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DURR Environmental CaseAnalysis

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Background

Durr Environmental Controls is a German conglomerate whichproduces 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 thefollowing parameters

A. Efficiency

B. Delivery Time

C. PriceD. Delivery Terms

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Segmentation

Energy industry

Bigger more profitable, withlower growth

Technological advancement isnot an important factor

Sensitive on pricing and aftersales service is also important

Food industry

Smaller and less profitablebut with higher growth

Technological advancementis an important factor

Delivery time matters more

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K- Means Clustering

If Sig>0.05 acceptnull else reject nullNull Hypotheses-

There is nosignificant relation

between thevariablesAlt. Hypotheses-

There issignificant relation

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Data Analysis

Report

Cluster

Number of

Case

Sales$

_2004Profit% ROE

Employ

ees

SalesGr

owth_(

2003-

2004)

Top

Mgt

Engineer

ingFin

Purchas

ing

Growt

hProfit

Mkt

Share

Tech

Leader

ship

Corp

CitEnv

Gov

Reg

1

Mean 34.133 9.611 19.467 56.33 9.467 18.89 20.11 28.89 32.11 21.89 28.33 14.22 15.78 6.00 13.56

N 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9

Std.

Deviati

on

41.9710 11.8505 13.6689 67.050 12.0271 2.713 3.296 3.180 3.983 2.315 2.828 2.819 2.489 3.000 7.452

2

Mean 4.464 3.764 17.714 14.11 20.164 35.77 40.59 10.09 13.64 9.59 20.77 10.36 8.77 25.55 25.18

N 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22

Std.

Deviation

3.8761 6.2700 17.0450 15.130 24.7709 2.617 2.631 2.759 5.019 2.594 2.159 3.170 3.023 3.143 6.382

Total

Mean 13.077 5.461 18.223 26.37 17.058 30.87 34.65 15.55 19.00 13.16 22.97 11.48 10.81 19.87 21.81

N 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31

Std.

Deviati

on

25.8396 8.4999 15.9327 41.697 22.1913 8.213 9.851 9.124 9.723 6.192 4.191 3.511 4.301 9.521 8.491

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Data Analysis

Attributes Cluster 1 Cluster 2

Segment Energy Food

Number of Companies 9 22

Order of preference

1.Price

2.Service3. Timely Delivery

1.Efficiency

2.Timely Delivery3. Service

Key Decision makers PurchasingFinance

Top managementEngineering

ObjectivesGrowth

Market ShareProfit

GrowthCorporate Cit Env

Technical Leadership

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