AMALAN PENGURUSAN

BMG1013
ASSIGNMENT 2

NAMA : TG NUR FARZANA BT TG YUNUS

NO ID : 1032017020010
NAMA PENSYARAH : CIK SITI NABIHAH BINTI AZHAR

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 CONTENT

NUMBERS ITEMS PAGES

1 1.0 Introduction
- History 3-4
- Vision and mission 5
- Organizational chart 6
- Product 7-8
2 2.0 Content
- SWOT analysis 9
- Growth strategy 10
- Retrenchment strategy 11
3 3.0 Conclusion 12-13

4 4.0 References 14-15

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1.0 INTRODUCTION

1.1 History
Johnson Matthey PLC has been involved in the processing and marketing of precious metals
since its founding in 1817. Although it is most widely known for its activities in platinum--it is a
world leader in the refining, marketing, and technological development of the metal--Johnson
Matthey has been increasingly positioning itself as a leader in advanced materials technology,
including catalysts and pollution control systems, electronic materials, specialty chemicals, and
pharmaceutical compounds. Johnson Matthey also manufactures decorative and specialized
materials for the ceramics, plastics, paint, ink, and construction industries. In 2001 the company
acquired British pharmaceutical firm Meconic, becoming the only company in the United
Kingdom legally authorized to sell medical heroin and cocaine. Johnson Matthey has an extensive
international presence, with operations in 34 countries. Johnson Matthey traces its origins to 1817,
when Percival Norton Johnson sets up business as a gold assayer in London.

In 1851 George Matthey joined the business and its name was changed to Johnson & Matthey.
The following year the firm was appointed Official Assayer & Refiner to the Bank of England.
The company had branches in the cities of Birmingham and Sheffield to supply the jewellery and
silverware and cutlery trade with raw materials and ancillary supplies, such as silver solder and
flux, which it manufactured. The founder of Johnson Matthey was Percival Johnson, who in 1817
set himself up at 79 Hatton Garden in Holborn, London, as an "Assayer and Practical
Mineralogist." As such, he valued gold by applying chemical and physical tests to determine the
exact quantity of gold in a bar. Johnson's business rapidly gained distinction when he began
offering to buy back the bars of gold that he assayed, thereby becoming the first London assayer
to issue a guarantee of quality. In the early 1830s a small gold refinery was built in the Hatton
Garden premises for the refining and assaying of gold bars that were then coming into London
from Brazil.

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 These were complex gold bars, containing impurities that were not easy to remove. Having
successfully extracted platinum group metals from the bars and proven his technical prowess,
Johnson established the firm at the forefront of the London bullion market. The firm took full
advantage of the gold rushes of California, from 1848, and of Australia, from 1851, while supplies
of silver arrived throughout the 1850s and 1860s in the form of demonetized silver coinage-
coinage that had gone out of circulation--from European states. A large-scale silver refinery was
built at adjacent premises in Hatton Garden. Johnson's interest in metallurgy had already brought
him into contact with platinum, which had been the subject of considerable scientific interest
throughout the early 19th century because of its strength and resistance to corrosive acids. He set
up a small-scale refinery for the metal at Hatton Garden, with limited supplies coming from
Colombia.

In 1838 George Matthey joined the company as an apprentice. Matthey's scientific talents,
coupled with a shrewd business sense, were the driving force behind the company's development
in the platinum industry during the second half of the 19th century. When the Great Exhibition
was first proposed, Matthey persuaded Johnson to exhibit a number of platinum articles, together
with specimens of other platinum group metals: palladium, iridium, and rhodium. The display was
a success, and Matthey became determined to make the company's preeminent in the platinum
business. He succeeded in gaining a more assured supply of the metal through direct arrangements
with owners of a mine in the Ural mountains in Russia, then a newly discovered source. In the
1867 International Exhibition in Paris, the company displayed a wide variety of platinum-
manufactured goods on a scale never seen before. The exhibit was awarded a gold medal "for
perfection and improvement in the working of platinum." Under Matthey's direction, platinum
refining and fabricating grew from about 15,000 ounces in 1860 to about 75,000 ounces a year in
the 1880s. The manufacturing of sulfuric acid boilers was the largest single use of platinum until
the early 1900s.

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1.2 Vision and mission
- Vision

Our vision is for world that’s cleaner and healthier; today and for futher generations.

- Mission

Our ambition is to be one of the best performing, most trusted and admired speciality chemicals
companies in the world.

- We are proud of our products and technologies, how our customers use them and the
positive impact they have on our planet.

- We are passionate about how science can enable global solutions for clean air,
improved health and make the most efficient use of our planet's natural resources.

- This is central to our purpose to apply inspiring science to enhance life.

- Our strategy is designed to achieve this.

