17.714 22 22 14.11 20.164 22 22

35.77 22 2.617

40.59 22 2.631

10.09 22 2.759

13.64 22 5.019

9.59 22 2.594

20.77 22 2.159

10.36 22 3.170

8.77 22 3.023

25.55 22 3.143

25.18 22 6.382

Std. 3.8761 6.2700 17.0450 15.130 24.7709 Deviati on

Mean N
Total

13.077 31

5.461 18.223 31 31

26.37 17.058 31 31

30.87 31
8.213

34.65 31
9.851

15.55 31
9.124

19.00 31
9.723

13.16 31
6.192

22.97 31
4.191

11.48 31
3.511

10.81 31
4.301

19.87 31
9.521

21.81 31
8.491

Std. 25.8396 8.4999 15.9327 41.697 22.1913 Deviati on

Data Analysis
Attributes Segment Cluster 1 Energy Cluster 2 Food

Number of Companies
Order of preference Key Decision makers

9 1.Price 2.Service 3. Timely Delivery


Purchasing Finance Growth Market Share Profit

22 1.Efficiency 2.Timely Delivery 3. Service


Top management Engineering Growth Corporate Cit Env Technical Leadership

Objectives

Recommendation
Segment Selected Cluster 2 Food
Product Selected Premier As the key decision makers are top management and engineering department,

the product will be technically sound (product USP) as well as profitable


Product Characteristics-

Specifications > 9% (an attribute favored by companies of Cluster 2) Delivery Time 12 months (quickest possible by the company) Price - $900,000 Other Terms Installed with service agreement ( will help in product differentiation)