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Computer peripherals industry

Building a Profitable Business: Tom Johnson's Strategy for Global Imaging Systems

Strategic Insights

— 1 min read

Tom Johnson, chairman and chief executive officer of Global Imaging Systems, has built the company into the fifth-largest U.S. office technology distributor, achieving $1 billion in sales and surpassing $1 billion in capital and market value. Johnson attributes the company's success to its focus on profits and productivity, rather than size and sales. Under his leadership, Global Imaging has acquired dealerships in 30 states, striving to improve them while preserving their independence. The company is on track to surpass $1 billion in sales this year, with a revenue of $233.5 million in the third quarter of 2004.

Key Takeaways:

  • Tom Johnson emphasizes the importance of focusing on profits and productivity rather than size and sales in building a successful business.
  • Global Imaging Systems has achieved significant growth, with $1 billion in sales and $1 billion in capital and market value, and is ranked as the fifth-largest U.S. office technology distributor.
  • The company has expanded its operations through strategic acquisitions, with a focus on acquiring successful companies that can be improved and maintained while preserving their independence.
  • Johnson notes that the company's decentralized management structure and emphasis on coaching and mentoring have contributed to its success.
  • Despite its growth, Global Imaging remains committed to its core values of profits and productivity, and is seen as a leader in the office technology industry.

Statistics:

  • Global Imaging Systems has a revenue of $233.5 million in the third quarter of 2004.
  • The company has achieved a net income of $14.9 million for the third quarter of 2004.
  • Earnings per share stood at 59 cents for the third quarter of 2004.
  • The company has 4,250 employees in 180 distributorships across 30 states and the District of Columbia.
  • Global Imaging has achieved an average revenue per employee (ARPE) of $225,000, higher than that of major competitors Xerox and Danka.

Sources:

  • "A Copying Original" by The Tampa Tribune, May 5, 2005.
  • Global Imaging Systems Inc., Copyright 2005, The Tampa Tribune.

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