SECURITAS AB Annual Report 2011
SECURITAS AB Annual Report 2011
SECURITAS AB Annual Report 2011
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6 Business of specialized security<br />
How we develop our business<br />
The decentralization of decision-making and responsibility is fundamental for Securitas, since<br />
the company’s daily operations are conducted in our branch offices. The Group’s customer<br />
offerings and relations improve when decisions are made in close proximity to customers and<br />
the employees who perform the services. Accordingly, business development occurs in every<br />
part of the organization on a continuous basis, since security companies work around the clock.<br />
To reach our financial targets, we must grow organically in line with the security services market,<br />
make acquisitions and improve our operating margin. Our efforts to develop the business on<br />
a daily basis have been divided into the following three steps: growing business, realizing<br />
opportunities and securing profitability.<br />
GrOWInG BuSInESS rEALIZInG OPPOrTunITIES SECurInG PrOFIT<strong>AB</strong>ILITY<br />
Growing our business is mainly achieved<br />
through the day-to-day activities of our local<br />
branch offices. As a security partner,<br />
establishing close, active and long-term<br />
relationships with our customers is crucial.<br />
Sales activities and targeting of desired<br />
customers are important for achieving new<br />
sales. In the long term, our strategy to<br />
specialize our security offering by developing<br />
value-added services will be the key to<br />
continuous and profitable growth.<br />
Success factors:<br />
• Presence where our customers operate<br />
– globally, nationally and locally<br />
• Being perceived as the knowledge leader<br />
in the security industry, with strong<br />
values and business ethical principles<br />
• Maintaining and developing our strong<br />
brand<br />
• Customer-oriented sales and marketing<br />
efforts<br />
• Competitive solutions based on qualified<br />
risk assessments<br />
• Offering specialized security solutions<br />
through segmentation of our business<br />
• Close and long-term customer relations<br />
through a proactive and flexible<br />
approach to our customers’ changing<br />
security needs<br />
Securitas <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong><br />
Realizing opportunities entails being active<br />
when changes occur in and around our<br />
customers’ businesses. The extra sales that<br />
these changes generate are highly valuable.<br />
Acquiring companies has always been an<br />
important part of our culture and business<br />
model. An acquisition represents an<br />
opportunity for us to expand into a new<br />
market in order to serve our customers when<br />
they grow in new regions. An acquisition can<br />
also provide an opportunity to strengthen<br />
our competence within a certain customer<br />
segment or complement our geographical<br />
coverage in a certain country.<br />
Success factors:<br />
• Targeted and event-driven marketing<br />
• Proactive approach to sudden<br />
customer needs<br />
• Large scale and resources<br />
• Identification and selection of suitable<br />
acquisition targets<br />
• Proper restructuring and integration<br />
of acquired companies<br />
• Realization of synergies, such as cost,<br />
geographical and marketing synergies<br />
• Ability to develop acquired companies<br />
by using the Securitas management<br />
model<br />
Securing profitability entails balancing price<br />
and costs, and being as adaptable as<br />
possible. Our strategy is also to avoid<br />
competing on price to win contracts. In the<br />
long term, we aim to develop more<br />
specialized value-added services and<br />
concepts, including specialized guarding,<br />
technology solutions and consulting and<br />
investigation services, thereby enabling<br />
increased price levels.<br />
Success factors:<br />
• Short-term price adjustments to avert<br />
cost level increases<br />
• Lower employee turnover<br />
• Efficient sales and marketing<br />
• Not competing on price but with service<br />
content and quality<br />
• Efficient invoicing and close control over<br />
days of sales outstanding<br />
• Active risk management to minimize<br />
losses and avoidable costs<br />
• Training and education of our employees<br />
in security competence<br />
• Exchange of best practice, innovations<br />
and know-how in the Group<br />
• Combination of guarding with<br />
technology solutions and consulting<br />
and investigation services in order<br />
to customize solutions to meet the<br />
customer’s needs