Values Descriptions

Strategy Strong track record in success rate of integrating rivals and

complimentary firms through merger and acquisitions. SW also
work closely with number of technology firms to streamline its
operations and build a reliable supply chain.

Market expansion through earned expertise has contributed to

growth in new revenue stream and diversify the economic cycle risk
in the markets they are operating.

Good return on capital expenditure enable Sherwin Williams to

invest in the R&D
Offer wide variety of products which serve large spectrum of
industries
Developed a perception of being a quality and trusted brand in the
mind of customers
Effective cost structure. Low cost structure helps to produce a
product at low cost and sell at low price.
Strategic partnerships with suppliers, dealers, retailers and
stakeholders allowing SW to leverage them in the future.
Structure Global presence in the North America, Europe, Latin America, Asia,
Australia with its own regional CFO and Vice president.
Each business division has its own president and corporate hierachy
mirroring the corporate headquarters in Cleveland.
Operates strategic business unit structure in the organisatio chart
style
Reporting lines are divided into manager of others, and manager of
manager
Systems Implement automated system in the areas of manufacturing and
business support areas. This bring consistency of quality to Sherwin
Williams product and enable efficiency to adjust with current
market demand and conditions.

Excellence distribution system. Over the years Sherwin Williams

has maintained a reliable distribution network that can outreach
majority of potential market.

Excellence IT systems that ensure efficiency in internal and external

operations.
Diversified customer service base
Global shared service which provide 24/7 regional time zone.
Shared Values "Cover the Earth" Mission
Initiatives to go green and reduce footprint
Shared Values

Driven by founder's vision, 'What is worth doing is worth doing

well"
Our people, Our Products, Our Pride
Integrity, People, Service, Quality, Performance, Innovation and
Growth
Style Diversified management practice
Promote continuous innovation among employee. Recognized
outstanding performance.
Top management recognized the hard work and dedication of the
talented men and women of Sherwin Williams
CEO set aggressive goals and shared the ideas across the business
divisions and challenge themselves to gown and build a global
business, always with an eye towards the future.

Staff Staffs are trained to adopt a culture not only to promote company's
products but also able to explain on how to maximise the benefits
out of the products.

Diversified work force with multi racial, cultural, geographical and

educational backgrounds that cultivate diverse ideas and
methodologies of executing things

Skills Sherwin Williams invests huge resource in training and

development of its employee to produce highly skilled workforce.
Employees are motivated and remain competitive
Factors Description
Political Interference of government in the Specialty Chemicals
industry
Trump government in the protectionist policies
Political stability in the host business country
Corruption in the regulation levels of basic material
sector

Taxation in terms of incentives and tax rates

Social Skill level of the population and its demographic

intensity

Education standard and level of Sherwin William

employees
High demand for paint in new residential construction
area

Migration - Negative impact if the talent in the country

has migrated out of the country, affect the ability to
manage the operation in the country

Environmental Environmental condition change the priorities of

product innovation. Products are designed based on
environmental standard rather than catering to
traditional values

Extreme weather has direct impact on the cost of

operations and SW needs to invest to the supply chain
model more flexible

Waste management in closed factory

Environmental agencies conducts a regular

examination increase the operational cost
Paris Climate Agreement, greater assessment on the
environmental standard
Factors Description
Economic Exchange rates and stability of currency

Labor costs and productivity in the host country

Inflation rate
Interest rate - Probable increase in demand for housing
due to low interest rate and ease in lending housing
loans

Pricing regulations for basic materials

Economic growth rate of the industry and the country.
Increase in government expenditure, increase in
disposable income and increase in investment sector
directly impact the sales

Technological Latest technological developments and innovations in

paint production of the Sherwin Williams competitors

Tech has cost structure impacts in the Special

Chemical industry
Tech innovation has a positive impact in the supply
chain model as it is providing access to information to
channel partners, leading to higher profit sharing

Green movement impact on waste management

Technology maturity in the paint production

Legal Environmental laws. Global operations need to adhere
the localized environmental law with different SOP.

Data protection laws. SW needs to consider if the

country has a holistic legal and technological
mechanism to protect against data breaches

Employment laws in wage legislation in terms of

minimum wage, overtime and mandatory employee
benefits

Industrial safety regulations

Product labelling regulations and other in country
requirements in specialty chemicals
BARGAINING POWER OF BUYERS

INDUSTRY RIVALRY

THREAT OF NEW ENTRANTS

Access to distribution networks is easy for

new entrants which they can set up
distribution channels easily and come to
business

Limited retail outlets selling a specific

products make it easier for the new product
to be on the shelves

Product differentiation is strong within the

industry, firms are selling less standardised
products which can be a weakening force for
the new entrant

Capital requirements within the industry are

high, making it difficult for new entrants to
setup a business

Strict government policies, require a

comprehensive licensing and legal
requierements to be fullfilled making it more
difficult for the new entrant.
 BARGAINING POWER OF SUPPLIERS

INDUSTRY RIVALRY

THREAT OF SUBSTITUTES