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His experience in Economics Laboratory's consumer division attracted the attention of his colleagues; after three years of employment he was chosen as the company's most valuable employee. Prior to becoming president and chief operating officer, Perkins held the position of executive vice-president and chief operating officer of the international division.
As a new top executive, Perkins was considered particularly useful in overseeing the international operations. Before assuming his new title he had developed a plan to consolidate the program into a highly efficient network. His plan was credited with helping to maintain the division's impressive growth rate. Aside from continuing to expand international operations, Perkins planned to increase research and development spending by 25 percent.
The last remaining promotion entitled to Perkins was the advancement to chairman and CEO. Although it was generally assumed that Perkins was being prepared for this final promotion, tradition at the company protected the incumbency of its older chairmen. For this reason, no one expected the year-old Lanners, then chairman and chief executive officer, to be relinquishing his duties in the near future.
Perkins's promotion, however, never materialized. In a surprise move Economics Laboratory recruited and hired its new top executive from outside the company. This abrupt shift in was said to have been management's response to a sharp decline in sales of pollution-control chemicals. In attempting to remedy the situation, operating units were restructured and a new leader was sought with a strong background in chemistry and experience in the industrial sector.
The recruitment process singled out Richard C. Ashley, former president of Allied Chemical and a group vice-president of the parent company. Ashley's degree in chemistry and his successful experience in the chemical field met the company's qualifications. Ashley's talents were expected to be particularly useful in addressing the ailing Apollo subsidiary.
The move to realign operating units represented the first in a series of steps devised to increase Apollo's business.
Soon after assuming his new position, however, Ashley was tragically killed in a car accident. Early in Pierson M. Grieve's experience in acquisitions and corporate planning, as well as his aggressive and articulate management style, were his most valuable assets. Just a week after assuming his new title, Grieve displayed his talent for decisive strategic planning; the Apollo subsidiary was to be shut down.
Grieve's next strategic move involved reorganizing the Magnus division, issuing ultimatums on sales performance for certain foreign markets not up to standards, and hiring new salespeople to market expanded product lines. Grieve's decision to close Apollo was just one of the many major decisions required early in his tenure. Only months later, a significant attempt by an industry competitor to replace the nation's top dishwashing detergents caused Economics Laboratory's product to slip from second to third place.
Lever Brothers, a large consumer product company, released its Sunlight brand detergent and captured a sizeable portion of the market. To prevent any further erosion of the company's market share, Grieve issued a plan to develop new products internally. A final cause for concern emerged with the aggressive maneuvers of the Molson Companies Ltd. In an attempt to capture a share of Economics Laboratory's U. Diversey successfully increased Molson's presence in the United States and in five years the company tripled its sales.
Despite these concerns, Grieve's strategy to regain certain markets appeared effective. Other consolidation measures involved the laying off of employees and the implementation of new packaging processes. With the acquisition of Lystads, an exterminating service, and ICE, a pest control operation, Economics Laboratory attempted to broaden its customer base in its institutional division.
Similarly, with the purchase of Foussard Associates, a laundry product and service operation, the company sought to augment growth in its institutional division. In , the company also changed its name to Ecolab Inc. Although its institutional and industrial customers had always comprised Ecolab's core markets, the consumer market had also figured into the product mix.
In , Grieve would take the company in two directions at the same time in regard to the consumer market. Industry analysts contended that Ecolab paid too much to acquire ChemLawn, which set off an unfortunate chain of events. In its initial couple of years under Ecolab, ChemLawn was unable to generate enough revenue to pay back the costs of the acquisition.
Ecolab management decided to increase revenues through price increases, hoping its focus on delivering a quality service would mitigate any negative effects. But ChemLawn's customers turned out to be much more price-sensitive than expected. Grieve later noted that part of this sensitivity stemmed from consumers considering lawncare a discretionary purchase. Moreover, he observed, an increase in environmental awareness in the late s hit the industry just after Ecolab acquired ChemLawn.
Overall, the ChemLawn acquisition was eventually regarded as an ill fit. Ecolab was able to recover from its ChemLawn disaster through a program that Grieve began in the late s during the initial stages of the ChemLawn debacle.
This strategy, eventually known as 'Circle the Customer--Circle the Globe,' brought the firm to its strong position of the early 21st century. The 'Circle the Globe' part of the program emphasized Ecolab's intention to become a worldwide leader in its core businesses. Initially the firm concentrated on the Asia-Pacific region, moving into the area in the late s--one of the first U.
Ecolab also significantly increased its presence in Latin America, Africa, and the Middle East, particularly in the early s. Growth was achieved through setting up operations in these regions, or via distribution and licensing agreements. Established in mid and called Henkel-Ecolab, the joint venture initially experienced some difficulties as a result of a poor European economy, but in a few short years became the leader in Europe in institutional and hospitality cleaning, sanitizing, and maintenance.
The joint venture operated throughout Europe, including Russia and other former republics of the Soviet Union. The agreement between Ecolab and Henkel creating this joint venture also transferred ownership of Henkel's Latin American and Asian cleaning and sanitizing operations to Ecolab. By , 22 percent of Ecolab's net sales originated outside the United States.
Ecolab's 'Circle the Customer' strategy was intended to maximize its investment in its core businesses by broadening the range of products and services it offered its customers. Kern founded the Chicago Chemical Co. Two years later, P. Ecolab , Inc. It was founded in as Economics Laboratory in St. By , it employed 38, workers in over countries, served customers in more than 1. Asked by: Suimei Goge business and finance metals industry Who started Ecolab?
Last Updated: 15th May, Cinthya Geweke Professional. How many locations does Ecolab? We are a trusted partner at more than one million customer locations ; working with more than 40 industries across more than countries to help promote safety, ensure operational efficiency, sustainability, product quality and guest satisfaction.
You can find us everywhere it matters. Alita Gavinhas Professional. Is Ecolab a Fortune company? The company provides a range of services to help industries like the food processing and energy industries optimize water and energy use and promote hygienic environments.
Company Info. CEO Douglas M. Baker Jr. Yongzhen Valiahmetov Professional. Who are Ecolabs competitors? Yazza Vickery Explainer. Is Ecolab a good company to work for? Ecolab used to be a great place to work. Rkiya Vicente Explainer.
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