How We Operate

Marmon Holdings, Inc. is one of the world’s most decentralized large industrial
organizations.

For nearly half a century, cofounders Jay and Robert Pritzker grew Marmon as a collection
of independent businesses under entrepreneurial managers. In place of a traditional,
centralized corporate headquarters, they established a small professional office to support
business unit management in areas including business strategy, financial services, legal
matters, human resources, communications, and more.

Robert Pritzker’s successors as Marmon CEO, first John Nichols and then Frank Ptak,
built on this long-established decentralized system by grouping Marmon businesses
into stand-alone sectors. Each Marmon business operates independently within a
sector structure that provides access to the experience and expertise of other Marmon
companies in related businesses and markets. The high degree of autonomy afforded to
Marmon businesses is also consistent with the operations of Berkshire Hathaway Inc.,
which acquired Marmon Holdings in 2008.

The Marmon business model employs the time-tested lessons of 80/20 statistical analysis
as part of a comprehensive, continuous thinking process. Key elements include:

Decentralized management of small, homogeneous, segmented businesses
Market mapping to focus on niche markets/products with profitable growth potential
Innovative products/services that provide practical solutions to meet customer needs
and create Marmon’s differentiation moat
Continuous improvement in operating efficiency and productivity
Selective acquisitions to strengthen strategic direction
Enhancement of Marmon’s value to shareholders

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