Weir Group plc: business model
Our business model is designed to generate long-term sustainable value. We focus on mission-critical and highly engineered equipment with intensive aftermarket care and comprehensive global support. This model creates positive outcomes for our customers but we also recognise our business can be impacted by a range of environmental and social issues. Every company depends on sources of value creation or ‘capitals’. By recognising these capitals and the impact the business has on them, we are better able to build a sustainable Group.

Discussion points
1. This extract is taken from the strategic report section within the annual report. The company produces pumps and safety valves for use in the mining, oil & gas, and power industries. What do we learn about the way the company runs its business?

2. Which of the ‘capitals’ could be measured in financial terms? Which require non-financial measures to evaluate their outcomes?

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Our capitals Financial: Access to financial resources. Manufactured: Efficient factories, service centres and other infrastruc- Lean operations that manufacture our products ef- ture. ficiently and allow the Group to flexibly respond to market conditions. Intellectual: Strong intellectual property regulations to protect our brands and technologies. Human: A healthy, motivated and skilled workforce. How our business activities transform our capitals Financial: Identifying attractive investment opportunities and providing careful stewardship of financial resources. Manufactured: Social: Shared values to ensure business is conducted to the highest ethical standards. Intellectual: Innovation and rigorous protection of intellectual property. Human: Prioritising safety, encouraging learning and develop- ment and regularly engaging with our people. Social: A code of conduct that is applied universally.