- Our strategy is to deliver sustainable growth using our existing market leading
technologies and through developing the next generation of technologies to meet the
global challenges and opportunities from: Clean air, Efficient Natural Resources and
Health

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 1.3 ORGANIZATIONAL CHART

Executive
Directors
Chairman Robert MacLeod
Tim Stevenson Anna Manz
Board
John Walker
Membership
Nine directors (Chairman,
three Executive Directors and
five independent Non-
Executive Directors). Non-Executive
Senior Directors
Independent Odile Desforges
Director Alan Ferguson
Alan Ferguson Jane Griffiths
Colin Matthews
Chief Company Chris Mottershead
Executive Secretary
Robert Simon
MacLeod Farrant

Audit Committee Nomination Committee Remuneration Committee

Membership
Five independent Non-
Executive Directors.
Chaired by Alan Ferguson.
Membership
Five independent Non-
Executive Directors and
the group Chairman.
Chaired by Tim Stevenson.
Membership
Five independent Non-
Executive Directors and
the group Chairman.
Chaired by Colin Matthews.

Disclosure Committee Ethics Panel

Membership Membership
The Chief Executive, Chief The Company Secretary and
Financial Officer and the three executive heads of
Company Secretary. functions.
Chaired by Robert MacLeod. Chaired by Simon Farrant.

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1.4 PRODUCT

Mobile and Stationary Emissions Control

Our emission control catalysts and technologies reduce the impact of emissions from a variety of
sources, including:

 Gasoline and diesel powered cars and light vehicles.

 Heavy duty diesel vehicles such as trucks and buses.

 Non-road vehicles such as construction and agricultural equipment.

 Vehicles powered by gas (LPG, LNG).

 Stationary sources such as coal fired power stations, gas turbines, industrial plants, chemical
processes, locomotive, marine and waste-to-energy industries.

Diagnostics for Oil, Gas and Petrochemicals Industries

Tracerco's innovative technologies are used to measure, characterize and control process systems
and diagnose operational problems in all aspects of oil and gas production – from reservoir
management and refining to retail outlets for consumer fuel products.

Tracerco's extensive range of products and services include:

 Reservoir characterization.

 Subsea services for pipeline diagnostics including flow assurance and integrity data.

 Instrumentation from subsea to downstream and refinery.

 Process diagnostic services to improve process control and optimize asset performance.

 Radiation monitors, radiation protection advice and training.

 Analytical services.

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Chemical Process and Technology Licensing

Johnson Matthey Process Technologies develops and designs chemical processes and their
individual core technologies. It then licenses these to chemical producers to use when building a
new plant.
As part of the licensing package, we transfer the basic engineering know-how to the client's
engineers. We also provides ongoing process and technical support through the detailed
engineering, commissioning and post-acceptance of the plant to help clients reach optimum plant
performance.

Our license portfolio includes processes and technologies for the production of:

 Biodiesel

 Butanediol (BDO), tetrahydrofuran (THF) and gamma-butyrolactone (GBL)

 Choline chloride (ChCl)

 Dimethyl ether (DME)

 Dimethylformamide (DMF)

 Ethyl acetate

 Formaldehyde (the FORMOXTM process)

 Gas-to-liquids (GTL)

 Methanol

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2.0 CONTENT

2.1 SWOT Analysis

Strengths

- Strong research and development oriented product management.

- Great focus on Sustainability in its operational function.

- Acquired subsidiaries in Australia and New Zealand and JM acquired several business
including the printed circuit board operation increasing the portfolio.

- Diversified revenue in terms of end-market and geography.

Weaknesses

- Unfunded employee post-retirement benefits may put pressure on the group's liquidity
position.

- The civil penalty allegation against the company has had a blow to the reputation.

Opportunities

- Battery business of the company is boosted by the Axion business.

- Acquisition of Formox likely to strengthen JM's existing technologies for process

catalysts.

- Acquisitions improves the product portfolio of the company.

Threats

- The scare nature of the raw materials opens it to the risk of less availability of raw
material.

- Risks associated with conducting business outside the UK.

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2.2 GROWTH STRATEGY
Johnson Matthey will hold a capital markets day in which it will outline its strategy for growth
and value creation, at a group level and across its sectors.

- Expanding group ROIC to 20%

- Delivering mid to high single digit EPS CAGR

- And continuing a progressive dividend policy

In New Markets, JM is focused on battery material technology and has plans to make an initial
investment of up to £200 million, starting in 2018, to build capacity to drive growth in a market
which could be more than $30 billion sales when battery electric vehicle penetration increases to
around 10%. Guidance is confirmed for the year ending 31st March 2018 and at constant currency
with sales growth expected to be 6% with improving operating performance offset by non-cash
items. Guidance on foreign exchange is unchanged; it is expected to benefit operating profit by
£13 million with estimated restructuring benefits in this financial year unchanged at £10 million.
The group presentation will describe a further £50 million of savings, mainly from procurement,
over the three years beginning in financial year 2018/19. Most of the savings will be reinvested
with the balance for margin expansion. This is in addition to the £25 million of cost savings
announced in June 2017. Commenting on the capital markets day, Robert MacLeod, Chief
Executive, said: "Johnson Matthey has strong market leading businesses capable of sustained
growth and value creation over the short, medium and long term. "We will enhance our leadership
in the high margin, technology driven growth markets we operate in through focused investment
and efficiency throughout the group. We are world class chemists. We have the expertise to solve
our customers' complex and increasingly challenging problems by scaling up fundamental
chemistry to provide commercial solutions which drive our growth. "This will create value and a
cleaner and healthier world. Through the strategy we will describe at our capital markets day today,
we aim to be one of the best performing, most trusted and admired specialty chemical companies
in the world."

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 2.3 RETRENCHMENT STRATEGY
Johnson Matthey announces that it has agreed to divest its Gold and Silver Refining business
to Asahi Holdings, Inc. (Asahi), a collector, refiner and recycler of precious and rare metals from
waste materials, for £118 million (US $186 million) in cash, subject to typical post-closing
adjustments. The transaction is expected to be completed by the end of March 2015. The business
refines primary and secondary gold and silver materials. Johnson Matthey's Gold and Silver
Refining business is a refiner of primary and secondary gold and silver materials. It serves
customers globally from refineries in Salt Lake City, USA and Brampton, Canada.

The business also provides investment casting services from its St Catharines facility in Canada.
In total, the business employs approximately 340 people. In the financial year ended 31 st March
2014 the Gold and Silver Refining business had sales excluding the value of precious metals (sales)
of £44 million and for the six months ended 30th September 2014, its sales were £19 million. Its
return on sales is typically around 25%. Commenting on the transaction, Robert MacLeod, Chief
Executive of Johnson Matthey said: "The divestment of the Gold and Silver Refining business is
in line with our long term strategy to focus on areas where we can use our expertise in chemistry
and its applications to deliver high technology solutions or that provide a strategic service to the
wider Johnson Matthey group.

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3.0 CONCLUSION

In conclusion, Johnson Matthey is very concerned about health and safety. Their focus on
protecting people. In 2016/17 Johnson Matthey has continued to apply its unrivaled science skills,
bringing technical solutions to their customers and making a contribution towards a cleaner,
healthier world. The company has also reached an incredible millstone – 1st January 2017 marked
the 200th anniversary since its foundation. They have strengthened their business, implemented
their strategy and have delivered financial result in line with their expectations. They also have
improving safety with better reporting. Johnson Matthey also does various innovations to improve
their products and they always take seriously about the quality of their products. Johnson Matthey,
a global leader in emission control technologies, they ever received won The Queen’s Award for
Enterprise in Sustainable Development. This prestigious award recognises the company's
achievements in developing and manufacturing emission control catalysts using resources
efficiently, based on Lean principles and meeting challenging sustainability targets within its
operations.

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Financial

- Sales excluding precious metals of £ 3, 578 million.

- Profit before tax of £ 481.7 million.

- Earnings per share of 209.1 pence.

- Ordinary dividend per share of 75.0 pence.

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4.0 REFERENCES

Strategic management represents a case of academic where the meaning of consensus can be
expected to be fragile, even less. The relatively young faculty, has suddenly been re-recorded and
re-labeled from 'police business' - in 1979 (Schendel and Hofer, 1979).

Benjamin B. Tregoe (of Kepner-Tregoe fame), and John W. Zimmerman, a long-time associate
of Tregoe’s. They defined strategy as “the framework which guides those choices that determine
the nature and direction of an organization.”

According to Bhalla et al. (2009) strategic management was born as a hybrid discipline,
influenced by both sociology and economics. It may be considered an evolution of theories of
organizations. It only began receiving more attention, from both the academic and the business
worlds.

According to Ansoff and McDonnell (1990), strategic management constitutes a systematic

approach to the management of changes, comprising: positioning the organization through strategy
and planning, real time strategic response through the management of problems, and the systematic
management of resistance during strategy implementation.

Porth (2002) believes that strategic management is definable as a crossprocess of formulation,

implementation and evaluation of the decisions that enable organizations to define and achieve
their mission and ultimately to create value.

Bowman et al. (2002) strategic management focuses on issues concerning either the creation
and sustainability of competitive advantage or the search for such an advantage.

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References
Nickols, F. (2016). strategy, management strategy. management strategy, 2.

References
nag, R. (2007). strategic management journal. definition strategic management, 1.

References
mainardes, e. w. (2014). business administration and management. strategy and management strategy
concepts, 45, 48.

References
NA. (2017, Jun). Johnson Matthey. Retrieved from Johnson Matthey Web site:
http://www.matthey.com/investor/reports/annual-report-2017

References
kumar, A. (2017, Jun). MBASkool. Retrieved from Johnson Matthey SWOT Analysis:
http://www.mbaskool.com/brandguide/industrial-products-and-chemicals/7962-johnson-
matthey.html

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